The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1933-05-19

two pieces OF leSlS-
lation coming from the great mill OF
laws. Singularly enough, each must
be denominated as experimental. re-
fer to the farm bill, with its imitation
powers, and the measure designed to
transform the Tennessee river valley
into a gigantic laboratory for develop
ment of partially-tried plans and ex-
Fermentation with theories, with the
Muscle Shoals nitrate and power
plants as the center.
The special session has worked at
top speed. Seldom has so much been
accomplished, if the measure be by vol
ume, as has resulted from the labors
of congress under the lash and COM
plete domination of President Roose-
welt. But we are concerned now with
an aftermath, with a continuing force
Hence, the two enactments mentioned
stand out, for the effect of the farm
bill will be direct and that Of the Ten
nessee river experiment may mark an
economic milestone in the nations his
tory.
President Roosevelt declined to as
sure success for the farm bill. He
termed it a gigantic experiment, an
effort offered in search Of relief for
downtrodden agriculture, hope for
better conditions. The so-called Mus
Gle Shoals legislation is experimental
by its own language. 1t prescribes the
experiments that are to be attempted
under government guidance and to be
financed, at the start, out of govern
ment money.
The provision of the farm bill dele
eating to the President authority to
use inflationary measures with the
currency is, Of course, vital to every
one. 1t has been analysed in this col
umn heretofore and while every one Is
interested in what the President may
do with those powers, it does not par
take of the same conditions or circum-
stances as the farm or Muscle Shoals
legislation.
While each of these measures is de-
signed to aid agriculture, there is a
point of striking dissimilarity be-
tween them. The farm relief measure
is designed to have an immediate eff
feet. No such thought is entertained
respecting the Muscle Shoals develop
ment proposal. It's purpose is pre-
Dictated on a belief by those who fos-
tered it that 1t will be of lasting bene-
fit to the human race. If the theories
prove workable and partiallv-tried
plans can be carried on to successful
conclusion, the hope doubtless can be
realized.
President Roosevelt told congress
when he asked enactment of the farm
relief bill that he
a NeU and deemed 1t emergent-
U,frod Path ly necessary to take
constructive steps
in aid Of agriculture.
"Deep study and the joint counsel
Of many points of view," the Presi-
dent said, "have produced a measure
which offers great promise Of good re-
suits. I tell you frankly that it is a
new and untrod path, but 1 tell you
with equal frankness that an I'M
trial Of new means to rescue agricul-
ture"
The President added that If It failed
to develop those results 81 will be the
first to acknowledge It and advise
you.' 1t appears then as hope. We
are starting on a new road.
The first principle of the bill is most
peculiar. 1t would have cotton farm
ers purchase government-owned cotton
at the present market price to what
ever extent they will do so and reduce
their acreage this year in accordance
with the amount so bought by them
and which will be held by the secre-
tary Of agriculture in trust for the
purchasers until 1885, If they desire.
The purchases therefore can be made
on credit.
The purpose of this, of course, is to
reduce production and thereby reduce
the surplus in one and the same con-
tract. The farmers cannot buy the
government cotton without there being
a resulting decrease in acreage. Sim
ply stated. then, this principle is de-
signed to shorten the supply and cause
an increase in price OF course, the
farmer takes the chance that there
will be no increase in price, but here
again, II is "a new and untrod path"
and that chance may win.
The second section of the measure
has been attacked by its critics as
''robbing Peter to pay Paul" 1t gives
the secretary of agriculture authority
to lease agricultural lands, pay
ing the owner agreed sums as rental,
to accomplish a reduction in acreage
by removing those lands from crop
productive use That, as is readily
discernible, will be an expensive
proposition. The government could
not do it without having funds come
from somewhere to make such pay
ments So the sponsors of the bill laid
tax on the professors of agricultural
commodities to obtain the needed
revenue.
1t hardly need be said that the
processors-the packer of meats. the
miller of flour, the spinners of cotton,
etc.-are going to fight this section.
Then, this complex piece of legisla-
ton also provides for use of the allot-
ment plan, and other
Consumers taxes on the pro-
Will Pay cessors and use OF
the tariff against inn
ports to drive the prices of farm
commodities higher. This section like
the others has been questioned as
TO its constitutionality, and it has per-
haps the strongest array of opponents,
for the consumers will help pay the
hill In q hip WAY That is all axcont