McNary-Haugen Bill

By: Anna S.

Description

Right after the war, farmers experienced a short period of prosperity, as crop prices were high and they had wide markets in Europe. This ended in the 1920's when those markets closed off, and prices dropped significantly. This bill was proposed in response to the plight of the farmers. It proposed establishing a federal farm board, which would buy crop surpluses from the farmers at pre-war prices. The farmers would be charged fees if the government suffered any losses through the process. The initial bill did not get support from the south, and was re-crafted in 1927. This appealed to cotton and tobacco producers, and it gained the needed support from the south. It was passed by Congress, but vetoed twice by president Coolidge.
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Significance

While the bill was passed in Congress, it did not gain enough support to override president Coolidge’s veto. Coolidge believed that it would discourage growth in agricultural industries not protected by the bill, while expressing concern about government fixed pricing. Although the bill did not have much success, it demonstrated how little government protection the farmers received, as compared to other industries. However, it in part led to measures passed to improve agricultural conditions during Hoover’s presidency, as a few of its concepts were later implemented in separate measures passed by him.

Sources

"McNary-Haugen Bill (1924, 1928)." Whatwhenhow RSS. Web. 19 Mar. 2015.

"McNary-Haugen Farm Relief Bill." McNary-Haugen Farm Relief Bill. Web. 19 Mar. 2015.