Evening star., 1940-04-07
Congress Drafts $1,400,238,OOo
Cure for Ailing Agriculture
$50 New Farm Bills Fed in Capitol Hills Hopper
in Effort to Effect Solution After IN
Billions Expenditure
By Richard L. Stokes.

Under New Deal auspices, the Federal
Treasury has poured into the thirsty
sands Of the American farm problem a
deluge Of nearly seven and half billion
dollars, or one-fifth more than the Gov
ernment's total budgets, for every pur-
pose, during the corresponding seven-year
period Of 1911-17. The degree in which
this afiliction still Is deselating one
quarter Of the national life may be
judged from the fact that 80 Senate and
House subcommittees on agriculture are
struggling at present with 356 new farm
bills, while Federal agrarian expendi-
lures of all kinds, for the fiscal year 194O-
Al, promise to reach an aggregate of ST.
400, O,238, 900.
In arriving at this total it was found
once more that Government finances
may be devious as well as complex. A
simple taxpayer might fancy that the
whole terrain would be covered by the
regular appropriation bill for agriculture.
Instead. even hasty glance reveals that
generous bounties may lurk in various
special programs and in deficiency and
relief bills.
Miscalculating that Europe's conflict
would set farm income to within rs per
cent of parity with industrial income
President Roosevelt submitted to the
present Congress an agricultural budget
Of only $78S ,929514. With a flourish of
economy, the House slashed his estimate
to 1884 ,347 ,256-a sum which permanent
appropriations Of $106, ,554, ,085 and $5,497,-
$50 available from trust funds raise to
$746, ,426,301. The ante was boosted to
$1,034 1863 900 by the Senate, which voted
100000 for parity payments and
$85,0O0,000 for extensions of the food
stamp project of the Federal Surplus
Commodities Corp.
Accountancy Trick.
Invoking next ruse of accountancy to
place $90,000,000 outside the public debt,
the Senate authorized the Reconstruction
Finance Corp. to lend $4,000 900 to the
Farm Credit Administration for its ten
ancy program and 10000 900 to the
Rural Identification Administration. The
discordant views of the chambers, involv-
ing pagatelle of s31S0OO,O0O, are now
being harmonized in conference. To
whatever sum they agree upon must be
added $32 1925 900 of reappropriations
from unexpended balances.
There followed several items not in
cluded in the general agricultural bill.
The Secretary of the Treasury is directed
by statute to replenish the capital of the
oNonditu s~,,Ss> a.
falls below $loo,O00.0o0. Last year the
capital impairment was Sis, 1000 900.
Such losses In practice are covered by
discreet clause in one Of the deficiency
bills. Hearings began Monday on the
agricultural section of the emergency
relief bill. which includes an appropria-
ton for rural relief and rehabilitation.
This was sl6l 100000 for the fiscal year
1939-40
The only commodity dealt with so far
oy the Federal Crop Insurance Corp is
wheat. The cost of the program last year
was $500 900. A bill to extend the
insurance plan to cotton sponsored by
Senator Bankhead and Representative
Fulmer Democrat, of South Carolina,
PdSScu Vic CcIldCc ldSb SESSION., aIlQ mas
already run the gantlet of the House
Agriculture and Rules Committees. Since
the respective values of the wheat and
cotton crops in 1899 were s510,66 900 and
1904 900 600, it is estimated that the cost
of cotton insurance would be at least a
second $5,500,000.
y FOreclosed Farms.
Another special expense of $75,OOO,OO0
a year may be added in pursuance of
bill fathered by Representative Peter
son, Democrat, of Georgia. His theory
is that the Government, instead of TAX
ing possession Of farms through foreclos-
ure, should step in and purchase them
when they are in danger of being FORE
closed. He aspires to fashion a new
frontier" by declaring lands thus
acquired to be public domain, and throw
ing them open to entry by farm families
under the homestead laws. His resolu-
ton was reported favorably by the House
Public Lands Committee; whereupon
the Rules Committee, with uncommon
alacrity, hastened to clear the way for its
early appearance on the floor.
Then there Is an amendment to the