The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-10-20
MONEY TO HELP IN
GIGANTIC RETREAT
FROM Big SURPLUS
Tribute Will Be Exacted During
Two-Year Period Ending
in November, 1895
PROCEEDS GO TO FARMERS
Compensatory levies Are Plan
ned on Many Items Not
Directly Affected

Washington. Oct. 20.-tP)-Ameri-
can consumers will be called on to
shoulder a tax load of more than one
billion dollars to finance the admin
istration's program for a gigantic re-
treat in farm production.
Policies of farm adjustment offic-
:als. hinge upon collecting such q
sum during = period Of slightly more
than two years, counting from last
July 9, when processing tax No. was
levied on wheat, until November 4,
1885, when the hog and corn process
ing levies are scheduled to termln-
ate.
Most OF the proceeds, which may be
greatly augmented by compensatory
taxes on competing products. are
scheduled to find their way into the
pocketbooks of American farmers, re-
putedly thin and thinning for the last
decade.
The principal consideration will be
that farmers forego planting as much
as in the past. The first to see the
color of the governments benefit
checks-cotton farmers-got them for
blowing up from Is to SO per cent OF
their crop.
A substantial portion Of the con-
sumers' contribution will 60 to remov-
ing SURPRISES, particularly tn Joint
purchases by the farm ard relief adj
ininistrations Of surplus crops for the
needy.
Many Levies In Sight
But while processing taxes cannot
be levied on other products. many are
subject to processing taxes In cases
where they compete with basic COM
modities.
More than two score products al
ready face these compensatory levies
but none have been ordered into ef-
feet and prospective income from
them remains undetermined.
The pork tax hearing will be held
October 30. and compensatory levies
on cattle, sheep, fish, oils, poultry and
eggs will be considered. There Is q
strong prospect Of levy on cattle
with a program under consideration
calling for its expenditure to cut down
the surplus Of beef animals in an eff
fort to bolster low cattle prices. There
Is les slikelihood for tar on sheep.
Sugar Is listed as a competing pro-
duct of corn whose rivalry for the
favor of housewives will be consider
ed November 2. Wallace already has
suggested the possibility Aof a levy OF
one-tenth of a cent pound on cane
and bette sugar to finance the pay
inent of bonuses to domestic produc-
ers. He estimates this levy would
produce $4,000 900.
Compensatory levies on jute, silk
rayon. linen and some types Of paper
competing with cotton and oleo-
margarine. competing with butter
are others already considered at hear
ings
Announce Conversion Factors
A definite idea of the cost Of pork
products to consumers as result Of
the processing taxes on hogs wai
given with establishment Of CONVEX
sion factors by Secretary Wallace.
The highest will be for boneless
ham, cooked, dried and canned. Fol
this product the conversion factor !.
$40 per cent Of the initial tex or il
cents per pound.
This means t..lt on products late,
manufactured from hogs after thu
processing tax reaches e . hundred.
weight. the increased cost Of bone.
less ham to the consumer will be 81
cents per pound.
For most of the pork products tn,
conversion factor ranges from 100 X
$50 per cent Of the tax.
The factor for fresh pork loins-
pork chops to the consumers I'll
per cent. This means that on III.
floor stoc...s this tax will amount Il
l.8 cents per pound. and II the tai
Is passed on directly to the consusae'
after the processing tav reaches :.
pc. hundredweight, the additiona
cost for pork chops will be $4.32 cent
p> pound.
The conversion factor for cuts from
which bacon Is produced Is l9l Pc
cent, or slightly less than four cent
to the consumer when the fun ia,
rates becomes effective on swine. !.