Evening star., 1937-10-01
A.A.A. 'SELF-SUSTAINlNG'
PROGRAM IS RECALLED
Middle Course to Adjust Produc-
tion, Yet Fill Needs Here
and Abroad Is Aim.
BY the Associated Press.

in the world cotton market"
He emphasized the administration
view that the Government should
supplement the market price with pay
ments to cooperating farmers on an
allotted production goal. probably
financed by a reasonable processing
tax"
Pointing out that the South would
md it difficult to get large subsidies
from the general Treasury year after
year." he declared 'it may be that the
farmers of the South may want to
ask Congress to go back to the prin-
ciple Of letting the commodity itself
bear the load of providing the needed
funds"
The processing tax on cotton in
effect under the agricultural adjust
ment act" he added, made the
cotton programs nearly self-fnancing
for two and half years up to the
time the Supreme Court nullified the
tax and handed millions of dollars of
TAX money over to the professors. If
processing tax is considered favor
ably as a source of funds to finance
cotton program. the tax should be
moderate in amount"
Permanent Solution"
The permanent solution to the COM
plex cotton problem, Wallace told a
meeting attended by agricultural Of
flcias OF nine cotton growing States.
lies in middle course" which would
continue such moderate adjustment
OF production as would preserve and
build up the fertility Of the soil and
still allow production of at least as
much cotton as the markets of this
and other countries have been accus-
toned to take"
Such policy. he averred, offers
the best hope for enabling the South
to earn a bigger income. Increasing
the income Of the Cotton Belt, he said.
would help solve the share e-cropper
problem, and the problem of disease
and lack Of education among some
groups. and almost every problem that
has drawn the attention of reformer
and sociologist to the South"
Huge cotton crops and huge exports
are mockery if they do not mean
fair return to the producers, he
said. $50 are the low crops and high
prices If they fail to meet the need
OF the cotton farmer and those de-
pendent upon him for enough money
to feed, clothe and educate his
family"
| Outlines Middle Course.
His middle course" he said, would !:
| l. Continue "such moderate ad-
justment of production as would pre-
serve and build up the fertility of
the soil'' and still allow production
of at least as much cotton as the
markets could take.
2. Encourage greater consumption of
cotton in ways that would raise the
standards of living of all of our
people.
3. Provide for increased produc-
ton Of home food and feed crops.
| 4. Serve notice to the world the
United States intends to keep its place
| in the world market and supplement
the market price with payments to
cooperating farmers on an allotted
production goal.
S. Provide authority for loans to
prevent price collapse.
6. Provide authority for marketing
quotas on the entire crop, to be used
after a referendum of producers in
| time OF emergency as a further pro-
| lection against disaster from crushing
| surpluses.
The address reviewed criticism that
the. recently-announced 9-cent loan
and price-adjustment payment of 3
cents pound on this years crop-the
| latter to be made on only IS per cent
OF each producers 1887 base-and said
| farmers taking advantage of the offer
would realize at least 9 cents a pound
on 7s-inch staple and middling grade,
substantially below what we would
all like to see as the price of cotton"
Cites Reduction Benefits.
But, he reminded, cotton farmers
should not forget "that relatively IA
vorable prices" in other commodities
have been caused by reduced crops,
due to drought and other causes.
He replied to administration oppo-
nents' criticism that "the entire ex-
pansion Of cotton production abroad"
has been caused by the various triple
| A programs, saying that the increased
| foreign production followed long
time trend that had its beginning be-
| fore the A. A. A.
He laid the present crisis to in
creased domestic production Q6,000,-
900 bales In the South this Year, on
q moderately-increased acreage and
greatly increased yield, the increased
| foreign production and the failure Of
increased foreign and domestic con-
sumption to keep pace with both for
eign and domestic production that in
dicates . world carryover by next
August Of 100000 or 100000
bales.
Wallace said the solution does not
lie in continued loans and rigid pro-
duction control as . means Of main
tanning price unless farmers "are
willing to say goodbye to their export
outlets and go on domestic basis"
On the other hand, he said, empha-
sis on volume might lead to big pro-
duction abroad and push prices down
toward "the scent level Of 1882 or
even lower"