GENERAL FARM PROGRAM 617 



Mr. Graxgek. Mr. Davis, were you around when the 1938 act was 

 passed ? 



Mr. Davis. I was in Washington at that time ; yes. 



Mr. Graxger. Mr. Chairman, we have a lot of old members who are 

 here. Was it the theory in passing the 1938 act and in supporting the 

 basic conunodities that it would have a tendency to support the price 

 of all commodities ( Was that the theory ^ 



Mr. Hope. That was discussed and that certainly was taken into con- 

 sideration. The act also sajs that the Secretary shall support the 

 price of dairj- products and other commodities. It is not limited spe- 

 cifically in the 1938 act to the basics. The Commodity Credit Cor- 

 poration has always had the authority to support other commodities, 

 so I think that fact also was taken into consideration in the 1938 act, 

 that there was authority in the Commodity Credit Corporation and 

 also that there was a specific provision in the 1938 act. although it was 

 in their more or less as a side issue. I would say, that you could sup- 

 port dairy products and other commodities. 



Mr. Davis. As I recall on that point. Mr. Granger, the statement 

 was frequently made that if you supported the basics the nonbasics 

 woidd follow along. But I do not think anyone had in mind that 

 fruits and vegetables would follow along. I think that was directed 

 more toward livestock prices. There was a feeling that if 3'ou sup- 

 ported the price of corn that the price of hogs would adjust to it, for 

 instance. It was more in connection with livestock. 



Mr. Graxger. If that was the theory, then we have not had enough 

 experience to know whether that woidd really work or not. Soon 

 after 1938 we were in an abnormal condition with tlie war coming 

 along. We have really had no liistoiy on it. If you supported the 

 basic crops ])erhaps it would have a tendency to raise the others up 

 to their level. 



Mr. Davis. I think there is a sizable segment of the livestock people 

 who still argue that that is true with livestock. The people in our 

 organization that are most discontented now are the perishable prod- 

 ucts producers. Citrus has been in bad shape and some of the others 

 periodically. It hap]:)ens rather suddenly. A year ago in a period of 

 4 or 5 days, cabbage found itself in trouble. 



Mr. Graxger. Your organization has been against the Brannan 

 proposal in general. Have you thought out any method whereby you 

 can support poultry, milk, and eggs unless they have compensatory 

 payments of some sort ? Is there any way you could do it ( 



Mr. Davis. On milk you have your market orders and your market- 

 ing agreements and your diversion programs. 



Mr. AxDRESEX'. That only applies to fluid milk. That is only one- 

 third of the milk that comes from the farms for market. Will the 

 gentleman yield ? 



Mr. Grax'ger. Yes. 



Mr. Ax'DRESEX. You have recommended that we put Secretary 

 Brannan's program in operation as far as eggs are concerned. Have 

 vou figured out what that would cost? 



:\rr. Davis. Xo. 



Mr. AxuRESEX. Has your organization given any consideration to 

 the cost of any of these programs to the Government and the ability 

 of the Government to collect taxes to pav for them ? 



