Mr. Hull is not expected to render an immediate decision as to whether the State Department will or will not approve the agreement. Although he has voiced his strong disapproval of boycott moves, more recently, in a speech before a farm association at Nashville, Tenn., he indicated that he was not enthusiastic about barter or unilateral agreements. He pointed out in the Nashville speech that past experience with barter pacts showed they were not vary valuable in that they yield only a mere fraction of the normal volume of trade.
Which attitude will prevail in Mr. Hull’s consideration of the proposed cotton deal is problematical â€”disapproval of the boycott or disapproval of barter agreements.
The Export-Import Bank’s deal has already been approved by the Treasury Department.
By its terms, it provides for purchase by Germany of large quantities of American cotton to be paid for twenty-five per cent in cash, in American dollars, and the remainder in German goods or their equivalent in German government script. The script could not be used for the purchase in foreign exchange, but could be used to buy German goods for export to the United States.