Report of the Royal Commission on National Health Insurance

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Monograph

Identifikator:: 1740277147

URN:: urn:nbn:de:zbw-retromon-132094

Document type:: Monograph

Title:: Report of the Royal Commission on National Health Insurance

Place of publication:: London

Publisher:: Stationery Office

Year of publication:: 1926

Scope:: XII, 394 S.

Digitisation:: 2020

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XIII. Miscellaneous questions

Collection:: Economics Books

294 AGRICULTURAL RELIEF Mr. KiLgore. And the cost of production was 18 cents, we will say. Suppose you had to carry that cotton for 12 months, and it cost 114 or 2 cents a pound to carry the cotton. You might not be able to sell that cotton for 1815 or 19 cents a pound; and then if you carry it two years you have got from 3 to 4 cents. Mr. Fort. Have you ever known a year, Doctor, when it sold below cost of production, when it was not a purchase, if you had the strength to carry it? Mr. KingorE. Right then you hit the nail on the head. The position I take is that the confidence that traders in cotton have in any movement, depends upon the ability to carry, and that depends upon the assurance that the loans are going to be taken care of and any losses reimbursed. Mr. Fort. I appreciate all that, Doctor. But under your bill that you are urging, the board can terminate the operation at any time it pleases, and withdraw the loans, can it not, and discontinue the equalization fee. It can do all those things overnight, if it wants to? Mr. KiLgorE. Oh, they would not do it in mid-season. Mr. Fort. You think this same board—you have got the same board under both bills? Mr. KiLcore. That is right. Mr. Fort. And will they not do it in one case if they do in the other? Mr. KiLcore. That does not enter into the financial soundness or differences of these two propositions: One is financially sound in that any losses would be replaced. Without the equalization fee there is no way to keep intact and to insure the integrity of the loan under a loan bill. Mr. Fort. Unless you concede—you shifted away from it a mo- ment ago; I do not think intentionally—I would say you are right, unless you concede that commodities bought at production costs— commodities of human necessity will turn a profit. Every investiga- tion I have ever made—and I have made a good many on that sub- Ject—has indicated that with sufficient financial strength—— Mr. KiLcors. In that there is a big difference between the two measures. Mr. Fort. Of sufficient financial strength to hold commodities purchased at or around production costs and held will show a profit some time. Mr. KivLeore. I would not want to say that is so, for the reasons that I have just given, that a commodity that is purchased at or right near the cost of production, has got to have added to it the carrying charges through the period it 1s carried, before it is sold. If that is a year, two years, or three years you are piling up in the case of cotton 114 or 2 cents a pound a year. If you put up 4 or 5 ents, at 1s $25 a bale, that goes into money mighty fast. 1926. (ORT. I know it does. But last year if you bought cotton in ha a agen i you have had, at 17 cents, which you say is ors hog . Pp ocuction hgure, and had to carry it, you would not carry 1t two years to get out at 23 cents. Mr KirLecore. That is hind sight. pal or wien you ton Tome any time in the economic history of seen carried and sold at a Dough at production cost could not have

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