Evening star., 1933-06-15

N0O4kLlu5Q EIOm C1rSI fa8e.l
drop before collection of the tax begins
the rate could be boosted, while II
prices rose as result of the prospect
OF q smaller future supply the tax could
be smaller. Wallace's power author
ICES him to levy q tax which, at its
maximum, represents the difference be-
tween the current price and the parity
price, which Is based on pre-war aver
| age levels.
Parity essentially Is the price which
bears the same relationship to the
price level Of things farmers buy as
farm prices bore to the cost of con-
sumption goods during the period 1909
to 1914.
The tax Is to be collected on all cot
ton and wheat at the first point Of
processing, but Is to be refunded On
processed commodities which are ex-
ported. The act also provides that
proportionate taxes must be levied on
competing imports in addition to any
existing tariffs on those commodities.
Tax on Domestic-Used Goods.
As a result, the tax actually viii apply
to that portion Of the cotton and wheat
produced which Is used for domestic
consumption.
The acreage reduction program for
cotton Is aimed to retire one-fourth of
the estimated paintings Of about 90
600. 900 acres. Rentals will be paid to
growers at rates varying around $6 an
acre, depending on costs accrued to
date, and in addition growers viii be
offered options on 2,500,000 bales of
Government-owned cotton at q price
below the current market.
II the cotton crop Is reduced TO TO-
600. 900 bales, as hoped by some admin
istrators, 4-cent tax would yield $780,
600, 900 gross, of which about one-haif
would be refunded, as normally that
portion Is exported. This would leave
a fund of 500, 0,000, 900 for financing
sum drawn from appropriations of
5000, 100000 authorized by Congress for
reducing acreage devoted to basic crops
listed in the farm BILL
In the case Of wheat about 500 000.-
900 bushels Is normally used to supply
domestic needs for -four and other food.
products each year. A tax Of 30 cents
a bushel would yield $3.50, ,o00, 900. The
wheat program contemplates employ
ment of the domestic allotment plan.
with growers to be paid cash bonuses
for agreements to reduce their acreage.
Planting OF Winter wheat, which viii
begin in August, win be the first affected.
The plan calls for part payment Of
this bonus when the agreement is drawn.
with the remainder to be paid after
verification that the farmer has fulflled
his agreements.
Farmers to Do Policing.
In both cases q county administra.
ton is being devised calling fot the e.
tablishment Of committee of farmers
to put policing of the plan on q basis
Of self-interest as far as possible.
Even as the plans were drawn apri-
cultural commissioners Of Southern
States forwarded to the President =
that at least 10000 600 acres.
Or better still, 12,s00 900 acres. be taken
put of production in the cotton belt
This year. They opposed, however. levy
ing of the processing tax.
Earlier IN the week 1t was decided To
postpone announcement Of. the plans
Until Congress adjourned. This result
I'd In objection from many members,
particularly group from the South.
The latter expressed opposition to q
tax which they believe was
made unnecessary by the Bankhead
to the industrial control.
public works bill, which set aside $780,
100000 for paying rentals to farmers,
'etiring lands from the production of
,asic crops. Another 500 600 600 was
provided in the act itself. making
i2oo. .oo0oo0 available for getting thu
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