478 GENERAL FARM PKOGRAAI 



Your whole assumption, as I understand it, is based upon the theory 

 that we will only have a normal snp])ly next August. I think it 

 is perfectly obvious that we will liave far more than a normal supply. 



When you get us u\) to 130 percent production — and I think most of 

 us agree that we will clearly have it — we are down to (>() percent of 

 parity support. 



JMr. Kline. You say next August. You mean August 1950. I am 

 sure, because we have washed out the possibility of cloing something 

 in August 1949. The law states that it shall be the purpose of the 

 acreage allotment to achieve an amount which is equal to the normal 

 supply. The purpose of the allotment program would be to have a 

 normal supply on August 1, 1950. I agree with you that the su])ply 

 situation is such now that it will probably be most difficult to get 

 down there. On the other hand, we sliould be able to make a lot of 

 progress in that direction. That is the purpose of an acreage-allot- 

 ment program or a marketing-quota ])rogram, to adjust to effective 

 demand. 



Mr. PoAGE. In other words, you hope that we can cut the acreage 

 enough next year, which is the very thing that you said a minute ago, 

 when you were talking, which we should not do, as I understand. 



Mr. Kline. As a matter of fact, I do not see any alternative. It is 

 in the law as we have suggested. We are in favor of it. 



Mr. Poage. And under the law as you have suggested it, as I un- 

 derstand it, if you are going to bring the supply of cotton down to 

 normal in one fell swoop next year, you will probably plant not more 

 than 50 percent of the normal cotton acreage. You have done, by that 

 method, just what I suggested you would do by the price method. 

 You have put the cotton farmer out of the cotton business only by 

 breaking him. You have just pointed out that you can break the 

 farmer by cutting his acreage so low that he cannot make a living. 

 You can also b'-eak him by reducing his price to the point where he 

 cannot make a living. You hold out, as I see it, the encouraging choice 

 to the cotton farmer that on the one hand he can go broke by having 

 his acreage reduced to the point where you will support him or if he 

 does not go broke that way, you will assure him that he can go broke 

 for want of a fair price. 



It is just a choice as to which way he wants to go broke, as I see it. 

 I would like to know which way you want us to go broke. 



Mr. Kline. I think. Mr. Chairman, that that question is at least 

 unfair, 



Mr. PoAGE. I will withdraw that question. I do not mean that you 

 want us to go broke, but I do think that is the result of the philosophy. 

 Can you show us anv other choice than to go broke one way or the 

 other? 



Mr. Kline. Certainly. 



Mr. Pace. Mr. Kline, I understand he withdrew his question. 



Mr. Kline. But he asked a new one. 



Mr. PoAGE. I am asking if he can show us what we can do. 



Mr. Kline. It is the same question but it is with good will both 

 ways. 



Mr. PoAGE. Certainly. 



Mr. Kline. All that we can do with anv kind of program is to get 

 into consumption all the cotton we can. There are some things afloat, 



