Evening star., 1939-01-19
u. 5. Hints al Steps
To Get operation
On Cotton Program
May Adopt Economic
Measures; Conference
Is Proposed
BY the Associated Press.

oy tilt AsSoClutco Eieos
Administration leaders indicat-
ed today the United States might
have to adopt economic measures
to win international cooperation
on program designed to help COT
ton and wheat producers.
A proposal that the principal
producing nations meet in an in
ternational conference to work out
such a program was advanced yes
terday by Secretary Wallace after
a White House visit with President
Roosevelt.
Such a program, the Secretary
suggested, might provide an "equi-
table division" of the world markets
and elimination Of such trade prac-
tices as price-cutting and dumping.
Back of Secretary Wallace's pro-
posal was a broad hint, farm Off
cials said, that unless other coun-
tries joined in a cooperative effort,
the United States might take steps
to enable American cotton exporters
to meet foreign prices.
5O,46O,OO0 Bales on Hand.
Existence of a record supply of
5O,46O0O0 bales of cotton, or almost
twice as much as is normally con-
sumed in a year, has depressed
prices. Half of this supply is
American cotton.
Farm officials said world prices
would be considerably lower now
except for the American cotton pro-
gram, embracing production control
and withdrawal of 100000 bales
from market channels under Gov
erhment loans. To the extent this
program bolstered world prices. they
said, growers in Egypt, Brazil, In
dia, China and other cotton coun-
tries have benefited.
On the other hand, they declared,
the American loan program has
tended to give foreign producers an
advantage in world markets. Ex-
ports from other countries have
gone up this season while those of
the United States have dropped 40
per cent.
The loan program, officials eX-
planned, has pegged American prices,
thereby making it easy for foreign
producers W ullOcl Sell.
Several Courses Studied.
There were suggestions that the
United States might adopt one of
several measure to regain exports.
It could subsidize exports, as it is
doing in the case of wheat, or it
could release some of the loan cot
ton. This latter action, officials
said, would tend to lover American
prices and make it easier for ex-
porters to make sales.
Farm officials said they believed
the use of a subsidy program to
hold this country's fair share" Of
the world wheat markets was largely
responsible for plans now being
made in London for an interna-
tional conference on the wheat
problem.
Before inaugurating the subsidy
program last summer, Secretary
Wallace suggested such a confer
ence. But he added that the United
States, with its ample resources"
had no intention of surrendering
Its share Of the export markets,
which he estimated at 100000, 900
bushels.
Senator Bankhead, Democrat, of
Alabama, who attended the White
House conference with Secretary
Wallace, said he was drafting legis-
lation to cancel some $40 900 900
in Government loans on 100000
bales OF cotton and hand this back
to farmers who agree to reduce per-
mitted production this year. He
said that with present prices near
Z cents a pound, the Government
already had encountered heavy
losses on the loans.