BLOW TO NEW DEAL.

Horowhenua Chronicle, 27 November 1935, Page 7

BLOW TO NEW DEAL.

SUPREME COURT GRANTS INJUNCTION.

AGAINST AGRICULTURAL ADJUSTMENT ACT.

(By Telegraph-Press Assn.-Copyright) Received Tuesday, 9.50 p.m, WASHINGTON, Nov. 25

The Agricultural Adjustment Act, the legality of which suffered many reverses in the inferior Federal Courts, to-day received a serious setback before the Supreme Court when an injunction was granted a group of Louisiana rice millers denying the Government right to collect processing taxes on that commodity pending a Court review of the constitutionality of the Act. The amount directly involved, some 240,000 dollars representing September collections, will be deposited with an agent appointed by the Court.

The sum is not in itself important, but as a precedent threatens the financial structure of the Agricultural Adjustment Act and indirectly that of the Government itself, for undoubtedly other processors will seek similar injunctions from the Supreme Court.

Meanwhile the benefits to fanners must be increasingly paid from the general Treasury funds. Agricultural Adjustment Act officials insist that adequate funds are available to carry out the programme, but the hearings on the constitutionality of the Act before the Supreme Court are not until December 16, and there is no way of knowing when the final decision will be handed down.