I think that if we could eliminate that, and let this cotton move at the price, instead of having the spot markets quote the loan, rather than the actual value of the cotton, I think that from that standpoint. that it would be good. The same thing, I think, would be comparable to the condition that existed in the southeast part of Missouri years ago, when we were producing the major portion of the crop which was half and half. Well then we came along and began planting better grades and getting our people educated to the fact that they could get more money for their cotton by producing the grades that were in demand. I do not think there is any question that we cannot help but admit that under the plan that we are following now we are encouraging some people to produce cotton for the loan. I am opposed to production for the loan, whether it is cotton or wheat or anything else. I want to see this price program used as a protection to the farmer and not as an incentive to try to produce for that. Mr. POAGE. I want to repeat what I said a while ago, the same thing that we have now been discussing, it is my understanding that if we were to pass this legislation as it is now written that it would be applicable to all of the grades of cotton and that it would depress the market, not only for the low grades of cotton, but for all cotton, not only for future markets, but for the cotton that the farmers are ginning right this very moment. I do not want to do that. I am about to do that with my eyes open. Mr. GATHINGS. Do you not think that an amendment could be drafted? Mr. POAGE. I do. Mr. GATHINGS. To do that job? Mr. POAGE. It has been made abundantly clear that this bill is ineptly drafted and that clearly to accomplish what most of us agree that we do want to accomplish, that the bill has to be limited to those grades of cotton that we want to depress, not to cotton generally. Certainly, we do not want to depress the cotton market. Mr. HAGEN. Could you not establish a deadline when he makes this announcement? Mr. POAGE. It is not merely a deadline. It is a matter that this bill does not, as I see it, adequately distinguish between the grades of cotton that we want to dispose of and the grades of cotton that we should not depress. Mr. RHODES. The only two States that we are talking about that grow this kind is Oklahoma and Texas. The other States to a fraction of a percent grow these others. On long staples it would have an affect on Arizona and New Mexico. Mr. GATHINGS. I wondered if Mr. Raper had a statement that he would like to make at this time. Mr. RAPER. I do not have any statement. I am just here with Mr. Rhodes. Mr. POAGE. You propose to correct this by an announcement by the Secretary. I think that we have a responsibility here to make the correction in the legislation, rather than to pass what we know is unsound legislation and to expect the Secretary to correct it with an announce ment. Mr. RHODES. I see your point. If you limited the legislation in time as suggested, I think that this would come nearer being appropriate, but what is in long position this year might 2 years from now be exactly the opposite. And if it is in the legislation, then you are bound. Mr. POAGE. We are trying to get a formula that will protect that, rather than saying, "You can sell anything that is less than 1 inch. We are not wanting to write a law of that kind, because we do realize that might change. Mr. WHITTEN. You could limit the conditions under which you could do it. I do not know how they ought to be spelled out, but if you limit the conditions under which they can do it, you have a guide. Mr. GATHINGS. Is there anything further that you would like to say, Mr. Rhodes, before we close the hearing? Mr. RHODES. I believe that pretty well covers the Department's position on this type of legislation. Mr. JONES. I want to ask one question, to get the thinking of this group. Do you not think that it would have a good effect psychologically if we could introduce a bill either to exempt from the loan cotton of the shorter staples-I do not know which place you will fix thator to make it possible for the Secretary to determine the average price of the cotton, rather than to fix it on the 78's as we do in the law, to show the public that we are interested in using this price-support program strictly as an insurance feature for the farmer, rather than to subject ourselves to this constant criticism that we are producing this cotton for the loan, rather than to try to get advantage of the law for legitimate purposes? Mr. GATHINGS. That will require extended hearings on legislation of that kind. We wanted this emergency proposal presented before adjournment. I surely hope that we can go into legislation as suggested here by the gentleman from Missouri. That is when we reconvene in January. Mr. HAGEN. I understand that the Japanese, for example, and other foreign producers of finished products have taken over largely this cheaper grade of cotton-fabric market. Was this one of the reasons? Mr. RHODES. I do not think that I could agree that they have taken it over. The imports of Japanese-you mean the imports of Japanese cloth? Mr. HAGEN. The rougher cotton goods. Mr. RHODES. It runs less than 1 percent, I think, of the consumption of cotton in this country, that is, Japanese imported materials. Mr. HAGEN. We have not lost a great deal then. Mr. RHODES. There is a great deal of talk, and there is much writing and much on the radio about the Japanese taking over the market, but if you get the statistics, you will find that it is wrong. Mr. GATHINGS. Are there any further questions? If not, we thank you very kindly for your appearance. The hearing is adjourned. (Thereupon, at 11: 25 a. m., the subcommittee adjourned.) |