Evening star., 1926-05-27
Good for England? Yes.


Tuesday, Senator Watson Of Indiana
cited Sir Josiah Stamp. the eminent
British economist, in support Of the
McNary- Hausen theory cf relief for
agriculture. Vice President Dawes
had Interested Sir Josiah ia the
American farm problem, aud the
statements quoted by Senator Wat
son were from a communication ad-
dressed to the Vice President.
The revised McNary- Hsugen theory
was embodied In the Haugen bill.
which recently failed Of passage in
The House, but which is stu before
the senate In slightly modified form
at the instance OF Senator Mcisary.
The Hausen bill, as 1t was vCted on
in the House, provided ns cis-lery in
tended TO take care of crop surpiuses
by selling them abroad at a loss, the
loss 60 be made up in the early years
by a direct subsidy from the United
states Treasury and later by the de-
vice of an equa liza tion fee to be
levied upon all producers OF any
given commodity.
Assuming. for sake of iliustretiun,
that these crop surpluses were 10 be
sold in England. we have a prospect
which might well appeal ia arvrabi! to
any british economist. TO begin
with, the primary purpose of the
project would be to increase the
price Of foodstuffs in this country
above the normal supply -and-de
maj nd level. TO accomplish this, an.
nual surpluses would be taken off the
American market and sold abroad for
whatever they would fetch. The ex-
porting agency would, it is expected,
receive less than 1t had paid for the
exported commodities. Until such
time as the equa liza tion came into
effect. after a period Of years, these
losses would be paid out Of the Fed
era subsidy
From the interest point Of the non
farming American public it's taxes
would be increa sed in order thst the
prices it had to pay for fOodstuifs
might be increased. Objectionable
enough, II 1t ended there. But il
would not end there. Dumping Of
American surpluses In Britaia tfor
purpose OF illustra tom would tend
to bring down the price Of all food
stuffs there, with the inevitable re-
suit that the same device which gave
the American people an artificially
high cost Of living would give the
British people artificislly low living
costs.
And the vicious circle thus set In
motion would keep right on swing
ing. The artifcially low cost Of liv-
ing would enab British industry to
keep wages at an artinciany low
level and enable them to offer Brit
ish goods in the world markets at
artificially low prices. In the world
markets they would meet American
goods which had to be offered at ar
tificiaiIy high prices made necessary
costs Of living. The American Goods.
OF course, could not be sold; Ameri-
can factories would have to curtail
production, and American workers
would lose part Of their employment.
Consequently, they would have to
curtail their consumption OF food
stuffs. 70 that the next year there
would be a still larger surplus to be
sold to England. to enable England
still further to cripple American in
dustry. and so on and on. In the
end the enterprise would break down
under it's accumula ting burden, and
everybody in this country, including
the farmer, would share in the re-
sultan mt hardships.
II ia not surprising that Sir Josiah
Stamp. eminent British economist,
thinks the scheme an excellent enc,
but there Is an imposing numbar Of
eminent American economists who
are una bic to see eve TO eve with aim.
---------S~049-S--
1rhA North Pole hoyiu~ h>An raa;s