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AGRICULTURAL RELIEF

369
before the International Economic Conference in Geneva in May last,

which have not made agreements that they will not impose export

bounties. But if you use the export-debenture method you come at
it in a different way; it becomes a more domestic proposition: more

a matter of adjusting our own tariff system. Under those circum-

stances the probability of foreign complication is markedly reduced.

I am saying that not merely on the basis of my own judgment. 1
submitted the matter to Prof. Allyn A. Young, who attended the
[nternational Economic Conference in Genera. and had from him a
statement to the effect that in his opinion this method is less likely
to lead to_ international complications than dumping would do.
Professor Young, as you know, is connected with Harvard Uni-
versity.

Mr. Kercuay. At that point, suppose the debenture exceeded our
lariff rate. Then the principle you have just announced would not
apply: but so long as you kept your debentures beneath the tariff
rate that principle could apply?

Mr. Stewart. To make a debenture rate exceed the tariff rate on
any product with a possible exception of cotton—which T would
wish to discuss later—to make a debenture rate exceed the tariff
rate 1s to invite trouble.

Mr. Jones. That would simply reduce the value of the debenture.
You could not give it a greater value without making it redeemable
by the Treasury ?

Mr. Stewart. It would invite trouble, Mr. Jones, in two ways.
In the first place, let us assume that the Government would say to a
man, * We will give you 50 cents a bushel on your wheat as it goes
out of the United States.” I believe 50 cents was the figure which
your chairman used yesterday—50 cents a bushel on your wheat
going out. He could take it out a few miles, bring it back in, pay
12 cents a bushel to get it back into the United States, immediately
whirl it about and repeat the process. Each time he would come off
3 cents to the better, except costs of transportation and inconvenience.

In the second place if you try any export promotion scheme for
50 cents advance on a product where you have only 42 cents tariff
on it, you are going to draw into the United States wheat from
Canada and from other countries, and will be giving the foreign units
the benefit of an operation which is carried on at the expense of the
United States. In other words, you can not operate any of these ex-
port promotion schemes, whether it be one plan or another, for a rise
higher than that which is implied by the tariff, without inviting
from Mexico or Canada or some other country wheat or other prod-
ucts handled in untagged units to participate in the same price
benefits,

Mr. Kixcueroe. You would also have to take out of the Treasury
nough to pay the difference ?

Mr. Stewart. It would be an imposition upon Americans.

Mr. AsweLL. Mr. Taber said the plan would be to put a metal tag
on 1t when it comes in and keep it tagged all the time. So that plan
you have outlined would not work.

Mr. Stewart. I made an exception in the case of cotton.
~ Mr. Aswerr. On anything—if you put a tag on it, you can not
ring it in and take it out again.