AGRICULTURAL RELIEF 
375 
Mr. Hope. How long has their tariff been in operation? 
Mr. Stewart. The edicts which put the import certificate system 
into effect were issued in 1850, according to a statement by Dr. 
Josef Grunzel, who is the author of economic protectionism, from 
which I have excerpts with me, which I would be glad to place in 
the record, if they would be of service to any members of the com- 
mittee. 
Mr. Crarke. I think that would be instructive, for the reason that 
it would give us some little idea of what is being done abroad. 
(The excerpts from Dr. Josef Grunzel referred to and submitted 
by Professor Stewart are included in the appendix.) 
Mr. Fort. Professor Stewart, may I ask you a question on these 
other plans? Have those plans been adopted in countries that were 
producing a surplus of commodities to which the export debenture 
applied—normal surplus—or were they applied for the purpose of 
taking care of the surplus that might result from the stimulation of 
home production for home use? 
Mr. Stewart. The answer to your question is yes and no. In the 
irst place, they have been applied in countries which are upon a net 
deficit basis, taking the countries as a whole. Nevertheless, in these 
countries there are different provinces. In the case of Germany, for 
example, the provinces of the northeast of Germany produce ex- 
portable surpluses of rye, wheat, barley. spelt, oxts, legumes, rape 
seed, etc., which have been made subject to the application of this 
method. 
Now, then, their natural domestic market has been in their indus- 
trial southwest, if you please. They had their choice between using 
rail transportation to get their products to their own remote south- 
western industrial markets, or sending their products out over the 
Baltic Sea, North Sea, Rhine River route, because they desired the 
privilege of getting those northeastern province surpluses into the 
southwest provinces without paying duties. 
A provision was made whereby the Bundesrat was given the power 
to permit the use of Einfuhrscheine not only in the case of the same 
products coming back, but also in the case of cocoa, petroleum, and a 
considerable list of other commodities upon which the tariff had 
been levied primarily for a revenue purpose, that is to say, products 
which were not produced in Germany. That existed for a portion 
of the time, and it was that experience which I have used as a basis 
for the somewhat more generalized application which I have sue- 
gested for this country. 
Mr. Fort. That was a peculiar condition due to the fact that Ger- 
many is not fixed as we are with the free trade between the States. 
They did not have free trade between their Provinces. 
Mr. Stewart. I think it was more of a transportation—— 
Mr. Fort. You also referred to France. which never did produce 
food enough for its own needs? 
Mr. Stewart. Taking the country as a whole, no. 
Mr. Fort. Therefore, in the effort to stimulate production in 
France, they put on this export plan so that, in the event their farm- 
ors did produce surplus, they would be protected: is not that the 
act ? 
R6160—28—SER E, PT 5—6