AGRICULTURAL RELIEF 
Mr. KercHaM. Your people would not be averse to getting it from 
the Treasury, would they? 
Mr. Moran. I think they would. They are a proud people. 
Mr. KiNncHELOE. If that money were coming out of the Federal 
Treasury they would plow up their gardens and put all their fields 
in tobacco and the increase in production would make it fall of its 
own weight? 
Mr. Morgan. That is my opinion. 
Mr. KiNcHELOE. If you increase the price on any product vou will 
see the production growing by leaps and bounds. unless there is 
some penalty on the individuals. 
Mr. KercaaM. Do you not believe that would be handled in the 
same way and same theory that we proceeded under in the MeNary- 
Haugen bill, namely, if we cut in two the amount of export debenture, 
for instance, would not that have the same effect as doubling the 
amount of the equalization fee? 
Mr. Morca~N. You mean under the debenture bill? 
Mr. KErcaaM. Yes, sir. Would not the effect of it upon the grower 
back there be just the same? 
Mr. MorcaN. We have studied the debenture bill and gotten all 
the literature we can on it, but we are a little afraid of it. We have 
seen the application of it in a roundabout way with the British 
Government. The British Government about two years ago put a 
tariff on tobacco of $2.13 a pound, but stated that colonial tobacco 
could come into England for $1.64 a pound, which gave a preferential 
duty against the American tobacco grower of 49 cents a pound. 
As a result of that, they went up into Canada and stressed the 
increased growing of tobacco. The vear before last the crop was 
28,000,000 pounds, and this last year they took men from western 
Kentucky, many of them, dozens of them, to Canada, and started 
them in the tobacco-growing business, and they increased that crop 
to 45,000,000 pounds. But those growers are wandering back to 
Kentucky. The 49 cents a pound went into the pockets of the buyers, 
and none of it found its wav into the pockets of the growers. The 
average this year in Canada is only about 12 cents a pound, from what 
they tell me, and they were promised enormous prices. The buyer 
is getting the 49 cents per pound preferential duty this vear. 
Mr. KincHELOE. Could they have gotten it back if they were 
organized as you growers were? 
Mr. Morgan. Take that British trade, there are only relatively 
few buyers. The Imperial Tobacco Co. is the biggest one. There 
are others of importance—the Ross Tobacco Co., the Gallagher 
(Ltd.), and Noakes Carden and the Associated Cooperatives and 
others, but the Imperial Tobacco Co. largely predominates that 
market. If those growers in Canada were to ship their tobacco to 
England and then try to sell it, they would have to sell it to those 
same buyers that are right there in’ Canada. They have got their 
Tepresentatives right on the ground in Canada to buy their tobacco, 
and if they ship it to England they have got to sell it to those identical 
buyers. They have not got a chance in the world. 
Mr. JoNEs. Their difficulty up there in Canada is because of the 
buyer situation? 
Mr. Morcan. Yes: and how are they going to overcome it? 
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