The New York herald., 1922-05-29
MONDAY. MAY 20, 1922.
Wheat and the Tariff.

American wheat farmers always
have a much larger crop than the
people of the United States can con-
sumo. 1t would be very poor wheat
crop that did not yield 200,OO0,O00
bushels more than can be marketed
at home. More generally the surplus
above our own requirements will be
much higher than 200,000,000 bush
els. Not infrequently 1t will be more
than 30o,O0O,0 900 bushels. Rarely IL
viii! top 0O,000,0O bushels.
If American wheat could not be
sold abroad in many cargoes any crop
much bigger than famine crop
would be for the American farmer
calamity crop. The reason for this
is that the foreign demand--the ex-
port wheat-sets the price pace for
the domestic consumer to pay.
Foreign wheat has come into this
market for years not only to pay for
American manufactures wanted by
the country shipping wheat to us but
to pay even for American agricul
tural products other than wheat
wanted by such countries.
A year ago, however, Congress en-
acted the emergency agricultural
tariff to restrain foreign wheat and
other foreign farm products from
coming into this country and selling
in our markets against the wheat
and other products of the American
farmer. The emergency tariff on
wheat was fixed at 80 cents a bushel,
and it is stiff hurdle for foreign
wheat to get over.
But obviously IL an Argentine
wheat exporter has to sell abroad
100000 bushels of wheat which he
would prefer to sell in the United
States to pay for cotton goods and
other commodities that Argentina
would like to buy here he is not
going to lie down and quit with the
export sale OF his wheat just because
our emergency tariff bars his wheat
out of the American market. II he
cannot sell his export wheat here he
will sell il somewhere else.
Perhaps the Argentine exporter
will sell it in England, perhaps in
France, perhaps in Germany--but he
will sell il. And when he does sell
il in European market where our
export wheat also is trying to sell he
still will be selling his wheat against
the wheat of our farmers, in spite OF
the emergency tariff wall set up to
protect the American wheat farmer
from competition by the foreign
wheat farmer.
bushels of export wheat in England
or France or Germany the Argentine
shipper stops the sale In England or
France or Germany Of 100000
bushels of American wheat that our
farmers needed to sell there II would
seem to he an even break so far as
concerns American trade and Argen-
tine trade.
But not quite. The emergency
tariff may have lost a 100000
bushel sale abroad for the American
farmer while gaining him a 10000
600 bushel sale at home by keeping
out the Argentine wheat, and this
may look to be as broad as IL Is long
for the American farmer.
Yet IL the Argentine wheat, In
stead OF selling here and having the
proceeds go into the purchase Of
American cotton goods and other
manufactures, sells In England and
the proceeds go into the purchase OF
English cotton goods and other man
ufactures. that Is not so broad as u
IS long for this country. The Ameri-
can farmer hasn't gained anything
and he hasn't lost rsthing In the
shift; but the couztry has lost the
trade in cotton goods and other man
ufactures.
Perhaps this can explain 10 our
emergency tarln makers Of a year
ago and TO cur Fordney-McCumber
tariff makers OF today why our
wheat exports for the week ended
May 25 were 5.741, 900 bushels. while
last year, before the emergency tariff
had got down 10 real business. our
wheat exports we're 100000 bush
els: why for the week ending May
Is this year our wheat exports were
100000 bushels. while last year
they we're 100000 bushels; why
for the week ending April q our
wheat exports we're 3,7O0,O00 bushels,
while last year they were 10,4oo, 900
bushels.
Perhaps II can explain why for
every single week from April 6 to