The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-05-05
Tariffs the World Over.

dI1II8 TIC vVOIlo StCIs
The American tariff system, based
on scientific principle and operated
for a consistent purpose, is now In
contrast with all sorts and varieties
of tariffs here. there and everywhere.
1t has become a worldwide habit for
one set Of nations to adopt protective
measures against another set whose
currencies have deprecated, whose
wage costs are low and who are
liable, or thought to be liable, to dump
goods on the international markets
at ruinous prices. The tariff as
cureall for inevitable complaints
against after war conditions due to
the laws OF nature itself has found
multitude of apostles in far off
India and Australia, as well as In
Canada, the West Indies and South
America.
In Chile an import tariff has re-
Gently been authorized to protect
Chilean agriculture and TO throw up
breastworks around new domestic
manufacturing enterprises. A sec
ondary purpose is to supplement the
national revenue heretofore drawn
principally from export duties.
In free trade England a tariff as
high as GO per cent. has been au-
thorized as barbed wire entangle-
ment around key industries like
glass making, magnetic manufactur-
ing and the compromising of chemi-
calls. In Canada and in the British
West Indies, as well as In Australia,
the tariff is being used to promote
by preferential duties closer trade
alliance among British possessions.
In Austria the tariff has been
raised again and again until 1t is
now eighty times as high as the pre-
war tariff, the motive being to make
import revenues paid in deprecated
paper money equal the tariff receipts
paid In gold or It's equivalent before
the war.
But 1t is the Indian tariff to which
particular attention should be drawn
because 1t Is framed on the principle
that system Of high import duties
can In these unusual times be used
to correct the adverse effects OF low
exchange rates arising from an ad-
verse balance Of trade. Until last
year India was practically on sill
yer basis and the rupee, the common
monetary unit Of that country, was
worth at par a little more than -
cents. In 1920 India went on a gold
basis, and to give the rupee par
value In line with its actual value
In the high silver market then pre-
vailing par was fixed at about AS
cents, or two English shillings, In
gold. Since then the silver market has
fallen and Indian trade has turned
adverse. The rupee has declined to
20 cents here and to one shilling
three pence In London.
The reason for a protective tariff
In India was not the need for devel-
opment Of home production, which
was higher than ever. Nor was there
any great danger Of rulnous competi-
ton from other countries with ad-
verse exchange and low wage costs.
The idea was simply and solely TO
raise the price Of foreign goods to the
Indian consumer SO he would pur-
chase less abroad and thus cut down
the adverse balance of trade and raise
the price Of the rupee.
The belief that a tariff will do this
may or may not be borne out by fu-
tBre developments. Manifestly the
expectation that the tariff will do
what India wants 1t to do Is based
on sound logic. IL will certainly
raise The price Of foreign goods. and
there could be no surer way Of re-
ducing the consumption Of such goods,
outside Of an embargo, than by rails
Ing prices.
And this bears directly on our own
tariff question. The money of other
countries Is so far below the normal
price In dollars that many foreign
purchasers cannot afford to buy our
merchandise, which has accumulated
In vast quantities in the selling places
abroad. And In addition to this, the
low value Of foreign moneys makes
this choice market FOR foreign goods