Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-10-19
IL. S. SEEKS BIG SHARE
OFWORLD COMMERCE
Business Men Want Reform Methods in
Foreign Trade Transactions, Including
Free Zone System In Home Ports.
BY G. GOULD LINCOLN.

BY G. GOULD LINCOLN.
A MERICA is "out for" a bigger
~ slice of the worlds commerce
~ than it has ever had before
American business men are
backing reform methods of transact
ing foreign commerce. and new plans
are being presented rapidly. And one
of the latest to come into the fore
ground-it has been urged in past
years, though never very vigorously
is the establishment OF free zones
In the ports OF the country.
Properly speaking. according to the
advocates of the free zone system. the
name should be foreign trade
zones" The free zone is to be that
part of a port Of entry into which
foreign goods may be brought free
of duty, but merely for reshipment
after manufacture. as in the case of
sugar. or after sorting. as in the case
Of furs, or after repacking and reship-
ment.
Claims Of Proponents.
The friends of the plan claim that
the establishment of such zones will
result in enormously increasing the
foreign trade of this country; that IT
will aid our merchants in capturing
markets in other countries. and that
1t will give our merchant marine a
vast new carrying trade. They point
out that the vexations and expensive
delays due to the administration OF
the customs laws will be avoided, that
the costs Of bonded warehouses. into
which such goods for reshipment now
must be placed. or bonded manufac-
tories. will be done away with.
Within the last two weeks bills pro-
viding for a system Of free zones
in the American ports of entry have
been introduces in the Senate and
House. Hearings have been granted
on them by the Senate commerce COM
mittee and the House ways and means
identical - framed by the United
States Tariff Commission and the De-
partment of Commerce, which are
backing the plans. The tariff COM
mission has submitted to the ways
and means committee an elaborate re-
port, in which the advantages Of the
free zones are set forth in great de-
tail.
Division in Congress Sentiment.
Whether legislation will come Of II
remains to be seen. There Is an ele-
ment in the House and in the Senate
fVo 70 OF oil h0 nCto h
lishment Of these free zones in Ameri-
can ports. 1t Is the old "standpat.'
high-tariff element in large part
though the opposition is not entirely
confined to the standpatters. /
To the standpatters- the very name
OF free zone" is like a red rag to a
bull. They fear. and Chairman Ford
ney of the House ways and means
committee said as much during the
testimony before the House commit.
tee. that the free zones are but an en-
tering wedge for free trade.
The supporters of the plan, how
ever, and many of them are republf.
cans who> believe strongly in the pro-
tective tariff, insist that the free
zones have nothing whatever to dc
with free trade, but that they provide
for the, free entry of foreign goods
only when those goods are to be shipped
away again and when they are not to
reach the American markets.
Refer to Existing Laws.
They refer to the existing laws
tariffs shall not be exacted where for
eign goods are brought here merely
for manufacture and re-export. There
is the drawback feature of the tariff
law, which provides that an importer
Of foreign goods which are intended for
Ar< <>f
the duty paid on these goods when adj
mitted to this country upon their be-
ing re-exported. There is also the
bonded warehouse into which goods
may be placed free of duty. when in
tended for reshipment abroad, and the
bonded mandatory.
Put to Inconvenience.
They contend, however, that under
the existing laws the American mer-
chants who do transshipment bust
manufacturing them are put to many
Inconvenience which tend to limit this
very important part of foreign trade.
They see in the future great free
zone, or foreign trade" ports on the
Atlantic. Pacific and gulf coasts, which
lions of dollars worth OF foreign
goods. and which will give the great
American merchant marine which has
been developed during the war more
and more opportunity for the carry
ing trade Of the world.
The free-zone system is not new
in the world. The great port of Ham,
burg which before the war was a
center of world trade, was a free
port" for many years-in fact. since
1882. Bremen was another German
port. with a free zone. Denmark's
;v,,p
forced to establish a free zone also
to retain its commerce with the Scan
dinavian countries and other parts
of the world. Austrian ports which
had free zones were Trieste and
Fiume, which is now the subject of
new Jugoslav republic. Spanish ports
and italian ports had free zones, and
SO. too. the Scandinavian countries.
Lisbon in recent years has had its
free zone In the orient the great
free ports, Hongkong. Singapore and
Shantung, have done enormous for
eign trade.
In free-trade countries. like Great
Britain. there is no need of free zones
in their ports. The entire ports are
free. And so London requires no such
aid in her huge foreign trade. But
tective tariffs the free zones are vital,
it is contended. if the transshipment
and re-export foreign trade is to be
enjoyed to any great extent.
For Free Zones in q. S.
The bills now before Congress au-
thorize the establishment of free
zones in the ports of the United States
and it's possessions, including Alaska,
Hawaii, Porto Rico and the Philip
pine Islands These free zones are to
be operated by public corporations,
and the public corporation is to be
child of the state. the territory or of
the municipality. Under the draft Of
the bill, the Secretary of Commerce is