Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-07
Goes Into Session Presuma-
bly, to Consider Proposal
Received From Berlin.
STATE DEPARTMENT ALSO
REFUSES INFORMATION
Protests Against Sale From Europe
Are Augmented by Those
of Southern Senators.

Under strictly applied policy Of ST.
from the American cotton trade reflect
ed in some competing European centers.
the Federal Farm Board was called into
session today. presumably TO consider
the formal proposal received yesterday
from Berlin for the sale to the German
government Of heavy consignment Of
sterilization cotton OH q three-tear
credit basis.
The administrations sponsored propo-
sition to permit the Farm Board to un-
load a great proportion of its 100000
cotton bales to stimulate that industry
and at the same time aid Germany
meet opposition even before the offer of
the Reich was transmitted to the Farm
Board yesterday afternoon through the
State Department. At the Offices of the
Farm Board prior to this mornings ses-
sion 1t was said that under no cifctlrn-
stances could the board give any pub
Lefty to the proposal before 1t had been
fully under Consideration Equally
tight-lipped were officials at the State
Department, where the results OF the
negotiations initiated by Ambassador
Sackett at Berlin were simply placed in
an envelope and sent to the Farm Board
Offices.
Senators Augment Protests.
Since the overtures we're initiated in
the German capital with the approval
Of President Hoover, the protests against
the plan have been AUGMENTED BY de-
nands from leading Southern Senators,
cotton traders and growers that the
sterilization cotton be held to permit
the current crop to be sold The con-
tertion was advanced that disposal of
a part Of the sterilization surplus In
Germany would deprive the American
cotton farmer of sn important market.
This part Of the sterilization sur
plus" which Germany Is seeking on
long-term credits. according to dis
patches from Berlin, involves 600, 900
bales. The offer also was said to in
cltlde an option on zoe, 900 additional
bales, or 100000 bales in all It had
been the hope in administration circles
here that disposal of this much, or
even less, OF the stahfligatiofa cotton to.
Germany would 90 far toward reYiving
the industry and thereby bring a more
healthy condition to other depressed
commodities dependent upon Il.
A reason that aug1lFs for sl0wnsgs in
the boards deliberations IS the TACT
that the German offer, II accepted.
would involve the loss Of many millions
of dollars. The boards cotton was pur-
chased at $o5 a bale, At that price the
500 900 bales represent a cost OF SSH
O0O, 600 The German offer, on the
basis of present market prices, is said
to include q price range between $780,
100000 and $4c,000,000.
Opposition TO Be Considered.
The Farm Board is fully cognizant
of the views of the Southern cotton
trade. and it was said today that the
protests would be given full considers
ton during the boards elaboration over
the German proposal.
James c. Stone, chairman. announced
at the time the proposal was received
that its contents would not be divulged
until after 1t had been fully studied
So far as could be ascertained, the adj
ministration is leaving the Farm Board
a free hand in the matter. the White
House referring to it all suggestions re-
ceived.
The German offer. az described in
Berlin dispatches which are the only
source of information here. was re-
ported as contemplating the purchase OF
the cotton at price fixed en- the basis
of the monthly average price on the
New York Cotton Exchange or the
monthly average of the New York,
Bremen and Liverpool exchanges, with
credit extended for three years ana
Germany paying / Y per cent interest.
Offer Might Be Acceptable.
While officials here refused to dis
cuss such terms. there were indications
that such an offer, il actually made,
might be acceptable in view of state
nner1t made by Chairman Stone only
few hours before the receipt CT the
proposal At a press conference, Mr..
Stone had said he thought that any
sale to Germany should be made on the
basis of credit "for TWO or three
years" to accomplish the most good. He
let it be known definitely that he would
be agreeable to sales to Germany pro-
vided sit would increase consumption
of American agricultural products"
conditional, however, on the terms OF
credit.
The 800 900 bales Of American cot
ton were purchased by the board in an
effort to stabilize prices. but If the sale
TO Germany is negotiated, Mr.. Stone
reiterated that bales sold probably
would not be replaced. This was his
personal view, he reiterated. adding that
conditions might arise later which
would necessitate replacement to GER
tain extent.
It is this policy which has done
much 20 cause resentment among the
Dixie cotton growers. Mr.. Stones ex-
preston was interpreted here as an in
dication the board Is anxious to relieve
itself of sterilization stocks
Senator Harris Of Georgia, the most
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