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