Evening star., 1932-11-13
Outburst of Legislative Activity to Mark
Beginning of Democratic Administration

, that 20 per cent Of it will go out OF
the country and that 80 per cent of II
will be needed within our borders.
x y X X
Let us then suppose that the local
farmer grows 100 bushels of wheat
Twenty Of those bushels will be per-
mitted to pass through the ordinary
channels Of trade without receiving
what the President ELECT has called a
tariff benefit" Ti,e remaining 30
bushels will be grated such benefit
through a process ingenious and COM
prehensive.
On those 80 bushels the dealer who
purchases them from the farmer will
of course, pay the current market price
but he will also deliver to the farmer
so-called equalization certificate.
This equalization certificate" will be a
financial negotiable document It will
call for a sum of money equal to the
present tariff duty on each of the sc
bushels.
y x X
The present tariff duty on wheat is AZ
cents per bushel. In the given instance
accordingly, the dealer will deliver to
the farmer an equalization certificate
calling for sum of money amounting
to so times AZ cents, or 1880
The farmer thereupon sells the cer-
tificate A market for 1t is in principle
assured by providing that no -four miller
may grind wheat into -four for domestic
consumption without having in his
possession quantity Of equalization
certificates" equivalent to the quantity
of wheat going through his mill to the
domestic market in the United States.
In other words, the flour miller must
directly or indirectly purchase equal
in order to be legally permitted to grind
their wheat for consumption by the
United States population.
Presumably the flour miller. In SELL
ing his flour, will enhance its price
by the exact value of the "equaliza
ton certificates" which he has been
obliged to purchase. Thus the increase
income to the farmer will be created
by an ultimate increase charge to the
consumer.
Obviously this plan will encounter
much determined resistance from the
legislative representatives of our purely
industrial districts. 1t can go into the
statute books only through an extremely
vigorous presidential leadership of the
large Democratic majorities in the
Senate and House.
4 X
The third crucial Democratic legis-
lative effort will be in the field of the
tariff. The President-elect has under
taken not to reduce the tariff duties
on agricultural products. He proposes
to reduce the duties on unspecified
industrial products through interna-
tional treaties These treaties will re-
quire protracted negotiations. The
foundations for them will perhaps be
laid in the approaching international
Economic Conference" which may con-
vene while Mr.. Hoover is President.
but which will certainly not adjourn
till after Mr.. Roosevelt has entered
the White House.
The temper shown by the world in
the international Economic Confer
ence" will determine whether or not
Mr.. Roosevelt's plan for tariff re-
form through international agreement
is feasible. The total therefore that
can now be safely said on the topic
Of the tariff under the next admin
istration Is that President Roosevelt
will most undoubtedly labor strenu-
ously toward making the international
Economic Conference" the beginning Of
a new world age of world accomoda-
ton and cooperation.
(Copyright, iss2)