Evening star., 1928-05-23

, In other words no farmer will be safe
in directing his planning upon his in-
dividual judgment, for should the re-
suit be stimulation of an increased
yield the board will be likely TO with
draw the support which encouraged the
surpluses and allow the prices Ito col
lapse under the weight of that artifi-
cially created excess. The annals OF
| the industrial and agricultural world
are replete with the cataStrophes that
have come In the wake of such at
tempted distortions Of one of the most
fundamental principles Of commercial
relations.
VI. Aid to our foreign agricultural
competitors.--This measure continues,
as did its predecessor to give substan-
tial aid to the foreign competitors OF
American agriculture and industry. 1t
continues the amazing proposal to sup
ply foreign workers with cheaper FOOD
than those of the United States, and
this at the expense of the American
farm industry. thereby encouraging
both the foreign peasant, whose produce
is not burdened with the costs OF any
equalization fees, and also affordlng
through reduced food prices the means
Of cutting the wage rates PAID by 1or-
elgn manufacturers. The latter Step
would promptly impair the prosperity OF
our manufacturing population, when
is. by far. the leading and most profit-
able market for our farm produce. 1t Is
nonsense to say that our farmers are
not interested in a such development.
which can only result in unemployment.
and in consequent decreases in food
consumption in the great Industrial
districts. 1t is surely poor business TO
transfer the farmers market from an
employed American workman to the
latter's competitor In the low wage scale
countries across the sea, whose poten-
tial buying power and standards OF nv
ing, even at best, are far below those
of this country.
This is indeed an extraordinary proc
ess of economic reasoning, If such 1t
could be called Certainly 1t Is a fla
grant case of direct. insidious attack
upon our whole agricultural and indus
trial strength.
BY the inevitable stimulation of pro-
duction the bill can only mean an in
crease of exportable surplus to be dump
ed in the world market. This in turn
will bring about constantly decreasing
world price. which will soon reach so
low a figure that wholesale curtal-
ment of production in this country with
its attendant Generalization and heavy
losses would be certain. Where Is the
advantage OF dragging our farmers into
'a'fB folly, w..,s c..,,,s, Abroad.
Furthermore. as the board undertakes
TO dump the steadily mounting surplus
into foreign countries at the low cost
figures. II will come into direct con-
fiict with the dumping and similar
trade laws of many foreign lands which
are interested In the maintenance OF
their own agricultural industries. We
might, therefore, expect Immediately a
series OF drastic. retaliatory discrimina-
tions on the part OF these consumer
countries. This will drive our surplus
into narrower market channels ana
force even further price reductions with
consequent increases in the burdens OF
the equalization tax.
Lastly. and most important, in. con-
nection with this aspect OF the Dill as
an aid to our foreign competitors, the
measure will inevitably devastate many
of our important farm areas. For IN
stance. the board is expected to obtain
higher prices for the American farmer
for corn by removing the surplus from
the home market and dumping II over
our borders at a lower level of prices.
In other words the hog grower In On
tario, Canada. may buy American corn
at very much lower level than the hog
grower In the State Of Ohio. Both be-
ing situated equally as TO the European
market for their pork products. We shall
see Immediately the migration OF the
Ohio hog industries across the border
into Canada. with consequent losses 10
syafl try Canadian
competition.
Likewise the dumping of cheaper
American feeds for Dutch and Scandi-
navian producers OF dairy products
further subsidies them In direct COM
petition with the American industry.
In other words, the trainers OF this
measure naively submit a proposal TO
save the American live stock grower
and dairyman by supplying hts overseas
rivals with abundant feedstuffs at re-
duced rates. II would be difficult in
deed to conceive Of more prepoSterous
economic and commercial fallacy.
To take another illustration. our cot
ton manufacturing industry. which now
has some I8,400,000 spindles In the
growing States and 16.400 900
in the New England States. has been
In precarious condition for several
years. Further handicaps imposed
upon II by this bill might spell It's
ruin and the consequent serious Grip
pling. Of our entire cotton growing belt.
Under this bill II would be quite con-
ceiyable that foreign mills could obtain
American cotton for prices substantially
less than those paid by domestic mills.
Foreign mills could ship cotton goods 10
this country In spite of the tariff since
the equalization fee In this measure is
not applied to cotton fabrics Further
more. foreign mills would undoubtedly
capture our existing export markets for
the 500 900 600 square yards which we
ship abroad annually. valued at over
SIS .0000 900 The very serious hard
ships thus inflicted upon the nearly
100000 wage earners In the cotton
manufacturing industries and the con-
seduent impairment OF their consump-
ti0n OF farm produce. as well as OF the
raw cotton In the mills. would be in
deed tragic. II not disastrous episode.
All of this assumes that the foreign
countries will permit the carrying out
OF the plan. but many of those eoun-
tries are interested in the production OF
their own agricultural industries and
will not hesitate TO impose higher tariff
duties or anti-dumping laws To prevent
such undue depression OF their own
markets. Furthermore. they would be
inclined TO institute discriminatory
measures In favor OF our competitors
by way Of retaIia ton The markets
for our surDluses would thus be- limited
II not fatally obstructcd TO stake the
future prosperity OF American agricul-
ture upon the course OF action 10 be
taken by foreign governments acting
under surh hostile impulses Is alto
gether too hazardous.