The Penn's Grove record., 1921-07-29
The Tariff, Past. Present and Future

In the making of a traiff bill there
publicans of the House seem to ignore
the fact that a world war has upset
and transformed many conditions, es-
pecially economic conditions. Some
times, it would seem that they forget
that there has been a world war. But
Herbert Hoover, who perhaps ranks
highest among Republican economists,
has not forgotten, and his newspaper,
the Washington Herald, has recently
called attention to these changed con-
ditions with particular reference to the
tariff question. In its issue of Feb. g.,
1921, the Herald editorially pointed
out the difficulties, if not impossible
ties, of equitable tariff adjustment,
which apparently has been unheeded
by the junker tariff makers and their
beneficiaries, the highly protected
campaign contributors. 1t said under
the above caption:
at is n thing to be the worlds
greatest debtor nation and quite an
other to be the worlds greatest cred
itor nation. 1t is another distributing
factor to have a comparative equality
among the money of all nations
change so that this is the only one of
all the great trading nations whose
money values have not greatly depreci-
ated as to compared to that of its
commercial competitors. 1t is a veX-
ing element to have these relative val
ues as variable as is the number of
competing nations.
80 a tariff that would adequately
protect American industry as to Great
Britain may be wholly inadequate as
to France, Germany of Italy. Another
varience of this problem is found as to
Japan. as to the new Europe and all
the neutrals. 1t would take not a fixed
infeXible tariff law, but financial
legerdemain, to adjust these differ
ences, equitable and readjust them
with constant exchange fluctuations.
Yet this is but a start of the laby-
rinth of tariff adjustments, if there is
to be a tariff revision. Not only does
Europe this government $4,000,
QQQ,Q 00 on which it cannot even pay
interest, but European governments
and traders owe American traders and
our people in commercial debts and
on securities. over SO, ZOO, 900 900 more.
at recognized by everyone that the
bulk of this combined credit, far great
er than was ever carried by any other
one nation, must be paid in goods and
materials. 1t can be paid in no other
way and that means imports. A high
tariff would tend to prevent, through
our own act, the payment of those
debts due us.
"There is a growing feeling which
may become conviction, that not only
any increase of exports from the Uni
ted States will depend upon an in
crease of imports, but that even to
maintain an equality of exports will
demand this greater proportion of
imports. On this event the present
credit relations depend; while only
through greatly expanded imports can
credit capacity and credit stability be
expanded.
"But even more than this come the
feeling that Americas own domestic
purchasing power is quite dependent
upon Europe.s ability to buy and pay.
Even in foods the products on the
farm. Europe has an eager market for
all American surplus, if it can make
on this exchange. But it cannot pay.
IF this surplus can go where it is
wanted and needed, the farmers will
have the money to spend. IF it has to
stay as now on the farms and in ele-
vators. the farmers will be in their
present financial stress and have to
take reduced price on all their crops.
What is true-if true-of the farmers
is equally true of all products Of the
mills and factories.
ct IS comprehending this wholly