634 AGRICULTURAL RELIEF Mr. Lankrorp. No; I would go further the bill provides for the full market average value for which the commodity sold for the preceding 10 years, which might be higher than the value at time of the loan. I realize this, Mr. Purnell, that if you loan the farmer the average price at which cotton has sold for the last 10 years or the average price at which wheat has sold for the last 10 years; and cotton is selling at 4 or 5 cents below that, or wheat is selling at several cents below that price, it would be a foolish thing for the Government’s agency to make that kind of a loan without additional safeguards. Mr. PurneLL. Suppose the market price is below that average and a loss is sustained.” Who is to pay that? Mr. Lankrorp. That is a proper question and I am glad to answer it. If 75 per cent of the producers of a commodity sign contracts that they will control their production, and, furthermore, that not only will they control their production, but that they will not offer for sale a single bushel of wheat of a single pound of cotton when the operation begins, but that they will hold it; if they need money they will borrow 1t from the bank and only sell for a fair price there will be no loss. The price can not drop below that average price at which they can borrow money. Why? Because the farmer will not sell below a price at which he can borrow money under the provisions of this bill. I provide in the bill that the commodity itself shall be the sole and only collateral for the debt, and that no judgment can be taken against the individual farmer for any loss. Mr. Apkins. Will you yield for a question? - Mr. Lankrorp. Yes; I will be glad to, Mr. Adkins. Mr. Apkins. In my own country where they have only 5 per cent of the storage facilities for wheat and oats, do you think you can get them to go into a contract of that kind? Mr. LankrForp. I am not so sure about that in the wheat section Of course, if they could get them to go into it I believe it would work. You know more about the wheat proposition than I do. I provide in the bill that there shall be such storage as shall be necessary, and I provide further in the bill that if possible and practical and feasible that the farmer be allowed to keep his com- modity and store it himself, by properly insuring it, and making him responsible for it. Mr. Apkins. The point I had in mind is that practically all of them have practically no storage facilities for that, whether they would go into a contract of that kind or not and then have to build storage bins. Mr. Lankrorp. I believe it can be worked out. It can be worked out for them to hold it separately or that wheat to be stored in bins and shipped to places where it could be held, but for the farmer still to retain his title in so many bushels of wheat of a certain grade, stored for his use. He could hold the receipt instead of holding the actual wheat. Mr. Swank. Do you make any provision for the acquisition of warehouses? Mr. Lankrorp. I left that as a matter of detail to be worked out later. If the committee should decide that my bill embodies a oood idea, that is properly a matter than can be worked out later.