AGRICULTURAL RELIEF

Mr. BLEDSOE. Yes, the world’s price; always. We deal in world

rices.

b Mr. Apkins. Well, my understanding of you at the beginning, and
correct me if I am wrong, is that at the present time, with the uncer-
tainty as to what the future market on cotton would be, that you
would be unable to borrow from the banks more than 65 per cent of
the prevailing price for cotton when it is marketed. Is that your
statement?

Mr. BLEDSOE. Yes, sir.

Mr. Apkins. The chief object of this insurance proposition then
would be this, that if this insurance feature was in operation, and
you are going to buy cotton at the world’s price and insure it at that
price, and that by reason of the security that this insurance afforded,
you would be able to get this price.

Mr. BLepsoE. Less storage, insurance and interest.

Mr. Apkins. Certainly; that is implied.

Mr. BLEDSOE. Yes, sir.

Mr. Apkins. That seems to be the chief object of this thing, if I
understand you.

Mr. BLEpsok. Finance and insurance are interdependent, you
understand.

Mr. Apxins. And if you had that privilege, you could go and
borrow this money at your local banks at the same cost, perhaps,
that it would cost you to use this equalization fund, or to use this
revolving fund?

Mr. BLEDSOE. Yes.

Mr. Apkins. That seems to be primarily the purpose of the
insurance feature.

Mr. Brepsor. Insurance is identical, probably, with financing;
they are both interlocking.

Mr. Apxins. That is the whole scheme involved in this matter.
There have been so many men who have attempted to speculate and
who have lost money, that there is sort of an odium, that is, on the
question of speculation, even on the grain exchanges. =

Mr. BLEDSOE. Yes. a

Mr. Apkins. And we are placing ourselves in position, then, in
part, to do part of the speculating ourselves, that is, holding up the
market and taking a chance on what the future will develop.

Mr. BLEDSOE. Yes. |

Mr. Apkins. Now, are you favorable to this kind of legislation?

Mr. BLEpsoE. I am here proposing this insurance amendment.

Mr. Apxins. This bill under discussion, you are in favor of it?

Mr. BLEDSOE. Yes.

_ Mr. Apxins. Now, supposing this should develop. I presume the
situation is about the same in your country as it is in ours, that the
farmers, whether right or wrong, believe we need some kind of an
agency to stabilize prices. Supposing that the Congress should
decide that the only chance to get a start with such an agency of this

ind, or any other bill, would be for them to report this bill out as
iA e want 1t, with all those thoughts in it, with the equalization fee.

13 you think Congress ought to pass the bill; or, if you have got

se things in if, that it should not pass it? - oo