Die Entwicklung der Weißgerberei

Export debenture plan (Pt. 5)

Bibliographic data

Monograph

Identifikator:: 883887894

URN:: urn:nbn:de:zbw-retromon-6560

Document type:: Monograph

Author:: Ebert, Georg

Title:: Die Entwicklung der Weißgerberei

Place of publication:: Leipzig

Publisher:: A. Deichert'sche Verlagsbuchhandlung

Year of publication:: 1913

Scope:: 1 Online-Ressource (XL, 408 Seiten)

Digitisation:: 2017

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: 2.Teil. Die Produktionsprinzipien

Collection:: Economics Books

422 AGRICULTURAL RELIEF If they also get the benefit of the 21 cents on the 600,000,000 bushels, which I assume they would, they would receive a total of $168,000,000, would they not? That would be the advantage to the wheat growers, $168,000,000. Now, take it under the plan to equalize the price; if you advance the price 50 cents a bushel and sell 600,000,000 bushels at 50 cents advance in price the profit would amount to $300,000.000; if you sell 700,000,000 1t would amount to $350,000,000. Under the debenture plan they would get 21 cents on the 800,000, 000 bushels or $168,000,000 at a cost to the Government of $42,000,000. The net profit to the farmer under the equalization fee would be $300,000,000, without any cost to the Government, instead of $168. 000,000 under the debenture plan. Now, are you of the opinion that the $168,000,000 is all they are entitled to or should they have $300,000,000% Mr. Taser. Whenever the chairman is through with his ques- tion—— The CrmarrmaN. I am through. Mr. Taser. I am going to answer it, because you have asked that question two or three times. Fortunately, you asked the question of Mr. Goss and of Professor Stewart, and we figured the result very carefully, as I knew you would ask me the question. I am going to answer it with the statement we prepared: The chairman presents the following proposition: Under the equalization fee the farmer’s price could be raised to 50 cents above that of the world markets, and the fee necessary to accomplish this would be 121% cents, leaving the farmer a net gain of 371}, cents. It was not my purpose to discuss the equalization fee, but since he has not understood the application of the debenture 1 will compare the results of the operation in order that it may be clear to all. In the first place, with a tariff of 42 cents it would be impossible to raise the price to 50 cents above that of the world markets with- out bringing in all the wheat from Canada. No plan for raising any price above world markets will work without a tariff, unless some other sort of tax or inhibitory provisions set up a wall at the border, such as can be set up in a limited degree on cotton. So we will have to revise the chairman’s figures and assume that the export corpora- tion would bid wheat up to 42 cents above the world market—the very limit. They would export 200,000,000 bushels at a loss of 42 cents, requiring an equalization fee of 1014 cents. This fee would be right if every bushel of wheat raised paid the fee and there was no cost of collection. Our misgivings in regard to the operation of the fee are due to the impossibility of collecting without evasion and excessive cost. The fee actually needed would be far greater than 10%4 cents, but for the sake of the illustration let us assume that there was no evasion and no gost of collection. Under the fee the Ameri- people would pay cents per bushel on 600,000,000 bushels or $252,000,000. If the evasions and cost of collections necessitated a 15-cent fee which is admittedly extremely very low, the farmer would receive but 27 cents per bushel, or $216,000,000. Under the export debenture plan if the board found the difference in cost of production to be 42 cents. the public would pay 42 cents per

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