Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-06
Farm Boards Barter
Policy Arouses Dissent
BY HARDEN COLFAX.

protests against It's barterlng program
rained down upon the Federal Farm
Board from many directions this week.
Wheat exporters, coffee importers, the
flour milling industry and shipping in
tereSts have all voiced objections to the
boards sales and prospective sales of
wheat to foreign countries.
Following closely on the announce
ments that the Farm Board had bar
tered" to Brazil a large quantity Of
wheat from its surplus stocks, in ex-
change for coffee, and that it was nego-
tiating a wheat sale to China. protest
was made by the milling industry of
the United States that its business with
foreign countries would be permanently
injured. If not destroyed, by such ex-
portationS.
The Brazilian government and the
Farm Board agreed upon an exchange
of rs, 900 900 bushels Of wheat from the
boards surplus stocks. in return for
l.275,000 bags of coffee which the
hands as the result Of its efforts to save
its coffee industry from the evils Of
overproduction and failing prices.
Brazil is a major consumer Of wheat.
Every year she buys abroad some "a, 000,-
900 bushels of the grain. Approximate
ly IS per cent Of her importations of
wheat come from Argentina, and most
OF the rest from the United States. Her
total consumption of flour, according to
Department Of Commerce figures, Is ap-
proximately 100000 barrels. The
Is, 900, 900 bushels OF wheat that she is
to take from America will provide her
with 5,500.000 barrels Of flour, while
about 100000 barrels will be mtlled
from native grain.
On the other hand, we get coffee,
which We do not produce at home. We
drink a great deal of coffee. Recently
record low prices, improved methods OF
distribution and effective sales promo
ton work have increased coffee con-
sumption in the United States and have
brought imports of the bean to the
highest point in history.
Almost Immediately upon the conclu-
sion of the deal between the Brazilian
government and the Farm Board, de-
cree was issued at Rio de Janeiro pro-
hibiting, for Is months, the impor-
tation Of flour. OF course, the Brazil1-
ans now propose to mill their own Hour
from this American wheat. The en-
barge was to 60 into effect on August
%. Meanwhile no provision had been
made for flour in transit from the United
States or Argentina.
This particular detail Of the problem
now seems to have been settled by an
agreement this week on the part OF
Brazil to permit the importation OF
flour contracted for before August %.
Il \
American millers have been doing an
export -four business with Brazil OF
about 100000 year, and i'm
portations from Argentina have also
been large. In the opinion of officials
of the Departments of Commerce and
Agriculture, the embargo may practi-
cally eliminate for some time to come
the position of Argentina as the chief
source of wheat supplied to Brazil, as
we'll as resulting, at least temporarily,
in the loss of fairly important market
to American millers.
Early In the week the millers sent a
protest against the Brazilian embargo
to President Hoover. The Millers' Ma
tional Federation claims this embargo
will destroy at one stroke the good
will of the American -four trade built
up over q score Of years" That the
loss will be permanent is feared by mill
ing company executives, who believe
that a Brazilian milling industry will