Evening star., 1939-05-26
u. ). 10 Call Farley
For World Agreement
To Solve Cotton Ills
Wallace Reveals Poet Will
Be Sought on Prices and
Division of Markets
By the Associated Press,

0y tHe hSSOClaCeu fIeSS.
LITTLE ROCK, Ark, May 26.-
Secretary Wallace disclosed today
that the United States would call
an international conference this
summer or fall to seek ways of i'm
proving cotton prices and dividing
world markets equitably among all
exporting nations.
A State Department inquiry re-
garding desirability of an interna-
tional agreement, Mr.. Wallace said
has brought favorable replies from
all important cotton-exporting coun-
tries.
Until such an international agree
ment is put into operation, the Sec
retary declared it was necessary for
the United States to embark on a
program of subsidizing exports to
regain this country's fair share
of world markets and to help dis
pose of record surplus.
Bounties Indicated.
Despite sharp opposition raised in
the Senate and in the cotton in
dustry, Mr.. Wallace indicated the
administration proposed to pay
bounties on cotton sold abroad if
Congress provides necessary funds
Whatever may happen in the
future" he said, "the export SUBJ
sidy plan is very much alive today
The plan is designed to expedite
foreign sales of cotton, which re-
duce surplus stocks of about 14000,-
600 bales, of which IL 100000 are
stored under Government loans to
producers.
In speech prepared for a meet
ing sponsored by farm organizations
and the Little Rock Chamber of
Commerce, Mr.. Wallace advanced
a flve-point program for solution
of the perplexing cotton problem:
In addition to the international
agreement, the program includes:
l. Continuation of Government
price-fixing loans as "a protection
for the farmers price of cotton"
2. Continuation of payments to
producers for cooperating with crop
control programs.
3. Increased efforts to expand do
mestic consumption.
4. Enactment of processing taxes
to serve as continuing source
of revenue" for benefit payment to
farmers.
Mr.. Wallace explained that his
advocacy of the subsidy proposal
contradicted views he expressed at
Fort Worth, Tex, last fall.
Since that time conditions have
changed" he said.
He contended that there was mo
clear evidence" at that time that the
Government loan of 8.3 cents a
pound would hold the price OF
American cotton above world prices
and thus discourage exports.
Wallace Defends Plan.
Challenging critics to submit a
plan that will do the job as well
and at less cost" the Secretary de-
clared apparently the real objec-
tive" of administration critics was
destruction of the entire agricul-
tural program"
High tariffs on manufactured
products, discriminatory freight rates
and price-determining powers of the
great corporations, Mr.. Wallace de-
clared, have combined to put cotton
into a more difficult situation than
any other major farm product except
possibly wheat"
Before the World War cotton
farmers received 3 per cent of the
national income. Last year, even
with benefit payments added in
they received only IA per cent
There are a million more people
living in cotton farms of the South
today than before the war"
Denying the bounty plan was
dumping" the Secretary said it was
designed to "offset the loan by pay
ment on our exports sufficient to
make American cotton as competi-
tive with foreign cotton as our pres
ent supplies warrant"