The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1943-07-15

!
and a lot of other government cor.
porations, CCC is a Delaware cor.
poration. Its capital is $10O million
with present limit of SO billion
on the outstanding obligations il
may have at any one time in loans
bonds, notes, etc.
In spite of its financial size, CCC
is an unpretentious sort of bank. 1t
occupies no fnacy palace of its own
just another row of dreary, almost
dismal Offices in the sprawling, util-
itarian Department of Agriculture
| South Building in Washington.
Gees 1900 employees are scattered
here and in branch Offices in Chi
cago, Minneapolis, Kansas City and
Portland, Ore, dealing largely in
grains; New Orleans dealing in cot
ton and New York dealing in i'm
! ports. Gees president, J. H. Hut
son, seldom gets his name in the
| papers.
BEGAN WITH NRA
CCC is 10 years old. 1t was orig
inally part of the old National Re-
covery Administration setup, then it
was put in Department of Agricul-
ture in 1899, now it's in War Food
Administration.
Over the years, it has operated at
what you might call a really hand
some loss-not through any mis-
management of its own, but because
Congress in its infinite wisdom set
the thing up to work that way.
CCC has made money on its opera
tons in cotton, about $40 million
all told, but it's excess of realized
and appraised losses over profits
and income" its accumulated deficit
in other words, is in round numbers
$197 million. Most of that was built
up in the early years. In the last
two years, the war years, on a 81
billion operation, it has lost only $25
million. Anyone might lose $25 mil
lion or so, just in having to count
81 billion. What the heck.
But CCC has done a lot more
with its money than just count it.
The things it's in! BY any other
name, in any other place, the losses
ofg CCC would be considered sub
sides. But Subsidy Is nasty word
around these parts, stranger, and
don't let anyone catch you saying
that CCC has subsidized anything
or anyone. The polite way to put
it is to say that the Commodity
Credit Corporation has contributed
greatly toward stabilizing agricul-
ture.
CCC LOANS
In 1888 and for five years there
after, there were big surpluses of
cotton and corn, and CCC was set
up then to make loans against those
SURPRISES so as to stabilize prices.
Then in 938 when CCC vase trans
ferred to the Department of Agri-
culture, it got all tied in with the
ever-norEal granary program and
was integrated all over the place
with triple-A, crop insurance and
such. On the six basic crops-cot-
ton, rise, corn, wheat, tobacco and
peanuts-CCC makes loans to tide
the farmers over until such time as
they can or want to sell, advanc-
and wheat, 80 per cent on the others.
ing IS per cent of parity on cotton
On non-basic crops, meaning all
others, CCC makes loans on price
support programs for the farmer,
usually at 80 per cent of parity. All
these loans are on what's called a
"non-recourse" basis, meaning that
the borrower can refuse to pay off
his loan at any time and turn over
his security, meaning the crop, to
the government. This is one of
the most perfect devices thought up
yet for sticking the government and
subsidizing - pardon - Stabllizlng
agriculture. 1t accounts for the fact
that your government now owns
millions of bushels and bales and
tons of almost any farm product you
can name. CCC charges 3 per cent
interest on its loans, but it will pay
farmers to store their own security.
CCC has tremendous role in the
war effort, but that's story in it
self and will have to be saved for
the next issue.