The Washington times., 1935-12-10
CANADATREATY
AGRICULTURE
AID, CLAIM
Says Plan Is to Undo
Damage Done BY
Snnoot-HawIey Law

CHICAGO, Dec. 10 u.N.SJ.
Secretary of Agriculture Henry
A. Wallace today vigorously de-
Tended the recently signed recip'
rocal trade agreement with Can
ada in a speech before the an
nual convention of the American
Farm Bureau Federation.
Wallace denied that the agree
ment would have any appreci-
able effect upon agricultural
prices on markets and asserted
the new treaty attempts to
undo the terrific damage done by
the Smott-Hawley act Of 1880"
He said the new treaty had been
drawn with extraordinary skill.
The Secretary's address was
given over almost entirely to a
discussion Of the effects of tariff
rates on agriculture and to trade
agreements arranged by President
Roosevelt.
May Make History
Speaking of the new Canadian
treaty, he said:
"I believe the way this agree
ment is received by yourselves
and other farmers Of the United
states may have an important
bearing on the history OF Amerl'
can agriculture and on the
American people for perhaps the
next 100 years"
Warning the farmers they must
work together for the interests OF
agriculture, Wallace said:
Farmers cannot afford to fall
out among themselves for self
seeking interests which have op-
posed them are ready to take ad"
vantage of any division OF their
ranks"
Mr.. Wallace held the Fordney-
McCumber and Smoot Hawley
tariff acts, particularly the latter,
responsible for the plight of the
farmers of America. The process
ing tax he termed tariff for
farmers" This did not undo all
the damage of previous tariffs.
the Secretary asserted. He said:
Here was the dilemma. If
enough foreign goods suddenly
were imported to permit the con-
tinued exploration Of all Of agri-
cultures surplus beyond domestic
needs, the effect on our industrial
and economic structure would be
highly disturbing. Retreat by the
farmers from the foreign market
would place the shock of readjust-
ment entirely on them"
The Administration. he said,
was attempting to bridge the gap
between these two extremes. He
continued:
Agriculture real and continu-
ing problem is not how to stop
the little trickle of competing
farm markets but how to move
its own Surpluses into export.
There is room for difference Of
opinion as to the best way to re-
store foreign trade"
He declared that temporary
makeshifts would not do and that
means for continued exports must
be arranged. The new Canadian
agreement was in line with this
theory, he said.
Peck Also Speaks
r. w. Peck of the Farm Credit
Administration. who preceded
Wallace as a speaker, said:
There is no permanent peace
in agriculture for Government
subsidy in the form of credit.
If we are to have relief. let's call
it by its proper name and confuse
1t with a permanent cooperative
credit system"
He said the Federal Credit
Banks this year have provided
funds for the investment market
for agriculture to the sum of
$3.50, 100000, at an interest rate
cost of 2 per cent. making a
per cent rate to individual bor-
rowers.
The banks for cooperatives.
since their establishment, have
financed more than 1900 coop
eratives with $50, 100000, he said.
Representative T. Alan Colds
borough of Maryland discussed
"the money system" before the
farmers. He said that if the capi-
taliStic form of government is to
be saved, conditions must be per
manently changed in the matter
of economic opportunity.