Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-24

the world international cartel" with
the consent of the member countries.
to keep q reserve Of wheat to dispose of
for emergency needs such as famines
and other natural disasters. The an
nual quota would be placed on a
monthly basis, the cartel having au-
thority to withhold stocks from the
market or release them for sale in
order to help market prices. The
australians proposed q somewhat
similar plan.
The Soviet delegation accepted the
Polish plan ''in principle" but without
the price-regulating agreement, and
with quota for Russia SO large as to
render any general agreement futile.
The Russians opposed the American
plan for reducing wheat acreage. Social
and industrial conditions in the Soviet
Union, they said, make increased wheat
production imperative. TT seems adj
vtsable TO u.s." the chairman Of the Rus
sian delegation said, ito allow each
curtan production. In our opin-
ion, the only workable solution for the
regulation Of wheat exports is fixing
definite export quotas" The entire ag-
rtcultural crisis throughout the world,
in the opinion of the Russians, Is "a
direct result of contradictions within
the capitalfstic system"
Russia Is in position to continue
increasing her wheat acreage, because
Of her low production costs. She could
dump" much larger quantities than
she has done during the past year and
thus further demoralize the world mar
ket by underselling. Even a hallway
agreement with regard to production
and exports is regarded as q concession
by the Russians.
X r X X
In reply to Delegate McKelvie's decla-
ration to the effect that the United
States will not indulge in dumping.
but will get rid of its surplus "only by
orderly marketing" the other delegates
expressed doubt that dumping could be
avoided. Moreover, they ask, how are
the worlds farmers to be convinced that
they must restrict planting?
The United States Is now producing
on an average something like 200, O0O,-
900 bushels Of surplus wheat a year
that is, in excess of domestic needs.
This year, according to reliable reports
received in the Department of Com
merce, Soviet Russia will probably have
an exportable surplus Of an equal
amount, or more. Next year the sur
plus she can ship abroad will be even
greater. Australia, Canada and Argen-
na-parucularly the last named-are
domestic capacity to consume. The
question Is one OF enormous Importance
to the entire world.
\ X 4
The gathering In London is not the
only one concerned with this problem
The League Of Nations, now in Session
at Geneva, IS also facing it. The French
foreign minister, Mr.. BRAND, has a plan
for an international economic cartel,
with wheat as its main concern.
What the world wheat producers In
general, and the American farmer in
particular, would like to know Is what
will be done by the Federal Farm Board
In the United States with the new crop
just coming on. Last week the Farm
Board pronounced impractical" the
plan suggested by State Senator n j.
Wilmer OF Washington for O. Nation
wide agreement among farmers to con-
troll the wheat surplus. Senator Will
mers plan called for an organization to
control the surplus crops Of 1881, 1892
and 1888 by signing up" the farmers
to agree on amounts going to market.
Chairman Stone OF the Farm Board
does not believe this scheme would
work.
The board has let it be known that
there has recently been an increase of
more than 10000. 1000 bushels in storage
capacity at IA Of the country's grain
markets. In this connection, the board
has announced that more than 98M
per cent OF the wheat held by the Grain
Sterilization Corporation is In good or
normal condition for milling purposes"
The rest Is being sold for mill feed.
Moreover, the board expects that all of
its 35,000.O00 bushels of "out of posi-
ton" wheat set for sale abroad viii b
disposed Of by July !.
fcODsxjshk 1aD1A -A----.--4--