AGRICULTURAL RELIEF

121

Mr. BLepsoE. During those five years.

Mr. Fort. During the 20 years, isn’t it?

Mr. BLEpsoE. No.

Mr. Fort. You said 56.6 cents average for 20 years.

Mr. BLepsoe. The average loss years; that is just for the five

ears.
’ Mr. Fort. You mean only in the years when there was a loss?

Mr. BLEpsoE. Surely.

Mr. Fort. I thought that was applicable as the result of the whole
20 years.

Mr. BLEpsoE. Mr. Fort, you know what I am talking about.

Mr. Fort. No; I haven’t got that figure right.

Mr. BLEDSOE. Well, there are five losses, and those losses amount
to 56.6 cents when divided by the 20-year period.

Mr. Fort. In other words, your 20 years’ loss is $11.20.

Mr. BLEpsoE. Something like that.

Mr. Fort. Well, twenty times 56.6, your total losses in 20 years,
or is that your net loss in 20 years? Is that reached by offsetting
your profits?

Mr. BLEpsoE. No, no; just for the five years.

Mr. Fort. That is the five years’ loss?

Mr. Jones. Yes; spread over 20 years.

Mr. Fort. In the five years if you had an average loss of $2.20
in the years you had a loss that, of course, showed a loss, but in the
other 15 years you had a profit?

Mr. KincHELOE. That was ‘the average of the five years’ loss.

Mr. BLepsor. All rieht, Mr. Fort, I am going to answer you right
DOW.

Mr. Fort. All right. It is very hard to analyze figures when you
analyze them through the ears. It is much better to analyze them
through the eyes.

Mr. Buepsok. All right, Mr. Fort, I will read that over to you
again.

Statistics for a period of 20 years show that with certain explainable
exceptions the average price of cotton during the period that farmers
usually sell their cotton, namely, from September 1 to December 31,
is lower than the average price for the twelve months beginning
September 1 and ending August 31. Some of us who have been
studying this matter are convinced that it would redound to the
substantial gain of cotton farmers if a plan of insurance against price
decline during any one cotton crop year could be put into effect.

Under the plan which I propose, the cooperative cotton associations
would be guaranteed that their weighted average daily spot price
during the delivery period, i. e., from September 1 to December 31,
would not be less than their weighted average selling price for the
year; and consequently such associations would be able to pay their
members approximately the full spot market price for their cotton at
the time of delivery less carrying charges.

Statistics which I have compiled show that such a guarantee could
safely be made by a Government agency in the cooperative associa-
tions in consideration of the payment of a premium of approximately
one fifth of a cent a pound. Under the plan the member would
receive, as indicated, approximately the spot market price for his
cotton on the day of delivery, and if the average annual price of cotton