Evening star., 1933-06-16

is pre-war parity between the things
the farmer sells and the things the
farmer buys. In pre-war years, 1909
1914, wheat brought around SO or 80
cents pushed on the farm; cotton
better than IL cents a pound, and hogs
better than cents a pound. But at
the same time the prices of the things
farm machinery and the like-were on
a comparable level. In general these
items bought by the farmer were lit
tie lower than they are right now.
But the prices the farmer got for his
wheat and cotton and hogs were. in
those pre-war days, more than twice
as high as they are now. 1t Is that
gap we want to bridge. This bill pro-
vides the bridge.
Powers Given Secretary.
ITO reach that goal. goal not to
be attained, perhaps, in one brief year
the bill gives the Secretary OF Agricul-
ture these powers.
I'D To obtain, by contract with
farmers, a voluntary reduction in acre
age or production of certain crops. in
return for which reduction producers
or benefit payments.
"(2) To enter into marketing agree
ments with producers, marketing agen-
cies and professors Of farm products.
The intent Of this provision Is that
there may be organized commodity
councils which will include both grow
ers and professors Of crop. These
councils will help determine which plan
of acreage reduction, what scale OF
taxation on the processed goods may
be the wisest. The recommendations
of the council will then be considered
by the Secretary Of Agriculture before
any regulations are issued.
"(3) To license professors and dis
tributing agencies that handle agrtcul-
tural products in interstate or foreign
commerce, in the event that such lcens-
ing becomes necessary in order to
achieve the purposes Of this bill.
40 To use the Smith cotton option
contract plan on the 1888 crop Of cot
ton.
"(5) To impose taxes on the process
ing of the basic farm products. The
amount of the tax, however, cannot be
greater than is required to bring the
market price up to the pre-war parity
price. Thus, If wheat Is selling at SO
cents a bushel, whereas the pre-war
price was 90 Ccuto, ticIC 10 O onAeA SiiSe
Of 38 cents bushel. The tax on flour
might, therefore, be as much as but
not more than that. The purpose OF
the tax Is to collect funds to compen-
safe those farmers who have contracted
to reduce their production of the COM
modify so taxed. The basic products to
which the bill may apply are these:
Wheat, cotton, corn, tobacco, rice, hogs
and milk"
Code Of Competition.
The industrial recovery act gives the
President power to approve codes OF
fair competition for any trade or in
dustry of an interstate character.
Either the various industries will draw
up their codes and submit them, or the
President Of his own motion draw up
a code and imposite on any such in
dustry, after due notice, hearings, etc.
If he is not satisfied with the codes
submitted, he can change them at will.
The President is further given power
to enter into agreements with indus
trialists, trade groups or industrial
groups If, in his Judgment, such agree
ments will further the cause of fair
competition as embraced in the section
dealing with codes. If any business
enterprise proves recalcitrant about
accepting a code or entering into an
agreement, then the President is en-
powered to make public announcement
that after a certain date no person
shall engage in any given interstate
business without license. If any per-
son nevertheless does so engage, then
he shall be fined $500 or be imprisoned
for six months or both, each day Of the
continuation Of the offense constituting
a separate offense.
If, after code is set up, any mem
Der of the industrial group violates it.
then that member shall be punished by
a fine of $500. If any licensed business
violates the prescribed code, the Presi-
dent Is given power for one year to
revoke or suspend its license.
The codes shall in no case be de-
signed to impose inequitable restric-
tions on membership in the trade groups
or to promote monopolies or to Cypress
small enterprises. They shall give en-
ployes the right to collective bargaining
and agree to respect maximum work
hours and minimum standards of wages
to be prescribed by the President.
The codes, agreements and licenses
are made exempt from the provisions
of the antitrust laws.
In sending the industrial recovery
bill up to Congress President Roosevelt
explained its terms in a brief message.
That portion of it dealing with the
enlarged powers of the President over
industry follows:
MY first request is that the Congress
provide for the machinery necessary
for a great cooperative movement
throughout all industry in order to
obtain wide unemployment, to shorten
the working week, to pay decent wage
for the shorter week and to prevent
unfair competition and disastrous over
production.
Employers cannot do this singly or
even in organized groups, because such
action increases costs and thus per-
mits cutthroat underselling by competi-
tors unwilling to join in such public
spirited endeavor
"One offthe great restrictions upon
such cn.operatiYe efforts mn To This