Show European War Ware Deduces e uses Farm arm t Export Market Marlet Federal Government Plans a To Cushion Effect on Agriculture WASHINGTON Plans Plans to over over- overcome overcome come the unfavorable effect of the war upon American agriculture are being drawn up by the federal gov gov- government government government through the office of for for- foreign f foreign r- r eign agricultural relations While the war has been hurting the farmers agricultural department experts believe that when peace is resumed the effects after will be befar befar befar far worse They are convinced that farm prices will continue to suf suf- suffer suffer suffer fer unless the war lasts more than three years when increased foreign buying will begin to bolster the mar mar- market ket Complete governmental control of the economies economics of belligerents has marked the present conflict The wars in hi Europe and in the e Orient have bave assumed an economic charac charac- character character ter through the widespread use of blockade and counter Blockade Closes Markets l Allied naval blockade closed cen cen- central central central Europe's markets to American goods foods German occupation of Po Po- Poland Poland Poland land Norway Denmark Holland Belgium and France and the en en- entrance entrance entrance trance of Italy into the war barred American products from almost the whole of Europe Some of these na na- nations nations na- na nations had been among this tIlis country's best farm markets Agricultural exports were also se se- seriously seriously se- se seriously affected when the allies I pooled their economic and financial resources and centralized purchases through a government commission This effect was increased when Eng Eng- England England England land shifted as much of her food rood pur pur- purchases purchases purchases chases to her dominions as was possible She took this step to save her ber foreign exchange for the pur pur- purchase purchase purchase chase of war necessities British imports of cotton and wheat wheat this this country's two principal export crops has crops has dwindled greatly Secretary of Agriculture Henry A. A A Wallace estimates that exports of American agricultural products in inthe inthe the fiscal year which began July 1 will be at least 30 per cent below last year This will mark an 80 per cent decrease below the level attained in the first World war England's Market Continuation of the war through 1942 19 may force Great Britain to purchase a larger proportion of her herIt It agricultural supplies from the Unit Unit- 1 v ed d States The agricultural depart depart- department department department ment warns however that by this time the belligerents would be ap ap- approaching approaching financial exhaustion American agricultural products would be needed but nobody could pay for them It appears likely that both bel bel- belligerents b belligerents l- l and neutrals will find it r advisable or necessary to continue continue many of the economic controls es es- established established es- es established during the war the de de- department department de- de department added American trade can be recon recon- reconstructed reconstructed after the war only so far as asa asa asa a way is found to finance the trans trans- actions Foreign countries can pur pur- purchase purchase purchase chase American products only by exchange of goods or through the shipment of gold to this country The department points out that use of gold will be difficult because the United States has most of the worlds world's supply |