Washington, Aug. 10.
The Senate Agricultural Committee to-day authorized its chairman, Senator Ellison D. Smith, tocafpoint a sub-committee for the pi of drafting legislation for cotton, loans.
The sub-committee has not been given definite instructions, the discussion by the full committee to-day centred on the proposal for a ten cents loan, Committeemen said that the action was taken to "put a bottom to the market."
The loans, Senator Smith declared, would be mandatory, but the details would be left to the sub-committee.
Earlier, the full committee had rejected a resolution for a 12 cents loan on the grounds that it was much higher than the prevailing price and would compel the~ Government to purchase the whole crop.
In addition, it was also proposed that ten cents planters should receive parity payments subject to compliance with the prospective farm control programme.
The loan programme is identical in principle with the 1935 programme, according to Senator Smith—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.