Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-08-23
End of Session Still
Expected by Late
Tomorrow.
BYRNES BATTLES
FOR 12.CENT LOAN
A. A. A. Program Calls
for Advances of 9
Cents a Pound.
BY the Associated Press.

A threat Of revolt" on the A. A. AS
new cotton program is plaguing leaders
who thought they had ended all
major fighting for this session of
Congress. They still expect, however,
that Congress will adjourn by TO-
morrow night.
After getting the House to agree
to a ''compromiSe" on the celebrated
abolition clause in the utility hold
ing company bill and bringing a
modified neutrality bill to the point
of vote in the same chamber they
went to bedIlast night satisfied their
big tasks were virtually over.
But this morning they awoke to find
Senator Byrnes, Democrat, Of South
Carolina, leading a movement for
immediate legislation aimed at a cot
ton loan-and-grant plan the A. A. A.
announced last night. He would
IL cents a pound on the 1885 crop,
as it did last year, and planned to
offer such an amendment to the third
deficiency appropriation bill.
Niuc-NcHt LOdn IN n. n. n Kan.
The A. A. AS plan calls for only
a Scent loan. with guarantee OF
a l2-cent return to the growers
through a system of direct grants
from the Government.
Byrnes felt confident Of support
from Senator Bankhead, Democrat, OF
Alabama and others. Bankhead hit
the plan as very confusing" snd one
which may cost the Government q
great deal of money"
Cotton growers have been seeking
maintenance Of the price OF cotton:
manufacturers are for lower prices to
compete with foreign mills. The new
A. A. A. plan, observers here said, vas
an attempt to work toward both OBJ
jectives.
Under this plan the Government
would guarantee a total return of u
cents to growers taking part in the
Governments cotton-control plan,
the guarantee to be carried out
through direct grants Of Government
funds.
Two Alternatives for Grower.
Under the loan system the cotton
grower has two possible alternatives
If the price is comparatively high, he
can sell his cotton, pay back the Gov
eminent loan plus interest, carrying
and other charges, and then keep the
difference If the price is lower than
loan figures, plus carrying charges, he
can fail to pay the Government and
the Government keeps the cotton.
The loan ON the 1884 crop was IL
cents pound.
Byrnes said his proposed amend
ment to the third deficiency bill would
direct the Commodity Credit Corp. to
advance farmers IL cents pound.
Saying he was assured of support
from Bankhead. Byrnes added that he
was confident that his proposal would
have the backing of other Southern
Senators.
Bankhead and Senator George,
Democrat. Of Georgia had issued state
ments sharply criticizing the admin
istration for its new cotton plan.
Refers to Struggle.
Referring openly for the first time
to the struggle which has been fought
between Farm Administration officials
and members of Congress over the
loan policy, the Alabama Senator.
author of the Bankhead cotton control
act, said 1T is evident that Secretary
Wallace, Chester Davis and cotton
shippers won a victory"
Bankhead and George had an
nounced recently that they were con-
fldent a fiat 12-cent loan would b.
provided
THE Secretary of Agriculture and
the President" George said last night,
have yielded to the demands Of the
shippers and shipping interests and
the announcement will be disastrous
to the entire cotton-growing South.
will not ask another South
ern farmer to sign a contract with
the Government"
But at Ames, Iowa, where he Is at
tending a farm meeting. Secretary
Wallace said: Il am delighted with
the decision of the President"
This plan" Wallace said, will
sustain the income of the cotton
farmer and at the same time leave
the market price free fer normal
movement"
More Loans Expected.
Stating that the plan was approved
BY President Roosevelt. the A. A. A.
announcement said the Commodity
Credit Corporation will offer a loan Of
o cents a pound at the farm. without
recourse on the borrower, on 1916
inch low middling cotton or better.
Last years 12-cent loan was made
only on 7s-inch middling cotton or
that of a higher quality. The modi-
fed regulation this year, oficials ex-
planned. will permit loans on about
zoe, 600 bales more than was permitted
last year.
No loans will be made on cotton OF
lower staple and grade than 1916 inch
low middling.
Oficials said they expected this new
plan to provide growers an income Of
approximately 100000, 900 for their
lint cotton for 1885, exclusive Of rental
and benefit payments under existing
contracts. The income for lint cotton
in 1894 was placed by the A. A. A. at
$613, 0O0, 900, compared to 1884, 000, 900
In 1888 and S424,O0O, 900 in 1882.