Full text: Agricultural marketing revolving fund

Ist of April, the stabilization corporation announced a plan by 
which they would purchase wheat and store it with the millers and 
Pe millers could buy it and pay for it as they needed it in the 
Can you give the committee the details of that plan and tell us 
what was accomplished ? 
Mr. Lecce. I can not give you the exact figures as to the tonnage 
they handled. 
Wheat at that time was facing a rather nasty storage situation. 
Chicago, Minneapolis, and Duluth were congested and Kansas City 
was pretty full also, and the millers had a lot of vacant room. We 
called them together and asked them whether they could furnish 
the room free of storage cost, for the privilege of having the first 
option, at whatever the market was on wheat, when it was needed. 
It saved a considerable amount of storage expense to the stabiliza- 
tion corporation and was very satisfactory to the millers. 
. Me, Avres. About when did the demand for the storage space 
egin ? 
Mr. Lecee. As the new crop came 11. 
Mr. Ayres. You had only utilized this storage about two or three 
Mr. Lecce. Some of it ran four months; three months would be 
the average, perhaps. 
Mr. Ayres. May I ask whether or not the grain stabilization cor- 
poration had to sell the wheat at that time to these millers who 
were demanding this storage space at a low figure. compared with 
the market value? 
Mr. Leger. No, sir; it always had the privilege of taking it out at 
a lower cost on their part, at a cent a bushel, and putting it back 
in the cars. It was subject to the order of the corporation, 
Mr. Ayres. You did dispose of practically all the wheat you had 
stored at that time and sold it to the millers? 
Mr. Legge. Not all of it. Some of it was moved and sonie of it 
was disposed of to the millers. 
Mr. Ayres. The bulk of it? 
Mr. Linger. The bulk of it. 
Mr. Ayres. Do you remember how many million bushels had been 
stored ? 
Mr. Lecee. I do not believe IT want to answer that from memory. 
It was a substantial quantity. : 
Mr. Ayres. It had to be sold just at the time the new crop was 
coming in? 
Mr. Lrcoe. Yes; it made no difference in the quantity because it 
was immediately replaced by purchase. When 1,000,000 bushels was 
sold the stabilization corporation immediately purchased on the 
open market another 1,000,000 bushels. Tt did not reduce their hold- 
ings at any time since the 16th of June. 
Mr. Ayres. You do not think that had a tendency to reduce the 
price of the new crop? Lt 
Mr. LeceE. I do not see how it could. There was a lot of noise 
made about it. 
There was an option exercised by Hoffman in Kansas City for 
300,000 bushels, and the same 300,000 bushels was bought on the 
Kansas City market. cash eorain. within 48 hours. If he had no-

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