472 GENERAL FARM PROGRAM 



On the other end we have, to be sure, some slums in some cities, 

 some areas which require immediate attention in agriculture and 

 in the country. We have some jobs to do. One of the difficulties 

 in doing it by changing over your system, which is what we think 

 this thing would do if it were put into effect as it was suggested, 

 would be actually to reduce your capacity on the production end 

 where America has done the unbelievable by enhancing its economic 

 production. Tliat we must preserve, as we see it, and apply it to 

 the problem on the other end, which we ought to approach first on 

 the things with wdiich there is best agreement. It is by creating 

 the capacity in the individuals, by extension of education, by certain 

 Kinds of public works, the things which encourage new capital in 

 the area. It is a different sort of proposition. 



America's capacity to do that job depends upon her encouragement 

 of the efficiency of her production, which again I say is the marvel 

 of the world. 



Mr. Hill. Thank you, Mr. Kline. That closes my questioning. 



I might say, Mr. Chairman, since you have been so nice to me this 

 morning and everyone has listened so quietly to this last statement, 

 I think in my own experience that with the county agent work and 

 the great production of America and education that we have given 

 to these people on the farm, while we have given them the education 

 of how to produce efficiently, we have failed utterly to develop the 

 market and the use of the products to the extent that we have de- 

 veloped production. I think that might also apply to our industrial 

 production. That is all. 



Mr. Pace. Mr. Poage. 



Mr. PoAGE. Mr. Kline, I had hoped you might suggest some vari- 

 ations of the proposed plan and bill this morning. In fact, I had 

 hoped to get your views on the possibility of using insurance rather 

 than direct subsidy payments, but I see that that would take a long 

 time. Our time is getting so short that I will probably confine myself 

 to just one or two questions that relate to things in which we are most 

 definitely interested and which were mentioned in your statement. 

 1 would like to ask you about the philosophy behind the whole thing. 



Mr. Andresen, who is not here at the moment, asked you about the 

 cost of the Brannan plan. While I do not think you made any esti- 

 mate of the cost, I think it was generally agreed between the two of 

 3^ou that it would probably be rather excessive. Tlien I understood 

 you to respond, in reply to questions by Mr. Hill, that if we could 

 accomplish a shift of as much as 5 percent increase in livestock culture 

 instead of crop culture of our land that we would have taken care of 

 all of the so-called surpluses. 



Mr. Granger. Will you yield there? I think he meant a 5-percent 

 increase in consumption. 



Mr. PoAGE. That is right. That would have cared for all our 

 crop surpluses. Is that not substantially what you told Mr. Hill ? 



Mr. Kline. I believe I said in the nse of livestock and livestock 

 products. 



Mr. PoAGE. The use of livestock and livestock products contem- 

 plates the production of more livestock or you could not use it. If 

 this balance was that close, then it would seem to me that possibly 

 Ave are not faced with anything like the excessive costs that we had 



