Evening star., 1933-07-02
Beer, Banks, Budget
Force Legislative
Session in Kansas
Wheat Growers Hope aor
Low Prices to Collec.
Processing Tax.
Special Dispatch to The Star.

Special Dispatch to The Star
TOPEKA, Kans., July Beer, banks
and budget have forced Gov. ALI H.
Landon to call special session Of the
Kansas Legislature.
The special session, which probably
will meet in early Winter or late Fall,
is expected to do three things:
First, submit the repeal of the eight
eenth amendment to the voters at
the regular election in November, 1884,
thereby taking the liquor issue out of
the 1884 election SO far as State officers
and members of the Legislature are
concerned.
Second, revise the Kansas banking
laws to permit State banks to take ad-
vantage of the provisions of the Glass
banking act by January /; make pro-
vision for State banks in towns too
small to meet the requirements of the
ton; revise the entire banking system
so as to retain the State banks as a
secondary system in Kansas, outside
the Federal Reserve.
Third, balance the budget for the
next fiscal year. The Legislature in
its regular session this year reduced
appropriations for State departments
and institutions so enthusiastically that
the rise in commodity prices, If and
when continued, would give a State
deficit of from two to four million dol
lars by 1885.
Hope for Low Wheat Prices.
Fer once the wheat growers of Kan
sas have been hoping for a brief con-
tinuation CT low wheat prices Doesn't
sound reasonable, but it is a fact.
Here is why.
The Winter wheat belt in Southwest
CTS f1l,
Oklahoma into the Texas Panhandle
has a short crop this year. In fact,
IN a half dozen Kansas counties there
is no wheat crop at all.
Under the announced plans of Henry
A. Wallace. Secretary of Agriculture,
these farmers were to be taken care of
by modifying the domestic allotment
plan in the farm adjustment act so as
to pay these growers the wheat bonus
On the average of their crops the last
three years. If a farmer had been
getting 1000 bushels year. he would
get the bonus on the domestic per-
as determined by the department.
whether he had a crop or not.
The wheat benefit is to be the differ
ence between the current farm price
and the fair exchange value" as de-
fined in the farm adjustment act. Ac-
tually, that means about 80 cents a
bushel at the farm is the fair exchange
value, or about $1.10 a bushel, Chi
cago price. Wheat the 1st of June
was SO cents at the farm. So the
benefit-and the processing tax to meet
the payments-would be 80 cents a
bushel
Market Has Been Soaring.
But the wheat market has been soar
inn AeIN i,,
west is forecast. Also the milling in
terests may have been "bulling the
market" somewhat also in hopes that
by the time Wallace issued his order
wheat would he close to 80 cents on
the farm. At that point the difference
between the farm price and the fair
exchange value would be nothing, no
professors tax would be levied, and
there would be no provision for paying
the benefits to the wheat grower.
In other words, the lower the wheat
price, the greater the processing tax
and the benefits per bushel to be paid
the grower. Hence those Winter wheat
growers who had no crops this year
have been praying for q low market
for the first time in history.
There was a sigh of relief over
Western Kansas this week when 1t was
announced that the benefit would be
paid. no matter how much the market
skyrockets before July g. It means
s25. 900, 900 to $30,000,0 900 to South
west Kansas.
High temperatures and hot winds
have been playing havoc with pastures
and crop prospects all over the State
the past two weeks. But aside from
the Far Southwest wheat counties, KAN
sas Is decidedly on the mend. Busi.
ness Is picking up. Railroads are car.
fying more trafoc. Thousands Of Kan&
,Sans ASe attendtna fhoa aChlcaeo ,TktI.