Senator BARKLEY. That would make some difference? The CHAIRMAN. You spoke of having a very broad knowledge of the West and its sentiments about a continuation of the reciprocal trade agreements. You have not tried to create any sentiment to kill off this continuation? Mr. MOLLIN. I have tried to carry out what has been the policy of our association for many years. I attend many meetings in the West, and I am generally on the program, and I generally talk about the reciprocal trade agreements and give the facts. The CHAIRMAN. And you are very efficient. Mr. MOLLIN. I don't know about that. The CHAIRMAN. But you have taken quite a good deal of interest in stirring up opposition to the reciprocal trade agreements. Mr. MOLLIN. If you call that stirring up opposition, I have been asked The CHAIRMAN (interposing). Oh, you have a perfect right to do it. Mr. MOLLIN. I have been asked many times to speak on that subject, and when I do speak on that subject, I naturally give the views that I believe in. The CHAIRMAN. And when anybody writes to you, you acknowledge it and naturally give your views? Mr. MOLLIN. Yes, sir. The CHAIRMAN. And when any paper asks you for your views, you gladly express yourself? Mr. MOLLIN. Yes. The CHAIRMAN. And when the political organization of which you are a member asks you to donate something and throw some light on the subject, you do it? Mr. MOLLIN. Yes; anybody can have it. The CHAIRMAN. That is all. Senator CLARK. In reference to what Mr. Mollin said in regard to unemployment and the total purchasing power of industry, I would like to put some figures in the record. These are from the United States Department of Commerce, National Income Section, Division of Economic Research. Wages and salaries in the manufacturing industries rose from $7,400,000,000 in 1932 to $12,600,000,000 in 1939. In 1933 it was $7,463,000,000; in 1934, $9,311,000,000; in 1935. $10,494,000,000; in 1936, $11,878,000,000; in 1937, $13,965,000,000; in 1938, $11,155,000,000, and as I said a moment ago, for 1939, $12,600,000,000. Now, Mr. Mollin, don't you think that that increase income in industry necessarily reflected some benefit to agriculture? Mr. MOLLIN. It might be. Senator CLARK. And therefore an increased foreign trade by industry is also to be considered in determining the effect on agriculture in this country, is it not? Mr. MOLLIN. I suppose you can argue both ways as to which is the most important and which comes first. But agriculture is still very much in distress. Senator CLARK. Do you think agriculture would be better off if we built a Chinese wall around this country? Mr. MOLLIN. No. Senator CLARK. That is what you do if you prohibit the imports of anything until you consume 100 percent of the domestic production. Mr. MOLLIN. But I cannot see at all this argument of reducing the tariff on commodities that are already in distress, or on any other commodity that is a competitive commodity. I do not see how you can maintain the American standard of living on that basis. This market is the envy of the whole world; everybody wants this market. There is not anything like it in the world. The CHAIRMAN. Thank you very much. The committee will recess until 10 o'clock tomorrow morning. (Whereupon, at 4:15 p. m., a recess was taken until Thursday, February 29, 1940, at 10 a. m.) EXTENSION OF RECIPROCAL TRADE AGREEMENTS ACT THURSDAY, FEBRUARY 29, 1940 UNITED STATES SENATE, The committee met, pursuant to recess, in the Finance Committee room at 10 a. m., Senator Pat Harrison (chairman) presiding. The CHAIRMAN. The committee will come to order. The first witness this morning is Mr. F. R. Marshall, secretary of the National Wool Growers Association. STATEMENT OF F. R. MARSHALL, SECRETARY, NATIONAL WOOL GROWERS ASSOCIATION Mr. MARSHALL. My name if F. R. Marshall. I reside in Salt Lake City, Utah. I am secretary of and speak for the National Wool Growers Association. I am also a wool grower myself; in fact, all of the debts I have incurred were incurred in an effort to demonstrate what I thought was my superior knowledge of growing wool. So far, I have only the debts to show for it. Our association is the oldest agricultural organization in this country. The president of our association is Mr. C. B. Wardlow, of Texas. He was scheduled to appear, but found that he could not. Likewise, the secretary of the Wyoming Wool Growers Association is present. He was scheduled, but he has authorized me to state that he has read my statement and would adopt the testimony as though it were his own. As I understand it, the matter before the committee is House Resolution, 407, the joint resolution, which was passed by the House last Friday? The CHAIRMAN. That is right. Mr. MARSHALL. So that you may know for whom we attempt to speak, ours is the oldest agricultural organization in this country. It consists, mainly, of an affiliation of associations in the 13 so-called range States, including Texas. There are no other similar organizations in these States. The 13 States have 33,814,000, or 69 percent, of all sheep in the United States. There are about 100,000 sheep owners in these States. In the unorganized States, or those not affiliated with the national body, there are over 500,000 owners with 31 percent of the total sheep population, or 14,600,000 head. 251 215171- -40- -17 On January 25, in its seventy-fifth annual convention, our association adopted by unanimous vote this statement: 2. TRADE TREATIES During the past year we have observed the detrimental effect on the woolgrowing industry by reason of the trade agreements negotiated with Great Britain and Canada, and the proposed trade agreement with Argentina. They have deprived the citizens and taxpayers of this country of their own markets to the advantage of Great Britain, and the anticipated trade agreement with Argentina has adversely affected the demand for the coarser wools and mohair. We again place ourselves on record as opposing the Reciprocal Trade Agreements Act and demand that it be permitted to lapse on June 12, 1940; that the terms of the Constitution of the United States be complied with wherein all acts pertaining to revenue originate in the House of Representatives, and that all treaties be approved by the Senate of the United States before becoming effective. The CHAIRMAN. Has that been the policy of the Wool Growers Association for the last 15 years? Mr. MARSHALL. I do not think it goes back as far as that. The CHAIRMAN. Since the Reciprocal Trade Agreements Act, it has been opposition? Mr. MARSHALL. Oh, yes. The CHAIRMAN. You were against the policy then? Mr. MARSHALL. Yes, sir. The CHAIRMAN. You were against it in 1937? Mr. MARSHALL. Yes. The CHAIRMAN. And you are against it now? Mr. MARSHALL. Yes. We are at least consistent, I think. The CHAIRMAN. Were you with the organization in the same capacity that you are now, in 1922? Mr. MARSHALL. I held the same position in 1920 and 1921, and was here a good deal when the Fordney-McCumber bill was written, and a great deal when the Hawley-Smoot bill was written. The CHAIRMAN. Did you approve of the rates in the Fordney-McCumber tariff? Mr. MARSHALL. We did not get quite what we were entitled to, but we were glad to get that much, and the same about the SmootHawley. The CHAIRMAN. What did you advocate at the time of the FordneyMcCumber? Mr. MARSHALL. I cannot recall clearly. I think we got 31 there. I think our figures on the basis then employed seemed to us to indicate a justification of 35 or 36 cents. In the Smoot-Hawley, while we got 34 finally, we submitted to the committee a record of the difference in cost production which showed about 40 cents as the best we could compute at that time. The CHAIRMAN. I understood that what was enacted in the SmootHawley bill was what you suggested, 34 and 35? Mr. MARSHALL. No; we had suggested more than that. We gave figures which were the best that we could produce, to show the difference in cost production was around 40 cents, and the Congress gave us 34. That is on the principal grade, Senator. You must always remember, and it comes up in connection with the Argentine business, that there are parts of the imported wool that come in now at the rate of 29, and which were reduced in the Smoot-Hawley bill from 31 in 1930, and there are some other wools that come in under paragraph 1101 at the 24-cent rate, but the main duty is the 34-cent rate. |