Evening star., 1939-05-11
Cotton Export Subsidy
Program Is Likely
Despite Senate Vote
Funds for Bounty
Are Provided for in
Agriculture Bill
Ev tic Associated Press.

6P VIC ASSOCIATED PreSS.
Senators and Federal farm officials
agreed today that the Government
could launch a cotton export sub
sidy program despite the Senate's
refusal to consider placing a bounty
on foreign sales.
Senator Bankhead, Democrat of
! Alabama. wanted to establish a
Federal subsidy on cotton other than
that held as security for Govern
ment loans. His proposal to attach
the plan to the Agriculture De-
partment appropriation bill, how
ever. would have required a two
thirds majority. The Senate de-
feated his motion yesterday, 81
to 36.
Funds Provided in Bill.
Agriculture Department officials
said they have authority now to pay
an export bounty on cotton. if funds
are provided. The Senate has added
Sis, 600 900 for disposal of farm sur
pluses to the $4,000, 900 provided
in the Agriculture bill as passed by
the House.
Odicials indicated the subsidy
would be inaugurated with part
of that fund unless Congress enacts
a specific ban against spending the
money for that purpose. Senator
George. Democrat of Georgia. indi-
Gated he might seek adoption of
such a restriction.
Senator George and Senator
Smith, Democrat, of South Ca><lina,
who led the opposition to the Bank
head proposal, agreed that authority
probably existed already for the sub
sidy. Senator Bankhead said he
also held this view.
The export subsidy was advocated
by President Roosevelt to help dis
pose of the IL. 400 900 bales of cotton
which the Government holds as
security for loans to farmers. Sem
ator Bankhead argued that subsi-
died export of loan cotton would
lower prices in this country as the
new crop was being sold. He ia
vored the bounty for the new crop in
order to prevent its being pledged
for loans.
Some other Senators, including
Senators George and Smith, oppose
any sort of export subsidy.
Present Status.
AS the law now stands, none of
the loan cotton can be released be-
fore July 81 unless the Government
gets back all of its investment
This is an impoSsibility in view of
the fact current prices are below
the loan rate.
Without an export subsidy, Off
cials said 1t was probable 5000, 600
or 1000 900 bales of the new crop
would 60 under loan.
Because the cotton dispute was
not decided until near the Senate's
quitting hour, Majority Leader
Barkley abandoned an attempt to
obtain passage of the agricultural
measure.
Senator Wheeler, Democrat, of
Montana injected new angle into
the tangled farm picture by intro
ducing a new plan for wheat, which
| he said would assure growers a
profitable price and be elf-financ-
ing"
The Montana Senator proposed
amending the present Crop Control
Act so millers and wheat professors
would have to purchase wheat in.
come certificates" to be used to
finance payments to wheat growers.
Senator Wheeler said he offered
the wheat bill for the National
Farmers Union and Western farm
groups working with M. w. Thatch-
er. who has been associated with
numerous administration farm
measures.
The certificate plan" was re-
garded as a modified form Of farm
processing taxes. As described by
Senator Wheeler, it would permit a
farmer to plant and harvest all he
desired, but his certificate payments
would be limited to his allotted share
and marketings would be restricted
in times of large production.
while this bill will increase the
price of wheat for the professor
and the miller, it should not raise
the price of foodstuffs to the con-
suming public" Senator Wheeler
said.