The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-09-10
Ela DISCRIMINATION
! N ECONOMIC ALLIANCES
Nse1onAl Forc1gn Trade Council
Discusses Their Probable
= Eject
WOULD COME AUTOMATICALLY
Report cf Industrial Leaders sug-
Gcsts Study OF Treaty Making For
Projection OF Business OF United
6SaAes.

New York. Sept e.--The probable
erect OF European economic alliances
MP United States commerce is the sub
ject OF q report made public today
by the National Foreign Trade Coun-
Gil, Industrial leaders. The chairman
Of tho council is James A Farrell.
president of the United States Steel
Cooperation.
while some authorities contend"
says the report. that the commercial
preferences implied in the Paris reso-
buttons OF the entente allies are Inn
practical and will hatten under pres
sure OF the dependence OF European
nations upon each other including
their enemies. the present fact is that
two economic alliances have already
been created, for the war abrogated
the most-favored- nation relation be-
tween the powers now enemies
Investigation reveals that the Uni
ted States In the last normal year
before the war. 1919. sent 1891 per
cent OF Its exports 10 the belligerent
countries and derived 72s3 per cent
Of its imports from them. Therefore.
any sweeping change OF tariff. naviga-
ton or financial policy OF either group
Of allies may seriously affect the pros
psrtty Of the United States, in which
foreign trade is vital element
An Automatic Discrimination.
The foreign trade OF the United
etates for a century has Increased In
q world OF relaxing trade restrictions.
II the members Of either tho allied or
tA> Central Economic Alliance seek
= By difrerenual tariffs to prefer each
other and their respective colonies.
dissemination against the products
OF tho United States will automatical-
" be created. II special shipping ar
rAueements are carried so far as ar
t4do3Aliy to create lower freight rates
fUr al1ied than for neutral commerce.
thn parity OF ocean freight charges
70 ana from American ports as com
parad with to and from European
ports. which has been one cause OF
federation of American dependence
upon foreign carriers will be disturb
ID.
Tho report says: Appreciation of
the necessity OF retaliatory weapons
II the great industrial nations should
embark upon a policy of trade prefer
ence and determinations Is indicated
in recent American legislation" The
present United States tariff Is descrie-
ed as barren of resources for conces-
sion or retaliation.
More treaty making" continues
the report will be in progress In the
five years after the declaration or
peace than in any similar period OF the
worlds history. The most favored ma
ton relation which European govern
ments have permitted the United
States to enjoy despite frequent Amer
lean tariff changes and the extension
of American tariff preferences TO
Cuba and to the colonies acquired
from Spain, may not escape jeopardy.
study Treaty Situation.
Even with no European dispost-
ton to discriminate certain changes
will be inevitable. The State Depart
ment now lacks. but should immed-
lately provide skilled resources for the
study OF the entire treaty situation,
The education of American public
opinion to treaty legislation Ia i'm
perative. Their parliamentary system
gives European governments gu
perior efficiency in treaty m aking as
compared with the United states The
history of commercial tres ties il
marked by frequent senatorial disre-
gard OF recommendations Of the State
Department The necessity OF two
thirds Senate vote for ratification re-
quirss that treaties hereafter be so
drawn as to command general APP
proval, a dttficult task which can he
accomplished only by the most care
full consultation OF public opinion
prior to negotiation. the most skillful
handling Of the American case in the
diplomatic exchanges and convin cling
presentation OF the facts In order to
command sentiment in favor OF rati-
fcation and maintenance OF the
treaty obligation afterward."
Discussing the pledge of the entente
Allies at the June Paris Economic Con-
ference to effect special agreements
for the interchange of raw materials
before ali other countries. tho report
says:
Nest From Allied Nations.
The sslf-surioienoy OF the allied
group 10 the logical goal of this
Agreement precisely as British I'm
pertAi seif-sufrioiency was the goal of
the Chamberlain policy. Leaving aside
the problem OF whether the United
- Kingdom will consent to tax on
food the question 10 whether such a
policy adopted by all the allied group
would deprive the United States of
any Of its present outlet for foodstuffs
or raw materials. The United Colonial
and Russian production OF foodstuTs
and raw materials was not equal to
the ante-bellum necessities Of the al
lies. Would q preference stimulate
production TO the point Of self SUI
nciency? II tho allies were obliged
Sill TO depend upon Their own raw
materials admitted TO the consuming
allied countries at q lower tariff rate
than those of neutral or enemy origin.
wosld not the price End common
Ievslr'
The report shows that Of 213 com
modities ~ an import value of more
than n million dollars in 1913. 12l
were principally imported from nations
of the allies including colonies. while
only 40 came principally from the ex-
tensive importations from British col
onies The United Kingdom appears
AZ times among the countries OF prin-
cipal supply and Germany as times.
OF ls6 commodities OF an export
value OF more than two million dol
lars IN 1tis, members of the allied
group were principal buyers AGA
times. the Central Powers II times
and neutrais 10 times. Canada alone