Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-18

It Is admitted that industry Is already
upon an economic plane above that Of
! agriculture. When the administration
desires to aid the manufacturing indus
tries it does not promise "a better mar
keting system" It gives them q higher
price at the expense Of the consumer.
Loans to co-operatives" dealing in
manufactured products will not meet
the situation. The farmer alone must
be contented with o board ito help the
farmer help himself"
When the farm relief bill was pend
ing the "debenture plan" was proposed
as an amendment. The Senate adopted
tests by President Hoover and Secretary
of the Treasury Mellon. On a record
vote 1t was defeated in the House, In
accordance with plans Of the admins
tration.
What Is the principle of the export
debenture plan? That plan Is based
upon the theory that since the farmer
must sell his goods in world-free
competitive market he should in theory
be allowed to exchange in that market
manufactured goods and bring them
But in order to obviate the mechanics
and the practical obstacles which would
be met In such process, 1t provides that
when he exports his products the Treas
ury will issue him certificate for one
half of the tariff rates and he can ten
der that certificate at the customhouse
| in payment Of tariff duties upon i'm
ported goods.
Turning the Tariff Around.
What is that. except turning the
tariff around? What Is the tariff for?
The tariff primarily is a device for
raising the price. We give the manu-
facturer a tariff on his imports. Why
not give the farmer a tariff on his ex-
ports? II 1t is fair to give the manu-
facturer o bounty, why Is 1t not fair to
bate or bounty, II you please, upon the
expectation Of his products to foreign
lands?
II manufacturer cannot compete in
the domestic market with importations,
we give him an import tariff in order
that he may do so. If the farmer can
not compete In foreign markets, why
not give him an export tariff to enable
him to compete?
Alexander Hamilton suggested the ex-
port debenture for certain purposes.
He justified and defended 1t on the same
theory that he advocated a tariff.
Mr.. Hamilton saw clearly that q
bounty on exportable goods was no more
. bounty than q tariff on manufactured
goods when 1t gives to the manufac-
urer a higher price and EFFORTS that
profit out OF the pockets Of the people
by force Of law.
The one thing that the farmer needs,
and the one thing the farmer expects
Is something that will increase his price.
It Is not denied by economists that the
domestic price as well as the foreign
price will be enhanced practically to the
extent Of the export debenture.
1t will raise the price. There is no
serious question about that. It will
stimulate competitive buying between
exporters who may receive a premium
on exports and domestic buyers who will
be forced to meet the exporters price.
The plan will not take directly out
OF the Treasury single dollar. 1t will
prevent money from going into the
Treasury. It will intercept customs
duties on the way to the Treasury. Let
us see II that be an absolutely I'M
pardonable sin. Whenever tariff rates
are raised above a certain point the
revenue derived from that article de-
clines. Money IS thereby shut out Of
the Treasury; and that is what this
plan does, and nothing more.
Aluminumware Is Cited.
In the case of aluminium kitchen hol-
low ware during the last three years
under the old law. the revenue collected
from duties on aluminium ware amount
ed to 100000. During the three years
under the present tariff law, carrying
higher rates, the duty collected was
only 1928, 900. Hence, the present tariff
on aluminium kept out Of the Treasury
1891 900 that would have gone into the
Treasury under normal conditions had
the tariff not been increased.
The debenture plan proposes to ap-
propriate part Of the revenue derived
from q protective import tariff for the