The Washington times., 1936-01-08
AAA IS DEAD
AND HANEY
ISGLAD
BY. LEWIS HANEY
Professor Of Economics, New York

1t surely DenooVeS us all as
citizens to read and understand
the Supreme Courts decision on
the AAA. The Supreme Court is
o part of our government.
Fortunately this decision Is
unusually clear, and is obviously
written to explain the law In a
temperate and convincing way.
Almost at the beginning, 1t ex-
plains that the court does not
override Congress. The CON-
STITUTION is the supreme law
of the land, and the court funC-
tiOnS only when an act of Con-
gresS is challenged by q citizen.
Then 1t compares the act with
the provisions Of the COnstitu-
ton which are invoked, and
passes Judgment.
Our Constitution governs both
Congress and Court.
In. view of the Schechter case,
which declared NRA unconStitu-
tional, the New Dealers did not
try to defend the AAA under the
Commerce Clause" They argued
that this other scheme Of theirs
was constitutional on the follow
ing grounds: Cd It was for the
general welfare" (2) the process
ing taxes were merely revenue
measures, CD the control over
farm production was by vol.
untary" agreement, and "a the
Government has done some SINH.
lar things in the past.
Their whole case was based on
the notion that the Constitution
can be made to mean anything
that the politicians in power may
wish. They wanted a socialistic
scheme of control over production
by individual farmers, to be run
by the politicians at Washing
ton.
The Supreme Courts judgment
is against all this. The essence OF
it is that the words Of the Consti.
buttons have a definite meaning,
and that this fundamental part
of our Government prohibits con-
troll over individual production
within the several States.
It emphasizes that the New
Deal scheme Of RECOMMENDATION
cannot be enforced by subterfuge.
saying that the AAA measures
were "but means to an unconsti-
tutional end"
As to the general welfare"
plea, the Supreme Court holds
that the Federal Government at
washington, under the COnsti-
tuition has only certain enum-
Grated powers that have been
deIegated to It by the States.
But no power "tO regulate agri"
cultural production Is given, and
therefore legislation by Con-
greSs for that purpose Is forbid
dem"
AS to the power to tax, the
Court makes two points: ID The
taxation feature of AAA is just a
part of the scheme to control
agricultural production, and Cd
''The resort to the taxing power to
effectuate an end which Is not
legitimate, not within the scope Of
the Constitution, is obviously in
admissible.
This should put an end to Mr..
Roosevelt's idea that he can levy
any sort of a tax on us, and then
use the money we pay him, for
schemes of controlling our prodl1c-
ton.
The Court makes quick work OF
demolishing the specious argu-
ment that the AAA was voluntary.
It says "This is coercion by econo-
mic pressure" If the cotton
grower were to choose not to &C
cept the benefits" paid by the
AAA, he would receive less for his
crops, which might well mean f.
nancial ruin.
But even if the farmers acted
voluntarily, the arrangement
would be unconstitutional, be.
cause "it is a scheme for purchas-
ing with Federal funds submits
sion to Federal regulation Of q
subject reserved to the States.
The New Deal attorneys even
went so far as to claim that a
State could, if it desired, legislate
the AAA arrangement out Of its
bounds, and that the thing was
therefore not compulsory. This
fallacy the Court exposes, point
ing out that if State could re-
ject the act, the Federal Govern,
ment would be made subordinate
to the States.
So the AAA is as dead as the
NRA-long death to them both!
AS the court says, under such
scheme. any business group which
thought itself injured might de-
mand that a tax be laid on the
buyers of its products, and the
proceeds be given to it!
In order to understand the
spirit Of the court, read the fol-
lowing:
"The question is not what
power the Federal Government
ought TO have, but what pow.
ers have in fact been given by
the people. Courts are re-
luctant to adjudge any statute
in contravention Of (the funda-
mental law. But, under our
frame of government, no other
place is provided where the