Evening star., 1932-03-18
u. S. READY To SELL
SURPRISES ABROAD
Plans for Intensive Drive on
Foreign Markets Barred
by Hyde.
BY the Associated Press.

BY the Associated Press.
Oficial contemplation of an "inten-
sive sales campaign by the United
States to place some of the country's
huge surplus of wheat and cotton in
European and other countries was re-
ported today by Secretary Hyde.
The Agriculture Secretary told news
paper men that, although plans for such
a campaign were at present nebulous,
there was a definite hope" that some
such procedure could be followed in
lifting the weight Of these enormous
surpluses from the American market.
Many Conferences Held.
Conferences on the possibilities are
being held in official Washington, rang
ing from the White House to Capitol
Hill.
A possibility that part of the $780,
000, 900 farm loan fund of the Recon-
struction Finance Corporation might be
employed in such surplus-slicing cam
paign also was voiced today by Hyde.
A resolution to make this fund imme-
diately available has been adopted by
the Senate and sent to the House. Sem
ator Smith, Democrat, South Carolina,
presented it.
1T would not be humanity possible
for us to make 5000, 100000 of loans to
agriculture at this time" Hyde said.
Since we could not loan this amount
if We had it, better plan might be
to employ this money in cutting down
our surpluses rather than continuing
to stimulate production"
Hyde said that before anything def
4 l. .f
the wheat and cotton held by the sta
bilization corporations 1t would be
necessary to determine exactly what the
conditions were abroad concerning these
two products.
Milnor Sails for Europe.
Although Hyde had nothing to say
upon the matter, there was considerable
speculation in the Capital that the
sailing yesterday to Europe Of George
S. Minor, president Of the Grain Stabil-
ization Corporation, might have some
such end in view.
Secretary Hyde and Chairman Stone
Of the Farm Board consulted yesterday
with Vice President Curtis and agricul-
ture leaders at the Capitol. Hyde also
saw President Hoover and Walter New
ton, one of the Presidents secretaries,
uuI WOuAu INV SOAAhiSh' oAA 'AS eoAA'N,
sation
President Hoover has consulted mem
bers of the House Agriculture Commit
tee on the big fund. 1t is the hope OF
the administration to make part OF this
money available for financing the for
eign deals.
Although Chairman Stone said later
no active negotiations were under way
with a prospective wheat purchaser, 1t
was said In another quarter that China
was in the market for between 50,000,-
900 and so000,00 bushels.
The board sold 100000 bushels to
China last Summer. In this connec-
ton, Stone said today: Il have every
reason to believe China will meet her
obligations when they fall due. She
has paid her interest promptly. That
Is the only way country can maintain
its credit"
Powerless to Act.
Less than 5o,0o0, 900 of the boards
original $500, 900 remains unecum-
bered, and this prevents 1t from enter
ing into negotiations itself with foreign
governments.
"The board can't do it." Stone said.
"I think it would serve agriculture best
II Congress created fund to finance
foreign sales. The thing We are faced
with now Is overproduction. That
won't be helped when loans are given
to every farmer to 60 right back and
do it over again"
Aside from carrying a debt due from
a foreign government, the board would
first have to pay of primary loans Of
about IS cents a bushel against its
wheat
Besides China, Germany bought 50o,-
900 bushels of wheat last Fall and as
900 900 more we're traded with Brazil
for coffee.
The board now holds about 0,000,-
900 bushels Of wheat and 1906, 900 bales
Of cotton.