Evening star., 1933-05-13
The New Farm Act.

Inc new IdTu IcAlcA oSe' SAeA~ -
srrday by the President, like Gaul IN
the days OF Caesar, Is divided INTO
three parts. That part from which the
MEASURE takes its name gives the Pres
,dent and his Secretary Of Agriculture
WIDE powers over farm production and
marketing. A second part OF the meas
,re calls for the refinancing OF billions
q dollars Of farm mortgages, IN an
effort to halt farm foreclosures ana
keep the farmers In their homes. Ine
third part Of the act deals with cur
rency imitation, the most far-reacnlns
powers ever given a President IN peace
time.
The first action Of the Presiden1
spon signing this important measure
vAs to issue a statement urging holders
of farm mortgages to refrain rom
bringing foreclosure proceedings untli
mat section of the farm relief act which
provides for refnancing these mort
cages can become effective. And loi-
lowing this request by the President, the
.,,onsors of a national farm holiday
strike by the farmers in an enort 70
starve the country into giving them
what they want-announced that the
strike set to begin at midnight nao oeen
called off Some Of the farmers organ
isations in the States have acquiesced'
others insist that the strike Is to 60 on,
a. in the case OF the milk producers IN
Wisconsin.
The object Of the farm relief SEC
non of the act Is to bring farm prices
back to the 1sOs-1sl4 level, SO far -
Sbasic" commodities are concerned.
ahese basic commodities are defined
"A follows: Wheat, corn, cotton. oats,
hons. tobacco, rice and milk and milk
products. The Secretary Of Agriculture,
n administering this part Of the act'
4 given broad powers to ret quotas Tor
pruduction and sale Or TO lease lands
Sr withdrawal from production, 70 q
b bring the production to the limits
II tho demand for consumption. The
hst Of the program Is to be met py
proeessors' taxes, levied on manu1ac-
tsrsrs Of products made from these
products. It Is an ambitious plan OF
control Of production. With prices Tor
farm products already on the way up,
the hope IS expressed in many quarters
that It will not be necessary to place
ai Of these provisions Of the new law
IA effect. Admittedly the plan Is An
experiment. The country has had its
an Of costly experiment with farm
surpluses In the past.
What the President intends to DO
about the inflationary powers granted
IN the farm act he has not yet dis
closed. Under its terms he Is author
he'd to increase by $4,000, 100000 the
currency through operations OF the
Federal Reserve banks In Government
securities, purchased in open market,
and to increase 1t by still another
q, 900 ,0O0, 900 through issuing Treas
ury notes, "greenbacks." He Is en-
powered also to reduce the gold con-
tent of the dollar and to AK ratio
between gold and silver for the remone-
hzation of silver How far the Presl-
dent intends to 60 with this imitation
ary power Is a question which Is ap-
tating q lot Of people. II prices con-
tnue their advance; II business picks
ID and employment returns, these
bowers are likely to be used sparingly.
On the other hand, should the hoped
for advance not materialize or lag, then
It may be expected that the admins
tration will go the full route in the
matter of controlled imitation" to
uhich II has committed itself.