Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-09
Agriculture Report Predicts
100000 Bales Above
Normal Production.
GERMANY PROPOSES
TO BUY 17,0O0,O0 Blu.
Farm Board Lacks Official Offer
From Berlin on Grain-Sale
to China Suggested.

A forecast of an enormous cotton
crop of l5,5S40O0 bales, the larges.
since 1926, yesterday complicated the
already serious American agricultural
condition while the Federal Farm Board
was considering q new German offer to
buy 1900, 900 bushels of sterilization
corporation wheat. The board late Fri
day rejected a German offer to pur-
chase from 100000 to 100000 bales OF
cotton because the credit conditions
offered by Berlin were unsatisfactory.
The Farm Board was plainly sur
prised at the report issued by the cot
ton reporting board Of the Department
of Agriculture watch showed the United
States will produce this year q crop of
nearly 100000 bales above normal
The yield last year was 13, 932, 900 bales.
1t was said to sum up situation which
indicates that by the end Of 1881. un-
less the board is successful in negoti-
ating sales or unless normal European
demands pick up, the United States
may have on its hands ID ,000. 900 bales
of cotton that no one In the world
wants.
Exchange Reacts to Report.
With the receipt of the oficial esti-
mate, quotations on the Chicago Ex-
change, the only market open at the
time, Immediately plunged 1877 points
to $3.50 bale for December futures.
Reports Of the new German wheat
offer came in the form Of press cables
from Berlin and up to late hour yes
terday the board did not have the pro-
posal officially before 1t. However, the
proposal made by the German govern
ment to Ambassador Sackett is said to
be to buy 500, 900 tons, or about lT,000,-
600 bushels, Of American wheat for de-
livery next Spring on three-year credit
and Az per cent interest at price terms
definitely fixed in advance.
No indication was given at the Farm
Board whether 1t would accept or re-
ject the German offer. However. the
hope was expressed among members OF
Congress from the wheat areas that 1t
would do so. Wonder was expressed
whether there would be protests from
the trade such as those which arose
when Germany Proposed to buy cotton.
Open TO New Offers.
In spite Of the fact that German cot
ton offer was rejected, Chairman James
G. Stone OF the Farm Board made 1t
plain the board was willing to consider
further offers. Suggestions came from
high ofiicial quarters that Germany
might appoint representative or agent
10 talk over the whole question Of cot
ton and wheat purchases with the
Farm Board.
state Department of1cials indicated
they were taking no part In the situ-
ation, except to transmit to the Farm
Board any communications received
from Ambassador Sackett, or to trans
NIT Farm Board communications TO
Germany.
Following the rejection of the Ger
man cotton cfTer Southern Senators
expressed satisfaction. They are hope
full that no offer will be received which
will be acceptable.
Harris and Byrnes Pleased.
Senator william j. Harris of Georgia
in a statement said he was pleased
over rejection of the German offer be-
cause IL would have been 'ruinous 10
the cotton growers OF the South,
The publication that the Farm
Board would sell the cotton II held TO
Germany depressed the price of cotton
more than anything that has hap
pened," said Senator Harris.
Senator James r. Byrnes Of South
Carolina said he felt the protests
against the sale of cotton to Germany
mao an eHeCt on the Fdrm boato. ne
said the proposed sale would have sent
cotton down TO cents.
With relation 20 payment soon of
claims of German nationals by the
Treasury Department. from which the
Farm Board has suggested purchases
of cotton may be made privately, the
Treasury Department indicated about
5000 900 would be available 70 Ger
many in q short time
In view CT many inquiries as to the
payments 10 be made to German ma
tionals on account Of the awards of
the war claims arbitsr. this informa-
ton was made available at the Treas
ury.
Farm Board members had believed
that their efforts in bringing about a
10 per cent reduction in acreage would
pave the way for Disposition of at least
Continued on Page 3 Column 81