Show 14 I r t y AS 1 STIlE THE second session of ot the then n Congress convent convenes probably probe probably ably the paramount Issus to b be solved Is Js the plight of ot the American Amer ican Jean farmer which includes about 22 12 million people deriving their Income income in In- come from agriculture The Income of ot these people hat has dropped from about 8 to about 4 of ot the total national income Often Olten the argument is J. used today today today to to- day that this Income drop is J. less Ie dangerous to the nations nation's whole economy than it was say ay in 1020 1929 because the farm population has hu dropped from about one fourth to about seventh one of our total pop The fact fad is Js however that in 1954 farm spending for the business business bus bus- iness of farming was 72 of our total national spending about the same lame proportion as it was Wal in 1929 despite the tremendous drop in farm population And farm spending spend pend ing for capital goods that is for I dwellings farm buildings cars can trucks machinery and equipment was 81 of the national total spent for capital goods as compared compared com com- pared to 6 66 6 of th the national total for such goods in 1929 Farmers buy a considerable portion portion por por- tion of their hard goods and most of their soft goods from small merchants mer mor- chants in their home communities How these small firms are hurt by bythe bythe bythe the spread between low farm prices and high consumer retail prices races is Js indicated by the statistics which show how that corporations with assets of more than million dollars showed increased net incomes after after aft aft- er taxes from 61 billion dollars dollan in n 1952 1912 to 74 billions in 1954 During During Dur Dur- ing the same lame period small firms with assets between quarter one-quarter million and a million dollars showed a steady decline from million in 1952 to less Ie than million million mil mil- lion dollars dollan in 1954 Much of this debate over th tM the steady decline In farm income will hinge over the question of surpluses sur surpluses pluses plus held by the Commodity Credit Corporation These surpluses stir sur pluses today are valued at about 7 billions according to the Department Department Department De De- of ot Agriculture although this thI is not wholly correct since about 21 billion represents loans to farmers farmen much of ot which may b be repaid The farm surplus is represented as u farm output which exceeds exceed de de- mand Actually the more correct representation would be output which exceeds ability to buy So 80 as a matter maUer of fact farm surpluses reflect under consumption anc and not production over for millions of ot people not only in this country but throughout the world are hungry hungry hun hun- gry and need this food Is this surplus dangerous to our economy and is la it Jt costing too much will be one of the questions question the Congress must answer One means of measuring surplus is Js the extent by which annual farm production pro pro- in any given year exceeds domestic consumption plus export export ex ex- port consumption For the eight years from 1947 through 1954 1914 the average annual surplus of all aU farm products lumped together has been about 1 16 6 of annual pro pro- production In recent years 1952 1912 through 1954 this surplus has been about 3 with a high of 4 42 2 in 1953 1913 and a low of 21 in 1954 Major industries even in times of high prosperity regard as desirable desirable desir desir- i able a gap of 5 b to 10 between I their productive capacity and their actual production |