AGRICULTURAL RELIEF

93

Mr. Fort. I can see how we can insure you against the average,
but I can not see how we can insure you if you make a wrong guess
and sell it at a low price.

Mr. Brepsor. That is handled on facts collected, and we take an
average of the world’s market price. You will not find it in any one
year. It is the composite views over a number of years.

Mr. Fort. We are not insuring for 20 years; it is for the individual
rear.

) Mr. BLEpsoE. But we are not picking out individual years where
losses occur. It goes over the whole series of years and this takes
care of those conditions.

Mr. Fort. But when it comes to that, I think certainly we ought
to require this board to put in some safeguards against dishonest
and incompetent management.

Mr. BLEpsoE. I am willing to trust the board to make the contract.
[{think the board can take care of that end of the business. Just
give them the privilege of doing it, and I will trust the board with
making the contract.

Mr. Fort. 1 am opposed to that; I think we should have some
restrictions as to how that should be worked out.

Mr. BLEDsoE. I would be willing to trust the board to draw this
contract, or any other contract they will be asked to draw.

Mr. AsweLL. How does it apply to short cotton?

Mr. BLEpsoE. Better than to staple; the difference in premiums
on short cotton is less; and the discounts on short cotton are less
than on staples, and you could get nearer the full market on short
cotton. ,

Mr. FvLuer. Does your experience, with the information that you
have to-day about production and consumption, show that you are
more apt to sell cotton at the higher rather than the lower price?

Mr. Brepsor. The average is better than the weighted average.

Mr. FuLMer. But you want an entirelv new scheme for the pro-
ducer, on the average prices?

Mr. Brepsok. Yes, sir.

Mr. FruMeRr. And your figures are based on a 20-year period?

Mr. BLEDpsoE. Yes.

Mr. FuLumer. But in your new scheme you propose to carry it
into a long-period proposition, expecting to have losses in some vears?

Mr. BLEDSOE. Yes. :

Mr. FuLMmeRr. But out of an experience of 20 years you have more
years with profits than you have with losses?

Mr. BLEDpsoE. Five years with losses and 15 years show a gain.

Mr. Frumer. And to carry out your scheme, what would be the
amount of the fee? :

Mr. BLEDpsoE. The actual loss was 56.6 cents in the 20-year period,
according to the statistics, and I am suggesting $1.

Mr. FuLmer. And with the figures for the past 20 years there would
not be any chance to have any loss to the Government, according to
the figures you have there?

Mr. BLEpsoEe. No, sir.

Mr. FuLMERr. I am asking you this because it scems that a great
many members of the committee and a great many of the Members
nf Congress want to really pass worth-while legislation. Isn't it a