AGRICULTURAL RELIEF

Mr. AsweLL. Would this apply to other commodities?

Mr. BLEpsoE. Quite so.

Mr. AsweLL. What about tobacco?

Mr. BLeEpsoE. But it does not apply to any commodity on which
there is not an exchange, and on which you do not have a world price
indicated daily.

Mr. AsweLL. I see.

Mr. BLEDSOE. The theory is this, Mr. Aswell—and I started out to
find out if it was correct—that it is logical to assume that the cotton
and grain distribution trade of the world can not maintain their busi-
ness unless they receive, over a period of years, at least the price paid
for the product together with all actual expenses incurred in handling.
And to finance this great volume of business, it is necessary to hedge
or insure the price of the product as purchases are made from the
producer. Furthermore, the purchasers of these hedges or insurance
contracts must, over a period of years, at least make expenses; and
it is logical to further assume that a profit is the only practical
incentive for the continuation of both of these functions.

Mr. Frimer. Under your scheme then, the grower would be able
to receive from the cooperative association practically the full price.

Mr. Swank. Mr. Bledsoe, under your plan, the cotton farmer, as
vou say, would receive the total price?

Mr. BLEDpsoE. Less storage, insurance, and interest.

Mr. Swaxk. I mean, he would receive a price in a one lump
payment?

Mr. BLEpsoE. Yes. That would cut down the operating expenses.
For instance, in my organization we have about 1,800 members, and
we have handled since we have been in business about $141,000,000
worth of cotton. Our trouble is in handling the small grower, with
a few bales of cotton; and I think the same thing is true in wheat,
and all cooperatives handling these little fellows. This would elim-
inate that, because on delivery you give him a settlement, and in that
settlement the charges for storage, insurance, and interest are taken
care of until final settlement.

Mr. Fvumer. Would you mind taking your figures and showing
the average price and premium for the past 19 or 20 years?

Mr. BLEpsoE. Do you mean showing the variation, or what the
average price was?

Mr. FuLmMeRr. What-the average price was.

Mr. BLEDSOE. I have got it here in this form. You want to know
the variation?

Mr. JoNEs.

Mr. FuLMer.
years?

Mr. BrEpsoE. The price. I see. I know what you are talking
about. I did not catch your question exactly. Does that answer
your question nroducing paper]?

Mr. Jones. 1t'hat is what I am getting at.

So: BLEDsoE. That statement covers the figures over that period
of time.

Mr. AsweLL. Put that in the record.

Ms, JONES. That will serve the purpose. Just put that in the
record.

Mr. Brepsoe. Yes: or do vou want it read?

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