The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-02-08
Farmer Must Carry On II Indus
try Il to Survive, Explains
Congressman
~ RRR. A6ARyTN JONES'

Someone had suggested that there
was not enough enthusiasm In con-
nection with the bill. Did you ever
see any enthusiasm In . sick room7
Did you ever watch . blood tranSfu-
sion? There Is no enthusiasm ia
connection with such an administra-
ton, but It Is sometimes necessary.
This bill Is an effort to administer
. blood tranfusion into the almost
nfeless body Of American agriculture,
Agriculture must live II the nation 4
to live. The farmer must carry on
Il industry Is to survive.
After . great deal Of consideration
the House Committee on Agriculture
has worked out what Is commonly
known - the allotment plan. It Il
solely Is q temporary emery.
ency measure until such time q q
permanent program can be worked
out to include q readjustment Of
trade barriers, the making Ct our unit
Of money . true measure Of values,
the refinancing Of farm mortgages, q
shifting Of taxes that have borne too
heavily on the farm ranch, and . very
real reduction Of expenses in govern
ment-national, state and local.
AIMS OF BILL
Tho aim Of this emergency bin Il
to establish as . minimum farm price
for the commodities named, price In
the same ratio to the present general
price level as the pre-waS
farm price related to the general price
level in pre-war times. In other words
It would give farm prices today the
same purchasing power measured In
terms Of other commoditieO that they
had during the period Of 1909 to 1914.
II this ratio Of fair exchange value
existed today, the price Of wheat
would be 50 cents q bushel ana the
price Of cotton would be II cents .
Mound, instead Of about IS cents for
wheat and 5 cents for cotton. Under
the terms Of the measure, these ratio
prices would commence when the new
season starts. The regular
market would not be interfered with
In any way: the farmer would merely
get q certificate for an additional
sum representing the differences BE-
tween the market price and the par
ity price.
But the period between now and
harvest would be designated as the
initial period" and the ratio OF faif
exchange value would be placed 1T u
cents per bushel for wheat and nine
cents per pound for cotton. These
prices would apply only to those CON-
modities now held by the producer
himself.
MUST CUT PRODUCTION
The farmer would be paid with On
allotment certificate" the differ
ence between the normal market price
and the "fair exchange price" 70
qualify for this he would have to show
proof Of q reduction In his acreage
or production the given commo-
dity by 20 per cent. Such . provision
would help eliminate the huge sur
pluses that are depressing farm prices
The farmers certificate allowances
would cover only that part Of the
production going into domestic con-
sumption. such amounts to be fixed
by the department Of agriculture.
Here Is q simple example OF how
the farm allotment plan would work
during the initial period, assuming
that the domestic consumption o.
wheat Is fixed ct 20 per cent Of the
total crop:
A farmer hauls 1000 bushels Of
wheat to market. The prevailing
market price Is IS cents q bushel. He
sells his wheat for that price. He u
given q government certificate for the
difference between that and IS cents
Tor 20 cents . busheO on 100 bushels.
which amounts to $200. Thus. be
would receive $2e0 in addition to the
price paid by the buyer for his 1000
bushels. This certificate would be re-
deemed by the government tor cash.
half In 80 days and half In six months.
The plan would work similarly -
to cotton and other commodities stat
ed In the bin.
After the initial period-when the
new harvest season starts-the fun
ratio prices would apply. These ra-
tics would be calculated BY the Secre-
tary Of agriculture, on l90o-l4 farm
commodity prices correlated with In
dustrial prices over the same period
to arrive ct . parity Of buying pow.
er.
CONSUMER PAYS LITTLE MORE
Where would the money come
from?
A processing fee would b levied BY
the government on the manufacturer
Of these farm commodities and THU
Zee would be equal to the difference
between the prevailing farm price and
the pre- war ratio price. The tee
would be paid by millers. meat pack
ers, manufacturers Of cotton goods
etc. As soon Is the pre-war price
levels are reached, the bin would ai-
tomatically cease to operate. Can
anyone deny the fairness Of such Z
measure?
would the professor pass this tax
on to the consumer, thus increasing
the price the consumer must pay? \.
As . matter Of fact, there should