Evening star., 1940-02-15
Wallace Says Farm
Income Must Rise
To Meet War Strain
Certificate System Of
Processing Taxes
Held Best Way
~ the Associated Press.

~ TINS Ak8ocaete0 Tre16.
Secretary Wallace told the House
Agriculture Committee today that
his Income certificate" system of
processing taxes offered the best
possible way to enable farmers to
Withstand the stresses Of the
present war;"
Indeed, he said, the national vel
fare requires Congress to increase
farm income.
Secretary Wallace recommended
the certificate plan for boosting the
cash yield for products of such crops
as cotton, wheat, tobacco, rice,
prunes and raisins.
For certain other crops, such as
corn, which do not pass through q
centralized manufacturing process,
he recommended increased Govern
ment appropriations for benefit
payments.
Four Alternative Methods.
The Secretary outlined four al
Tentative methods for increasing
farm income:
Increased appropriations for sub
sides, price-fixing, Government
loans that would peg commodity
prices at higher levels and the
marketing certificate plan.
AS have been able to determine.
the marketing certificate approach
Is clearly superior"
Secretary Wallace said some per-
sons had believed that the war
would result in q substantial in
crease in farm prices and thereby
produce at least temporary solu-
ton Of the farm problem.
But agriculture is not profiting
from the war in Europe, and is not
likely to profit at any time in the
near future. And for some groups
Of producers, the war has been an
economic calamity. The net
effect Of the war on agriculture has
been to shut OF a large part Of the
world market for our farm prod
ucts 80 the war is likely to make
farm programs for the export crops
more necessary rather than less
necessary"
Administration Held Simple.
A marketing certificate plan, Sec
retary Wallace said, could be ad-
ministered simply.
First we would allot market
ing certificates to farmers who CO.
operate in production adjustment
and soil conservation. in such
amounts and having such values
as would be necessary to cover their
allotted normal production and as
sure them an income equivalent to
parity prices on the domestically-
consumed portion Of their crops.
Second, We would require manu.
facturers and importers, upon the
sale of finished products, to acquire
the certificates, in amounts which
would assure a market for the entire
supply, and return them to the
Government. No certificates would
be required from manufacturers on
sales for export. x
And third, We would establish a
Government revolving pool to pur-
chase certificates from farmers and
sell them to manufacturers when
ever necessary in order not only to
maintain the market price of the
certificates at their face value but
also to make buying and selling q
convenient operation and to assure
that an adequate supply of certifi-
Gates would be available for the
needs of manufacturers and i'm
porters at all times"
Insurance Bill Approved.
The committee approved legisla-
ton yesterday to insure farm tenant
mortgages.
The measure, similar to the Fed
eral Housing Authority program,
was approved by the Senate last
year in slightly different form.
1t would authorize the Secretary
Of Agriculture to use the fund for
five years and would require CON-
gress to appropriate amounts equal
to any losses the program might
incur.
The committee also approved bill
making permanent the 81 per cent
interest rate on Federal Land Bark
and Land Bank commissioner loans.
The rate might be increased after
next Jlllv 1. Under nresent law