290 AGRICULTURAL RELIEF And then this other provision, in section 10 [reading]: The corporation receiving such advances shall make purchases of such com-~ modity with the proceeds thereof only— Referring to the loan from the revolving fund. (e) If every reasonable effort shall be exerted by the corporation to avoid losseS and to secure profits on resales—— Mr. Former. May I add right there, under the same bill, section [1 [reading]: The corporation shall enter into an agreement with the board to— Subdivision (d) [reading]: Set aside a reasonable per centum of its profits each year for a reserve fund; which reserve fund may be transformed into a fixed capital and certificates repre- senting its ownership issued to cooperative associations. stockholders -in the sorporation. In connection with the commodity concerned. In other words, the amount of cotton handled by the corporation they would set aside and reserve, and every man on the outside who would be able to take advantage of any advanced price would not take any opportunity in liquidating the indebtedness or creating a reserve to handle this surplus cotton. Mr. KiLcore. The thought I want to present as between these two systems of handling the surplus, that is, a straight loan which must be paid back and the same loan the integrity of which is guaran- teed by the equalization fee, the difference is that the straight loan is limited by conservatism by which the Government will not loan if the cooperative can borrow money at as reasonable rates from other sources; and then operations must be such as to make profits and not sustain losses. To show just how conservative some of these Government insti- tutions are, this year the intermediate credit bank has required the remargining of cotton in at least one association when commercial banks did not require such remargining. Mr. Fort. Are you through with that point, now, Doctor? Vir. KiLcore. Yes, sir. Mr. Fort. In either what would you call the “loan bill,” the Crisp jill, as an example, or the Haugen bill, the loan to the corporation ‘hat is buying cotton is controlled by the identical board, is it not? Mr. KiLcore. The boards would be the authority in both cases. Mr. Fort. They are appointed in the identical manner? Mr. KiLGORE. Yes, sir. Lor Fort. The loan is for the same purpose in both cases, is it Mr. KiLGoRE. Yes. Li Lown. Then your idea is that the loan under the equalization Lifforercs in th an e oan under the Crisp bill not because of any Diforencs in the source of the money, since that is in the control of the money shal 8 agency under either bill, or the purpose for which comes out of the 6 e nse , but solely because in one case the money Sg qualization fee and in the other out of the revolving Mr. KiLgore. No. Mr. Fort. What else?