Detroit evening times. (Detroit, Mich) 1921-1958, 1941-02-18
Higher Loans
Plan Urged
Stfietef Control Aske d
TO Cut Production
BY PAUL MALLON

WASHINGTON, Feb. Is. -
" The American Farm Bu-
reau Federation. which fire.
quently has served as advance
agent for prospective Roosevelt
farm policies, has been adj
vocating new higher-loan.
stricter-control plan.
The impression has been Gre
ated that this is the usual early
echo of what the President will
one day say. The idea is merely
something Mr.. Roosevelt men,
toned to Ed O'Neal, AFBF pres
ident, in conference last Fall.
FDR's own farm planners in
sist their Spring program is
fairly well settled and probably
will be the same as last year.
Mr.. Roosevelt has asked Con-
gress for the same amounts. Fall
loans, therefore, cannot be mitch
higher. Furthermore, the agri-
culture department has set
higher quotas than originally
intended, 10 oblige the defense
commission, which has been
afraid war necessities might
cause shortages. if production is
held down too much
Whatever new program is
telling upstairs, therefore, will
not be put into effect before
1912. The powers-that-be here
are obviously delaying until
some of the war uncertainties
have cleared.
As MATTERS now stand, il
"A looks like the AFBF plan
has the best chance of ultimate
adoption perhaps sometime next
Fall. The income certificate
processing tax plan has been
advocated, but the treasury is
opposed AS result, AF'BF APP
parently has dropped il
Milo Perkins. chief OF sur
plus marketing. is urging ex-
pansion of the food stamp plan
as the answer. but agriculture
department doubts its suffi-
Cheney.
The AFBF plan would dras-
tfcaffy increase penalties on
farmers. perhaps double them.
IN an effort 10 keep production
down 10 consumption needs.
Then it would increase loans
from around 50 per cent of par
lty twhere they are now to pos
sibly IS per cent in those years
in which the crop was below
normal.
Non cooperating farm r 5
would be brought into line with
the lure of the high loans.
Jointly, large export subsidy
would be paid TO keep the world
price low and encourage exports.
ONERNMENT economists are
~ not much interested in
the nervous breakdown OF the
stock market . jittery lot of
people in Wall Street, they say
Their market last col
lapSed when the Germans in
vaded Holland but this caused
the biggest domestic business
expansion in history.
The dark. long-ranGe future
is what has appalled, the finan-
clal martS at time when Amer
lean business is reaching I'M
precedented heights. Half the
horizon is clouded with the pos
sibility of an early tsix months)
end of the war through collapse
of the Hitler invasion of Eng
land and consequent stoppage of
rearmament. installation Of labor
governments. and a world New
Deal. The other half is heavy
with forebodings of Hitler VIC
tory.
In front of all is the evidence
that such firms as General Mo-
tors. making large earnings with
unprecedented activity, is being
taxed so much its dividend cam
not be~increased. And further
increase in taxes is in the maxi
ing here.
TIIE New Dealers arc unwor-
L ried however, because they
feel these filters cannot go much
further. Many stocks are now
/ selling for much less than 10
times their earnings General
Motors is selling for just about
10 times. which is considered a
very conservative ratid). They
know that taxes will cat up
most or all the new profits. but
this is what they intended.
Meanwhile. they will continue
to ride the investment bankers
and other financial interests
without the slightest relaxation
of pressure.
Wall Street will not even get
a cold towel out of Washington
now.
II - a IL 1853