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Henry a Wallace — Part 4
Page 232
232 / 543
APRIL 14, 1947
ET
Our International OPA ,
Wwe there is not enough to go
around, you try, if you are a
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-
p-—-eae ~~ 1Zed* by=Title HE 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 ate 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
II of the Second War Powers Act,
which was to expire March 31, and he
introduced a bill, S. 931, to that effect.
This. bill would have removed controls
on everything except tin, antimony, cin-
chona bark, alkaloids and streptomycin,
and would have extended control on
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 committee was amended to in-
clude the control of cordage, tractor ex-
ports and transportation until June 30,
1947. There was also a general provi-
sion which may be interpreted 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
prices 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 hot,
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,
37
already suffering from inflation like the
rest of us, will be left holding the bag,
The effect on binder twine alone,
of which there is a 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
would be diverted from farm use into
the production of more profitable items,
such as wrapping twine, padding for
bedding, furniture, carpet yarns and
paper.
Or take tin.» The US normally con- _
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 a demand for
apptoximately 120,000 tons. Under
Present controls, consumption can be-
held to 90,000, but that amount will
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 coun-
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
aside for needy countries.: 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
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