Evening star., 1941-11-04

spree during the first World War
and the long def1ation hangover
that followed Farm prices went
down and stayed down but taxes,
interest and other costs remained
high.
OF course, the best way to prevent
initiation is to see that there are
plenty of supplies and goods that
consumers wish to purchase. That
is another reason that we in agri-
culture are going to do all we can
to produce enough for all concerned
However, there may be unusual
weather conditions or other un-
comfortable factors that will cause
temporary shortages. Also, there is
always the risk that spectators
will drive prices up higher than is
warranted by supply and demand
conditions. Spectators usually do
this sort of thing when the supplies
have passed out of the farmers
hands. Therefore, most farmers are
in favor of some sort of ceiling on
prices such as was proposed in the
original price control bill I think
the instances in which this ceiling
will be applied are rare, but it will
be a good thing to have it just in
case.
1 think most farmers favor the
principle of the original price con-
troll bill and I think most of them
who are familiar with the subject
fhInk tho Y,rnuicin,,c r,I,ir Fxy In
price ceiling for agricultural prod
ucts at ITO per cent of parity take
care of farmers pretty we'll. One
hundred and ten per cent of parity
will permit the moderate f1uctu-
ations necessary for prices to aver
age parity. Parity for farm prod
uctS is our goal and the bill was
drafted with that principle in mind.
1t goes without saying that I am
IN accord with that principle.
Opposes Higher Crop Loan Rate.
Proposals have been made to raise
the proposed ceiling on farm prod
ucts to we'll above 10 per cent of
parity. These suggestions have been
written into the price control bill
I am against these proposals. I am
against them for two reasons. First.
they would tend to make the bill
Ineffective. Prices for any product,
whether from farm or factory,
should not be allowed to GO to
unreasonable heights. If the bill is
to prevent imitation. it must have
authority to keep prices from going
too high. Second, agriculture stands
to lose lot of good will If people
get the idea that farmers are in
sisting on too much. 1t has taken
us long time to sell the country
on the idea of equality for the
farmer. Let's keep it sold.
I am also opposed to the proposal
to increase the loan rate on cotton,
corn, wheat, rice and tobacco, the
so-called basic commodities, to 100
per cent of parity. The loan rate
on these commodities now is IS
per cent of parity, and I think that
is high enough because the pay
ments to farmers cooperating in
the farm program are bringing their
total return to parity. To raise the
loan rate on corn, for example,
would raise the price of feed pretty
sharply and this would increase the
cost of producing milk, eggs. meat
and other foods. In turn, the price
of some foods would have to be
raised considerably above parity.
This would hurt consumers now and
farmers later on.
Worry About Future Prices.
There are still other reasons why
the 100 per cent of parity proposal
is, in my opinion, unwise. This
high loan would make it more diff
cult for the dairy farmers, the meat
producers and the poultry producers
to turn out the food we need in our
defense effort.
From my observation the chief