Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-01
farmer IS FACTOR
IN TRADE OUTLOOK
Recent SIumps in Wheat and
Cotton Are Dark Spots
in Situation.
BY J. C. RoYLE.

The position of the farmer again has
become a major factor in American
business conditions. The slump which
took place this week in wheat and cot
ton took the banks out of the fore
ground of the financial picture and
splashed in the Federal Farm Board in
the position of prominence.
The announcement of Chairman
Legge of the board that the organiza-
ton is not trying to hold up the entire
wheat market aroused tremendous in
terest. So did his statement that farm
ers who belonged to co-operatiyes or
intended TO belong we're assured against.
loss on their wheat.
Mr.. Legge made 1t clear that while
the grain sterilization corporation,
formed to function under direction of
the Federal Farm Board, had bought
between 5000, 900 and 5000 900 bushels
Of wheat, it had bought almost entire
| ly cooperative wheat. The board. he
continued, could raise the entire wheat
market to the price pegged by the
board, but it was felt that it would not
be wise to do this since the expense in
such operations would go largely into
the pockets of others than farmers.
Depression in Cotton.
Opponents of the Farm Board how
ever, point out in connection with Mr..
Legges statement that since prices are
low, foreign buyers may be counted on
to enter the market, that If low prices
were necessary to iron out the surplus
in wheat, it would seem to have been
inadvisable to hold up prices artificially.
Cotton also has been subjected to de-
preston and it is believed that forma-
ton of a cotton sterilization corpora
ton will not be long delayed.
Tho I7afaro1 fo
likely TO take any immediate action to
aid other industries. Some Treasury
officials feel that, now that the first
scare is over. industry can be count
ed on to take care of itself. 1t
also is pointed out that where the real
need of an industry calls for reor-
ganization from within, it seldom does
lasting good to give financial assistance
from without
The lines Of industry which have
been doing well are doing better. Steel.
for example. Is in a most favorable
position. Automobile sales are proceed
ing at fine rate. Building has not at
tanned the momentum it should have,
but the weather has been a deterrent
factor.
Aviation Industry.
The aviation industry is showing the
stimulus of recent passenger and
frelgnt rate reductions. Sales OF planes
recently have been good. Radio is
cleaning house of excess stocks, but the
carryover was so heavy that In most
cases makers have not yet started to
put sets of 1890 manufacture on the
market. They expect to do so within
a fortnight
Sales of apparel at wholesale are
showing fair volume and while retail
distribution also is good, competition IN
the department store field seldom has
been so severe. This has been of bene-
fit to publishers. however, since in
many cities it has increased advertising
In many towns the average amount
being spent for advertising is rising
above the 3 per cent on the dollar of
gross sales mark
Complaints of unemployment are be-
coming more audible. This develop
nent was predicted two weeks ago b.
some labor authorities.
(Copyright, 1930.)