Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-12-04
TARIFF MUST FIT
NEW CONDITIONS.
AYSUNDERWOOD
The Atlanta Journal News Bureau,
e23 Riggs Building.
HX mHYEnTnRE TTTTER

cps Riggs Building.
BY THEODORE TILLER
WASHINGTON, Dec. Am exclu-
sive survey of the horizon of tariff
revision and forecast that the next
tariff revision bill will be prepared
only after the greatest care and de-
liberation because of world condi-
tions, were given to the correspond
emit Of The Atlanta Journal today by
Senator Oscar w. Underwood, minori-
ty leader of the senate and co-author
of the Underwood-Simm tariff
law. Senator Underwood said the
current law is not applicable in many
fundamentals, because of the after
math of war. No tariff act enacted
before the war, he added, could be
satisfactory and workable today.
Speaking as the leader of the mi
nority, Senator Underwood said he
could not prophesy accurately when
the Republican congress would re-
wise the tariff, but in brief his an
alysis of the situation is this:
There probably will be no revision
of the tariff until early next fall, re-
CARELESS of the amount raised by
tariff law. whether it be around $780,
100000 annually, which is substan-
TALLY the record to date, or $1,000
tbs. the Republican whip.
There is in sight no early reduction
in internal taxation burdens. The
amount raised by tariff law, Sena-
tor Underwood said. even II 1t huctu-
ates a few hundred millions up or
down, can have no very appreciate
effect when congress is appropr1atlng
in billions, and not millions, ana the
interest on the national debt alone
consumes more than the customs re-
ceipts. Furthermore, Senator Under
wood does not see how the Repub-
licans can raise a billion dollars un-
der a strictly protective tariff framed
in accordance with the historic Ike.
publican policy of protection TarlH
rates that go too high, he CONTENDS.
shut out importations and reduce
revenues, and a country may not go
beyond certain point IL IL seeks
revenue returns. ;.
Mr.. Underwood does not think it
is possible to increase revenues ma
terially by imposing rates low
enough to encourage imports. a
great deal Of money, ne sug { u.s.
raw materials which Europe can fur
nish today. although Europe IS I'M
able to furnish the finished productS;
The senate minority leader is sun
for a tariff for revenue only Lne
principle embodied in the bill that
hears his name. Nevertheless. he ad-
mits that the next tariff law must
take into account existing conditions
in this country and Europe, ana II
probably must contain somethlns u
protection, something Of free trace
and something of tariff for revenue
only. s.
The thought left by Senator Under
wood as a tariff expert was that tns
next congress must go about ta I,..
revision studiously and sc1entlncaIly;
that the new tariff must De sn iipes
rather than in furtherance OF any po-
;itical creed, and that an absolutely
new set of conditions Will De met
nv the tariff revisionists OF the Sixty
seventh congress. will
81 cannot prophesy wnen tnere w" W.
he a new tariff bill. because am one
Of the minority" said Senator Onder-
wood "but !f the Republican leaders
saw If will be late next year. tnliiN
they are right OF course, the pres
ent tariff law is not adapted 10 con-
ditions OF. today. NO .aron v ia~ or
so ago. could fit into the world sltua-
finn az It now exists. Europe IS Pr
d,tcing little, and one cannot pleuitee
when ner productivity Will return 20
normal, She could supply large quam
titles of raw materlais r. MS
ouent large revenue returns ~ a. rof
nuder DroIer tariff duties. 90 NO. no.
s usioI how A tariff bill yielding anything
1;ta billion dollars annually couiu
he a protective tariff. It wo tariff oe'
instead, a highly competltive bauond
There is a point IN ,,n rase0 anV tar
;ff principle. and then tners ed ia
rates that will bring about increase s,,1
imports and greater retnrnss. e.. rs~a.
still a. believer in tafllL to 1T
nue. nue. e eut in world affairs, you
s .nrs necessarily take into account
The conditions abroad. Production
10 unset, trade balances are 100
normal. Some nations, s, oo1c and
81 81 On, under these after-war condl-
tions. r, .,na that some of the
rates IN the existing tariII law
virtually imperative ana .,,o mon ratss
have become protective all because
this was a peace-tirne tariff meas
ure, and nearly the whole wo 9roi, 10,
day is trying to RECOVER rec s, Iroin no
matter along what lines construct
Cd would be not adaptable in the
"However, it doesn't make such
great deal of difference what we
the next few years. I mean differ den-
cerned. I do not see how tariff re-
vision can play any apprec1able part
in reducing internal taxation as
predicted in some quartes. Whether
the tariff revenues fluctuate up or
down, a few hundred million dol
lars is more or less immater1ai
when congress is preparing to APP
p rGRrate The 1 Fraof bulk RS'e Of the
money for sometime to come. 1t APP
pears to me. will be raised by in
ternal taxation and not be. indirect
taxation at the ports of the coun-
try.
81 assume that the party in con-
troll of congress will undertake re-
vision of the tariff and TAXATION
laws at the next session. | do not
look for any action at the short
session which convenes in less than
a week. Whatever be the policy out
lined by the majority, however. 1t
is plain to everyone that there
should be a more careful consldera-
ton Of world conditions in framing
the next tariff bill, and that we
have entirely unprecedented condi-
tons to take into account in shaping
a fiscal policy"
impossible at this juncture to dis
cuss the details Of prospective. tar
if revision. 1t would be futile
should anyone attempt this, he
suggested, prior to an exhaustive
study of affairs in Europe and at
home. Mr.. Underwood is still for
revenue tariff, but he seriously
doubts that any set of rates may
be devised to produce anything like
Tariff revenues in the United States,
| he thinks are largely daDpndent uD-