AGRICULTURAL RELIEF

345
Mr. Goss. That certificate of $10,000 will be expended in the
payment of $10,000 worth of duties, whether they be diamonds or
steel or anything you want to import, it does not make any difference.

Mr. AsweLr. I know that is true. Would not the diamond im-
porter pay me more than a low-tariff importer?

Mr. Goss. No; because he has to go out and buy exchange.
He is probably paying one-eighth to one-fourth per cent discount in
buying exchange now, whatever the market is; and it does not make
any diiference to him what he is importing; he has got to have
$10,000 worth of cash or its equivalent to pay his import duties, and
this is cash or its equivalent. It does not make any difference what
he is importing; he has got to have the cash.

Mr. Fort. Mr. Goss, right there: It is cash or equivalent. The
only difference between it, as I see, and direct cash present at the
point of export, 1s that it is not instantly available for anv purpose
rxcept the payment of customs duties.

Mr. Goss. That is the only difference.

Mr. Fort. It 1s practically issuing a legal currency that will be
accepted as legal currency for the payment of import duties, but for
no other purpose?

Mr. Goss. That is it; it is negotiable, of course.

Mr. KincHELOE. Doctor, let me ask you a little further: You said
awhile ago it is the purpose of the proponents of this bill to raise
he debenture prices of these basis commodities—the price of the
debenture above the world price. Well, what makes you think it will
do it? The tariff does not do it on wheat to-day.

Mr. Goss. No; because it is just the opposite of the tariff.

Mr. KincuELOE. If the tariff will not do it, if the American farmer
does not get the world’s price, plus 42 cents a bushel by reason of the
tariff to-day, why will he get it on the debenture?

Mr. Goss. Let us take 42 cents, since that has been quoted.

Mr. KincHELOE. That is the law.

Mr. Goss. And assume that your committee will establish the rate
at 42 instead of 21, because I presume if your committee should write
this into a measure that you will establish your own rates. Let us
assume that you establish it at 42 cents. The farmer to-day does
not get 42 cents tariff because he is selling on the Liverpool market,
and the tariff does not help him. But the farmer to-day, if he knew
that he could continue to sell on the Liverpool market and get a
certificate of debenture of 42 cents a bushel for every bushel he sold,
he would not sell for less than the Liverpool market plus 42 cents.

Mr. KixcHeELOE. You would be exporting all of the wheat out
of the country if you were going to get that and the world’s price.

Mr. Goss. No.

Mr. KixcHELOE. Everybody would want to sell over in Liverpool.
y Mr. Goss. No; because they can get the same price richt here at

ome.

Mr. KincueLoe. That is what I want to get ot.

Mr. Goss. All right. Let us assume that the Liverpool price, less
freight, is $1 a bushel. We are wheat raisers. We know that we
can sell at $1 a bushel plus 42 cents and get $1.42 for our wheat.
ess any——

Je. KixcueLoe. How do you know? That is what I am talking
anbont.