GENERAL FARM PROGRAM 1161 



really confronted in almost every commodity with a svu'plus-produc- 

 tion problem. 



Mr. Hope. Do you not think there is quite a little difference 

 between two methods of handling these things, in the case of a storable 

 and a nonstorable commodity? 



Secretarj' Brannan. There is. It seems to me that it makes it all 

 the more important that we bring the producer into the picture some- 

 how for the perishable commodity. Let us suppose the price went 

 50 percent below the price in the market place and got to cost us a 

 billion dollars a year for support and the price to the consumer was 

 still at the very high level. I do not think we would have a price- 

 support program shortly after that. 



Wliat we are really trying to do is get a program which will be defen- 

 sible from all angles. I say taking this pork out of the market and 

 trying to put it in the refrigerator is going to give us all kinds of 

 trouble. 



Mr. Andresen. Will the gentleman ^aeld? 



Mr. Hope. I have concluded. 



Mr. Andresen. How much pork do you think you would have to 

 buy before you would influence the price to go above the support-price 

 level? You stated a few months ago, as I understand you, that the 

 announcement that the British were going to purchase 60,000,000 

 pounds had an influence to bring the price up to the support level or 

 above. 



You have had a great deal of experience in buying wheat in par- 

 ticular and the Government was the main buyer of wheat in the 

 market. Do you think you would have to buy those billion pounds 

 that vou have been talking about without bringing the support price 

 up above $16.75? 



Secretary Brannan. Mr. Andresen, the question has breadth and 

 length and depth. Our example was a billion pounds over a year. 

 That again was related to the demand in the market place at a par- 

 ticular time, which is related to the national level of income. I do 

 not know how much of any one of these given commodities 3^ou have 

 to take out of the market place. I think it is particularly hard to 

 judge in the case of meat because meat is such an elastic item in the 

 consumer's budget. 



The housewife spends her money for about three items first — bread, 

 milk, and meat. If meat is attractive she is buying meat in greater 

 quantities than she is many of the other commodities. On the con- 

 trary, with our potato example, we have to take every potato out of 

 the market over about 250,000,000 bushels. It has gone down to 

 about 230,000,000 bushels because the inelasticity of the market for 

 potatoes is startling.- 



Mr. Andresen. I think potatoes would go to 50 or 60 cents a 

 bushel if you did not support their price. 



Secretary Brannan. They have been at that price. 



Mr. Pace. May we suspend here? Mr. Secretary, I dislike to ask 

 it but we would like to have you back for a little while tomorrow 

 morning. We have two other commodities to cover. 



Secretary Brannan. It is getting to be a habit, Mr. Chairman. I 

 will be happy to come back. 



Mr. Pace. It is a nice habit and we will expect you back at 10 

 o'clock in the morning. 



(Whereupon, at 12 o'clock, the committee adjourned, to reconvene 

 on Tuesday, June 7, 1949, at 10 a. m.) 



