Evening star., 1933-03-17
.HE text Of the bill proposed by
the President to relieve the ex-
isting national economic emer-


L gency by increasing agricultural
purchasing power follows:
Be 1t enacted by the Senate and House
OF Representatives Of the United States
of America in Congress assembled.
That the present acute economic
emergency being in part the conse-
quence Of a severe and increasing dis
parity between the prices of agricultural
and other commodities, which disparity
has largely destroyed the purchasing
power of farmers for industrial prod
ucts, has broken down the orderly ex-
change of commodities and has seri-
| ously impaired the agricultural assets
! supporting the national credit structure,
| it is hereby declared that these condi-
tions in the basic industry Of agricul-
ture have affected transactions in agri-
cultural commodities with national
public interest have burdened and OBJ
structed the normal currents of COM
merce in such commodities and render
| imperative the immediate enactment OF
| this act.
Declaration Of Policy.
Sec. 2. 1t is hereby declared to be
the policy of Congress:
% To establish and maintain such
balance between the production and
, consumption Of agricultural commodi-
| ties, and such marketing conditions
therefor, as will restablish prices to
farmers at level that will give agri-
| cultural commodities purchasing
power with respect to articles that
farmers buy, equivalent to the purchas-
ing power Of agricultural commodities
in the pre-war period, August 1909
July, 1914; and
(2) To approach such equality of
purchasing power by gradual correction
!, Of the present inequalities therein at as
| rapid rate as is deemed feasible in
view Of the current conSumptive de-
mand in domestic and foreign markets
90 To protect the consumers interest
by readjusting farm production at such
level as will not increase the percentage
of the consumers retail expenditures for
agricultural commodities, or products
| derived therefrom, which is returned to
| the farmer, above the percentage which
was returned to the farmer in the pre-
] war period, August. 1909-July, 1914.
Title I-Cotton Option Contracts.
Sec. 3. The Federal Farm Board and
all departments and other agencies OF
the Government are hereby directed:
| ca To sell to the Secretary OF Agri-
culture at such price as may be agreed
upon all cotton now owned by them.
(b) To take such action and to make
such settlements as are necessary in
order to acquire full legal title to all
cotton on which money has been loaned
or advanced by any department or
agency of the United States or held as
collateral for loans or advances and to
1f nl,
and advances upon such terms as may
; be deemed advisable, in the judgment
of the Secretary and the department or
agency involved; and to sell thi5 cotton
| also to the Secretary in the samc man.
ner as is provided in the preceding
paragraph hereof.
Sec 4. The Secretary Of Agriculture
shall have authority to borrow money
upon all cotton in his possession or con-
troll and deposit as collateral for such
loans the warehouse receipts for such
cotton.
Sec S. The Reconstruction Finance
Corporation is hereby authorized and
directed to advance money and to make
loans to the Secretary of Agriculture to
acquire such cotton and to pay the
carrying costs thereon in such amounts
and upon such terms as may be agreed
upon by the Secretary and the Recon-
struction Finance Corporation, with
such warehouse receipts as collateral Sc
curity.
Sec. s. (a) The Secretary of Agricul-
ture is hereby authorized and directed
to enter into contracts with the pro-
ducers of cotton to sell to any such pro-
ducer an amount Of cotton equivalent in
amount to the amount of reduction in
production Of cotton by such producer
below the amount produced by him in
the preceding crop year, in all cases
where such producer agrees in writing
to reduce the amount of cotton produced
by him in 1923, below his production in
the previous year, by not less than 30
per centum, without increase in COM
mercial fertilization per acre.
(b) To any such producer so agree
ing to reduce production the Secretary
of Agriculture shall deliver a non-trans-
ferable option contract agreeing to sell
to said producer an amount Of cotton
equivalent to the amount Of his esti-
mated reduction of the cotton in the
possession and control of the Secretary.
(c) The producer is to have the op-
tion to buy said cotton at the average
price paid by the Secretary for the cot
ton procured under section 3, and is to
have the right at any time up to Janu-
ary /, 1884, to exercise his option, upon
proof that he has complied with his
contract and with all the rules and
regulations of the Secretary of Agricul-
ture with respect thereto by taking said
cotton upon payment by him of his
option price and all actual carrying
charges on such cotton: or the Secretary
may sell such cotton for the account of
such producer, paying him the excess
of the market price at the date of sale
over the market price at the date of his
contract after deducting all actual and
necessary carrying charges: Provided,
That in no event shall the producer be
held responsible or liable for financial
loss incurred in the holding of such
cotton or on account of the carrying
charges therein: Provided further, That
such agreement to curtail cotton pro-
duction shall contain further provision
that such cotton producer shall not use
the land taken out Of cotton production
for the production for sale, directly or
indirectly, of any other nationally pro-
duced agricultural commodity or
product.
Sec. 7. The Secretary shall sell the
cotton held by him at his discretion:
Provided, That he shall dispose of all
cotton held by him by March /, 1885:
Provided further, That he is authorized
to sell unlimited amounts, at any time
a price equivalent to not less than 10
cents basis middling s:ven-eighths-inch
staple at the ports can be procured.
Title II-Agricultural Adjustment
Provisions.
General Powers.
Sec. 8. In order to effectuate the de-
clared policy the Secretary of Agricul-