Agricultural marketing revolving fund

Bibliographic data

Monograph

Identifikator:: 1830514946

URN:: urn:nbn:de:zbw-retromon-221271

Document type:: Monograph

Title:: Agricultural marketing revolving fund

Place of publication:: Washington

Publisher:: Gov. Pr. Off.

Year of publication:: 1930

Scope:: II, 39 Seiten

Digitisation:: 2022

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Tuesday, december 16, 1930. Cotten marketing conditions. Statements of Walter Parker, new orleans, la.; Thomas Hogan, norfolk, va.; and D. H. Williams, gastonia, n. c.; representing the american cotton shippers' association, of memphis, tenn

Collection:: Economics Books

AGRICULTURAL MARKETING REVOLVING FUND 33 d o 2 2 O- {- ze 0 we f | al ch l= Mr. Byrys. Have you any idea? Mr. Parxer. We have never been told about that. We have never heen told about the inside operations of the Federal marketing machinery. We do not know how much cotton they have; we do not know how many futures they have bought ; and we do not know how much they have sold. All of that is matter that has not come out in their reports. Mr. Byrys. I do not suppose it amounts to 50 per cent of the cotton, or anything like that. Mr. Pager. No, sir. Mr. Byrys. Is it about 18 per cent! Mr. Parker. Normally, I should say, about 10 or 15 per cent. Mr. Byrxs. Do I understand that it is your contention that the storage or holding of this 10 or 15 per cent of the cotton crop is hav- ing this effect upon those who handle the other portion of the pro- duction, or who would normally handle the other portion, by reason of the fear that they may have, or from the fact that they do not know what might be done with this 10 or 15 per cent of the crop. or when it might be released? Mr. Parker. As much cotton as that, distributed in warehouses, ander the financial responsibility of 1,000 merchants, would not be «uch an influence on the market as it is when it is concentrated under the power of one group of men, or one man, or one single agency. Whether they will dispose of it, or not, we do not know. Nobody knows what will happen, and, consequently, the merchant is inclined to stand aside. Mr. Dickinson. It has been my impression that an effort has been made to hold this up as a “ bugaboo »” rather than as an actuality, and that a lot of people were putting this up rather as an excuse, because of the fact that people are not taking any risks, and they are not buying things. T do not care what line of activity you go into, buy- ing is being curtailed everywhere. Mr. Parker. Yes; I grant that. Mr. Ayres. I am very much interested in your statement that this machinery is available: May T ask vou what constitutes that machinery ¢. Mr. Parxer. It 1s the machinery of the American Cotton Shippers Association, comprising something like 1,000 trained merchants, who are well capitalized, and who have banking facilities for handling cotton. They buy cotton from the farmer, as it is offered, paying cash therefor, and immediately selling futures to hedge it. That, of course, is a bona fide contract for the delivery of cotton. Then, they are able to borrow from the banks practically 100 per cent .of the value of the cotton, because they have the sale already made. Now, they do not necessarily deliver that cotton on the futures contract. It ;5 better to sell it as spot cotton to the consumer, in which case he buys in that contract, so that whatever he loses on one he makes on the other. But if they ean not find a spot buyer, or a spinner buyer, (hen they go through with that cotton on the futures contract. They have their money back, and can pay the bank. That is the primary nachinery. The secondary machinery is for the export of cotton by :ipply merchants, who handle it in Europe, where there is a demand. Now. this new agency has adversely affected the market.

Access restriction

Copyright

fullscreen: Agricultural marketing revolving fund

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation