The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1935-04-08
Dehind the Scenes
~ in Washington
Wallace Pins Hope for AAA ON Rainfall Cut In Tex
tile Production to Save High Cost Mills Fear
Farm Chseling.
WITH RODNEY BUTCHER

Washington, April s-secretary Wallace hopes kind
Otherwise, the AAA will be sunk.
Drouth conditions paralleling those OF last yeal
would make good the assertions Of those who insist the
farm program already has collapsed.
Even the administration would be tempted to Join
those who insisted the 1884 drouth punishment for
ransgression of divine law against crop reduction.
Given q break by the weather, however, AAA prob
ably will continue with great change Current political
attacks from cotton states and popular reaction against
high food prices aren't expected to grow strong enough
to interfere
AAA and processing taxes the best answer to
the farm problem the administration has been able to
think OF and the other programs suggested are too rad
cal for its present mood.
wallace has statistical hole ace which he thinks
will help stall off the cotton state senator's though he
isn't talking about it. Cotton exports to the
paniment of loud walls have fallen 60 per cent Of the
previous lo-year average.
But foreign consumption Of American cotton has
dropped to but 80 cent which indicates foreign buy
purchased heavily when cotton cheap and have
been using up large stores
EXPORT RISE EXPECTED
Exports, according to this theory. should be rising
again by April May Industrial exports have been
only 66 2/3 per cent of the 10-year average.
Southern senators are seeking high government
loan value on cotton abolition Of the processing tax
and an export bounty. Present indications they
won't get Of those things though the politicians may
be able to force higher loan figure than Wallace would
prefer.
Pressure year caused it to be set at IL cents
pound instead of TO- as Wallace wanted. Other things
being equal the loan price will be set next August at
about the market price the marketing year begins.
JAPANESE GOODS FLOOD IN
The per production cut for the cotton textile
mills is result of NRAs insstence on preserving the
existence of certain high cost mills which would be
forced out of business the laid no restraints
competition.
Contrary to what seems widespread impression, It
wasn't caused by flood of japanese imports Nor is
there any evidence that the processing tax cotton has
been important contribuory factor in the 1nduSryS
position.
in imports Of japanese goods has been start
ling enough. In fact the National Industrial Recovery
Board had the filters the other day when found that
imports Of japanese bleached cotton cloth had eaped
and bounded from $3.50 yards in January 1884, to $685.
600 in January, 1885, and 4,34s,ooo in February.
But cotton cloth imports are still only about one
half of per cent Of domestic consumption And Japan
Is the only country which has continued to buy its nor
NAL quota Of American raw cotton.
FEAR FARM CHISELING
Drouth in the belt where rainfall thus far has
been normal. would be about the worst blow the AAA
could think Of now when the western edge OF the wheat
belt is the chief prospective sufferer.
Another cut Of billion bushels In the corn crop
would mean meat prices so high that the theory OF crop
reduction probably couldn't stand the strain.
Current higher prices have also led AAA to fear
secretly that will be harder in the future to keep farm
Combined with relatively unrestored city purchas-
ing power this might lead to q partial return Of the
surplus conditions existent when AAA started
wheat farmers now tnat crop RESTRICTIONS nave Oeen
abandoned and they to receive benefit payments for
reductions they don't make may insist that the arrange
ment be continued-though they're signed up for an
anticipated reduction program next year.
The reason AAA continued to pay them was that It
had signed up with them for three-year program.
Meanwhile, Wallace and his men find some comfort
in the belief that meat prices aren't going much higher
If any. Housewives finding substitutes for meat
many people can't buy it any more and this is the
of year when consumption Is most likely to begin
falling off in any The combination Of factors tends
to keep down prices
Copyright. 1885, NEA Service 1nc.)