Evening star., 1937-11-08
WALLACE REPEATS
|PLEAFOR GRANARY
Adequate Corn Reserve for
Use in Years of Scarcity
Urged in Talk.
BY the Associated Press.

By the Associated Press.
INDIANAPOLIS, Nov. 8.-Establish-
ment Of an ever-normal granary-an
adequate reserve of corn to be set aside
in years of plenty to be drawn on In
periods of scarcity-was advocated
again today by Henry A. Wallace, Sec
retary of Agriculture, as the answer to
corn belt droughts which disturb the
Nations economic stability.
Wallace. in prepared address on a
national radio network outlined his
corn crop producing and marketing
proposals to farmers and their repre-
sentatives from Illinois, Michigan.
Ohio, Kentucky, North and South
Dakota, Wisconsin, Missouri Iowa,
Kansas. Nebraska, Minnesota and
Indiana.
The Secretary of Agriculture empha-
sized that the problem Of corn produc-
ton and marketing was closely linked
to livestock raising, chiefly hogs, and
soil conservation in protecting the corn
belt in years to come.
Recalls Previous Efforts.
fhcSoLiii6 picNlOuS governmental
efforts at corn crop control, Wallace
asserted. "any one who faces the facts
with an open mind must come to
these conclusions:
First, that, that as things are TODAY.
it is unfair to subject farmers alone
to unlimited competition; second. that
there is no magic way Of reopening
quickly our big export markets; and
third, that corn belt farmers cannot
afford to rely on chemistry for quick
solution Of their problems.
All OF which," he said. leads tn
this fourth conclusion. The best wav
now open to deal with the corn prob
lem Is through cooperation Of farm
ers IN program that will iron out the
cycles of glut and scarcity; create an
ever-normal granary giving farmers
and consumers better protection
against food and feed shortages due
to drought; stop the ruthless destruc-
ton of soil which has resulted from
cut-throat competition among farm
ers; and safeguard agriculture. busi-
ness and labor against the disaster of
farm price collapse.
Says U. S. Aid Necessary.
TO do these things" Wallace con-
tinued, farmers must have the helm
of their Government. Social action
to accomplish them is fully justified
because such a program is vital to the
public welfare"
Wallace asserted present falling
prices have hurt farmers, because
hogs now being sold we're fed on dollar
corn"
THE extremely high level of the last
few months was due mostly to the
great drought of 1886 coming on the
heels of the "a drought" Wallace said.
This level could not be maintained.
especially with business slackening and
consumer buying power weakening.
Even before the good corn crop OF
this year has had an opportunity to
affect hog supplies. the price has gone
down materially and is already below
parity.
Hog Price Slump Danger.
IF this years good corn crop should
be followed by crops as large or larger
than this one, and if there should
be further decline Of consumer pur-
chasing power, farmers easily could
be faced again with the calamity of
SO hogs.
The only way to guard against
the disaster Of drought years." WAL
lace said, SIS to provide for carrying
more grain over from the good years
to the bad. The fact that we usually
have had only 170,000,0O0 bushels
carried over is serious reflection on
the economic setup in the corn pelt
and the Nation"
Wallace estimated an annual carry
over Of about 35o,0oo,o0o bushels
would be necessary to establish an
ever normal granary that should
work like a reservoir"
The Secretary proposed referendum
in the corn producing States to de-
termine the desire for a surplus corn
sealing program.
The conference was called BY Gov.
M. Clifford Townsend of Indiana TO
sound out opinions of Midwestern
farmers and businessmen on proposed
legislation to be laid before Congress
at its forthcoming special session.
Governors of three other States
Nelson G. Kraschel of Iowa, Lloyd C.
Stark of Missouri and William LANCER
of North Dakota-accepted invitations
to attend.