Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-27
FARM BOARD GIVES
S1OO,O)O,OOO LOAN
TO GRAIN GROWERS
Pledges Aid in Demanding
More From Congress to
Help Co-operatives.
BY the Associated Press.

By the Associated Press.
CHICAGO, October 26.-The Federal
Farm Board placed 100,o00,0oo at the
call of the grain co-operatives today.
pledged its aid in demanding more from
Congress If necessary, and gave its
opinion that prevailing prices for wheat
were too low.
While the new Farmers National
Grain Corporation was perfecting its
organization, Chairman Alexander
Legge of the Farm Board issued its
statement of policy climaxing the weeks
final organization conference. HIS
statement follows:
"The Federal Farm Board believes
that. based on known world supply, the
present prevailing prices for wheat are
too low. The board believes that this
unsatisfactory price level is chiefly due
to the rapid or diSorderly movement
which is putting large part OF the
years wheat supply on the market
within a short time.
Urges More Orderly Marketing.
1.-THE unprecedented liquidation OF
industrial stocks and shrinkage IN
had an effect on wheat values which Is
entirely unwarranted, and wheat pro-
ducers should not be forced to sell on
a market affected by these conditions.
"The board also believes that the
remedy lies in more orderly marketing:
In order to assist wheat farmers to hold
back their crop and at the same tlme
have money with which to pay their
obligations, the board proposes 10 loan
rowers under the Capper-Volstead act,
sums sufficient to bring the total amount
borrowed from all sources by sucn as
! sociations to the amount shown on tne
| attached schedule These loans Will be
! carried on this basis until the close
! of the marketing season. The "hea'
! co-operatives are now borrowing GER
tain sums for advances 10 members
! from commercial banks, the Feoeral
intermediate Credit BanKs aho 1 nr1e
! Farm Board, The board will make sup
| Elemental loans to co-operatfves IN
amounts equal to the following price
! schedule. taking into account the Gus
tomary differentials:
No, white amber, Slip per busnel'
NO No. i Northern, $125 per bushel;
basis, Minneapolis.
No. i hard Winter, $l1s per bushel;
No, i red Winter, $125 per bushel;
basis. ST. Louis. :,
No. / hard Winter, $l15 per bushel;
| basis, Kansas City.
| No. 1 hard Winter, $1-2l per oushel;
basis, Galveston.
No. / hard Winter, $l.1S per bushel
basis, Omaha.
"This schedule is based on grade
price and does not take into considera'
ton premiums for higher quality o.
wheat.
IN many sections of the country thu
board believes that the net advance:
which wheat co-operatives can make t.
their members under this loan plan will
almost, If not quite, equal the amount!
which are being paid by the Speculation
and others on actual purchases from
farmers.
Safe Loan Basis Seen.
There is grain cooperative IL
eyerv wheat State. It is open to tn
membership of every wheat farmer
The farmer may join, ship his wheat u
a designated concentration point wher
it will be graded and cleansed, ant
draw his advance. The co-operativ
will market the wheat in orderly fash
ion through the year, and will settl
with the farmer on the basis OF tn
final price obtained.
The board is confident that, con
. sidering the soundneSs of underlyin
| conditions which affect the price G
wheat, the plan described above fur
! nishes a completely safe basis for max
ing loans from the boards revolvtn
fund. The board places no limit o
? the amount of Government money
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