xt7wwp9t2q46_77 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/mets.xml https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61.dao.xml American Liberty League 37 linear feet archival material English University of Kentucky This digital resource may be freely searched and displayed.  Permission must be received for subsequent distribution in print or electronically.  Physical rights are retained by the owning repository.  Copyright is retained in accordance with U. S. copyright laws.  For information about permissions to reproduce or publish, contact the Special Collections Research Center. Jouett Shouse Collection (American Liberty League Pamphlets), No. 80 "The AAA And Our Form Of Government: An Analysis of a Vicious Combination of Fascism, Socialism and Communism Which Cannot Be Harmonized with the Basic Principles of Constitutional Government in the United States," December 2, 1935 text No. 80 "The AAA And Our Form Of Government: An Analysis of a Vicious Combination of Fascism, Socialism and Communism Which Cannot Be Harmonized with the Basic Principles of Constitutional Government in the United States," December 2, 1935 2013 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61/59m61_80/Am_Lib_Leag_80_001/Am_Lib_Leag_80_001.pdf section false xt7wwp9t2q46_77 xt7wwp9t2q46 Supreme Court continued its course there would
be a return to "the old policy that every farmer * * .
was . . . free to raise whatever and as much of
an cro as he pleased.’
llllhy Ighould not the farmer be "free to raise THE AAA    
whatever and as much of any crop as he
leased"?
p When government dictates to the farmer the F  OF
conditions under which he is permitted to try
to earn a living, the farmer is reduced to a con-  
dition bordering closely upon peasantry or serf-
dom. Needless to say that is a condition re-
pugnant to every instinct of this great body of
self-reliant citizens——and equally repugnant to
American traditions of constitutional self-gov-
ernment. * * *
No one knows what might be the final pattern
of the American Government if the present eco-
nomic planners were able fully to realize their
objectives. The process of change has gone far
enough to make it plain that the principles of _ _ _ _ _
centralized control and subordination of the AnAnalyslsvfaV1¢1¤¤SC¤mb1¤¤t1°¤
rights and liberties of individuals to thlel fancied , Of Fascism, Sgcialism and Commu-
needs of the Government, which are c aracter- . . _
istic of present regimes in Russia, Germany and msm which Carmoti Bc Harinon
Italy, would be dominant. · ized with the Basic Principles
The people of the United States do not want , of Constitutional Govern,
Communism, National Socialism or Fascism. , . d S
Neither of the major parties dares to put any mcnt m thc Umts tates
of these principles in its platform. Some of them
were a part of the Socialist platform which was
overwhelmingly rejected by the people. The
American system of government has not broken
down. Under it the people of this country have
enjoyed privileges and a standard of living such
as have prevailed nowhere else, even in recent ,1~"· €`.q
trying years. Readjustments to meet changing V   d' _
conditions are necessary. But the only hope for ,.   .,,
the future lies in adherence to the broad lines of A Tv  
the American system. If this course is followed, _ `°·P;·Y U Lev
the Federal Government and the states will re- "
tain sovereignty in their respective fields, demo-
cratic principles will prevail through mainte- I
nance unimpaired of the powers and responsi-
bilities of the Congress and individual citizens
will enjoy the liberties guaranteed to them under
the Constitution. ·
AMERICAN LIBERTY LEAGUE
National Headquarters
NATIONAL PRESS BUILDING
‘ WASHINGTON, D. C.
16 * *
Document No. 8o
December, 1935

 The   and Our Fgrm of . of Agriculture both with respect to control of
V agriculture and imposition of processing taxes
GOV€fHH1€Dt ggnores the tseparatiog of powers of the Federal
* olvegirrggxalaénong   ree coordinate branches.
. xpansion of control not onl over
Existing regimentation of the farmers of the 3 additional agricultural products but overycom—
United States constitutes a definite challenge to petitive commodities, points increasingly toward
the American form of government. Control of ~ a condition wherein individual initiative, which
agriculture and of a large segment of related in- P has given the United States a dominant position
dustry is in conflict with democratic principles 3 in industry, is curbed on every hand.
and with fundamental theories under the COD- l 5. "Orders" to processors and handlers Sub_
stitution. The progressive tightening and expan- l stituted in the amended law for licenses, form
sion of regulation, inevitably characteristic of 3 with marketing agreements a Fascist method of
economic planning, is a vicious combination of controlling agriculture and related industry.
Fascism, Socialism and_ Communism. 3 6_ privac Of farmers and Of .
The P1;6S1d6¤t d6S61`1b6S tl16_ N6? D68»l P1`0· `   farm produiits is invaded in vildliaiijciii lcifngiialig
gram as the DGW 01`1S10¤ _1¤ th? lngnoot basis for a permanent system of control. The
court on the constitutional qucSt10nS 1HV0lV€d· l President’s statement of October 25, 1935, settles
The amendments to the act, approved by the any deuht eh this point
Congress at the instance of the administration *¢But it hever Wes the idea ef the meh who
in August, 1935, are 1¤t€I} The original act named seven basic agricul-
tions." Under Secretary Tugwell at Los Angeles tural commodities, wheat, cotton, field corn,
on October 28, 1935, asserted that “we must hogs, rice, tobacco and milk and its products.
make irrevocable political commitment to (l1S· I Now there are fifteen, the eight added in sub-
ciplined democracy, to calculated change of in- sequent lawg being rye, flax, barley, grain sor-
stitutions whenever that may be necessary." The ghums, cattle, sugar beets and sugarcane, peanuts
nation now is witnessing, Mr. Tugwell Said, "the and potatoes. Half-way measures have proved
death struggle of industrial autocracy and the impractical with a consequent demand for an
birth of democratic discipline? extension of control. "Economic planning," once
commenced, must gg gn and on. h·
‘ Benefits are inten e to represent t e approxi-
Commodlty B°“°f`tS mate difference between market prices and what
Theoretically, the system of ag1'i0\1lt\11`a1_b€¤e· is called the fair exchange value or parity price.
its for adjustment of acreage or produotloll 1S The goal thus to be achieved is a purchasing
VOll1Ilt&I‘y. A farmer need DOT, €I1t€I‘ into a COI1- pgwey gf a unit gf 3, farm egmmgdity in terms gf
tract unless he desires. However, if he wants to industrial goods equal to that in a pre—war or
obtain the cash benefits he must sign a contract post-war base period.
under which he agrees to forego any exercise of Besides payments for adjustment of acreage
his independent judgment as to the amount of or production the AAA under the amended act
a farm commodity to be produced for market. may allow benefits in return for removal of sur-
- The contract thus is the means of the regimenta- plus, for expansion of domestic or foreign
. tion of agriculture at the instance of bureaucrats markets and for production under a domestic
in Washington. allotment. Funds available from processing
The original act authorized payments by the taxes and previous appropriations are supple-.
Secretary of Agriculture for "reduction in the mentecl by the appropriation of 30 per cent of
acreage or reduction in the production for receipts from customs duties. The effect is to
market, or both, of any basic agricultural com- withdraw approximately $100,000,000 heretofore
modity, through agreements with producers or used for general expenditures of the Government
by other voluntary methods, and to provide for _ and to increase the burden upon the taxpayers
rental or benefit payments in connection there- ‘ by that much.
with or upon that part of the production of any
basic, agricultural commodity required for do- Processing Taxes
mestic consumption, in such amounts as the .
Secretary deems fair and reasonable." Thus, in Thus far processing taxes have been levied or
these broad terms, the act delegated authority specifically authorized on cotton, tobacco, hogs,
to the Secretary of Agriculture to devise the corn, wheat, peanuts, sugar, rice, rye and barley.
scheme, draw up the contracts, fix the rate of The taxes are intended to finance agricultural
benefits and impose conditions upon the farmers benefits paid to farmers on these particular
participating. In the amended act a mass of p commodities.
verbiage is substituted with a view to prescrib- Under the amended act the processing taxes
ing principles to govern the action of the Secre- _ are authorized at the rates previously established
tary of Agriculture in the hope of avoiding a by the Secretary of Agriculture. In this manner
verdict of unconstitutionality. A 7
6

 it is attempted to avoid an adverse court deci- Marketing Agreements and "Orclers"
sion on grounds of an undue delegation of _ _ _ _
authority. The amended act also attempts to The orlglnel eet eutllorlzed merlfetlng eSree‘
  the alctlgns taken under the Orlgina,1 II1€Dl}S and lIC€I1S€S IH COIlIl€Cb10Il Wlth Girly 3gI`l.·
rneosure . cultural commodity or product thereof. The
By means of the processing tex the AAA ex- amended law authorizes marketing agreements
tends its control over the processing industries for eny cammadlty hut Permlte f‘<>rdarS"_ ta en'
such as meat packers, flour millers, cotton tex- loree them only ln the oeee ol mllk end lte Pro"
tile manufacturers and tobacco manufacturers. duotei lrulte end tbelr Produote» Peoenew walnuts,
The tax adds to the costs of these industries and ollYee» tobeeoo end lte Produote» Vegeteblee end
must be passed on to consumers or absorbed. If tllelr Produotei eoy‘beenS end neyel Stores (roeln
passed on to consumers in the case of a com- end turpentlnelgiqrderen lney be lmlloeed upon
modity for which there are substitutes, it means 4a Preeeeeere> eeeoeletlone or Produoere end othere
a reduction in volume of sales which in turn re-   Gflgagéd lll the handlmg of the specified products,
acts against the farmer. The amended law sets ° Eheee sraara belng deelgneted ln the act as
up restrictions which will make it increasingly   hendlel`e· H ,, _
difficult for processors to obtain refunds in the   _ Through the orderei whloll ere _not eubeten·
event the tex is held to be uncOnStit}utiOna1• tially different from the licenses which were held
_ The protection to the consumer in the amended to ha mvalld rrreelrerel deerererre rrr the layer
act is somewhat less than in the original law. Federal eeerre¤ rr re made peeerble ee eerrrrel
Under the revised measure there is a negative every Step ln the Preduetlon end dletrlbutlon af
provision dsnthorizing no setlonv tendlng to the specified agricultural products from the farm
keep prices to farmers at a level above the fair ta the eenelllnen lt le e  eeelet eyetem af oon·
exchange value or parity price. The original rrel under Whrerb luer as m. l’°elY» the herrdlere
law contained an afhrmative mandate for a revi- am aaamally grvee e Veree rrr the determmetlen
sion of prices for the protection of the consumer. at peheree but ere perrerreee rr the Geveremerre
wishes to override their recommendations.
· Handlers of at least 50 per cent of the volume
Taxes On Compctmg Goods of the commodity affected must sign a market-
The taxes imposed upon commodities which lng egreemenb end two tlllrde hy aumhar ol`
compete with those upon which processing taxes Volume ol the Produoere muet approve leeuenoe
have been levied furnish an exornplo of the of an "order" before it can be issued. However,
never-ending chain of control set up under the ll llendlere af 5h par oent of the Volume do not
AAA. The law authorizes the imposition of elgni hut two tnlrde af the Produoere hy number
compensating taxes upon competing products or Volume are favorable, "orders" may be issued
when either producers or processors of a basic wlth the ebbroyel ol the Preeldent The ProVl·
farm commodity have been effected sdversely sion with respect to handlers thus is a mere ges-
by Shiite in consumption The compensating ture of conformance to democratic principles.
taxes are levied upon the first processing of the A dleeentlng Prodlleer ar handler is Powerleee
competing commodity with the purpose gf off- under the system of marketing agreements and
setting any advantage such commodity may __ "‘orders,"assum1ng that the restrictions imposed
have gained from the higher costs of the farm oen ha enl'oroed· Only the oluetee nxed in the
product. "orders" can reach the market. All producers
The Secretary of Agriculture imposed o coin_ and handlers thus are completely under control.
pensating tax, effective November 1, 1935, OH ,. The "orders" for commodities other than milk
reinforced paper tape, Users of cotton tape and its products may contain terms and condi-
tuI`Il€d to p&p€]‘ t,8,p€ when prices gf the former IClOI].S fOr   the total quantity   may be
went op, due to the processing rss. other paper marketed hy all handlers, allattlas tha quantity
products have similarly been subject to corn- each handler may purchase or handle on behalf
pensating taxes. of any and all producers, allotting the quantity
For s time s compensating tax wss levied os each handler may market caatralllas and dis-
jute until farmers complained of the higher cost posing af SurPlue» eetebllelllng raaarva Poole» Pro·
of burlap bags. . hibiting unfair competition and unfair trade
practices, posting of sale prices by handlers and
3 9

 giildoizreiidetidig feelin iheielirztiiiyle itzgggglnctg $1;;; the businese1tr_ausaction is within the scope of
include the classifying of mhk andl the fixing of Federal ent emey‘ _
uniform minimum prices to e pai y handlers. · .
The program thus contemplates not merely con- Peneltles _ _
trol of production but actual price fixing. Severe penalties are provided for_v1olat1on of
While nominally the system of marketing "orders" issued under broad delegation of power
agreements and "orders" applies only to such to the Secretary of Agriculture. `
transactions as are within the scope of authority Any handler subject to an "order" or any
of the Federal Government, the amended act ofiicer, director, agent or employee of such
broadens the applicability to commodities "in handler who violates any of its provisions shall,
the current of interstate or foreign commerce, or upon conviction, be lined not less than $50 or
which directly burdens, obstructs, or affects, i more than $500 for oacn Suqh Vlolarlon· Each
interstate or fgreign (3()mmgr(;g_" Under the day Clu1”lI1g which the Y10l&ilZ1OI1 COIIUIIUBS shall
original act licenses might be issued in the case be deemed a Sonaracc V1olal¤lon·
of commodities "in the current of interstate or _
foreign commerce." Much of the milk which is COmPulS0YY Control Acts
r>r<>i>¤S€<¢l l<>,}>€ ¤<>¤§§<2ll€d under marketing asm- When the President as the nemeeretae nem-
mente and Orders le net mvolved In lneereeeee inee outlined his ideas for agricultural relief in
eemmeree a speech at Topeka, Kansas, in Selnember, 1932,
he asserted that "the plan must e, insofar as
B00kS and Records possible, voluntary." The fiction of voluntary
The producers end handlers whe are brought §§f§§nQi@§;een‘f§h“Qi§1§§t‘; E; de, lege Yglehgeingee
under control through marketing egreemenee end ulsoi control acts reliatin tgpcotton tobacco
uerderen must threw their b¤¤kS Open ee the End pertatoes In each of ehese three ,1aws the
agents ef the AAA' The amended law nee e new power of taxation is used to control production
eeelnen prevlding thee en pernee to any merkee The amount to be marketed by each producer ie
mg agreement end en handlers Sub-ieee ee nn definitely under the control of the AAA bureau-
eerdern Shell furmeh the Seereeery ef Agrienn crac Freedom of individuals in farm mana e-
ture with Such infermenen as he nnde to be ment,-is severely restricted Constitutionalit gof
necessary to enable him to ascertain and deter- all three laws is eeiienely in doubt ‘ y
mine the extent to which such agreement or The Bankhead Cotton Controi Aet and the
(feeder,) has been Carried ene er nee edeellndnnd Kerr Tobacco Control Act were extended for two
the declared policy of the act, and to determine additional eeaeene in the amendments to the
whether or not there has been any abuse of the Agricultural Adjugtmgnt Att gpprgvgd in Au-
Prlyllcgc of cxcmpfclono from antiarust laWS· gust 1935 The Potato Act incorporated in the
F or fno Pnrnooc of aocorfalnlng fno corrccfncoa same law lis indefinite as tolits eriod of o era-
· of reports thus made, the Secretary is authorized tion being dependent upon a neaierity Veftie ef
no oxnnnnc Such b¤<>kS, papers, rocordo, ooploo of producers in advance of each season after 1936.
lncornc fnx rcPorfo» accounts, corrccpondoncci ·;> Under the Cotton Control Act the Secretary
connro~cf°S> d<>¤¤m¤¤tS, or momorancla, as he of Agriculture fixes the maximum amount of
deems relevant- Dncllmonfo may be demanded cotton which may be marketed tax-free The
not only from Parflco to marketing ag1`€€n1€nl>S total is apportioned among states counties and
end dem nnndlern but n·lSo_ from any P€1`S0n le individual farmers. Atax is impoeed amounting
rllrccfly or lnrllrccfly controlling Such a party or to half the average market price of cotton as
handler or from any Subsidiary of any such computed by the Secretary. Tax—exemption cer-
party, handler or person. tificates are issued to the amount of the quotas
Tnc PoYV€r_fln1S g1V€n to S€a1‘0h the papers of The Tobacco Control Act imposes a tax equal
. at milk disitributor operating entirely within a to a maximum of one third of the selling price
ia elisba agrant overstepping of the constitu- in the. first sale of tobacco. Producers contract-
(iiona ounds of the authority of the Federal mg with the Secretary concerning tobacco pro-
overnment._ It ·1S an unwarranted encroach- duction receive tax-exemption warrants for
ment upon liberties of individuals even when quotas allotted to them.

 ’ ' xt n ive
Under the Potato Act a tax of 45 cents per bsgilllgiengcogiligiglglgjhls meg iiggegleiogilhwe nioiioy,
bushel applies on the first sale of all potatoes, issue bonds dshsntniss and mortgages. It may
an exemption being granted up to the amount of loan mone}; buy discount soil rediscount oi.
quotas. Regulations for issuance of permits and Othsiwiss dsal in’notos aooontahoos Waiohonso
for stamping of packages must be complied with isssints and othsi. sviélsnoos of doot It may
without exception but the quotas for those who purchasé oi. lease mal ostato anywhoio in tho
have raised heretofore less than five bushels Unitsd Statos it may maintain Omces not only
eeeeee be eedeeed- The eeeeeieer ef Ase1e¤1— anywhere inthe unites sales but in any 101-
ture determines the total to be marketed tax- eign Countryi
free by states, counties and individual farmers. There annoais to be no limit to tho ohaiaotoi.
Purchasers as well as sellers of potatoes lacking of business enterprises in which tho corporation
the necessary stamps or improperly packaged ’ may engage. it nood make _no report to tho
are subject to fines and jail sentences. Congress which apparently has no oontiol ovoi.
The authority conferred upon the Secretary of its activities- All oi this Was nlannod moto than
Agriculture to make allotments to states, coun- two ycalrs ago_
ties and individuals offers an opportunity for ` Anything so Sooialistio as tho Go-`,oi~nmont_
political favoritism. This is one of the dangers Owned ontorpiisos Whioh might be lannohod by
:)1;H§i“15 Veetmg ef breed Pewere m ee exeeutwe this corléoration lat the instance of the AAA
The eempuieew eentrei eeee eenetiiute resi-   lies nlilgleiileaiielisirei gilsgle/greliiieeeittgnfieile
mentation of agriculture comparable to that defy tho Conotitntion_
which accctmpaniasfgoonolmic lplanning in Euro-
pean coun ries. 1 e t e o jective in such a
country as Russia may be to raise more rather Refeeeede
thanless food, in both instances the lives and gllicials of tho AAA ropoatodly rotor to tho
8lCl]1V1l31€S of f81I`IIl€I`S 2LI‘€ I‘€gl1l8.ll€d by l]l'1€ C€Ill3I'8,l ygfgygndg ggndugiggd under the terms gf the vg,-
government. _ rioiusnagrigulttllral laws as proof that the "new
or er is ase on emocratic principles.
Sgeiglfstig Enterprises The questions relating to continuance of ad-
A   seas a nnoun cement as of as t%i°;?ii§lt0pi3$.’§?§?§1£§3’§1§é‘§§ §?,al’§1€€i.’$2d°€h§$S£
U`e»11Sfe1` ef the Federal SUYPIUS Relief C01`P01`e‘ would be surprising indeed if the results were
tion from the Federal Emergency Relief Admin- othsi. than isvotshis Furthermore thmu h th
istration to the Agricultural Adjustment Admin- machines, mVid€d` b t ’ t g f B
istration and a change in its name to the Federal -tt Y p d t Y fc€i?nXAggen S’ erm
Surplus Commodities Corporation. This is one giemim iles ee egen S .e . e . ’ ee Well ee
Of the Corporations formed under the isws Of e ree 1str1but1onfac1l1t1es available for Gov-
Delaware with power to do many things entirely ernment hteretm`e’. the AAA hee beee able ee
outside of any authority under Federal laws. It demmeee elle e1eeee¤e- Wltheue e tremeneeue
is proposed to use the corporation chiefly for the _ feed me eediee ef lee peeeieem eeuld possibly
purchgigg spd disposal oi surplus farm products. *1 reach the farmers with effective arguments as to
1 Examination of the charter of the Federal edveree eeenemie e011Seq11e¤0€S·
Surplus Relief Corporation as filed in Delaware A f3V01‘3ble V0te for continuance of the Bank-
in November, 1933, discloses authority to con- ~» head Cotton Control Act was assured when the
duct an amazing variety of Socialistic enter- President announced support of amendments ex-
prises. em tin small farmers rodu in
The charter authorizes the corporation to pur- twd) ballees each. P C g not more than
chase and sell all_ sorts of agricultural com- When Hitler held an election after suppressing
mp%1’01§S, te fiingage 111 any §e'¤1V1’¤Y il} G0¤11e¢’§10H all political parties other than the Nazi Party,
Wie Je. e pre ueelelh .°e"Ymg> S}}1PPmg> St°*'}ng» the resulting vote of confidence was a foregone
exporting, warehousing, handling, preparing 1 l · I i .
manufacturing, processing and marketing of botli gl£;i;S10n` `d t Woucl be elmtjigge difficult ee
atgricultural and other commodities and products an e verse V0 eign ee eefeeeedem-
ereo .
12 l

 · commendable, shock-absorbing features of the easy,
Esonomle Egccts natural readjustments of our lneconomic life.
· · "Will Mr. Wallace ermit t e western range man
Th? underlymg purpose of the eheese 1-n the and the corn-belt fegder to hold his business by
Antgmcan form of government 1S.tO pernilt ex" meeting this southern expansion? The past history
pommontatlon Wlth the ooonomlo thoomos of of the AAA, as well as its uncertain future, poses
those responsible for the "n€W Order',) Those the I18g2,l§lV€ &1'1SW€I'. To do SO IIIGBIHS defeat of the
theories, involving a tyrannically controlled whole scheme. The outcome must be mms aud
production, are inconsistent with the freedom more control. Already his machinery for handling
Ch8»I`3·Ct€I‘lStlC of AII1€I‘iC8,I1 iI'lStitl1tiO1‘1S. There- the situation €X1StS tllI‘0Ugh the Oiilililii zdlustgliglt
f0I`€, if they are to be tried, our governmental contracts extendei to   Wcirgsm 1`¤;¤%§Btc;€;&i kme
system must be changed. The results thus far sadism Of dmug t rs 1°’ mug
· · ing program, and the payment of bonuses, more
have shown the fallacy of these theories, lust as _ than 700 000 mrchmerr and farmers, m 24 range
economists Ofbtheh highest Standing here main" states signed a contract to ‘cooperate with further
tained Would o Io o oo·So· al ro rams ertainin to the adjustment or
J- Evetts Haley ef the University of T€Xa