The Washington herald., 1921-06-02
Protection and Promotion.

(( T UST what then," asks the New York World
"is the Harding policy to the foreign
trade" There none so blind as those
who viii not see In other words there are those
who operate partisan closed-shop in their heads
1t is easy for those who will to know what is the
Presidents policy as TO foreign trade.
First protective tariffs, which even the
democrats, while denying in principle, have applied
In fact, so long there is other way of meet
ing the great variance in wage scales between this
and other countries, and the equal variance in the
scale OF living between American and other labor
there must be tariffs based upon the difference of
the cost of production
So long there is the present difference
in monetary exchange values, this must be met by
similar measures The foreign worker is paid in
his counhys deprecated coin 1t is the basis of
values which never fully respond The foreigner
produces the basis of this deprecated value to
considerable extent and when he sells in this
market, has that advantage well as that of the
normally lower wage scale.
So long foreign governments directly and
indirectly subsidize their foreign trade this must
In some way, be balanced, so long as they encour-
age combinations for foreign trade including not
alone selling, but barter, and buying, which this
government forbids, there must be other way
of balancing this advantage Foreign governments
prohibit nothing but encourage everything from
cartels to dumping, which aim at increasing their
foreign markets.
Until now, matter what political party has
been In control there has been but one way used
to meet all this-tariffs- Nor has any other time
had to meet deprecated monetary values varying
from the pound sterling. which has lost as much as
IS per cent, to the Polish mark or Russian rouble
which practically valueless. Neither has it
been necessary to meet trade combinations so COM
pletely organized almost natonalzed, with the
limit OF government support
1t is conditions not theories which must be met
until congress and government agencies find other
than those OF the past balance these condi-
tions AS monetary values equalize that will help.
If our foreign traders permitted to barter as
well sell, that is, take materials as we'll as paper
values in trade that would help But evident the
President has also slower but a more thorough
remedy.
This is in the plans now under way in the
office OF Mr.. Hoover, secretary of commerce Their
purpose is to put American production on an even
competitive level with other countries by saving in
waste, by cooperative effort, by play, by wide
reaching Standardization, by the fullest possible
trade and commodity information and by increased
efficiency. Mr. Hoover believes American producers
can compete with their foreign rivals without other
more radical government assistance. He believes
in the exceptional initiative resourceulness of ex-
ecutve ability Of the American business man. He
believes they only need such information and in
direct assistance the government can and should
give to reduce their costs to at least near the nor
NAL European level.
This is not more government in business but it
is more cooperation of government with business,
to induce more of cooperation in business itself
All of this is evident. 1t has been said time after
time and told in the press. Business understands
it. Business has doubt to the Presidents
policy as to foreign trade and tariffs but part
of it, temporary in any unusual scale OF protection
by reason OF extremely abnormal industrial and
monetary conditions.