Page:United States Statutes at Large Volume 48 Part 1.djvu/58

 32 73d CONGRESS. SESS. I. CH. 25. MAY 12, 1933 . Declaration of policy. DECLARATION OF POLICY SEo. 2. It is hereby declared to be the policy of Congress- duction consump- Balance and c nsump- (1) T o establish a nd maintain su ch balance be tween the pro duc- tion to be established, tion and consumption of agricultural commodities, and such mar- etc. keting conditions therefor, as will reestablish prices to farmers at a level that will give agricultural commodities a purchasing power with respect to articles that farmers buy, equivalent to the purchas- Base period, except ing for tobacco power of agricultural commodities in the base period. The base . For tobacco. period in the case of all agricultural commodities except tobacco shall be the prewar period, August 1909-July 1914. In the case of tobacco, the base period shall be the postwar period, August 1919- July 1929. inequalities Correcting present (2) To approach such equality of purchasing power by gradual correction of the present inequalities therein at as rapid a rate as is deeme d feasible in view of the current consumptive demand in domesti c and foreign markets. Protecting consum- 7 ors ' interest. (3) To protect the consumers' interest by readjusting farm pro- duction at such level as will not increase the percentage of the consumers' retail expenditures for agricultural commodities, or products derived therefrom, which is returned to the farmer, above the perce ntage which was r eturne d to t he fa rmer i n the prewar period, August 1909- July 1914. COTTON OPTION CON- PART 1-COTTON OPTION CONTRACTS TRACTS. Duties of designated agencies. SEC. - 3. The F ederal Farm Board and a ll dep artme nts an d othe r agencies of the Government, not including the Federal intermediate credit banks, are hereby directed- sold to Cotton on hand Secretary to be of (a) To sell to the Secretary of Agriculture at such price as may Agriculture . be agreed upon, not in excess of the market price, all cotton n ow owned by them. on which money Acq uir ing fu ll has title (b) To take such action and to make such settlements as are neces- been l oaned, etc. sary in order to acquire full legal title to all cotton on which money has been loaned or advanced by any department or agency of the United State s, including futures contr acts for cotto n or which is held as collateral for loans or advances and to make final settlement of such loans and advances as follows Method of settle- ments. (1) In making such settlements with regard to cotton, including operations to which such cotton is related, such cotton shall be taken over by all such departments or agencies other than the Secretary amount loaned . equal of Agricultu re at a price or sum equal to the amount s directly or indirectly loaned or advanced thereon and outstanding, including senior loans. loans by the Government d epartment or agency and any loans senior thereto, plus any sums required to adjust advances to growers to 90 per centum of the value of their cotton at the date of its delivery Collateral. in the first instance as collateral to the department or agency Computation. involved, such sums to be computed by subtracting the total amount alrea dy adv anced to gr owers on acc ount o f poo ls of which such cotton was a part, from 90 per centum of the value of the cotton to be taken over as of the tim e of such deli very as colla teral, plus unpaid accrued carrying charges and operating costs on such cotton, less, however, any existing assets of the borrower derived from net income, earnings, or profits arising from such cotton, and from operations to which such cotton is related ; all as determined by the Cotton held as col- department or agency making the settlement, lateral for loans, etc. (2) The Secretary of Agriculture shall make settlements with respect to cotton held as collateral for loans or advances made by him on such terms as in hi s judg ment m ay be deeme d advi sable,