AGRICULTURAL RELIEF 
633 
Mr. LANKFORD. Section 8 provides— 
that the corporation shall be empowered and authorized to make advances on 
farm products as collateral security to any bank, banker, trust company or farm 
organization in the United States which has rendered financial assistance to any 
farmer, group of farmers or farm organizations. 
And this plan is a little different from the plan of ordinary bills, 
and I want to get it thoroughly before this committee. 
Let me go over that again. The bill provides for the advance of 
money to certain banks, provided those banks have made advances 
to individual farmers of money. 
Provided— 
now, here is the milk of the coconut and the gist and heart of the bill, 
if it has anv- 
these advances are made through the banks only to the individual farmer: And 
provided, The farmers receiving such financial assistance shall have entered into 
contract with the corporation, as set out in section 11 of this act, and shall have 
kept and abided bv all contracts so made. 
Now, this contract, which is set out in the bill is a rough, crude 
contract drawn by me—which could be amended by the committee— 
provides that these farmers shall control their production as dictated 
and as determined by the cotton advisory council or the wheat 
advisory council, or other commodity advisory council. 
It provides further that not only shall these farmers control the 
acreage which they plant each year, but they agree and obligate 
themselves not to sell any cotton whatever after they begin obtaining 
these loans, unless the cotton advisory council determines that a sale 
shall be made. 
Mr. PurNELL. In other words, they borrow money on their crop 
and hold it on their own farms? 
Mr. Lankrorp. On their own farms, or in warehouses, or in what- 
ever way is necessary, so as to make the cotton to be produced actually 
for the debt. The plan is simply this, stated in other words, that we 
will create the farmers finance corporation, which will loan money 
through the banks, to the individual farmers, to enable them to hold 
their cotton, provided the planters of 75 per cent of the acreage of 
cotton in the United States shall have signed the contracts agreeing 
to the control of their acreage planting, and agreeing to a control of 
the marketing. 
Mr. PurneLL. What percentage of the value of the crop held by 
each individual farmer would you permit him to draw a loan upon? 
Mr. Lankrorp. The bill provides for loans to the full value of 
the commodities. I say in the bill that he shall be authorized to 
borrow the average price at which that cotton has sold, for the last 
10 years. 
Mr. AsweLL. Do you think you could get 75 per cent of the plant- 
ers to sign that? } } 
Mr. Lankrorp. I do not know; I believe we could. I believe you 
would be offering the farmers so much under this bill that they would 
sign up. I have great faith in the American farmer signing up con- 
tracts if you once offer him something to sign for. 
Mr. PurNeLL. In other words, you give him a loan on the basis 
+f the full market value at the time the loan is made?