100,000,000lbs. Of Unsold Butter in U.S.A.

Chronicle (Levin), 3 December 1949, Page 5

100,000,000lbs. Of Unsold Butter in U.S.A.

Received Fridav 9.50 p.m. WASHINGTOX, Dec. 1. More than 100,000,000ibs. of unsold butter has accumulated as a surplus in ' Gnited States Goverment .warehouses. Agriculture Department offlcials explained that this is the reason why the Fnited States is unable to permit New Zealand, Australia, Demark and other 'nitter exporting countries to sell butter to the United. States for much-neea-ed dollars. , They said even if those countries- 1. were able" to -ofireTF butter at priees below the American price the Department could not permit its sale here beeauge of a law passeil by Congress this yeai: providing restrictions on the import of butter if the Umted States Governmem; owned a surplus supply which it was endeavouring to liquidate in an orderly manner. The law is part of the farmers' price to support legislation whefe.by the Government assists the farmers , to keep up the price of their produets by purehasing any surplus whicii they are unable to sell at a fair priee. ( ' The United States Government is ac- , lcumulating in its warehouses vasi; quantities of eggs, butter, potatoes ana other produets and spending hundrects of miliions of -dollars for them. The ■ Government is able to .dispose of only. a small quantity by giving them away to schools, hospitals and other welfare institutions. I