Salt Lake Telegram | 1933-04-21 | Page 2 | Wallace Sees Need for Farm Price-Fixing

WALLACE SE SEES SES S NEED EED FOR FARM PRICE FIXING INFLATION TION NO NOi i BALANCE SAYS t CABINET MAN Secretary However Enthusiastic Enthusiastic Over Benefits L. L of Proposal I By Associated WASHINGTON WASHINGTON April 21 The 21 The Thel l lJ rIce fixing provisions of the farm bill still sUll are arc needed to restore agricultural commodities to their r a value despite inflation proposals pro pro- before congress Secretary of Agriculture Wallace feels fees ft As Wallace views it it inflation would d not qt properly effect a balance between the goods the farmer buys and those i s-he s he sells Wallace it was said today was enthusIastic en- en however about the benefits bene bene- fits which he expects expects' inflation to provide pro pro- vide the farmer ML t Since under inflation fixed charges ich as telephone rates railroad fares Mand and taxes would remain the same linn an iren increase in the price farmers re- re for their products necessarily I i t would give them a sound purchasing 11 power THEME EXPLAINED 4 The social theme of inflation it Jt was explained d is aimed Rimed at boosting commodity com corn prices all along the line without with with- fOUt out prejudicial favor avor to farm prod prod- y While it will wm probably establish etter bb values of crop issue It also will Braise raise prices of Industrial products so 4 that that the actual balance between the two will remain virtually the same as under tinder deflated values fi Briefly the explanation of Wal- Wal 3 laces lace's sentiment toward effects of in in- f r Dilation laton upon the American farm V structure is thus derived 7 Suppose for Instance that the th of l ton Ion causes a rise in th price plows clothes or building materials Hypothetically i t it simultaneously will cause ause a rise in the price of wheat corn llor hOL hogs The farmer gets more money moncy sor his products but his purchasing power is little improved because the theAt thea At- At aprice price of his plow his clothes and andwood 1 wood f barn also have gone up leaving having c ving the relation between what he receives and what he pays about what tit now Is v For these reasons It was explained the artificial price raising provisions the farm bill still sUll are needed to ef- ef L the proper balance The administration admin admin- POI apparently intends that farm products shall bring a price greater in relation to articles bought than thin the values established by Inflation I f LEVEL SEEN SEEN IA This This might mean that the fair value f. the bill blU arms aims to fix fo for I ral commodities would be Increased J beyond the previous pre- pre 1 to inflation Consequently proc proc- ji h taxes might be set at a n higher level Ir In his testimony before the senate tr agriculture committee In connection with ith the farm arm bill bilI Wallace said in I rt MI ai-MI think we will all agree acrel that If it an I increase In currency or credit brought bout about a rise In the general price level the farmer would be beneficially aff affected affected af- af f because of the light lightening ning of all alII fiXed charges the debt load interest tax load railroad rates utility and the buying of the products ot the part of city labor which has come down i It xo Fo o that extent the farmer undoubtedly un un- would be beneficially acted af af- r by a higher price level 1