Evening star., 1937-05-16
FLEXIBLE TARIFF
ARMA|DSTUD|ED
Program to Eliminate Bene-
tit Payments Discussed
by Officials.
BACKGROUND

O0Sh o4toCNA-
Since Supreme Court outldued
agricultural adjustment act IN
January, 1885, President Roosevelt
has sought permanent farm policy.
First erpedient ,Dds soil conserpu-
ton ldU. Second Dds crop in
surdnce. The first 1pas unsdtisfac-
tory, and meanwhile new problems
arose OF too sDitt commodity price
rise. Last tDeek President an
nounced he Ddnted these prices
stabilized. Present movement seeks
that end.
With President Roosevelt's aim of
eliminating wide price swings for
basic agricultural commodities In
mind, the drafters Of the admins
tration's new farm bill are giving
serious consideration to a flexible
tarin provision
Farm leaders met yesterday with
Agriculture Department of1cials to
discuss 4 new program which the
former expect will be offered to Con-
Rress next week. The program will
eliminate benefit payments if it oper-
ates As expected.
Secretary Wallace, H. R. Tolley,
A. A. A. chief, and other administra-
ton officers met with Edward 8.
ONeal, president of the American
Farm Bureau Federation, and other
farm organization representatives for
several hours.
Broadly, the new farm bill designed
to meet the Presidents wishes would
stabilize prices of wheat, cotton. meals
and other basic agricultural products
through tariff manipulation, Gov
ernment-f1nanced storage system and
modified form Of acreage control.
Would Establish Parity Level
The first step would be, it was
learned yesterday, to establish a parity
level Of prices for the various agricul-
tural commodities, that is, a level
that would equate the prices received
by the farmer with the prices of
goods that enter into his cost of liy-
ing. When the prices Of farm prod.
ucts rise above the parity level the
bars to importation would be let down
by lowering the tariff, and when prices
OF farm products drop below parity
level the barrier against foreign prod
ucts would be heightened by increas-
ing the tariff
Variations in domestic output OF
farm products, the other factor which
influences farm prices, the Presidents
advisers plan to regulate by putting
into ehect the ever-normal pranary
scheme OF Secretary Wallace. This
would be accomplished by Government
financing Of carryovers and acreage
control.
Whenever the domestic and world
carryover is excessive, the American
farmer would store a portion of his
crop IN Government warehouses, OBJ
tanning = cash advance against his
crop carryover. As q condition the
Government would require the farmer
receiving such an advance to curtail
acreage production the following year.
In the next lean year, the Government
would release the impounded COM
modities and lift the restriction on
acreage production
The President discussed in broad
outline the proposed plan to stabilize
commodity prices within limits during
his recent fishing trip in the Gull of
Mexico. He said he talked it over
with cattle men, cotton growers and
citrus fruit growers.
Runaway Prices Harmful.
All these producers, it was learned,
agreed with the President that run
away price rises in farm commodities
were as harmful as depressed prices
The cattle men, 1t was said, told him
that they were Is strongly opposed to
the sharp upward swings in prices
brought about by Spectators As he
was Too sharp an increase, they said,
shut Oh demand and brought growers
Is much grief as when the price of |
cattle dropped below the cost Of
production.
The President was told, according
to his associates, that the producers
Of the basic agricultural commodities
favored any control plan that would
keep prices ut relatively constant
level. Farmers, he was told, did not
want excessive profits one. season and
losses the next. What they did want
was . reasonable assured profit.
Speculation in farm commodities,
the President believes. is possible now
only because the supply IL uncon-