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