Evening star., 1944-02-09
bankhead Hits
Subsidies as
Initiation Threat
Opens Debate on
Bill to Extend Life
Of Commodity Credit
Ey the Associated Press

| u! tne associated Press.
Keynoting debate in the Sem
ate on the food subsidy repeal
bill, Senator Bankhead, Demo-
crat, of Alabama declared today
that Government payments to
regulate consumer food prices
are swelling the national debt
and increasing-rather than di-
minishing-the dangers of war
time imitation.
BY holding down retail prices of
some food commodities, Senator
Bankhead contended, subsidies have
boosted excess purchasing power in
the hands of consumers, thus
widening the ''inflationary gap" be-
tween buying power and available
goods --
Senator Bankhead took the floor
| in support of his own bill, similar
to legislation previously passed by
the House, to continue the Com
modify Credit Corp, but cancel
the administrations $1,000 900 600
a-year subsidy program after June
30.
Held Against Public Interest.
| Il believe it is definitely against
the best interest of the American
people to engage in a widespread
program of using tax money, or
money secured by the sale of war
bonds, to pay in part for the food
consumed by all the people at a
time when most of the civilian
population has more money to spend
than it ever has had before" Sena-
tor Bankhead said.
Hitting at arguments of adminis-
tration officials that subsidy repeal
might touch off a spiral of price
and wage increases that would
sweep away the entire stabilization
/ program, the Alabaman asserted
that food prices would rise only "a
cents a day person if subsidies
were taken off.
Ceiling prices can be used to
stop infiationary increases in
prices" he said. "If subsidies are
repealed it would not result in ex-
cessive or wild imitation.
The principal result would be
an increase in the price of the par
ticular foods that are under the
subsidy program in an amount to
correspond with the reduction in the
price that had been brought about
by the use of the subsidy"
i Senator Bankhead used the but
ter price rollback subsidy rs An ex- :
ample, saying that if it,were taken
off the price of butter to consumers
would go up cents a pound.
/ How long can a democracy sur
vive,' he asked, when people call
upon their Government for boun-
ties and subsidies to support them
when they are able to provide for
themselves"
Compulsory Bond Buying.
Instead of relying upon soothing
sirups in the form of putting more
money into circulation through the
payment of subsidies to enable con-
sumers to buy farm commodities
below the cost of production he
added, it would be better to fight
imitation by lifting taxes or through
compulsory bond investment"
He said producers would get no
more for their crops than they now
do if subsidies are outlawed, and
added it was mot true" that many
farmers oppose subsidies because
they want higher prices.
Low-income families could be
aided by the Government through
food stamp plan. or by direct
rebates on their food bills. Senator
Bankhead said, should that become
necessary.
Resumption of the subsidy fight
found Congress up against an urgent
deadllne. Because the statutory
life of the CCC expires February II.
the issue will have to be settled
within eight days unless the CCC is
either extended temporarily or al
lowed to lapse
AS the debate got under way Ma
iority Leader Barkley rejected an
indirect offer by subsidy opponents
to continue the CCC on a temporary
basis to allow more time for Senate
consideration Of subsidy repeal.
Bankhead Willing.
Senator Barkley said the admin
istration ''has no intention" to ask
for postponement of the Gees ex-
piration date, even though Senator
Bankhead had announced he would
not oppose such step.
Expectations are that the admin
istration will try for quick decision
in the belief that President Roose-
welt will veto the repeater If 1t
passed and that the veto will be
Sustained.
The House last November voted
to outlaw subsidies and the bill be-
fore the Senate is substantially the
same, except that it would allow the
existing program to continue until
June 30. The House bill set last
December 81 as the date for ending
subsidy payments. Technically, the
Senate will consider the House
measure, amended to incorporate
the full text of bill by Senator
Bankhead
Held Vital by President.
The central issue in the subsidy
fight is whether the CCC and other
Federal agencies are to be permitted
to continue paying subsidies to
farmers and food professors as part
of the Governments attempt to hold
consumer food prices near Septem-
ber,. 1912, levels. Mr. Roosevelt has
termed subsidies vital phase of the
entire price and wage stabilization
program.
At the present rate, subsidies are
costing the Government approx
mately $1,000, 100000 annually, but
the administration wants to amend
the pending bill to grant 81 500 ,OO0,-
900 Of subsidy authority in 1914.