348 
AGRICULTURAL RELIEF 
Mr. KincaeroE. The debenture would be of less benefit to tobacco 
than any other commodity. 
Mr. Goss. It all depends on the rate of debenture you would estab- 
lish, of course. 
Mr. KincaeLog. There is this circumstance—I want to develop 
that a little further—the dark-tobacco districts of west Tennessee, 
western Kentucky, and southern Indiana export 80 per cent of their 
tobacco per se. Itisnota question of surplus. They have to depend 
on foreign markets for 80 per cent of the sale of that tobacco. 1 was 
just wondering how that was going to help the tobacco grower down 
there when 80 per cent of it is exported. 
Mr. Goss. If 80 per cent of tobacco is exported and the producer 
gets 10 per cent ad valorem in the form of export debentures, if that 
represents the difference in the cost of production at home and abroad, 
that helps him by just that much; and the result would be a general 
rise in the price level of 10 per cent. 
Mr. Kincreroe. That is the whole thing. That is what they say 
about the tariff. The tariff ought to be at such a rate that it will 
equalize the cost of production at home and abroad: but it don’t 
do it. 
Mr. Goss. Where we have not an exportable surplus it, does. This 
is supplemental to the tariff, because the tariff does not work where 
we have an exportable surplus; and here is the opposite side of the 
tariff which will work if we have an exportable surplus. That is 
what we are trying to do—to establish a well-rounded tariff policy 
which will lie ‘equitably upon all industrv in America. including 
agriculture. 
Mr. KincueLor. Let us take an example. Here is a little tobacco 
tenant, say, in Tennessee. He has got a little patch of tobacco, 
probably producing 2,000 or 3,000 pounds. There 1s no competition 
in the sale of tobacco that is sold down there, because the big tobacco 
trusts monopolize it. It is not a question of supply and demand as to 
the price this poor little tenant gets. It has been shown several times 
in my district where they have put the same basket of tobacco on 
the floor and sold it three times the same day, and it brought a 
different price every time. The American Tobacco Co. and the 
Imperial and the Regie and the other people, and all of them have 
got a monopoly on tobacco. There is not any competition on the 
floors when you sell it down there, and I was wondering how this 
debenture of 10 per cent ic going to help that tobacco grower down 
there when he has to take whatever the trust says and not its market 
value—how this debenture was going to save him. 
_— Gross. It would raise the general level of prices on tobacco 
Mr. Kincueroe. How wo i ise it, in vi 
the Tobacco Trust buys it vould it ase ih In view of the fact that 
Mr. Goss. I say the general level. Now, if the growers of tobacco 
are not equipped to take advantage of that raise bec there 1 
trust which governs the local market th i 1 ion which 
ill Bly, Carn Tooth er, , there is no egislation which 
that. T which will curb that trust from doing 
Mr. 
a Bor pe 2 ok 
poration with a revolving fund to h r a Government expert av. 
o handle just such cases. and which