GENERAL FARM PROGRAM 309 



That high level was not really out of balance or out of line when 

 you consider the supply and the demand for the commodity. 



Therefore, the objective of the recommendations is to get the supply 

 adequate enough to satisfy that demand at lower levels of prices. 



On the general economic question, it seems to me that maybe just 



this brief comment might be helpful. We are shooting at anover-all 



farm income because if we can keep farm purchasing power high, if 



we can keep the demand high for industrial goods, our entire economy 



'will enjoy the benefits. 



Mr. Simpson. You will have to get the income tax in here, will you 

 not? 



Secretary Brannan. Yes. We can keep it for many of the durable 

 goods which are being sold to farmers. 



In other words, we can keep the economy moving and healthy and 

 vigorous. 



It is at the agricultural segment of this total pie of economics that 

 we are devoting our attention and saying if we can stop a depression 

 from starting here and not be unreasonable to the rest of the people, 

 then we are rendering a service to the rest of the people because none 

 of them wants to be infected with a depression which starts here. 



Mr. Simpson. But there is no commodity or service that has gone 

 down a third from the postwar high except agriculture? 



Secretary Brannan. That is right. 



Mr. Simpson. I still contend that if you do not keep high agricul- 

 tural prices, and high wages, you will not have good business and you 

 will not have $40,000,000,000 to run this country for this fiscal year 

 and you will not have 41.8 billion dollars to run the country for the 

 next fiscal vear when you have $14,000,000,000 for defense, $14,- 

 000,000,000^ for veterans and $7,000,000,000 interest on the bonds. 



You have got to keep them high, have you not? 



Secretary Brannan. I certainly think so. 



The Chairman. Are there any further questions? 



Air. O'SuLLiVAN. Yes, I would like to ask a few questions. 



Mr. Chairman. Mr. O'Sullivan. 



Mr. O'Sullivan. Mr. Secretary, as I understand it, this is a 

 proposed program for the dnect benefit of the farmers, and indirectly, 

 if at all, it is also for the benefit of our over-all economy. 



Secretary Brannan. Yes, sn. 



Mr. O'Sullivan. You start out with the thought in mind that this 

 program is for farmers as a class and j^ou realize that the farmers are 

 very largely responsible for good time or bad times in proportion to 

 their ability to make money at farmmg? 



Secretary Brannan. Yes, sir. 



Mr. O'Sullivan. And that our economy m this country is geared 

 to agriculture, is that right? 



Secretary Brannan. Yes, sir. 



Mr. O'Sullivan. And you want to put in the hands of the farmers 

 sufficient mone}^ to give them good purchasing power? 



Secretary Brannan. That is right. 



Mr. O'Sullivan. That purchasing power in the hands of the farmer 

 will move in the course of events to the manufacturers and to industry — 

 they will have a sale for their products — is that not correct? 



Secretary Brannan. That is correct. Air. O'Sullivan. 



91215— 49— pt. 2 12 



