Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-04
HYDE IN CRITICISM
OF ARTIFICIAL AIDS
CurtaiIment of Production Is
Only Real Stimulus to
Market, He Claims.
By the Associated Press.

| By the Associated Press.
Cutting through the maze Of political
and economic the ories Of farm relief,
Secretary Hyde's annual report for the
Department of Agriculture went to the
President today with a full statement
of policy on controversial issues.
Probably the most outstanding point,
because of its bearing on the export de-
benture-now the chief concern of farm
legislation-was the Secretary's criti-
cism of subsidies"
He did not mention the debenture by
name, but opponents Of the plan charge
it is subsidy and pointed to Hyde's
declaration that subsidies would in
crease rather than restrain production.
Dumping Was Feared.
While denied by the debentufe's
friends, the accusation has been made
that it would result in the dumping of
American products abroad and create
foreign retaliation. Hyde said the
dumping of SURPRISES abroad was not
feasible and recited world resistance to
low-priced Russian wheat.
Touching close to the farm boards
retirement of 110,000,000 bushels Of
wheat from the market, Hyde said
without specific reference-that the in
definite storing of SURPRISES tends to
prevent rather than to cause rise of
prices.
Artificial Market Fails.
"By this time" he said, sit is evident
that supply-and-demand conditions can
not be set aside by legislation, that the
dumping of SURPRISES abroad is not
feasible, that the indefinite storing of
SURPRISES tends to prevent rather than
to cause rise Of prices, that tariff
duties are not effective on commodities
produced largely for export, and that
subsidies would increase rather than
restrain production. Voluntary curtail-
ment Of production Is the only logical
remedy for the surplus problem"
The Secretary also pointed to cotton
market developments as continuing to
emphasize the Importance Of adjusting
production to requirements. There has
been shift away from American cot
ton in the past two years, he said.
Farmers, of course" Hyde wrote,
must deal mainly with the supply
phase OF the problem in one way or an
other. There are two main alterna-
tives. They can let matters drift until
production is reduced by the ruin Of
thousands and their elimination from
the farming industry, or they can con-
sciously direct the readjustment process
to lessen its difficulty and hasten its
end.
Balanced Crops Urged.
The answer to overproduction Is less
production. Crops must be balanced as
nearly as possible with market demands
and offered only in such quantities as
can be sold at prices covering the farm
ers' cost Of production plus q profit.
Techn1cal progress has increased
farm productivity tremendously in the
last Is years. but the benefit has gone
largely to the consumers"
Hyde recommended a flexible policy
OF wheat acreage reduction. Primarily.
ne proposed elimination of "high cost
acreage" marginal land in which the
cost of production is great and which
shows no profit unless prices are cor
respondingly high. =,
Whole-hearted cooperation In a
concerted effort to bring our wheat in
dustry more nearly in line with its
market would disclose many useful
notifications Of the existing one-crop
system" he said.
ut would develop forage crop and
other sidelineS and eliminate many
htgh-coSt acres from wheat growing,
If by leaving acres fallow a better profit
can be obtained, that in itself Is good
farm economy"
Predicts Lower Incomes.
Lower farm incomes from the pro-
duction of 1880 as compared with the
previous year were predicted by the
cabinet ofdcer. He estimated the ag-
gregate gross income from 1880 crops
at about $3.50 ,0o0, 900, or about Is per
cent less than in 1929.
He attributed the current slump In