[22

AGRICULTURAL RELIEF
should be higher, he would receive the benefit of this higher price.
The premiums paid by the association would be used to reimburse
the association for losses that may occur and to provide a reserve
ny future losses. i
Oe statistics to which I have referred are the average daily spot
price of middling cotton on the New Orleans Cotton Exchange from.
September 1, 1905, to August 31, 1925, a period of 20 years. During
15 of these 20 years the seasonal trend of prices was upward, 1. e.,
the average of the prices during the selling season was higher than
the average of the prices during the farmers’ marketing season. The
years 1907-8 (during which we had money panic), 1913-14 (begin-
ning of the World War), 1918-19 (signing of the armistice), 1920-21
(the period of deflation), and 1923-24 (an underestimate of supply
and an overestimate of demand), showed a downward trend.
For the season 1907-8 there was a loss of 34 points or $1.70 per
bale. For the season 13—14 there was a loss of 6 points or 30 cents
er bale. For the season 1918-19 there was a loss of 87 points, or
$4.35 per bale. For the season 1923-24 there was a loss of 88 points,
or $4.40 per bale. The loss for the season 1920-21 is excluded for
the reason that a contingent liability from deflation does not exist
at present. That is my understanding at the present time.
Mr. Fort. That was really a liability from war at that.
Mr. BLEpsoE. We have left the liability for war in.
Now, this $4.40, with the $4.35, 30 cents, and $1.70 makes the
average of 56.6 cents for the period of 20 years. ;
Mr. Fort. Then I misunderstood your figures. You have had
a positive loss during those years, and if your figures—from your
figures, you show profit in the other 15 years?
Mr. BLEDSOE. Yes.
Mr. Jones. That shows in the table you had yesterday.
“rt. BLEDSOE. Yes. Here it is, Mr. Fort. [Producing paper.]
Mr. Fort. No, I don’t mean from that standpoint. I mean,
ave you anything, any corresponding figure showing that?
Mr. BLEDSOE. In average earnings here, it is 37.69 cents.
vir. Fort. 37.69 cents.
Mr. BLEDSOE. Yes, sir.
Mr. Fort. Then, in 15 years, if you had a total profit of about
$50, you had a loss of about $11.
Mr. BLEDSOE. Yes. |
Mr. Fort. Which would make a net profit of about $40 in this
plan over a period of 20 years.
Mr. BLEDSOE. $7.61 as against $37.69.
Mr. Fort. But you are eliminating one year. I do not think
you can eliminate a deflation loss any more than you can any other
Mr. Brepsor. I discussed that with Mr. Seibles very carefully.
You can take these statistics before the war or after the war,
and I think it will work out practically the same in any series of
years you take.
" Mr. Fort. I am trying to get the picture, Mr. Bledsoe, and I
ave a serious purpose in this matter.
Mr. BLEDSOE. I appreciate that.
ea The insurance, however, will, if it brings about orderly
po ng, have a tendency to raise the price at harvest time, will