Evening star., 1933-12-17
$48,ODO,OOO COTTON
OPTIONS T0BEPA|D
Secretary Wallace Declares
Checks Will Be Mailed
= About Christmas.
BY the Associated Press.

BY the Associated Press.
BIRMINGHAM, Ala, December 10
Secretary Henry A. Wallace of the De-
partment of Agriculture said today
checks for s4S,O00,00 would be mailed
to holders of options on Government
cotton either just before or just after
Christmas" and urged hearers to stick
behind the national program, no matter
WIN Is hurt"
Here at the invitation of the Cham
ber Of Commerce, Secretary Wallace
spoke before an audience which jammed
the Municipal Auditorium and over
flowed on the lawn outside. Officials
estimated the crowd at 5000 persons.
The Secretary brought terrific out
burst of applause with the announce
ment at the end Of his prepared speech
that checks FOR s48,000,000 to holders
of options on Government cotton would
be mailed either before or Just after
Christmas"
Cotton option checks will represent
the difference between the Scent level
for the staple and today's market
value. Cotton growers were given the
choice of options or higher acreage
allowance in the cotton reduction pro-
gram this year.
Community Backing Urged4
Secretary Wallace prefaced his re-
marks with the statement that the ad-
ministration plan for farm relief must
have the backing of community senti-
ment in every farm community or face
the alternative of failure.
Il feel we are all children Of tre-
mendous transition period" he said.
I'VE are facing future which may be
infinitely rich or infinitely disastrous
I'VE must see the national program
through after it has been decided
through mature elaboration" he went
on. We must see it through, no mat
ter who is hurt because those hurt by
it will be better off than if we had no
program"
After outlining the administrations
cotton plan for 1884, which provides
acreage reductions Of approximately 40
per cent and maximum payment TO
the cotton grower of $18 per acre for
land taken from normal cotton plant
ing, the Secretary commented briefly on
the Bankhead proposal to limit cotton
production by bales rather than by acre
age.
Mentions Ginning Allotment.
"The plan has been suggested and I
believe it ought to be thoroughly dis
cussed by the growers, whereby a gin
ming allotment will be granted each
farmer" the Secretary said.
In discussing the cotton growers
plight in recent years. Secretary Wal
lace said cotton in January of this
year brought the farmer II cents per
pound less than it should have brought,
to give him purchasing power of the
pre-war level
Attacking the high tariff as one of
the contributing factors to low farm
prices, the Secretary said "the fact that
we had become creditor nation was
completely ignored as we raised tariffs
and declined to accept foreign goods in
large enough quantities to recompense
us for the money loaned abroad.
Discusses Trade.
"Our huge foreign loans during the
years 1928 and 1928 simply made bad
matters worse; in effect, We paid Europe
to buy from us, then refused-by means
OF high tariff on industrial goods-to
let her pay us back. I hope we have
learned that foreign trade. like internal
trade, Is fundamentally an exchange of
goods and services and that we cannot
sell unless we are also willing TO
buy. . ~
Secretarr Wallace cited three steps
which he said should be taken in the
farm program. These were a lowering
OF the tariff to permit other countries
to sell to us, in order that they might
also buy; compulsory control of farm
production. and the use of a processing
tax to keep domestic prices above the
world level to enable American farm
products to compete in foreign markets.