AGRICULTURAL RELIEF 
3 
the equalization plan and those which are based upon other plans, 
in that the equalization bills have, from the beginning, made provi- 
sions to make the revolving fund that what its name implies it to be— 
a fund that will revolve back into the Treasury, eventually. 
I do not know how many years it will take for that to transpire, 
but in time the money will go back very similar to that $9,000,000 
which was taken out of the Federal Treasury 10 years ago to start 
the farm-loan system. All of that money either has been paid back 
to the Treasury or else lies in the Federal farm-loan banks ready to 
be turned back into the Treasury with 4 per cent interest. 
That $9,000,000 was a revolving fund, which was a loan, and the 
success of the farm loan system has permitted the F ederal Treasury 
to get this money back with 4 per cent interest; and the system is 
growing as a result of having had its first capital supplied from the 
Federal Treasury. 
Now, in this bill and in other farm relief bills, large amounts of 
money are asked, of course, because we are tackling a bigger problem 
than was tackled 10 years ago when the farm loan bill was started 
with only $9,000,000. But it is immaterial, as I said awhile ago, 
what the amount is, providing the bill is so drawn, as H. R. 7940 1s 
drawn, that the money will go back into the Treasury, be safeguarded, 
protected, and guaranteed by the equalization plan. 
Another point that we have gone forward on is that the obligations, 
which might be entered into by the Federal Farm Board, should not 
be such as will require the Federal Treasury to advance more money 
than is named in the revolving fund. 
Some point of criticism has been made to various farm relief bills, 
that there was no limit in the wording of the bills to the extent of the 
obligation which the Federal Government might be bound by the 
operations of the various boards named in the different farm bills. 
In this bill which we advocate the limit of obligations is specifically 
whatever amount is designated in the revolving fund. There 1S no 
possibility of Uncle Sam being obligated beyond that amount, and 
there is every reason to expect that he will get that amount back 
eventually with interest thereon at 4 per cent. 
I have given these facts to you as a sort of historical review of some 
of the things in farm relief that have advanced. and have placed it on 
a sounder basis. 
I am asked to point out some of the things in this bill which are to 
be changed, in order to make this bill read better than it does now, in 
our estimation. I will say that H. R. 7940 very accurately repre- 
sents the desire of all those groups which you heard President Thomp- 
son read the names of awhile ago, but, like other bills, in its formation 
various minds and various ideas have been expressed. I believe the 
chairman of this committee will permit us to bring to your attention, 
in the form of recommendations a few changes which we have made. 
If you will turn first to page 5, section 4, you will find some para- 
graphs on that page and subsequent pages relative to advisory 
councils. 
Mr. Fort. Up to section 4 everything is satisfactory, and the 
organizations mentioned all agree to the bill up to that point? 
Mr. Gray. Yes, sir. We have discussed at full length the make up 
of the Federal Farm Board and the method of filling vacancies and 
ceneral powers. and all of those details as shown on the pages prior