AGRICULTURAL RELIEF

485
and that the wheat has got to come in over the tariff wall. That will
increase the American price to the consumer on that account 42 cents.

Mr. KincHELOE. That is fundamental; I can see that.

Mr. Caverno. Forty-two cents is not only the price it would bring,
but it represents the artificial scale of American living, which makes
it just for the people earning and living on that level to pay.

Mr. KincHELOE. You have not told me why you are going to pay
$1.26 for the 200,000,000 bushels surplus when they take it off the
market.

Mr. CaveErNo. Every man who sells a bushel of wheat knows when
this operation is carried on he is going to have 15 cents taken out of
the 42.

Mr. KincHELOE. How do you know he is going to know that 15
cents is going to be taken off?

Mr. CavernNo. That is what the board is going to do.

Mr. KincEELOE. How do you know it is going to be that much?

Mr. CaverNo. I say under our present crop and our present
export.

Mr. KiNcHELOE. I am putting it on the basis of 800,000,000 bushels.

Mr. Caverno. Exactly.

Mr. KincaHELOE. How do your arrive at the 15 cents?

Mr. CaverNo. Because it takes that to finance it.

Mr. KincBELOE. How do you know it does?

Mr. CavernNo. Because everybody is using these figures.

Mr. KincHELOE. I am not talking about everybody’s theories; I
am talking about facts. Of course, there is more theory around this
table than anywhere in the world. Take your lead pencil and figure
how much loss there would be in buying 200,000,000 bushels at 42
cents above the world price. I do not think there is anybody living
who could tell within 4 or 5 cents a bushel what this equalization fee
is going to be. I think there are a thousand elements that enter into
that, and when anybody comes around and tells me in advance how
it is going to be, I would like to have them demonstrate it. A
moment ago you said 26 cents, and I have not found out how you
are going to get 26 cents. Here is what I have in my mind. I am

going to state my own position, I can not get it from you. I imagine
when this board goes to buy 200,000,000 bushels surplus and take it
off the market they are going to buy at the world price.

Mr. CaverNo. They are not; if they do, the bill fails. ;

Mr. KiNncHELOE. Then there is not anything in this bill that says
they are not going to buy at the world price.

Mr. Caverno. Did you not vote for the McNary-Haugen bill?

Mr. KINCHELOE. Yes.

Mr. Caverno. Then what were you voting for? That is the very
purpose of the bill.

Mr. KiNcHELOE. Perhaps I was not voting for anything, but I was
hoping it might benefit the farmer.

Mr. Caverno. I thought vou knew what the McNary-Haugen bill
was for.

Mr. KiNcHELOE. I am trying to get some information from you,
and I am frank to say I have not got any at all. If you will tell me
how and under what provision of this bill this board is going to pay
$1.26 a bushel for that wheat, for the 200,000,000 bushels it is going to
take off the market, and that the farmer is going to pay 15 cents a