Milford chronicle., 1933-05-19
The National Farm Relief Bill

Z fore the war, but price that will
/ buy as much manufactured goods as
/ the price received for the same vol
( ume of agricultural goods before
the war would have bought. ',
Just now, with prices farmers pay
at their pre-war level, the maximum
l'fair-eXchange price in dollars would
be the pre-war price. II may later
be lower or higher. depending on
whether prices paid by farmers go
lower n higher.
For the farm goods that he sold
before the war for $1.00, the farmer
in March, 1888, was receiving only
so cents. For the manufactured
goods that he bought for $1.00 be-
fore the war, he was paying $1.OS in
March. Therefore his pre-war parity
price. in order to buy as many
manufactured articles as his own.
produce would have bought in 1909
1914, would have been more than
double the price in dollars that he
actually received in March.
The Act provides that if the mar
ket price itself rises toward the pre-
war parity price, the compensating
payments will decrease. in proper
ton, and if the market price reaches
the pre-war parity level, the pay
ments will be discontinued.
The goal of pre-war parity is to
be approached gradually, and with
due regard to the ability of consum- |
ers to pay, the condition of indus |
try and employment. and the possi-
bility that the payments may be-
come SO heavy that they will check
the consumption of the commodity
on which they are made. If they |
threaten to do so. the Secretary of
Agriculture may reduce or discoh-
tinue them.
The money to make the adjust
ment payments can be derived at
first from Government fuuds. The
Act apprOpriates S100,000,Oj0 for
this purpose. The Act provides that
as the program gets into operation
and the general benefits OF this and
other measures are apparent, the
payments shall be made from the
proceeds of processing tax applied
20 the basic commodities as they
pass through the manufacturing and
channels.
Again the Secretary Of Agricul-
ure is given authority to fix and
eyy these taxes after hearings at |
which producers. professors, ,6istri- |
Dutors, and consumers make their [
as to whether the
ak shall be applied t. given COM
modify, how much it shall be, and |
low and when it shall be collected.
The proceeds of any such tax will
,e. collected by the Bureau of Inter- s
Ial Revenue. paid to the unite1 /
,tates Treasury, and distributed in /
payments under the SUI I
,ervision of the Secretary of Agr- /
ulture. The Secretary is given the
Iower to increase or decrease the a
AK. refund it or discontinue it. If he (
nds that it is interfering with the q
purpose of the Act and with the f
formal distribution Of the cOmmod- {
~. i
Another provision of the Act per- +
lits the Secretary of Agriculture TO 70
nter into trade agreements among 4
roduCers, professors. and distTibu-I II
lrs. to remove price-depressing il
rade practices and activities and t.
} insure that there shall be ito I'M a
lirnes5. Professors and distributors II
ntering into agreements with the r
ecretary of Agriculture on trade m
ractices that enable them to reduce Ii
lie margin OF distributing costs r,
ould be exempted from the. pro- n
sions of antitrust laws against
in restraint of trade. Is
nder these agreements it would, a,
n example, be possible to allocate ii
ade territories, discontinue the el
Sc of price leaders" sold below Ct
Ist in retail stores, and take other b,
easures to reduce duplicating and A