Milford chronicle., 1931-01-16
XPORT DEBENT URE
EXPLAINE

The export debenture scheme of
farm relief is again attracting at
tention in Washington as one of the
reasons urged in favor of an extra
session OF Congress. The exact
meaning of the name by which this
scheme has been christened has al
ways puzzled the public, and those
who have brought about the defeat
Of the scheme. thus far claim that
it is only another, way of robbing
Peter to pay PaUl-thaf what 1T
means in palmer English. IS that
for. all agricultural products :eX-
ported fifty per centuIn Of the i'm
port duty imposed upon such pro-
ducts by statute shall be paid to the
exporter, in the shape of debeptures
so called which shall be legal ten
der at face value at the Custom
House for imports of whatever
character. Hence, they are negoti-
able on the market, since the de-
mand for them will readily absorb
them as issued.
If, for example, FARMER Jones ex-
ports products, dutiable if imported
at one hundred dollars, the Govern
ment will issue him an export de-
benture for fifty dollars which Far
mer Jones can discount to Impor-
ter Brown at the market rate.
Brown will turn it to the Customs
officer who will give him credit at
its face value for import duties due
from him to the Government, This
is in effect a bounty to Farmer
Jones from the Federal Treasury
upon his export of farm products
and payable from revenues collect
ed on goods imported. whatever
their character. Since it is charged
against a Treasury balance, if there
is one, it reduces the balance to the
sum of the total bounties paid.
The importer is thus taxed for the
farmer instead of the Government,
which collects and disburses the
bounty, or subsidy or whatever the
transaction may be called. Its legal
ity is very doubtful, its propriety
much more so. AS precedent, it is
most dangerous, and subject to the
gravest of abuses. For if by such
legerdemain the farmer may profit
at the expense of the importer, the
income taxpayer may be required to
pay an additional percentage for dis
tribution to the artisan unemployed
or otherwise; or revenues collected
from the tobacconist may be used to !
subsidize cab drivers or impecuni- |
Gus lawyers.
1t is not surprising that fear is
expressed in the National Capital
that we are heading toward a sys-
tenn of racketeering at the expense
of the ultimate taxpayer, since
should the taxing power be divert
ed from it's legitimate and essential
it will become the, sine
cure of the classes powerful enough I
to secure.
1t is urged against this proposal
that it imposes unjust and unequal
ON certain classes, and
confers special advantages on the
of the scheme. One of
its opponents has said that 'it is
subverive of free Government, be-
cause it violates safeguards to
and perverts the funda-
OF equal taxation. That it is
by men high in our
councils, and defended by
ls wyers of conspicuous ability is
This fact makes the sub
ject one of serious present, impOr-
lance and emphasizes the extent to
which political pressure and inter
est will chloroform public opinion.
and influence the Judgment of Off
cials dependent for their places up
IN the demands of an irresponsible
How far will the. tax
limit be carried before the barriers
will be closed?"