for us to know the quantity of American wheat that is used in Cuba. I am sure that the gentleman realizes the importance of that. Mr. HOPE. Yes. Mr. COOPER. In its final analysis, the Cuban people have a right to use the kind of flour that they want to. Mr. HOPE. Yes. No question about it. Mr. COOPER. The test is as to whether or not our wheat produces the type and kind of flour that they use down there, whether it suits their wishes and desires. Mr. HOPE. Yes. Mr. COOPER. Of course, if they are not going to use our flour, any how, then that would not enter into it to such a great extent. The important thing, as I see it, is this, to find out definitely how much of our wheat, how much of our flour, has been used by Cuba since this very provision has been in the bill. My understanding is this provision was put in the bill in 1930. It has been in since 1930? Mr. HOPE. That is correct. Mr. COOPER. Then will you please supply the committee with the information as to how much American wheat flour has been used by Cuba since we have had this provision here, that is in the interest of the American people. Mr. HOPE. I shall be very glad to do that, but let me say this, that, while that is important, that is only one item. I anticipate that, if this bill becomes a law, that is the intention of the administration to make these reciprocal treaties with other nations. Cuba is not the only opportunity we are going to have to expand the market for American agricultural products. Suppose we make a treaty with France? If we take this provision out of the law, it means that the Buffalo miller is going to be able to send Canadian wheat over there in place of American wheat. There is no question about the French desire or ability to consume American wheat, because France has been, until the last 2 or 3 years, when they have been growing their own wheat, one of the best customers we have had for American wheat. The same thing is true of England, and all the continental European countries. There is no question about their desire or ability to consume American wheat. I merely mention Cuba as an example of a country with which we had a reciprocal tariff. Mr. VINSON. Following out that thought, that is just the reason I thought the gentleman would be happy to see this sort of legislation put on the books. Mr. HOPE. I will not be happy to have this provision stay in. Mr. HOPE. I have not committed myself on this bill. I will say to the gentleman I look with considerable favor on the idea of expanding the market for American agricultural products. If the gentleman can convince me that this bill is going to do it, I will say that I will listen very favorably to what he has to say. Mr. DICKINSON. Did not the 336 go in there having regard not only to Cuba but to other nations to whom our wheat was sold? Mr. HOPE. Yes. Mr. DICKINSON. Did it not go in there largely at the instance of wheat growers and the millers of the West? Mr. HOPE. That is true. If my memory serves me right, the heads of some of the farm organizations appeared before the Ways and Means Committee at that time, urging this legislation, and the milling organizations did at that time. Of course, Cuba was the most conspicuous example of the advantage which the Buffalo miller of Canadian wheat has, because Canadian wheat was going in there and displacing American wheat at that time. It was very easy to show that. Mr. DICKINSON. It was agitated 3 or 4 years ago. Mr. HOPE. Yes, at the time of writing the 1930 tariff act, there was a great deal of discussion on this very thing. Mr. COOPER. I understand then, that you are going to supply the data that has been requested? Mr. HOPE. I shall do that at the very earliest possible moment. The CHAIRMAN. We thank you for your appearance. Mr. HOPE. I thank the committee for its attention. (Mr. Hope subsequently submitted the following information:) WASHINGTON, D.C., March 14, 1934. Hon. ROBERT L. DOUGHTON, House of Representatives, Washington, D.C. DEAR MR. DOUGHTON: When I appeared before the Ways and Means Committee on the 10th instant, I was requested to secure from the Tariff Commission such information as they had covering exports of flour from the United States to Cuba, segregated as to flours milled from American wheat and that milled in bond at Buffalo from Canadian wheat. I am herewith enclosing the information which the Tariff Commission has furnished me on this question, and am also enclosing certain information which I have secured from the Bureau of Agricultural Economics showing the difference between wheat prices in Canada and the United States during the period from 1924-25 to date. I am submitting these figures as to prices because I think they furnish an explanation as to why exports of milled-in-bond flour continued to increase after the passage of the 1930 Tariff Act. As the members of your committee will note in comparing these wheat prices, while Canadian prices are practically always lower than domestic prices this difference has been much greater since 1930 and no doubt accounts for the fact that this wheat can be milled in bond and still undersell American flour in Cuba notwithstanding the preference. Permit me, however, to again call attention to the fact which I mentioned in my remarks before the committee, that the Cuban situation is only one which may develop in the event that the President is given power to negotiate reciprocal treaties. Certainly in the negotiations of such treaties every attempt should be made to provide a market for the American rather than the Canadian farmer, which latter would undoubtedly be the situation if the third paragraph of section 311 of the act of 1930 were disregarded. Very sincerely, Hon. CLIFFORD R. HOPE, CLIFFORD R. HOPE. UNITED STATES TARIFF COMMISSION, House of Representatives, Washington, D.C. MY DEAR MR. HOPE: I am enclosing herewith a table showing the exports of wheat flour from the United States to Cuba for the years 1923 through June 1933. This table shows the total barrels exported to Cuba, together with the exports from New York; from New Orleans, Galveston, and Mobile; and from all other ports. The trade states that practically all of the exports to Cuba through New York are from milling-in-bond operations at Buffalo. This table is being sent to you in lieu of the information which you requested by telephone this morning as to the amount of wheat which had been imported for milling-in-bond and export to Cuba inasmuch as complete data on such imports are available only for 1932 and 1933. In these years the exports were as follows: The quantity of wheat so imported in 1932 was approximately equivalent to 556,000 barrels of flour and in 1933 to 586,000 barrels of flour. Very sincerely yours, ROBERT L. O'BRIEN, Chairman. 1 Includes small quantities from Baltimore, Philadelphia, and Buffalo. NOTE.-The Cuban duty on imported wheat flour, including an import consumption tax, is $1.49 per barrel if imported from the United States, and $2.13 if imported from other countries. In addition, there is on all flour a 5 percent ad valorem consular charge on an f.o.b. basis, and a 12 percent ad valorem sales tax on a duty-paid basis. UNITED STATES DEPARTMENT OF AGRICULTURE, Hon. CLIFFORD R. HOPE, House of Representatives. DEAR MR. HOPE: In response to your request of today, we are sending you herewith the following: Tables: Wheat: Average price per bushel of specified grades at markets named, 1924-25 to 1932-33. Wheat, No. 3 Manitoba Northern: Average cash price per bushel at Winnipeg, in terms of United States money, 1924-25 to 1933-34. Chart: Wheat: Prices, price margins, tariff level, and imports. Neg. No. 22093-B. Sincerely yours, NILS A. OLSEN, Chief of Bureau. Wheat: Average price per bushel of specified grades at markets named, 1924–25 to Wheat, No. 3 Manitoba Northern: Average cash price per bushel at Winnipeg, in terms of United States money, 1924-25 to 1933-341 Crop year 1924-25.. Aver July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June age Cents Cents Cents Cents Cents Cents Cents Cents Cents Cents Cents Cents Cents 157 1925-26 153 160 132 120 146 144 144 143 p. 419. 1 Average of daily cash closing prices, basis, in store at Fort William and Port Arthur. NOTE.-Division of Statistical and Historical Research. Taken from the 1933 Yearbook of Agriculture, TABLE 6.-Wheat-Weighted average cash price at stated markets No. 4 2 Cents Cents Cents Cents Cents Cents Cents Cents Cents Cents Cents Cents ដរ 1 Weekly average of daily cash quotations, basis no. 1, sacked, 30 days delivery. 2 High and low for period (Nov. 4-Dec. 23, 1932 and 1933). TABLE 7.-Wheat-Price per bushel at specified markets, in terms of United States currency, by weeks, November 1933-January 1934 7 Decreed minimum price for free station Brandenburg, certain districts. Prices are averages of daily prices for weeks ending Saturday except as follows: Great Britain prices of home-grown wheat are averages for the week ending Saturday; Berlin, Paris, and Milan prices are Wednesday quotations. Prices at Winnepeg, Buenos Aires, Liverpool, Great Britain, Berlin, Paris, and Milan are converted to United States money at the current rates of exchange. THE CONTINENTAL EUROPEAN WHEAT MARKET SITUATION DURING DECEMBER 1 Despite the approaching holidays, trade on the Continent in both domestic and foreign wheats remained very quiet during December. A fair volume of foreign wheat was turned over in Belgium and Holland but grain movements in central Europe were greatly handicapped by the freezing up of inland waterways. Domestic wheat prices in most of the continental countries were generally stable during the first 3 weeks of December though here and there slight weaknesses developed. Rotterdam futures prices of foreign grain were slightly downward during most of the month, as a result of a slow flour business and reports of unsatisfactory consumption. Stocks in some of the principal ports have shown a decline but internal stocks in most countries are far above average. 3 In warehouses and flour mills (wheat and flour); these totals are estimated to include 95 percent of the secondhand stocks actually existing and, therefore, must contain most of the Berlin, Hamburg, and Bremen-Brake data. Preliminary. Germany.-Business on the German wheat and flour markets during the month of December was very quiet and trading was hampered by the freezing of internal waterways. Farm offerings increased, but, despite the approaching holiday, flour consumption was disappointing and the demand for wheat on the part of the flour mills was a hand-to-mouth character. Mr. COOPER. Representative Wilcox, of Florida, has handed me a written statement which he desires to appear in the hearings, and I ask permission to insert it in the record. The CHAIRMAN. Without objection it will be inserted in the record. The chair will state that hearings will be resumed again Monday morning at 10 o'clock, with the intention of closing the hearings Monday. The committee will stand adjourned until 10 o'clock, Monday morning. (The matter above referred to is as follows:) STATEMENT OF HON. J. MARK WILCOX, A MEMBER OF CONGRESS FROM THE STATE OF FLORIDA Mr. CHAIRMAN AND MEMBERS OF THE COMMITTEE ON WAYS AND MEANS: In the consideration of H.R. 8430, a bill to amend the Tariff Act of 1930, I desire to call the attention of the committee to certain facts relating to agricultural products of my State. The purpose of the bill, as I understand it, is to give to the President power and authority to negotiate reciprocal trade agreements between the United States and other nations, whereby the tariffs upon importations to this country may be Based on a report of Donald F. Christy, assistant agricultural attaché, Berlin, Germany, Dec. 23, 1933. |