724

AGRICULTURAL RELIEF

$339,435,000, at a cost to the Government of $1,560,000, or a net gain
after deducting the debentures of only $337,875,000, in contrast to
the $1,088,144,800 under the equalization plan. - In other words;
under the debenture plan the producers would have received less
than one-third as much as under the equalization plan.
Butter from Department of Agriculture, year ended June 30
POUNDS

5 %5.
me
2

Production |

2, 000, 000, 000
2, 000, 000, 000
2 066, 766, 000

Exports!

425, C00
-, 384, 000
3, 180, 000
= 046. 000

Imports!

29, 466, 000
7,189, 000
6, 440, 000
10, 710, 000

Net Net
imports exports

24,041,000 1ocooemno----271,195,000

1,160,000 --cveeenennn
5. 664,000 oo meeeo-Profits

 under the equalization plan
PRICES

a...
i,
927 __
1927

Total for
vears.....

New
York

no

London
Danish)

($0. “17
(41
34
202

Copenhagen


BO. £07
42°
. 36
26H

Tarift

0. 06
.0€
12

Freight

$0. 01
01
01

Minus
aqualization
 fee

J. 000037
"00016

Net profit
per pound

30. 061
, 061963
052

Total
profit

122, 000, 000
123, 925, 910
107. 471. 832

253. 397, 742

1 Not available.

Assuming that a debentured rate on butter were in force under the
debenture plan equal to one-half the tariff the net gain or profits
under the debenture plan would be as follows:

Y ear

BB em—————E—
1997 ee mmm—————

Production

Pounds
2, 000, 000, 000
2, 0600, 000, 000
2, 066, 766, 000

Exports

Pounds
3, 425, 000
* 384, 000
5, 280, 000
a 046. GON

Jain of one-1alf
 of tariff
on whole
sroduction

$80, 000, 000
80, 000, 000
24. 005. 960

284. 005. 960

Cost to
Yovernment
 in
jebentures
on exports

5217, 000
415, 460
216. |&0N

949. 260

Net gain

$79, 783, 000
79, 584, 540
192 2R9. 1A0

929 756. 700

Total for three vears._._._.--.
a ——————————
1 Not available.

If the McNary-Haugen bill had been in operation in 1924, the
butter producer would have received the Copenhagen price of $0.397
plus the tariff of 8 cents and transportation charges of approximately
1 cent, or a total of $0.487, instead of the New York price of $0.426,
a gain of $0.061 per pound, or a total profit of $122,000,000. Imports
were in excess of exports for the year 1924, hence no equalization fee.
All that would have been necessary to insure the advance would have
heen to reculate the importations as provided in the bill.