GEXERAL FARM PROGRAM 509 



As it now stands in the Government, they are bound to handle these 

 storables at some time and it will not cost them too much. 



I think we should be very careful and farmers should have to agree 

 to some kind of program that would not cost the Government too 

 much. 



We set up the Commodity Credit Corporation in 1933 or 1934 and 

 they set up 4.75 billion dollars to finance it. 



That same money would do more then than it will today because 

 prices are higher today, but I do not think the loss would be 

 tremendous. 



]\Ir. Granger. You heard the questioning this morning. We are 

 spending $15,000,000,000 for the military, and perhaps nearly that 

 nnich more for overseas expenditures. We also have this great debt. 

 The question was asked : Should we go ahead under those conditions 

 and support farm commodities ? 



There was a lot of weeping on the other side on that question this 

 morning. 



Are we willing to start to curtail on something that is basic to the 

 American people and basic to the world? Is this the place to start? 



Mr. WixGATE. I would say that we are in a peculiar situation here, 

 when the European recovery program is on and we are going to watch 

 it very carefully and try to have our programs work in with tlig 

 ECA and not get the props knocked out from under us by having it 

 all cut off at one time. 



I think it can be worked out. Congressman. I would like to call 

 vour attention to one thing, gentlemen. We are called upon to main- 

 tain surpluses in tremendous volume. They say a normal surplus for 

 cotton is somewhere between 5 million and 6 million bales of cotton. 



That surplus is included in normal supply. That takes in your 

 domestic consumption plus your exports plus a fair carry-over. 



That is your normal supply. 



We are right on the point of what we call the normal supply now. 

 Gentlemen, if you take the guaranties out from under cotton and if 

 they had not been under there this year, cotton would sell for less than 

 15 cents a pound. 



There would have been no way around it at all this year. Still it 

 Avould be just a normal supply. 



Mr. Graxger. Then it would have an effect on every other agricul- 

 tural commodity in the country. 



Mr. WixGATE. That is right, sir. This is the reason I am disturbed 

 about the normal with the guaranty at 75 percent. 



That would be the price. 



Mr. Pace. Wliat does the Aiken bill to do to cotton? First it re- 

 duces the parity price of cotton. Secondly, it reduces the support 

 price of cotton. Thirdly, there, it changes the basis of making the 

 support price from seven-eighths inch Middling and takes off another 

 2 cents. 



The Aiken bill cuts the heart out of cotton three ways. Is that 

 right? 



Air. WiNGATE. That "is absolutely right. 



Mr. Pace. Yet they expect the cotton farmers of the United States 

 to support the Aiken bill. Have you found one yet who was in favor 

 of the Aiken bill, a single cotton farmer in the United States? 



