530 GENERAL FARAd: PROGRAM 



supply and witliliolding items in short supply. We believe that if 

 these groups had the legal means for assembling information and mak- 

 ing such recommendations, a large part of the problem Avould be solved 

 by sound production and marketing practices. Any widespread 

 attempt to use such common -sense methods today may subject the 

 participants to danger of Sherman antitrust prosecution, so definite- 

 enabling legislation is necessary. We have suggested further details 

 as to the make-up of the board in appendix B. 



We recommend that there be made available for use on recommenda- 

 tion of the board, or otherwise, under adequate legal safeguards, 

 marketing agreements on any commodity which could advantageously 

 use them, and such other devices for making a two-price or multiple- 

 price system affective as the Congress may determine, such as an equal- 

 ization fee, export debenture, the paritj' certificate plan, or the use 

 of section 32 funds for export aid. We believe widespread markets 

 in the chemurgic field can be developed if practical multiple price 

 systems are available. 



We believe that a board so equij^ped with power to employ a variety 

 of dcAHces, can develop ways of lueeting most of the marketing prob- 

 lems likely to arise in the field of most nonstorable crops and nwny 

 storable crops, so that they will finance tlieir own way to market either 

 through cooperative or noncooperative channels, without resorting to 

 the payment of cash subsidies, v ith all the disadvantages inherent in 

 any subsidy system. These we will discuss in further detail later. 



We believe that broad latitude should be given to the Board, or 

 given to the Secretary subject to the approval of the Board to select and 

 apply the device best fitted to get the desired result. Among the dif- 

 ferent determinations delegated to the Board, or to the Secretary in 

 consultation with and subject to the approval of the Board, would be : 

 (a) The device to be used with reference to each commodity, (h) the 

 level of support in case of support, (c) the nature of the support, 

 i, e., loan, purchase or other, (d) acreage or marketing allocations, if 

 any, and (e) all similar matters of polic}^ 



We believe sharing the responsibility with a board so selected has 

 many advantages. First, it would bring to the consideration of every 

 problem concerning Government aid or controls, the experience and 

 judgment of practical men in direct contact with the three major 

 groups concerned. Second, it would be conducive to the maximum 

 cooperation from these three major groups in working out any plan 

 agreed upon because of their participation in the formulation of such 

 l^lan. Third, it would be a safeguard against the use of politics or the 

 charge of political motives. T'ourth, the responsibility for tlie use of 

 such wide discretion as we believe to be essential to the sound admin- 

 istration of any such law, would be exercised only after as thorough 

 consideration by men of ability and experience as could well be pro- 

 vided. We have discussed with Secretary Brannan the necessity for 

 leaving wide areas of discretion to the Administrator, and each time 

 he has indicated extreme reluctance to having too much responsibility 

 placed on the Secretary for reaching decisions on these complex prob- 

 lems. Under such an arrangement as we are recommending this 

 burden would be much lighter. Fifth, there would be a tendency 

 toward a continuity of general policies in the event of change in ad- 

 ministration. It would mean that producers, processors and distribu- 



