Evening star., 1935-05-26
PASSAGE IS SEEN
FOR FARM BILL
Some of Controversy May
Be Cleared by Senate
Substitution.
BY J. A. OLEARY.

Both branches of Congress will be
wrestling this week with proposed
changes in the administration farm
program. designed to make the ag-
ricultural adjustment act more f1ex-
ible. Indications yesterday were the
bill will go through, although it faces
the prospect Of revision in the Senate
before final vote.
The Committees on Agriculture of
House and Senate reported out differ
ent bills to amend A. A. A.. but Chair
man Smith of the Senate Committee
has moved to substitute the House
bill for the Senate measure when the
debate starts tomorrow.
1t was the general belief yesterday
that this substitution will eliminate
some of the controversy that would
have developed in the Senate Changes
even in the House bill, however, are
expected to be offered by several men,
bers, including Senators Byrd. Dem
ocrat, OF Virginia, and Dickinson. Re
publican. Of Iowa
Senator Byrd said he is in favor
of some features Of the pending legis-
lation but is opposed to the involun-
tary licensing of producers. and is pre-
pairing to offer amendments to the
licensing sections.
Dickinson Studying Effect.
Senator Dickinson indicated he Is
studying the possibility of detrimen-
tai effect on Western farmers in the
Eastern market if power should be
granted the Federal authorities to in
clude such dairy products as butter
and cheese in the milk control pro-
gram.
Meanwhile. the House Agriculture
Committee. headed by Representative
Marvin Jones of Texas. has been given
a rule for consideration of the bill in
the House. with six hours of debate.
Speaker Byrns said Yesterday 1t would
be taken up in the House Immediately
following NJ r. A. continuing legisla-
ton probably the middle of the week.
One of the purposes of the bill is
to enable the Secretary OF Agriculture
to put into operation what is known
as the ever normal granary" plan.
The Government would be authorized
to acquire basic agricultural commodi-
ties which have been pledged as Sc
curity for Government loans. and
with them to make payments lin kind
to producers who cooperate in the
adjustment programs.
Adequate reserves OF food and
fiber in this manner can be main
be smoothed out" the report on the
House bill stated.
Proposed Change Of Words.
Another provision designed to make
the original law more flexible is the
proposed substitution of the word
adjustment" for reduction" in regu-
lating the volume Of crop production
This. the committee explains, viii
enable production to be adjusted te
meet the domestic and foreign market
demand, instead of being based on the
question Of reduction alone.
The committee explains that thu
bill also recognizes the necessity Of
;nsuring that, as far as possible, ad'
| lustment of production and -Conse-
ouent price increases within the
United States, shall not operate Il
deprive American farmers of share
of foreign trade IN farm commodities
The bill authorizes the setting aside
! of 80 per cent of the annual receipt!
from customs duties, TO be available
to encourage expectation of basit
commodities by paying Dement'S o.
indemnifying losses in connection
with such expectation, and ~ pay
ments in connection with the pert o
production for domestic consumption
Since the farm population OF tn,
United States is roughly 30 per cen
of the total population, this provision
will make available for the benefi
of the farmer sum equivalent to hi
fair share of The tariff receipts tn,
House committee reported. "UpoI
the basis of the total customs receipts
durine the last three years, it IS an
ticipated that in the neighborhoot
of s10O 900 900 can annually be mad'
available for the purposes described
in the BILL
Parity Prices Standard.
Another amendment in the bill i
intended to give A. A A. oroade
standard for determining parity prices
The present method of calculation i
composed of an iLdeX of prices o
goods which farmers buy in relation
to the pre-war level. and does no
cover expenditures Tor taxes and deb
service.
"At the present time" the repor
continues, taxes Der acre and mort
gage interest per acre are probabl
about l60 to ITO per cent of the pre-
war level. The combination OF thes
two items, together with the inde
of prices paid by farmers, may be ex
pected to give parity standards ap
proximately s per cent higher than q
present"
1t is probable that a considerabl
part of the debate in the Senate wi
relate to proposed changes in th
licensing features.