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The Food Stamp Plan makes It possib?

«TMM

r»ttinn public

assistance to Increase thair food purchases by 50 percentj their increased
purchases are nude entirely from among farm products determined to be °in
•urpl\*s"«

Xh&i is the way it irorkst

1* Studies indicate that persons getting public assistance spend
an O W M g i of about |fiU60 a week per person for food.
2#

On A voluntary basis, such persons may buy a minimum of $1*00 >s
worth of oranue stamps a week for each member of the family*
These are good for any foot at any grocery store.

3, Persons btiying orange staaps receive hall again as many blue
stamps fvee«

Tiiese also are good at any grocery store but

only for foods found to be n±n surplus" by the oecretary of
A^ricultar®.

(Chiefly dairy products, fruits ana reget&blcs; -

meats could easily be hai cled by this aethod, however.)
4* OroGtra paste the etaisps on $5*00 cards and redeem them
largely at their btafcfe '?h$ Oovenuwnt pay« the bsuk^ Iroa
the seme f^nds now used to purchase surplus eoasaodities directly
in carlot© for shipnont to the various states which in ttiro
make distribution to families UWWlfi food c*epots#
If participation throujghout the cow-try *wr* the same as in
Rochester9 N«w iork, soae flftcon nillioii eligl.bls people -ssotsld take
advantage of this program. It woulti add 2^-# »orUi of food to each meal
for eaoh person nho is now spending 5# a aeal*




• 2 •
That would coet about 360 million dollars * ymtm

Because of

administrative problems ootinecteu -with & n@*r program, it appears to be
wiser to sperd only 2$0 million dollars on such n program for the coming
fiscal yoar.
If the Congress passes the 113 »tlli**n dollar appropriation £&r
the p W f M i i tf 3ection J2 now before '

ftftpsMi

Coimitte*, in addition

to the 90 •nijga <iollnrs oth€>rwi'.?# Hfv^ilabl®, ateimt lno aillion dollars
of the $"*** iHlill dollar totsl would b© available fbr distributing swplus
foods to the naedy.

(The reaainlng 103 million dollars is n©«d«d to carry

Oi2t &*Gh work as the cotton export subsidy p M g M M g th« wheat e port subsidy
the peanut di version program, #t eet#r&«) An additional 150
dollars, therefore, woiild be needed to exterd the Food Stioap progrtJi
to 15,0<^>,000 eliiiible people during tha coming fiscal ymr*
The ?ow? Stamp Plan h&s received wide praise from th© rirht as well
A S frosi the left, Both groups, however, have 5jndlcated we a i ^ t consider
its extension to low-Income* people not getting public assistance*

Were

such fasilies making leas than $750 a year made eligible to parties pate,
studies of coraxjmer incomes m&6e by the Katlonal Peso^rees Cossaittee
indicate that, another 15,000,000 people would thereb;; become eligible «
and th« cost of the program would be I

"oubled. The "fi^t-to-eat*

at least lj& ^orth of foo<* a ae^l would apparently neet with the support
of far?sersf md low-inea^;e housewives, as well us thai of retailers#
would, of BSJttPfjsjj »ak« a ^reat contribution to the public health,
particularly insofar aa chlldrsr are concerned*




It

- 3 COT
In his Little look speech of |af 26, I MHWlitf -=allaco indicated
thst we might extend the Food Staasp FlMI principle to certain kinds of
cotton ijooda*

He said?

n

thB O M M t Ot of cotton ,.pods in our own c van try i s far lowar
V R p& f

th&n i t ought to be because the families who need theaa gooes a»st can't
buy them* A study covering 300,000 faaHie* w; a recently »ede
relisdnary fi :-'fKxr&& &re now p.T.r*?ils.bl©#

of title s
Hlfl

hey indicate that faaillea with incomes of (5*968 and over eper^i

nearly «i|f?t tlaee Ml «och Money for cotton goods Ml non»rollef families
•with iflMMM ef less lMM S50C are atl«» to srper^*
w

If the ^0 million faailies ^ t t i G ^ less than |&»0G0 a year spent

«s nooh for cotton goode &a those getting between ;2,0C0 and #3»CX)0 a
year, the cotton faraer wo'uld h&re s home eutlot fcr ftn additional two
million bales of cotton.

Such a situation would adc over hall' a billion

dollars & year to the income of the cotton South, of which part would go
to the cotton faraer and part would go to empl y people in aur cotton milla,
on mar railroads, end la our wholssait &r>ti r e t a i l dry ^oods store© throughout the country*
*People having *Uie lowest incosiss buy the botlof kind of cotton
goods first*

This is because th©^ need stattreaaes, comforters, blanket*,

sheets, towele^ overalls, pieee goods from which theg* can m&k& elothea
far a l l their chlldreeu

II vhey bought such Itmn a« these, a|q>roximately

20 oent* out of every dollar spent V
W

directly to the cotton faraeri

rou^ilj 5^ cents out of every dollar would cover th« cost of taanufacturing,
most of which would go to employ l&bor in our cotton a l l l a j and about



/•

-430 cents out of every dollar would cover the cost of transportation
end merchandising tl our wholesale m l retail dry gooe'e stores•
"tt&s i© not a complete solution for the cotton problem, of
course* but I feel as strongly as I 614 at Forth Rorth last tell that
the nation ought to find ways and nsans of turning its abundance of
raw cotton into e greater abundance of cotton coeds for our own people*"
Preliminary tables supporting these statements are attached*
100 Rillion dollars for the coring fiscal year would be enough to take
care of th« cotton good© requirements of the families now getting
public assistance*

It would move 400,000 bales of cotton through

the r.orasl channels of trade ar*c, in addition to th« i$r®up® now supporting
the flood Stamp Flan* Bxich a progr^i uisdoubtedly wotild receive the approval
of labor ^oupn

s well as of textile srAnufscturers*

R W i »R additioR&l

100 million dollar!? rnddad, a great deal could be done for low^incone
groups not receiving public ai<Sf althou^li they could rjot be brought
up to the maximim level indicated by the Secretary in his Little Rock
speech. This, of course, would not be desirable the first yesr.
About 90% of the prom ha$ supported the Staep Plan on an
ejperlisental baeis*

fhm country apparently is in u psychological

mood to utilise the surpluses *© have learned how to produce•