124

AGRICULTURAL RELIEF
a tariff of 42 cents, and freight 8 cents on wheat from Canada to Min-
neapolis the price might be raised 50 cents as up to the level of the
tariff wall. fe have a tariff and freight of 50 cents a bushel. Now,
it does not require a sharp pencil to figure out the equalization fee if
you have 800,000,000 bushels to market. We are familiar with the
prices at Winnipeg. We buy wheat from Canada. Canada is receiv-
ing now a premium on wheat because of the 50-cent pool of about 10
cents. But to be conservative, we will say the board would advance
the price only 50 cents. The purpose of the bill is to give the domestic
producers the benefit of the tariff, and that is the very thing provided
“1 the bill. So we advance the price 50 cents a bushel. 1 think all
agree that if they get 50 cents a bushel extra price on 600,000,000
bushels that would give $300,000,000. If only 100,000,000 bushels
are exported the profit would be on the 700,000,000 bushels $350,-
000,000. The 100,000,000 bushels is sold at the world price, at no
profit or less. There you have the profit. If 200,000,000 bushels
exported of the 800,000,000 less the profit would be $300,000,000,
or 3714 cents a bushel profit. If only 100,000,000 bushels are ex-
ported you have 433 cents a bushel profit.

Mr. Taner. It is not difficult at all, if you go on the theory of auto-
matic collections and no evasions. Unfortunately, Mr. Chairman, I
have been acquainted with farmers in almost every State of the
Union, and if you have a notion there is going to be automatic-collec-
tion of the equalization fee you are due for a mighty rude awakening:

The Cuamrmax. I think many underestimates the intelligence of
the farmer. I think they will be benefited by the equalization fee; if
so, they will not object to its benefits.

Mr. Taper. Mr. Chairman. I do not want to argue the equaliza-
tion fee.

The Carman. I have confidence in the American farmer.

Mr. TaBer. So have I.

The Crmamrman. I have confidence in our Government, but I also
believe it is necessary in writing a bill to specify as far as possible
what is to be expected.

Mr. Jones. May I ask the chairman in that connection if in his
figures he is taking into consideration the 75,000,000 or 80,000,000
bushels of wheat which the farmer sold as feed and the 87,000,000
bushels which the Department of Commerce estimates is used for

eed ¢

The Cramman. There is always a carry-over, I understand. But
my figures are based on 800,000,000 bushels in excess of the carry-
over and wheat used for seed and food.

Mr. Jones. If you assume he does not use any for seed or feed.
vou eliminate that.

The Crarrman. Eliminate that and you would have out of a 900,-
000,000 crop less than 100,000,000 carry-over, seed and feed, 800,
000,000 to sell. We all appreciate the larger the crop the larger the
export, and the larger the equalization fee and the less the profit.
Everybody understands that.
os Jom Mr. Chairman, just one word in conclusion. I want

ank the committee for their courtesy; and I want to make it
very clear that I have not intended to make any statement that has
any reflection on any member of this committee or on any person