Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1931-09-02
VALLEY MAN
WOULD Store
PART OF CROP


MISSION, Sept. 2.-"Let the cot
tor grower invest in his own com-
modify and at the same time stab
ilize prices and the industry" was
the statemeN OF John II. Shary,
president OF the Texas Citrus Fruit
Growers exchange, a--d a member
OF the agricultural committee OF
the u. S. Chamber OF Commerce to-
day in submitting a plan air ed to
relieve the condition OF the in
dustry.
While Shary Is known IS one OF
the largest citrus growers in Texas,
he has been engaged in growing
cotton for many years and has
rade a study of marketing prob
lens OF the farmer. He called at
tention to a number of plans for
curtailment OF cotton acreage by
legislation and pointed out that
laws restricting the free exercise OF
rights Of the farmer would be sure
10 add further unrest 10 the agri-
cultural situation.
Shary's Plan
Text of the Shary plan:
THAT a loan at 3 per cent annual
interese be made individual cotton
growers for one-third Of their cot
ton raised during 1881, on the basis
OF full market price or middling
cotton at the time or making the
loan, or, a stipulated price that
would be not less than 7 1-2c per
pound.
THE producer TO execute his
notes and pledge his cotton as
collateral security, the cotton TO be
placed in storage designated by the
body making the loan. The terms OF
the note to be that 1t could not
be paid off before shree years. UNI
less the price of cotton reached a
sales value Of IL 1-2c per pound,
then the owner would be privileged
to sell his cotton and repay the
loan. The cost OF rental and insur-
ance TO be carried by the owner,
and an agreement be made that
cotton so pledged could not be as
signed to another.
This plan would take off the
market for three years one-third OF
our present crop and greatly influ-
encc the price OF cotton left Tor
the markets. Leaving the respon-
sibility OF ownership 4 the cotton
I'm the producer would be an m
centive for the grower 10 govern
his acreage, cutting production next
year and thereafter. II necessary
in order 10 protect his obligation
and to gain profit on the cotton
pledged against this loan. Owning
this cotton at less than cost OF
production would tend to restrain
the growing Of more cotton IN
competition TO IL.
Sees safe Loan
In commenting upon the plan,
Sharv stated this would be a safe
loan and cost h tax payers notn-
ing. Banks OF the community would
undoubtedly be glad to render the
service of handling these loans az
n nominal cost. and perhaps with
out any cost, and ct the same time
secure signed pledges from growers
to cut production for the current
year.
Sharv further stated he realizes
the Federal Farm Board Is the
logical agency 10 handle a PROPOSE
ton OF this sort, but al present the
board Is limited in making loans
cooperatives only, but all
the producers cannot be brought
into cooperatives, and after all,
advances made through coopera-
tives would not have the same IN
fIuence upon the producer as direct
loans. The grower receiving an
advance through q cooperative mas
parted with his cotton and the SAFES
control has passed out Of his hands
into the management of the CO.
Operative. This loss OF control re-
moves the principal incentive for
reducing acreage. Furthermore, the
rooperatives have not. and likely
vriIl not. be in a position 10 take
off the market one-third OF our
cotton crop for a definite period.
as this plan would do.
Farm Board Out
This plan cannot be made oper-
atiy. Through the Farm Board. be-
cause of the limitations OF the
Cepre--Vo.Sted act. II Is unlikely
rhlf ler:S.ation can be passed IN
tire 70 relieve the present emer-
E..rcy.
white banking interests through
ont lie acnr..ly are interested III
g.sb.ixins TIE pSscc of cotton IN
orSr- "a .nc-eAe ruying power OF
cotton p-rolAcinr sections, 1t IS MY
belief. IL the bankers Of southern
states win take kindly 20 this plan,
that they are abe 70 provide
through the assistance Of the Fed
era Reserve bank and their CEN
tralized banking connections the
necessary finances, less than $780,
600 900. and take off the market for
a definite period 100000 bales o.
--.4-~ Ct.nwrT concluded