Evening star., 1933-09-13
WHEAT SURPLUS
EXPORT PLANNED
Proposal Would Relieve
Northwest of 30,0 600, ,000-
BusheI Excess Supply.
BY the Associated Press.

BY the Associated Press.
Plans fer expectation Of farm sur
pluses through an export association,
which would get rid Of from $4,000, 900
to 35OOO,O0O bushels OF wheat now
stored in the Pacific Northwest. are
being made by the Agriculture Adjust
ment Administration.
The proposed export association would
work through a marketing agreement
with the farm administration. Public
hearings on the proposal will be held
In Portland, Oreg, beginning Friday.
Although the farm administration
did not say so, the agreement probably
will receive the approval CT Secretary
Wallace without delay. since the wheat
situation in the Northwest has been
causing worry for months.
Price Depresses Market.
BY shipments through the Panama
Canal, or even by rail, the low-priced
Northwest wheat, piled up in huge
quantities, could be sold in the East
and Gulf regions in competition with
higher-priced wheat there. This has
acted as a depressant to the entire
market.
The farm administration emphasized
the wheat would not be dumped or sold
abroad at less than the world price.
This means it must be sold at between
Is and 20 cents bushel less than the
domestic price, those figures being the
approximate difference between world
and domestic prices.
Any wheat sent abroad under the
proposed agreement also would be de-
Quoted from the limitation Of $4,000, 900
bushels for this years United States ex-
ports. This quota was fixed by the
international wheat agreement In Lon
don.
Payment Terms Revealed.
The trade agreement provides that
the farm administration, within 48
hours after proof Of export has been
furnished, will reimburse the exporters
for the loss represented by the differ
ence between the world price and the
price at which they bought the North
west wheat.
Two cents of the -bushel
processing tax on wheat already has
been earmarked for fund for removing
such surpluseS as that in the Pacific
Northwest. Farm officials said this
would be sufficient to pay the bounty
to exporters. since the maximum cost, If
all the $4,000 900 bushels were exported,
was estimated at not more than 81, ,0OO,-
600.
The announcement said most Of the
wheat was expected to be sold in the
Orient. China recently established
credit Of S10,O00,00O with the Recon-
struction Finance Corporation for wheat
purchases, but no grain has actually
been bought. A part Of this fund might
be used to buy from the export associa-
ton
The mechanism for handling the ex-
ports Is the North Pacific Export Equal
ization Association, formed among pro-
ducers and mills handling flour exports
and exporters themselves in Oregon,
Washington and Northern Idaho. It was
emphasized. however, that any firm that
desired to do so might join the asso-
oiation on condition that it share in the
expenses Accord, to the business it
hF ndled
1t was estimated that Is, 100000 bush
e's OF wheat might be sent to China:
100000 to Japan, and that Ireland
v-as a potential market for about e.
&C. 1000.
-he announcement said the "agree-
rlcAt specifically states that the export
association Is temporary emergency"
Exporters will be allowed a reason
able fixed margin of profit per bushel to
cover selling costs" The association
will serve as a clearing house and will
arrange. through its members. the de-
tails of selling wheat and perhaps -four
for export from Oregon, Washington
and Northern Idaho
The carryover from last years crop
in the three States was estimated at
IS 900 900 bushels