NEW DEAL: LATER STAGES 53 x 



normal channels of trade and finance, the maladjustments in agriculture 

 and industry, and the pursuit by individual nations of "the perilous road of 

 narrow nationalism." We witnessed an era of high tariffs, quotas, import 

 licenses, exchange controls, barter arrangements, currency manipulation, 

 and many other devices to choke off world trade. The American contribu- 

 tion to this dilemma was the Smoot-Hawley tariff, "one of the most ill- 

 timed and costly pieces of legislation in the entire history of this country." 



Hull said that the farmers had benefited from the trade program. Over 

 the five-year period that these pacts operated, trade treaties were negotiated 

 that accounted for "practically three-fifths of our total foreign trade." Hull 

 pointed to the corn-hog industry as one that was becoming heavily de- 

 pendent on export outlets again; barriers against American bacon, pork, 

 and ham had been retained in ten countries; nine countries reduced their 

 barriers on American lard, and three others agreed not to impose them; 

 the removal of the burdensome duty by Britain was considered an achieve- 

 ment of first importance. Also, grain and grain products were reported 

 flowing into foreign lands. According to Hull, American trade with trade- 

 agreement countries had grown by almost 50 per cent, while that with 

 nonagreement countries had either failed to increase or else had declined 

 slightly. He held that the recovery of the foreign market was essential to 

 the recovery of American agriculture, but it was apparent that the out- 

 break of the European war in 1939 confronted the nation "with severe 

 new trade restrictions in many countries." ! 



Late in 1938 it was plain, even to the most casual observer, that a new 

 frontal assault would be launched against the existing farm legislation 

 with the avowed purpose of placing a new measure on the statute books 

 when Congress convened in January. In order to speed up and encourage 

 the drafting of the new measure, various farm organizations had already 

 made known their plans for convening in Washington. It was then said 

 that their aim was to pass a law "to free the farmers from restrictions on 

 production and to increase their incomes." 



Reports had it that administration leaders favored retaining the con- 

 trol features of the existing law but nevertheless welcomed changes, es- 

 pecially if they would make the program more effective. Wallace wanted 

 processing taxes to raise the needed funds to finance the program and a 



83. New Yor^ Times, December 6, 1939. 



