extend the advantages through the unconditional most-favored-nation clause to the many from whom we secure no reciprocal benefit. Every trade agreement negotiated so far has been for the maximum permissible period of 3 years. We are now controlled by those arrangements which will automatically continue in force even if the Reciprocal Trade Agreements Act is not renewed and these agreements can only be abrogated on a 6 months' notice on the part of either contracting parties. Second, however, if after careful consideration of all factors by your honorable body it is the judgment of your group that this act should be extended, we urge that prudence suggests at least two reasonably precautionary limitations: 1. Confine them to bilateral agreements with particular nations from which specific reciprocal advantages are obtained, and 2. Submit the ultimate agreement proposed to the only final protection afforded ander our representative institutions, ratification by the Senate of the United States. We are not urging upon your honorable committee a disapproval of the principle of reciprocal-trade agreements. We are urging that it is not a safe time in which to make them unless they are to be bilateral, and, for the present at least, subject to ratification or rejection by the Senate. The CHAIRMAN. Thank you very much. Senator CLARK. Mr. Young, you were not with the National Association of Manufacturers during the old Mulhall days, were you? Mr. YOUNG. No, sir. Senator CLARK. The gentlemen whose allegations of corrupt activities on the part of the National Association of Manufacturers was the cause of considerable scandal and a senatorial investigation. That was before your day? Mr. YOUNG. That was before my time. The CHAIRMAN. You are not going to let it get into that fix again? Mr. Young. All I can tell you is this, that the membership of the National Association of Manufacturers, as I have known them, are sincerely trying to cooperate and work out the things that they think are for the best interests of the majority of the people. The CHAIRMAN. I appreciate that. The next witness is Edward A. O'Neal representing the American Farm Bureau Federation. STATEMENT OF EDWARD A. O'NEAL PRESIDENT, AMERICAN FARM BUREAU FEDERATION The CHAIRMAN. Mr. O'Neal, you appeared before the House Ways and Means Committee? Mr. O'NEAL. I did. The CHAIRMAN. How many are numbered in your group in the American Farm Bureau Federation? Mr. O'NEAL. The paid membership of the American Farm Bureau Federation is about 400,000 families, or approximately 1,500,000 individuals, in 39 States. In our membership, Senator, the head of the family pays the membership fee and the wife and the children belong, so I say that we speak for at least a million and a half farm people. The CHAIRMAN. What are your views on these reciprocal trade agreements? Mr. O'NEAL. I would like to say, Senator, that the Board of Directors of the American Farm Bureau from various sections of the United States, have been in session and are in session now, and I would like for vice president Earl Smith of Illinois and the president of the Illinois Agricultural Association, the largest farm organization within the 48 States, to make this statement for the American Farm Bureau Federation, supplementing the statement I made before the House Ways and Means Committee (pp. 1668-1722, hearings, Ways and Means Committee). I will be right here and will be glad to answer any questions. I would like to insert in the record at this point the full text of the resolution adopted without a dissenting vote at the annual meeting of the American Farm Bureau Federation, Chicago, Ill., last December. The CHAIRMAN. The resolution will be incorporated in the record. TRADE-AGREEMENTS POLICY Recognizing the fact that our tariff policies had failed to protect the domestic price of basic farm commodities generally produced in surplus volume in this country, and further that such policies had contributed to the disparity that had developed between farm prices on the one hand and industrial prices and wages on the other, the American Farm Bureau Federation in 1934 authorized its board of directors to support legislation permitting the negotiation and consummation of reciprocal trade agreements with other nations; insisting, however, that in negotiating such agreements no concessions be made which might have the effect of reducing or holding the domestic price of any agricultural commodity below the parity level. The federation recently sponsored a study by recognized economists of the economic effects of all important existing trade agreements. This study seems to reveal that there has been a substantially larger increase in exports to agreement than to nonagreement countries, and that there has not been any appreciable difference in the percentage of increase in imports from agreement and nonagreement countries. Many factors have no doubt contributed to this increased trade, including our gold policy and a general upturn in world business. From all facts thus far available, it appears that while the greatest portion of increased exports has been in industrial products, from which agriculture has only indirectly benefited, yet this study, together with other information available to the federation, reveals that the net effect of the agreements has been helpful rather than hurtful. In giving our support to the continuance of reciprocal trade agreements, we renew, with increased emphasis, our demand that no agreement be consummated, the effect of which might be to force or hold domestic prices for any farm commodity below parity level. Any other course would justify the condemnation of and opposition to such agreement by all agricultural groups. We further insist that in the negotiation of trade agreements, economic factors be given consideration equivalent to the weight accorded to the factors of diplomacy and statecraft. To this end we urge that the Reciprocal Trade Act be amended to provide that no agreement be consummated unless unanimously approved by the Secretaries of State, Commerce, and Agriculture. Mr. O'NEAL. I would also like to invite the attention of the committee to the study of the effects of the trade-agreements program on agriculture during the past 6 years, which was made by the economics department of the Iowa State College of Agriculture under the direction of Dr. Schultz. The full text of this report appears on pages 1722-1837, Hearings, House Ways and Means Committee, January 26, 1940. The CHAIRMAN. Very well. We will hear from Mr. Smith. STATEMENT OF EARL C. SMITH, CHICAGO, ILL., PRESIDENT, ILLINOIS AGRICULTURAL ASSOCIATION, AND REPRESENTING THE AMERICAN FARM BUREAU FEDERATION Mr. SMITH. I think Mr. O'Neal has indicated who I am, so to save your time I will not repeat. As indicated by our president, the board of directors of the American Farm Bureau Federation has been in session in Washington for several days, and today unanimously authorized the following statement on the question before your committee: House Joint Resolution 407, extending the power of the President to negotiate reciprocal trade agreements, is now pending before your honorable committee. At hearings on this resolution held by the House Ways and Means Committee, Edward A. O'Neal, president of the American Farm Bureau Federation, pursuant to and in accordance with a resolution adopted by the house of voting delegates of our organization, supported the principle of reciprocal trade agreements and insisted that House Joint Resolution 407 be amended to require that all treaties consummated thereunder have the approval of the Secretaries of State, Commerce, and Agriculture. The House of Representatives adopted House Joint Resolution 407 without such amendment. In support of the position taken by President O'Neal, the board of directors of the American Farm Bureau Federation, in session at Washington, March 1, 1940, respectfully requests your committee to consider the following: The American Farm Bureau Federation supported the original Reciprocal Trade Agreements Act in 1934 and its extension in 1937. Everyone recognizes that the issue is exceedingly important and highly controversial-in the consideration of which, reason and economic evidence are likely to be subordinated to emotion and political bias. Because of the importance of the issue, the American Farm Bureau Federation recently sponsored a comprehensive study of the economic effects of trade agreements on this country. This study seemed to indicate that, while no spectacular results have been achieved, the net effects of trade agreements have been helpful rather than hurtful to American agriculture and to the Nation. The house of voting delegates of the American Farm Bureau Federation at its recent annual meeting, after careful deliberation, concluded that reciprocal trade agreements are sound in principle, but that in supporting provisions of law to continue authority for negotiating such treaties, safeguards should be included to insure that economic factors be given at least equal weight with factors of statecraft and diplomacy. Therefore, in official resolution they urged that no trade agreements be consummated without the approval of the Secretaries of State, Commerce, and Agriculture. It is recognized that the extension of the act will probably provide the basis of our national foreign trade policy at the conclusion of the present European war. Furthermore, no one can anticipate who in the future will have the power and responsibility for carrying out the purposes of the Reciprocal Trade Agreements Act. The broad economic effects of these policies will be of tremendous consequence to the nation, and particularly to industry and agriculture. For these and other equally good reasons, therefore, while we reaffirm our faith in the broad principles of reciprocal trade, nevertheless we insist that, to merit support during enactment and defense thereafter by the American Farm Bureau Federation, House Joint Resolution 407 be amended so as to require that all trade agreements negotiated thereunder have the approval of the Secretaries of State, Commerce, and Agriculture. Respectfully submitted by AMERICAN FARM BUREAU FEDERATION. Edwin A. O'Neal, President, Alabama; Earl C. Smith, Vice President, I believe, Mr. Chairman, that this statement is self-explanatory, and with your permission I would like to file it with you and ask one of my associates to furnish the various members of your committee with a copy of the statement. (At the request of Senator Johnson, the following resolutions regarding the Reciprocal Trade Program were inserted in the record:) RESOLUTIONS ON RECIPROCAL TRADE TREATIES (FARM BUREAUS) Whereas reciprocal trade agreements as drafted by the State Department have as a worthy objective the fostering of better relations between the United States and foreign countries but many of which have provisions detrimental to the best interests of United States agriculture, and Whereas under the procedure followed by the State Department in the formulation of reciprocal trade agreements no adequate opportunity is provided whereby agriculture may exert the influence to which it is justly entitled, and Whereas we believe that our representatives in Congress are in a better position to realize the effect of proposed trade treaties on their constituents; now, therefore, be it Resolved, That the Arizona Farm Bureau Federation go on record as being in favor of such national legislation as will require the ratification of proposed reciprocal trade agreements by the United States Senate before such trade treaties become effective. CALIFORNIA FARM BUREAU, JANUARY 9, 1940 Resolved, That we believe the reciprocal trade agreement legislation should be permitted to die on June 30, next, and that we urge California Senators and Representatives to support this procedure. COLORADO STATE FARM BUREAU, BURLINGTON, NOVEMBER 16-17, 1939 Favoring the McCarran bill, which provided that no foreign trade agreement under the 1930 Tariff Act shall take effect without ratification by a majority of the United States Senate. (Part of Resolution No. 1). MONTANA FARM ORGANIZATIONS, ST. PAUL, MINN., DECEMBER 15, 1939 Montana Division of the Farmer's Union Resolved by, the representatives of the Northwest Farmers Union activities in annual convention at St. Paul, Minn., December 15, 1939, That Whereas because of various conditions arising out of drought and extremely low prices over the years, farmers of the Northwest have not only become deeply indebted to the agencies of the Federal Government and to other groups, but they have been losing their homes by the thousands and are still in the process of losing their homes, and Whereas because of the above-mentioned facts, farmers have arrived at an economic condition wherein they are desperately endeavoring to better their condition through cooperative marketing and compliance with the triple A in reducing their acreages and livestock herds, and Whereas such conditions and circumstances will permit of no further deflation of prices or other contingent conditions or proposals which are likely to bring about further lowering of prices, nor admit of competition with the products produced in this section, and Whereas American agriculture, throughout the history of tariff legislation has been sold down the river for the benefit of other groups; therefore be it Resolved, That we are in favor of the philosophy of the reciprocal trade agreement as the most likely assurance to bring international cooperation and peace, and further Resolved, That we are opposed to the consummation of any Federal trade agreements which have in their provision agreements admitting livestock or livestock products, grain or grain products, or poultry products, or dairy products, or any other agricultural products which can be efficiently produced in this country and which may directly or indirectly have a bearing on the supply of said products, or which may have a tendency to depress farm prices, and further Resolved, That we believe it against the public interest to repose in a single authority the responsibility for effectuating reciprocal trade agreements and that the public interest will be best served by a requirement that all proposed reciprocal trade treaties be subject to the review and approval of the United States Senate, and further Resolved, That copies of this resolution are directed to be placed in the hands of the Senators and Congressmen of the States of Montana, North Dakota, Minnesota, and Wisconsin, and of the Northwest Farmers Union legislative committee, and that a copy thereof be sent to Secretary Wallace, Secretary Hull, and to the committee in Washington which has been holding hearings on the Argentina trade agreement. NEBRASKA FARM BUREAU, LINCOLN, DECEMBER 11-12, 1939 In negotiating reciprocal trade agreements, industrial goods must not be given benefit at the expense of agricultural commodities, and no tariff rates should be reduced on farm commodities, the price of which is below parity. NEW MEXICO FARM AND LIVESTOCK BUREAU, 1939 (ANNUAL MEETING) We are opposed to any reduction of tariff on livestock or livestock products and urge our representatives in the National Congress to use their best efforts in seeing that such reductions are not made under pending or proposed reciprocal trade agreements. OREGON FARM BUREAU FEDERATION (NO DATE) Commend the American Farm Bureau for its statement filed with the Federal Committee for Reciprocity Information concerning the proposed Argentine trade treaty. Endorse the general policy of the American Farm Bureau Federation with respect to trade treaties under which the federation supports the principle of trade treaties but oppose any specific treaty which has the effect of reducing the price of agriculture and livestock commodities below perity prices. We further oppose the renewal of the Trade Treaty Act unless adequate protection can be assured to agriculture through proper hearing in negotiating such treaties and they be retified by the United States Senate. We reaffirm our belief in the principle of the American market for the American farmer. SOUTH DAKOTA FARM BUREAU, SIOUX FALLS, NOVEMBER 20-21,1939 We demand that adequate tariffs be maintained especially on agricultural commodities not produced in the United States but which when imported are made into products which come into direct competition with products made from domestic agricultural commodities. WASHINGTON FARM BUREAU, ELLENSBURG, NOVEMBER 22, 1939 recommended the enactment of any increased tariffs which would bring lands not now in use into the domestic production picture and commended the American Farm Bureau for requesting that duties on imported meats be increased 50 percent. WYOMING FARM BUREAU, NEWCASTLE, OCTOBER 30-31, NOV. 1, 1939 Whereas the Farm Bureau is a Netion-wide organization representing widely diverse interests and all types of agricultural activity, and Whereas because of this scope it becomes necessary to clearly define our views on all matters of vital interest to our vocation, and |