Evening star., 1942-05-19
Senate Banking Unit
Bans Farm Products
From R. F. {. Sales
Agreement Is Reached
At Meeting Attended
By Leon Henderson
Earlier Story on Page A-2.)

Earlier Story on Page A-2)
BY the Associated Press.
Members of the Senate Bank
ing Committee reported agree
ment today to exclude farm
products from the commodities
which the Reconstruction FL
nance Corp. would be authorized
under pending legislation to buy
and sell in carrying out the price
control nrogram.
The agreement was reached at a
meeting attended by Price Admins
traitor Leon Henderson, Secretary Of
Commerce Jones and representatives
Of several other Federal agencies.
Chairman Wagner of the commit
tee said an amendment to carry out
the proposed agricultural exemption
would be drafted by tomorrow.
Made Decision for Restudy.
The committee approved the
authority as part of legislation in
creasing the borrowing power of the
R. F. C. by S5,000,0OO ,00G, but pro-
tests of farm members that it might
permit sale of farm products below
parity prices resulted in a decision
to restudy the measure.
AS originally approved, the legis-
lation would have authorized the r.
F. c. to buy and sell any commodity
at the request of the price admin
istrator, and express authority would
have been granted to sell at loss.
The R. F. c. would also be given
authority to make subsidy payments
to keep prices down or encourage
production.
Officials said the provision was de-
signed to finance businesses which
might be caught in squeeze" be-
tween rising costs and ceiling prices.
Russell Urges Compromise.
Meanwhile, Senator Russell. Dem
ocrat, of Georgia, floor manager for
the annual farm bill, urged in the
Senate acceptance of a new COM
promise proposal for sales of Gov
ernment stocks of wheat, corn and
other grains for livestock feeding.
Senator Russell again modified
Senate Appropriation Committee
proposal for sale of these grains.
including 125,OO0OO bushels of
wheat, so that none would be sold
at less than IS per cent of the parity
price for corn, now about 80 cents
a bushel
He said he had made every ef-
fort to find a compromise that
would please everybody and every
section" He conceded that the
proposal reversed in part an earlier
separate Senate bill that would have
prevented sales of any Government
stocks at less than a full or 100 per
cent parity price.
Senator McNary Interrupts.
Senator McNary. Republican. of
Oregon, minority leader interrupt
ed Senator Russell to ask if the
new provision was not in effect
floor under sales of corn, rye, bar
ley or other grains for feeding at
IS per cent of corn parity"
That is correct" Senator Russell
replied.
Senator Russell told the Senate
that 80 per cent of corn was used
for livestock feeding and that rs per
cent of the crop was fed on the
farm where it was raised so that
the sale of Government stocks of
corn would mean little. He said
that wheat sold at the reduced rate
could be used only for feeding and
that no Government wheat stocks
could be sold for flour or similar
purposes at less than a full parity
price.
Senators from corn producing
States protested the committee pro-
posal to permit Government sales
of grain for livestock feed at IS per
cent of the parity price of corn.
contending that the measure would
penalize corn farmers to benefit
growers of other crops.