Evening star., 1933-06-17
WHEAT PRODUCTS
GET MAXIMUM TAX
Money to Finance Efforts to
Reduce Production of
Nations Farms.
BY the Associated Press.

By the Associated Press
Maximum processing taxes will be
levied beginning early in July on all
wheat ground into flour by American
mills.
To finance efforts to reduce the Ma
tion's production, these taxes will be
about 80 cents a bushel on the basis
Of present relationships of current and
pre-war prices. They will be higher
If wheat declines In price, lower II 1t
increases. Secretary of Agriculture
Wallace will fix the tax within short
time and hopes to keep it as stable
as possible. It will become effective
between July and 15
In his first major exercise Of powers
under the new farm act Wallace will
ask farmers Of the wheat belt to agree
to reduce their acreages for harvest
in 1884 and 1885 by as much as 20
per cent In return he will offer them
cash bonuses, and he plans to distribute
$50, 100000 Of these, most of 1t by
September Is.
Has Faith in Plans.
Outlining his program yesterday,
Wallace was confident He expressed
strong faith in his plans for apply
ing the act which President Roosevelt
has described as frankly experimental
in nature" Some details remain to
be determined. but in another month
Wallace expects administrative ac-
tivity will be in full swing.
Secretary Wallace postponed for this
week announcement Of his cotton pro-
gram.
Official announcement Of the plan
was tentatively scheduled for Monday
afternoon.
The delay was understood to have re-
suited from protest filed by Senator
Smith, Democrat of South Carolina, to
the use Of taxes which, it was esti-
mated, would yield about $10O, 600, 900
on the portion Of the cotton crop do
mestically consumed, normally about so
per cent Of production.
Smith and group of Southern Sena-
tors and Representatives of millers
held conference with DR.. r. G. Tug
well, Assistant Secretary Of Agriculture
and Charles j. Brand, co-adn1inistrator
OF the farm act.
Smith presented arguments that
processing tax would be unnecessary
this year. because 5000, ,000, 900 is avail
able for Wallace's use under appropria-
ton made by Congress.
The South Carolinian took the posi-
ton that a processing tax may depress
the price OF cotton and that without
tax, cotton prices will increase sub
stantially, probably up to Is cents
pound and benefit farmers at harvest
time.
Wallace, however. was reported to be
unShaken in his determination to put
the cotton program on a self-Support-
ing basis as far as possible. His plan
contemplateS, in addition to rentals to
growers agreeing to reduce acreage of
the growing crop. offers to them of
options on $500 900 bales of Government
owned cotton at less than market prices.
The program calls for acreage re-
duction of the crop now growing,
and levying of maximum processing
taxes. amounting to cents a pound.
Administrative activity will be speeded
up to get it in full operation at
more rapid rate than wheat.
The cotton program provides for
rental Of lands on which cotton is
now being grown, and offers farmers
options on Government-owned cotton.
Funds from the $200, 100000 appropri-
alton made available to get the farm
act in motion will be drawn on to
finance this.
Domestic Allotment Plan.
The wheat plan is based on the vol
untary domestic allotment plan. The
exact amount of acreage reduction will
be determined after negotiations have
been completed at the World Wheat
Conference at London.
Wallace said the program provides
the United States with machinery to
fulfill any international agreement for
acreage reduction that may be made at
London but in case the conference fails
to reach an agreement separate re-
duction program will be employed in
this country.
The plan contemplates fixing allot-
ments of wheat for each State and
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