Evening star., 1939-05-07
Millions of Taxpayers Dollars
Distributed Freely to Foreigners
Benefits Are Bestowed by Trade and Other Policies
With Not Even a Request From American
Sources for Reciprocation
By Herbert MaxiniLan Braner.
By Herbert Ma1imiIian Braffer.

The United States is the worlds rich
uncle. And Uncle Sam is generous to
his "nephews" and "nieces." When there
is a disastrous earthquake in Japan or
Chile, when there are starving thousands
in war-racked Europe, America is there
to lend a helping hand.
But this countrys charity to the out
side world is not confined to times of
disaster Much of it is dispensed in
cidentally or carelessly for supposedly
domestic motives. Each year we give
away millions without realizing it. BY
our trade and other policies, We bestow
on others benefits which they do not
reciprocate. We do not even ask them
to do so.
Foreign countries are not so careless.
When they want to adopt policy, an
incidental result of which will be to
benefit others, they are inclined first
to seek some concession from those
foreigners who will benefit. Not so
America. When Congress wants to help
the agricultural or the silver bloc, the
fact that the bulk of the benefit will go
to foreigners is no deterrent. Merely
to call something IAN increase in foreign
purchasing power" is often explanation
enough.
During the present fiscal year, for
example, millions of bushels of American
wheat have been exported with the aid
of a subsidy taken from the customs
revenues The idea was to help our
wheat farmers. But the incidental effect
has been to make present to the United
Kingdom, France, Belgium, the Neither
lands, Mexico Italy and various other
countries. On a small scale, similar
subsidies have been given to foreign
buyers Of our prunes, pecans, walnuts,
tobacco, pears and long staple cotton.
Gift to the Germans.
In view of the unpleasant state OF
Characterization relations 1t Is in
teresting to learn that in the guise of
aid for our farmers, taxpayers money
is used by the American Government
to make gift to the Germans. The
Federal Surplus Commodities Corp. re-
Gently sold for German use, at 3812 cents,
wheat worth about 10 cents a bushel.
To date between 100000 and 100000
bushels of American wheat have been
sold through American agents of the
Germans
The United States will shortly embark
upon another cotton export subsidy. The
plan is to help move some of the surplus
abroad. The effect will be another gift
to foreigners. They will be able to buy
American cotton at less than the Amer
lean price, the difference being paid not
by the cotton growers, but by American
taxpayers.
AS a result, foreign textile manufac-
turers competing with American cotton
textiles will be receiving the assistance
Of the American people-and this, of
course. without any quid pro quo
This cotton scheme constitutes the
same kind of export dumping as that
for which we have officially berated Ger
many time and again. Its serious con-
sideration by Congress at this time is
ironical.
Would Benefit Americans.
If there were not this subsidy, the
farmers would receive less for their
products, and the buyers of the products
would pay less for them. But the reduc-
ton in prices would benefit American
rather than foreign buyers. AS it is, the
subsidy holds prices up for domestic
consumers and depresses them for for
eign consumers. 1t amounts to a gift
by the American public to foreigners
Mexico, it will be recalled, raised its
import duties on American merchandise
in 1887 and again in 1898. We retail
ated" by buying from Mexico in lump
and at about 25 per cent above its Mexi-
can book value, all the silver which the
government of Mexico had accumulated
during four years as its undertaking
under the London silver agreement
Meanwhile, our Treasury just keeps on
buying Mexican silver refined in this
country. Thereby it finances Mexico in
Its purchase of subsidized export wheat
and flour, or of any other commodities
1t desires to buy here. We make Mexico
q double gift.
Consider the purchases made by tour
lists. This country allows each of its
returning tourists to bring in duty-free
500 worth of foreign merchandise. Not
a single European country does this for
Its citizens who visit the United States.
Canada is about the only large country
doing so, although this practice dates
only from our trade agreement with
Ottawa in 1886.
With few minor exceptions, no other
countries offer an exemption correspond
ing to ours. Thus, Mexicans who have
visited here may take home to Mexico
not a dollars worth of American goods
duty free. Even if Mexico extended reci-
procity on this matter, it would still
have a great advantage, because many
more Americans visit Mexico than Mexi-
can tourists visit us.
Americans are permitted by their Gov
ernment to travel freely abroad (outside
OF war zoneS and to take with them all
the funds they may possess, if they
choose. Not so foreigners. Where there
is exchange control abroad, as in Japan,
Europe, or Latin America, travel money
is restricted. German tourists, for ex-