Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1938-02-10
THE NATIONAL
GOVERNMENT
BY PAUL JOHN KvALE, M. C.


There are news stories too numer-
Gus to enumerate at the Capital while
this piece is being written. How
ever, the most important news to
we of the northwest is that after a
month of study and investigation the
conferees of the Senate and House
have concluded their report on the
farm bill which it had been hoped
would be enacted at the special ses-
sion before the beginning of this year.
In the compromise bill the con-
ferees have provided for the virtual
elimination of the lever normal gran
airy" feature and have made various
other changes. PARTY" prices for
farmers are retained as the stated
objective of the legislation, but soil
conservation funds provided do not
meet the parity goal which was aimed
at in the original bills. The conferees
suggested as move toward making
up the bills money shortage putting
processing tax" rider on the House
Revenue bill and it is understood that
such movement has been started.
You will recall that we reported
in this place sometime ago that Pres
ident Roosevelt is opposed to increas-
ing the legislation above present
$440, 100000 soil conservation OUTLAWS
unless additional taxes are provided.
Senator Pope of Idaho, one of the
conferees, said small excise taxes
might be proposed on the processing
of the major commodities, approx
mately one-third the amount of the
invalidated former processing tax
rates. He believes that the yield on
such an excise tax coupled with ap-
preparations carried in the bill would
assure parity payments. The bill
provides for parity payments to farm
ers if and when funds are made avail
able. The payments would be made
on basis of the difference between
theoretical parity and the actual price
of the commodity.
Providing crop-controlled programs
for each of the five major commod-
tiles, wheat, corn, rice, cotton, to-
bacco, the bill would permit impo-
sition of marketing quotas in the
present year on any of the crops ex-
cept rice. Wheat quotas could be
invoked this year only if parity pay
mentS were made.
The points at which marketing
quotas could be invoked were COM
promised on by the comforting Sena-
tors and House members between the
more drastic Senate provisions and
those of the House which were more
moderate. Members of the conference
committee cited as an example that
when supplies of wheat reached 940,-
100000 bushels the Secretary of Agri-
culture would proclaim surplus and
proclaim crop control quotas. These
quotas would have to be approved
by two-thirds of the wheat farmers
on referendum before they could
be enforced. The surplus point at
which such marketing quotas would
be proclaimed on corn is 2,700,000,0 900
bushels. Penalties for sales over
quotas were cut down far below the
fine provided in the original Senate
draft of the bill but were higher than
House penalties. The penalty for
over-quota wheat and corn sales
would be Is cents a bushel.
An exceptionally interesting fea-
ture of the conference report is the
recommendation of method for grad
uated increases in soil conservation
benefit payments to farmers receiv-
ing 5000 or less in benefit checks or
maximum of $4,000 on all indi-
vidual benefit payments. The men,
bers of the conference committee are
understood to believe that such a new
scale would mean larger benefit pay
ments to about IS per cent of all
farmers, one-third of whom now are
receiving $40 or less. Ten per cent of
the total appropriations provided for
in the bill would be set aside for
these increases. Largest increases
under the proposed new scale would
go to the farmer receiving less than
$40 and would provide for increasing
his payments by about 40 per cent.
The report also recommends man.
datory commodity loans ranging from
So per cent to rs per cent of parity"
For instance corn loans would be
mandatory when the price falls below
rs per cent of parity and cotton
loans when the price falls to So per
cent. Rates would be left to the dis
erection of the Secretary of Agricul-
ture.
The House yesterday passed the
First Deficiency bill which provides
for an expenditure of $27, 1888 900.
The largest item in the bill was $19,-
100000 appropriated to meet losses
of the Federal Land Banks and the
Federal Farm Mortgage Corporation
because of reductions in farm mort
gage interest rates approved by the
last Congress. This was approved,
incidentally, over the veto of Presi-'
dent Roosevelt. Under the act Land
Bank interest rates were cut from an
average of per cent to 31a per cent
and Mortgage Corporation rates from
per cent to per cent.