Evening star., 1939-04-23

sidering sS35,0O0, 900 Agriculture
Department appropriation bill,
1Uhich House approved after re-
tusing to add s250,O0O, 900 10
parity payments designed to raise
farmers purchasing poDer. South
ern Senators seek reinstute-
ment OF this sum, Dhile Middle
West bloc seeks $50, 100000 in
crease to erpdnd Government
purchase OF crop surpluses.
BY the Associated Press.
President Roosevelt and Southern
Senators patched up their quarrel
over a cotton export subsidy by
agreeing on a bounty of about 2
cents a pound on both raw cotton
and manufactured cotton goods
sold abroad.
Senator Bankhead, Democrat. Of
Alabama. who served as peacemaker
IN the dispute that threatened to
deadlock Senate action on all farm
legislation. announced the compro.
mise agreement after a secret con.
ference Of the Senate cotton bloc.
He said the subsidy would be used
in an endeavor to sell first this years
cotton crop and cotton outside the
Governments loan stocks.
President Roosevelt had suggested
subsidy to reduce the more than
ii 100000 bales of staple piled up
under Government loans. but South.
ern Senators contended this might
lower the market for this years crop.
Called Practical Operation"
THE revised program is a prac-
tical operation of the cotton export
subsidy announced by the Presi-
dent" Senator Bankhead said.
Our present plan will leave all
new crop cotton in free channels of
trade he said. Il feel certain that
the domestic price for this season
will be stabilized at around 9 cents
pound"
This price level, he added. would
cause growers to market their new
crop instead of putting it up as COL
lateral for Government loans Of
oDOuI CclltS d pOuIlQ.
Being directed primarily at NOV.
ing the new crop into world cham
nels, the compromise plan would
leave unsolved the question of what
to do with the huge quantities Of
cotton piled up under Government
loans.
Senator Byrnes, Democrat. Of
South Carolina has suggested trad
ing part of it to Great Britain and
other nations for tin. rubber and
other products this country lacks.
Under his plan. the trades would
be accompanied by an agreement to
hold the stocks as war reserve un-
less the world price climbed to
figure to be agreed on before the
trade.
Hear Britain Wants Cotton.
Administration circles heard with
interest a report published in the
London Sunday Dispatch that
Great Britain had opened negotia-
tions for purchase of the bulk Of
the surplus. 1t was said at the
State Department that nothing was
known of this here. Officials said
it was possible. however, that AM
bassador Kennedy had been ap.
preached at London.
Senator Bankhead said the COM
promise export plan would be at
tached to the annual agricultural
appropriations bill now pending be-
fore Senate committee so that
funds would be available to carry it
out.
The program would prohibit use
or release of any of the cotton now
stored under loans until after jan
uary /. Senator Bankhead said this
would give growers ample time to
move the present crop"
Export bounties on cotton not un-
der loan could be paid after July /,
start of the new fiscal year for
which the agricultural appropria-
tions are available.
About 2 Cents per Pound.
While Senator Bankhead said the
subsidy would be about 2 cents q
pound he said arrangements would
be made so that it could be paid
either In cash or cotton. The Sec
retary Of Agriculture, he said, could
buy free market cotton" If he
wished to make payments in kind.
The program would permit sub
sides on up to 100000 bales of
exports annually. A bale is 500
pounds. Senator Bankhead said
100000 bales was a long time av-
erage on exports, and the total was
limited to this to avoid complaints
"that we are trying to raid foreign
markets"