U.S. FARM PRODUCTS

Hokitika Guardian, 19 October 1933, Page 5

U.S. FARM PRODUCTS

TO BE CURTAILED

N.R.A. MOVE TO IMPROVE PRICES

(United Press Association—By Electric Telegraph—Copyright;.

WASHINGTON, October 17

A two years’ programme for a sharp curtailment in the production of the corn and hog farms, was started by the secretary, (Air Wallace), of the U.S. Agricultural Department to-day. This is the latest and most extensive effort- to improve agriculture prices. It involves a potential Governmental expenditure of five .hundred bullion dollars, and it aims at decreasing the hog production by 25 per cent., and the corn acreage by 20 per cent.

A processing tax is to be levied on hogs for a two year period. The rate will he 50 cents per hundred pounds at (the start, increasing, gradually until February 1, ' after which it will be two dollars per hundred pounds, or two cents per pound live weight for the remainder of the period. A tax of about 30 cents on the corn used in the processing of food products, but not On corn fed to animals, will also go into effect.

WHEAT AND COTTON ADVANCES

MARKET OPTIMISM RESULTS

WASHINGTON, October 17

Additional purchases of wheat, through the coming winter, reaching possibly as high as forty million bushels, were reported to be in contemplation by ‘ the Government so as to supplement its purchases through the new Surlus Relief Corporation. Loans to the cotton producers will also be made, provided that they join in an . acreage reduction and control programme for next year. A general optimistic effect on the American markets lias been produced by Government action regarding cotton and wheat. To-day it was announced the Government has purchases in excess of one million, bushels of wheat for human relief, and that the Reconstruction Finance Corporation has made an allocation of 250 million dollars for eight to ten cents .per pound loans on cotton. These decisions have produced a general optimistic-effect. Stocks and commodities have rallied' sharply, the former recovering :one to three points on yesterday’s losses. Wheat jumped four cents -per bushel, later becoming .relatively steady, and the general gain being two cents. Cotton was up two dollars a hale. The latter commodity was further stimulated by the Agricultural Adjustment Administration’s announcement of the purchase of about forty thousand bales of cotton for May-July contracts, in connection with its own routine market operations, There is an advance of eighty cents an ounce in the price of gold, and a moderate recession in the price of the dollar in foreign exchanges dealing which have also helped to simulate markets generally.