AGRICULTURAL RELIEF
cenerally spoken of; but I do not believe you gentlemen have thor-
suchly considered the impracticability of a second mortgage.

The plan would obviate the necessity of taking a second mortgage;
it would give the producer practically the same opportunities, under
this contract, without taking a second mortgage. He takes the risk
himself, and, as I understand the situation, the surplus 1s at present
being carried—it is being carried by the grower, 1t 1s being carried by
the speculator. The only friend the farmer has then to help him
carry the surplus is the speculator, and of course he carries it on his
terms of discount under the average market price. This plan will
rive the grower an incentive to carry his own surplus; and, as I
said, he is the only friend the surplus has. And it looks to me like
any inducement you could give the grower, to carry his own surplus
through his own organization, will be of benefit to our agricultural

roblem.
> Mr. AsweLL. May I suggest that you make clear what this propo-
sition has to do with the growers, that is, when the individual pro-
ducer brings his cotton to the warehouse and the insurance is placed
thereon. Did you make that clear?

Mr. BLEDSOE. Yes, sir, I think I did. I have here a form of con-
tract, that I think would clear that question up.

Mr. AsweLL. But this insurance does not apply to the individual
who does not belong to the cooperative association?

Mr. BLeEpsok. No.

Mr. AswerLL. I thoueht it would be well to make that clear to
the committee.

Mr. Houston. May I ask you just one question?

Mr. BLuepsor. May I answer this other first?

Mr. Houston. Pardon me. Go ahead.

Mr. BrepsoE. This will clear that question, I think, Mr. Aswell.
In order to permit the orderly marketing of cotton, the member
entering into the insurance agreement would market under this agree-
ment with the cooperative association, and that is the only way you
can get a seasonable average. Any individual could not take advan-
tage of this. You do not guarantee the individual, but the guarantee
to the cooperative association is that the average weighted delivery
price will not be more than the average weighted selling price of the
whole season.
~ Mr. AsweLL. Is that detailed information shown in that list dur-
ing this 19-year period?

Mr. Brepsok. No, sir; not those details. I have some figures
here that will show that.

Mr. AswerL. But the fact is that this plan would guarantee that
the cooperative would be enabled to pay the market price?

Mr. Buepsor. Yes; less storage, insurance, and interest.
Mr. AswerL. That is what 1 said. That is the advantage to the
individual producer.

Mr. BreEpsok. That is an advantage to the individual producer,
because he can have his cotton price insured for a reasonable price;
if the board decides that the figures here, which I have suggested,
are the figures which it will use. But this is left entirely with the
posrd, pad) they may enter into these insurance agreements in stich

rm of contract as they desire and at rates that they propose. wo