GENERAL FARM PROGRAM 463 



Mr. Kline. No, as a matter of fact vre thought h\st year was a good 

 year to leave them alone. 



Mr. AxDRESEN. You have already stated that your recognize it is 

 going to cost considerable monej' to carry out the Brannan program 

 and you hare no recommendations for us as to how we can raise the 

 money. You do not think it is an advisable time to increase taxes. 

 How do you tliink this program could be carried out ? 



Mr. Kline. The Federal Government, of course, can find dollars. 

 They can always inflate if they decide cold-bloodedly to do that, the 

 way you fight wars, for instance. But the most vulnerable point in 

 this whole thing from the farmer's standpoint is tied up with this 

 question you raised. 



Let us take the hog situation and take your assumption, which would 

 be that approximately 30 percent of the farmer's gross income is repre- 

 sented in a check from the Government. Anyone who knows the farm 

 business at all knows that the top 30 percent of a gross price has all 

 the net income to the farmer in it because his expenses have to be paid 

 out of his gross income. Here is the farmer in a position where his 

 ability to make a net income depends upon a check from the Govern- 

 ment. It is an extraordinarily vulnerable position. I do not think 

 any group of producers in this country would be willing to tie their 

 future to an annual appropriation from Congi"ess. It just does not 

 make good sense. 



Furthermore, it violates the principles upon which America has 

 become a great nation. It controverts this whole effort on the part 

 of the farmer to deteiniine what the demand is and to create the kind 

 of goods and services the public wishes to buy. 



Mr. Andresex. I am glad to hear you say that, because that co- 

 incides with my views. The farmer, for the success of his business, 

 would become completely dependent upon the Federal Government 

 for 30 percent or more of his gross income. My friend mentioned that 

 he would probably be dependent upon the whim of Congress. Con- 

 gress might be helpless in the matter. 



Mr. Klixe. That is quite right. 



Mr. AxDRESEx. Because Congress has to find a source to get the 

 money to meet the obligations, not only this obligation, but other 

 commitments that have been made. V\^e have numerous permanent 

 commitments that we must meet, not only in the foreign field, but also 

 in our domestic field. One commitment is taking care of the disabled 

 veterans of the country and paying better than $5,000,000,000 interest 

 on the bonds. Certainly- if we do not service those bonds the financial 

 stability of the country will be gone. Is that not correct? 



Mr. Klixe. Yes. sir. and certainly the Congress is, of necessity, 

 forced to consider the thinors which you are talking about. I might 

 suggest also that the unreliability of this sort of thing as it applies 

 to the farming business, takiiig into consideration the point you are 

 making, which is the inevitable circumstance that Congress must con- 

 sider the public budget and the public's interest. The point is demon- 

 strated clearly by the fact that in considering a program the figure of 

 $19 per hundred for hogs was used. It is a calculated figure based on 

 the income standard. In discussing with the Congress the matter of 

 cost some 3 weeks later, the figure $16.50 was used. 



