AMERICAN WHEAT

Ashburton Guardian, Volume 51, Issue 206, 13 June 1931, Page 5

AMERICAN WHEAT

EXPORT DEBENTURE SCHEME.

THE CANADIAN FREIGHT CUT.

SOME OBJECTIONS RAISED

(United Press Association—Copyright)

This Day, 11.15 a.m.) WASHINGTON, June 12. The belief that farmers may ask Congress for an export debenture or some other weapon in foreign markets, should the proposed Canadian “cut” in freight rates oil wheat be reflected in export quotations, lias arisen in political and agricultural circles. Senator Borah (Idaho) looks upon the Bennett Government’s plan to absorb five cents a bushel of the transportation charges to the seaboard as an export subsidy comparable in some respects to debenture stock. As previously proposed, the debenture certificate on wheat would be worth 21 cents a bushel, or cue-half the amount of the tariff. A Co-operative Association or grain dealer desiring to ship wheat abroad would receive the world price, plus 21 cents for each bushel exported. Opponents sav the plan would lead to dumping of United States surpluses and invoke serious foreign retaliation Some visualise in the export debenture an incentive for worldwide priceslashing and a subsequent situation worse, or at least no better, than the one for which a remedy is sought. That view is taken notably by the Federal Farm Board, which also opposes further emergency stabilisation, which already has burdened it with almost the entire United States carry-over.