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["Lon J. Rombough" <lonrom@hevanet.com>]

Don't know about the trunk, but the leaf is definitely peach leaf curl, Taphrina deformans.  It's a fungal disease and most common in cool, wet spring weather.  We have it here in Oregon constantly.  The main control is lime-sulfur spray before midwinter.  After a certain point in the winter the bud scales loosen and the spores get down into the buds.  Keep up your winter dormant spray and you can often get away without any further control.  There are also some resistant cultivars.
-Lon Rombough
Grapes, writing, consulting, my book, The Grape Grower, at http://www.bunchgrapes.com  Winner of the Garden Writers Association "Best Talent in Writing" award for 2003.
On May 30, 2006, at 9:14 AM, Mark or Helen Angermayer wrote:

Hi,
I wonder if someone could tell me what's wrong with this peach tree.  It is
a "White Princess" peach I've had for about 3 years. There is a red growth
on some of the leaves.  Can you tell from the pictures if it is bacterial or
fungal?  Also, I don't know if it's related, but there are some vertical
lines in the trunk  that exude gum.  This spring I noticed some loose bark
and cut it away and found these vertical lines partially healed.  I sprayed
this tree with copper last winter.

Here are the photos:
http://www.nafex.org/uploads/p1010044.jpg  60K
http://www.nafex.org/uploads/p1010043.jpg  185K
http://www.nafex.org/uploads/p1010045.jpg  58K