Show Ikee Mame ain in washington by walter shead head correspondent 1 I 1 IV NU 1616 eye st N W weak new OPA bill controls by psychological all means abill enactment of the new OPA 11 1 1 bill weak as it Is may have a psychological if not an actual hand in controlling prices this reporter believes although it Is a hodgepodge of conflicting ideas it Is definitely better than nothing As the result of this bill for all practical purposes agricultural see sec clinton P anderson becomes the new boss of the food price control although the law places final authority in the three man decontrol board the cumbersome administrative istra tive process gives the secretary exclusive authority to recommend to the board in all likelihood the policy of the board will be set in accordance with the policy of mr anderson one of the secre well known views Is the elimination of food subsidies As a matter of fact present prices on foods except some which have soared beyond all reason and which are in short supply are believed by the agricultural boss to reflect the ceiling prices ot of june 30 when OPA control went off plus subsidy costs elimination of government subsidies are believed to account for an approximate 10 per cent increase on foods formerly subsidized and with another 5 per cent added on th the prediction is that most foods will level oft off at about a 15 per cent increase benefit to little man this brings into focus again the tha en endless adless argument is it cheaper for the general public to pay government subsidies than to pay tor for a t k 10 per cent increase in food prices price s at the retail level and the answer is it is cheaper tor for the little fellow those millions whose income is 3 a year and under because he pay the subsidy in federal taxes at any rate the government at this wr writing biting Is not paying out a dime tor for food subsidies on meat or dairy products subsidies went out with the old OPA in june if however meat and other products go back under price control it will be a question for the agriculture boss and the decontrol board to decide whether or not to subsidy payments as a policy or to do something else about control the new law ends all subsidies by april 1 1947 the mere fact however that the decontrol board has the authority under the new law to reinstate price ceilings without consulting industry or without giving advance notice we believe will act as a psychological threat which at least will wih make industry and producers a little cautious about boosting prices beyond reason opposed to subsidies farm organizations and the dairy industry have been fighting tor for elimination of food subsidies tor for years declaring that the treasury should not pay the publics grocery bill and that farm produce should go to market and be sold at a fair price fixed by supply and demand they now have won that fight at least temporarily subsidies are oft off these subsidies in two categories have amounted to a little over three billion dollars annually in theory farmers are supposed supposed to make up or loss of 0 this three billion in increased prices but will this be true there is every reason to believe that the cost of everything the farmer buys will rise considerably with the old OPA gone cost absorption by industry is also out and this means quick price gains for many goods to as high as 9 per cent the farmer gained only 10 per cent by elimination of subsidies and in addition there will be many increases in manufacturing costs which later will be seen in the retail selling price fencing building materials all kinds of farm machinery commodities of every description and there are many experts here who predict 11 at t least a 15 per cent rise in these th things ins the farmer buys to equal the 15 per cent increase in food costs former farmer may feel better so the question of whether the farmer is better oft off with or without subsidies is still a moot question and likely will be one thing however the average farmer independent as he is may feel better in knowing that the price he receives from his products whether they are high or low prices is not in part a government handout hand out meanwhile farm leaders here are getting set through these next few months for the new soth congress which convenes january 3 they have important measures passed over by the old congress which they will reintroduce for action a new ew parity definition which Is the legal basis for price support A long range program measured in the light of war experience and in the new concept of the world picture for agriculture is likely to develop the fight to create a single farm credit agency lost in this congress again will be sought |