Evening star., 1939-01-02
Farm Officials Seek
Conservative Aid
For Crop Control
Help Needed in Fight
On Price-Fixine,
Export Plans
BY the Associated Press.

, Export Plons
BY the Associated Press
The administration will seek the
aid of conservative members of
Congress, officials said yesterday,
IN combating proposals to replace
the present crop control law with
prlce-flxing and export dumping
policies.
Because of billion dollar slump
In farm income last year and Demo-
cratic election reversals in the Mid
western wheat and corn belts, ad-
ministration leaders expressed the
opinion that strong fight would
be necessary to keep the new Con-
gress from discarding the New Deal
theory that production control
offers the best method of stabiliz-
ing agricultural prices.
They expect their strongest op-
position from advocates of so-called
domestic allotment" and price
liking proposals, which would elimi-
nate the present farm program and
its system of acreage allotments,
benefit payments, commodity loans
and marketing quotas.
Would Remove Restrictions.
These proposals, in general, would
remove all restrictions on produc-
ton and guarantee growers fixed
price on the domestically consumed
portion of their crops. The sur
plus would be sold abroad at what
ever prices it would bring.
Members of Congress who have
indicated they would demand repeal
OF present legislation include Sena-
tors Lee. Democrat of Oklahoma.
and Capper of Kansas, Borah of
Idaho and Frazier of North Dakota,
Republicans.
Administration leaders declared
price-flXing would require a vast
amount of governmental regula-
ton, licensing and RECOMMENDATION of
both farmers and middlemen. They
said it was on this ground that they
expected assistance from conServa-
tive legislators, particularly those
from the East.
Secretary of Agriculture Wallace
already has recommended to New
Deal spokesmen in both the House
and Senate that they round up
support for processing taxes. similar
to those levied by the first Agri-
culture Adjustment Act and out
lawed by the Supreme Court in
> 1895.
ToyeS tn provido funds
Such taxes would provide funds
for increased subsidy payments to
farmers cooperating with present
crop control programs officials
have estimated levies of this kind
on the processing Of wheat. corn.
cotton, tobacco and rice would make
1t possible for the Government to
pay subsidies totaling as much as
$1,000,000000 year when prices
were low. Subsidies authorized for
the 1889 crop year total about
$762 100000
Secretary Wallace has told
farmers that the present law. with
few minor amendments altering
administrative processes. would pro-
vide the best possible farm program
If supplemented with processing
taxes.
officials expressed belief that the
Supreme Court now would hold
processing taxes legal. They based
this opinion on the fact that the
tribunals membership has changed
since the 1886 decision was handed
down.
PriceFixing Bills.
Several ce-fiXing bills are eX-
pected to be introduced in the new
Congress. They may be divided into
four classes.
One would fix prices at levels that
would assure farmers the cost of pro-
ducing their crops, plus a profit.
Another would set the prices at a
parity level-the price goal of the
present farm law. parity prices are
those which give farm products pur-
chasing power, in the terms of nom
farm goods and services, equal to
that of the 1909-1914 periodD
A third class, instead of pegging
prices, would pay farmers subsidies
sufficient to bring receipts from do
mestically consumed portions of
crops up to the cost of production
plus profit level The fourth would
do the same thing, except that its
goal would be the parity level.
Dumping Difficult.
Cost-o of production prices, as esti-
mated by price-fixing advocates,
would be higher than parity prices.
All these proposals would leave
farmers free to produce all they de-
sired. Surpluses would be offered to
foreign nations at whatever prices
could be obtained. But administra-
ton leaders contended that, with
world competition increasing, and
with many nations moving toward
agricultural self -sufficiency, unlim-
tied dumping would be impossible
They declared that importing
countries would raise tariffs or would
exclude unwanted supplies by means
. of quotas and embargoes.
The administration leaders said
enactment of processing taxes would
help eliminate one of the major
causes of 40 per cent decrease in
cotton exports this season. Govern
ment loans to growers on cotton
) withheld from market, although
made at minimum rates permitted
under the farm law, have tended to
peg prices of American cotton above
' those of competing growths in for
eign markets.
Two-Price System Suggested.
Officials said that if Congress au-
thorized processing taxes for in
creased benefit payments to cotton
growers. Secretary Wallace would
recommend a reduced loan rate.
Expansion of cotton exports would
help reduce an already record sur
plus, they added.
Some efforts may be made in Con-
gress to establish domestic two
price system designed to encourage
increased consumption of surplus