AGRICULTURAL RELIEF

23%

Mr. Kercaay. Before you leave that, you would consent to a very
moderate discount? Would you be willing to state what you think
the range of the discount might be? }

Mr. Goss. That would be merely an expression of opinion on my
part. The debentures are redeemable within 12 months from date
of issue.

Mr. MENGES. Who would determine the amount of debenture ?

Mr. Goss. The amount of discount would be determined by the
demand for the debentures; that is no question about that. Our
tariff duties now must be paid in American exchange. Much of our
imports are now brought in by exporters. Of course, in that case
there would be no exchange. But there is a demand for American
exchange, and if the importer could buy American exchange at one-
half of 1 per cent off, that is a saving which no sound business man,
no man of sound business judgment would overlook. The rate of
interest would depend upon the length of time between the issue
of the debenture and the application of the debenture on the pay-
ment of import duties. Undoubtedly they would be discounted for
a period of a few months, until the organization got into operation
and the flow of debentures determined the approximate length of
time in which the debenture would remain at issue.

Mr. Me~cEs. Does the so-called law of supply and demand come
in there ?

Mr. Goss. The matter of supply and demand would determine it.

Mr. Me~xges. You would have the law of supply and demand im-
posed upon your wheat and upon your debenture ?

Mr. Goss. I did not get that question.

Mr. Menges. You would have it both on the product von sell and
smn your debentures ?

Mr. Goss. That is true.

Mr. Harn. What would be the objection to issuing a cash bonus
without the debenture idea at all? Why not issue them an order
on the Treasury for so much cash?

Mr. Goss. I would prefer——

Mr. Harn (continuing). Avoiding the speculation that would natu-
rally occur in the handling of those debenture certificates?

Mr. Goss. I would prefer to have one of the speakers who is to
follow me answer that question, because it involves a constitutional
-nhibition or restriction that he is prepared to answer and that I
can not discuss as intelligently as he. But he is in the room and
he will make a note of that and will answer it when the question
romes up. I feel it is particularly pertinent.

Mr. A~preseN. The bill provides that the export debenture shall
oe paid to the exporter. I am not particularly interested in the
exporter, but I want to know how is the money to go back; where
is this export debenture going to be reflected back to the individual
producer ¢
. Mr. Goss. Let us take the question of wheat, which, I note in
astening to hearings before this committee, is the commodity usually
considered. This measure provides for an export debenture at the
rate of 21 cents per bushel on wheat. Now, we must concede that
the exporters of to-day are not doing business without a profit.