GENERAL FARM PROGRAM 1035 



industry they were putting on the market a large part of what it had 

 pui'chased, and from the standpoint of the market it reduced the 

 price so as to bring, according to my recollection, a loss of between 

 $300,000 and $350,000 out of money invested in the support-price 

 program for the 1947 and 1948 production seasons. 



I think it certainly would be unrealistic to continue that kind of 

 an approach and treatment of an industry which has responded as 

 patriotically as it did during the war, with such complete devotion 

 to the appeals for greatly enlarged production, as evidenced by the 

 increase of protluction from 8,250 tons in 1941 to 67,200 tons m 1948. 

 And surely I think there is one approach which we all must find, and 

 I assume equal responsibility, because I think the responsibility is 

 on your committee and mine to try to find out some method which 

 will allow this industry to continue on a basis that will show a profit 

 to the producers. 



I am not going to take more of your time. The problem is a difficult 

 one. 



May I make one comment with reference to the support-price 

 period. The period which is picked out by the distinguished Congress- 

 man who sponsors this bill would result in a price so much less than 

 the prices that have prevailed during the war years, during the 5 

 years immediately following, it would hardly give any comparison 

 for them. Without having computed it, I would not even attempt 

 to say how much less, but a vastly smaller support price, and I doubt 

 if it would be enough of a support price to maintain the activities on a 

 proper basis. But I suppose he took those years, and I respect him 

 for taking them, because they were the last years of civilian time, of 

 peacetime production, and because I realize that.it is not typical to 

 take years of which two are years where the Federal Government 

 has made 100 percent purchases of the entire production, or 1 year 

 where they have made a very large part of the purchases and the years 

 when they had a support-price program. So it will be rather difficult, 

 and I realize it is going to be difficult, to determine what is the proper 

 base for a parity year, or what is the base for fair computation of what 

 the industry should have. 



Mr. Chaii-man, I appreciate the opportunity to make this brief 

 statement. 



Mr. PoAGE. Senator, Mr. Hope would like to ask you a question. 



Senator Holland. Yes, Mr. Hope. 



Mr. Hope. Senator, I am wondering how much of a solution to 

 the problem, over any considerable period of time, stock piling would 

 be. 



Senator Holland. I think that is very true. The stock piling — • 

 the first thing I would have to say in connection with stock piling is 

 that it would be in the interest of Government, and the second thing- 

 is the fact thut while the stock piling was being built up to the point 

 that it would give safety to the Government we would have to deter- 

 mine what course to pursue. It does not in any way provide a per- 

 manent solution. 



Mr. Hope. And as time goes on we would still have the problem 

 with us. 



Senator Hollan^d. Yes. 



