Evening star., 1948-02-08
Plans to Cut u. S. Grain Buyinq
Leaked Out Before Sharp Break
In Market, Anderson Reveals
Secretary Declares
Traders Saw End
Of Big Purchases
By MoIcoIm Lomborne, Jr.

BY Moleolm Lomborne, Jr.
Secretary of Agriculture An
derson disclosed last night that
information on Government
grain procurement and alloca-
ton plans reached grain markets
In advance of his public an
nouncement Thursday.
The grain trade, MI. Anderson
said, then was faced with "the
realization that we were about
through with heavy purchases"
Reports of what we were going
to announce got out" he told re-
porter.
The market broke sharply Wednes-
day. The following afternoon Mr..
Anderson formally announced March
export ALLEGATIONS and reported that
only 100000 bushels of wheat had
to be purchased to meet the export
goal of 450,000,000 bushels of wheat
by June 30.
He said there was a chance that
the Government might be able to
buy an additional 50,000,000 bushels
of wheat by mid-year, thus bringing
the export total to 50o,000,0o0
bushels.
Hope Calls for More Buying.
Secretary Anderson's disclosure
last night was made in commenting
on a statement by Senator Taft,
Republican, of Ohio. Senator Taft
had interpreted Mr.. Andersons an
nouncement on plans to buy addi-
tional grain as deliberate attempt
to keep prices high. Senator Taft
said 1t looked to him like an attempt
TO create an air of false prosperity"
for the presidential election cam
paign.
Meanwhile, another Republican
made an urgent plea that the Gov
ernment reserve wheat buying.
Chairman Hope of the House Agri-
culture Committee, urged the Com
modify Credit Corp. to resume
wheat buying before prices are
further demoralized."
Mr.. Anderson said the first draft
Va VIC Oil announcement do
drawn up a week before it was re-
leased and that it was cleared with
the Commerce and State Depart
ments and the International Emerg-
ency Food Committee.
I'VE have not made any secret of
our grain position" he declared.
Denies Attempt to Rig Market.
The Secretary said that since the
market had been going down for
some time, I'VE felt we could make
the announcement with minimum
effect" He added: eve were not
trying to rig the market"
AS to Senator Tafts comment that
the department seemed to be trying
to keep prices artificially high, Mr..
Anderson said, nothing could be
farther from the facts. The last
thing we intend to do is keep prices
up"
Commenting on Mr.. Hopes appeal,
Mr.. Anderson said no decision had
been reached on when the Govern
ment would get back in the market
and that it probably would not do
any Duyln6 tomorrow.
He observed that Il wish Senator
Taft and Mr. Hope would get to-
gether."
Kansas Farmers Concerned.
Mr.. Hope said he had received
calls and kilograms from wheat
farmers as we'll as bankers in his
State (Kansas) and added that
they are concerned about the de-
cline In prices"
Mr.. Hope commented that Com
modify Credit Corp. sis caught in
the political angle" and that if the
agency starts buying it will have
Senator Taft and Senator Ferguson
Republican, of Michigan) jumping
on them"
In a statement, Mr.. Hope de-
clared: 'The weakness of the wheat
market during the past few days
has been accentuated because of the
absence of any buying on the part
Of the Commodity Credit Corp.
Sees Nothing to Justify Decline.
From recent high prices wheat
has dropped as much as go cents
bushel." he said. Il do not be-
lieVe that any one benefits when
prices are demoralized to this ex-
tent. In the interest of price sta
bility here at home, in the interest
Of the European Relief Program
and In the interest of using wheat
for human food instead of live
stock, I believe 1t is important that
the Commodity Credit Corp. resume
Its buying activities before prices
are further demoralized."
Mr.. Hope said there has been
speculation as to whether the
slumping grain market was a
temporary recession" or whether it
marked the beginning of a decline
IN commodity prices generally.
He asserted there is nothing in
either the domestic or world situa-
ton which would justify such a
sharp decline as has taken place
in the last few days.
Admits Statement Is "Bearish."
Figures indicate clearly, he added,
that the world wheat supply is far
below minimum food requirements.
While crop prospects in Europe are
better than year ago they are
worse in this country, he added.
Mr.. Anderson said the announce
ment that the Government was
(See WHEAT, Page A-7.)