Evening star., 1932-09-06
WHEAT AND COTTON
TO Be WITHHELD
Farm Board Agrees Not to
Market Remaining Stores
Until Next Year.

The Federal Farm Board viii with
hold from the market until next year
all remaining stores of stabilization
wheat and cotton and approximately
2,000, 900 additional bales Of cotton con-
trolled by co-operatives.
The agreement to do this was an
nounced last night by Chairman Stone
Of the Farm Board after a week Of
negotiations between the board and the
Reconstruction Finance Corporation
following announcement that the cor
poration had allotted $50 900, 900 as
loan to enable the cotton to be with
held.
Chairman Stone yesterday returned
from boat trip on Chesapeake Bay
with Jesse Jones and Harvey Couch.
directors of the corporation, and made
the announcement shortly thereafter in
he names OF the Farm Board afhliates
affected.
Holds 100000 Bushels.
The Grain Sterilization Corporations
statement said it now holds less than
5000, 900 bushels Of wheat as compar-
ed with more than 250, 1000, 900 bushels
IN July, 1881. This present store Is
not to be reduced by sales before next
January, except such sales as may be
made for shipment to foreign coun-
tries that otherwise would not be i'm
portant buyers Of United States wheat"
In addition to this 5000, 900 bushels"
the statement said, "the corporation
owns a certain amount of futures con-
tracts which serve to absorb part of
the usual hedging pressure. The present
amount Of futures owned will be held
at least until after January /, 1888,
thereby making a better market for
producers than would otherwise exist"
Statement on Cotton.
Regarding cotton, Stones statement
said:
"of the $4,000 bales of cotton pro-
Sterilization Corporation prior to July
81, 1888, more than 5000 bales have
been sold. The corporation will i'm
mediately withdraw its remaining
stocks from the sale until March /,
1888, with the exception Of certain
small amounts now on consignment in
foreign countries. and such cotton as
may be sold at IL cents per pound or
more based on the near month Of the
New York Cotton Exchange.
The American Cotton Cooperative
Association Will maintain its present
stocks Of the 1880 crop until July 81,
1888, with similar exceptions for sales
at the above prices.
These steps are being taken and
loans obtained so that the cotton grow
ers will get the full benefit of the mar
ket for their crop of this year and for
the purpose Of enabling the organiza-
tionS to gradually liquidate their hold
ings during periods when more active
demand Is anticipated"
In making the announcement, Chair
man Stone declined to discuss the dif-
ferences Of opinion which had stood
between the Farm Board and the Re-
construction Corporation.
Free to Aid Co-operatives.
Holding Of all the stabilization stores
from the market leaves the Farm Board
free to function almost exclusively In
the field Of sponsoring cooperative
marketing.
The large stabilization wheat hold
ings have been liquidated gradually In
a manner Of which Stone said he was
exceedingly proud" with American
prices ranging above Liverpool prices.
The chairman said the selling of
10000 bales of cotton had been ac-
complished on q rising market.
At the beginning of this fiscal year
the Cotton Stabilization Corporation
held 1,300,0 900 bales, but 500,0 were
appropriated by Congress for relief Of
distress. Congress also took $4,000, 900
bushels Of stabilization wheat for the
needy.