GENERAL FARM PROGRAM 249 



the present lawful price, and that is one reason we have been working 

 so hard to get that ironed out. Now the subsidy would only be the 

 difference between what the law says and what the farmer is receiving, 

 the price at the market place. That would not entail any great 

 amount of money? 



Secretary Brannan. That is right, of C3urse, if you assume any 

 established parity support level for manufactured milk, and that is 

 another item of discussion. 



Mr. Murray. Yes; I want to go into that a little later. 



Secretary Brannan. Yes. If we were obligated to support the 

 price, and if milk were selling 60 cents below that figure, under the 

 production payment plan the Government would step in and pay the 

 difference between what the fellow was selling his milk for on the 

 average, and the support level. 



Mr. Murray. I would like to discuss that a little more fully later. 



Mr. PoAGE. I want to ask about one other proposal, Mr. Secretary, 

 and that is the effect upon the attitude of the people who are receiving 

 direct subsidies. I think most of you will agree that it is not always a 

 deshable method, if another method can be found, and I take it you 

 have suggested the direct payment subsidy because there has been no 

 other method found whereby you can assure the farmers of this 

 country a definite price level, and at the same time let the markets 

 have free play? 



Secretary Brannan. I think that is right. 



Mr PoAGE. I know there are some people who think that subsidies 

 do not do any harm, but personally I think that the very acceptance of 

 a subsidy from the Government tends to break down the fiber of the 

 American people, of any people for that matter. I think it had a 

 devastating effect upon the British people; I think that it is breaking 

 do\\Ti the characteristics of self-reliance of which we are so proud, 

 of which any people is so proud, and certainly if we could find a method 

 that would achieve substantially the same results, substantially the 

 same objectives \\athoiit making a direct gift on the part of the 

 Government that probably our citizens would retain a great deal 

 more self-reliance and self-respect. 



Surely we have tried to do that for everybody else. We say to the 

 laboring man, and I think properly, that if you go into a factory the 

 Government is going to see that you get a fair and living wage; that 

 the strong arm of the United States Government reaches out and says 

 that no man can pay you less than a fair and minimum wage, that we 

 will not allow you to work for anything less than that, even though 

 some may want you to do so, but we have set a minimum wage and 

 below that we will not let any employer employ you. 



We do not say to the laboring man that it does not make any 

 difference if the factory cannot break even at 40 cents an hour, if 

 they do not add that much to their product that we will let you work 

 there, and let them, pay you whatever your services will actually 

 contribute to the output of this industry and then the Government 

 will subsidize you for the rest of it. 



We do not say that because the laboring people of America have been 

 too proud to accept a dole at the hands of the Government' — we do 

 not say that at least without sortie sugar coating — and the miions 

 have been insisting that they have the right to look any man in the 

 face and say "I work for what I earn." I want to leave the farmer, 



