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1064 The next amendment was, on page 21, beginning in line 1, to insert:

LEGISLATIVE FINDING

The Congress herewith finds as follows:

The production and marketing of wheat and com constitutes one of the great basic industries of the United States with ramifying activities which directly affect interstate or foreign commerce at every point, and stable conditions therein are necessary to the general welfare.

Recurring surpluses and shortages of supplies of wheat and com on the Nation-wide market are detrimental to the general welfare of the Nation. Surpluses of such supplies destroy the income of farmers, their purchasing power for industrial products, and the value of the agricultural assets supporting the national credit structure. Shortages of such supplies result in excessive prices to consumers and loss of markets by farmer.

In the absence of effective legislation, surpluses of wheat and corn will accumulate and shortages of supplies will occur.

The general welfare requires that such recurring surpluses and shortages be minimized, that supplies of wheat and corn adequate to meet domestic consumption and export requirements in years of drought, flood, and other adverse conditions as well as in years of plenty be maintained, and that the soil resources of the Nation be not wasted in the production of excessive supplies.

The conditions affecting the production and marketing of wheat and corn are such that, without Federal assistance, farmers, individually or in cooperation, cannot effectively prevent the recurrence of such surpluses and shortages, maintain their incomes in a fair balance with the incomes of individuals other than farmers, maintain normal supplies of wheat and corn, or provide for the orderly marketing thereof.

The marketing of abnormally excessive supplies of wheat or corn materially affects the volume of such commodities in interstate and foreign commerce, disrupts the orderly marketing of such commodities therein, reduces the prices for such commodities with consequent injury to and destruction of such commerce, causes disparity between prices of agricultural commodities and industrial products in interstate and foreign commerce with consequent diminution of the volume of such commerce in industrial products, and otherwise acutely and directly affects, burdens, and obstructs interstate and foreign commerce.

The provisions of this act relating to wheat and corn, other than the provisions of this title, are necessary in order to minimize recurring surpluses and shortages of the agricultural commodities to which such provisions are made applicable and of other agricultural commodities, the marketing of which is atrected by surpluses and shortages of the commodities to which this act is expressly applicable; to provide for the maintenance of adequate reserve supplies and further the orderly, marketing of such commodities; and to maintain a fair balance between the incomes of farmers and the incomes of individuals other than farmers. The provisions of this title are necessary in order to maintain an orderly flow of such commodities in interstate and foreign commerce under such conditions.

Mr. BORAH. Mr. President, I simply desire to say that this amendment is a very good legal argument for the bill. While I disagree with the views expressed, I pay tribute to the legal ability of those who may be the authors of this strange amendment.

Mr. McNARY. Mr. President, I differ with my colleague from Idaho. I do not think the amendment is a legal argument at all.

The theory has been advanced by some persons that we must make a stump speech in a bill in excuse for the provisions which follow thereafter. I do not think the language of this amendment has any relation whatever to the bill. It is wholly immaterial, irrelevant, and incompetent.

UNDERCONSUMPTION IS OUR PROBLEM

Mr. O'MAHONEY. Mr. President, let me take the opportunity to say briefly that I do not agree at all with the conclusion expressed in this amendment.

The theory of the amendment is to be read in the last sentence:

The provisions of this title are necessary in order to maintain an orderly flow of such commodities in interstate and foreign commerce under such conditions.

I am not going to make a speech upon the matter at this time; but, inasmuch as we are about to vote upon the amendment, I feel it incumbent upon me to say that in my judgment the fundamental necessity at this juncture is the stimulation of consumption, not the restriction of production.

I have not a doubt in my own mind that the Congress can pass legislation which will stimulate consumption. No one, I am sure, will disagree with the statement that the problem which confronts the people of the United States is the problem of making it possible for all classes of the population to consume a larger proportion of our agricultural and industrial production than is now being consumed. This is a bill to expand the purchasing power of farmers. I am, of course, very anxious to cooperate in helping to expand the purchasing power of farmers; but whatever we do here will be only temporary in its character unless we find a way of expanding the purchasing power of the industrial population as well.

For my part, I am not ready to agree that it is necessary to begin by restricting production. We should take the first step of increasing the ability of all the people of America to consume the products of the farm.

Restriction of production on the farm necessarily involves a reduction of labor on the farm, and reduction of labor means a reduction of the purchasing power of those who are thrown out of employment.

Mr. McGILL. Mr. President, will the Senator yield?

The PRESIDING OFFICER. Does the Senator from Wyoming yield to the Senator from Kansas?

Mr. O'MAHONEY. I do.

Mr. McGILL. The Senator speaks of increasing the purchasing power of the industrial population and thereby increasing consumption. I assume the Senator has reference to the portions of our industrial population who belong to what may be called an employed class, persons who work for industrial concerns. Does not the Senator recognize the fact that the pay roll and wage of those persons have at all times gone hand in hand with the purchasing power of the farmers of the country?

Mr. O'MAHONEY. I recognize the fact that the graphs run up and down together; but, as I see the situation, there has been a restriction upon both pay rolls and agricultural purchasing power. The farmer's best market is to be found in the industrial population of America, in the big cities; and likewise, of course, the best market for the products of the mine and the factory is the farming population of America; so that, in my opinion, the two are indissolubly linked together.

Mr. McGILL. The manufacturers' wage pay roll, as a rule, has amounted each year to the same sum as the gross income the farmers have received for their products. The amounts have been almost the same year after year, so that the purchasing power of one has depended upon the purchasing power of the other; and we are endeavoring here, among other things, to increase and enhance the purchasing power of the farmer.

There is no disposition to produce less than the people will consume. There is no disposition on the part of anybody to do that. So far as I know, no one who is a supporter of this bill advocates a philosophy of scarcity.

Mr. O'MAHONEY. Oh, I quite agree with the Senator.

Mr. McGIlL. But we do want to enhance, among other things, the purchasing power of the farmer. Thereby we shall increase consumption; and I think this proposal has to do with that very matter.

Mr. O'MAHONEY. I merely wanted to express my opinion that the conclusion stated in this amendment does not correctly reflect the situation.

Mr. POPE. Mr. President, will the Senator from Wyoming yield?

Mr. O'MAHONEY. Certainly.

Mr. POPE. Does not the Senator think this is only one phase of the matter? Undoubtedly, as he suggests, other ways of increasing the purchasing power of the consumers are highly desirable—finding new uses for our commodities,and any other way of increasing the purchasing powers of the consumer.

Mr. O'MAHONEY. Of course; I agree to that.

Mr. POPE. I agree with the Senator from Wyoming that too much emphasis cannot be placed upon that; but does not the Senator also see the other side of the picture which is here represented? This bill does not attempt to solve all the difficulties of the farmer, but it is an approach to the matter of keeping up his purchasing power, by increasing