246 GENERAL FARM PROGRAM 



Secretary Brannan. And we do on cotton, wheat, and other com- 

 modities, also, because in those cases the distinction is that we can 

 store them against the time when we may need them for a number of 

 national purposes; \vhereas you cannot store the other commodities, 

 you see. It is a case of getting in and getting out. 



Mr. PoAGE. I understand; it is a decided advantage. It is much 

 easier for the Government, and there would not be nearly so much 

 loss from the standpoint of cotton, wheat, and tobacco, as there 

 would be on the perishable commodities ; but instead of rewarding the 

 fellow who is doing the thing that is going to cost the Government 

 less, we penalize him and say, "You are not going to get the same 

 return that this man who produces perishables gets." 



Secretary Brannan. Mr. Poage, that is just a kind of way of looking 

 at it. I think the very existence of the price support for his commodity 

 is a reward. 



Mr. Poage. I do, too, but I am merely comparing it. He is cer- 

 tainly not getting the same reward as the man producing eggs. 



Secretary Brannan. Well, if he had been below the maximum 

 demand for his commodity he would be then in the same position as 

 the beef or egg producer would be. 



Mr. Poage. Well, the egg producer is above the demand. The 

 egg producer is not below. He is not in the same position. The egg 

 producer is producing a surplus now. 



Secretary Brannan. He is now. You are right about that. 



Mr. Poage. I do not want to pursue that further. 



The Chairman. Let me ask one question there. 



Do you propose, Mr. Secretary, to give this support price on eggs, 

 45 cents a dozen, on unlimited production of eggs? 



Secretary Brannan. No, no. 



The Chairman. How are you going to limit production of eggs? 



Secretary Brannan. If we had the production-payment authority 

 today, and the eggs began to go begging in the market place because 

 there were no takers at reasonable prices, I think we would try to use 

 the production payment as a limitation upon the production of further 

 eggs, just as we have said we would like to do with the production 

 payment on potatoes. 



The Chairman. You mean, to withhold the payment? 



Secretary Brannan. To noncompliers. 



The Chairman. To bring about a reduction? 



Secretary Brannan. To noncompliers, yes; with some kind of 

 limitation or goal. 



Mr. Poage. Bat I come back to the point that you obviously intend 

 to allow a production of more eggs than the market will consame at 

 the present prices. Yoa intend to allow the production of more milk 

 than the market will consume at present prices, and what you con- 

 sider to be a fair price. You intend to allow the production of more 

 pork than the market will consume at present prices. That is deliber- 

 ate. That is not merely accidental. As I understand it, that is a 

 fundamental of the plan. 



Secretary Brannan. Yes. 



Mr. Poage. You deliberately intend that that should happen. 



I think there are some valid reasons for allowing it, but nevertlieless 

 it does penalize, by comparison, the man who prochices the commodity 

 that is going to cost j^ou the least, to wit, the storables. You give 



