74

AGRICULTURAL RELIEF

members approximately the full spot market price for their cotton at
the time of delivery less carrying charges.
Statistics which I have compiled show that such a guarantee could
safely be made by a Government agency to the cooperative associations
 in consideration of the payment of a premium of approximatel
one-fifth of a cent a pound. Under the plan the member ray
receive, as indicated, approximately the spot market price for his
cotton on the day of delivery, and if the average annual price of
cotton should be higher, he would receive the benefit of this higher
price. The premiums paid by Bot, WEtisiln would be used to
imburse the association for losses that m i
rove for any future losses. 5 Tal oie sek Sx pIOTISS
The statistics to which I have referred are th
price of middling cotton on the New Orleans GO Ly 4
September 1, 1905, to August 31, 1925, a period of 20 years During
15 of these 20 years the seasonal trend of prices was upward 1 ©
the average of the prices during the selling season was higher than
the average of the prices during the farmers’ marketing se -
The years 1907-08, during which we had a money panic S013.14
beginning of the World War, 1918-19, signing of the armistice,
1920-21, the period of deflation, and 1923-24, an underestim to of
supply and an overestimate of demand showed a do trond
bply & ir ; downward trend.
e season 1907-8 there was a loss of 34 points, or $1.70
bale. For the season 1913-14 there was a loss of 6 points, of P50
bale. For tt - gr BO das
1e season 1918-19 there was a loss of 87 points, or $4.35
per bale. For the season 1923-24 there was a loss of 88 | v ts,
$4.40 per bale. The loss for the season 1920-21 is excluded for ‘the
a8 1at a contingent liability from deflation does not exis
present. There is no inflati i i
cotton being under the one avaraae TO proses by fue vate of
n as much as it is pr 1
entered Into annually pad ens Ih apart ots be
during such abnormal conditions as existed 5 1920 “1 To ! ade
need i be given special consideration. 20-21 would not
uxcluding the season 1920-21, t Tag
years included in the ealoulation it 56.6 core rie WRN am
o'31 per bale, or one-fifth of 1 cent per pound, would provide for the
sual loss allow a I
plied m 2 reserve to take Er ong tone should be
1€ unaerwriters i 1 i
the aati xweiters a this contract will be taking the position that
a eo me 1s right to the extent that they will at
hate re aney bald Jor the cotton. without carrying
Lhe benefits to be derived from this lan :
sa ely advance to the cooperative association the o 1) Boks ico
or cotton on the day of dele 1: ns the spot market price
cooperative associations will be able to Daye “harges, (2) Cotton
market price for their cotton on the ds Pot a imnombors the spob
charges. (3) Cotton cooperative a yong avery, less carrying
will be insured against le or ssoclations and their members
ing of members’ cotton. (4) Mombers of the. ly mag
ions, in the event of eain [ s of the cooperative associataining
 higher peices 8 s accruing through their associations obes
 for their cotton th i > the
day of delivery, will raecis n than were paid to them on the
e such gains. (5) Due to the fact that