GENERAL FARM PROGRAM 915 



Do you agree with me, then, when I say that nearly all the trouble 

 between labor and management arises durmg periods when the general 

 price level is moving, or has moved up or down to an appreciable 

 degree? 



Mr. HoLMAN. I think there is a good deal of truth in that. 



Mr. Gordon. Yes. 



Mr. White. I am glad to hear you say that because that is a very 

 strong factor in favor of the 90 percent of parity program. 



I would like to make a statement for the record that I think a stable 

 price level is absolutely essential for peace between labor and capital. 



Mr. HoLMAN. Of course, a stable price level may vary somewhat 

 from year to year. 



Mr. White. Then it is not stable. If it varies it really is not stable. 



I would like to direct a statement to Mr. Kopitzke in connection 

 with his statement. He made the point he thought the Secretary 

 should carry out the present law, and I of course want to point out to 

 him that the law is made with the provision that funds must be avail- 

 able for all of these things, and of course it is impossible for the Secre- 

 tary to support all commodities. He has to choose as between the 

 commodities. I hope that is understood. 



Mr. Kopitzke. Thank you. 



Mr. Andresen. Mr. Holman, I feel all witnesses representing dairy- 

 ing have made very good statement to this committee and you have 

 contributed valuable information. 



I am concerned about this long-range program. That is what we 

 are trying to formulate in the committee. I am mindful of what you 

 said, \h\ Gordon, that the Secretary said that he would continue to 

 support the price of certain manufactured products if he found outlets 

 for them. Well, the present outlets are the markets on dry skimmed 

 milk powder. That is paid for by the American taxpayer and sent 

 out of the country. I think as -a, permanent long-range proposition 

 we cannot depend upon the American taxpayer financing the export 

 of our powdered milk to other countries, so, therefore, in formulating 

 a long-range program, I think we have to get on a sounder basis. 



Do you have any comment on what that would be? What use would 

 you put that skimmed milk powder to in this country m a long-range 

 program? 



Mr. Gordon. I believe for one thing there has been, according to 

 our nutritional board, much to be desired in our bread from a nutritive 

 standpoint; that at very little cost we could fortify our bread, or enrich 

 it by the addition of some milk powder. At the present time I think 

 the average is about 2)2 percent milk powder. The recommendation 

 is 6 percent. If we could subsidize the baker to use anything over the 

 2)2 percent by a cheaper price, I think it would certainly clear our 

 shelves of all the milk powder that we would produce in excess. 



Air. Andresen. Well, there you have a subsidy involved again. 



Mr. Gordon. Yes. 



Mr. Andresen. And today it is questionable whether we will be 

 able to raise the money from the taxpayers to pay all of these sub- 

 sidies if we put the Secretary's proposal into operation. That will 

 cost us billions of dollars every year, as I see it. All of these guar- 

 anties are very disturbing to me because it takes money. 



Mr. Gordon. This would not take very much. It would take 

 millions; it would take very few millions. 



