Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-08-16
A.A.A. STANDS PAT,
WALLACE ASSERTS
Says Goal Will Not Be
Changed as Congress Com
pIeteS Legislation.
Nv the Associated Press.

BY the Associated Press.
The Agricultural Adjustment Ad-
ministration, Secretary Wallace In
sisted today, has not and will not
change its goal-to control production
to a normal supply per capita for the
American consumer and not to pro-
duce a surplus for a foreign market
which has been lost.
Secretary Wallace made the state
ment after the Senate and House, with
a rush of speed late yesterday, COM
pleted legislative action on the A. A. A.
amendments, designed to strengthen
the CROP justment program. Quick
presidential approval of the changes
is anticipated.
A change in plans for the 1886
wheat-control program, announced
Wednesday, Secretary Wallace pointed
out, was not an about face" for the
A. A. A. The Farm Administration
announced that the wheat acreage re-
duction to be required of contract sign
ers next year will be S per cent.
Weather Changed Plans.
A is per cent reduction had been
announced two weeks ago, but that
was before the crop report released
August 9, which indicated black rust
and heat had caused loss of 1913 ,0O0,-
900 bushels in the 1885 wheat crop
during the month Of July.
It's the hardest thing in the world,
Wallace said. Ito get people in the
cities to realize that weather changes,
and that these weather changes affect
farm plans"
Again and again during the inter
view Wallace stressed that American
farmers must avoid producing stuff
that cannot be sold abroad at fair
prices"
Referring to complaint about higher
prices of hogs and pork, Wallace smiled
and said, The price of hogs isn't so
far out of line"
He said that in 1882 and 1888, prices
of hogs we're down to about one-third
Of parity. or what the A. A A. terms
fair exchange value. This condition.
he said, was worse than scent
cotton"
Will Increase Adjustments.
The new amendments to the agri-
culture adjustment act. Wallace said,
will permit increased adjustment" of
production by permitting benefit pay
ments for increased production. Pre-
viously, benefit payments could be
made only for crop reductions.
However. Wallace said carefully.
there is little likelihood OF this pro-
vision being put to use except in cases
OF grave emergency.
The Secretary expressed satisfaction
with passage of the Amendments after
l8 months Of controversy.
The amendments have two ma jor
| purposes: To give the Secretary of
Agriculture added powers in prosecut-
ing the farm program and TO erect
bulwarks around the program against
the time when it meets its crucial test
in the Supreme Court.
New Safeguards Added.
The amendments were first in
troduced, in different form, in the last
session Of Congress. Revised to meet
strong opposition. they we're offered
again early in this session. only to be
modified in the light of the Supreme
Courts decision holding the N. R. A.
invalid. New safeguards were added.
intended to meet objections on the
grounds of illegal delegation of con-
gressional power.
One of the most controversial points
was the section barring suits by pro-
cessors to recover processing taxes in
the event the levies are held uncon-
stitutional. A compromise was reached
by the Senate and House.
AS passed by the House, the legisla-
ton prohibited suits to recover. The
Senate changed this to allow process
sors to sue to recoup If they could
show they had not passed the taxes on
to the consumer or producer.
Under the compromise, the process
sors can sue for recovery, but first
they must submit their claims to the
commissioner of internal revenue who
will place his findings before the court.
On these will be based the final de-
cision whether recovery should be
granted. However, the professors still
must show they have not passed the
taxes along. The amendments also
specifically seek to validate the pro-
cessing taxes.
Other Provisions Of Bill,
AnnnYn
Permits the Secretary of Agriculture
to draft marketing agreements, with
the consent Of the majority of pro-
ducers or professors, for these COM
modities: Milk. fruits Except apples)
tobacco, vegetables. soybeans, pecans,
walnuts and naval stores. Vegetables
and fruits for canning are exempt.
Extends for one year the Bankhead
cotton control and Kerr Smith to-
oacco control acts and authorizes i'm
position OF similar program on po-
tatoes.
Authorizes use of 80 per cent of GUS
toms receipts-estimated at $50 .0OO,-
600 annually-to finance export of
crop surpluses-except cotton-under
the export debenture plan.
Authorizes use of part Of the s4,-
o0O. 100000 works funds to buy up
submarginal farm land.
Permits start of the "ever-norma
granary" plan under which the Gov
eminent could make loans to pro-
ducers to induce them to hold sur
plus crops on farms. In years OF
shortages. the stored crops would be
made available and the loans repaid.
MPC Moi IL AA,nAAiIFI