Salt Lake Telegram | 1939-02-16 | Page 3 | Germany Bide for U. S. Farm Produce on Pure Barter Basis

Germany Bids for U. S. Farm Produce on Pure Barter Basis WASHINGTON, Feb. 15 (AP) If John Farmer want to make a pure barter arrangement with Germany to swap his wheat for barbed wire or a threshing machine, he now finds the way smoothed for him. All he haa te do la to communicate communi-cate with tha nearest German consul, con-sul, and In due time his wheat probably will turn Into the thrashing thrash-ing machine. Farmer cooperatives In tha midwest mid-west ara reported negotiating actively ac-tively with the German government, through representatives here, for the barter of lard and wheat for farm machinery and Implements, barbed wire and poultry netting. What happen to John Farmer and his wheat or lard runs Ilka this: John tells the German consul: "I have 10,030 bushels of wheat which I valus at $8600. I could uss some farm machinery and poultry netting. net-ting. What Is your price?" - The consul replies: "Our price Is considerably above that In the United Unit-ed States. However, we will give you a price for your wheat M per cent higher than that paid In the United States. In that way you will come out even." John also must take Into account tha tariff ha might have to pay oa tha goods from Germany. There is no duty on most farm machinery and low. duty on barbed wire and wire netting. Tha duty la paid on tha basis of ths wholesale pries In Germany and la levied just as if John bought the goods for cash. John also muat maks allowances for the cost of transport across tha ocean and to his farm. In order to profit on tha deal. When John algna his proposal the consul sends It to Germany. There it first goes to the Import board, which decidea whether Germany needa tha products John la offering. offer-ing. . . If It decidea In tha affirmative, It sends the proposal to tha central board of industry, which determines whsthsr selling the products John wants In return might disturb the Industrial or rearmament program. If the decision Is favorable, the proposal goes to tha export control board, which decides whether shipping ship-ping ths products might disturb Germany's market here er elsewhere. else-where. If It agrees John can have tha goods hs wants, the deal la closed. John then ships his wheat ta a designated port, where St Is put on a German ahip and carried to the relch. Then tha credit Is applied to the purchase of the farm machinery and barbed wire, which la shipped over In a German vessel. The Germans have been advocating advocat-ing this type of trade, but Hjslmsr Schacht, former president of their relchsbank. says It la barbarous and Secretary Hull believes it la medieval medie-val i