616 AGRICULTURAL RELIEF 
banks—you are proposing they should be allowed to loan 100 per 
cent’ 
Mr. Hare. No; not the intermediate credit bank. I do not pro- 
pose to change any regulations of the intermediate credit banks 
whatever. 
Mr. Fort. Where does the loan of 100 per cent come from? 
Mr. Hare. I am coming to that in just a minute. If any organiza- 
tion of producers wants to sell its crops through this commodity 
organization, the board will arrange with the intermediate credit 
bank for the financing of that operation. If under the rules of the 
intermediate credit bank they are unable to secure more than 75 per 
cent of the market value of the commodity at that time, then the 
board will have the right—it is not compulsory, and it would only be 
in the case of emergency—through the revolving fund provided for 
in this bill to take care of the difference of the 25 per cent. 
Mr. Fort. The chief difference between your bill and the Crisp 
bill in that respect is that the Crisp bill puts some limitations in the 
law itself on the points at which the board may make loans, and you 
leave it entirely to the board to make its own rules. 
Mr. Hare. I leave that out, for the reason that under the Crisp 
bill where you would begin to fix the price of the crop or the point 
where you would peg the price, as it was referred to, there was the 
criticism that it is the purpose of Congress or the purpose of the 
Government to fix the price of a commodity; whereas I am leaving it 
with the producers of a particular commodity to fix the price and to 
say when they will ask for this advance or for this loan. After they 
ask for it, then it will be referred to the board to say whether or not 
the circumstances and the conditions under which they are operating 
justify it. The producers themselves, therefore, under that condi- 
tion will determine when the price is below the cost of production or 
when it approaches the cost of production, plus a reasonable profit, 
and whether they want to store the surplus of their commodity and 
take it off of the market and remove it from the channels of trade. 
Mr. Fort. They have no individual liability on the loan? 
Mr. Hare. No. 
Mr. Fort. Therefore, there is no restraint on the point at which 
they would use their judgment. 
Mr. Hare. Except by the action of the board. In other words, 
if the board would say, “Now, gentlemen, understand, this price-is 
far above the cost of production as shown by the existing agencies of 
our Government, and we think it unwise to begin operations at this 
period.” The board would have this right, and operations would not 
egin. 
Mr. Former. In other words, Mr. Hare, your 100 per cent loan 
would only operate when this board would find that we had a surplus 
of any commodity that was so depressed, the price that it was at or 
below the cost of production, and therefore it would want a hundred 
per cent loan, because if they would take care of the surplus naturally 
there would be a profit. Otherwise, it would not be of any interest? 
Mr. Hare. Exactly. 
Mr. Fort. If that is clear, I see that is your purpose and I see Mr. 
Fulmer agrees that is what it should be, why should not we in some 
way in the legislation indicate that that is what Congress thinks is