Evening star., 1954-06-05
The Political Min
Eisenhower Fucing
I oueh Farm Bottle
Big Political Issue Has Reel
Economic Rumificutions
By Gould Lincoln

Economic Rpmificotions
By Gould Lincoln
The Eisenhower administration ana
Congress will soon come to grips with
the farm problem. Involved are the
economy of the United States and one
Of the most ticklish political issues Of
the coming congressional campaign.
On the one hand is the administra-
ton. which is fighting for the principle
OF flexible price supports for the basic
farm commodities. On the other, the
farm bloc in Congress is pressing for q
continuance of high, fixed price sup
ports. The Senate and House Com
mittees on Agriculture are working,
hard to perfect bills for the considera-,
ton Of their respective houses. The
House committee may have q bill to
report sometime during the next week
or 10 days. :
Much depends on whether compro-
mise measure can be worked out in
Congress, and whether q farm bill is
passed by Congress which the President
will approve. Without attempting to
forecast such bills provisions, Presi-
dent Eisenhower said at his most recent
press conference he was unwilling to
compromise principle. He is strongly
backing the position Of his Secretary Of
Agriculture, Ezra Taft Benson, strong
advocate Of the flexible system of farm
price supports. The President has not,
however. closed the door to some form
Of compromise. r
Benson's Position.
Secretary Bensor's contention is that
the country-and the farmers them
selves-cannot afford to continue in.
definitely the present. high fixed sup
ports for basic commodities. In speech
he made recently in st. Louis, Mr..
Benson gave startling figures of the
huge SurpluSes which are accumulating
under the existing system of rigid high
price supports-90 per cent of parity.
He said that the Commodity Credit
Corporation now owns outright and has
Government loans on enough wheat to
provide every average family in the
United States with 400 loaveS of bread.
1t owns and has loans on enough cotton
to supply the average families with lit
shirts and 81 house dresses. The corn
it holds would supply an average family
with pork products with the corn fed
to hogs) for six months, and enough
butter to last the average family for
three months. The Surpluses, Mr.. Ben
son pointed out, are constantly on the
increase. For example. by July 2. the
wheat carryover will be three times what
it was in 1852: the cotton carryover
three and half times what it was two
years ago, and the corn carryover
double what it was in 1852.
Supporters of high fixed farm sup
port prices, on the other hand, fear
that reduction of those supports will
cause the farmers much trouble. While
farm prices are more stable today than
they have been. there are still declines
here and there. Farm income has
suffered some neutrality-suspicious.
in view of the continued prices of things
the farmers have to buy.
Committee Line-U Ups.
As things stand, the friends of fixed
price supports constitute a majority Of
the House Committee on Agriculture
and the count is very close in the SEN,
ate Committee. The House and Senate
themselves will eventually pass on the
provisions of a farm bill. and pred.c-
ton is made that the details of the bill
will be finally worked out in conference
between the two houses. ..,.,
Should no legislation be enacted, a
system of flexible price supports will go
into effect-under the terms of the
Farm Act of 1949-supportS ranging
from 80 per cent to rs per cent for the
six so-called basic crops. In this way,
the administration would be a victor.
It might be q costly victory, however,
in the field of politics. Republicans
must have members of Congress from
the great farm States of the Middle
West and West, If they are to continue
to control Congress. The Democrats are
counting on farmers resentment, If
their price supports are reduced.
The only likely compromise, it is said,
would be to provide for the continuance
Of fixed price supports for a year, or
two years, with a provision that there
after the flexible system shall become
effective. That will not satisfy the
ardent supporters of the flexible sys-
tenn. On the other hand, it will not ap-
peaSe the out-and-out supporters Of
fixed price supports. who do not wish
to vote even for a future date for the
flexible system.
Reports from the farm areas are to
the effect that many of the farmers
themselves are feeling better about
flexible supports; that they are begin
ming to realize the great consuming
public will not stand permanently for
high fixed supports, for which the
public has to pay in taxes, as well as
pay more for its food