Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-13
STONE SAYS BOARD
SAVED j. S. WHEAT
Grain Price Crash Averted
With S1o0,0 900, 900 Gain,
He Tells Institute.
BY the Associated Press.

BY the Associated Press.
MANHATTAN, Kans., June 13.-
Chairman James C. Stone Of the Fed
eral Farm Board said last night a
crash in wheat prices which would have
cost this country, as a whole, billions
OF dollars had been averted by the
board stepping into the wheat market
last November.
He asserted the boards sterilization
operations in wheat and cotton had
been fully justified by the results.
Stone told the American Institute OF
Cooperation it was the opinion of the
board that the price OF wheat in Chi
buShel or lower If the board had not
come forward to bolster prices.
Cites Bank Failures.
He cited the series of bank failures in
Arkansas, Kentucky and North Caro-
lima last Fall and said 10000, 900 TO
10000, 600 bushels of wheat on which
banks had advanced loans would have
been dumped on the market If the price
had declined a cent or two.
Admitting the sterilization opera
IlOllS Ildu ICSullCO IA AGooSo "a i 1890 -
funds. he said
Beneficial results from both cottor
and wheat sterilization activities tc
farmers and the country as whole arc
many times over any losses that may bC
sustained by the revolving fund
Holds Remedies Temporary.
Figuring the stabilization operation In
a more concrete way, Stone said 500,
600, 900 could be entered on the credit
side OF the balance sheet, representing
the difference between the world price
and the price of all American wheat sold
from November to the end OF the crop
year.
Then on the debit side, suppose We
lose in the sale OF the wheat SIS .000,-
600, $30000,000 or even $500OO,OOO
have never seen the time when !
would not swap $50,0O0,000 for $780,
900. 000"
Summing up sterilization activities
the board chairman said our expert
ence convinces us that these can be
restored TO only as temporary remedies
and cannot cope successfully with con-
tinuous production of crop or steadily
mounting SURPRISES
He asked the public not to lose sight
of the boards progress in developing
erS and stockmen in a longtime pro-
gram designed to place the producers in
a position to adjust production 10 the
probable market demand and to mer-
chandise their products in such a way
as to reflect back TO the grower the
price paid by the consumer"
Is Gloomy on Wheat.
AS an example of the work Of the CO.
operatives, Stone cited the Farmers
National Grain Corporation, the CO.
operative central sales agency for grain.
1T is my belief" he stated, that the
Farmers National influence increased
the price of grain for all growers at
least z to 10 cents per bushel over what
they otherwise would have received in
the period from the time the 1880 crop
began moving until Sterilization pur-
chases were resumed in November
Discussing the outlook for agricul-
ture, the chairman counseled reduced
domestic production of wheat cotton
and hurley and bright leaf flue-cured
tobaccos. He saw little hope of Ameri-
can wheat growers being able TO OBJ
tain a profitable price in the world
market in the next few years, but be-
lieved cotton growers could compete
in the world market by improving the
quality of their product, II production
were reduced to meet present condi-
tons. The tobacco growers named, he
said, faced "disastrously low prices
this Fall"