The Republican. [volume] (Oakland, Md.) 1877-current, 1935-09-19
NATIONAL AFFAIRS
BY FRANK P. LITSCHERT

One of the principal claims Of the
proponents of the AAA theory of
planned scarcity and processing taxes
is that it is an effort to give the farm
ers the benefit Of a protective tariff.
They hold that the consumer is taxed"
by our tariff in the things that he buys
and that he is being assessed by the
processing tax again to give the pro-
dusirg farmer the benefit Of higher
prices. Without going into the analogy
Of the protective tariff and the pro-
cessing tax, and the analogy is as full
Of holes as a Florida sponge, one big
difference may be cited. The protec-
tive tariff does increase production at
home at the expense of producers
abroad, while the AAA theory de-
creases production at home, for the
benefit Of foreign producers, who
profit by the scarcity and high prices
in America.
But this is not all of the Story. 1t
us, but condition-if we are per-
i uIlICCu " DOlIOW an eA pIGSSIOl COlIl-
monty attributed to Grover Cleveland
What some of the New Dealers seem
to forget is that our farm products
already have a protective tariff. Plan
ned scarcity and the processing tax in
America have so lacked up prices that
foreign producers are sending US the
produce of their farms, over the tariff
wall. Whether or not more of this
scarcity was brought about by the
Brain Trusters or Mother Nature, it
is now evident that we are receiving a
wide variety of foreign agricultural
imports, and that nobody in the Unit
ed States is getting any benefit from
this.
We are no longer as nation great
exporter of farm products. In fact, we
are not now self sufficient in this re-
spect. Certainly we will no longer be
a great exporter with or without Sec
rotary Hull's new treaties-unless We
have something to export. The high
prices are not doing the farmer as
much good as was anticipated because
he doesn't have much to sell, either
in our markets or in the markets
abroad. The foreign producer is get
ting the breaks, and he certainly is
enjoying himself. So as a protective
tariff" for the farmer, the process
ing tax is a decided kashout, despite
anything the New Dealers may say
to the contrary. 1t is not keeping out
foreign products as protective tariff
is supposed to do. 1t is, by increasing
the price on home produce, inviting
in the foreign article, helping it to
jump the tariff wall which was erect
ed by the wicked old protectionists"
of the Harding and Coolidge and the
Hoover days.
In the meantime, let it be remem-
bered that all efforts to increase the
exports of our farmers through trade
treaties-by letting in foreign goods
so that the alien can get money to
buy the produce of our farmers, seem
decidedly "all wet" in view of the
fact that our farmers have little or
no produce which they can sell abroad.
AS matter of fact, every effort
has been made by the protectionists to
help the American farmer wherever
possible. There is no duty on any of
the things imported which are used
exclusively on the farm. And there is
duty on most products which are
raised on the American farm. That
this has been effective in many in
stances is now indicated when scar
city and the processing tax enable
the foreigner to pay our tariff and
still dump his agricultural wares into
American markets. But to call the
processi~~ tax a protective tariff
measure" for our farmers when it en-
courages imports rather than ex-
cludes them, is just little thick, to
say the least.