Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-18
The Political Min ]
Peace and Prosperity
Can We Have Both?
Political Attacks on
Butter Policy Challenged
By Gould Lincoln

Inc country Is on its way to finding
out if it can have peace and prosperity
at the same time. It's an end which
Democrats must desire as well as Re-
publicans. The Democrats. however.
are shrieking that peace and prosperity
cannot be had as long as Republicans
remain in control Of the Government,
and Republican policies are the order
of the day. Their orators. among them
Senator Douglas of Illinois and PresF-
dent Walter Reuther of the CLIO, insist
that a recession" is already here and
expanding; that unemployment is on
the march. Senator Humphrey of Min
nesota is hammering Secretary of Ag-
riculture Benson and the Eisenhower
administrations farm program and
policies. He has attacked particularly
Secretary BenSon'S order reducing the
Governments support price for butter
and other dairy products from 80 per
cent of parity to IS per cent. He has
told the Senate such a reduction will
cost the dairy farmers of the country
$500 million. The Secretary,s action
was in accord with a provision for
flexible" support of farm prices. so far
as these milk products are concerned.
looks to flexible price support system
generally. instead of the fixed" sup
ports now provided for basic crops.
The Democratic orators are warning
the farmers that, under Republican
policies. they are going to take lick
ing-although the Democrats insist
their arguments are not political. :.
One Phase of Problem
This issue over Secretary Benson's
butter order is only one phase Of the
problem which confronts the Govern
ment. the people and the economy Of
the Nation It has it's significance, how
ever. 1t is step away from the policies
of more and greater subsidies by the
Government which have prevailed dur
ing many years of Democratic admin
istration, of more and bigger Govern
ment. and of ever greater Government
spending to produce prosperity, during
both war and peace years. Take look
at the situation which caused Secretary
Benson to issue his order regarding milk
products.
year ago the Government. through
the operation of the 80 per cent of par
ity price support of milk products, had
on hand the equivalent of LA billion
pounds Of whole milk Today, the Gov
eminent has on hand a total of 8 bill
lion pounds of the equivalent of whole
milk To reduce this to detailed figures:
The Government on February 10 of this
year had on hand 270,559 800 pounds Of
butter, 82,040,354 pounds of cheese.
and 469, $50, 900 pounds of non-fat dried
milk. The law providing price supports
for milk products. passed during DEM
ocratic administration. says that the
support prices shall be fixed by the
Secretary of Agriculture, Eat not in ex-
cess of 80 per cent and not less than rs
per cent of the parity price" as the Sec
rotary determines necessary in order to
assure an adequate supply" Obviously
an adequate supply of these milk prod
ucts, both for domestic consumption
and export has long been surpassed. "
Had a Years Warning. =
The dairy farmers have had years
warning what to expect. Secretary
Benson early last year, despite the fact
the surplus of these products was al
ready great. said he would leave the
price supports at 80 per cent of parity.
President Eisenhower has said that
consultations with leaders Of dairy
farm organizations have shown that
steps could be taken to ameliorate or
soften the blow of price support reduc-
tions. He indicated that some kind Of
governmental insurance might be
worked out.
The political implications Of the
Benson butter order are plenty. The
Democrats are making the most OF the
pinch which they see coming for many
dairy farmers. Senator Humphrey IS
up for re-election-and in Minnesota.
even if he were not strong already, the
farmers may show their resentment
against the Republican administration
by voting for him. Republican Con-
gressmen in many of the farm States
may suffer in their races for reelection
because Of the butter order.
The President has made it clear he
is going to support Benson and the
farm program, looking to flexible price
supports He does not believe that this
country should continue to produce
with an understanding that for much
of the production the final destination
should only be Government warehouses.
On the other hand. the President has
made it equally clear he will not stand
idly by if a serious recession threatens
the country. He WILL he has said, use
all the powers of Government to pre-
vent it.