New-York tribune., 1918-07-07

w concessions In other countries
In tho form Of lower rates OF
duty on our goods when exported to
these countries ns . device for the pro-
motion Of foreign trade? Should we
try to arrange commercial treaties or
reciprocity agreements on the basis OF
assuring to American commodities low
cr rates than are exacted on similar
commodities imported from third ,coun-
triesf
To simplify the matter. let US set
aside all arrangements based on par
ticularly close political ties or geo.
graphical contiguity. We have, for ex-
ample, arrangements by which our
commodities are admitted into Cuba at
lower rates of duty than commodities
from other countries. Those arrange
ments have political as we'll as an
economic aspect. They were introduced
and justified largely upon political
grounds - indeed, quasisentimental
grounds-namely, the close offiliation
between this country and Cuba result
ing from our Intervention in freeing
Cuba from Spain. Let Us set aside
also cases IN which an extended from
tier leads to special freedomN from du-
tics and tustiAes that freedom. Such
a relation exists between Portugal and
Spain, on to como nearer homo, be-
tween the United States and Canada.
Cases Of this kind present problems
Of their own. to be dealt with on
grounds Of their own. The question
of principle may be weighed quite on
lts economic merits, by examining a
special arrangement where there are
no such complication, or, rather, no
such plifcations. Consider, for
instance, the arrangement which we
how have with Brazil whereby certain
American commodities are admitted in
to that country at lower rates than
would be imposed were Hhe same COM
modities to reach Brazil from other
countries.
Here the test Of real effectiveness
may be applied. Special favors In
Brazil may enable US to sell our ex-
ports to Brazil, but they do not cause
us to be really effective in serving
either the Brazilians or ourselves. If
our exporters cannot sell in Brazil
without the discriminating rates, then
the exporters Of other countries are
obviously more effective in serving
them. Our exporters, then, are bolstered
UP, not at the expense of our domestic
customers or Of our own Treasury, as
III the case of export bounties or spe-
rial transportation rates, but at the
expense of the Brazilian consumers.
Lack Of real effectiveness on the part
OF the exporters is made up by the
exclusion Of the. more effective COM
pctitors. 1t Is case of sham effective
acss.
Trade Matter
OF Material Advantage
Tho governing conditions Of trade
n the world at large are not of the
sort upon which our relations with
Cuba rest. Trade in the main Is a
matter Of material advantage. In the
main we must export on the same
terms as our rivals. Special favors
can be justified only on the ground
that the countries which grant them
are willing to make a sacrifice for the
sake of carrying on a trade which Is
not the most advantageous for them
In the long run we must rely upon rea
effectiveness and real service. THAI
which is advantageous in our domestic
nsactions-namely, the maximum
effectiveness Of labor and capital IL
production--is advantageous in our for
eign trade, both to ourselves and t.
countries with which we trade. Herr
concerned, the only secure basis of 1
continuing export trade. To make ou
export trade enriching and Of real ma
tional profit we must SO organize an
conduct our industries that we shall
make goods plentifully and cheaply
and we must sell our goods on thei,
merits. and on tempting terms, to ever.
customer at the same price.
"This is by no means the same thin,
as to adopt a policy of laissez fair
in foreign trade. 1t does not impl
any commitment one way or the othe
on the question Of protection or fire.
trade. 1t does imply policy of non
discrimination, or at least one Of re
solution neither to discriminate no
be Disseminated against. The Unite
States must hold itself free to adop
such tariff policy as seems suited to it
own interests. 1t must leave to othe
countries the same freedom. What
ever tariff system we adopt, we shoul
aim to apply it without Discrimination
to all comers; whatever system anothe
country adopts. we should wish tina
country to apply it to ourselves on tn
same terms and in the same way as t.
others.
at is conceivable that a policy O
this sort cannot be carried out to tn
full. If other countries adopt tarit
legislation which discriminates agains
the United States we must be prepare
to apply pressure to them. We posses
virtually nothing in the nature Of
bargaining weapon. We should hav
legal provisions enabling the Admins