Evening star., 1933-09-10

would result in another depression.
which would have sad results.
The Secretary said that the Tag OF
the next three months might increase
the pain" and bring about demand
from the people for quick and big
dose of imitation"
The Bureau of Agricultural Economics
N statement issued before the Sec
retary's press conference, estimated the
gross farm income for the year at ap
proximately $6,360 900 900, as compared
with $5,l43, 100000 in 1882. This esti-
mate was based on the assumption that
there would be continued improved de-
mand for farm products.
The trend Of farm prices in the next
few months will be an important factor
in determining the gross income Of
farmers for 1898, since farmers market
ings are usually largest during that Pc
riod of the year" the Bureaus state
ment said Should industrial activity
improve during the remainder of this
year, a further increase IN consumer
demand for farm products is expected.
The Bureau has assumed there will
be some further improvement in busi
ness activity during the next few
months. but at a somewhat more mod
crate rate than the improvement from
MARCH through July.
Discusses Wide Topics.
Newspaper correspondents took the
Secretary through long discussion OF
farm and industrial prices, the N r. A.
program as related to the farm pro-
gram. and imitation.
He said there still Is q material dis
parity between farm and industrial
prices. Using 100 as the index Of farm
purchasing power on March 4, he said
it rose to 142 by July IS. but has now
receded to between 100 and 125. Asked
II he could see time when this dis
that he could. but predicted it would
continue for three months
THE industrial commodity rise will
continue until higher wages result In
an increased purchasing power that will
bring up the level Of farm prices" he
said.
Most Of the gain in farm purchasing
power he declared. has been in grains
and cotton. There has been little In
crease in dairy and live stock products.
he said. which still are dragging tho
bottom. He declared part Of this dis
parity within farm commodities itself
products never sank as low, compared
to pre-war values, as grains and cotton
prices.
He predicted that industrial prices
would be higher for the next three
months, but that they could be checke 4
and perhaps lowered Immediately the
initial drive is ended and the N. r. A.
officials have had an opportunity to
overhaul the codes.
Public pressure manifestly will cor
rect disparities." he said.
Asked If the commodity dollar"
which has been advocated by farm
leaders and q number of presidential
advisers, would bridge the gap between
agricultural and industrial prices or not,
Secretary Wallace replied:
1T will narrow the gap in grains and
cotton, but might not do so in the case
Of live stock, dairy and other nom
export products. It would raise the
price of all products some, but the non
export products would not come up 50
high In the case of debts. hxed
charges and taxes. 1t would enable the
farmer Tve :, p meet his obligations more
Viewed - q Balance.
Secretary Wallace said the whole pro-
gram must be viewed in the light OF a
balance" which the new deal has not
vet brought. This balance must be
maintained 1T all times, he said.
The Secretary said that If wages 60
up in proper relation to costs OF
production under the N. r. A. program,
the country will get considerably in
creased purchasing power Tor all farm
products, which would tend to bring the
desired parity for agriculture.
Imitation" he said, will tend to-
ward that balance in some respects, but
if imitation went beyond that point 1t
would start fresh depression, and the
results would be sad indeed.
II am not an anti-tnf1ationiSt up to
certain point. But we must think in
terms Of the balance in all commodities.
It we increase pay rolls without in
creasing profits, the ultimate effect Will
be good for agriculture. But we will
experience q three months lag In farm
prices, which may increase the pain 50
much that the people will say. give us
quickly big dose Of imitation"
When asked what would be done to
check the rapidly rising tide Of in
dustrial prices, Secretary Wallace said
Il do not presume to speak for Gen
johnson and N. r. A., but feel con-
fident that when the code making cam
paign Is over there will be q general
overhauling Of price conditions. Public
pressure is bound to exert itself In the
long run to overcome discrepancies"
Referring to the next three months
when the disparity between agricultural
| and industrial prices will continue to
broaden, the Secretary said 1t was i'm
possible in great forward program to
move abreast on all lines at the same
time, and disparities naturally will
arise and exist unpleasantly for a time
Harrison to Confer Here.
JACKSON, Miss, September 9 R)-
Senator Pat Harrison left for Washing
| ton tonight to discuss rational infia.
| ton measures with President Roosevelt
which he said should be applied i'm
| mediately.
The senior Mississippi Senator said
he will present several proposals fod
imitation, which ne said held promise
Of bringing the South millions Of
dollars"
| TENTS USED AS SCHOOLS