Show FARM AID PLAN OF ROOSEVELT HIGHLY Y PRAISED I Professor r fessor Declares Allotment Proposal Is Best Yet Offered I i By OF Associated Press PHILADELPHIA Dec Dee 6 6 Dr Edward Edward Ed Ed- ward vard S S. S Mead professor of corporation corpora- corpora tion Ion finance of the University of Pennsylvania Pennsylvania Penn Ienn- sylvania to told d the Eugin Engineers ers club today today to to- day that the voluntary allotment pl plan lan n which represents President elect t Roosevelt's ide ideas s of effective farm relief re- re lief offers the best method immediate- immediate y available to bring the country out of the business depression The voluntary allotment plan said Dr Mead Mend aims to restore farm prices at ot least to the thc levels of 1929 Since that time the gross income of American farmers with the fall tall in farm arm prices prices has declined more than four billion dollars and the business produced by the thc expenditure of that four our billion dollars in the various channels into which the farmers farmer's money goes has declined by several times that amount Every industry and business i Iq the United State States is suffering from the shrinkage of farm p purchasing r asi g power The plan is in substance first the levy of ot an excise tax upon the consumers con sumers of food and other farm products prod prod- ucla a tax which will be paid in the first instance by flour millers meat packers and cotton and toba tobacco co man man- This tax the manufacturers manufacturers manufacturers will shift to the consumer r by advancing his prices so that the tax will vill appear as an increased cost of living GO TO FARMER I Second the proceeds of this tax will be bc paid to the farmer fanner on condItion condition condition condi condI- tion that he reduces his planted acreage acreage acre acre- age of wheat corn tobacco cotton anc and other products and the number of his JUs breeding stock Those who do not reduce their production n will wll not share in the tax In return for a 3 reduction in his acreage fort for example the farmer fanner signing sign sign- ing lag up as s a cooperator in the plan will be paid by the government 40 cents a bushel and he lie will have In addition a higher price for each bushel of his reduced crop because the total wheat acreage will be re reo At present wheat is selling around 41 cents in Chicago The farm value is is' is not over 35 cents By the voluntary allotment plan the price would be advanced to 83 cents the Chicago price plus the tariff above tariff above this foreign imports would check the rise In addition the wheat grower will receive 40 cents per bushel from the government giving ElvIng him a total price of The application of this method of ot price raising will be c effective if generally gen gen- emIly introduced and if substantially all farmers cooperate in the plan plan to to tout put ut agriculture back on its 1929 level to o add several billion dollars to farm income WILL BE STIMULANT This measure as soon as the law lawis lawis laws is s passed even before it Is is' put Into operation in anticipation of a large increase in farm fann earnings will wIIl act as a powerful stimulant to American business a stimulant comparable to the he war buying of 1915 It will willave save ave thousands of country banks protect pro pro- farm mortgage investments sub sub- railway traffic and earnings stimulate immediately the lumber umber cemen cement agricultural machinery machin machin- ery Cry fertilizer automobile and gasoline gasoline gaso gaso- line linc industries all depressed by the withdrawal of farm arm demand By increasing increasing in in- creasing the farm demand for the products of these great industries the voluntary allotment pla pIa may be expected expected ex cx- to start a wave of buying which will vill sweep through every channel of business replacing depression with wartime prosperity Whether this will be permanent it itis itis its is s impossible to predict If the plan plans is s made permanent the farmers farmer's benefits bene bene- fits Its will continue As for the city workers their cost of living will be substantially Increased by the plan and they must gain compensation for this his increased cost In larger arger employment employ ment and eventually in higher money wages For the immediate future however however how how- ever the voluntary allotment plan offers offers of of- fers a prompt way out of the busIness business busi bus ness depression |