272 AGRICULTURAL RELIEF : main staple crops in certain years is the main cause of the present farm situation n that the surplus production has made the price on the entire crops. The facts stated above as to cotton substantiate this, and the same is true with reference to other crops. Because of weather conditions and insect and other enemies, the farmer is not able to control his production and adjust it to the reasonable needs of consumption. In years of good weather and low insect injury large crops are produced and low prices are obtained. In other years of unfavorable weather conditions and high insect injuries low production results and better prices are obtained. The farmer is not able, because of these uncontrollable Factors, to adjust production to the needs of the world for varioug staple crops. Manufacturers are able to do this reasonably, and because of this ability they have had reasonably stable prices for their products. The proposals for farm surplus control legislation, or farm relief, are directed toward handling the surplus in years of overproduction and distributing it into years of underproduction so as to prevent surplus in years of overproduction from having the disastrous effects they have had in the past. In the McNary- Haugen bill the surplus of cotton in years of overproduction would be bought, stored, and held until there is a reasonable demand for it. A Government revolving fund to be used as a loan fund is proposed for financing such purchase, withholding and sale. In case of loss incurred in handling the cotton in this way, the equalization fee assessed against each bale of cotton would be used to take care of such loss. The equalization fee used in this way is equivalent to the producer buying back and holding his own surplus production until there is a need for it in world consumption. National devices of this kind have been furnished manufacturers, labor, railroads, and banks for either preventing or handling surplus in their several lines. The farmer is the one big group of citi- zens which has not had such help in preventing surpluses or handling them when they occur. It is believed by those who have given careful study to the McNary- Haugen bill that it will work as experience is obtained in operating it in the handling of farm surpluses so as to prevent them from having the disastrous effect on the growers that they have in the past. It would prevent the wide swings in prices that have occurred in the past, and which the cotton growers have experienced with the last three crops, and periodically heretofore with cotton. This would bring about stability in prices such as has been done already reasonably in manufacturing, with organized labor, with transportation, bank- ing, and with other business groups. This is the principle involved in the McNary-Haugen bill for farm surplus control. Farming can not be put on a reasonably safe basis until stability can be brought to the farming industry by some measure or device which will make this effective. I say this went out in practically all of the State organs of the cotton cooperatives. Mr. KiNCHELOE. Doctor, in view of our varoius and divergent views on this bill, that is a good statement. Mr. KercuaM. 1 can only see one improvement that can possibly be made. Of course, modesty prevents my suggesting what that improvement would have been. Mr. AsweLL. I could give him a suggestion that would help him a good deal. [Laughter] . Mr. KiLgore. Mr. Chairman, my only reason for reading that : Wy 1s to show that this matter has been presented to our people in he press, at meetings, reasonably, soundly, based on economic prin- Tiples. We have not appealed to the prejudice of the farmer; we ave not fried to excite him, because I have known—and that is the oe on N at the group I work with takes—that if it is to be effective and th De practical, it must be sound, it must be economically good; and itl 1S my purpose In presenting that to you gentlemen here, and par y as a result of the suggestion of Doctor Aswell that I do hich sen very many farmers—that they do not know about it. Bi ASWELL. did not say that they do not know about it. I say 4 oF hoe roptesent a large proportion of the growers, and they have anything much except about the Haugen bill.