Show Bruckart's Bruckart s Washington Digest Amazing Decline In in American Farm Crop Exports Is Reported Falling FaIling Off Is Largely in Cotton Shipments Blame BlaIne Is L Laid id to T Trick Remedies by hy Agriculture Department New Program Rl for More l Sn Spending en b By WILLIAM BRUCKART Service National Press Washington D. D C. C W WASHINGTON The The department of agriculture issued a n report the theother theother oth other r day that showed an amazing decline in exports of America farm form crops Specifically the report said that export shipments of agricultural al crops were 21 per cent less in hi the thelast thelast thelast last 10 months than they were in the same 10 months ending in May 1938 Or if calculated in fractions American Amerlean Amer Amer- I lean ican farmers were able to sell i abroad less than four fifths as much this year as last y year ar Further examination of the figures figures figures fig fig- ures placed the falling off oft of exports exports exports ex ex- ex- ex ports largely In the sales of cotton So bad have our sales of cotton become become become be be- come abroad that the authorities es esnow now are expecting total exports of cotton this fiscal year to be the lowest lowest low low- est in the last 50 years ears of American history It is a sad state of aff affairs Irs and does no credit to Secretary W Wallace lIace and his subordinates in the department department depart depart- ment of agriculture They must take the blame because they have conceived conceived con con- and promoted and executed all of the nostrums and trick remedies remedies remedies reme reme- dies that were to lead American agriculture to the more abundant life lite So what we have today is a alow alow alow low mark of which none can be proud and that remarkable record has been attained after billions of dollars have been wasted in hi one way or another from the ploughing under of thousands of acres of crops and the killing of pigs through all of the stages of crop control control con can regimentation of farmers and creation of unprecedented racy But the real shock seems yet to come There is more money t to be spent and a new program to be carried cd out Mr Wallace has now initiated an anc effort by which export bounties will be paid and this will enable the sale of cotton abroad abroad- so Mr Wallace believes President Roosevelt believes so He has indorsed indorsed in in- the scheme Doomed to Failure Like Earlier Crackpot Ideas Thus we have come to a new phase in a long string of governmental govern govern- governmental mental failures failures because because this one is doomed to failure like the earlier crackpot ideas Since 1933 when the administration embarked upon its raising price campaign cotton sales abroad have steadily dropped lower When the efforts to hold the price up by means of a n reduced acreage failed brilliant minds in inthe inthe inthe the administration turned to loans to the holders of cotton so that the price could be held above the world level Thereafter and almost at once cotton goods of a cheaper kind and made by the worst types of serfdom labor and cotton Itself itself it It- it self sell from lands where labor works for a piece of ot black bread crowded American cotton out of the world market When I say as I did above that the latest scheme for artificial maintenance maintenance maintenance main main- of prices will fail an explanation explanation explanation ex ex- of the reasons obviously obviously obviously ob ob- is required In some quarters quarters around Washington however it itIs itis itis is asserted that no explanation is necessary because the thing is ri ridiculous ri H- in the extreme I do not believe the situation is as clear as that It may seem to some that payment payment payment pay pay- ment of subsidies to those owning cotton will permit those holders to sell at a lower level levei than their competitors com corn from foreign lands That is isto isto isto to say the cotton could be sold at whatever price was required to get it marketed with marketed with the United States government making up the difference difference difference differ differ- ence by a direct payment to the seller When this happens however other factors and forces begin to operate and there is where the selling sell ing machinery stalls I 1 l' l believe no one can safely dispute dispute dis dis- dis- dis ute the statement that the drop in our cotton exports exports and and other farm products too too has has resulted from the various price control policies that have been used Whenever there is isan isan isan an attempt to control prices artificially there Is bound to be grief since that action represents an interference inter ference with the law of supply and demand A horse borse will not drink and anda a buyer will not buy unless he wants the drink or the thc product Better to Sell at Lower Prices Than N Not t at All What is the result It Is s plain to see see that prices are arc propped up un by various sticks most of them furnished fur out of the federal treasury Now there s no rio sign at all that either President Roosevelt elt or congress con can gress press is v willing to withdraw those sticks s which hold the prices up Since they are arc apparently to remain re reo main then it is equa equally ly apparent that none of our cotton will vil be sold soldat soldat soldat at prices competing with foreign cot cot- ton Naturally the foreign cotton colton gets into th the markets and md S stays there just jUl as long as our own silly policies are arc maintained It stems seems strange to me why hy the government continues to harp away awny cn en Ilese sc artificial supports for or prices a a d crop rop control methods and other devices which some bright young man thinks will work There could be an elimination of nearly all of them and if there were it Is likel likely that American cotton exports would a again ain be taken in the world market Of course the price would be lower But strikes IV me as common sense that it is better to sell at a lower price than never ne to sell at all And unless all aU of natures nature's teachings are arc areto areto to go awry at once the price level would control the amount of cotton planted very much better than Secretary Secretary Secretary Sec Sec- Wallace or Assistant Secretary Secretary Secre Secre- tary ary Brown can do There is however another phase to be considered Mr Wallace and the President talk about payment of the bounties so that our producers will get a full price even though the foreign buyers get the stuff dirt cheap While this policy is being fostered another agency of the government gov is promoting International treaties designed to do away with just such policies I refer reter of course to the reciprocal trade treaties that are the especial pet of Secretary Hull Hilll of tHe department of state Hull Has Worked H Hard rd to Recreate Flow of Commerce Mr Hull HuU has worked long and faithfully in his campaign to eliminate eliminate eliminate nate the barriers to trade between nations He has sought to get other nations to eliminate restrictions on quantities of imports from the United United United Unit Unit- ed States he has battled against special tariff charges and has used every argument available to recreate recreate recreate ate ate a free flow of commerce between between be be- tween the United States and as many nations as will enter into such trade agreements It fails to make sense to me therefore to see Mr Hull HuU struggling along one road and Mr Wallace with the Presidents President's approval carrying carrying car car- out in hi behalf of the United States the very policies which Mr Hull finds objectionable on the part of other ether nations What must the reaction of the Argentines be for example when we we say through Mr Hu Hull that we dont don't want any restrictions on our shipments to their country country and and then say through Mr Wallace that we are going to pay cash subsidies to our growers of wheat so that they can undersell the Argentines In the world market at Liverpool England Of course wheat has not been included In the initial proposal for subsidies but will will- all of those please stand up who believe a n subsidy subsidy subsidy sub sub- sidy can be limited to one kind of farm crop I would feel if I were a citizen of Argentina that even the kindly words of President Roosevelt about being good neighbors were liberally liberally lib lib- sprinkled d with hokum Above and beyond the contradictory contradictory contradictory tory character of these policies as I Ibave have bave attempted to point them out there is still another national policy which mixes with the Wallace subsidy subsidy subsidy sub sub- sidy idea as oil mixes with water Through many many years one of our fundamental laws governing imports inflicts retaliation upon those who attempt to gain entrance into the American market by use of or a government subsidy Tap Treasury for Subsidy To Pay Holders of Cotton The tariff laws say that whenever shipments of any commodity from any foreign nation is sold or offered f for r sale in hi our market at prices below below be be- low the selling prices in the homeland homeland home home- land of production our customs officers m. m cers shall at once apply a countervailing countervailing countervailing counter counter- duty Now the countervailing countervail countervail- ing duty is nothing more more nor less than a retaliation and it is intended to offset the use of or such subsidies as are paid by the government of the land from which the shipment came We have used it many times only lately it was used against Ger Ger- many The amount of the duty that was assessed was more than e enough ough to make the price of the imported article higher than our American market quotations on like articles Here in the Wallace subsidy idea however it Is proposed to take money money mon man ey out of the federal treasury to pay holders of cotton a subsidy that will wm enable sales abroad at low prices The self same treasury at nt the very same time must act through its customs customs cus cus- toms officers to see sec that no other nation docs does the same thin thine 1 to us Wh While all of these things are lre bad I enough h. h I think we ought not overlook overlook overlook over over- look the possibilities contained in any subsidy program the program the extent to which it undoubtedly will go As I Isaid Isaid Isaid said above if there is an export bounty on cotton sales does docs anyone anyon think for a n moment the wheat farmers farmers farm farm- ers will not ask for Cor similar treatment treat ment And if iC wheat gets that treatment treat treat- treatment ment how about corn and hogs and tobacco and rice and potatoes and peanuts and dairy products When all of those arc are m in n why not nota a subsidy out of ot the treasury to be paid to me and to others who work and to one storekeeper who is competing com corn with the fellow in the block Released by Union |