Evening star., 1947-10-03
ectPurchase
Of Grain From
arms Studied
Anderson May Bypass
Exchanges in Program
To Aid Europe

IASHuHSSS III TIoSIoIH
To Aid Europe
Secretary of Agriculture An
derson today disclosed that the
Agriculture Department is con-
sidering purchase of grain direct
from farmers.
This by-passing of the grain ex-
changes would be aimed to curb the
inf1ationary upswing of wheat and
corn prices and minimize specula-
ton resulting from the European
aid program.
Mr.. Anderson revealed the pro-
posal as his department was about
to launch, probably late today, a
drive to get the vital cooperation
of the American farmer in the cam
paign to save" 100000 900 bushels
of wheat for shipment to Europe. A
list of specific recommendations
on how the farmer can do his part
will be made public.
Cabinet Meeting Held.
The Secretary told of the posi-
bility of buying direct from the
farmer after a cabinet meeting at
the White House which was reported
to have been concerned largely with
possible effects of the European aid
program on prices.
He told reporters the Government
would prefer to continue buying
through the normal channels of
grain trade"
If we can continue to do SO
without prices getting out of hand ,
we will not have to adopt the farm
acquisition plan," he said.
The Agriculture Department will
have to buy the 570,Ooo,0o0 bushels
of grain which President Truman
has set as goal for shipment to
Europe and other shortage areas
this crop year. This figure Is 1oO,-
100000 bushels more than now ap-
pears in sight.
1t is with the aim of making
this extra 100,000,00O bushels avail
able that Mr.. Truman has launched
his food saving program.
May Follow 1916 Plan.
Mr.. Anderson said direct buying
from farmers-if ordered-might
follow last years Commodity Credit
Corp. buying program, adopted when
growers apparently were withhold
ing wheat from the market in antici-
patton of higher prices or in an
effort to hold down income tax pay
ments. E
If so, Mr.. Anderson said, the pro-
gram probably would contain the
feature under which payment was
not made until the following tax
year, so that the transactions would
not throw the sellers into higher tax
brackets.
There have been reports that some
farmers are reluctant to sell wheat
this year because their incomes al
ready are high and taxes would
take so large bite from the money
received from the sales.
Mr.. Anderson did not mention
another feature of the 1916 pro-
gram, under which a 30-cent-a-
bushel premium was paid on wheat
bought from farmers.
AS a result of the 30-cent bonus
plan, the Government purchased an
extra 81 100000 bushels of wheat and
81 1000 bushels of corn during the
spring of last year, according to a
department estimate today.
Nourse Presents New Survey.
The cabinet meeting was monop-
olized by the new economic survey
presented by DR.. Edwin G. Nourse,
chairman of President Truman's S
Council of Economic Advisers.
DR.. Nourse told reporters 1t pre-
diets this country can meet Europe's
food and dollar needs without run
away imitation.
Grain marketing experts said q
program of buying grain from
farmers would tend to give the
farmer about the same price for
his grain as he would get at markets,
but the Government would save the
udIedl duueQ Dy gram dealers.
This saving to the Government
could amount to several cents q
bushel. When the Government buys
from regular grain dealers and mer-
chants they naturally add their
normal brokerage and<'other han
| ding fees.
A bonus to farmers for sale OF
wheat to the Government for export
would tend to discourage feeding OF
wheat to livestock. Officials have
said that livestock feeding of wheat
must be reduced sharply if exports
are to be met.
| Mr.. Truman has calculated his
program of winter aid for Europe
will require a $3.50, ,oO0, 900 appropria-
ton from Congress. Thus the whole
thing hinges finally on whether
Congress is willing No decision
from Congress is in prospect for two
months or more at the earliest.
Key congressional committees will