Evening star., 1943-03-13
Split in Administration
High Command Seen
Over Farm Policies
OPA Order to Continue
Sub-Pority Corn Prices
Surprises Wickord Aides
BY the Associated Press.

BY the Associated Press.
Signs of a split within the ad-
n1inistration's economic high
command over farm price poll
cies bobbed up today as the Of.
flee of Price Administration or
dered subparity price ceilings
continued on one of the coun-
tries major agricultural com
nodities-corn.
The OpA action came as an ad-
mitted surprise to farm leaders, who
earlier had been informed by sources
close to Secretary of Agriculture
Wickard that the administration
had decided to make a concession
to the congressional farm bloc in
the form of parity corn ceiling.
Continuance of the sub-parity
ceiling was directed by Economic
Sterilization Director James F.
Byrnes. Under the price control
law Mr.. Wickard has power to veto
OPA farm ceilings except when
overruled by Mr.. Byrnes.
Temporary" Action.
A spokesman for the Agriculture
Department last night authorized
the statement that OPA's action was
only temporary and that the mat
ter of raising the ceiling to full
parity was still under consideration.
The spokesman, declining to permit
use Of his name, explained that the
original ceilings expire today and
that yesterdays order was necessary
as stop-gap.
The OPA, on the other hand, said
nothing in its announcements to the
effect. In fact, details of the order
providing for nominal increases in
the ceiling prices later in the year
seemed to indicate that the order is
OF permanent nature.
Mr.. Wickard has taken the view
that it is necessary to allow corn
to advance to parity in order to
"unfreeze" supplies of corn for live
stock feeders who must depend on
the market for supplies. Farmers
and others owning corn have been
holding it, the department says,
because of the prospect that sub
parity ceilings would be eliminated
The Agriculture Department t
spokesman said Mr.. Wickard be-
lieved it was necessary that the
ceiling be raised to the parity level
in order to prevent possible break
down in the Governments livestock.
dairy and poultry production pro-
grams.
Back of the Question.
Back of the whole question is the
1nsistance of congressional farm
leaders that the Government refrain
from placing ceilings on agricultural
products at below parity levels.
After temporary ceiling was placed
on corn at 80 per cent of parity.
the farm bloc, with votes of admin
stration leaders, put through the
Senate a bill sponsored by Senator
Bankhead, Democrat of Alabama.
barring subparity ceilings. The
measure now is pending in the
House.
This congressional action led
farmers and others owning corn to
hold onto the grain in anticipation
OF hlgher prices. AS consequence.
daTymen, poultymen and livestock
feeders who depend on the market
for their feed have been finding
1t difficult to obtain corn at present
ceiling prices. The Agriculture De-
partment has received reports of i'm
pending serious feed shortages in
the East and Far West.
Mr.. Wickard, hoping to iron out
dlnerences between the administra-
tlon and the farm bloc, urged an in
crease in the corn ceiling He took
the view that such action would
start corn moving freely again into
the feed bins of farmers short of
feed.
OPA Contention.
The OPA took farm benefit pay
ments INTO account in establishing
corn ceilings at less than parity.
contendlng that the ceiling price
ana the payments would give farm
ers full parity returns,
The new OPA order superseded
temporary ceilings established two
months ago. It continued a maxi
mum price Of Sl02 a bushel for No.
yellow corn at Chicago with diff
ferentlals for other markets. The
new ceilings apply at every stage
OF distribution from the time the
corn leaves the farmers hands until
IT. is sold by retail dealers. The
order also sets top prices at which
the grain may be sold on futures
markets
The new ceilings will remain in
effect until April 80. Thereafter the
maximum prices will go up one-half
cent bushel on the lst and 18th of
each month until September 30. On
November /, when the new crop sea-
son opens, the ceiling prices will go
back to the May 81 level. This fol-
ows the usual pricing pattern for
corn.
On the futures exchanges. a SIM
liar seasonal price pattern has been
ADOPTED. There are only four deliv-
cry months in futures-May, July.
September and December.
Inc maximum prices for May fu-
lures were set at S10l a bushel,
based on the No. yellow ceiling at
Chicago May 81, less the normal dis
count of 2 cents. July futures will
have sl03 ceiling; September.
sl05. Next December, however, the
futures ceiling will be sl0l, or the
May price.
Z OPA also advanced the price CELL
hgs Of manufacturers making dry
corn milling products, such as corn
meal, corn flour and hominy Rrlts
Tor table use. This action was said
20 be necessary to relieve squeeze"
en- professors caused by the advance
tn corn prices since last November
when ceilings were placed on these
products.