AGRICULTURAL RELIEF 
amount too much. I am inclined to agree with you, and I want to do 
what the farm organizations want. 
Mr. Gray. I think, Mr. Jones, the cooperative associations will 
use these loan features for current marketing operations, and they will 
use them very advantageously. 
Mr. Jones. I understood you to say the latter condition would 
probably prevail, that they would be unwilling to use the loans. 
Mr. Gray. For the purpose of disposing of the surplus. They 
will be unwilling to tackle that proposition, of obligating themselves 
to pay back the loans at interest for the purpose of disposing of the 
surplus when usually there is a loss in such an operation. 
Mr. Jones. That is the impression I got from talking with a num- 
ber of the representatives of farm organizations, that they would not 
use these loan features provided for, and you yourself stated that 
thev would probably be unwilling to use it, and it seems to me your 
additional provision falls to the ground. 
Mr. Gray. These conferees have been working together for months, 
have appeared before this committee time and time again, and have 
said just what I have said, in different or better words, that cooper- 
tives will not use those loans. The loaning provisions of any of the 
bills designated generally as the loaning type of bill, will prove ineffec- 
tive, not helpful to agriculture, the principal reason being that when 
vou have a surplus to dispose of the cooperatives will be afraid to 
involve themselves in disposing of that surplus. 
Mr. Jones. That is the impression I got, just as vou have stated 
it, in talking with them. The extra condition, you say, is put in to 
cure the situation presented by Mr. Williams, and you say the second 
condition is the one which would prevail. 
39 
The provisions of section 5 relating to loans to cooperative associations will 
not be effective to control such surplus because of the inability or unwillingness 
of the cooperative associations handling sneh commodity to control such surplus 
with the assistance of such loans. 
Your explanation shows, and you have stated awhile ago, that the 
second condition would probably be the one that would prevail, that 
they would be unwilling to utilize it. If they are unwilling to control 
it what does your additional provision amount to? I am asking for 
an honest response on that. I am trying to get correct information. 
Mr. Gray. There have been many people of your community, as 
well as elsewhere, and in the Congress, advocating the loan method 
of solving this surplus question and, as we acreed yesterday. surplus 
is the question. 
Mr. Jones. You say they will not use that if it is given to them. 
What does your additional condition amount too, then? 
Mr. Gray. It gives them a run for their money. 
Mr. Fort. There have been other proposals introduced in Congress 
which provided for loans to corporations set up by cooperatives, 
where no liability for the repayment of the loan itself could thercafter 
rest upon the cooperative or its individual members. Your language 
there, as you have it in section 5, and as you now have it in this 
second provision in section 7, limits the loans to the cooperative 
associations themselves and imposes on them a direct obligation for 
the repayment. It is quite conceivable that the cooperative assocla- 
tions might be unwilling to operate under loans under a provision 
that constituted a legal liability on that cooperative to repay that