Evening star., 1939-05-11

Ills
can be drawn David Lawrence.
from the fact that whereas Presi-
dent Roosevelt asked for agriculture
only $841 100000, the Senate is
willing and anxious to grant $l,216,-
100000 for the coming fiscal year.
With hardly any debate and little
opposition, and only a voice ap-
proval in which the noes were
inaudible, the big appropriation was
voted in the Senate. The much
talked-of economy vanished. Only
when it was a matter of cutting
down the w. P. A. by the relatively
small sum of $5O,00O,0O0 has the
Senate bestirred itself this session.
The farm vote evidently is powerful
enough to get unlimited sums. Other
pressure groups will be tempted to
follow suit.
To spend $1,216o 100000 for agri-
culture is an unprecedented event,
especially at time when the rec
ords show that last year 10 States
had higher purchasing power for
their farm income than they did IN
1929 and many other States had
within a few points of the same pur-
chasing power they had in 1929.
This, of course, included Govern
ment checks and Mr.. Roosevelt did
not see any need for the increase
this year.
S225 ,0O0, 900 for Parity"
How is the Sl,216,000000 to be
spent? About 1925 100000 is to go
for so-called parity income pay
ments This item was in the appro-
priation last year but omitted by the
President this time. Its purpose is
to subsidize the farmers income so
that he can have as much for his
production as can be exchanged for
the city mans dollar in manufac-
tured goods.
Another S113,00O000 is to 60 for
so-called surplus crop removal which
is another subsidy to be used in bol-
stering prices. 1t is used for dump
ing" abroad and for supporting
domestic prices, and in this program
there is to be an experiment to AID
grocers through subsidizing the sale
of farm products at retail.
Then there's about S500,0000 900 for
"soil conservation, which is just
about the same thing as the old
A. A. A. program of production con-
troll. The money is given for the
purpose of cutting production. The
rest of the appropriation is for the
regular activities of the Department
of Agriculture, which have ex-
panded greatly in recent years.
On top of the s1216 900, 900 there's
another Sl00, 100000 which the farm
ers get out of the customs receipts
and this is used for surplus removal.
In addition to all this are the Com
modify Credit Corp. loans involving
more than S500,0O0,000, the losses on
which are conjectural, though some
estimates place this years loss as
at a minimum of S75,0000 900.
G. O. P. Escapes Onus.
The country has been talking
about economy and in the last elec-
tions a definite trend in that direc-
ton was visible. But now the Re-
publicans evidently feel that there
Is no harm in going along with the
Democrats, particularly when there
isn't any record vote taken and
when the responsibility is fixed on
the majority party anyhow. In other
words, Republicans aren't worrying
about the discontinue of the Demo-
Gratis. This is typical party politics
and meanwhile the businesses OF the
country are wondering when it will
all end and how. in the face OF
such huge expenditures, there can
ever be any tax relief.
Reports are heard on Capitol Hill
that processing tax may be re-
vived. This meant an increased
price to the consumer and stirred
up much opposition in the early
days of the administration. Theo-
retically, the processing tax is a
logical development of the present
situation. but as another tax on
consumption it Will be added to the
price and may cut down the amount
consumed.
In the old days, the rest of the
world absorbed Americas surplus
farm production and there was no
need for subsidies. Today, with
world economic conditions disturbed
and everybody in Europe preparing
for war, and the United States ap-
parently committed to policy of
doing nothing about it, the markets
that might be restored seem further
and further away AS between an
active policy of international CO.
operation to prevent war, and a
policy of isolation and domestic
allotment with subsidies and arti-
fetal prices, the Congress is choos-
ing the latter, irrespective of the