Evening star., 1934-12-12
'BALANCEDPLENTY
E. IS WALLACE'S AIM
Secretary's Report Warns
Against "Scarcity Eco
nomiCs" as Price Aid.
BY the Associated Press.

~
Secretary wallace defended the
agricultural adjustment program to-
day in his annual report to President
Roosevelt as one Of economic democ-
racy" aimed at balanced abundance
His report dealt principally with the
work of the Adjustment Administra-
ton prior to June 80, scientific work
of the Department Of Agriculture and
emergency activities carried out dur.
ing the year in cooperation with
other Government organizations
Emphasis was placed in 1t on thu
fundamental philosophy behind pres.
ent activities, particularly those o.
adjusting farm supply to demand.
If restriction of farm production
conflicts with democracy, it should be
abandoned, he admitted, but mans
right to live transcends all other con-
siderations. In the present state oi
he Nation, we must enlarge our ides
of democracy, or risk losing what
democracy we have.
Sees System as Check.
"A purely political democracy
would not survive complete eco
nomic breakdown in the United States
any more successfully than it has done
elsewhere"
Farmers were united behind passage
of the adjustment act, the Secretary
declared, and are still supporting and
participating in its functions through
county associations. There Is worse
danger to democracy than the extern
sion Of Democratic principles to farm
ing"
Wallace reiterated his dislike for re-
ducing farm output and said reduc-
tions to meet loss of foreign markets
and surpluses of 1888 were "only a
very partial and paradoxical answer
in the long run to the crying need
which is briefly expressed in the
phrase, balanced abundance"
One path to this goal is the restora-
tion Of industrial purchasing power
to the end that consumers may be
able to pay higher prices for higher
consumption Of farm products.
FRONT Is Problem.
The problem Of the farmers now
"is to retain fair and reasonable
profits without falling into the pit OF
scarcity economics he said in
warning against such a course.
Now that farmers enjoy powers
which are fairly comparable with
hose Of city industries with respect
60 production and price control, II
becomes necessary for all of us to
spend more time thinking about the
road to balanced abundance instead
of competition for profits induced by
scarcity"
Production control, he added, can
| not be judged solely by the amount
by which the spread between actual
and parity" prices is narrowed, since
there are many costs, human as well
as monetary. social as well as eco-
nomic." Any future course looking
toward relaxation of control through
increasing domestic or foreign pur-
chasing power must be considered
in the light Of such costs"
Among such costs he mentioned
social discipline" sometimes. called
'regimentation";;' denial of future op.
portunities to farm to some individuals
and the necessity for taking care o1
them in other occupations, competi-
tive elimination of men and acres
displacement of crops when land Is
converted from one use to another
and adjustments in farm practices
and capital structures. Compared
with such intangibles, the money costs
of farm adjustment are secondary,
he declared.
Defends Price Increase.
Turning to the consumers interest
in farm recovery and objections which
have arisen over increased cost o1
food because of crop adjustment and
drought, the Secretary pointed oul
that restoring farm purchasing power
increases farmers ability to buy in.
dustrial goods.
Consumers gain nothing in the
long run by getting farm goods al
less than cost" he said. In one
form or another, they have to pay the
full bill eventually. Agriculture mus.
be maintained, and to maintain it, the
prices paid for farm products must
cover the costs"
Wallace said the end Of emergency
crop reduction is in view and in the
future production must be adjusted
to demand, with farmers keeping step
with the growth of demand" instead
of running ahead of 1t as was the
case prior to 1888.
Scorns Export Prices"
In his report, Wallace took the
position that America would err should
1t seek to retain export markets by
holding down its farm prices. Dis
cussing cotton, he acknowledged wish
to hold foreign trade, and added this
means that we must continue to sup
ply it at moderate prices.
But we do not wish to keep prices
ruinously low on the assumption that
any improvement through the elimina-
tion Of the surplus will cause q loss
OF our foreign markets.
I'VE must not, therefore, permit an
increase in foreign production to
stampede us back into overplanting. "
An asserted possibility of Southern
cotton planters losing their huge ex-
port market has been used as one
of the principal arguments against
the Bankhead curtailment act and