Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-20
FARM BOARD CROP
MARKETING FOUGHT
Smith Opposes Financing
PIans-Hyde and Stone
Deny dumping"
BY the Associated Press.


Trouble developed yesterday on Cap
itol Hill over administration suggestions
to use Reconstruction Finance Corpora
ton funds to finance foreign sales OF
the Farm Boards surplus wheat and
cotton.
Senator Smith, Democrat, OF South
Carolina, author of the resolution max
ing 5000 900 900 Immediately available
for crop loans, declared against divert
ing half Of this for financing export
credit.
He said it can have nothing but .
disastrous effect upon the market at
this time"
dumping" Plans Denied.
Meanwhile, Secretary of Agriculture
Hyde and Chairman Stone OF the Farm
Board gave assurance there was no In
tentton of dumping" these surplus
stores or disrupting orderly marketing
plans previously announced.
HYDE said the administration plans
contemplated seeking new American
markets-such as the Orient. He added
the $4,000, 900 now available for crop
loans is sufficient and Ito expand these
loans only means the stimulating OF
production"
1.-THE process of exporting the surplus
now and getting it out Of the country
will increase the price Of next years
crop" the Secretary said In state
ment last night.
Discussions between administration
leaders and Chairman Stone looking to
setting aside about $100,000,000 went
forward on Capitol Hill yesterday. The
resolution making the 5000, 900 i'm
mediately available for crop loans now
Is before the House Banking Committee
and an effort probably will be made
there to obtain authority for use Of the
500, 000, 900.
'It will necessarily have the effect"
Senator Smith said IN an interview, "of
demoralizing the trade disastrously In
these two staple crops Cotton and
wheat). To take 1,000, 900 bales of this
Farm Board cotton and put 1t on an
already burdened market can have no
other result than that which has al
ready occurred.
Woods Presses Plans.
The transactions disposing of the
surplus crops to be carried out on a
strict business basis. Credit is needed,
however, because the crops held by the
Farm Board are now pledged as
collateral.
Mark w. Woods of Nebraska is press
ing the wheat negotiations. He has
been in constant consultation with ad-
ninistration and congressional leaders.
The thought is" he said, that NOV
ing the surplus in this way will cause
wheat and cotton to bring q higher
price, rather than lower price, all over
the world
In telegram to the Georgia Alabama
Cotton Co., at Albany, Ca, Secretary
Hyde stated that all contemplated sales
OF the surplus crops would be made in
an orderly way and In accordance with
the Farm Boards previously announced
policy.
Such sales, he added, would be con-
structive, If made. and would result in
benefit to the farmers"
Stone conferred at the Capitol with
Senator Watson, the Republican leader;
chairman McNary Of the Senate Agri-
culture Committee, and Representative
Purnell Of Indiana, high-ranking Re-
publican on the House Agriculture Com
hnittee.
It Is understood that the Govern
tween 50.000,000 and 80, 0o0, 900 bushels
of wheat. This is about half of the
surplus held by the board.
Sale of this quantity is expected by
the administration to bring an upturn
in prices for the farmer on this years
crop.
Opposes Raising Output.
''The conferences held at the Capt.
tol," Hyde said, have been solely for
the purpose Of seeing whether we could
dispose Of large blocks Of surplus cot
ton and wheat in markets which would
not otherwise take American products,
and thus relieve the surplus which Is
hanging over the farmers prices"
He added that If $l25,000,000 more
were loaned small farmers in addition
to the $75,000.000 now available, It
would increase cotton production by
more than 1000, 600 bales and wheat by
100000 bushels. This, he said, would
defeat the purpose Of those borrowing
money.