The Bismarck tribune., 1931-11-24
SENATE COMMITTEE
IS GIVEN DETAILS
OF AGENCY'S WORK
Operations in Wheat and Cot.
ton, Loans to Coopera-
tives Described
PRESENT HOLDINGS LISTED
Has 169,656,167 Bushels Of
Wheat and 1,31o,769 Bales
of Cotton on Hand

Washington, Nov. 24.-R-The
farm boards story-a two-year gov
ernmental adventure in assisting the
American farmer - was unfolded
Tuesday in its second annual report
to congress.
Given out through the senate agri-
cultural committee which summoned
Chairman Stone for an accounting,
the report painstakingly described
the spectacular operations In wheat
and cotton markets and liberal loans
to cooperatives-objects OF fire from
sharpshooting critics.
In its wholesale price stabilizatlon
purchases the grain stabiization cor
poration bought 329.64l ,052 bushels of
wheat at a cost Of $270, ,204, SOB. On
November l it still had 189, ,656, ,l87
bushels.
The cotton stabilization corpora
ton took 1918, 300 bales off the mar
ket at a cost of $107 ,533 ,246. 1t now
holds 1,310,789 bales.
Since these purchases were made,
commodity values have declined
sharply, but the board did not esti-
mate it's ultimate loss. This, 1t said,
must be reckoned when final sales
are made. The only determined loss
set forth is $789 1868 incurred by the
Farmers National Grain Corporation,
a central cooperative. in accumulat-
ing grain for drought relief.
Can't Buy without Selling
"Many groups" the board observed,
ewant sterilization corporations al
Ways to buy and never to sell. That
. is asking the impossible. Stabilization
operations cannot maintain prices
continuously. So long as surpluses
continue to pile up, artificial meas
ures can only temporarily offset their
effects"
Against possible losses, however
the board set increased returns to
farmers in higher prices through
sterilization and general benefits to
business and banks by staving OFT
disastrous shocks from widespread
collapse of agriculture.
But the development Of cooperative
marketing, the board said, is its I'M
portant longtime undertaking. This
program, it contended, is sound ano
'the best approach yet offered te
bring about permanent improvement
of American agriculture"
The growth of cooperatives was de-
tailed, disclosing that 10000 farmers
were allied with these cooperativeS t(
which $255, 1866, ,458 in loans have beer
made. They have repaid $146, 1867, ,203
leaving an outstanding balance o7
$1O9 ,499, ,254.
Acknowledging opposition to IT.
policies, the board asserted simply il
was not permitting this to interfere
with "the carrying out of the duties
imposed on it by congress"
No recommendation were made fol
amending the agricultural marketing
act. Neither were requests made tol
additional funds. On July l, TIT
boards financial statement showed
sl59, ,977,603 remained in the treasur!
of the original $500 100000 fund
Since then. however, additional com
mitments have been made to coopera'
tives reducing this balance to an es
timated $75.000,00O.
Complain Against Farmers
Farmers themselves were com
planned against for not adjustinl
production to consumptive levels
The board said it was attempting II
do this through education, but farm
ers have not made sufficient respons'
to these appeals" This failure, tn
board held. served to defeat stabili
zation attempts.
The board has ordered cotton hell
for another year and wheat sold to
the next year at the rate of 100000
bushels monthly.
The stabilization wheat was bough
ct the average price of 8l.97 cents
bushel and cotton at 1853 cents pc
pound. Loans made by the board =
the Grain Sterilization corporation
with which to buy wheat on June 3
totaled $16O, O,148.762. Besides this tn
corporation borrowed from bank
s83OO0,0OO and had other liabilitie
of 1892, ,491, bringing the total in
vestment on that date to $248, 8,076,25
on 257.l36,571 bushels. Since the
47,5OO.OOO have been sold to foreig
governments, and 100000 in do
mestic markets at prices ranging be
tween 40 and 60 cents.
The cotton stabiliZation corpora
ton had received loans of $74,953,8 80
on June 80, borrowing in additio
s35, ,707, ,991, and had liabilities Of So
100000. The amount invested in cot
ton therefore on June 80 was $118
100000.
Cannot Calculate Cost
"The full cost of the cotton opera
tions cannot be calculated at th
present time" the board said. "Shol
crops of cotton in this country an
abroad and a rapid recovery in busi
ness over the next few years al
needed to bring the 1929 and 19a
operations to a close without loss
the revolving fund"
The board pointed out that its fir!
two years of life were marred by
general widespread business unset
tlement when the burden of prie
depression fell on American farmer
with exceptional severity" 1t tn,
answered charges that its activ
Continued on page nlne)