FARM PRODUCTION CONTROL IN U.S.A.

Chronicle (Levin), 24 January 1947, Page 7

FARM PRODUCTION CONTROL IN U.S.A.

Received Thursday, 7.35 p.m. WA8HIN GrTON, J an. 22. ^ The Seeret'ary for Agriculture (Mr. Anderson told the House Agriculture Committee that if the Covernment contiuued to guarantee miniinum priees for t'arm products it should have specilic power to curb the production of such products, otherwise the Government might have to spend 2, 900, 000, 000 dollars in 1948 in supporting prices with the result that production would outstrip the demand. The Government has sustained farin commodities x>rh>ea t° stimulate wartime production and give farmers some protection while they are changing from war to peacetime economy. The Government renioved surpluses from the markets by purchasing products aud loaus to growers of non-perishable products. Legal authority existcd for controlling production of certain basic erops like wheat, com and cuttun through limitation of the acreage plantcd and establishment of markct quotas. Power to eontrol the production of other commodities, however, Avas doubtt'ul. Mr Anderson said lie would feel niucli better about Ihe situation if specilic authority wero given lo deal with production. Mr. Anderson conceded thal he was on doublful ground \\ hen lie lm posed eontrols on the 1917 potalo orop after the Government lost SU,9UU,UUU dollars in supporting the 1919 potato priees. He sought authority to eontrol the production of pigs, milk, butterfat, poultry, dried peas, dry cdible beans and soy beans for oils, peanuts for oil, tiaxsced for oil, x^otaloes, sweet potatoes and cotton. The. yecretary of Agriculture (Mr. Anderson) asked Congress to x>ass legis lation immediately j>ermittiug Ihe Government to seli its hugo rescrves of wool at less than parity prices. Mr. Anderson told tlic House Agriculture Committee that unloss this Avas done the wool acquired under the priee support programme will be dumped on the market with possible disastrous eii'ects when the programme ends. The Commodity Credit Corporation owns about 160,000,000 lbs. of wool. Mr. Anderson said the Corporation cannot at present dispose of large quantities of its wool stocks because it is compelled to sell at parity and is constaiJLtly underbid by importers of ioreign woois. The wool purchase pricc X)rogramme expires on April 15.

American inq)orteis of woven wooilens, particularly those from Britain, urged a reduction of tarift's in contrast to the increascs urged by manufacturers using domestic supplies. Opposing views were expressed before a special congressional committee which is gathering data ou which the State Department, may base trade agreements with 18 nations. Those opposing tariff reductions generally contend that the iinportation of lower-cost foreign woollens would be detrimental to the American industry by placing it at a competitive disadvantage. The National Council of American Inqjorters contended that no evidence had ever been produced that the importation of 'JGnglish woollens adversely afl'ected American industry.