Evening star., 1934-12-30

II N I EEDCb lOOuSlull ID Dtlllb
'\ destroyed" is the dismal
VI cry sometimes heard when
4 the limitation of agri-
cultural products is carried
on by the Agricultural Adjustment
Administration.
Such alarm is not conjured up when
other branches of production employ
similar methods in order to avoid de-
moralized markets.
Automobile factories and steel plants
have potential production of millions
of cars. million of tons of steel. When
demand calls for their prodnct, wheels
spin night and day. With the shrink
ing of demand, potential productive
ness lies idle.
This is not destruction of goods.
In this light the limitation of agri-
cultural production is only in accord
ance with time -honored precedent in
other businesses.
Says Scarcity Not Goal.
Crop reduction, as carried out under
the agricultural adjustment act of
1888. did not attempt to create a
scarcity in the fashion of monopoly
which might attempt to put produc-
ton below the effective demand and
so bleed an abnormal price out of the
I'cornered goods.
In 1884 100000 farmers signed
contracts with their Government and
received approximately half a billion
dollars. In return for this sum these
farmers co-operated in controlling
farm production. The operation of
the act, combined with the effects of
the drought, reduced huge price
depressing surpluses, but left adequate
supplies for our needs. Though the
drought was the most devastating in
our history, farm income for 1884 is
$4,000 100000, as compared to s5051,-
100000 last year and S4.328 900 900
the year before. BY January, 1895.
collection of processing taxes. which
take care Of benefit checks TO farmers,
will total more than the money paid
out
Plenty is not inherent in sodden
surplus. A balanced abundance, which
maintains control between produc-
tion and demand So as to obviate the
incubus of price-depressing surpluses,
was necessary as a first step toward
practical, adequately distributed plenty
1885 Plan Outlined.
In the program for 1885 the A. A. A.
continues toward the goal of orderly
production and marketing of agri-
cultural products. Though the aim
remains the same, the plan is modified
to intrench the gains made in 1884
and to allow an adjustment to condi-
tions brought by the working of the
plan and the drought.
The coming year calls for controlled
expansion toward balanced abun-
dance. 1t is stop-gap year, breath
ing spell in which to survey the long
time situation and to prepare for the
eXigencies which loom for agriculture
on the 1886 horizon.
The acreage cuts below the base
level years are, for all programs thus
far determined, relaxed to bring more
land into cultivation than in 1884.
The controlled expansion Of 1885
stands out in this announcement of
the coming years plans.
In 1884 IS per cent cut in acreage
below that of the three preceding
years was aimed at in wheat. In 1885
only 10 per cent cut in acreage is
the goal.
Last year a 20 per cent reduction
was aimed at in corn; 1885 calls for
only 10 per cent.
In 1884 80 per cent reduction in
hogs was sought; in 1885 10 per cent
reduction will meet the situation.
A Is per cent reduction from the
base acreage of cotton producers for
1885 is compared with the 40 per cent
reduction in 1884.
There is a limit beyond which re-
striction of farm products benefits
neither farms nor consumers. Drastic
reduction might increase price to dizzy
heights and yet, due to falling off of
consumer demand, not give farmers an
increased gross income.
We have apparently reached that
ultimate limit on restriction. I'm
provement in farm commodity prices
and income cannot continue without
increased demand, either at home or
abroad. Either a renewal of indus
trial production and prosperity at
home or a revival of foreign demand,
or both, must provide the next step.
Cites Industrial Decline.
The importance of stepping up in
dustry is clear when it is realized that
agricultural production for consump
tion last year, with the restriction OF
the A. A. A. and the drought, was
only IS per cent under 1929, while in
dustrial production was AZ per cent
below the 1929 level.
The continuation of the A. A. AS
program is vital to maintaining the
balance between production and de-
mand which has so far been gained.
The drastic reduction phase of agri-
cultural adjustment is now largely be-
hind us. It constituted the first emer-
gency attack upon the agricultural
problems which had resulted from
mistaken economic policies during the
preceding decade. For 10 years debt
ridden farmers had sent their crops
to markets below fair exchange
value.
Toward the end of this period they
climaxed their woes by producing the