The Washington times., 1938-08-24

ering around 60c bushel.
WM Our estimated wheat crop for
+bis wear is e6 900 900 bushels the second largest in
our history We have carry over from last year OF Zoo
600 900 bushels which, added to the estimated crop 1or
this year totals up to bushels Our normal
wheat consumption in year is only 65OOOOOO ousne'
So the question becomes urgent What to do about the
expected excess of 100000 bushels or roughly 80
per cent of whole years supply?
Secretary of Agriculture Henry A. Wallace is usually
farseeng man. With reference to the wheat glut ne is
working on plan which doesn't seem so farseelng to U.S.
We hope he thinks it over with extreme care.
ErnOrt Mr. Wallace is thinking of plan to sub
c,,ho;d,, sdize wheat exports up to about 100000
900 bushels in year. Without such
.h;d II looks as if we can sell only about 5OOOOOOO
bushels abroad this year.
An export subsidy is simply device for dumping
eountrys surplus production of commodity on the
rest of the world.
Tn this case the commodity would be wheat and what
our Government would do would be to sell lot OF wheat
below market in other countries and pay our farmers the
difference between the actual prices collected and tne
market price in this country Or pay our ]oooers tne
difference at any rate; wouldn't want to bet on the
farmers ever seeing large wads of the export subsidy
dough.
We think we can spot four five flaws in this plan
For one if we're going to subsdize cheap commodities
for anybody why not for our own people? why 1or
Cinnamon or Frenchmen or English
Reme0y Is men? We don't know whether our
... , destitute could any more
wheat than at present, though we
do hear that relief diets here and there are far from
nrincev But if the Government is going in for buying
IN stuff bv not buy more food and clothing for our
ou noone? Whv use artificial stimulants to export
those things?
During and after the war, the Government financed
exports of various kinds and did private financial
houses After time it turned QUITO lift phrase from
Jerome Franks striking book, "Save America First
that we had been giving away substance donating
our topsoil to foreigners. The customers didn't pay;
most likely never will Do we want to repeat that
performance?
Further to subsidize wheat exports on large scale
will only encourage wheat farmers to oVerproouce
some 1t will set up an artificial demand Tor "heat'
demand which can be kept going only by keeping up the
subsidies repetition of Mr. Hoovers tragic expert
ences with the Federal Farm Board inevitable
For still another flaw any nation play the export
subsidy game If we start dumping wheat the rest OF
the world there will be reprisas. The Argentine for
example, will most likely start
HULCS PLGn is underwriting some other exports
AH- D-o,..:o;,o of ours. They may likewise put
AO on countervaing duties against
our imports. This game will be played the bitterly
because practically every nation in Europe fearing war
is striving to become selfsustaning to essentials
Isn't it sounder policy to confne surpusabsorbin9
efforts pretty much to market and to try to lure
excess-crop farmers into crop diversification?
Our feeling is that Mr.. Wallace would be wise to leave
the export stimulation Secretary of State Cordel Hull
with his reciprocal trade agreements. The Hull scheme
doesn't get fast spectacular results But it does depend
on normal non-artificia demand in other countries fol
some American products Thus, it does not dislocat
world trade by bringing on tariff wars