Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-05
HOOVER PREPARING
TO DEFEND BOARD
Strong O. K. of Farm Group
Expected-May Go Before
Country With Issue.
BY THEODORE C. wALLEN.

than 300 agricultural D2nKs, president
Hoover is preparing to resist pressure
FOR abolishing the Farm Board
Word to this effect comes from per-
sons who have discussed the admins
trations farm relief experiment with
the President in the light of charges
from the bipartisan Progressive
group that the plan has failed and
should be supplanted by one utilizing
either the export de5enture or the
equalization fee.
To Claim Unprecedented Service.
The administration will not wait for
the opening o. this attack in the De-
cenber session of Congress, but will 60
to the country with its own interpreta-
.tion of the results of the farm expert
ment. 1t will claim the Farm Board
has given American farmers a service
uneoualed in the Nations history.
while opposed in principle TO the use
of Federal FUNDS for price fixing oper-
atoms in normal times, the President is
said to believe this policy was Justlneo
in the economic crisis. On the theory
wholesale bank failures would nave
resulted in panic and retarded genera
business recovery, the administration Is
represented to feel that wheat stablll-
cation operations constituted emergency
action comparable to the raising OF
$500 ,oOO. 600 fund by New York bankers
to check the market decline in the dark
days Of 1929.
Views Well Known.
So far as disclosed, no one has been
authorized to state the administration
position on the farm relief experiment.
So many persons have discussed the
Situation with the President in the last
few days however, that the adminlsira,,
tons views have become fairly wen
known outside official circles.
That either the President or the
Farm Board, or both. would have a
statement before long outlining the Al
ministration position compre henslVely
was announced Tuesday by Senator
James e. Watson of Indiana, Republic
an floor leader of the Senate, after he
= had talked over this and other subjects
with. the President at breakfast. IN
none of these public statements, now
aver. has there been any attempt TO
outline MFR. Hoover's arr lment in de-
Tense of wheat stabilizat-O on operations.
Meantime, break was foreshadowed
Yesterday in the administration
farm bloc" Senator Thomas J. Walsh,
Democrat. of Montana Is said TO see
little ground for criticizing the Farm
Board and to be opposed to the move
to abolish it.
Ready to Defend Board.
President Hoover is prepared to de-
fend the Farm Board both in the next
session of Congress and in the presi-
Dental campaign to follow, If neces-
sary He is said to be determined TO
resist both the export debenture plan,
pressed by Senator William E. Borah,
Republican. Of idaho and the equaliza-
ton fee urged by Senator Watson.
Those who have discussed the situa-
ton with the President declare him TO
be satisfied that the Farm Board,
through its development of an organi-
xation to control production and mar
keting of the farmers wheat, has the
only sound, practical program ever es-
tablished by the Government to try to
solve the agricultural problem.
A Temporary Expedient.
The price-pegging operations are de-
gcribed as a temporary expedient TO
which the Administration reSorted only
when confronted with two crises. One
was the public psychology in the wake
of the stock market collapse. The
other was a critical situation created,
Administration officials believe, by the
dumping OF 100,000.000 bushels Of
EbuSoldI WuGdL Oh hOIIu hCL Acot
Autumn.
In both instances, President Hoover
sanctioned the plan by which the sta
bilization corporations supported by the
Farm Board went into the open market
to buy wheat in an effort to. hold up
the price and permit the farmers ito
get out Of a tight situation"
AS it was, the sterilization corpo-
rations kept the price of wheat well
above the world price. frequently as
high as 36 cents. The President is rep
resented to believe this protects both
the farmers and the banks that held
their storage slips as collateral for loans
made to finance the crops.
Answer Opponents.
The fact the board, with the Presi-
dents backing, is TO retire from wheat
buying operations through the stabili-
cation corporation at the ned Of the
present marketing season, June 30, has
been hailed by administration oppo-
nents as an admission Of defeat in that
field. The administration reply, ac-
cording to high officials, is that these
operations were resorted to only in ex-
IRENE emergencies and will be resorted
to again only under the same condi-
tons.
The administration. it is said, has
never doubted that sterilization is no
permanent cure. With the world
facing the largest wheat carryoyer IN
history, on July /, the central effort
OF the administration is TO persuade
American farmers to get on domestic
basis by reducing crop acreage TO de-
meStic requirements. On that date the
Farm Board will hold some 200, 000, 900
bushels OF wheat Under such condi-
tons the administration holds it cam
not be expected TO continue purchases,
first, because the emergency is not so
acute as in the instances when resort
was had 70 price pegging, and secondly,
because there Is no plan in sight for
disoosing of the boards holdings.
Fix Loss Of 100000, 900.
In any event, the administration is
said TO figure its wheat sterilization ac-
tivities will involve a loss Of not ex-
ceeding $50 100000 of the s50o000, 900
fund voted the Farm Board by Con-
gress. It will contend such a loss was
justified II it saved the farmers S5,000,-
100000 and the Nation generally con-
siderably greater loss by averting a
panic.
This reasoning proceeds from the ar
eument that the stabilization provisions
Of the agricultural marketing act Of
fered the only fundamentally for farm
ers' aid which might be compared to
the organized action of banking inter-
ests and the msrshaling Of industrial
leaders In White House conferences
for mutual efforts to maintain business
activity and assurance OF maintaining
the wage scales.
In this connection. it Is pointed out
the administration had nothing to do
with the insertion OF the stablizaticn
clause In the agricultural marketing act
It did not hesitate to use it, however
when the emergency arose, even in the
face of a wave of protest. especially
from Eastern financial interests who
could not understand how a man OF