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1090 The next amendment was, at the top of page 40, to insert:

35. The Commodity Credit Corporation is hereby authorized and directed to extend the maturity date of all notes evidencing a loan made by that Corporation on cotton produced during the crop year 1937-1938 from July 31, 1938, to July 31, 1939.

The Corporation is further authorized and directed to waive its right to reimbursement from warehousemen accruing because of the improper grading of cotton as provided in the loan agreement. Except insofar as herein specifically modified, all the terms and conditions of the loan agreement shall remain applicable.

Mr. McKELLAR. Mr. President, I ask the Senator from Alabama just what that means.

Mr. BANKHEAD. Mr. President, this amendment was offered by the senior Senator from South Carolina [Mr. ], the chairman of the Committee on Agriculture and Forestry.

Mr. McKELLAR. I refer to the provision reading:

The Commodity Credit Corporation is hereby authorized and directed to extend the maturity date of all notes evidencing a loan made by that Corporation on cotton produced during the crop year 1937-1938 from July 31, 1938, to July 31, 1939.

Is not that looking a long way into the future?

Mr. BANKHEAD. The senior Senator from South Carolina is in the Chamber, and I will refer the Senator to him.

Mr. SMITH. Mr. President, in respect to the matter to which the Senator has called attention, there is now in course of preparation an amendment which I think will take care of this feature.

Mr. McKELLAR. I ask that the amendment go over until tomorrow.

The PRESIDING OFFICER. Without objection, section 35 will be passed over.

Mr. BANKHEAD. Mr. President, a little while ago the Senator from New Mexico [Mr. ] tendered an amendment which be said was prepared by the Department, and which we did not understand, but we do understand it now. I ask that that be taken up at this time.

The PRESIDING OFFICER. Is there objection to returning to the paragraph on page 37 involved in the amendment? The Chair hears none, and the Secretary will state the amendment.

The. In the amendment of the committee on page 37, line 24, after the word "prohibited", it is proposed to insert the following:

Unless prior to such marketing (1) the Secretary shall have, under section 7, released cotton from marketing quota restrictions, or (2) the farmer shall have absorbed such excess marketing through diverting from the production of cotton an acreage, the normal production of which equals or exceeds the amount of such excess marketing.

The PRESIDING OFFICER. The question is on agreeing to the amendment offered by the Senator from New Mexico to the amendment of the committee.

The amendment to the amendment was agreed to.

Mr. HATCH. Mr. President, I desire to call the attention of the Senator from Alabama to another matter before we pass from this particular section. From a reading of it another thing has come to my mind, and I desire to call it to the attention of. the Senator from Alabama. In lines 24 and 25 I find the words "Ginning such cotton and selling it creates a prima facie presumption." It would take both ginning and selling to create the presumption. I have in mind that in some sections of the country cotton is largely sold in the seed. Has the Senator from Alabama given any consideration to that?

Mr. BANKHEAD. Yes. My thought was that before the producers could take it into the channels of interstate commerce they had to gin it and sell it.

Mr. HATCH. I do not quite agree with the Senator in that regard.

Mr. BANKHEAD. Under this program we are limited to the regulation of commerce and getting the product into condition to move it in commerce. I thought it was best to take this precaution, to be on the conservative side, to provide that both things must concur, namely, that the ginning must be done and that the cotton must be sold. because the producers cannot move it in interstate commerce effectively until they gin it.

Mr. HATCH. Mr. President, I merely desired to call this to the attention of the Senator from Alabama because it occurs to me that the bill as drawn leaves a wide-open loophole to people by which to escape every penalty which has been provided in the bill. Cotton can be and is transported across State lines and sold in the seed very frequently in the western part of the country, as the Senators from Texas and Oklahoma and States in that section know. I do not know about Alabama.

I am calling this to the attention of the Senator from Alabama to ascertain whether he desires to consider it in perfecting his bill, and in order that it may be considered I ask that this paragraph go over until tomorrow.

Mr. BANKHEAD. I have no objection to that.

The PRESIDING OFFICER. Without objection, the paragraph will be passed over.

Mr. POPE. Mr. President, I desire to have printed a proposed amendment for the benefit of Senators, the amendment relating to the matter of ensilage in connection with dairy practices.

The PRESIDING OFFICER. The amendment will be printed and lie on the table.

Mr. BARKLEY. I move that the Senate proceed to the consideration of executive business.

The motion was agreed to; and the Senate proceeded to the consideration of executive business.

Mr. LOGAN, from the Committee on the Judiciary, reported favorably the nomination of, of Kentucky, to be an associate justice of the United States Court of Appeals for the District of Columbia, vice Charles H. Robb, retired.

Mr. BURKE, from the Committee on the Judiciary, reported favorably the nomination of Henry White Edgerton, of New York, to be associate justice of the United States Court of Appeals for the Dictrict of Columbia, vice D. Lawrence Groner.

Mr. McCARRAN, from the Committee on the Judiciary, reported favorably the nomination of Joseph R. Jackson, of New York, to be associate judge of the United States Court of Customs and Patent Appeals, vice Finis J. Garrett, nominated to be presiding judge of that court.

Mr. KING, from the Committee on the Judiciary, reported favorably the nomination of John P. McMahon, of the District of Columbia, to be judge of the police court for the District of Columbia.

The PRESIDING OFFICER (Mr. in the chair) The reports will be placed on the Executive Calendar.

If there be no further reports of committees, the clerk will state the first nomination on the Executive Calendar.

The legislative clerk read the nomination of John H. Druffel to be United States district judge for the southern district of Ohio.

The PRESIDING OFFICER. Without objection, the nomination is confirmed.

The legislative clerk read the nomination of Nathan Straus, of New York, to be Administrator of the United States Housing Authority.

Mr. VANDENBERG. Mr. President, I desire to make a brief statement regarding the nomination of Mr. Straus, of New York, to be Administrator of the United States Housing Authority. I make the statement in fairness to Mr. Straus, as well as in fairness to the protest which I tentatively filed with the committee when his nomination was reported to the Senate a few weeks ago.

One objection which was urged to the eligibility of Mr. Straus was that he could not function under the terms of the law in the administration of a housing project in which he was a stockholder, as is the continuing case with the housing project known as Hillside Homes.

Mr. Straus and his counsel readily admit this infirmity, and have avoided it by filing a letter with Secretary of the