AGRICULTURAL MARKETING REVOLVING FUND 29
the same organizations—were both selected because of their recog-
nized experience and ability as cotton merchants.
Mr. Stone. Mr. Safford was recommended to us by the best
cotton merchants in the country. LL i
Mr. Tavror. What do those gentlemen say about this situation ?
Mr. Leeer. They rather ridicule the provosition that there is
anybody being hurt. ] }
The absurdity of all this is shown in the fact that those commodi-
ties in which there are ne exchange grades, agricultural commodities,
are relatively better off than those where there are.
Mr. Tayror. I think there is too much machinery about it.
Turspay, Drecemzer 16, 1930.
COTTON MARKETING CONDITIONS
STATEMENTS OF WALTER PARKER, NEW ORLEANS, LA.; THOMAS
HOGAN, NORFOLK, VA.; AND D. H. WILLIAMS, GASTONIA N. ¢
REPRESENTING THE AMERICAN COTTON SHIPPERS ASSOCIA.
TION OF MEMPHIS. TENN.
The Cuamrman. I understand that you gentlemen wish to say
something to us with reference to the operations of the Federal
Farm Board. How much time do you wish?
Mr. Parker. Just a few minutes.
Mr. WiLriams. Mr. Parker is our spokesman and he wishes only a
few minutes’ time,
Mr. Parker. Mr. Chairman, we appear here representing the
American Cotton Shippers’ Association.
_ In all the years past, the trade has absorbed our cotton, has financed
It, carried it, and has ultimately sold it to the consumers. We have
done that in good times as well as in bad times.
At the present time business conditions are not good, but, never-
theless, there is quite a large potential buying power for cotton
which 1s not now functioning normally. The reason for that is that
the Government experiment in the cotton market, for stabilizing
the market, has brought into the market a new element that the
trade does not fully understand and is not capable of discounting.
Therefore there is a fear on their part as to what may happen.
The presence of a large concentrated stock of cotton is looked upon
by the trade as a menace to the normal market for cotton. The spin-
hers say, “ There is plenty of cotton and we need not worry; we
to not have to buy until we are ready to buy.” The effect on hedging
is sometimes disastrons—that is. the effect on the ordinary hedging
operations of the cotton trade. Consequently, the purchasing power,
which has the facilities for handling the cotton crop, and which
has handled the cotton crop heretofore in the United States, is not
functioning properly. In 1926 and 1927, when we raised about
18,000.000 bales of cotton, these marketing facilities had the machin-
ery with which to handle it; but, as I have said. that machinery
is not now functioning properly. v
