The sales program for 1929 saw the continued production of the Scout, Chief, and Four with but details changed only from the previous year, the most notable being the fitting of a front wheel brake to the Chief. The Prince was discontinued, mainly due to lack of dealer emphasis as most of them were now concentrating on sales of the Scout.
Another significant reason for the Prince's demise, however, was the declining market for American machines in the export field, which came about through a rather complex set of changes in the international trading picture, and which was to have a further depressing effect on the already troubled domestic motorcycle industry.
The United States had emerged from the war virtually unscathed, aside from some 50,000 casualties, which were minimal when compared to the losses in manpower suffered by the European and English combatants. The vast postwar economic growth enjoyed by the United States had resulted in the retirement of the bulk of the war debts by 1926, and a year or so later the country was enjoying unprecedented prosperity. Wage earners, professional and business men, together with a myriad of companies and corporations, were all enjoying healthy incomes. The only exception were those engaged in agriculture.
Due to an overproduction of foodstuffs, receipts for various crops remained low, but at the same moment the farmers' costs for machinery, fertilizer, and general consumer goods were constantly rising, due to the pressures of a growing inflation. The price of farm products was kept low due to the lack of protective tariffs, and many foodstuffs were concurrently being imported to compete with domestic products.
There was much pressure in Congress after 1926, especially from the midwest farm bloc, to institute high protective tariffs for the benefit of agriculture. This resulted in the drafting of the McNary-Haugen farm bill, so named for its congressional sponsors, which, among other things, called for increased tariffs against foreign products, graduated price supports for domestically-produced agricultural products, together with projected government purchase of surplus foodstuffs for resale on foreign markets.
A politically expedient bill that had aroused much popular support, it easily passed both Houses of Congress in the Fall of 1926, but was vetoed by President Coolidge, who was adamantly opposed to any government interference or participation in private business. The bill was again presented to him in 1927, and again in 1928, with the same result. But in 1929, newly elected President Herbert Hoover signed the bill into law, amid much general rejoicing.
The immediate result was the retaliation on the part of many foreign governments by the erection of high tariff barriers against American manufactured goods, especially motor vehicles. This state of affairs particularly affected the Indian company in the Australasian markets, where Indians had long been popular sellers and from which had come vast quantities of beef and crop foodstuffs. The export of Indians ceased almost overnight with the new 25% import duty, together with a sharp increase in shipping costs. Indian's best remaining overseas markets were now South America and South Africa, which as yet had no significant vehicular manufacture.
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