AGRICULTURAL RELIEF 
615 
organization and the producers. My idea is to eliminate a dozen or 
more managing heads, have only one with subsidiary organizations 
if necessary and eliminate much of the overhead expense and have 
unity of action and effort. 
Mr. FuLmer. Under the present system they may work in com- 
petition to each other instead of working along the same line? 
Mr. Hark. Absolutely; for instance, the South Carolina associa- 
tion may sell its cotton in competition with the Oklahoma coopera- 
tive organization under existing arrangements. 
. Mr. ApxinNs. Your idea is to coordinate them? 
Mr. Hare. Exactly. 
Mr. CLArRkE. And confederate them? 
~ Mr. Hare. That is right. I say that this idea is politically sound, 
for the reason that it is absolutely in harmony and absolutely in 
keeping with the legislative enactments already provided for. 
I say that it 1s economically sound because it is the embodiment 
of cooperation. It is cooperation between and among the govern- 
mental agencies themselves, coupled with the cooperative and united 
effort of the producers themselves, and therefore the embodiment of 
cooperation throughout; and to my mind the production problem, 
the surplus control problem, will be controlled in no other wav than 
by cooperation. 
Mr. Fort. Mr. Hare, I notice at the top of page 6 vou provide 
that the advances to be made would be on the basis of the market 
value of such crop. Do vou mean thev are to make a 100 per 
cent loan? 
~ Mr. Hare. That is right. If you are going to begin to loperate 
when your commodity is down at the cost of production or below 
cost of production, to insure the cooperation of the producers them- 
selves provision must be made for them to obtain the market value 
of the crop at that time. } 
Mr. Fort. Mr. Hare, that is just what I was coming to. You 
have no limitation, that I have found in looking through this bill, on 
the point of marketing value at which the loans could be made. 
Mr. Hare. That is true, but I take this position, that if you 
would give a man an umbrella, a sensible and intelligent man, he 
will know when to put it up and when to take it down. I think if 
vou put the operation of this bill in the hands of intelligent men 
they will not use the Government as an instrumentality to work an 
injury to the people they are supposed to represent, nor will they 
attempt to work an injury to the Government they are representing. 
Mr. Fort. No; but it would be possible under your bill to make 
loans at the market value, for instance, we will say last year, of 23 or 
24 cents on cotton? } 
Mr. Hare. That is true, and it is possible for the Federal reserve 
bank to-day to go broke in 6 months; it 1s also possible for the inter- 
mediate credit banks to lose millions of dollars in the next 12 months; 
and some of them have lost money; but in every public undertaking 
some one must be trusted to do the right thing. 
Mr. Fort. But they are now limited by law to a percentage o 
oN Hage. Yes; they have limitations 
r. HARE. Yes; they have limi . } 
Mr. Fort. And you are proposing that they should be allow ed 3 
loan 100 per cent. I am now speaking of the interme late credi 
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