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Henry a Wallace — Part 1
Page 206
206 / 228
®
a
APRIL 14, 19-47 | =
¢
Farm
Our International OPA ’
HEN there is not enough to go
around, you try, if you are 2
realist, to divide it fairly. You know
that if you try to hog everything, the
fellow across the sea or even the fellow
in your own country will grab some-
thing you need and jack up the price.
So you study your needs and the needs
of others and plan accordingly. And of
course you have to have such authority
for this planning as the controls author-
ized by Title III of the Second War
” Powers Act (which regulates imports,
allocations and priorities) and the Ex-
port Control Act (which covers ex-
ports).
But if you are a fellow like Senator
Robert Taft (R, Ohio) you close your
eyes and go to sleep and dream of free
enterprise. You wake up feeling that
if only the government would take its
hands off, everything would eventually
straighten itself out. Although we have
shortages in our own country and al-
though people are starving in other
lands, you think that if the government
would stop allocating and channeling
scarce commodities all would be well.
You think that the boxcar problem
would solve itself. Boxcars of their own
accord would find their way into the
_- Middle West to carry wheat which can-
not be transported because there are not
enough boxcars to go around.
Senator Taft was all set to kill Title
If of the Second War Powers Act,
which was to expire March 31, and he
introduced 2 bill, S. 931, to that effect.
This bill would have removed controls
on everything except tin, antimony, cia- -§
chona bark, alkaloids and streptomycin,
and would have extended control oa
these items to March 31, 1948.
Happily, by the efforts of Senator
Aiken (R, Vt.) and others, the bill as
finally reported out of the joint con-
ference .ommittee was amended to in-
clude the control of cordage, tractor ex-
ports and transportation until June 30,
1947. Thete was also a general provi-
sion which may be intérpreted to cover
the import control of fats and oils. Ap-
parently Taft had to back down, because
he did not oppose his amended bill on
the Senate floor.
Aiken pointed out to the Senate what
would happen if the government took
off controls:
There would be competitive bidding and
contracting for available supplies, and
ptices would rise sharply, imposing added
privations upon the countries in most ur-
gent need of help, while setting in motion
inflationary price spirals in our own coun-
try, where a steady rise in living costs is
already causing grave concern.
While such price increases might bene-
fit some speculators, they would not great-
ly benefit our agricultural producers, be-
cause the major portion of our grain crops
which are sold off farms has already
moved into trade channels, and also be-
cause of inflationary production costs.
Now that the law has been extended
until June 30, when the Export Control
Act expires, the next job is to get both
laws further extended. If they are not,
and if everything is turned over to the
speculators and private traders, people
who need food most will get the least.
The farmers also will suffer because they
will not be able to get binder twine to
harvest their crops, boxcars in which to
put their grain or tin cans in which to
put their vegetables. Crops will rot in
the fields. Prices will go as high as a
cat's back and the American farmer,
WES
:
AQ
eady suffering from inflation like the
Rp ene eee ee eee
rest of us, will be left holding the bag.
The effect on binder twine alone,
of which there is 2 worldwide short-
age, would ruin many wheat farmers.
The US is the world’s largest importer **
of hard fibers, from which binder
twine is.made. None is produced do-
mestically. The hard fibers important to
agriculture are abaca, known as “Ma-
nila,” agave, sisal and henequen. Re-
moval of controls would mean they
——wontd-be diverted Froraefacmuse into
the production of more profitable items,
such as wrapping twine, padding for
bedding, furniture, carpet yarns and =
paper.
sumes one-half of the world’s total out-
put of tin and is entirely dependent on ~
imports. The tin supply will not exceed =
75,000 tons; there will be 2 demand for -
approximately 120,000 tons. Under |
present controls, consumption can be 3
held to 90,000, but that amount will 4:
exhaust our stocks. Controls are exer
cised to assure maximum production of
tin plate with minimum quantities of
tin. . :
TT Second War Powers Act also >
controls tractor exports. American -
farmers still can’t get the tractors they ~
need. In some areas the price of a sec-
ond-hand tractor is higher than that of a ~
new one. But if the government didn’t *
control the export of tractors, foreign |
countries could come into the US market *
and bid up the price so high that a poor -
farmer couldn't buy one. And the coua- ~
tries that needed tractors most might
not be able to get them at all
The US is a net importer of fats and
oils. It will import this year about 806 ~
million pounds of industrial oils and —
export 628 million pounds (mostly edi- |
ble). Part of our fats and oils are set 2
aside for necdy countrics, But if the ~
import‘ law is allowed to expire, the
tich American market would suck the
world dry of fats and oils and widen
the nutrition gap between starving Eu- _
rope and the United States.
Europe is in an even worse condi- ‘
tion than it was last year. Although ~
world production has gone up seven |
percent, demand is away ahead of sup-. |
ply. Undersecretary of Agriculture” |
Or take tin. The US normally con- 4
é
OT aT SS ae
Th -16-g come ORO I an etary ahem PIR
a a oh AY. STE 5 TEAS ee ate re ay a sf wt a tte .
St eeemer ete.
a
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és
ry:
i
AMT Or UBCEE 4
Pate rrr’
te Gate
+ mere TRAN: RPO: HEAT HE TEE TE NEON ETS
Uh
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