Evening star., 1930-06-27
FARM BOARD URGED
TO ACQUIRE WHEAT
Western Governor Urges
Purchase of 25,OOO,O 900
Bushels to Aid Market.
BY JOHN r. SINCLAIR.

Special Dispatch to The Star.
NEW YORK, June 27.-When Alex
ander Legge became chairman of the
Farm Board wheat was selling around
$i35 a bushel When the special session
Of Congress was called in April last
year. wheat had gone down to $1.10 at
Chicago. Today it Is selling at 81 to sS
cents.
So Gov. Cyde Reed of Kansas wants
Chairmen Legge to finance Immediately
the purchase of $4,000, 900 bushels of
new Winter wheat in order to save the
market. This Western governors de-
mand is backed up by nearly all the
Senators from the Winter wheat States,
as well as by Southern Senator'S, who
see danger ahead for cotton.
With wheat prices at the lowest point
in Is years, pressure was never stronger
on the Farm Board to enter the market
and pick up the surplus new wheat.
The Farm Board, with market
record Of the last IL months in the red,
SO far has refused to listen to the cry
from the West.
Will or will not the Farm Board enter
the active markets again and pick up
the surplus wheat and cotton this year
In order to raise prices within the
United States and give the producing
farmers a chance to break even? The
West and South are pressing the ques-
ton in this form before the Farm Board
and awaiting an answer
Right now 1t looks as If the board has
decided not to enter the competitive
markets actively for the sole purpose Of
bolstering artif1cially the price OF either
wheat or cotton.
American cotton farmers, who, by the
way, produce about 81 per cent OF the
total world production, are busy study
ing figures these days, trying to nno out
where they are at"
Last wears world production Of 26,-
200 900 standard bales was almost the
same as that of 1928. But the carry
over for 1929 was larger because the
consumption during 1928 was less than
the year before. The New York Cotton
Exchange has been estima ting the carry
over this year at 4,474, 600 bales, which,
with estimated American production,
would make q total of 19, 100000 bales,
as compared with 1851 900 the year
before and 1886, 900 bales for the Ave-
year average Of 1928 to 1927, inclusive.
But
Reliable experts now are estimating
the world consumption for the year
ending July 1, 1880. at 13,70o, 900 bales,
as against 15,169 900 bales in 1929 and
$500, 900 in 1928. This largely tells
the cotton price-drop story!
Present reports indicate United
States cotton crop this year of over 49,
600, 900 bales-about the same as last
year But the longer carryover results
from decreased consumption.
Tie these two facts together and
one must conclude" says the Wall
Street Journal, that "the cotton mar
ket will be obliged to carry heavy load
this coming season"
Secretary of the Treasury Mellon has
. well known reputation for surpluSes,
far exceeding his estimates. Soon he
viii close the Government books for
another year (June 30) with surplus
exceeding 1920, 900, ,000-about $35, ,000,-
600 above last years record-staring
him in the face.
The present Congress seems to have
gained the impression that the Treas
ury surplus for the next fiscal year will
be merely q duplication Of the one this
year. But not so fast
Next years Federal taxes will reflect
the business depression of 1880. If the
Treasury breaks even the next fiscal
year it will be real achievement. Many
observers believe that for the first time
since Secretary Mellon took charge Of
Treasury finances In 1921 he will face
q deficit, not a surplus, in closing the
Treasury books next year.
Time only can tell.
The lumber industry, vigorously fight
ing the steel industry for the vast build
ing material market afforded by de-
tached residences, wants the residence
builder to stop, look and listen to the
merits of the "laminated lumber" floor.
In this type of floor the under-hoor is
built up Of 2-inch planks laid on edge,
instead of horizontally. With the floor
from inches to 6 inches thick, having
high heat and sound insulating values
as well as the customary superior resil-
tence Of wood floors and great structural
strengthening as compared with the
ordinary flat-laid floor, the lumber in
dustry announces that such floor will
hold fire in the basement, as long and
as well as steel or concrete.
Says Mr.. Wilson Compton, manager
Of the National Lumber Manufacturers
Association:
There will be no buckliAg from heat
with its tendency to wrack the structure
or cause 1t to collapse. It gives a flrm
foundation for the finished floor OF
specially prepared wood. In q great
fire In Washington recently the heavy
wooden members of the interior frame
remained virtually intact. after the
steel members had been twisted and
bent by the intense heat"
So the competition between steel and
wood takes a new angle.
tCopyright, $780, by the North American