Evening star., 1934-01-07
BY OWEN L. SCOTT.

BY OWEN L. SCOTT.
President Roosevelt, Henry Wallace
and Rexford Guy Tugwell-guiding
spirits in the effort to bring better
times back to the country's 5000, 600
farmers-are pictured now as looking
eagerly to the time when they can
gradually abandon one phase OF the
new deal.
That phase is the payment Of huge
rental bounties to the farmers in re-
turn for their agreement to produce a
smaller amount of foodstuffs Mr.
Roosevelt told Congress on Wednesday
that this plan is working to bring a
better balance between farm income
and city income. But, while he did
not say so, enough problems, bitches
and crevises have developed in the do
mestic allotment system to convince its
sponsors that the time has come to
look for something more effective.
What that alternative is likely to be
has been outlined by Secretary OF
Agriculture Wallace and his assistant,
Prof. TugHell, who is the present leader
of the Brain Trust" and dominant as
an adviser on economic subjects. The
plan calls for the repurchase by the
Federal Government of vast tracts OF
land that it once gave away or sold
for a pittance during the days when
the frontier was being pushed West
ward. 1t also calls for retirement Of
lands in the East that have been
farIned out, and Of cutover areas In
the Great Lakes region that might bet
ter 60 back to trees.
The President hinted at a land-buy-
ing policy in his address to Congress.
Secretary Wallace discussed it in his
annual report and Prof Tugwell de-
voted the major speech of his Gov
ernment career to the subject, on De-
cember 20. H. r. Tolley, head Of the
new planning division of the Agricul-
tural Adjustment Administration. is an
advocate of this type Of long-range
agricultural planning.
All have emphasized. however, that
the change from the bounty system to
a period Of definite planning will have
to come gradually. In the meantime
the Federal Government Is pledged to
pay out. over the next two years. about
Sl.200,000,000 to farmers who CO.
operate in trying to balance the supply
and demand CT agricultural products.
That total is almost sure to be raised
to a billion and half, and maybe
much more, by the present Congress.
In contrast with these huge pay
ments to take about 100000 acres
out of cultivation over a two-year
period, the Government, with the use
of an equal amount of money, could
pay $50 an acre and buy up about
25,000,000 acres to be retired perma-
nently However, fund Of only S25,-
100000 is included in the first allot-
ment set aside this week for land buy
ing. And s35000O 900 is fixed as the
cost of retiring from use about 50.-
100000 acres of poor quality farm land.
The reason that faster pace will
not now be set is that other important
problems trail in the wake of any at
tempt to uproot people from their
homes, even If those homes represent
a hopeless struggle. The families af-
Elected have to be put on a self-sus-
tanning basis in other regions or in
cities Matters of State and local pride
also enter the picture.
When Harold Ickes, Secretary of the
Interior, suggested recently that land
buying might be done in Oklahoma to
move people frcm marginal farms, Gov
Murray threatened to call out the
Militia to handle the Federal agents.
But high Government officials are
convinced that the long-range land
program has to be applied, with an
early start. They hope that a crop
failure in Europe, or sharp business
improvement in this country, or some
other contingency, will arise during the
next year or two to bring a much
bigger demand for farm products while
the adjustment is being set under way
Then the opportunity would be offered
to pull out of the present domestic
allotment plan on the ground that the
emergency had passed.
The reason for this desire to bring
change in methods is that the pres
ent scheme of processing taxes is far
from a bowling success. In the dairy
industry, supplying quarter of the
gross farm income, production control,
financed by processing tax, has proved
almost impossible. Quite evident are
the political implications of tax on
milk that goes to feed the Nations
babies So Secretary Wallace Is pre-
pared to ask Congress to make direct
appropriation of at least 5000, 900
to finance a program of cow control
in dairying and in beef cattle raising.
But the outright gift of a fifth of a
billion dollars to these industries
without supporting tax to raise the
money - Immediately strengthens the
position Of those who want To turn all
of the bounties into gifts from the
Treasury.
Not only that. but it now appears that
unless the production control plans are
made compulsory, evasions by "chisel-
ers" among other farmers may defeat
the purpose of the plan. How this
cheating works is seen in the case OF
wheat Bread eaters are to pay S1o2,-
ooo. 900 during the year. to be used as q
bounty to farmers who agree to cut
their planting Is per cent. But instead
of a reduction of is per cent. Winter
wheat farmers are cutting their plant
ing only 7.2 per cent. The reason Is
that those not signing the contracts
have increased their acreage.
Other difficulties are arising with
processing tax plans. In corn the full
tax of 28 cents has been delayed, be-
oauea of tho r,rosnert of an adverse