AGRICULTURAL RELIEF

341
The CuamrMAN. Do you contend that the bill before us would
give the farmer the benefit of the tariff ¢

Mr. Goss. Yes; we do. oo

The CrairmaN. The tariff is 42 cents and you give 21 cents under
the bill.

Mr. Goss. We give the benefit of the tariff from this standpoint,
that if the tariff is soundly established under the flexible provisions
of our tariff act, it is based on the difference in cost of production
between home and abroad. Those are the instructions which are
given to the Tariff Commission by the Fordney-McCumber bill, to
establish the tariff at a point to meet the difference in the cost of
production between home and abroad. Taking up the cost of pro-
duction, our bill establishes 50 per cent of the tariff as a point from
which to begin operation, and if the tariff board actually established
the tariff on the basis ordered in the tariff act, it would be established
at the same point as the export debenture rate would be established
by the board, for both rates would aim to meet the same conditions—
the difference in cost of production between home and abroad.

The CmamrmaN. Twentv-one cents on wheat. How much on
cattle ?

Mr. Goss. We have two different classifications on cattle.

The Cmamrman. On cattle it is 1 cent and you give them two-
thirds of that. Do you believe that the tariff is too high? Why do
you cut the tariff in two? Are you people in favor of the tariff?

Mr. Goss. We are in favor of the tariff.

The CrairmaN. The existing tariff ¢

Mr. Goss. We are in favor of the existing tariff except that we
do not know that the rates of the existing tariff are sound. The
existing tariff rate on wheat is supposed to be the difference in the
cost of production between home and abroad. We know that the
Tariff Commission is away behind with their investigations.

The CramMman. That is the finding of the Tariff Commission

Mr. Goss. That is the finding of the Tariff Commission—42 cents.

The CuairmaN. That would be 42 cents a bushel. Now, you pro-
pose to cut it in two, do you not ?

Mr. Goss. If the tariff rate of 42 cents a bushel is the actual
difference in cost of production between home and abroad the rate
of export debenture should be set at 42 cents a bushel. We have
given to a special board the power to make those investigations,
because we have felt this, that the tariff on wheat. for example, has
not been operative in the fullest extent.

The CuarrmMAN. Are you getting the benefit of the tariff on wheat?

Mr. Goss. Very little.

The CHAIRMAN. Are you getting any?

Mr. Goss. I should say that there is probably some benefit coming
from the tariff on wheat.

The CaamrMaN. Ten cents a bushel above? Where does the tariff
come In? Are the producers getting no benefits from the tariff ?

Mr. Goss. Very, very small benefits.

The Carman. They are entitled to 42 cents and you propose to
rive them 21 cents?
~ Mr. Goss. We proposed to set up a board to give them 42 cents
if that is found to be the difference in cost of production, but we
have named 21 cents as a place to start in.