Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-11-26
Editorial Comment
What i. the Expor. psbenture7
New England HomeStead1

(New England Homestead)
Whereas agriculture Is basic and
the continued agricultural depres-
sion is affecting the prosperity. not
only of the agricultural people, but
Of the entire nation; and whereas
our staple agricultural products are
in worldwide competition with like
products in other lands; and where
as such surplus products are not re-
ceiving the benefits of the protec-
ttive tariff, therefore, be 1t resolved:
That the national grange indorse an
export debenture plan for farm
products and recommend that legis-
lation be enacted by the next session
of Congress, making such plan oper-
alive beginning with the 1927 crop"
National Grange at Portland, No
vember 16, with but one dissenting
vote.l
The export debenture plan is
| largely the work OF Charles L..
Stewart, professor of economics at
the university of Illinois. He says
it is free from many of the objec-
lions urged to Haugen's equalization
fee. Heretofore the grange has OPP
posed the Haugen bill. After
| three-hour debate last week. it
favored export debentures.
National Master Taber said 1t is
| "the most important measure pass
ed by the grange in rs ye-~rs. 1t Of
fers the most advantages with the
| least dangers, In that 1t requires no
new machinery for operation and
can be discontinued as easily as a
tariff. 1t will bring the farmer un-
der protective system and give rea
sonable assurance that the benefits
paid will go to the farmer. 1t will
IN ~t ,,tt ,,,
ucts, especially wheat, corn, cotton
and dairy goods
Mr.. Taber said that the plan would
| not result in an appreciable advance
| in price to consumers. However,
| Stewart says with export de-
benture issued throughout the year
at the rate of 80 cents a bushel on
wheat, the result would be q COR
! responding increase in the price,
not only on $50 million bushels ex-
| ported, but also in the price OF 600
million bushels consumed without
| crossing our borders. The yearly
! use Of so million dollars worth of
debentures in the case Of wheat
would increase the total farm value
! of wheat about 240 million dollars"
In other words, every consumer of
| -four, grain and feed would have to
pay the advance.
The idea is to give the exporter a
non-interest bearing debenture for
! 80 cents for each bushel of wheat he
| exports. With this debentirfe he
can pay 80 cents of the duties upon
| other goods he imports. For in
! stance, suppose you export 100
| bushels of wheat, receiving q draw
| back, bounty or subsid" thereon in
| the form OF a debenture of $32.
| Suppose at the same time you i'm
port 266 2/S pounds of butter, upon
which the duty of 12c per pound
amounts to $50. You can pay
that duty with your debenture.
Thus you can import butter duty
| free with which to undersell do
nestle butter in our own market.
Or you could use your debenture in
the same way to get milk into this
! country duty free from Canada. In
word, the import duty on any
commodity may be paid with the
export bounty represented by a de-
| benture.
The bonus on wheat exports is de-
signed to make every domestic con-
sumer pay a correspondingly higher
| price for his -four, feed and grain
| Export debentures against corn, cot
| ton and dairy goods also aim at
making domestic consumers pay
more for those commodities in order
! that the surplus may be sold at a
less price to foreign consumers.
! BY using export debentures to pay
! duties on imports, the plan aims to
flood our domestic markets with still
more imports, to displace domestic
products and thus to depress the In
dustries which create the home mar
kets that consume most of all of the
produce of American farms.