AGRICULTURAL RELIEF 
355 
do just one thing, and that is to raise the price on American products 
above the world market by the difference in cost of production at 
home and abroad. If our prices are already above the world market, 
the debenture will immediately become inoperative and will not cost 
the Treasury anything, because nobody will export if it is above the 
world market. 
Mr. KincHELOE. I can not understand what is the difference be- 
tween issuing these debentures and paying in cash. If you have 
these debentures you are going to kite all over the country, and the 
growers and speculators are going to get them, and the poor devils 
are going to have to discount them. I do not see why when this 
transaction is completed you do not pay him out of the Treasury. 
Mr. Goss. Mr. Hall raised that question, and I asked if he would 
not let this be answered by the gentleman following me, because it 
is a constitutional question that I can not discuss as intelligently as 
one who has all the law and constitutional points and can bring 
them to you. 
Mr. KinxcHELOE. I do not think there is much of a constitutional 
question to it. 
Mr. Kercuam. Have you got down to the question I wanted you 
to cover? 
Mr. Goss, I got down to it and I got off of it. 
Mr. Kercaam. The section that gives the power to the board to 
lower the debenture rate when there is evidence of overproduction. 
Mr. KincHELOE. The same power is given the President under the 
Fordney-McCumber tariff bill, is it not? 
Mr. Goss. There is one other provision I would like to cover, Mr. 
Ketcham, before I reach that in section 7. It comes under (c), page 
10, and this provision is designged to assure against an overissue 
of debentures. It provides that whenever there is an indication that 
the amount of debentures issued is likely to exceed half the total 
amount of tariff receipts during the coming fiscal year the board 
shall present a report to the President, and he shall reduce ratably 
the amount of the debenture rate on all commodities so that it will 
not exceed 50 per cent; and the purpose of that 50 per cent is to 
assure ample margin so that the debentures would always be im- 
mediately redeemable. Some think it might be higher. After ex- 
perience has demonstrated just how these provisions are going to 
work out it probably would be wise to raise that, if it seemed advis- 
able. But to start with, it provides against overissue of debentures. 
[t is plain that there would be a demand for twice as much exchange 
to pay import duties with as there are debentures issued, thus avoid- 
ing the condition thdt Doctor Aswell raised here, where the deben- 
tures would be discounted: and we give 12 months in which to redeem 
‘hem. 
The provision which Mr. Ketcham has referred to to curb over- 
production is found in subsection (d), section 7, on page 11. It 
provides, first, that if the President finds at the beginning of the 
crop year—and the crop year is defined as follows: 
The term “crop year,” as used in this subdivision, means a 12 months’ period 
reginning at a time designated by the President. 
If the President finds at the beginning of a crop year that the prob- 
able production of any debenturable acricultural commodity during