WHEAT AND COTTON

Otago Daily Times, Issue 21599, 21 March 1932, Page 7

WHEAT AND COTTON

AMERICA’S SURPLUS INTENSIVE SALES CAMPAIGN (United Press Association.) (By Electric Telegraph—Copyright.) WASHINGTON,' March 18. Official contemplation of an intensive sales campaign to place some of the country’s huge surplus of wheat and cotton in European and other countries was reported on Friday by the Secretary of the Agriculture Department (Mr Hyde), who told newspaper men that though the plans were nebulous there was a definite hope of some sucli procedure being followed, and that conferences on the possibilities were being held. Mr Hyde said there was a possibility that part of the 200,000,000d0t farm loan fund of the Reconstruction Finance Corporation would bo employed in such a campaign. A resolution to make this fund immediately available had been adopted by the Senate and sent to the House.

' WHEAT PRICES FALL,

WINNIPEG, March 18,

Reports that the finances of the United States Reconstruction Finance Corporation were to be employed in moving stocks of wheat to Europe ns part of the surplus, slicing campaign, knocked the feeble support from under wheat prices to-day, values closing down 2J to If cents.

DUMPING NOT CONTEMPLATED,

WASHINGTON, March 19, (Received March 20, at S p.m.)

Mr Mark W. Woofs, of Nebraska, who was a prime mover in the conferences held here to arrange credit and to sell some of the Farm Board’s wheat holdings, said on Saturday that the contemplated sales are to non-competitive markets such as China and the Orient, with no /thought of selling to Europe any more than the normal requirement from this country. Virtually every bushel of wheat and bale of cotton that the Farm Board controlled could be sold to foreign Governments if satisfactory credits could bo arranged. That was why the Administration and the Congressional leaders were seeking to provide adequate financing through the use of part of the 200,000,000 dollars of agricultural funds carried in the Reconstruction Finance Corporation Act. Many foreign Governments had made overtures to the board, but in most cases acceptable credit terms could not be reached. In a telegram to a southern cotton firm the Secretary for Agriculture (Mr A. M. Hyde) said on Saturday: “ The administration plans the disposal of wheat and cotton surpluses abroad. We do not contemplate dumping, but new markets will be sought.” He specified that no sale would be made except in an orderly way in accordance with the Farm Board’s previously-announced policy. Such sales would be constructive if they were made to result in benefit to farmers.

Meanwhile the chairman (Mr Stone) has said that the Farm Board contemplated no change in the wheat stabilisation policy, and the rumours that the surplus wheat would he dumped on foreign markets were untrue.