34 
AGRICULTURAL MARKETING REVOLVING FUND 
Naturally, people buy a commodity when it is low and try to sell 
it when it is high. That is due to the natural human endeavor to 
make a profit. Now, the effect of the present situation is one that 
nobody knows. Nobody knows whether cotton is low or high under 
the present circumstances. That is because of this element in the 
market that the trade is not accustomed to, and which it is unable 
to discount. 
Mr. Ayres. That suggests another question : In what manner could 
the Government, or the Federal Farm Board, use that machinery? 
Mr. Parker. Mr. Congressman, there is a great deal that could be 
said on that subject, but I do not think that any of us can intelli- 
gently reach a conclusion as to what could be done or could not be 
done until a real study has been made of the economic effect of the 
whole situation, as it riow exists, as a result of this new element, com. 
Ing into the machinery of business. We have got to find out what 
1t 1s. We do not know what the Farm Board has in mind. We do 
not think that they have anything that can ultimately work, but we 
may be wrong about that. 
Mr. Ayres. Have you discussed this matter with the Farm Board ! 
Mr. Parker. Yes. 
Mr. Wirriams. There has been a certain amount of discussion. 
Mr. Ayres. But no conclusion has been reached ? 
Mr. Parker. No, sir. 
Mr. Bucmanan. You claim that this cotton now held by the co- 
operatives being in such great amount, and under one control, con- 
stitutes a menace to the market. 
Mr. Parker. In this sense: It may never be a menace. 
Mr. Bucaanax. You think it may be a menace? 
Mr. Parker. You know this, that where a single agency has two, 
three, or four million bales of cotton waiting to be unloaded at the 
first chance, or whenever the market shows any strength, you would 
feel that your business was menaced. That is exactly 1t. 
Mr. BucnanaN. You feel that it may be a menace to have that 
cotton concentrated in warehouses, subject to one control. 
Mr. Parker. Yes, sir. 
Mr. Bucuaanan. You feel that it may be a menace to the market. 
Now, is it not a fact that some of this very cotton machinery, of 
which you have been speaking, have had under their control more 
cotton than the entire cooperatives have under their control now? 
Mr. Parker. I do not know. I do not know of any single ma- 
chine that has ever had any such volume under its control as that. 
[ do not think it has. ] 
Mr. Hogan. That is just exactly what is the matter. 
Mr. BucaaxanN, Do you not think they have more than that under 
their control? 
Mr. Hoean. We have 85 per cent of the cotton under our control. 
Mr. BucnanaN. Do you have that much under your control ? 
Mr. Hogan. Yes, sir. 
Mr. BucaanaN. Eighty-five per cent? 
Mr. HoeaN. Yes, sir. ) 
Mr. BucaANan. Of course, that is very much more than these 
other people have. 
Mr. Hogan. They have the United States Treasury back of them. 
That gives them the power to market at a loss. It does not make