AGRICULTURAL MARKETING REVOLVING FUND 15 
consumption, not only this year but last year, is the cause of the 
low price of cotton and the depression that is world-wide. 
Mr. BucHaxan. I am not informed upon the actual status of 
the wheat men, but I have every reason to believe that there will 
be a real, substantial reduction in cotton acreage. 
There are about ten to fourteen million acres of marginal cotton 
tand on which people plant cotton on which, with normal prices, 
they make a loss. 
Mr. Leger. That should not be planted. 
Mr. BucraNaN. Then with the abnormally low price such as we 
now have, it is going to prevent that land being planted in cotton 
right now, and the price of cotton will advance materially in the 
next 10 months. 
Mr. Leger. I think that is a fair analysis of the situation. 
Mr. Bucranan. With the $250,000,000 you are now asking for, 
do you think you can put this thing across? 
Mr. Lecee. What do you mean by “ put it across ”? 
Mr. Bucranan. Make a success out of it; that is what I want. 
Mr. Leer. If you mean whether under present world conditions 
we can bring back the price of wheat again to what we think is a 
fair price, I will say no, it can-not be done. But we can prevent 
it going lower and make some substantial improvement. 
Mr. Bucuaxan. Perhaps my question was not exactly plain. 
Suppose we make this $250,000,000 appropriation and world con- 
ditions improve. You will succeed because the products will be 
sold and you will collect the money for your revolving fund. 
Mr. Lreee. Yes; and if you are correct about the taking out of 
the acreage of cotton, we will succeed on cotton. and that is what 
we hope for. 
Mr. Brenanan. If the financial condition of the world should 
improve and the depression passes off, your commodities will be 
sold and you will collect on your loans, your revolving fund will 
be increased and you will still have money to operate on? 
Mr. Lreer. Absolutely. 
Mr. Bucuanan. But suppose conditions do not improve, we will 
say, for 10 months; you can not succeed unless vou have more 
money, can you? 
Mr. Lecce. I do not know; that is a question as to what the pro- 
duction proves to be. We would be in a condition where some of 
these country banks would have badly frozen assets. and the money 
would not be revolving. | 
Mr. Brcuaxan. This is leading up to the question as to whether or 
not it would be advisable for Congress to pass another authorization, 
whether you did use 1t or not, in order that you might have a certain 
amount of leeway or leverage, so that it might not be said by any 
financial interest antagonistic to the Farm Board, well, when the 
$250,000,000 is gone forever, we have got them. If you have another 
authorization of $250,000,000, they can not say that. 
Mr. Lecce. There is. no question but that the psychological effect 
of that might be helpful. } 
Mr. Bucuanan. But if you should be mistaken—-— 
Mr. Lecer (interposing). There is one thing we can always do. 
The Government still has fairly good credit. We can carry these 
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