Evening star., 1937-08-13
PRESIDENT AGREES
TO j. s. MAKING
COTTONL0ANSN0W
Funds Would Be Contingent
on Farmers P|edging
Aid Next Year.
SENATE DELEGATION
VISITS WHITE HOUSE
Bilbo Says Step, in Effect, Would
Peg Price at IL Cents
Pound.
BACKGROUND

d AZ n uHoON ~
Since Supreme Court reoroani-
cation ceased being an issue and
lett the 1ody clear for Congress to
deal nth other business. the White
House has insisted on a crop-con-
troll lar. Congress has shomn little
disposition to 90 along NTH PreSt-
dent Roosevelt, but cotton bloc
put great pressure behind the de-
mand for cotton loans. II mas I'M
derstood the President mould reto
a loan bill unless accom- panied by
crop-control legislation.
BY the Associated Press.
A Senate delegation reported after a
White House conference today that
President Roosevelt had agreed tc
make immediate Federal loans on cot
ton to farmers who pledged to comply
with a surplus control program to be
enacted next session.
Senator Bilbo, Democrat. of Missis-
sippi said resolution putting Congress
on record to pass surplus control leg
islation early in 1888 would be taken
up in the Senate later today.
He said the President had agreed
to make loans which in effect would
peg the price at II cents a pound.
Subsidy Of 2 Cents.
Bibo added that the amount Of the
loan had not yet been determined. but
if it was 10 cents a pound. the Gov
ernment would grant subsidy of
cents. This is in line with the Federal
loan program OF 1885.
Senator Ellender. Democrat. of
Louisiana said subsidies would be
withheld until farmers had actually
complied with the program to be en-
acted
Others who called on the President
were Senators Schwellenbach. Demo-
crat, of Washington, and Thomas,
Democrat. of Oklahoma. Secretary
Wallace also sat in.
Asked about wheat, corn and hogs,
Bilbo said;
Il think the admlnistra ton will give
them the same consideration as it will
give to cotton"
Senate Agriculture Committee men,
bers had voted last night to ask
Mr.. Roosevelt to order lO-cent loan
to peg prices, dropping under the
weight of bumper crop.
The committee also approved a
resolution which. if adopted by Con-
gress, would make crop control leg
islation the first item of business at
the next session.
1t took this action to checkmate
the possibility of headlong overpro-
duction, which the President said
might result if money we're loaned
without safeguards provided by crop
control.
The resolution was adopted after
long discussion between Secretary
Wallace and the committee.
Wallace had told reporters earlier
the administration should not make
loans until controls were provided.
After the discussion. however, COM
mittee memb said they were conf
dent Mr.. Roosevelt would approve
loans if he were given assurance Con-
gress will take up the requested leg
islation in the first week of the next
session.
Whether "the next session meant
a special gathering this Fall or the
regular term in January was not speci-
fed. Secretary Wallace had spoken
of a special session as "a fine thing for
the farmer"
Although it recommended a 10-cent
cotton loan program, the committee
suggested the President might see fit
later to guarantee a higher price, in
the event the market did not respond
to 10-cent level
In previous years, fixing of a level
by Government guarantee has re-
suited in cotton selling above that
figure, since farmers could decide for
themselves whether to market their
crop.