The Washington herald., 1921-02-24
Truth itself has not the privilege to be
spoken at all times and in all sorts-Mon-
taigne-
Automatic Tariff Rates.

"HE Payne-Aldrich. tariff law has been called
in a sort of mediator by the conference
= committee to settle Senate and House diff
ferences to the Fordney emergency tariff bill.
In several instances its rates have been adopted
compromises.
In the meanwhile Mr.. Fordney returns from
Florida with plan said to have the tentative ap-
proval of Mr.. Harding, to re-enact the Payne-Ald-
rich law the first order of business in the special
session, If Mr.. Wilson vetoes the present Fordney
measure. The I2-year-old law would be changed
only conform with what will then be the defunct
Fordney bill
=, 1t is also proposed to meet the varied diff
ferences in exchange by expressing all values in
dollars, whatever this may mean. The fact is that
the further Congress gets into the tariff mire, the
more its feet stick. 1t has gone where it is
difficult to turn around get back, while the road
ahead, or any lateral, looks more inviting than
the way back
To FIX a tariff against Canada with its quite
equal production costs compared to our border
States and fairly moderate exchange difference, is
one thing. But from Canada the gradient of both
labor costs exchange values, both, steadily in
creases as it reaches to Great Britain. Japan Bel
GUM, France Italy, Greece Poland and Southeast
ern Europe.
1t reaches its climax in Vienna. Nor does this
include the neutras and South America. 1t would
seem necessary to have all tariff schedules on
sliding scale with automatic adjuster to meet
constantly varying exchange rates.
Nor does this take into consideration those
other factors That the balance of trade for in
favor of this country was around eight times as
great as in 1914 and that when the Payne -Aldrich
law was in effect, the United States owed Europe a
good many hundreds of millions of dollars! Those
debts were all liquidated during the earlier years Of
the
Now Europe owes this government and its
people from SI4oooooo,ooo to $I5ooo,ooo,ooo, or
possibly. twenty times what was due Europe at
that time from investments and credits in this
country One object of tariff laws then to
make it easier to carry this debt. Now, any tariff
must be framed with the contra object of making it
possible for Europe to carry the far enormous
debt due the United States.
Still another situation, the Mr.. Fordney has
tried to meet that chief exports are now, as
before the products OF the farms. 1t was chiefly
with these commodities the country paid its debts.
If now the variance in exchange and labor costs
are bringing large quantities of food products into
our domestic market, what is the remedy? D..
Americas farm industry, its farm prosperity
must be maintained. How this best be done,
when what is closed out of this market meets our
surplus in the world market, without merely reduc-
ing the price for the surplus while unduly ncreas-
ing the domestic cost of living?
The economics of the whole situation seem to
point directly, not back to the Payne-Aldrich high
tariffs and their inequalities, not to period past
and totally different, but to low tariffs that will
bring payment of interest due, at least partial pay
ment of debts re-establish credits, and increase
the average of purchasing power of our own people
as to increase our domestic consumption
If the United States get back the money
owed it and its people, that same money will re-
viye industry increase home consumption, and with
renewed credit Europe will be an eager buyer for
many years. to come. These two elements would
seem to be better assurance of living prices than
high tariffs with their impossible adjustment to f.
nanciaI and economic world conditions