Evening star., 1933-07-21
us, READY TO ACT
ON MARKET RAIDS
Wallace Moves to Prevent
Widespread Shift in
Grain Prices.

The Roosevelt administration Is ready
TO take whatever action it can command,
if that becomes necessary, to stop mass
manipulation of stock and commodity
markets by operators seeking profit only
for themselves
This was evident today as Secretary
of Agriculture Wallace moved to de-
velop a definite program to halt, If pos
sible, widespread shifts in grain prices.
Wallace also gave his approval to the
suspension of futures trading for one
day at Chicago and other points.
President Roosevelt himself is con-
centrating on his industrial recovery
program, convinced, his advisers believe
that this would accomplish more to re-
store better times than any changes in
quoted prices on the exchanges. New
ertheless, those close to him believe
that if price fluctuations endanger his
recovery plan, the President will act
and act quickly.
Trade centers viewed the market raid
since the inauguration of President
Roosevelt's economic policies.
Combination Of Factors.
Trade circles here attributed the
break, which saw wheat drop II cents,
cotton cent a pound, and stocks from
81 to $23, to ombination of factors,
principally to an overcharging bull mar
ket feeling the tightening halter applied
by the banks three days ago.
The administration apparently was
not worried over the slump in value of
securities, except indirectly, but viewed
the break in wheat, corn and cotton
and other domestic crops as striking at
the heart of the recovery program.
Through Secretary Wallace the ad-
ministration issued warning that it
was prepared, if necessary" to invoke
upon grain traders to achieve more
stable prices.
Aside from these steps to prevent
further violent reactions in grain quo
tations at time when farmers have
been taking new hope from the
steady price rise, administration lead
ers indicated the Government was con-
tent to see the market prices slip down
more slowly.
Economists Not Pessimistic.
This was on the theory that the ef-
feet not only would be to help get
started on more solid footing, but also
1t would help hold back the elevation
OF commodity prices until the national
recovery plan could be put into effect
more definitely to the end of raising
mass purchasing power through spread
ing employment and raising wages.
Economists here also were not in
clined to be pessimistic over develop
mentS. They were inclined to believe
the break was the beginning of larger
market play, which may show itself
within few days.
In approving the order of directors
OF the Chicago Board of Trade suspend
ing trade today, Wallace said:
This action is a fundamentally
sound move in the right direction be-
cause it affords a cooling off period in
which to take stock of the situation"
Wallace said he had not suggested
the closing. :
In the first effort to deal with the
grain exchanges, Wallace, at the di-
rection of President Roosevelt, restored,
effective at once, the requirement that
the Department of Agriculture be in
formed daily of the names of operators
who have traded heavily in the grain
market.
Action Called Preliminary.
Wallace explained that this action was
a preliminary" in developing a pro-
gram to halt if possible violent shifts
in grain prices, that the information
made available by the reports might
lead to recommendations for new legis-
latiOn or invocation Of powers under
the farm act authorizing the Secretary
to license dealers and handlers Of any
farm commodity.
For the Chicago market, the largest
in the Nation, the requiremnt makes it
necessary to report to the Grain Futures
Administration long or short account
of 100000 bushels or more in any future
at the close of each days trading.
This requirement was suspended last