The Farmville herald and farmer-leader. (Farmville, Va.) 1934-1957, 1954-08-13

prices and incomes in the event
of business recessiOnS. We should
make sure, however, that we do
not establish a rigid system Of
price relationships =. Prices
are and should be an effective
means of encouraging changes in
production as the conditions of
production and demand change.
In l947 in response to question
ing by members Of the Senate
Committee Of Agriculture and
Forestry. Carl c. harrington.
speaking as chairman of the De-
partments Committee on Price
Policy and Production Adjust
ment. said:
We have given much thought to
the percentage of mOdernized par
ity which might be used as a
minimum price floor. Our studies
indicate that so per cent of parity.
for example. might not be high
enough to act as an effective stop
loss mechanism. and 80 per cent
might force us into completely
managed agricultural economy.
President Truman sent a mes
sage to the Congress on May Ia,
l948. In it he asked for flexible
price supports in these words:
Many shifts in production will
have to be made and flexible price
supports will help us make them
in an orderly manner This will
require authority to make prompt
adjustments in support levels in
line with current and prospective
supply and demand conditions. 1t
will also require flexibility in the
choice of methods or programs
that are designed to be most ef-
fective for individual commodities,
that avoid waste, and that help
bring about needed adjustments
in production. distribution and
1 consumption.
Both the Republican and Demo-
cratic Party platforms in 1948
were straightforward in their en-
dorsement of the basic principles
of the Agricultural Act of 1948,
including flexible price supports.
Both candidates for President
campaigned in support of flexible
price supports. In a speech which
candidate Truman delivered at
Springfield. Ill. on October 70
Just prior to the November 2
1913, election, he said:
Here are the main outlines of
the AGRICULTURAL program we must
have.
l. Wa"must have on a perma
nent b:hsis system of flexible
price supports for agricultural
commodities. Price supports and
related measures help us to keep
our farm production adjusted to
shifting market requirements
The Presidents Council of Eco
nomlc Advisers on January 7.
l949, submitted an economic re-
view under the heading. Farm
price supports" in which thew
used these words.
lntercommOdity price relation
ships must be kept consistent with
basic trends in demand and sup
ply conditions. To the maximum
extent possible, parity price reIa-
tionships and support price pro-
grams should encourage shifts to
those commodities that are most
wanted Rigid systems of support.
IN violation of this principle can
only lead to rigid systems for re-
Strictins output that violate our
tenets of economic freedom, that
work against our detectives of
maximpm production. and that in
the end take away from farmers
incomes through decreased vol
ume as much as, or more than.
they add through increased prices.
The Agricultural Act of 1948
represents an important step for
ward in recognizing the difficulties
associated with overrigid supports.
In his budget message to the
8lst Congress in January. lo49
President Truman restated the
fundamental principles upon
which which the Agricultural Act
of 1858 was based
As said a year ago. price sup
ports should be regarded chiefly
as DEVICES to safeguard farmers
againa forced selling under un-
favorable conditions and economic
depression" Their purpose Is to
bring an element of stability into
agriculture. At the same time
they should not place excessive
burdens on the Treasury and tax
payers or inhibit shifts in pr0duc-
ton needed to meet peacetime
demands and to promote adequate
conservation of our soil resources.
TIL majority report of the Joint
Committee on the Economic Re-
port, headed by Senator O'Ma-
honey Democrat, Wyomine) and
Congressman Hart Democrat.
New Jersey has this to say on
May /, 1919:
In order to fit prosperous and