The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-03-21
WALLACE LIFTS
CURB ON SPRING
WHEAT ACREAGE
Removal of Restrictions Is
Likely to Check Rise
in Food Prices.
ByCnfte1 Preu

By CHits1 Press
WASHINGTON, March I'll
Housewives had cause to hope 20
day that bread prices will be held
20 reasonable levels and that soar
ing meat cost will be checked.
Menace u drought and a grain
shortage. presaged by a gigantic
dust storm gripping the Middle
West. compelled Secretary Of Agri-
culture Henry A. Wallace to remove
all restrictions on the 1885 produc-
ton OF spring wheat.
His announcement came amid ma
tional anxiety over rising food
prices. The government. he said
owed a duty 70 consumers and could
not take a chance on weather.
In the Chicago wheat pits. where
trading largely regulates the prices
farmers receive and the millers pay
for grain. his announcement evoked
mixed reactions. making today''
market reaction uncertain. Veteran
La Salle-St traders conceded that
its ultimate effect would be u
cheaper bread prices, but pointed
20 clouds Of Kansas dust sWirlinl
through the Loop as potent psyche
logical factors in market trends.
Another Drought Feared
Little spring wheat is produced in
the region most affected by the
storm, however. East of the Mis-
sissippi where a large part of the
spring wheat crop is grown, con-
ditiOns are excellent.
Another drought, officials con-
coded. would drain the nations
wheat supply 70 dangerously low
levels and send the price of bread
soaring.
Retail bread. -four and macaroni
prices, despite the record small 1884
wheat crop. have increased less than
1 cent above a year ago, AAA figures
showed. Officials we're agreed, how
ever, that another drought would re-
suit in a much sharper rise.
Mr.. Wallsce's action put him in a
new role. that Of champion of the
consumer. Hitherto. he had ranked
the farmers interests first. A de-
cline in wheat prices probably will
follow the removal of planting re-
strictions and the consequent larger
crop. but consumers will benefit.
Livestock to Benefit
The farmers percentage of the
consumers dollar is now 81 per cent
of what it was in the five years pre-
ceding the World War. Mr.. Wallace
said. In 1882. the percentage was
only AZ per cent. Mr.. Wallace's es-
innate included AAA crop control
benefit payments. without which the
farmer gets 70 per cent as much
as he did Of the 19O9-1914 consumer
dollar.
Another effect of Mr.. WaIlace's
action on the cost Of living will be
that cheaper wheat will result in
farmers feeding more to livestock.
Herds will be enlarged and meat
prices. now IS 70 So per cent higher
than a year ago. will be reduced.
Farmers participating in the AAA
acreage curtailment program who
accept the offer to return to full
spring wheat production must agree
to make the same reductions next
year as previously planned this sea-
SON They may be asked TO make
additional reductions.
The AAA will pay the same
amount for participation in the
wheat program as if the curtaiIments
had been made. so the total of bene-
1T payments to be distributed this
year will remain unchanged. In addi-
ton 70 the benefits. farmers will get
the full market price on an in
creased quantity Of marketed wheat.