Evening star., 1934-08-09
j. S. TO MAINTAIN
COTTON CUT PLAN
Soaring Prices as Drought
SIaShes Yield viii Not
Deter Program.

BY the Associated Press.
Soaring cotton prices found the
Government sticking today to tts
drastic control plan and moving 10
assist planters whose crops have been
seriously injured by drought
A forecast OF a 9.le5 .000-bale yield
this year--the lowest with one excep-
ton since 1896-sent prices up nearly
$3.50 a bale yesterday.
The estimate was / .265. .251 bales
under the tax-exempt production per-
mitted under the Bankhead control
act, causing a question as 10 whether
the act--the most far-reaching expert
ment in compulsory curtailment ever
tried in this country-might not be
abandoned.
But Secretary wallace said.
NO We are going ahead full steam
with the Bankhead act"
Less Reduction Next Year.
As for the farm situation in general,
Wallace said that because OF "the
most widespread drought by far we
have ever had" 1t seems likely that for
major agricultural products the Gov
ernment will seek very much less"
crop reduction next year.
There are three possible ways
whereby cotton farms may collect on
the 1884 crop.
/, They seemed likely to get
higher price than for many years.
Prices rose to IA cents pound for
the first time since 1880. This was
expected to cause particular rejoicing
in the Old South, east of the Mis-
sissippi. where drought damage has
been lightest and where the yield APP
parently is going to be better than
average.
Can Sell Certificates. @s9.
2. They will receive about $780,
000. 900 In rental. benefit and parity"
payments from the Government. OF
this. $34.691, ,288 already has gone out
to 936.138 farmers.
3. Farmers who harvest less than
their quota will be allowed to sell
tax-exemption certificates they do not
need to growers whose production Is
above allotments. This is expected to
help out the Southwest, where the
blight OF aridity is worst.
Secretary Wallace ventured .
trough guess" that the value of the
certificates would be between SIS
and $40 per bale. There was a slight
possibility. he indicated, that the Gov
eminent itself might buy certificates.
but he emphasized no such plan was
under discussion yet.
Is Millions for Texas.
On the basis Of the top estimate OF
certificate value, Wallace said, Texas,
where production has been sharply
cut, might get around $15.000,000 or
more from that source, with other
States in the drought area benefting
proportionately. f-
Wallace said the short crop might
bring the carry-over close to normal.
which is between SCOT. 900 and 6,ooo.r
900 bales. Reducing the surplus was
the primary aim both Of acreage re-
duction and the Bankhead bill
He said nothing would be done
about plans for next years crop until
the desire of Southern farmers was
made known.
Now that we are getting down to
normal carry-over II "a time 70 dis
cuss what share Of the world market
we want" he said. so far, we have
been able TO dodge that point because
Of the large carry-over,"
Farmer Must Decide.
The Secretary added whether the
Southern farmer wanted to maintain
his 5000, ,000-bale share in the world
market, or whether he wanted to cen-
ter more on the domestic market,
would determine In large measure
what was to be done about future
crop control. -.
The blazing destruction Of the
drought went side-by-side with the
A. A. A. adjustment program In cut
ting this years yield. Due both to
the voluntary campaign under which
farmers were paid to reduce acreage
and the Bankhead bill, the acreage
In cultivation on July was estimated
at only 28,l24,0 900 acres, the smallest
since 1905. Abandonment had re-
duced this TO 27,37l 900 August /.
The report, noting the severity Of
dry conditions in Texas, Oklahoma,
Western Arkansas and sections of
Louisiana, said fiatly more and worse
damage was in prospect unless the
drought lifts. II it does, however,
more than average Improvement
was predicted. in the light Of the
drought-resiStant qualities OF both
the crop and the soils in those areas.