Imperial Valley press., 1943-12-16
Ry Congressman John Phillips


Few subjects, in my experience,
have been SO misunderstood and
misrepresented as the present sub
sidy argument in the Congress. I
have on my desk letter from a
friend who holds a prominent posi-
ton in the A. F. of L. have high
regard for him. His letter says, in
part:
"AS to the question of subsidies,
l regret having to express my dis
agreement with your position. I am
afraid the elimination of ceilings
would not make commodities cheap
er or more plentiful He then
speaks of the BLACK market, and
of OPA prosecutions for violations.
Let me make a few plain state
ments. Read them carefully.
NO BILL IN CONGRESS j..
There is no bill before Congress
which would affect price ceilings
di ectly No bill removes them. The
bill continuing the Commodity Cred
it Corporation, and prohibiting the
use of its money to impose con
Sumer subsidies, SO called, does not
prohibit subsidies to increase pro-
duction, nor does it prohibit sup
por, prices. This country has been
familiar with subsidies since
George Washington recommended
one to make possible a wider dis
tribution of newspapers, so more
people could have them to read.
The very use of the word in this
argument is misrepresentation
l am unable to figure more than
two or three commodities on which
retail prices could justifiably be
raised if the bill were passed and
signed. These are Cd butter, which
now receives subsidy protection of
cents pound, in the face of
statements from Department of
Agriculture officials that a cent
a pound would be enough; 90 milk,
which should be considered separ-
ately, and which might in some
milksheds go up l cent or perhaps
2 cents quart. In those sheds prices
are now lower than in other sheds
Remember also that milk usually
rises l cent or y cent in the
fall, and drops in the spring. The
CPA does not understand this. ]
do not think the OPA knows about
spring and fall. I think the OPA
knows only one season; an open
season en- the American farmer.
CITRUS PLAN BLOCKED
l told you about citrus. The
growers wanted to pay the farmer
more and charge the consumer less
The War Food Administration ap-
proved the plan. The OPA objected
and insisted on paying a subsidy
The house committee on agriculture
prevented this and while the SUBJ
stitute plan is not perfect, the con-
samer will buy oranges for less than
the OPA wanted him, or her, to
pay.
l consider statements that if the
present bill becomes a law, all retail
prices will go up and we will have
initiation, to be propaganda. The
truth is that prices are rising. due
to the failure of the administration
to control them as they are con-
trolled in Canada, England, Ger
many and other countries.
MUST BE DUAL CONTROL
You cannot control retail prices
without controlling wages. Every
body knows that. Unless you try
TO deceive the people somehow.
Right now, this subsidy" is that
deception. The consumer is to nav
the government fee to permit the
government to transfer the con-
sumer's money from one pocket to
the other 1t is a high and extrav-
agant fee.
Prices will be raised whether or
not this bill passes. The percentage
OF increase in this war, on compar-
able figures, has been higher than
IN the last war. The danger of in
flation will come just after the end
OF the fighting, as it came in 1920.
after the last war. The washington
rropagandists want to make them
selves a mattress upon which to
fall when this happens. They could
have prevented it; they have not
prevented 1t, because of political
considerations. The working people,
TO whom this political appeal is
made, will be the ones to suffer