Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-01
FARM BOARD FIXES !.
]. YEARS GRAIN SALE.
b. S. Agrees to Limit Wheat
p Disposal to Five Million
Bushels a Month.

~ the Associated Press.
wheat growers and traders who have
been appealing to President Hoover Tor
protection In the domestic market TO-
day had o promise Of assistance from
the Farm Board.
1t was that the Grain Sterilization
Corporation would limit the sales OF
wheat from July l. 1891, until wear
from today to q cumulative maximum
Of 5000, 600 bushels q month.
Sales to foreign governments or their
agencies now being considered were ex-
cepted by the board, as were sales 10
clear trade channels for other ef1cient
merchandising purposes. These. 1t was
assured, would be promptly replaced
by purchase Of an equal quantity OF
wheat
furthermore the board promised the
sales program would be so managed as
not to depress price movements.
No Immediate Sales.
Immediate sales, "even Of those lin
tied amounts" were not contemplated.
the board said, at the present range OF
prices.
At the same time, however, the farm
er was warned that ultimate profitable
wheat production rests with him. CIT
ing an increase in the surplus, the
board urged as the "only final solution
of the wheat growers difficulty
q sharp reduction of the forthcoming
wheat paintings"
without such reduction there is lit
tie hope of any long-term continued
profitable wheat production in the
United States in competition with new
wheat countries abroad" the board as
serted. with such action there would
be an immediate reflection OF increased
prices Of this years crop"
Agency's Action Defended.
A defense of the Federal agency's
activity was contained in the statement,
which said In part:
"The situation today would have been
clear and prices at much higher levels
had the Recommendation OF year ago
been more generally followed
Nevertheless, 1t added, the purchase
Of wheat from the 1929 and the 1880
crops has successfully protected Ameri-
can agriculture from the worldwide
panic in agricultural prices, and gave
IL an opportunity to readjust itself
without the enormous losses and bank
ruptcy which would have resulted from
the precipitant fall In prices which took
place elsewhere.
at would greatly benefit agriculture
II q systematic beginning be made to
H0u1QaUe THESE HOlQiIlBS dLu ICHioNC
their overhang from the market. The
improved situation abroad and Coop
Z GRAFTON in reducing production make
this possible"
Reject Price Standard.
The relief promise rejected pleas to
have the sterilization corporation an
nounce definite prices below which 1t
would not sell its holdings. Vice Presi-
dent Curtis recently urged that wheat
be; held until the price reached IS
cents or 81.
This, the board said, lis not in the
interest of the farmers. If high
price were fixed, then the sterilization
holdings would never be disposed OF,
and would continue to overhang the
future of American agriculture. II a
reasonable price we're fixed on today's
outlook. such a declaration would tend
to keep the price depressed to point
below such limits. 1t would distort the
whole movement of wheat and con-
gest storage by inducing excessive ship
ments whenever the price began to ap-
proach The figure set"
Convinced that its policy would
establish q free market, which any
fixed price would interfere with" the
board concluded it would feel free to
dispose Of the whole surplus If world
production should somehow be radi-
cally altered.
"But no such policy will be under
taken without ample notice and until
the farmers representatives can DE con-
suited" the board promised.