Evening star., 1940-02-26
Parity Funds Needed
For Crop Control,
Wallace Says
Worms Senote Group
New Price Depressing
Surpluses Threaten
BY the Associated Press.

BY the Associated Press.
Secretary Of Agriculture Wallace
told the Senate Appropriations Com
mittee today that failure to vote
farm parity funds .'or their equiva-
lent" might seriously hamper crop
control programs and create new
price-depressing surpluses.
In giving his advice he joined q
group of Senators who want to vote
$200. .000,0 for parity payments.
Economy forces are battling the farm
bloc, which may win Republican
backing.
"The high participation in the
program and the effective farmer
control over supplies in 1899 have
resulted in large part" Wallace
said, from the adequate incentive
offered by the soil conservation and
parity payments combined"
Warns of Big Production.
If parity payments are not pro-
vided. he declared, farmers will be
encouraged to return to big pro-
duction for markets that do not
exist"
The Secretary testified on the
House-approved Agriculture Depart
ment bill, which makes no provision
for parity funds. They are designed
to raise farmers purchasing power
to the 1904 level, and for the
program, Congress voted $225, 900 900
last year.
Recalling that President Roose-
velt's budget message had made no
specific recommendation for parity
payments, Mr.. Wallace said the
Chief Executive had expressed the
hope that higher farm prices would
make them unnecessary.
Early in the war, when farm prices
went upward sharply, some people
thought" Secretary Wallace said,
that prices would reach parity in
the market place and that no fur
ther action would be necessary to
carry out the policy of farm income
parity established by Congress in the
A. A. A. act Of 1898.
Wars Effects Cited.
But the speculative boom has
hattened out. The war has hindered
farm exports. - Instead of doing
away with the necessity for parity
payments, the war promises to in
crease the need for them. 80"
If we reduce payments to the
point where farmers feel they can
not afford to participate in the
(crop) programs, that they will be
better of outside. the result will
be weakened and ineffective pro-
grams"
AS an equivalent" for parity
payments, the Secretary has recon-
mended marketing certificate plan.
Under it farmers would receive
funds collected from processing
taxes on domestically consumed por-
tions of the wheat. cotton, tobacco,
rice and peanut crops.
Senator McNary of Oregon, the
Republican leader, said he was in
clined to favor the parity plan, which
Is sponsored by group of farm State
Democrats. If the Republicans vote
for it. he asserted, Senate approval
would be assured.
Democratic Leader Barkley, on the
other hand, told reporters it was
highly doubtful whether the Senate
would authorize parity payments,
an issue which the House did not
consider.
Such an appropriation, Senator
Barkley declared, would necessitate
either additional taxes or an in
crease in the s45 ,000, 900 900 national
debt limitation.
Senator McNary suggested that
$3.50 ,O0O,O 900 might be sufficient for
parity payments, with another $5O,-
000,000 or more being authorized for
disposal of surplus crops.
He echoed the views of parity
advocates who contend that even II
the fund is approved, economy
forces still could reduce Federal
spending by slashing Army and
Navy appropriations.
After slack period, both branches
OF Congress were settling down this
week to a heavier schedule in the
hope of adjourning a few weeks
before the Republican National
Convention, which opens June "a.
The Senate and House ticketed
routine appropriations bills for de-
bate this afternoon. The House
tomorrow will consider the Senate
measure to increase capital of the
Export-Import Bank from $780,.
100000 to $500, ,O00, 900. The increase
would make possible an additional
loan to Finland.