"Nice Piece of Change"

With youthful Secretary of Agriculture Wallace at the controls, Domestic Allotment was wheeled out of its hangar last week for its first trial flight. The noisy warm-up of its administrative motors made a joyful sound to 1,200,000 U. S. wheat growers whose commodity had been picked for the initial experiment under the Farm Relief Act. The consuming public bated its breath to see how this new theory of economic flight would work. Was it to be one more expensive smash-up like the late Farm Board's attempt at price-pegging? Or was it to be really successful in upping commodity prices, stimulating the buying power of agriculture and thereby enriching the nation?

Before the take-off George Nelson Peek's Agriculture Adjustment Administration made two statistical decisions of primary importance. One was that current wheat prices were 30-c- per bu. below the 1909-14 average, so the Government's "allotment" to wheat growers would be 30-c- per bu. The other was that the U. S. consumes only five-eighths of its total wheat production, so the wheat grower would be paid on only five-eighths of his total crop. On tap in the Treasury was a $200,000,000 credit to get Domestic Allotment off the ground. Of this about $150,000,000 would be used for wheat. The Treasury is to get its money back by a 30-c- per bu. processing tax on wheat collected from millers.

Because this year's wheat crop is already on the way to market, it does not figure in the Domestic Allotment plan. But farmers will not have to wait until next year to collect their bonuses. As President Roosevelt is eager to put cash quickly into their jeans, a generous Government will pay them first and count on their performance to reduce production later. To get his subsidy, John Wheatman takes these steps:

First he joins his county control association to be organized by Government agents. With it he registers his average acreage and yield for the past three years. This is printed in his local paper for his enemies to disprove if they can. When his crop figures are approved he signs a contract with the Government in which he promises to cut his 1934 and 1935-production not more than 20%. The Government will teil him the size of the reduction later. The Government pays him two-thirds of his "allotment" before Sept. 1 and he collects the other third next year when the Government checks up on his planting, sees that he has performed his side of the contract.

John Wheatman raises an average of 1,000 bu. of wheat but gets paid only 30-c- per bu. on 625 bu., his ratio of domestic consumption. Before Sept. 1 he will collect $125. After next year's planting he will be eligible for $62.50 more.

Secretary Wallace was asked if farmers would join Domestic Allotment. Said he: "A gratuity of 30-c- per bu. for wheat is a nice piece of change.''

Three days later Secretary Wallace announced his cotton plans: A week's campaign to sign up enough growers to take 10,000,000 acres out of production by leasing them to the Government for $6 to $20 per acre. Only if the South overwhelmingly accepts this offer, will a 4 cent per Ib. cotton processing tax go into effect to pay the cost.

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