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AGRICULTURAL MARKETING REVOLVING FUND 33 
r. Byrxs, Have you any ideal? 
r. Parxer. We have never been told about that. We have never 
told about the inside operations of the Federal marketing 
hinery. We do not know how much cotton they have; we do 
know how many futures they have bought; and we do not know 
4 much they have sold. All of that is matter that has not come 
in their reports. 
‘r. Byrxs, I do not suppose it amounts to 50 per cent of the 
"pn, or anything like that. 
Clr. Parker. No, sir, 
Tx. Byrxs, Is it about 15 per cent? 
* r. Parker. Normally, I should say, about 10 or 15 per cent. 
. Byrxs. Do I understand that it is your contention that the 
tge or holding of this 10 or 15 per cent of the cotton crop is hav- 
this effect upon those who handle the other portion of the pro- 
ion, or who would normally handle the other portion, by reason 
he fear that they may have, or from the fact that they do not 
» what might be done with this 10 or 15 per cent of the crop. 
then it might be released? 
r. PARKER. As much cotton as that, distributed in warehouses, 
r the financial responsibility of 1,000 merchants, would not be 
an influence on the market as it is when it is concentrated under 
ower of one group of men, or one man, or one single agency. 
ther they will dispose of it, or not, we do not know. Nobody 
vs what will happen, and, consequently, the merchant is inclined 
and aside. 
gr. Dickixsox. It has been my impression that an effort has been 
+e to hold this up as a “ bugaboo ” rather than as an actuality, and 
a lot of people were putting this up rather as an excuse, because 
1e fact that people are not taking any risks, and they are not 
ng things. I do not care what line of activity you go into, buy- 
ls being curtailed everywhere. 
r. Parker. Yes; I grant that. 
r. Ayres. I am very much interested in your statement that this 
shiny 1s available: May I ask you what constitutes that 
3 pinery? 
Th. Parker. It is the machinery of the American Cotton Shippers 
L icration, comprising something like 1,000 trained merchants, who 
i frell capitalized, and who have banking facilities for handling 
m. They buy cotton from the farmer, as it is offered, paying 
therefor, and immediately selling futures to hedge it. That, of 
£ se, is a bona fide contract for the delivery of cotton. Then, they 
able to borrow from the banks practically 100 per cent .of the 
t e of the cotton, because they have the sale already made. Now, 
7 do not necessarily deliver that cotton on the futures contract. 
better to sell it as spot cotton to the consumer, in which case he 
m that contract, so that whatever he loses on one he makes on 
ther. But if they can not find a spot buyer, or a spinner buyer, 
they go through with that cotton on the futures contract. They 
their money back, and can pay the bank. That is the primary 
inery. The secondary machinery is for the export of cotton by 
ly merchants, who handle it in Europe, where there is a demand. 
this new agency has adversely affected the market. 
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