About a year ago I was talking with Dr. Magness of the U. S. Bureau of Plant Industry and the discussion happened to turn to nuts. I knew that within the preceding six months Dr. Magness had covered most of the southern states where the pecan is grown commercially and had occasion to give considerable attention to the problems of the pecan industry. I asked, "What percentage of the commercial pecan growers at the present time are producing 1,000 pounds of cured nuts to the acre?" He replied, "Don't ask me what percentage. We can't talk about it in those terms. You can probably list on the fingers of one hand the growers who, year in and year out, are producing pecans at the rate of a thousand pounds to the acre, and certainly you can on the fingers of two hands." To me that was a rather striking statement. Dr. Magness may not have been entirely correct in his answer, but he was probably not far off. Anyway, the percentage of commercial pecan growers obtaining really large yields is extremely small. In the Pacific Coast States, a larger number and a larger percentage of the walnut growers regularly produce a thousand pounds of cured walnuts to the acre, though there are more who average 500 or 600 pounds. As yet, in any of our retail markets you may purchase first class named varieties of pecans at from 25c to 40c a pound. The same thing is true of English walnuts. If the cultivated varieties of the black walnut, hickory and the chestnut are to be put on the market in quantity, they will come into competition with the pecan, English walnut, almond and Brazil nut. This means that they must sell at comparable prices. Therefore, one of the principal problems of the nut industry, as I see it, just as with delphiniums or the peony or the dahlia or iris or in others that I might mention, is the problem of plant materials, more specifically, the breeding or discovery of varieties that are superior and that consequently can really compete with the English walnut and pecan and that likewise are productive and that can be produced at a low cost. As a matter of fact, in all of your meetings up to the present time the finding, testing, and the evaluating of chance seedlings that appear to be of promise has constituted not only an essential but one of the larger features to claim attention. Furthermore, I believe it will continue to claim attention for many years to come. Practically all of your present materials, from the Fairbanks hickory to the Thomas or Stabler walnut, have just happened--that is, occurred as chance seedlings. They have been found and recognized as something a little better than the general run. Someone has brought them to the attention of the public, your Association placed approval on them, and they have been propagated and finally become more or less disseminated.