Evening star., 1943-07-02
10 the House Of Representa- tives:

Of the United States. Is before me.
This measure will become law only
over my strenuous objection and
protest. s- ~
The Congress Is aware of my deep
interest In the Commodity Credit
Corp. It was created by me under
executive order issued October Is,
1888, to meet 4 grave and critical
emergency. 1t has proved to be
useful not only in an emergency, but
under other conditions. 1t has an
essential function to perform In our
war food production program. 1t
should<and must be continued.
But this Ia not q bill to continue
the Commodity Credit Corp. 1t Is
4 bill to hamstring the Commodity
Credit Corp. 1t places new and
unwarranted restrictions on the use
Of its funds and on the powers
heretofore given to the administra-
tion to stabilize the cost of living.
These restrictions would prevent our
giving to farmers the assistance
they need in carrying out our new
food production programs. 70 es-
! sential to feed our citizens and our
soldiers. They would make 1t i'm
possible for us to stop the rising
cost Of living.
Called an "Inhation BILL"
As the measure now stands. this is
an imitation bill. a high-cost-of-liv-
ing bill, 4 food shortage bill.
There is. for instance. . provision
in Section 6 n) which prohibits the
for any raw or processed agricultural
commodity which will reflect to the
producers thereof 4 price less than
the support price heretofore or here
after announced by the War Food
Administrator, or less than the high
er of the maximum prices provided
in Section ; of the act of October
Z. l942
have tried to anlyze this section
and to translate 1t into common
sense English Frankly, I do not
know what it means.
If the provision merely means
that II the support price is higher
than the maximum price established
under the act Of October z, l942.
the commodity must be purchased
from the producer at the support
price or the farmer must be paid
the difference between the support
price and the maximum price. the
provision would serve no purpose
That is now, as I understand 1t, the
law.
II, on the other hand. despite
language which looks the other way.
the provision were construed to
mean that the maximum price must
be fixed so as to yield to the pro-
ducer the support price without the
payment OF any subsidy. the pro-
vision would require the immediate
upward adjustments in the ceiling
prices for me ny basic food products.
Prices for dry edible beans. cheese,
canned vegetables, sugar, and. in
some markets. fluid milk would i'm
mediately go up because the support
prices for these products are higher
than their present ceiling prices.
Would Boost Food Costs.
II the provision were so construed.
it would not only Immediately in
crease the cost of living but it would
make lit impossible for us to adopt
support programs needed to increa sc
production without causing still
further rise In the cost OF living. Un-
doubtedly. il We must in each case
weigh the advantages OF \ support
program against the disadvantages
Of An, increase in. the cost Of living,
many support programs which might
otherwise be adopted will be rejected.
and other support programs. al
though finally adopted. will ineui-
tabIy be delayed. :. 49,.
Section tb) Of the bill prohibits,
with specified exceptions, the max
ing Of any subsidy or other payment
other than those which have ac-
crued prior to August l, 1913. If such
. payment is designed either CD to
reduce Of rollback maximum and
support prices or q, as 4 substitute
for increasing maximum prices or
support prices. unless such payments
are specifically authorized by the
Congress, The specified exceptions
are rigidily limited. Subsidies or
other payments can be made until
the end of the current crop year on
any agricultural commodity other
than milk or livestock If prior to
June Is, 1943. the Government was
committed to make them. Wheat
can be sold for feeding purposes at
not less than the parity price for
corn. Maximum and support prices
on domestic fats and oils and oil
seeds can be adjusted as necessary
to assure adequate production.
Section I seeks to subject to the
War Food Administrations control
all the powers given under section
'eD OF the Emergency Price Con-
troll Act in respect to the purchase,
sale. storage and use of foods. l am
sure that the War Food Administra- =
ton is amply capable of handling
such a task. But even its hands
are shackled by the imposition of
rigid restrictions which were in
cluded neither In the original Price
Control Act nor in the act of Octo-
Der 2 1912.
Section 7 provides that purchases
can be made only at prices which
reflect to the farmer not less than
the maximum price provided In the
act of October 2. 1912, or the an
nounced support price. whichever is
the higher. No purchases can be
made for the purpose Of resale at 4
loss unless made under 4 program
announced prior to July l, 1913
Even under pre-existing commit
ments. the Government is not
authorized to make purchases which
Dot Kirby Takes Lead
lAI - 1RPs