238 GEXERAL FARM PROGRAM 



Mr. Andresen. But due to the increased manufacturing cost, 

 increased wages and so forth the price of bread has not come down 

 appreciably. Some of them have reduced the price 1 cent a loaf. 



Secretary Brannan. Yes. 



Mr. Andresen. But there has been no great reduction in the price 

 of bread despite the cost of wheat going down over $1 a bushel. 



Secretary Brannan. That is right, but, of course, you can neither 

 blame that on nor credit it to the price-support mechanism. That 

 matter is controlled by factors which are wholly unrelated to the price- 

 support mechanism. Theoretically, if the price goes down to the 

 farmer, that reduction in price to the farmer should be reflected on to 

 the consumer. 



The fact that it is not is something that I say to you again we cannot 

 do much about with the price-support mechanism. Somebody else 

 has to do that. 



Mr. Andresen. You would not attempt to bring about a situation 

 where the city consumer would get a lower flour and bread price then? 



Secretary Brannan. Only by use of the price-support mechanism, 

 only to the extent that it would lower the price to the producer. 



Certainly I do not assume that the price-support authorizations 

 which we are talking about, which are in title I or II of the present 

 act, give the Secretary authority over or any jurisdiction over manu- 

 facturers and processors of bread, and I would just have to confess 

 to you under the law we are talking about I would do nothing about it. 



Mr. Andresen. O course, wheat will not be handled under the price- 

 support mechanism. That comes under the law. 



Secretary Brannan. That is the price-support mechanism, and so 

 is the production payment a price-support mechanism. 



Mr. Hope. Mr. Secretary, I have no more questions that I care to 

 ask at this time, but I want to say that irrespective of how much I 

 may find myself in agreement or in disagreement with the program 

 which you have suggested, I do think it is a very good thing that you 

 have brought this program to Congress. You have raised a number of 

 questions in connection with farm programs that ought to be considered 

 by the Congress and by the country. I think whatever the final out- 

 come may be as far as legislation is concerned that it is a valuable 

 thing for the committee and the Congress to consider these vital 

 questions that you have brought before us. 



Secretary Brannan. Thank you, sir. 



The Chairman. Off the record. 



(Discussion off the record.) 



(Thereupon, the committee adjourned until 1 :30 p. m. the same day.) 



afternoon session 



(The committee met, pursuant to recess, at 1:30 p. m.) 



The Chairman. The committee will be in order. Mr. Poage of 

 Texas. 



Mr. Poage. Mr. Secretary, before I proceed I want to, as far as 

 one can, correct the record. I know that you have not heard about 

 it. Nobody else on this committee has heard about it, but it bothers 

 me. 



Some 2 weeks ago I wrote an article regarding your testimony, and 

 I sent it down to my papers, in which I said that your objective was 



