Evening star., 1938-10-16

all the wheat produced on their acreage
allotment by farmers cooperating in the
farm program. A certain portion of this
wheat could be made available for do
mestic consumption at price that
would get back what the Government has
paid for it.
"Other wheat, produced by non-co-oper-
ators. could be taxed enough to deprive it
of any competitive price advantage. Any
surplus would be available for export to
maintain our fair share of the world trade
in wheat or to maintain an ever normal
granary. Such 4 plan would mean vir-
tial monopoly by the Government Of the
Nations wheat-marketing system But at
least wheat production could be prevented
from skyrocketing and prices could be
fixed in such 4 way that they would stay
fixed"
That is socialism, socialism based on pro-
duction and marketing control. 1t is not
Mr.. Wallace's idea Of the correct approach
to solving the farm problem; but the Sec
retary is apt to offer the socialistic plan to
combat the drive for the two-price, foreign
domestic program.
Admission Of Shortcomings.
The other two-price system the Secre-
tary is ready to launch now-one price in
the market for ordinary buyers, another
price in a Government market for poor
buyers-is an admission Of course, that the
results of the old program have not meas
ured up to its aims, that the dilemma Of
surpuses of 1888 is still dilemma in 1888.
Production exceeds domestic demand. Large
foreign production has reduced the Amer
ican farmers foreign market.
The most distressing surplus problem to
which the reorganized Agriculture Depart
ment has to apply the second New Deal is
the cotton problem. Cotton, Interestingly
enough, was the chief single crop problem
when the Roosevelt administration took Of
reported:
World carryover Of American cotton In
the 1928 season was 100000 bales
about two and one-haf times the normal
carryover. 1t is difficult to imagine more
impressive evidence of the extent to which
the capacity to produce cotton has overshot
the demand. Before the World
War the cotton situation was pretty well
balanced. Production was increasing both
in the United States and in foreign coun-
tries, but so was the demand World con-
sumption Of American cotton fell in 1929-30
to 100000 bales, as compared with
100000 bales or more in each OF the
three preceding years. Cotton consump-
ton fell heavily in the United States. This
country, as the worlds largest source OF cot
ton, found itself burdened with a crush
ing surplus"
The depression of the early 30s has lifted,
but the cotton problem is still acute. Mr..
Wallace said in September. 1888:
The present carryover Of more than
$4,000, 900 bales is even . little larger than
the carryover OF 1882"
1887 Crop Most Disturbing.
Most of the surplus is due to the tre-
mendous 1887 crop. The surplus Of 1888
resulted from farmers planting for
foreign market lost in depression and in
tariff wars What does the surplus Of
1898 come from? Mr.. Wallace gave his
answer in q speech to cotton growers at
Fort Worth, Tex:
This big crop (of 1880 was due to ex-
ceptional growing weather. But it was
due also to the fact that the Supreme Court
decision Of 1896 had destroyed the cotton
production control program, and farmers
had planted 100000 acres more than
they had been planting under the old
Triple-A"
But while the cotton surplus in 1888 is
equal to the surplus of 1928, the cotton
farmer Of 1898 is better of than the cotton
farmer of 1892 according to Agriculture
Department figures. The department esti-
mates that cotton growers income this year
will be 1865 ,000. 900, which is Silt 100000
less than in 1887, but s44O, 100000 more
than in 1882. About $2e5 90, 900 of the 1888
income comes from the Government
t13o 100000 In price adjustment pay