Evening star., 1929-12-13
Washington Ticker
BY CLINTON COFFIN,
Associated Press Financial Writer.

Chairman Legge and his associates
Of the Federal Farm Board are obvious
ly attaining stage of procedure in
their approach to two great commodity
Situations-those surrounding grain and
cotton-which will bring the whole
function Of this newest Government in
stitution to crucial testing. Farm or
ganiZation representatives in Washing
ton probably accurately reflect the
opinion Of the agricultural territory OF
the country in indicating that their
expectation is that the boards opera
ton will fix and maintain satisfactory
prices for these two groups Of agricul-
tural products. Unless this is accom-
agitation In and out Of Congress will
result. At the same time, it seems to
be general opinion that the board can
and will move only indirectly to bring
about the price levels desired by the
producers, and that there is consider
able vaguenesS as to just what price
points will be aimed at.
Touching cotton and grain, the board
and the producers are seeking first
the creation of stabilization corpora
tions, one to each commodity, dominated
by cooperative organizations of grow
erS, and partly finaced by the growers
at the outset.
Outlines of the institutions intended
in both grain and cotton have been
pretty well developed, in spite of dis
sension, and the board is committed to
demanding that producers pledge to
the new corporations control over a
very substantial proportion of the en-
tire crop of each product before any
Government money is asked. The
policy outlined Is to get the marketing
OF a controlling amount of each COM
modify into single channel, where
advance of funds from the boards
$500,000,000 appropriation can be ef-
fecttve in directing the marketing proc
ess. This sort of situation is begin
ming to loom up as possible with ref
erence both to cotton and wheat, and
corn may soon follow.
Just what would be a fair price for
these commodities the board may even
tually have to decide. Public state
mentS both by the chairman and by
Samuel McKelvie and Carl Williams,
respectively wheat and cotton repre-
sentativeS on the board, give some
ground for concluding that prevailing
market prices are considered rather
low for both these commodities. Spot
cotton of contract grades at under 18
cents q pound, New York, and the May
wheat option ductuating between $1.30
and 81 40 a bushel at Chicago are the
most important current quotations in
the open markets. It will now be seen,
as the board program develops, whether
these figures are to be raised substan-
TALLY and held higher. Obviously that
is what the farming regions ask and
expect of the new Federal policy to-
ward agriculture.
AS to minor but still important agri-
cultural operations, the Farm Board
has outstanding one experimental offer
that will, If accepted, give cooperative
marketing organizations of producers
Federal backing for going a considera-
BILE distance into industrial functioning.
That is represented by the conditional
offer to finance the group of small fruit
growers in Northern Michigan, Wiscon-
sin and Southwestern Michigan in un-
dertaking the operation of canning
plants, the acceptance Of which Is in
considerable doubt. The board has at
tached a set of conditions to its prof
fered action there which are entirely
worthy Of study: Growers who desire to
get Federal aid must first succeed in
obtaining for a single organization the
adhesion of producers of so per cent
of the crops in the territory which it
Is intended to handle. They must ac-
qulre at reasonable figures such pri-
vately owned canning capacity as is
rated suitable for their purposes and
must provide 40 per cent of the funds
necessary for plant and first years op-
erations. Thereafter the Government,
through the board, will advance the so
per cert to complete the outlay, which
for these fruit districts is estimated at
between $2,50O 600 and $3,00O,OO0.
Any procedure under this plan will
require a great amount of successful
local organization. 1t is said to be far
from sure that all of the requirements
will be met in this individual matter,
and the outline of the proposals is
chiefly valuable as showing the basis
on which the boards present policy Is
to proceed.