Evening star., 1928-11-17
TEXT OF COOLIDGE SPEECH

manent tariff measure of 1922. The
passage of these laws at once restored
the sheep industry and kept the grea'
dairy industry in a prosperous condi-
ton. In framing both these measures
the advice of the representatives OF the
farm organizations was not only Sougnt
but the rates of duty on agricultural
products were fixed in accordance with
their recommendations. OF course. II
the country adopts the policy OF pro-
lection 1t has to be applied not only 10
the things the individual sells, but 70
the things he buys. This general RUE
however, was almost completely sus-
pended in the case of agriculture. Prac-
tically everything that the farmer raises
is well protected. Practically everything
he buys for the purpose of engaging In
the business of farming comes in free
of duty.
"Of course food and clothing pay a
duty because they are made or raw
farm products. but they are not pc
culiar to the business OF farming like
barbed wire. cotton gins, binding ttwlne'
threShing machines, moving machines,
plowS and harrows. 1t is true that
there is duty of $1.121A on a ton OF
pig iron, but there is duty OF $l4
ton on wheat and $240 ton on butter.
1T has been asserted that If we re-
moved our duties on imports, foreign
manufacturers would sell more goods
in this country, which would en-
able them to purchase more OF our a9-
ricultural products About IS per cent
of our ;mportations now come in free
of duty. We afford the largest Tree
market in the world, with the possible
exception of Great Britain. Between 10
and 20 per cent of the balance are
farm products which are protected.
Tariff Removal Unsound.
Suppose we removed the tariff on
some of the balance. 1t is assumed in
that case that foreign countries would
send in imports If that were done,
our own factories would close and our
people would be out of employment.
Such result has never helped, but al
ways injured agriculture. II this did
not occur, it would mean that our wages
and profits must be reduced to meet
foreign competition, in which case there
would be no imports and, according to
the argument, no additional sales OF
farm produce abroad We should only
have distress and living conditions
much below what they are now in our
industries. This has never benenteo
agriculture Whether these results oc-
Cured in whole or in part. instead OF
being benefited agriculture would be
injured by losing some OF the best OF It's
important domestic market.
I'm addition to this, it does not fol-
low at all that if foreigners secured
money by selling commodities in our
market they would spend it here in cor
responding purchases. They would buy
where they can buy the cheapest. we
know that there are other countries
which have low-priced land and low
priced labor, which makes 1t possible
we can. If additional purchases were
made, every economic principle COM
pels us to suppose they would be made
in those regions.
Another agency that was brought
into action to assist agriculture at this
juncture was the War Finance Corpo-
ration. It carried financial help dl-
rectly to agriculture, arranging flnanc-
ing for approximately 100000 bales OF
cotton and going to the relief OF the
livestock industry. At one time its
loans reached nearly $300,000,000. The
revival of agriculture is told in the
complete liquidation of these loans with
almost no loss. This action saved our
animal industry. Another method of
relief was the Agricultural Credit Cor
poration, formed to furnish capital for
diversification in the North Dakota re-
gion. It has been doing much to re-
stock that locality with cattle. sheep
and hogs with a most beneficial effect.
Loan Rates Are Lowered.
ITO furnish longtime credit for rais-
ing and marketing crops and live stock,
the Government advanced $60,00O.O0O
to supply the capital for IL intermedi-
b. koy he
adapted to the needs of cooperative
marketing associations Their total re-
discounts and advances up to last Oc-
tober amounted to over $458,0O0,OO
made at reasonable rates, which have
also tended to make rates generally
reasonable for agriculture. The real es-
tate mortgage requirements OF agrlcul-
ture have been provided for by the
Federal and joint stock land banks.
which have made more than 100000
loans on farm lands, aggregating more
than 81, 100000. These are made at
rates lower than the farmers Of any
other country enjoy on any extended
scale. 1t furnishes capital at price
lower than it can be secured for in
dustry.
Because of the large sums available
at these banks, other .money-lending
institutions have been obliged to reduce
their rates to about the same point.
Without the benefit of this law, farm
loans would probably range nearly 3
per cent above what they now are. The
main reason for these low rates Is be-
cause the Federal Government made
the bonds of these banks free from all
taxation. The direct benefit which ac-
crues to the borrowers from these baAks,
because all national State and local
kn@ fllnirs
roWings, is probably not less than $780,
OOO. 600 a wear. When it is considered
that the same benefits extned only in
somewhat less degree to those who bor-
row from other sources, the advantage
to agriculture derived from our Federal
farm loan system reaches Stupendous
sum. It is benefit the like of which
no government anywhere on earth ever
before bestowed upon an industry.
"Your organization has seen the
growth and development OF the CO.
operative association. The National
Government first undertook to assist
this movement by the passage OF the
Capper- -Volstead act, and 1t has more
recently passed another important la"
setting up a division of cooperative
marketing in the Department of Agri-
culture equipped with men and money
to stimulate and develop this method OF
disposing of farm produce. The grain
exchanges and the packing industries
have been brought under Government
supervision and control. About $4,000
600 has recently been added to the ap-
preparation for agricultural research
Cotton standards have been adopted
Agriculture has been protected from
poor seed An investigation is under
way to find new uses for cotton. Au
thorization has been granted for licens-
ing agricultural warehouses.
Tax Reduction Effected.
"A farmer has been put on the Fed
eral Reserve Board, former master OF
the National Grange has been placed )n
the Tariff Board, and finally there have
been four sweeping reductions in Fed
eral taxation which I am told BY the