AGRICULTURAL RELIEF 
365 
Mr. Kincueroe. Of course, they are negotiable. What do you 
think, Doctor, would be the real market value of those? . 
Mr. Stewart. The latest word which I have from Sweden was a 
letter dated December 15, 1927, indicating that the grain-import 
certificates had been par most of the time. The writer was T. O. 
Klath, our commercial attaché at Stockholm. My recollection is that 
he said they had been above par part of the time. 
Mr. KincHELOE. Why is that? 
Mr. Stewart. That is surprising and it is a peculiar feature in 
Swedish practice which would not apply here. 
Mr. KincaELOE. What I mean is at par—a hundred cents—I mean 
vou have a debenture; you are an exporter and I am a big importer. 
Why should I pay you as much as a hundred cents for that deben- 
ture; because, if I am going to do that. I might as well just go on 
and pay 100 cents into the customshouse. 
Mr. Stewarr. An importer will buy a draft; will buy American 
exchange if abroad. If he can get his debentures from approxi- 
mately the same source, and if there is no more risk involved during 
the time the debentures are in his possession until he can dispose of 
them in lieu of duty. then he will take debentures readily. Under 
those circumstances it would require a discount of no more than a 
couple of dollars a thousand. 
Mr. KincuELOE. I am going to pay a hundred cents for it. There 
is no inducement to take it. 
Mr. Stewart. I am not wishing to contend that he would. I am 
reporting the fact stated in the Swedish letter. It was a surprise 
to me. 
Mr. KixcueroE. When you said “ par ” a while ago. in speaking of 
the sale of these debentures in America, you meant par less the dis- 
zount for handling them ? 
Mr. Stewart. I should have said approximately par. That word 
“approximately ” I would be glad to analyze with you. 
Mr. KiNncHELOE. You did not mean a hundred cents on the dollar 
when you said “ par”? 
Mr. AswerL. He said at a premium. 
Mr. Jones. He said at a premium because of the peculiar provi- 
sions of that law. 
Mr. Stewart. There is a redemption feature in Sweden which is 
not provided in the United States which makes the certificates some- 
'imes stand above par. 
Mr. AsweLL. You said “above premium ” part of the time. did 
vou not? 
Mr. Stewart. Yes; but that feature would not be apropos to the 
discussion here, 
Mr. KincuEeLoE. I was wanting to get your opinion whether there 
youd not be a glut on the market and probably be a great deal less 
than par. 
Mr. Stewart. You have to make a distinction between what the 
exporter would get for his debenture and what the importer would 
pay for it. 
Mr. KincHELOE. Absolutely. 
Mr. Stewart. If a middleman has to intervene there will be some 
brokerage. There are some vorts 1n the United States with respect