Evening star., 1933-10-01

asumers.
ly. bringing into cultivation millions ol
acres that had not before been cult
waited. but the postwar period has seer
foreign nations that formerly pur-
chased American farm products builG
up their own agricultural output
thereby cutting down TREMENDOUSLY tht
export market of the American farmer
Faced with such conditions, the admin
istration has set up the A. A. A.. the
most ambitious system of farm subsidy
ever undertaken anywhere. BY the use
of the processing tax, the Government
is seeking to have this subsidy paid
first by the manufacturers and finally
by the people through higher prices OF
commodities, rather than to have the
subsidies come th.oJ yh increased Fed
eral taxes levied u IN all the people.
The A. A. A. has undertaken to cur
tail cotton planting. wheat planting
and hog raising 1t is paying the cot
ton farmers millions of dollars for re-
moving from production approximately
10 300 900 acres of the growing crop. or
253 per cent Of the growing crop on
July l. This means a reduction Of
4.247 900 bales of cotton in this years
crop. More than a million farmers
have taken part in the cooperation to
cut the production Of cotton. and the
total cash payments to these farmers
are expected to reach $4,000, 900.
This money Is expected to be raised
from the processing tax Of AZ cents per
pound on lint cotton which became ef-
fective August l. Had there been no
cotton reduction program the crop this
year would have reached the 16, 500, ,000-
bale mark.
Tackling the wheat problem. the
A. A. A. will pay cooperating wheat
farmers % to 80 cents bushel on 81
per cent Of their three-year average
production Of wheat. 1930-1932 inclu-
sive. The acreage reduction must be Is
per cent in 1884 Here. too, it is
planned to meet the payments to the
farmers out Of a processing tax, levied
at 80 cents a bushel en- wheat consumed
for food in this country. beginning July
last The farmers are to receive 20
cents bushel this Fall and the balance
in the Spring, upon evidence they have
complied with the terms of the con-
tract for acreage reduction.
The A. A. A., which has been organ
lied in the Department of Agriculture
itself has gone in for hogs on a large
advance prices. If possible. for the hog
raising farmers. When its buying pro-
gram ends September 30. it is expected
that 100000 pigs will have been pur-
chased from the farmers and 10000
sows. These animals have been and
will be turned into meat. lard. fertilizer,
etc. at Government expense. The prod
ucts will be to aid the unemployed and
the destitute farmers. The whole oper-
alton is expected to cost about
$50 900 900.
Process Tax Required.
This operation in hogs is also to be
cared for by process tax, which is
still in the making. no announcement
having yet been made by the A. A. A.
If, as it is expected the rise in the
prices OF hogs and of hog products takes
place. there is always the possibility
that people will turn more to beef and
lamb and other kinds of meat And so
something may have to be done to
raise the nices of cattle and sheep and
lambs. The ramifications of the farm
relief plan are many and may become
many more.
One other crop, the tobacco CROP
already has been made the subjec;
of agreements with the farmers x
curtail production. and processing
taxes have been levied.
The Government. through the Farm
Credit Administration. is doing all II
can to provide the farmers and then
cooperative organizations with ample
credit, and also is seeking to keep the
farmers from losing their mortgagco
farms. Eight different agricultural
agencies were merged to bring out the
F. c. A. One of the activities Of the
F. c. A. relates particularly to farm
mortgages and provision is made fol
the issuance of Federal farm loar
bonds, bearing 4 per cent interest
which is guaranteed by the Govern.
ment. The bonds are to be substituted
for the mortgages of hard-pressed
farmers, granting them time and giving
them, generally speaking. a much lower
rate Of interest. paying the Govern
ment 4l2 per cent or per cent. Bonds
up to S2,000,000O 900 may be issued fol
exchange for the farm mortgages
The provisions for aid to the owner,
of urban homes. under provisions of the
home loan bank act. have many
points Of similarity with those Of the
act caring for mortgaged farms Two
| billion dollars is the limit of the bond
which may be issued by the Home
Owners Loan Corporation to take ur
the mortgages on homes. The interest
on these bonds is guaranteed by the
Government and is at the rate of per
cent. The owners of the homes are to
pay the Government interest at the
rate of 5 per cent. The difference
between the interest on the bonds and
the mortgages is expected to pay for
the whole administration of the plan
The organizations for the admins
tration of aid to hard-pressed farmers
and home owners are very considerable
The Home Owners Loan Corporation
has 110 Offices in the field, outside cl
Washington. It has 40 State head
quarters for each State and an
other for the District of Columbia
and each of these headquarters has a
manager, an assistant manager, a cou..-
sci. an appraiser and office forces
These State headquarters are included
in the total number of field offices
In addition there is an appraiser il
every county and an attorney. working
on the fee basis
The presumption is that as times grow
better the Government will receive full
rural and urban. The Government will
give the home owners easy terms el
payment. with the low rate Of interest
It is quite clear. however, that If the
home owners do not pay off theil
| mortgages, the Government will be lef
owning lot of real estate, or thu
Congress will have to forgive the debit
and let the farmers and urban home
owners hold their property. That, how
ever is problem for the future.
Emergency Work Plan.
The emergency conservation worl
is the great agency set up to get mer
off the streets and into conservation
camps. It has done an amazing job
It has 100000 men in camps scattered
| throughout the country and number.
ing 1886. The money for these opera
tions comes out of public works funds
and has run around 100000 .
month. Up to August /, there had beer
| exnended for fond and all kinds nI