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.