Agricultural relief: Agricultural relief

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Multivolume work

Identifikator:: 1831932415

Document type:: Multivolume work

Title:: Agricultural relief

Place of publication:: Washington

Publisher:: Gov. Pr. Off.

Year of publication:: 1928

Collection:: Economics Books

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Volume

Identifikator:: 1831934515

URN:: urn:nbn:de:zbw-retromon-232102

Document type:: Volume

Title:: Agricultural relief

Volume count:: Pt. 4

Place of publication:: Washington

Publisher:: Gov. Pr. Off.

Year of publication:: 1928

Scope:: III S., S. 255 - 297

Digitisation:: 2022

Collection:: Economics Books

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AGRICULTURAL RELIEF 280 Mr. FuLmer. And would only be used when we would find out we had a surplus which was depressing the price of cotton? Mr. KiLGore. Yes. Mr. FuLmer. And only to the extent of buying cotton in a suffi- cient number of bales to bring about a fair price, and then withdraw from the market. Then, for instance, as the gentleman stated awhile ago, the speculator would want to take advantage of that to boost the market. You could then feed back the surplus you had on hand and put him out of business and hold a stable market. Mr. KiLGORE. A stable market; yes. Mr. Harr. Doctor, you would go in or out of the market to the extent of stabilizing the market when you had a surplus; when you did not have a surplus the market would take care of itself? Mr. KiLGorE. Yes. Mr. Apkins. And out of that fund you could repay the money bor- rowed from the Government? Mr. KiLGorEe. It is a guaranty that the money borrowed from the Government will be returned to the Government and kept intact. Let me follow just the thought there expressed as to the ineffective- ness of a loan fund in the loan bills, by this statement, prepared with some care: The effect which any “holding movement” would have on the cotton market would depend to a large extent upon the trade's judgment as to both the intent and the ability of the holding agency to keep the cotton off the market as long as necessary I want you to get my thought there, gentlemen—that the effective- ness of any holding of the surplus off of the market will depend to a large extent upon the trade’s judgment as to both the intent and the ability of the holding agency to keep the cotton off the market as long as necessary. Any proposal to merely loan money to finance withholding cotton from the market would not carry conviction to the trade’s mind and would, therefore, have the minimum effect on the market. If with- holding were financed by every grower contributing his pro rata share to the cost of withholding a surplus, and a payment of such con- tribution were assured beyond question, then such a move would Carry conviction to the traders in cotton as to both the intent and the ability to withhold. That would be true with an equalization fee as a guaranty of the integrity of the loan through the revolving fund. It would not be so with mere loans from thé revolving fund of the loan bills. I believe this is fundamental, and it is a serious obstacle to the effective operation of any of the loan bills. In this connection I want to call your attention to two provisions in the latest loan bill. The Crisp bill, introduced December 5, 1927, contains this provision [reading]: (f) Whenever, in the judgment of the board, sufficient loans can be secured by the corporation at reasonable rates from other lenders, it shall suspend the further making of advances. That shows conservatism. Our cooperative this year borrowed some money at 4 per cent—less than it could get it from the inter- mediate credit banks. Under those conditions this bill would not likely operate to handle the surplus, because we have already reached the point where we can get money at as reasonable a rate as the intermediate credit banks or the Government source would furnish it.

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