Evening star., 1933-02-19
SENATE APPROVES
COTTON AID PLAN
Smith Bill Designed to Raise
Prices Sent to House.
for Action.
BY the Associated Press.

A momentous new venture in helping
the cotton industry by legislation yes
terday received the approval of the
Senate.
Amid expressions Of hope that it
would start the whole South toward
better times, the Smith bill designed to
raise the price of cotton by striking
millions of bales from the paralyzing
surplus was approved in little more
than two hours and dispatched to the
House.
There, prompt preparations were
made for considering this emergency
measure without delay in order that it
planting season Is under way through
out the South. Chairman Jones called
the Agriculture Committee to meet to-
morrow on the bill. The brief debate
In the Senate showed the Democratic
leadership firmly behind the bill and
little or no opposition from the Re-
publican side.
From Southern Senators sponsoring
the bill were heard last night express
sions Of optimism that the Democratic
House will approve it speedily and that
President Hoover's signature will make
it law before the present session ends.
Surplus to Be Used.
In a word, the ingenious plan would
use the Governments huge holdings of
cotton-estimated at 3,500,000 bales
to obtain a reduction of that amount
in the 1888 crop.
This would be done by Offering the
producer who agrees to cut his produc-
ton from 80 to SO per cent below last
year an option on an amount OF the
Government cotton equal to the quantity
by which he reduces his output.
The option would enable him to profit
on the pooled cotton to the extent of
the difference between the present price
and the August Is figure. Assuming the
decreased production drove the price up
the farmer would take no risk as he
would not have to exercise his option
in case the price went down.
A short time after the bill passed
Senator Cotton Ed" Smith of South
Carolina, its energetic sponsor, made
public a telegram from ]. SkottoWe
Cotton Association, saying reduction
Of cotton acreage totaling 100000
bales, 1900, 900 more than the bill con-
templates, has been pledged
Census made cotton growers $50
counties shows 100 per cent indorse-
ment your bill and subscription excess
100000 bales carrying reduction cot
ton acreage proportionately," Wanna
maker wired from st. Matthews, S. c.
Passage your bill benefit every line
cotton industry and entire Nation"
Few Oppose Bill.
Among the few who opposed the bill
in the Senate were Senators Copeland
Democrat of New York; Gore Demo
crat, of Oklahoma, and King, Democrat
of Utah.
Copeland said it was "class legisla-
ton" which would help but one sec
ton Of the country Gore said 1t would
Cheat the hopes of the farmer" King
asserted "the mechanics of the bill are
complicated and the consequences
cannot be foretold"
On the other hand. Senators Smith.
McKellar, Democrat of Tennessee, and
| George, Democrat Of Georgia, urged
the bill as a means of improving the
economic condition of the whole coun-
try by helping the cotton industry.
Senator Walsh, Democrat of Massachu-
! sets, said the textile manufacturers of
| his State were strong for it.
The bill was amended in several par
| ticulars on the floor. One amendment
| sponsored by Senator McKellar elm
mated provision which would have
authorized the cotton board" which
would be created to administer the act,
to buy at its market value cotton held
by producers who agree to make the
required cut in production.
| Senator Smith said last night he had
received assurance from members OF
the House that this section would be
put back into the bill when it comes
up for consideration there.