AMERICAN WHEAT

Southland Times, Issue 21658, 21 March 1932, Page 7

AMERICAN WHEAT

DISPOSAL OF SURPLUS SUPPLIES. SALES CAMPAIGN IN EUROPE. (United Press Assn.—By Telegraph—Copyright.) (Rec. 5.5 p.m.) Washington, March 19. 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 Department of Agriculture, Mr Hyde, who told newspapermen that, though the plans were nebulous, there was definite hope of some such procedure being followed. Conferences on the possibilities are being held. Mr Hyde said that there was a possibility that part of the 200,000,000 dollars Farm Loan fund of the Reconstruction Finance Corporation would be employed in such a campaign. A resolution to make this fund immediately available has been adopted by the Senate and sent to the House. A later message states that Mr Mark W. Woofs, of Nebraska, a prime mover in conferences here to arrange credit to sell some of the Farm Board’s wheat holdings, said on Saturday that the contemplated sales were 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 the Farm Board controls, officials believe, could be sold to foreign Governments if satisfactory credits were arranged. That is why the Administration and Congressional leaders are seeking to provide adequate financing through the use of part of 200,000,000 dollars of agricultural funds carried in the Reconstruction Finance Corporation Act. Many foreign Governments have 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 Hyde, said on Saturday that the Administration planned the disposal of wheat and cotton surpluses abroad. “We do not contemplate dumping, but new markets will be sought,” he said. The secretary 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 made to result in benefit to farmers.

Meanwhile, the chairman of the Farm Board, Mr Stone, said the board contemplated no change in its wheat stabilization policy, and rumours that surplus wheat would be dumped on foreign markets was untrue.