Imperial Valley press., 1933-10-26
Government
TRIES To END
FARM STRIKE
Crop Loans Pegging Price OF
Corn Offered By AAA As
Part Of Double Program.
PLEDGE MILLIONS In AID
Plan Adopted Following Con-
ference Between Roosevelt
And Secretary Wallace.
BY FREDERICK C. OTHMAN
United Press Staff Correspondent


WASHINGTON, Oct. 26. U.pj =
The government IS first direct ac-
| tion to break the national farm
strike, by partial surrender to the
strikers demands, today took the
form of crop loans pegging the
price of corn, with a promise to
pump money to famers, "not in
driblets, but in millions.n
The Agricultural Adjustment Ad-
ministration drive ahead both its
permanent and emergency pro-
grams by announcing the extension
to corn of its crop loan plan al
ready applied to cotton.
Emergency loans will be made on
warehoused corn on the basis of
so cents bushel for No. 2 Decem-
ber corn at Chicago to farmers
who cooperate with it's $350,0OO,O 900
permanent reduction campaign de-
signed to balance corn and hog
production with demand.
The plan applies only to the re-
eion of most active farm rebellion.
Loans will go into states having
farm warehouse laws, thus restrict
ing the eligible farmers to those in
Iowa, Illinois, Minnesota, South
Dakota and Kansas, focal points
of the strike.
The plan was drawn up after a
conference between Secretary of
Agriculture Wallace and President
Roosevelt.
The loan value was fixed 2A
cents above the closing price on
the Chicago market. Now a farm
er, instead of shipping to market,
can take his corn to a state ware
house and receive the pegged price.
Strikers had demanded 67 cents
a bushel on three-fourths of the
Warehoused corn. The AAA pointed
out that the plan of giving so cents
on all corn, instead of ST cents on
three-fourths of it, was equivalent
to the strikers demand, and was
calculated to yield farmers the same
net sum.
Already Aiding Cotton
Already applied to cotton as a re-
suit of demands for initiation, the
plan has yielded southern growers
S110,0 100000 in checks being mailed
out this week as loans at 10 cents
a pound to farmers who sign cot
ton acreage reduction agreements.
The cotton loans, Administrator
Peek declared, have leased the
crisis in the south.''
The money to middlewestern
farmers on corn, he said, will not
be just ga shot in the arm,'' but
will assure in future years "a more
solid basis for agriculture. -
Drought coupled with "shame-
fully low prices,'' he said, had
made the midwest the economic
sore spot of the nation, and now
the government proposes to "bring
money to the farm country, not in
driblets, but in Millions
Peek cited the Roosevelt currency
policy, negotiations to start large
scale trading with Russia and
China, and the new credit policy
as likely to bring about this result.
The policy is not designed, he said,
to pour money in at the top
through banks, insurance compan-
les, and railroads, but to get money
cut to the base of the pyramid, in
the grass roots.
DES MONIES, Iowa, Oct 26. (U.P)
Opposition to the farm strike
called by the Farm Holiday associ-
alton developed today among mid
western farmers as state and fed
eral officials prepared for a con-
ference to discuss agricultural re-
lief.
Eight hundred farmers from
southwestern Iowa, led by sher-
iff, defied pickets stationed at the
Missouri river bridge near Platts-
mouth, Neb., and escorted so live
stock trucks to market today.
Sheriff DeMoss of Glenwood,
warned the pickets, who had turned
back all livestock shipments pre-
viously, that any attempt to inter-
fere with the convoy would result
in "seriouS consequences
The group of farmers expressed
confidence in the national admin
iStration s ability to solve farm
problems if given time, and charg-
ed that most of the farm strike
pickets were non-farmers and
tranSientS.
Farm leaders. Including Milo
Reno, president of the Farm Holi-
day association. endorsed the call
of Gov. Clyde l.. Herring OF Iowa
for a conference of representatives
of 10 midwestern states to be held
here Oct. 30.