AGRICULTURAL RELIEF

75

the member is paid lapproximately the full market price for cotton
at the date of delivery, and hence subsequent partial payments
will be unnecessary, operating expenses of cooperative associations
would tend to be reduced considerably. (6) Due to the fact that
she producer is not guaranteed a specific or artificial price, but only
against a seasonal decline in a price based on supply conditions, the
tendency to stimulate production in excessive quantities is not
present under this plan. (7) All of these factors would combine to
strengthen the cooperative associations and to promote the orderly
marketing of cotton.

This method for relief of cotton is sound. It involves no subsidy,
it would not put the Government in the business of merchandising,
it will not stimulate production, it will not involve any ultimate loss
to the Government, but it will enable the grower to more nearly
receive an average world price for his product over a series of years.
In other words, it would give the cooperative marketing association
insurance facilities based on and parallel with world prices as deter-
mined by the composite view of the traders in the exchanges of the
world.

Gentlemen, I also have here some statistics, prepared by Ernst &
Ernst, who made an audit of the New Orleans Cotton Exchange for
20 years, showing the daily spot quotations on middling cotton from
August 1, 1904, to August 31, 1926, and I would like to make this a
part of the record.

[ also would like to introduce, as part of the record, statistics on
wheat for the period of 20 years, and also a summary, for the same
period of 20 years, showing the losses that occurred to cotton and to
wheat at different times for different economic reasons. In other
words, it shows the conditions which existed with reference to both
products, wheat and cotton. These statistics also covered the period
in which the Government had control of the situation for a number of
years.

Now, these statistics on wheat are from the red book, by Howard,
Bartels & Co., and, while they are not certified by any public account-
ant, I believe them to be correct, as all of us believe that the red book
by Howard, Bartels & Co. is a correct statement of facts relating
to the prices of wheat.

The CuairMaN. Have you any other papers you desire to offer,
Mr. Bledsoe?

Mr. BLepsok. I have here just these two papers, both as to wheat
and as to cotton.

The CuairMaN. Is there any objection? If not, they will be
inserted, and it is so ordered.

NEw ORLEANS, La., September 13, 1926.
Mr. O. F. BLEDSOE,
President Staple Cotton Cooperative Associalion,
Greenwood, Miss.

Dear Sir: As requested, we have prepared and inclose herewith detail daily
spot quotations on middling cotton, New Orleans, as shown by the records of
New Orleans Cotton Exchange, covering the period from August 1, 1904, to
August 31, 1926.

[f additional information is desired, kindly advise us.

Verv truly vours.

Qt OT,

Ernst & ERNST,
Certified Public Accountants