The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-09-23
HOPE TO LIFT farm
PURCHASING POWER
TO ELIMINATE GAPS
Scheme for Supporting Cotton
Prices wilt Be Spread All
Down Line
PLAN ARTIFICIAL BOTTOM
Roosevelt spurns Imitation But
Sees Need for lmmed-
late Action
PLAN ARTIFICIAL BOTTOM
Copyright, 1883, BY IN. Associated
Preso)

tCOpyf1Snt, 1SS0, ~ 1n7 hSSUCsASe0
Press)
: washington, Sept, 23.-Extension Of
the administrators plan for sup
porting cotton prices Of 10 cents q
pound to other major farm products
Saturday became the immediate OBJ
jective In the governments efforts
for lifting farm purchasing power
quickly to keep pace with industrial
price boosts.
The program will take the form Of
q gigantic effort to place "a bottom"
under farm prices through extension
Of credit wherever it can be definitely
coupled with production control.
This was disclosed as officials OF
the agricultural adjustment admins |
tration, jubilant over the cotton plan,
centered their efforts on the subject
with their hopes for prompt relief for
agriculture at the highest point In
the last three months.
Control Is Insurance
Production control Is regarded BY
farm officials as insurance for the
governments loans, and as assuring
an influence on the supply Of COM
modify SO as to assure improvement
Of demand.
They believe this feature viii take
the credit plan definitely out Of the
class Of arbitrary price fixing and IS
distinct from sterilization efforts un-
dertaken by the old farm board.
Both Of these methods, they assert,
ignore excessive supply and overpro-
duction and would be doomed to fall
ure because Of the potential high pro-
ducing capacity Of agriculture.
Men high In the emergency organ
izationS Of the government are saying
now that something must be done
soon to prevent such . spread between
prices and purchasing power as might
again freeze trade and possibly In
crease unemployment.
What Is happening, as they see 1t.
Is that the rapid inclusion Of industry
and trade under codes which bring
higher labor costs Is increasing the
purchasing power Of too small share
Of population. Making too small an
inroad into the unemployed army
while at the same time making neces-
sary higher prices for the goods which
everybody, including the farmer. must
have.
No Initiation for Present
The president Is represented by in
formed sources as determined that
currency initiation shall not be re-
sorted to for the present.
He Is concentrating on expanding
credit and Is studying approaches to
capital expenditures.
With public works slowed down be.
cause Of countless difficulties, Roo
sevelt's assistants have been look
ing for possibilities not only Of break
ing through this jam but Of develop
ing spending by railroads and other
big users Of steel and heavy material
for new equipment. But the central
effort Is to get money flowing out Of
banks directly or through government
aid and expenditures.
Friday night President Roosevelt In
approving the momentous agreement
by which producers Of 70 per cent Of
Americas soft coal signed to deal with
the United Mine Workers after John
L. Lewis had signed up 100000 Of their
men. made the condition that all Of
its terms should apply to n-union
men or members Of other unions
equally with Lewis miners.