PRINCIPLES OF VALUE AND PRICE 479 



NOTE. It may be added that the tying up of so large a stock of 

 coffee as that which was held at New York under this valorization 

 plan was looked upon by our Attorney- General as an improper 

 restraint of trade. He accordingly began proceedings against the 

 "coffee trust." The relation in which the Brazilian government 

 stood to the whole scheme, however, made the situation not a little 

 delicate. A satisfactory solution of the difficulty was afforded early 

 in 1913, by the release and sale of the stock then held in trust in 

 New York. EDITOR. 



151. INVOICING GOVERNMENT AID FOR COTTON PRICES 1 



Mr. Smith, of Georgia, secured consent, October 24, 1914, to 

 introduce in the Senate of the United States the following bill: 



A BILL (S. 6684) TO .PROVIDE FOR THE PURCHASE OF 5,OOO,OOO BALES OF LINT 

 COTTON, AND FOR OTHER PURPOSES 



Be it enacted, etc., That during the year 1915 a special excise tax is 

 hereby levied, and shall be paid and collected not later than December of 

 said year, upon every person, firm, or corporation engaging in the business 

 of planting, growing, or producing cotton, said tax to be measured as 

 follows: 



Every such person, firm, or corporation shall pay a tax of 2 cents a 

 pound upon all lint cotton produced or grown by such person, firm, or 

 corporation in excess of 50 per cent of the total amount of lint cotton pro- 

 duced by such person, firm, or corpdration in the year 1914: Provided, That 

 where any such person, firm, or corporation was not engaged in the business 

 of planting, growing, or producing cotton in the year 1914, such person, 

 firm, or corporation shall pay a tax pf 2 cents a pound on all lint cotton 

 produced by such person, firm, or corporation in excess of 50 per cent of 

 the total amount of lint cotton produced in the year 1914 on the farm or 

 plantation operated by such person, firm, or corporation in the year 1915. 



The Secretary of the Treasury is hereby authorized to make all neces- 

 sary rules and regulations for the collection of the tax herein provided for. 



SEC. 2. That the Secretary of the Treasury is hereby directed to have 

 immediately prepared bonds of the United States to the amount in face 

 value of $250,000,000. The said bonds shall be in denominations ranging 

 from $10 to $500, and shall be made due on or before three years from date, 

 and bear interest at 4 per cent per annum, and shall be payable in gold. 



SEC. 3. That the said bonds shall be used at their face value for the 

 purchase of 5,000,000 bales of lint cotton, payments to be made in said 

 bonds to the sellers of such cotton, and the Secretary of the Treasury, the 



1 From Congressional Record, 6$d Congress, 2d session, 18719-22. 



