Foreign Trade And Money 



(Continued from page 14) 



needs that we have lagged and fallen be- 

 hind. 



"As minor examples of the successful 

 employment of bargaining power by the 

 United States prior to the enactment of 

 the Reciprocal Trade Agreements Act I 

 would point out that in 1933 and early in 

 1934 when we were giving quotas for 

 the importation of liquor into this coun- 

 try following the repeal of the Eight- 

 eenth Amendment, some rather ad- 

 vantageous trades were made. 



"For example, Spain agreed to take, 

 during 1934, approximately 17,500,000 

 pounds of tobacco in exchange for an 

 enlarged wine quota. In previous years, 

 Spanish tobacco purchases had been very 

 irregular and averaged much below these 

 figures. 



"lUly also contracted for 1,250,000 

 pounds of tobacco. This bargain was 

 made in spite of the Italian program to 

 reduce to a minimum imports of Ameri- 

 can tobacco. France took 20,000 tons of 

 apples during the first quarter of 1934 — 

 the largest quantity ever sold to that 

 country, even under unrestricted trade, 

 and over four times the quota which we 

 had been allowed for the previous quar- 

 ter. In addition, larger imports were 

 authorized for the second quarter of 1934 

 as an indirect result of the original 

 agreement. It is reported, however, that 

 since we discontinued giving quotas gov- 

 erning the importation of liquors, France 

 has re-established barriers against our 

 apples. 



Export 28,000.000 Bushels 



"In the summer of 1933 the North 

 Pacific Emergency Export Association 

 was formed for the purpose of disposing 

 of some of the surplus wheat in that sec- 

 tion. The results of its activities have 

 been the exportation of about 28 million 

 bushels of wheat and flour to more than 

 forty countries. Although the price of 

 No. 1 white wheat at Portland, Oregon in 

 July 1933 was 26 cents under Chicago's 

 December futures, since that time, ex- 

 cept during the period of the longshore- 

 men's strike on the Pacific Coast, the 

 price has rarely been more than 15 cents 

 under Chicago and for some time was as 

 low as six cents under Chicago. 



"Another promising field for trade has 

 been presented through a representative 

 of important foreign interests who de- 

 sires to purchase various food commod- 

 ities from this country for cash. The 

 problem has been one of price, for his 

 principals insist upon purchasing at com- 

 petitive world prices. Clearly we must 

 expect to sell on this basis if we are 

 to have the advantage of this market. 

 This problem is not new to you; neither 

 is the thought which it suggests, that 



we might well have two prices — Ameri- 

 can prices for goods consumed in the 

 'United States and competitive world 

 prices for goods sold abroad. Conditions 

 are such in, most foreign nations that 

 to make this effective, the consent of 

 foreign governments to such negotiatiors 

 may be required. Nevertheless, such con- 

 sent is likely to be given and when it is, 

 it should dispose effectively of any 

 charge of dumping in cases where this 

 practice is followed. 



Trade With Germany 



"Furthermore, recently active negotia- 

 tions have been in progress looking to- 

 ward the trade of American cotton and 

 other farm commodities to Europe, on 

 what amounts to a goods for goods basis. 

 A fairly complete arrangement has been 

 worked out by American cotton exporters 

 with Germany whereby Germany takes 

 American cotton up to three-quarters of 

 a million bales, paying for it 25% in 

 cash and the rest by the importation of 

 a wide range of German goods cus- 

 tomarily imported into the United States, 

 under appropriate safeguards to prevent 

 damage to the American market. This 

 agreement is now awaiting Governmental 

 approval. Moreover, negotiations have 

 -been carried on for a year or more by 

 American packers with Germany look- 

 ing toward greater exports of lard to 

 Germany, payment for which would be 

 assured by ear-marking the proceeds of 

 German wine and beer sent to the United 

 States. These negotiations are reported 

 as nearing a successful conclusion. I be- 

 lieve these are all steps in the right di- 

 rection. I cite them as examples of how 

 Government action or Government as- 

 sistance in bargaining can assist in the 

 promotion of export and import trade." 



Dealing In Futures 



(Continued from page 20) 

 young people. Every farm boy and girl 

 with ambition and vision must be given 

 the opportunity to see the heroism in 

 agriculture, and have stimulated in them 

 a desire for achievement right at home 

 on the farm. 



"You know, folks, I wonder if some- 

 times we have not been guilty of hang- 

 ing a false picture on the walls of the 

 imagination for these rural youth. We 

 have always held material wealth and 

 acquisition of property and power as 

 the goal and ideal for our young people. 

 The teacher in the little rural school 

 tells of the great glitter and glory of 

 success in the city, the story of how the 

 farmer became a great and powerful man 

 in the city. No stories are told of the 

 thousands and thousands of failures and 

 the struggle for mere existence in those 

 fabled heights. Why not hold up as an 

 ideal the great work in agriculture in 

 developing breeds of livestock, new va- 



rieties of grain, in building farm or- 

 ganizations and taking part in the gen- 

 eral civic program? Inspire the young 

 folks from the farms to become leaders 

 in their home communities rather than 

 to go into the cities, hunting that elusive 

 pot of gold at the end of the rainbow. 

 To do this, we must not paint a false 

 picture of glittering success. We must 

 teach them the gn^eatness of their own 

 calling. We must emphasize a different 

 standard of value. 



"This nation must choose either an 

 agriculture that is hopeless, uneducated 

 and void of inspired leadership and in- 

 telligent followership, or an agriculture 

 enlightened, educated, actually living on 

 the farms, participating ^intelligently in 

 the social and economic, political and 

 cultural phases of living. If we are to 

 choose the latter, we must recognize 

 farming as a great vocation for which 

 special vocational schools must be main- 

 tained for our farm youth. The welfare 

 of America in the next generation de- 

 pends upon our recognition of that re- 

 sponsibility now, for we are building not 

 only for t-day but for the future. May 

 we build well. With the sympathetic 

 leadership prevailing through our gov- 

 ernment today, with a general recog- 

 nition of these needs in agrriculture, and 

 with a courageous and honest leadership 

 in farm organizations, we must not fail." 



Livestock Marketing 



.' Meeting Sat. Feb. 23rcl 



President Earl C. Smith of the I. A. A. 

 and C. G. Randall of the U. S. Dept. of 

 Agriculture will address the annual meet- 

 ing of Illinois Livestock Marketing As- 

 sociation in the Y W. C. A. building at 

 Bloomington, Saturday, Feb. 23. 



For Lower Industrial Tariff 



I wish to congratulate you on the last 

 issue of the I. A. A. RECORD. It seems 

 unusually good to me. 



Possibly one reason that it seems good 

 is that the organization has at last 

 launched a program toward lowering in- 

 dustrial tariffs. 



J. W. WHISENAND, 

 Adviser, Peoria County. 



Channpaign Service Has 



Station At Thomasboro 



Manager R. G. Stewart of the Cham- 

 paign County Service Co. announces that 

 Francis C. Irle of Thomasboro has leased 

 a station located on route 25 at the inter- 

 section of the main street of Thomas- 

 boro, and will handle SERVICE petro- 

 leum and Brunswick tires. 





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L A. A. RECORD 



