The Waterbury Democrat., 1943-04-08
INCREASED FARM
 PRICES PROBABLE
Senate Bloc SaIvages Bankhead Bill; COnsid.
 CTS Pace Measure Today
BY JOHN L. CUTTER United Press Staff Correspondent

Washington, April 8. - (UP) - Price Administrator Prentiss M. Brown asked the Senate agriculture committee today for sympathy, un- derstanding and help" in his fight to prevent inflatlonary prices and wage rises.
 He tsetifled in opposition to the Pace bill which would require in- clusion of farm labor costs in com- putation of farm parity prices.
 Brown reiterated the measure would raise parity prices of farm products "by upwards of l4 per cent, boost up retail food prices 10 Ia per cent, add more than $2,O00, ,O00,. 900 to the consumers annual food budget and add $75O, 900, 900 a year to the cost of feeding the armed forces and their allies"
 "So radical a change in price of food would end the stabilization of prices-and of wages," Brown as- serted.
 He insisted that farmers are in Q better position today than ever be- fore. He said that between August, 1889, and January, l943, the prices farmers received rose 1l0 per cent, while during the same period the prices that farmers paid were held to an increase of 26 per cent.
 The committee previously had ap- proved the Pace bill and sent it to the Senate without holding hearings. The Senate, acting after Brown and President Roosevelt warned 1t would increase the cost of living and probably force revision of the Little Steel" wage formula, sent the bill back to committee with in. structions that hearings be held.
 The Pace bill was one of two measures advanced by the farm bloc to force revision of farm parity computations. The other-the Bank. head bill-was vetoed by President Roosevelt, and yesterday the Sem ate recommitted 1t, too. The Bank head bill proposed to exclude benefit payments to farmers from parity price ceiling computations.
 Brown argued that the Pace bill would be even more infiationary than the Bankhead bill.
 Meanwhile, War F'odd Adminiis- trator Chester c. Davis announced a government guarantee of higher prices for five farm crops.
 Davis first formal order in his new job announced sharply in- creased loan and purchase rates to growers for five urgently needed war cropS--dry beans, dry peas, peanuts, soybeans and flaxSeed. He also renewed Wickard's earlier promises that incentive payments will be made on potatoes and truck crops.
 The announcement, in effect, guarantees that the government will support grower prices of the five crops at higher prices than previously announced. In the case of dry beans and peass and soy. beans the new support prices are high than office of price admins. tration ceiling prices.
 Thus, 1t appeared that the ad. ministration may be preparing to:
 1. Raise the ceiling prices and let the cost be passed along to the consumers in higher retail prices.
 2. Subsidize the production of essential food and fibre by guar teeing the producer the new higher prices and then selling to proces. Sors within the present ceilings, fl. nancing the difference out of the public treasury.
 Under the second way, the ad- ministration could give the farmer the higher price demanded in the Bankhead and Pace bills and still prevent increased living costs which would bring on industrial wage in- crease demands and set in force 8 new spiral of imitation.
 Farm organization leaders ap- peared willing to accept such a solution with reluctance. They were far from happy over the results of their visit to the White House yes. terday to demand unlimited author ity for Davis in fixing prices on farm commodities.
 President Roosevelt told them flatly that they would have to 90 along with the administration in the fight to contrd imitation, re- gardless of any sacrifices which may he involved.