Evening star., 1933-09-23
LOANS ON COTTON
TO BE SPREAD TO
OTHER PRODUCTS
Continued From First Page.)


final shaping of the program would
reveal that the loans would be made
to all farmers who still hold their cot
ton. regardless Of whether they agree
to ioin in the reduction next year. He
estimated that growers still hold g.
100000 bales of this years crop Of
about 124OO,00O bales
President RooSevelt'S speedy indorSe-
ment after the loan plan was outlined
by a delegation of Southerners raised
speculation on whether some such de-
cisive move might be made in the case
of hogs. cattle. corn or wheat. Secre-
tary Wallace said it was no precedent,
however. and that each farm COM
modify would be judged on the merits
of its particular situation.
The general cotton plan follows the
program put before Southern growers
at meetings in Memphis. Atlanta and
Dallas by Government officials.
Small Expenditures Seen.
It's essentials are the acreage reduc-
ton, benefit payments ranging from
SO to $11 an acre for the land taken
out of production and a guarantee of
a price around parity for a portion Of
the crop based ON the average produc-
ton of the land during the past five
years.
It was the expectation of the Farm
Adjustment Administration that price
of cotton would rise to 10 cents and
more and that little money would have
to be expended.
In the event that money is loaned
and the price goes down, the Govern
ment loses Should it rise above 10
cents. the farmer may sell at any time
that he desires, pay the loan and pocket
the balance-if there is balance.
Indirectly. the loan plan grew out Of
the gathering. among other things, that
the price of cotton be fixed at 20 cents
a pound.
A cotton committee was named to
discuss steps that might be taken with
Johnston, George N. Peek. administra-
tor of the farm act. and other officials
The program was worked out largely
by Johnston and Senator Bankhead
Secretary Wallace was asked yester-
day whether he and his assistants did
not depend upon the sale of a large
quantity Of cotton to Russia to raise
cotton prices in the next few weeks. bit
that the administration was afraid the
farmer would lose the benefits since
most of the staple would be out of his
hands.
Smiling. Wallace replied that eve
don't want to see the cotton farmers
hooked in the next two or three
months" but he did not explain to
what he referred.
Wallace said the plan, in his opinion.
could not apply to corn and hogs be-
cause no longtime control program had
been worked out for those two commod-
tiles
He and Peek stressed that the ar
rangement for cotton, while stabiliza-
tion measure, could not be compared to
the stabiliZatiOn activities of the Farm
Boaro.
I'VE have a definite control plan
where cotton is concerned" the Secre-
tary said.
Peek said in announcing the control
program that "as to the plan for 1884,
there is no doubt that cotton producers
will participate"
The central control unit will be
county cotton producing control asso-
Citations which will determine the in
dividual farm acreage after the admin
istration tells each State and each
county how many acres 1t may grow.
The allotments, following the lines OF
the wheat plan, will be made to the
land.