Milford chronicle., 1927-09-09
The EXPORT DEBENTURE
And The FARMERS DOLLAR
Continued from page nine)


cerned.
The Export Debenture Plan
The Export Debenture idea is a
straightforward and honest attempt
to bring tariff benefits to agricultur-
al commodities of which there is an
exportable surplus. All students ol
economics agree that the tariff can
not benefit favorably the price OF a
commodity of which there is an eX-
portable surplus unless there is.
monopoly or organized control OF the
product. Consequently, the tariff
schedule itself is not sufficient to
nrOtect agriculture. We find wise
statesmen, not only in America Dut
in other countries, recognizing TINS
fact. Alexander Hamilton recon-
mended what we today call "the EX-
mort Debenture idea" A similar plan
has been used in Germany to pro-
feet the German farmer. 1t has re-
Gently been put in operation in Swe-
den. and other nations have been
able by similar devices to atfect 1aV-
orably the price of farm products
This plan would provide that
when a cooperative association or
general agricultural exporter would
shin abroad commodities named by
law. they would receive an export
debenture certificate, which would
be negotiable and accepted by the
government at par for the payment
of import tariff duties. Our laws re
uuire the importer to pay duties IN
American money. Consequently, II IS
certain that there would be a sutf1-
cient market for all debentures to
guarantee that they would bring par
less interest and brokerage charges.
Proof of this is found in the fact
that last year import duties amount
ed to $3.50, 100000. Under the plan
advocated by the National Grange
there would have been issued last
wear debenture certificates Of not
more than $15O,O00,000 value. NO
plan has been proposed that would
use more than approximately one
third of last years tariff income,
thus guaranteeing a constant market
at par.
How 1t Works
The Grange plan provides that to
start. one-half of the tariff rates
should be made applicable for the
debenture value. For example, the
nresent tariff on wheat is AZ cents
A co-operative association in Kansas
ships wheat to Europe. Liverpool
largely determines the world price
less freight costs to reach that mar
ket. The exporter would secure the
Liverpool price, plus the Export De-
benture value, which in this case
would be 21 cents, or in other WORDS
he and the American millers, If they
wanted to secure wheat, would bio
the world price plus the value OF the
Export Debenture certificate. Auto
matically and instantly this would
have a tendency to affect favorably
the price of farm products and TINS
is one result toward which the
Grange is striving.
Thus we see that all that is nee
essary would be for the exporter to
furnish proof of the amount export
ed and then the same authorities
that provided his manifest and clear
ance papers would issue the Export
Debenture certificate of the value
determined by law multiplied by the
number of units exported. These GER
tiicates automatically would have a
monetary cash value as above lnd1-
Gated.
Other Alternatives
Many earnest people are opposed
to irving to bring the farmer under
the tariff system and they favor
some method that would reduce ad-
vantages enjoyed by other groups OF
society. 1t might be possible to re-
duce tariff rates on all manufacture
ed goods. We have no certainty that
this would be of great benefit to ag-
riculture, yet it might help us by re-
ducing prices of the goods we Duy
This. however, would mean a bitter
struggle with the manufacturers ol
the nation and should be avoided.
We might try to reduce wages by
lowering tariffs, by repeating some
legislation and opening the HOOD
gates of immigration and let in mil
lions of workers from Europe. rms
is unthinkable because it would
mean a struggle with organized Ia
bor and. more serious than this, un-
restricted immigration would ruin
America.
We might repeal the Federal Re
serve Act, our railroad Legislation
and similar laws, in the hope that
freight rates and interest charges
would decline; but again this would
bring chaos and uncertain readjust-
ments. In addition, it is unthinkable,
it is impossible of consummat1on, 1t
is unsound. The Grange does not
preach a destructive gospel. We fight
for a square deal. Our program is
to build up agriculture, not to seek
to destroy those in any other walk
of life.
A Sure Way
All must admit that agriculture
will never make progress with de-
structive program. We then must
seek a constructive remedy to cor
rect inequalities, and this brings us
back to the Export Debenture idea,
because of it's simplicity, no salaries
are added, no price fixing legislation
is suggested, no appropriation re-
uuired but less money will be PAID
into the United States treasury. Our
farm prices are raised and agricul-
ture is stabilized and benefited, with
out injuring an Individual in Amer
lea.
Awake Nights
We have come to a time when
somebody must lie awake nights
studying farm problems. Other
groups have men working day and