Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-14
FARMERS MAY ASK
WHEAT PRICE AIDS
Action Might Follow Opera
ton of Canadian Freight
Rate Cut.
BY FRANK I. WELLER,

Belief that farmers may ask Congress
for the export debenture or some other
weapon in foreignu markets, should the
proposed Canadian cut in freight rates
on wheat be reflected in export quota
tions, has arisen in political and agri-
cultural circles.
Senator Borah Of Idaho looks upon
the plan of the Bennett government TO
absorb cents bushel of transportation
charges to the seaboard as an export
subsidy comparable in some respects to
the debenture.
If it is, he said, there is all the more
reason the United States, too, should as
sumo whatever loss may be necessary to
maintenance Of prices at home while
export is stimulated by concessions
abroad.
Debenture Certificates.
The debenture plan is an arrangement
whereby exporters of those agricultural
products of which there Is a surplus
would receive from the Treasury De-
partment certificates having face
value fixed by Congress and intended
to represent the difference in cost of
production between the United States
and foreign competitors.
AS previously proposed, the debenture
certificate on wheat would be worth 81
cents q bushel, or one-half the amount
of the tariff. A cooperative association
or grain dealer desiring to ship wheat
abroad would receive the world price
plus 81 cents for each bushel exported.
The margin of 81 cents. guaranteed
by the Government, would give the
American exporter opportunity to adj
Just export quotations to those OF com
petitive foreign operators and protect
the outlet for ArnnTinon Grain students
of the debenture say.
Opponents of the plan say it would
lead to dumping of American sur
pluses and invoke serious foreign retalia-
ion in the form of higher imports duties
on the debenture commodity.
AS proposed by the National Grange.
the export debenture would become
operative only at the discretion of the
Farm Board, normally substituting for
Emergency Sterilization" Instead of
grain piling up in this country under
a holding-fcr-better-pr program, the
dehenture would move 1t into export
0ebenture certificate, the Grange says.
The certificates would be worth their
full face value In paying import duties
or redeemable at the u. S. Treasury at
not less than SO per cent race value.
World DifferentlaI.
The advantage CT the American ex-
porter being in position to match price
concessions abroad without impairing
domestic values is said to lie in main
tanng the world dfferential.
Canadian wheat usually has sold from
8 to 10 per cent higher than American
wheat. When the Liverpool cash price
for June shipment or the Canadian
contract grade closed at 1874 cents a
bushel similar quotation on the Ameri-
can product was 667a cents.
Unless American exporters, it was
suggested, were in position to sustain
the price difference, lower quotations on
the decidedly superior Dominion prod
uct might materially narrow the de-
mand for American wheat.
Some visualize in the export debenture
the incentive for worldwide price
Slashing and subsequent situation
worse, or at Leaf no better, than the
one for which a remedy was sought.
That view is taken, notably, by the
Farm Board. At the same time the
board opposes further emergency sta
bilization, a practice which already has
burdened it with almost the entire
American carryover of wheat.
There are two other substitutes for
sterilization, the equalization fee and
the so-called "Grobe" plan. The board
insists on adjustment of production to
domestic consumption, but political and
agricultural leaders indicate a fight for
modification Of the agricultural mar
keting act.
The equalization fee, long before the
country in the old McNary-Ha
farm relief bills. proposes that the COM
modify served pay for the removal of
its own surplus through the collection
of stipulated fee at the point the
product enters commerce-the fee to
be used in developing foreign outlet,
and thereby elevating domestic values.
The "Grobe" plan, advance by North
western wheat interests, proposes a
Federal stamp tax on every barrel of
flour milled in this country. The tax
would be collected from the millers and
pro-rated to wheat producers en- the
basis of their annual sales. The tax,
however, would be refunded to millers
on -four ground for export
Thus, while stamp tax of 50 bar
rel on 200 900 900 barrels would pro-
vide $500 900, 000 exports of 50,000,00
barrels would return $500 ,000, 900 to the
millers and leave $500, 900 900 for dis
tribution to farmers. The idea OF 1t is
to encourage greater expectation Of
-four.
SHOE DIVIDEND.
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