The Omaha guide., 1946-04-13
WNU Washington Bureau,
1915 Eye ST.. N. w.
Which Way Will Prices
Of Farm Products Go?
BY Wolter Sheod
WNU Correspondent

secretary Clinton z. Anderson
spoke before the American National
Livestock association convention in
Denver on New Frontiers for the
Livc stock Industry" He outlined a
production program of % billion
pounds of meat this year . that's
20 pounds more per capita than was
consumed in l945.
But in hal same speech Mr.. An
derson revealed his plans for re-
movaI of meat subsidies on cattle,
calves, sheep and lambs by June
80 of this year. Ten days later,
President Truman in his message
to congress on the state of the Union
gave his reasons why "food subsi-
dies must be continued beyond June
30, 1885," and if the reaction of farm
leaders here in Washington to the
Presidents recommendation reflects
the feelings of the rank and file of
farmers throughout the country
then that's bad for the farmers. For
all these leaders are opposed to SUBJ
sidy as a principle, and particular
ly to extension of subsidies as a
means of holding down food prices to
consumers.
Subsidies Unpopular
Dairy farm leaders are especially
hostile to the Presidents recon
mendation. Charles w. Holman,
secretary of the National Co-opera-
tive Milk Producers federation,
pointed to what he called 1.-The in
congruity in the Administrations
recommendations for a wage in
crease to industrial groups on the
n hand, and on the other hand
for federal grants to substitute their
grocery bills. The one is an infla-
tionary move for the benefit of ur-
ban groups. The other is a 'hold-the-
line edict to the detriment of agri-
culture, and is in itself just as in
fationary."
While those close to the secre-
tary declared that Mr.. Anderson's
whole position for elimination Of
subsidies depended on favorable fac
tors which are not now in the eco
nomic picture, it is said Mr.. Ander-
son is going along with his chief as
a good soldier.
Whether congress will accede to
the Presidents policy on continual
ton Of the subsidies, which farm
leaders contend will mean that
farmers will continue as wards of
the government for years to come"
remains to be seen. So far con-
gress has paid little or no attention
to the Presidents recommends
tons, with the exception Of his for
eign policy. Furthermore, there is
little reason to believe that congress
will listen to Mr.. Truman now, any
more than they have in the past, un-
less an aroused public opinion
forces their hand.
Farmers, however, can be thank
full to the President for the fact that
because he refrained from declar-
ing an official end to the war prior
to the first of the year, their parity
prices are guaranteed by the gov
eminent until the end of 1913 49,.
three years from now.
Price Support to Stay
And now, unless congress goes
back on its word, all farm prices
under the Steagall bill must be sup
ported at 80 per cent of parity for
1916, 1947 and 1913, for the law fixed
these prices in force until two years
after January l following the date
of such a declaration by the Presi-
dent OF by congress. So such COM
modities as hogs. eggs, chickens,
milk, ~butterfat, dry peas and beans,
soybeans, ETC., will get the benefit.
Regarding these prices, the Pres
tdent in his message said: "The first
obligation of the government to ag-
riculture for the reconversion peri
cd is to make good on its p~rice-sup-
port commitments. This we intend
to do, with realistic consideration for
the sound patterns of production
that will contribute most to the long,
time welfare Of agriculture and the
whole nation"
So it appears that OPA's Mr..
Bowles stands to win out in the bout
with Anderson over subsidies. if
congress supports the President.
Bowles' contention was that subsidy
removal will increase food prices,
and that's what happened. Butter
is an example. Anderson felt nat
ural laws of supply and demand
should gradually govern prices. So
far congress has evaded taking a
stand on any controversial question
affecting re~conversion, but it APP
pears the solons On the Hill will be
forced to vote one way or another
on this question before June 80, when
the price control act is scheduled to
pass out of existence.
The belief here generally is that it
will be extended for at least six
months. The President asks a year.
Mr.. Anderson says that repeal Of
subsidies on commodities which al
ready have been announced will
stand, however. AS an example SUBJ
sides on some types of cheese we're
lifted on February l. With market
prices well above the subsidy levels,
there is obviously no need of bolster
ing prices Of dairy products. It is ex-
pected that prices on butter, cheese,
etc., will remain high for a long
time. considering the present nation
al income level.