Evening star., 1938-10-11
SURPLUS BUYING
PROGRAM LAUDED
Wilcox Sees U. S. Action as
Benefit to Consumer
and Farmer.

How the Federal Surplus Commod-
ities Corp. is trying to stabilize agri-
cultural prices, increase farm incomes
and feed the unemployed needy was
described last night by Francis r.
Wilcox, vice president of the agency
and director of the Marketing and
Marketing Agreements Division of the
Agricultural Adjustment Administra-
ton, in speech on the National Ra-
dio Forum, arranged by The Star and
broadcast over Nationwide network
Of the National Broadcasting Co.
Mr.. Wilcoxs address follows:
When thousands of families are sud-
denly made homeless and helpless the
first problem is food-food for hungry
children and for grown-ups, too.
In recent weeks, in both the North
east and in the area of Charleston,
S. G., wind and water combined
brought death and destruction to two
important sections of our country, cut
ting of transportation and commune
cation. But there was plenty of food
for all who needed it,
Big supplies of beans, -four, dried
milk, dried fruits and canned goods
stored in warehouses by the Federal
Surplus Commodities Corp. were
opened up Immediately for distribution
to the needy. Other agencies organ
lied relief work as rapidly as possible
but the stores which the corporation
had on hand were needed to meet the
immediate emergency.
Each emergency-whether it arises
from severe storm, flood, drought,
or from widespread unemployment
brings with 1t a relief problem. In
these emergencies, the Federal Sur
plus Commodities Corp. has been
able to furnish State relief agencies
with supplies which were surpluses
on farms and in many cases would
have gone to waste because un-
profitable market conditions
The need for food supplies in a
disaster is a temporary problem which
dramatizes human suffering. but the
daily needs Of the unemployed attract
less attention. Day in and day out,
State welfare agencies are supplying
food to approximately 2,5oOOOO relief
families.
Part Of Farm Program.
Many Of you are familiar to some
extent at least with the work of the
Federal Surplus Commodities Corp.
in distributing surplus food products
for those on relief. I think you will
be interested also in the need for
this work and in how the activities
of the Surplus Commodities Corp. fit
IN with other phases OF farm program
activities and with other branches of
the work of the Department of Agri-
culture.
Under the plan Of reorganization
announced last week by Secretary
Wallace the work Of the Federal Sur
plus Commodities Corp. is to be closely
integrated with other marketing activ-
tiles Of the Department of Agriculture.
The activities of the corporation, to-
gether with the marketing agreement
work, are to be under the direction of
Jesse w. Tapp. I have served with
Mr.. Tapp in this work for the past
three years and will continue in the
same capacity.
The closer coordination of the work
OF the Federal Surplus Commodities
Corp. with other marketing work will
bring greater opportunity for more
effective service.
The responsibility of the Federal
Government in helping States meet
their relief needs was definitely rec
ognlzed five years ago when the Fed
eril Emergency Relief Administration
was established to acquire and dis
tribute foodstuffs for the needy,
The relief activities of this organi-
cation were taken over by the Federal
Surplus Commodities Corp. almost
three years ago. The legislation I'M
der which the corporation now oper-
ates makes available annual funds In
~ amount equal to 30 per cent of the
annual customs receipts. Among the
specified purposes for which the funds
can be used the most important is
encouragement Of domestic consump-
ton of farm products.
Corporation Procedure.
In carrying out this purpose the
corporation buys farm surpluses which
it distributes to State relief agencies.
The State relief agencies in turn dis
tribute these surpluses to needy per-
sons unable to buy sufficient food.
The price-destroying effects of un-
wanted surpluses are removed, the
relief burden Of the States is light
ened and more food in consumed by
the people who need it.
Back in the days of the 1892 depres-
sion we saw mountains of wheat and
other foodstuffs on our farms and long
bread lines in our cities. There was
starvation in the midst of plenty.
There was hunger in our cities while
surpluses on oura farms were being
wasted
Government distribution of surplus
commodities for relief use is not q new
idea. The precedent for it was set by
Congress many years ago. For exam
pie, in 1882. when as a result of Fed
eral Farm Board operations the Gov
eminent became owner of large stocks
OF wheat and cotton, Congress ordered
millions OF bushels of wheat and sew
eral hundred thousand bales of cotton
to be turned over to the Red Cross
for relief use. In doing so Congress
recognized the desirability. under the
conditions existing at that time, of
finding a means whereby large num-
bers of consumers without buying pow-
er might use part of the big supplies
which had piled up and brought ruin
to wheat and cotton growers.
The Federal Surplus Commodities
Corp. operates under the direction of
the Secretary of Agriculture. The
functions of the corporation have q
definite place in the national farm
program which the department ad-
ministers. The surplus removal opera
tions which the corporation conducts
are part of the national farm program.
These operations are an important
part OF the whole farm program ac-