Your entry was executed......
Nov 3 08:04:01 joseph CRON: (root) CMD (/home/peter/bin/touch_file)
Nov 3 08:05:01 joseph CRON: (root) CMD (/home/peter/bin/touch_file)
The above tells you that the file was executed at 08:04:01 and 08:05:01. It might not have given the expected or required result, but it did run.
This tells me that cron works as expected and that something else is not right/misunderstood.
What happens if you change your touch_file to: