Evening star., 1935-12-11
WALLACE DEFENDS
INCOME SUBSIDIES.
Says Redistribution of U. S.
Earnings to Poor Is Aid
! to Production.
BY the Associated Press.

BY the Associated Press.
Secretary Wallace today pictured
redistribution of income" as prime
necessity which the Nation cannot
escape.
The Agriculture Secretary, in his
annual report, favored an>increase in
the proportion Of the national income
that goes to poorer persons. He held
this would increase consumption and
make for expansion of production by
factory and farm.
Wallace laid stress on expansion, in
contrast to A. A. AS crop reduction
pfbgrams, which officials have de-
scribed as emergency measures only.
Wallace contended these emergency
Programs we're made necessary by high
tariffs.
He said complete industrial and
agricultural balance and coordination
iseesSential to full economic recovery.
Partial coordination" he wrote,
Undertaken from the standpoint of
Individual industries, must give place
to. a general, comprehensive Co-ordina-
ton aimed at increased production
and increased pay rolls if We are to
have full employment, full production
and higher living standards.
How to achieve coordination for
balanced expansion is the problem
which awaits solution"
Consumer Protection Lauded.
Federal action taken to protect con-
Eumers, to provide economic security
and to rediStribute tax burdens, he
said, should help toward continued
expansion in both production and con-
sumption. These policies tend to in
crease the proportion Of the national
Income going to persons in the lower
income brackets and therefore to in
crease consumption per capita"
Later, in discussing the need for in
creased international trade, Wallace
said:
Here. then, is what we must
desognize The redistribution of in
come is not a proposal, but a neceS-
sity. In one way or another, 1t re-
suits automatically from any OF the
courses open to us.
I'VE cannot avoid it by ceasing to
produce for export and by limiting
our imports to necessities. That is to
cripple agriculture, to make perma-
nent the necessity for costly farm re-
hef, to compel disadvantageous urban
adjustments, and to create scarcity.
Unemployment Held Costly.
"The resulting unemployment in
wolves heavy public expenditures. In
such circumstances, We first reduce
the national income and then re-
distribute the reduced total to avert
disaster.
THE other course open to us in
wolves q redistribution Of income like
wise, but under happier conditions
With production stimulated through
international trade, the total national
income would increase. and though
the increase would have to be dis
Eibuted so as to increase consumption
per capita, the operation would raise
fhe national standard of living. BY
this means, we would be balancing the
national consumption with the ma
tional production or its equivalent
and on a rising scale"
Wallace said it was muddy think
ing" for "city dwellers to blame the
Agricultural Adjustment Administra-
tion for crop limitation"
Actually, the original cause is tht
tountry's refusal to allow agriculture
70 regain its foreign market" he said
1--WE fail to. import goods enough tc
enable foreigners to buy our agricul-
tural products.
Lower tariffs could restore this mar
Bet, and 1t is unreasonable and unfair
TO blame the effects of crop limitation
6n the crop-control machinery rather
than on the tariff policy which makes
the limitation necessary"
Ample Food Supply Seen.
In his report Wallace forecast an
ample supply of food for the Nation
during the current crop year.
The supply of most food crops, "
the Secretary said, "is fully adequate,
certain classes Of wheat being the only
exception. There are rather large crops
Of rye, beans, potatoes, sweet potatoes
and sugar beetS.
Potato production is about average; !;
Che production of buckwheat and rice,
though below normal, is sufficient; we
have average fruit crops rather evenly
distributed. except that citrus produc-
zion is light in the Gulf States; the
production of vegetables for canning
Is close to or above previous records.
and supplies of market vegetables and
truck crops are moderately heavy in
some areas and excessive in others.
Dairy production this year was sub