New York Times, January I8t 1940. ,000,000 the income of -foreign countries from products and services deliv- ered to us; that is, their ability to repay out of their current business with us." Mr. Grady "had the witness stand himself today during the short pe- riod of the committee session. The committee recessed at the luncheon hour to give lis members an op- portunity to participate in the of- fering of amendments to the Inde- pendent Officers Appropriations bill from the floor of tho. House-'.' The hearings will continue tomor- row morning, with MrTp Grady again on the stand. Much of the assistant secretary's testimony was occupied with refut- ing suggestions that had been made, under the guise of questions, when Secretary Hull appeared be- fore the committee last Thursday and Friday. These dealt, for the most part, with Implied crlttalsms of particular items in particular trade agreements which have been concluded. Constitutionality Upheld In reply to the main lines of-the opposition to renewal of the Execu- tive authority to negotiate the agreements,'Mr. Grady took up the1 following points: 1. Constitutionality of, the not. Mr. Grady proposed for the record, and obtained permission to Include it, "^a study on that subject by Francis* B. Say re, former Assistant Secretary of State, whose place Mr. Grady took when Mr. Sayre was sent to the Philippines as High Commissioner. The gist of this study and of Mr. Grady's ownV'opin- ion-'is that the limited delegation of authority which Congress has con- ferred on the President during the' last three years is perfectly legal and has ample precedent to support 3. Senate ratification. This pro-! posed further limitation on the au-'j thorlty delegated to the Executive met Mr. Grady's hearty dlsap-: proval. He pointed to experience with Senate ratification, showing that only three reciprocal trade treaties—those with Canada In 1854, with Hawaii in 1875, and with Cuba In 1902—have ever been ratified by the Senate whereas twenty-two were negotiated and failed of rati- fication. On the other side of the ledger, he said, some twenty-six! trade agreements, not requiring Senate ratification had been suc- cessfully negotiated and operated before the twenty-two put Into ex- ecution under the present law. 8. Cost of production formula. Mr. Grady held that this possible limitation, under which no customs: duty could be lowered to a point where it would fall to equalize dlf- fererence in foreign and domestic production costs, is unworkable. 4. Most-favored-nation policy. The witness explained that this princi- ple has for its principal object the protection of American concessions gained from foreign nations, He summed up with a detailed statement that the trade agree- ments program has been positively beneficial to American agriculture and American labor. /A