Evening star., 1943-05-30
Senator Byrd Assai|s
Use Of Subsidies 10
Control Food Prices
Administration Fears to
GroppIe With Bosic .
Problem, He Charges
By L A. OIEARY.

Chairman Byrd OF the JOINT Com
mittee on Non Essential Federal EX-
penditures last night assailed pay
meht of Government subsidies to
producers and professors of food as
a means of controlling prices, de-
claring ''it will be ineffective unless
tionary policy in the control of
wages
why is it that the administra-
ton is now insisting on the pay
ment of subsidies in order to con-
troll food prices?" the Senator asked
has not had the courage to come to
grips with the fundamental problem
of imitation. 1t has not been will
ing to adopt the Baruch formula
which has been and is today the
best method of combating and con-
trolling imitation"
The Baruch plan was advocated
by Representative Gore, Democrat,
of Tennessee when the first price
control bill was being drafted short
lv before this country was drawn
into the war in l94l, but it was
turned down. II would have put
ar overall ceiling on both the price
and wage structure at the then
existing level, with leeway for re-
adjustments later, where necessary
to correct inequalities. Congress
followed the alternative of selective
control, limited to prices.
Inequalities Seen.
When the second, or present price
control law came along in the fall
of 1912, it was broadened to include
authority for wage control, but by
administrative procedure. BY that
time, Mr.. Gore said yesterday. the
price situation was such that he
coubted the advisability of again ad-
vocating the rigid program of an
overall ceiling, which Te believed
would have been effective had it
been adopted at the start.
Commenting on the current talk
OF subsidy payments to producers
and professors as a means of con-
trolling prices. Mr. Gore said sub
sides, to be effective, would have
to be accompanied by rigid control
OF all major segments Of the
economy. With rigid control of the
price structure, he said, some sub
sides might become necessary. but
they would be dangerous without
rigid and determined ceilings on
prices and wages
Senator Byrd argued it would not
be possible to distribute the sub
sides equitably among the pro-
ducers and handlers of food. and
that the result would be inequali-
ties and determinations.
Fears RECOMMENDATION.
1T will add billions of dollars to
the public debt for future genera
tlons to pay at time when we
cannot hope for the prosperity we
now have, the Virginia Senator
continued. 1T will regiment COM
pletely the handlers and producers
of food products, beginning with
the farmer and ending with the
consumer 1t will be another long
step toward totalitarian govern
ment."
Senator Byrd said he is con-
vlnced that wholesale subsidies TO
be paid as now proposed are merely
shot in the arm and will be totally
ineffective unless the basic causes
of initiation are first controlled"
Referring to subsidies in Great
Britain Senator Byrd said:
The subsidy plan in England,
which l will not now discuss fully.
has been to meet entirely different
conditions from those that exist in
this country. England normally i'm
ports most of her food. The gov
eminent can buy this food as it is
imported and resell it at a lower
price. Just the reverse condition
exists in our country. The subsidy
system in England was linked with
a rigid control of wages and prices.
which in this country we have not
done. The subsidy system in Eng
land is on a much more moderate
scale than proposed here.
See Surrender of Miners.
1T is obvious that, while the pill
will be sugar-coated, a partial sur
render to John L. Lewis has already
been made, and gradually, when
public indignation subsidies, a full
surrender will likely follow. 1t ap-
pears apparent, too. that the Little
Steel formula of wage control has
already been discarded, or shortly
will be by the War Labor Board.
Once again the administrative
agencies of the Government have
failed by their lack of courage and
hrmness to control the basic causes
Of initiation
Senator Byrd said the adminis-
tratlon is unwilling to ask for a
subsidy appropriate because Con-
greSS "on every occasion has indi-
Gated its opposition to food subsidy
payments, so the administration is
nov trying to go in back door
and obtain these funds from the
Reconstruction Finance Corp, the
Community Credit Corp. and other
corporations which were established
merely as loaning agencies"
Senator Byrd said it was never
INTENDED by the ablishment of
these Government corporations that
they would make expenditures for
non-recoverable purposes. A sub
slGy, OF course, is not a loan. 1t is
gift"
Whatever may be the argument
Tor subsidies Senator Byrd con-
cluded, there is no justification for
their payment through the RFC or
other Government corporations. and
thus avoid coming to Congress for
direct appropriation.