The people's voice. [volume] (Helena, Mont.) 1939-1969, 1943-07-23


and on up until we have a first-rat,
initiation on our hands.
| would like to emphasize again
that every time the price of food goe!
up, the farmer gets only fraction
of the increase. 1t is a question,
think, which should be posed to boil
agriculture and labor: Is it not better
to stabilize wages and food costs at {
fair level and pay subsidies if neces
sary, also incentive payments and
bonuses?
I know there are many problems ir
working out subsidy plan, but
am sure that with all its inconven
| fences it is the cheapest and the fair
est way to share the parity of sacri
fees necessary in war. Through
incentive payments or subsidies, agri-
incentive payments or subsidies, agri
culture is assured of fair price and
the consumer is assured that his
budget will permit him to buy the
food necessary to keep his family in
health.
There has been a lot said about the
cost of subsidies. On June 18th the
President told press conference that
the largest thing before us on the
civilian front is to keep down the
csot of living. He said that if the
cost of food and other necessities go
up, wages must go up. If wages go
up, then the cost of necessities must
go up still another notch.
When the inflationary spiral climbs,
we all know what happens to our
savings. The President pointed out
that we do not want to put our dollars
in the bank now, in the form of war
bonds, and then have them be worth
only half-dollars a few years from
now.
If our subsidy program should add
between one and one and a half bill
lion dollars to the cost of the war
effort for the year, as it has been
pointed out, then the subsidy would
amount to only 1 to 1 u per cent of
the total war budget of 100 billion
dollars. This certainly is more eco
nomical than initiation with all the
dislocations that accompany it. This
is cheaper than having an Initiation
which would add billions upon bill
lions of dollars to the cost of running
the war, for be it remembered that
the government is now the greatest
of all purchasers of foods and fibers
food and labor costs would mean an
even far greater national debt to be
passed on to future generations, espe-
cially when the postwar deflationary
period occurs.
1t might be pointed out here, too,
that initiation can lead to the wiping
out of all savings, as was the case
in many European countries after
the last war.
There is one thing we have got to
when we talk about sub
sidy program. 1t will have to be con-
Quoted in connection with rationing.
1t will be difficult, if not impossible,
to have one without the other
And that is another thing which
is certain. If one price is controlled,
all prices must be control
led. This is because the economic
system would otherwise get all out of
killer.
Let us carry that little farther.
A controlled price, if it is to be en-
forced on a product that is not avail |
able in quantity to fill all demands,
must be backed up by rationing |
system, either voluntary or compul- |
sorry But rationing, in turn, upsets
formal distribution and this causes
new problems.
Rationing is a highly complicated |
OBJ. Mistakes in judgment can cause
EMBELLISHMENTS, and have, which lead
o market upsets. And yet, no coun-
ry so far has found a wartime alter
native to price control plus rationing.
of this method every
where are accepted as better than the
Efforts of sharp initiation due to a
W iHdlihS supply anu a ilolnS uc-
nand. Upsets, annoyances and NAL
will be inevitable There
will be price-fixing which will be I'M
air and will have to be adjusted.
There will be unbalanced set-ups be-
ause of price-fixing which will have
o be corrected. But a controlled
rice and rationing appear almost in
vitable unless we welcome chaos.
| am explaining the effects of sub
idies and rationing as it affects both
he consumer and the farmer. We, in
he Farmers Union, support it be-
ause we believe it is the best course
or both agriculture and the nation
We deplore the studied efforts and,
the successful efforts
eing made to divide agriculture and
abor, not to the advantage of either
r both, but to the advantage of the
ation's big business corporations,
those program with respect to labor
nd agriculture has always been di-
ide and conquer.
The Farmers Union has been sym
athletic to the efforts of labor to i'm
rove its conditions. We only hope
hat labor will continue to show the