> COMMITTEE ON AGRICULTURE AND FORESTRY UNITED STATES SENATE FIRST SESSION PURSUANT TO S. Res. 117 A RESOLUTION RELATING TO A FORMULA FOR PART 2 JULY 16, 17, 18, 22, 23, 24, 28, 29, August 1, 5, 19, September 16, Printed for the use of the Committee on Agriculture and Forestry FORMULA FOR DETERMINING PARITY PRICES WEDNESDAY, JULY 16, 1941 UNITED STATES SENATE, ON AGRICULTURE AND FORESTRY, Washington, D. C. The subcommittee met, pursuant to notice, at 10:30 a. m., in the committee room, 324 Senate Office Building, Senator Elmer Thomas presiding. Senator THOMAS. The committee will be in order. On May 15 last I introduced a resolution in the Senate, Senate Resolution No. 117, having for its purpose the calling attention of the Senate to the situation in which the farmers of this country find themselves. The Congress had just passed a bill providing for loans on agricultural products to the extent of 85 percent of parity price, yet a good many people were unable to determine what the parity price of a given farm commodity is under the existing law, although we have some law on the subject. At this point I will place in the record the original copy of the resolution I have introduced: [S. Res. 117, 77th Cong., 1st sess.] RESOLUTION Whereas the United States is now experiencing a major national emergency; and Whereas in such emergency it is deemed absolutely necessary that all vital interests and necessary groups be protected, promoted, and placed on sound financial and economic basis; and Whereas in this emergency agriculture is one if not the most important interest; and Whereas our farmers are in a most deplorable financial and economic condition due to the existing low commodity prices which are far below parity in relation to the things which farmers must, of necessity, purchase; and Whereas taxes, interest, and debts cannot be paid and the Budget cannot be balanced until our farmers receive at least parity prices for the things they produce and the Nation must have; and Whereas there has been recently a rise in the price of commodities but still present prices are far below parity; and Whereas there has just been held in Washington a conference of commissioners, secretaries, and directors of agriculture, representing a majority of the States of the Nation; and Whereas in such conference the following resolution was adopted: “Believing that agriculture is entitled to equal protection as the foundation upon which our national defense must be supported, and that it should be assured complete equality with industry and with labor; "And believing that those agricultural commodities which are traded in on the Commodity Exchange is the least number of agricultural products that should be assured parity prices in the domestic market; "And believing that the domestic prices on these products should be protected by a tariff or excise tax on competing imports to the extent that the landed cost equals parity plus ten percent; "And believing that the surpluses of those products of which we produce more than our domestic requirements be sold in the world markets at world prices, and |