The Waterbury Democrat., 1933-08-15
By C. S. BURTON
(From Wall Street)

to agricultural production are
more or less overshadowed by the
movements of the administration
looking, in a large way, to q re.
distribution of the national income
upon what it conceives to be c
much more equitable basis. 1t II
plain that, as a matter of the ma
tional bread and butter, any such
plan of readjustment must per.
force, begin with agriculture.
1t is difficult to realize that We
have already proceeded so fai
along this line that we are actual,
collecting a special tax from al
of the people for the benefit of {
part of the people-direct benefi
by way of immediate cash pay
ment. That, however, is appar'
emily merely a part of the revolu
ton through which we are passing
The two principal items of wheat
and cotton are now under the pro
cessing tax. Thirty cents bushe
on wheat and four and two-tenth:
cents q pound on cotton. The vol
untary curtailment' agreements
under which these collections are
to be distributed, are being sought
from the farmers and accumulated
In addition, we are witnessing q
large scale program of crop de-
struction in cotton while nature
is herself cutting down on our GER
cal production. The outlook fol
agriculture thus continues its kali
eidoscopic characteristic.
Moved by the possibility of in
f1ation and revaluation of the gold
dollar, we have been carried along
upon a great wave of overdone
speculation.
The speculative frenzy has re.
suited in a curtailment of the hours
of trading on the exchanges
Prices, which had been driven UP
to high levels all too rapidly broke
very badly. Our entire situation
due in the larger part, apparently
to the outbreak of the speculative
spirit, had been carried ahead toe
quickly and too far in advance OF
any solidly conceived recovery.
The Chicago Board of Trade
where the speculation in grain and
curtailed the hours of trading but
price fluctuations. This is, OF
volume; for example, the limit in
wheat is fixed at cents above or
below the average of the previous
days closing prices; when what
ever bids and offers there may be
in the market within this limit
have been satisfied, the market
simply comes to a. standstill. If
the market holds its trend over
night it continues each day from
the point at which it left off the
day previous.
Speculation in the stock market
which has also brought about the
curtailment of trading hours, and
that in the grain markets, has
found it's expression in business in
increased inventories which have
been built up in many lines, anti
cipating the time when the public
may be expected to prefer to own
Observation-Disclosures than
to hold currency or corporate OBJ
legations
AS to the wheat market, Nature
took the master hand and gave
speculation grand flip. We are
reaping the smallest crop in many
years. Present indications are for
winter wheat harvest-now prac-
tically completed-of less than
100000 bushels, against 462,-
100000 bushels last year; and a
five-year average, 1926-1930, OF
590,000,000 bushels. The current
harvest, then, is about $40 of nor
NAL, and for the first time in sixty
five years, we are going to need
for our own use all the years
wheat crop.
Thus, nature, ignoring the newly
empowered secretary of agricul-
ture, even as he insists up on ig-
noring nature, is about to throw
our wheat farmers into the shell
ter of our tariff wall, AZ cents high;
whereupon we may expect further
advances in price; additional
height in the tariff wall will be de-
manded, again and again, once its
efficacy is recognized.
1t has been announced that, in
any event, crop shortage or no, the
acreage curtailment plans of the
agricultural adjustment admins
tration are to be carried through.
The wheat harvest having been
complete, such curtailment will
have to do with this falls seeding;
it will not entail destruction OF
any growing wheat.
In cotton there is a different sit
uation. Planters were asked to de-
stroy up to 40 per cent of a crop
already growing and the staple ad-
vancing in price. According to the
last statement of the department,
more than 10 million acres have
been offered to the department for
leasing. The task of examination
Is under way.
The administrations proposal to
the cotton growers is briefly that
in consideration of the destruction
of some agreed part of his growing
cotton, the planter shall receive
cash, based on his lands last pro-
duction.
An alternative offer permits the
planter to take less cash and for
the balance of the payment &C.
quire options on government cotton
at 6 cents per pound as above
with option" The cash payments
are to be made as soon as the ad-
ministration's agencies report that
the cotton has been turned under
Government announcement says
land taken out of cotton produc.
ton may be used for the produc-
ton of soil-improvement or ero.
sion preventing crops or food and
feed-crops for home use."
Nature is also having a great
deal to do with our corn crop
upon which we must all depend
for our beef and bacon. In 1882
the crop was 1920, 100000 bushels;
the department forecast, as of July