Henderson Daily Dispatch

Says State Had Highest 1934 Prices Wallace, at Raleigh Says N. C. Only One With Farm Income Above 1929 Level

Raleigh, Feb. 25 (AP) Returns North Carolina farmers received for flue-cured tobacco in 1934 resulted in this State being the only one in the Union in which farm income last year exceeded that of 1929, Secretary of Agriculture Henry A. Wallace said here today while in Raleigh "to talk over the situation concerning tobacco with the farmers."

Wallace addressed a mass meeting of tobacco growers.

Earlier, at a press conference, he discussed reports that the AAA was deliberately setting about to lower the

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price of tobacco this year, and pointed out that the AAA only has power to attempt to maintain a parity price for a farm community.
If all farm products were selling at as high a price as flue-cured tobacco the emergency which necessitated the establishment of the AAA would be over, and the machinery governing crop control would be discarded.
"The purpose of the AAA is to maintain over a period of years a price representing a just price and parity price over the domestically consumed portion of the crop, whatever it may be," Wallace explained.
He said that in order to gain this long-range objective, it might be necessary for some one year of the period to allow an increase in production, so as to depress prices toward the parity level, but that the long-time aim of the AAA was to gain and maintain parity prices in all farm products.