Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-10-19
Plan Keeps 90 Pct.
For so, Then Goes
On Sliding Scale
By J. A. O'Leory

liz AAoaoC oAAo oCAloCC arc icduy
to ratify today a compromise farm
bill under which price supports
can be kept at or near the present
high level on major crops.
Although the compromise recog-
nizes the principle of a flexible
scale of parity payments fought
for by the Senate, it keeps the
basic crops at the wartime 80 per
cent level for 1850, and applies
the downward scale gradually be-
tween now and 1854.
For next year the bill is essen
TALLY a victory for the House, and
for the position President Truman
is reported to have taken during
the recent battle between the
two Houses.
House Action Due First.
Congress will have many more
chances to consider further
changes in this bill before the
Senate's flexible plan, sponsored
by Senator Anderson. Democrat.
of New Mexico. takes full effect
in 1854.
The conference agreement will
be taken up first in the House
early today. and then go to the
Senate for final ratification.
One OF the main points at issue
in conference was between the
old and a new definition Of parity.
to be used in computing the per-
centage Of support payments.
Parity is a method Of bringing
farm income into line with the
price level Of industrial products
the farmer buys.
Either Formula May Be Used.
The conferees not only kept the
80 per cent level Of payments for
1850. but provided that until the
end OF 1858. each basic crop would
use either the old or the new for
mula. whichever proves better for
the farmer in each case.
This solution appeared to sat
isfy all factions in the conference.
and it was announced that all
Of the conferees signed the agree
ment.
In 1851 the level Of price sup
ports for the basic crops could
range from 80 to 30 per cent: in
1852 and 1858, the range would
be from rs to 80 per cent. but
from now until the end of 1853
each basic crop would have its
choice Of the old or new method
Of computing parity.
The chief concession made to
the Senate was that, after 1858
the 75-to-90 per cent flexible
scale would be permanent. with
only the new parity formula IN
the Senate bill as L base.
Four Years Left for Changes.
This leaves Congress four years,
however, to weigh the effects OF
the compromise, and the expert
ence with the use OF alternative
formulas, before the Senate plan
can go into full operation.
When President Truman signs
the conference agreement, which
congressional leaders expect him
to do, it will replace the Hope
Aiken law passed by the Repub-
lican 80th Congress, which would
have put flexible scale Of parity
payments from so to so per cent.
and a new formula, into effect
next January.
Senator Aiken. Republican, of
Vermont. one of the conferees on
the pending bill, said yesterdays
compromise was the best we
could get"
The six basic crops, which will
have the benefit of either the old
or new parity formula, whichever
is best for each crop. are cotton,
corn, wheat, rice, peanuts and to-
bacco..
Special Dairy Crop Treatment.
The agreement allows supports
on all other crops to move up or
down in relation to supply. with
special treatment accorded dairy
products. These must be sup
ported at from IS to 80 per cent.
Supports at from 60 to 80 per cent
apply to Irish potatoes, wool, in
Guiding mohair; honey and tung-
nuts. Other farm products could
be supported from zero to 80 per
(See FARM, Page A-3D
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