Evening star., 1942-12-30
BY GEORGE KENNEDY.

nudl DuQgeL message Tor S4UU,-
| 100000 for payments to farmers
under the Agricultural Adjust
ment Act of 1888. The larger
part of this sum will be paid as
direct subsidy to control produc-
ton of cotton and wheat The
Nation has more than a two-year
surplus of each.
Congress will not be asked for
subsidy funds to increase the pro-
duction of milk butter. cheese, table
vegetables, meat except pork
through corn payments) and vege-
table oils of which the Nation and
its Allies are so much in need.
If the usual parity payments are
voted also Congress insisted on
appropriating them against admin
istration opposition in the summer
of 1941. another so to Is million
dollars will be added to the wheat
subsidy.
Opposition Powerful.
Powerful economic and political
forces will resist any change in this
situation. The living standards Of
areas that are empires in extent and
we'll represented in Congress depend
on the large production and profit
able marketing of these crops.
Farm representatives are fearful
of the effect of switching these sub
sides. They were never understood
to be subsidies. They were initiated
as payments to adjust farm in
comes equitably with the incomes of
industrial areas. The word sub
sidy' sounds bad to the farmer and
his representative So the old pay
ments are to continue and subsidies
for farm war production are politi-
cally impossible
1t is reported that before he
passed the 100000 900 budget re-
quest, President Roosevelt said
that he wanted it to be under
stood the money was to be used for
the promotion of the needed oil
crops, the soybeans, peanuts and
fax for linsed OIL In doing so he
charted a difficult course for the
Agriculture Department in obtain
ing its funds from Congress.
Law Is Analysed.
The Agricultural Adjustment Act
and its predecessor were formulated
IN days of uncontrolled production
and distressed prices. They speci-
! fed as basic" the crops that were
to be controlled by subsidy or
adjustment payments.
Cotton, corn and wheat are the
largest crops and account for two
thirds of the payments If ad-
ministered according to the clear
intent of Congress when it was
passed. the law would defeat con-
version of the farm to war pro-
duction.
AS revised after the Supreme
Court declared it invalid, the AAA
confers broad powers on the Sec
retary of Agriculture. Proceeds of
a processing tax are not returned
to the farmer for limiting produc-
tion of the processed commodity as
in the first law, but he is paid for
soil-conservation practices as we'll
as for production adjustment"
Some officials in the Agriculture
Department on the policy-making
level believe the powers conferred
in the act are so broad that appro-
priations can be used to promote
milk production, potatoes. tomatoes,
oil seeds or any crop the Nation
needs
Intimations early this year that
the act was going to be so inter-
preted for the promotion of this
years crops caused quite furry on
Capitol Hill Congress members ex-
pressed fears that the money would
be going ito the wrong people
Bitter Fight Feared.
If those who want the Secretary
to act boldly have their way, a
more bitter fight may develop than
the recent one over parity"
There is some talk in the depart
ment of following the coming
presidential budget message with a
revised budget making use of all
funds consistent with the purposes
of the War Food Administration
which was created by the Presi-
dent after the budget was drawn
up.
With its great continuing capital
for loans and grants through units
such as Farm Credit Administra-
tion with its $1,000 10000 in re-
sources tChase National Bank of
New York, the country's largest
commercial bank has $4,000. .0O0, ,000D
Commodity Credit Corporation. the
department has levers even more
powerful than AAA payments with
which to shift production.
The department made an indirect
approach to the problem this year
Winter wheat, two-thirds of the
crop. had already been sewn when
bombs fell at Pearl Harbor. Despite
surpluses, normal average of cot
ton and wheat were planted. Plans
l. - - = H.