AGRICULTURAL RELIEF 
57% 
Mr. AxpersoN. I am simply pointing out the President’s objec- 
tions and the facts which I think support those objections. 
Mr. FrLMER. You state that under this bill it would be a matter 
of guessing whereas under the present system we have just about as 
many guesses as we have under this bill, as I sec it. 
Mr. ANDERSON. Yes, but people are making those guesses on the 
basis of financial risk involved, whereas here the Government is 
making those guesses for them and is imposing a tax in relation to 
the guess that it ultimately makes. 
Of course, the President points out that a basis of stabilization 
which is predicated upon costs plus for inefficient as well as efficient 
producers normally results in a increase in both acreage and pro- 
duction, on the average over a period of years, and that this would 
ultimately involve a large increase in the equalization fee, might 
ultimately bring about a breakdown of the system itself. 
The President calls attention to the fact that the bill would build 
up an enormous bureaucracy. I only wish to call attention to the 
fact that under this bill, in which no discrimination as between 
agencies 1s permitted, the board might be required to make a large 
number of contracts and these contracts and the operations under 
them must all be supervised and the results of those contracts deter- 
mined by an audit in order to fix the liability of the stabilization 
fund to cooperatives or corporations created by them as well as by 
processes, etc. 
I would also require a large force of men to audit and determine 
whether the equalization fee has been applied and payment made 
in every instance in which somebody is liable for its payment. I 
think the audit of these accounts would be a very difficult matter. 
The President pointed out that while the board will not buy or 
sell directly, it must, in determining the loss for which the stabiliza- 
tion fund will be liable, establish prices which are the basis of the 
losses in the contract and pass upon the purchases and sales made 
under them. This in his opinion practically puts the board directly 
in the business of fixing prices and of buying and selling on the 
market. 
The President points out there is no time limit under which con- 
tracts may run, and that there is no limit in the previous bill on 
the amount of liability of the Government for losses, charges, etc. 
That particular thing has been corrected in this bill by providing that 
total liability for which the equalization fund may be liable, whether 
put up in the first instance by the Government or later by contribu- 
tions through the equalization fee scheme, would be the maximum 
amount which the Government has actually allocated to the par- 
ticular crop, as I understand it, or perhaps the actual amount which 
would be appropriated for all crops. 
Mr. Menges. Mr. Anderson, does not the machinery exist now 
that you indicate here would be required for the handling of these 
crops? 
Mr. ANDERSON. Oh, yes; the machinery exists now for handling 
those crops. 
Mr. MENGEs. Who pays for it? 
Mr. ANDERSON. You mean the physical machinery? 
Mr. Menges. The machinery that is required to handle these 
crops In the market that vou have indicated: they exist now?