Evening star., 1933-01-27
COTTON QUOTA PLAN
LABELED SALES TAX
AT SENATE HEARING
CONTINUED From First Page.)

(COntlnued From First Page)
provision of the measure and that q
new principle to cover that product be
written into it.
This in general would provide that
the Government instead of lending
farmers money to plant the new crop of
cotton as is done under crop production
loan legislation, lend the money for pur-
chasing outright on the current mar
ket the amount of cotton proposed to
be planted
Anderson, in his testimony opposing
the bill, said: "A shot in the arm is
not going to go very far to relieve the
difficulties Of the farmer, and that is
about all the bill has to offer" ne said.
Enactment of this bill will greatly cur
tail consumption Of cotton products
from American mills, due to the fright
ful sales tax it involves
Predicts Buyers Strike.
I'VE will see buyers strike OF q
magnitude and on a scale never before
witnessed. We will see chaos in the
cotton industry throughout the United
States. Many mills will cease opera.
tions entirely.
This bill will be severe boomer.
to the farmer and one Of the mos: =
we're blows ever struck him in the efIC-
to relieve him by artiflcially fixing Ill
price"
THE biggest yelp of all will be heard
from the consumer when he undertakes
to buy cotton goods at the tremendously
increased prices that will result
He predicted retail prices will 20 I'D
SO per cent on workshirts, AZ per cent
on overalls, "a per cent on bed sheets
and l8 to rs per cent on ready-made
dresses. He said this sales tax wotld
total 81 ,000, 900, 900 a year.
Anderson told the committee that
under the bill it would be impossible to
hold the export trade because as the
bill Is now written the tax would have
to be paid originally, even though res
funded after it was established the
cotton was not going into domestic
consumption.
Early Hearing Promised.
An early hearing before the Senate
Banking Committee was promised last
night for the $500, 100000 "emer.
sency farm credit bill sponsored by
Senator Robinson Of Arkansas. the
Democratic leader.
Within "a hours after its introduce
ton, consideration of the bill ahead Of
much other pending legislation was
assured by Chairman Norbeck Open
hearings will be held. he said Just
when they will begin has not been
determined.
Asked his opinion on the measure,
Senator Norbeck said lit is such a tre-
'mendouS thing that I haven't any opin-
ion on it as yet He added that it
would take week of study to digest
its provisions and reach a conclusion.
The bill would provide 81 900, 900, 900
to form corporation to lend money to
farmers. In addition more than
s500,000,000 would be provided for
strengthening the Federal Land Banks
to enable them to take over sound farm
mortgages wherever held, extend deserv-
ing farmers payments and cut the
interest rate. Besides the stated sums,
the Treasury would provide whatever
money might be needed to enable the
land banks to ease up on worthy
borrowers.
Bill Offered in House.
The views Of the Hoover administra-
ton on this measure may be made
known at the hearings through repre-
sentatives Of the Treasury Department,
who probably will be called.
In the House yesterday Representa-
tive Bulwinkle, Democrat, of North
Carolina, introduced a bill to authorize
the Reconstruction Finance Corporation
to make loans totaling 81 600, ,000, 900
to secure postponement of foreclosures
on farm mortgages.
His proposal would secure postpone.
ment for two years for farmers who
are delinquent either in interest, prin-
cipal or installments on principal. and
would allow advances on unpaid delin-
quent taxes in arrears for period Of
more than one year. provided the taxes
were due and unpaid prior to January l,
1888.
The advances would be made to farm
mortgage holders, only after the corp
grafton is satisfied that the mortagee
shall have paid delinquent taxes.