Evening star., 1933-06-15
$25Q,0D0,ODO SEEN
UNDER CROP TAXES
Government Plans to Reward
Farmers Who Agree to
Wheat and Cotton Cut.

Copyright. 1888 by the Associated rress)
The administration intends to raise
$3.50, 900 by processing taxes on
wheat and cotton, which it will levy
at their maximum size In a bold pro-
gram aimed to better long-range farm
prices by cutting down production.
The Governments plans provide that
most of the sum will be used to re-
ward farmers who agree to reduce
their output in concert with the Fed
eral drive to halt the piling up of
surpluses, long price-depressing prob
lem for growers of the two chief crops
Of the United States.
President Roosevelt has approved a
program, devised under powers pro-
vided by the new farm act, which Sec
retary of Agriculture Wallace will make
public tomorrow. A comprehensive
acreage curtailment program will be
launched Immediately for cotton. to
take out as much as 100000 acres
Of the crop now growing.
No effort will be made to cut pro-
duction of the wheat now nearing
harvest. Winter-kill and bad weather
have cut the prospects for this crop
down to approximate domestic needs
for the first time this century, although
there is expected to be carryover of
about 100000 900 bushels on July l,
nf
The wheat program, however, is to be
put into effect on Fall planting.
Watching Reaction.
Secretary Wallace today kept in close
touch with reactions of the wheat and
cotton markets to the news of his pro-
gram.
Many telephone calls and kilograms
were received at his office protesting
his plans.
An associate who refused to be quoted
said terrific pressure is being brought
to bear on the administrators of the
farm act to change their plans but
there is no sign of wavering"
Meanwhile, Wallace refused to deny
or confirm the authoritative reports Of
his plans and held to his intention to
announce his program tomorrow.
A meeting of the principal admins
traitors of the act including George N.
Peek, Charles j. Brand and Chester
Davis. was scheduled to BE- held this
afternoon when the reception Of the
announcement at commodity markets
was to be discussed.
Statement Is Issued.
After numerous calls seeking out
right information on the revelation Of
present plans. the adjustment admin
Stration issued this statement:
NO final decision has been reached
as to methods of making the agricul-
tural adjustment act effective for
either wheat and cotton and all state
ments as to the exact nature of these
plans are premature. We expect to
make decisions as to matters of policy
within the next few days"
1t was learned that matters still
undetermined are details of the meth
DDS OF administering acreage reduction,
which will be handled on a county
basis with committees to be established
in each, who will be responsible to
State committees.
The States committees for the most
rectors and State commissioners of
agriculture.
Date Remains to Be Set.
Wallace has completed details of both
wheat and cotton programs, except for the
few elements still open. One, subject to
change, is the exact time the taxes will
go into effect. He is authorized by the
farm act to levy them at the beginning
OF the crop year for each commodity.
That would be July l in the case of
wheat and August l in the case of
cotton. Both may be delayed until
August.
Tie tax on cotton is expected to be
4 cents pound, that on wheat 28
to 80 cents a bushel If prices of either
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