A(;nicuLTriiAj. appropriatiox hill, 1914. 449 



the I>)ng Staple Cotton Association, at (iroiMiwooil, Miss, It nilopied 

 us its policy, before the organi/ation was nratticaily «<»mpl«'t«'4l, 

 that all of its cotton should he stored in federally licenseil warehoiisrs, 

 and t(» show how ri<;idly it has a<lhered to its pnh<v. it has > ' I 

 to phuc any cotton with any warehousemen iinles,s thev i.. ...c 

 licenscil. One warehous«Mnan hehl out, an«l after there had heen 

 something; between ")()() and 1, ()()() hales of cotton placed with him, 

 on the assuni|)tinn tiint he would hecome licensed, he still refused, 

 and the pri'sidcnt of the association sent a raft down the river, or 

 some kind of a llathoat, and put ')()() hales of cotton on the Ixmt; ho 

 put a sif^n on it readin<;, "doinj; to a federalized warehouse." and 

 shipped it up the river. The result was the waridiousenian win-d to 

 he licensed as soon as we possibly could nnike arranj^ements. 'I'lmt 

 association has absolutely, durinj; this year and last year, put all «)f 

 its cotton in licensed warehouses, 'j'lie same tiling is true of tho 

 North (\irolina Cotton (.Jrowers A.ssociation, and the Arkansas 

 Cotton Cirowers Association, and practically every one of tin- asso- 

 ciations are in some measure usin«^ licensed warehouses, although 

 some of them have not adopted the license<i warehouse as their 

 exclusive policy. 



WAR FIN'.\NCE CORPORATION I.OAVS. 



The work of the War Fuiance ('(trporation in this connection has 

 undoubtedly been exj)edited considerably as far as nnikin«; loans to 

 these cotton associations have been concerned. This year the War 

 Finance Corporation has had applications for loans fnim practically 

 every one oi the cotton <;rowers' associations. The Xortii Carolina 

 Cotton Growers' A.ssociation has applied for SIO, ()()(), ()<)(): the South 

 Carolina Cotton Growers' Association has ap|)lied for SIO.OOO.OOO; 

 the Geor^ria Cotton Association has apnliecf for Sa.OOO.OOO; tho 

 Alabama Farm Bureau Cotton Association has applied for $8,()()().000; 

 the Staple Cotton Cooperative Association has applied for ?7.0()(),()()(); 

 the Arkansas Cotton Growei*s' Association has applied for .?7, 500.000; 

 the Arkansas Farmers Union Cotton Association has appIi(Ml for 

 $1,000.00(1 ; the Texas Farm Bureau Association has ajiplied for 

 $9,000,000; the Oklahoma Cotton Association has applied for S<i,()00,- 

 000; and the Arizona Cotton A.ssociation has applied for SI. 200,000. 

 In each one of these applications, and as n part oi the aixrcement with 

 the War Fiiumce Cornoration, the stipulation was made that as 

 collateral for loans tne War Finance Corpj^ation would accept, 

 without further question, Federal warehoiLse receipts, but that if 

 receiptxS issued by any warehousemen who were not opt'ratiiii; under 

 the federal act were presented as collateral the War Finance Corpora- 

 tion would reserve tne right to inspect and pass upon the receipts 

 issued by such warehousemen. In other wortls, it placed the Fwleral 

 warehouse receipts at once on the basis of being an accept abh^ piece 

 of paper to the War Finance Corporation without aiiv hut her con- 

 sideration. 



Mr. Andehsox. If I remember correctly, all commodities that are 

 placed in P'ederal warehouses have to be inspected and classed beforo 

 they go in i 



Mr. YoHE. The law originally proNntled that the gratle should bo 

 stated on every receipt. Then a year aftenvards, I think, it was 

 amended to read that the grade should be stated on every receipt 



