Evening star., 1934-08-15
PRESIDENT WARNS
j. s. WILL BATTLE
FOOD 'CH|SELERS'
Profiteering InexcuSabIe,
He Says-Vigilance on
Prices Intensified.
A. A. A. PRINCIPLE HELD
UNAFFECTED IN DROUGHT
$525,000,000 Appropriated for
Relief Is Expected to Be
Sufficient.
Nv the Associated Press.

met by Government action.
Vigilance Is Intensified.
He also said Federal agents were in
tensifying vigilance over the grain and
produce exchanges to prevent undue
speculation in food stuffs which might
jeopardize natural prices.
Answering an inquiry, the PreSi-
dent said the drought had had no ef-
feet upon the principle of the agricul-
tural adjustment act, which is to con-
troll production. Secretary Wallace
has indicated control would be re-
tanned over crops even though acreage
reduction might be relaxed next year.
Suspension of all processing taxes
and pegging the price Of cotton at
the present 13-cent level was recon-
mended to the President today by
Senator Bankhead, Democrat of Ala
bama.
Senator Bankhead, who is a men,
ber of the Senate Agriculture Com
mittee and author of the compulsory
cotton control legislation, stated en-
phatically at a White House confer
ence that the cotton control program
would be carried through. Secretary
Wallace joined in the meeting, which
took up every phase of the agriculture
situation.
Tax Principle Favored.
ct cannot speak for the admins
tration," said Bankhead, "but think
it is a very safe prediction that the
new crop control program for this
Government will be continued"
Bankhead said he thought suspen-
sion of processing taxes would have
a good psychological effect, although
he favors the principle of the tax.
The suspension could be made on
the ground that not as much money
would be needed to finance cotton
marketing and control next year,
Bankhead said.
The President said the drought had
moved up by two years the expected
time for disposition Of the surpluses
which have glutted American mar
kets.
He now is intent upon setting up
machinery to regulate a normal and
reasonable surplus.
With such a surplus in crops, the
President feels danger can be averted
of unduly forcing down prices by
speculation or of exaggerating prices.
Canada Hay May Be Bought.
Regarding another phase of the
drought, the President said the Gov
ernment might purchase hay in Can
ada. but he knew of no relaxation in
the regular tariff wall except for this
purpose.
The President said he hoped the
S525, 100000 already appropriated for
drough relief would be sufficient to
meet needs, but he added all of this
certainly would be spent.
He expressed no concern over an
excessive rise in food prices and said
latest reports showed an increase Of
about per cent in the last year.
He is confident of adequate au-
thority under existing law to treat
with "chiselers" and spectators on
the grain marts.
The President is considering addi-
tional legislation which may be neces-
sary to deal with the idea he eX-
pressed for maintenance of a normal
and reasonable surplus in crops.
A. A. A. Power May Be Aided.
1t was seen as a possibility today
that the drought disaster may help
strengthen the A. A. A. powers to
curb the middleman.
The Farm Administration lost a
spectacular fight in the last Congress
for amendments to the agriculture
adjustment act. Senator Byrd, Dem
ocrat, of Virginia led the opposition.
denouncing the legislation as broaden
ing the A. A. AS power so much
that Secretary Wallace could exercise
o Cars sway over all agriculture.
The A. A. A. officials countered
that the amendments merely clarified
existing powers to use licenses. Such
licenses could be employed to control
professors s"-firmS that manufacture
or handle agricultural products on
their way from farm to consumer
If food prices rise greatly, officials
said, public reaction may give new
impetus to the drive for the amend
ments in the next Congress. meeting
IN January. The authority as now
in the law is vague.
The Labor Department reported the
cost of food on the upswing, though
1t did not say what part the drought
played in the rise. For two weeks
ended July 81, it said, the level of re-
tail food prices was l10.4 per cent of
their 1918 average of 100. This is
5.5 per cent above year ago and is
the highest level of the past 80
months.
Reserve Plan Takes Shape.
A scheme borrowed from ancient
civilizations, reserves of food and feed
to meet lean years, took further shape
yesterday at a round of conferences
on the drought and its ramifications
Secretary Wallace has said several
times the normal carry-over of some
of the Nations principal crops might
be increased and kept at a higher level
than in the past just to meet such
situations as have occurred in the
wake of the dry siege.
The 'granary" proposal has not
been passed upon finally, but the pos
sibility was seen that the President
might make it official with his in
dorsement. =.