Evening star., 1939-08-05
Credit for Economy

With but two pieces of legislation
awaiting final action, the adjourn
ment hour for the second session OF
the Seventy-sixth Congress Is at
hand. One of these legislative items
is the third deficiency bill, involving
principally an additional subsidy OF
S119,OOOOOO for the farmers, and the
other is the conference report on
amendments to the Social Security
Act designed to freeze the pay roll
tax at it's present level for three
years and liberalize benefits under
the measure.
If these two matters are examined
in relation to their bearing on the
spirit of economy which has been
so conspicuous during the past three
weeks, a striking contrast will be
noted between the attitudes of the
Senate and the House.
The S119,OOO,O00 item in the def
cheney bill, if finally approved, will
be used to bolster the capital of
the Commodity Credit Corporation,
which is supposed to raise and main
tain prices of farm products. OF
itself it is not large item in rela-
ton to the total of appropriations.
But it is large, and unreasonable
as we'll, in view of what this Congress
already has done for the farmer.
The Agriculture Department sup
ply bill for the next twelve months,
signed by the President on June 80,
gave Secretary Wallace $773,000,000
for subsidies to farmers who CO.
operate with crop and marketing
programs. The bill also provided
S2O3, 100000 for disposal of surplus
products, partly through the medium
of an export subsidy. In ALL budget
authorities estimated Secretary Wall
lace would have approximately two
billion dollars to spend and lend in
this fiscal year on programs de-
signed to help agriculture.
1t is significant that total OF
nearly s35O,oOO,OOO of these funds
was added by the Senate after the
House had voted against the in
crease and in the face of the Presi
dents opposition. But, despite this
unprecedented generosity with pub
lie funds, Mr.. Wallace now demands
an additional $119,OOO,00O on the
plea that the agricultural program
will collapse without it, and the
Senate has granted his request. On
the face of the record, it is difficult
to escape the conclusion that Mr..
Wallace in the final analysis has
nothing to offer the farmer but
more and bigger subsidies.
The social security amendments in
their present form are desirable and
should be passed. It has been eSti-
mated that the freezing of the pay
roll tax at the present figure of two
per cent will save taxpayers about
S1,7O0,OOO,OOO during the next three
years, while the added benefits will
amount to some ST 100000 900 in the
next five years. The need for broad
ening of benefits has been estab-
lished, but with business in its
present depressed state it would be
unWise to permit the scheduled au-
tomato tax increase to become
effective
The House already has approved
the conference report on these
amendments and the matter will
come before the Senate today. It
was in the Senate that the amend
ment increasing the Federal contri-
button for the benefit of the poorer"
States originated, and it was this
amendment which had deadlocked
the conferees until they decided yes
terday to abandon it.
Fairly appraised, the proposed in
crease did not merit approval and
the House deserves commentator
for standing it's ground against it.
1t is to be hoped that the Senate,
in considering this final measure
today, will also approve the confer
ence report.
1t is impossible to foretell what
the House will do with the Senate's
version of the deficiency bill. The
economy bloc probably will make
fight against the commodity credit
item, and it should be defeated,
but with the rush for adjourn
ment in full swing it is more than
likely that the bill will be passed.
But, should this prove to be the
case, there will be no mistaking the
fact that, on the whole, credit for
the economies effected during this
session, as we'll as those attempted
opd 1oct r,,uct ho oi,,o,, to tbo rJo,,,o