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AGRICULTURAL RELIEF 
369 
before the International Economic Conference in Geneva in May last, 
which have not made agreements that they will not impose export 
bounties. But if you use the export-debenture method you come at 
it in a different way; it becomes a more domestic proposition: more 
a matter of adjusting our own tariff system. Under those circum- 
stances the probability of foreign complication is markedly reduced. 
I am saying that not merely on the basis of my own judgment. 1 
submitted the matter to Prof. Allyn A. Young, who attended the 
[nternational Economic Conference in Genera. and had from him a 
statement to the effect that in his opinion this method is less likely 
to lead to_ international complications than dumping would do. 
Professor Young, as you know, is connected with Harvard Uni- 
versity. 
Mr. Kercuay. At that point, suppose the debenture exceeded our 
lariff rate. Then the principle you have just announced would not 
apply: but so long as you kept your debentures beneath the tariff 
rate that principle could apply? 
Mr. Stewart. To make a debenture rate exceed the tariff rate on 
any product with a possible exception of cotton—which T would 
wish to discuss later—to make a debenture rate exceed the tariff 
rate 1s to invite trouble. 
Mr. Jones. That would simply reduce the value of the debenture. 
You could not give it a greater value without making it redeemable 
by the Treasury ? 
Mr. Stewart. It would invite trouble, Mr. Jones, in two ways. 
In the first place, let us assume that the Government would say to a 
man, * We will give you 50 cents a bushel on your wheat as it goes 
out of the United States.” I believe 50 cents was the figure which 
your chairman used yesterday—50 cents a bushel on your wheat 
going out. He could take it out a few miles, bring it back in, pay 
12 cents a bushel to get it back into the United States, immediately 
whirl it about and repeat the process. Each time he would come off 
3 cents to the better, except costs of transportation and inconvenience. 
In the second place if you try any export promotion scheme for 
50 cents advance on a product where you have only 42 cents tariff 
on it, you are going to draw into the United States wheat from 
Canada and from other countries, and will be giving the foreign units 
the benefit of an operation which is carried on at the expense of the 
United States. In other words, you can not operate any of these ex- 
port promotion schemes, whether it be one plan or another, for a rise 
higher than that which is implied by the tariff, without inviting 
from Mexico or Canada or some other country wheat or other prod- 
ucts handled in untagged units to participate in the same price 
benefits, 
Mr. Kixcueroe. You would also have to take out of the Treasury 
nough to pay the difference ? 
Mr. Stewart. It would be an imposition upon Americans. 
Mr. AsweLL. Mr. Taber said the plan would be to put a metal tag 
on 1t when it comes in and keep it tagged all the time. So that plan 
you have outlined would not work. 
Mr. Stewart. I made an exception in the case of cotton. 
~ Mr. Aswerr. On anything—if you put a tag on it, you can not 
ring it in and take it out again.