Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-20
ACREAGE CUT MOVE
MAY DAMAGE C. OPP.
Democrats Expect Gains in
DiSfavor of Farm Boards
Suggestion.
BY MARK SULLIVAN.

The best reports from the wheat
growing territory say the farmers are
unsympathetic to the Farm Boards
program of reducing acreage. Demo-
cratic leaders in Washington have con-
fidence that this dissatisfaction with
the Farm Board will express itself in
November in the loss of Republican
seats in Congress in some of the most
dependably Republican territory in the
country. The Democrats expect to cap
italize the situation to the utmost. They
are preparing a prolonged barrage
against the Republicans, designed to
unSeat Republicans in the wheat terri
tory and some other farming districts.
Every gain made by the Democrats in
this section would be so much more
than the Democrats haxe expected hlth-
erto. The Democrats have expected.
and the Republicans have conceded,
that the farmer will make certain ana
considerable number of gains in No
vember. The territory of these anticl-
pated gains has not, as a rule, how
ever, included the wheat-raiSing and
other Western farming districts.
The present facts about the wheat
situation begin with the position of the
Farm Board. The boards suggestion is
reduced acreage. The counter-sugges-
ton made by political representatives OF
wheat-growing territory, such as Sena-
tor Capper OF Kansas, is purchase by
the board of hundred million bushels
of wheat. This will not be done. The
Farm Board will neither buy nor sell
at this time. The board is now carry
ing some $4,000, 900 bushels bought dur
ing or soon after the crisis last Fall.
A very small fraction of this must be
sold because of expiration of storage
facilities. Enough more will be bought
to keep the boards stock at 60,000,000
bushels. The board will not, however,
embark upon any new net buying.
Fear Prices Depression.
The boards reasons are two. One is
that the psychological effect of new
buying would be to depress future wheat
prices. knowledge by the world OF q
great stock of Government owned
prevent prices in the future from going
up. The boards other reason for re-
fusal is one of principle. The principle
is that Government purchase OF COM
moditieS for the purpose OF "pegglng
the market has always worked badly
in the long run and always will.
It is true that the board seems to
have violated this principle in buying
the so 600 600 bushels it now has. In
VI IAAAo, bAASAS ~ N~So~~S
ton in reason and motive If not In
principle. The 60000,000 bushels were
bought in the midst of last Falls panic
in other markets, and for the purpose OF
preventing one in wheat. The distinc-
ton between these circumstances and
the present may seem refined, but IL
has governed the board
The net of it all is that the board
will buy no wheat now. The board is
firm on this as a matter OF principle.
In addition, the board has greater con-
fidence in its own suggestion OF re-
duced acreage. Persons familiar with
the market and with market psychology
say that announcement now OF de-
crease in planting would result In
prompt rise in the present price OF
wheat.
Market psychology IS of course,
subject about which persons may dill
fer AS a rule, farmers do not pretend
to know about it. 1t can only be SAID
that persons experienced in marketing
feel confident that announcement now
or in the near future of reduced acre
age would result in increased prices.
They think prices Of wheat now exist
ing would increase, and it goes without
saying that future prices would be
higher by reason Of reduced acreage.
Various Election Material.
what the Democrats expect to take
advantage OF is the general condition
in the wheat territory. Some candi-
dates will exploit the Governments re-
fusal to buy hundred million bushels
of wheat. other candidates will take
the ground that the situation could be
cured by the equalization fee" or the
"debenture plan" For reasons too COM
pick to go into here, there is no posi-
bility of either of these devices being
enacted by Congress in the foreseeable
future. Both are designed to make
wheat sell at higher price in America
than abroad. Members of Congress
representing the East and consuming
certers might have been willing to do
that a year ago, when farming was the
only depressed industry. They would
not do it now when every industry is
depressed.
The net of the whole situation is that
the wheat situation must be cured by
decreased acreage accompanied by CO.
operative selling. If not that, the Sit
uation will take the course OF nature
with all other commodities.
In a sense the wheat controversy is
question whether the farmers shall give
their confidence to Alexander Legge,
chairman of the Farm Board, or to the
politicians and the candidates Tor once.
In Washington there is extraordinary
ava I,idesrread confidence in Legge.