Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-10-07
Foreign Trade
Possible with
Protective Tariff

by which the United states can
develop foreign trade and at the
same time maintain a protective
/ tariff were outlined here today,
when Henry M. Robinson. formerly
commissioner of the United States
Shipping Board and now president
of the First National Bank of Los
Angeles, placed the question of free
American Bankers Association in
annual convention. through his dis
cussion of the trade zone bill which
, Senator Jones Of Washington now
has before Congress-
Mr.. Robinson spoke as one inter-
ested both in protective tariff and
t foreign trade. He pointed out the
apparent inconsistency" of attempt
! ing to develop both at the same time,
declaring it was only through the
establishing of free port and a
free zone policy. that the foreign
/ trader and the protectionist could
meet on common ground and the
ends to which both were working
could be accomplished.
He said that the Jones bill, as
now amended, provided necessary
machinery for the creation of foreign
! trade zones in or adjacent to Ameri-
can ports of entry, and authorized
the secretary of commerce to grant
, to states, municipalities and their
| legal subdivisions the privilege of
! establishing such zones. He sum-
married. the provisions of the bill,
and declared that, whereas, under it's
| present terms, both foreign and
domestic merchandise might be
brought into a free zone and there
broken up, assembled, mixed with
| foreign or domestic merchandise or
otherwise manipulated for re-export,
direct manufacturing, as such, could
not be carried on within the proposed
districts-this in order to meet the
wishes Of interior communities and
to allay their fears as to seaboard
manufacturing competition.
Under the terms of this act" Mr..
Robinson said. mo duty is to be APP
piled to merchandise delivered from
| ship to wharf within free zone un-
less some part, or all, of it is taken
out for domestic consumption, at
! which time it will pass through the
| customs house and be subject to
| regular duty.
In other words, we may, within
certain districts within our ports of
entry, be a free trade nation and at
the same time protect our own
domestic markets from q flood of
cheaply manufactured European and
Asiatic goods.
1T is automatic that, for the pro-
lection of the American manufacturer,
a method must be provided for the
maintenance of a merchant marine
which will carry abroad the surplus
of American manufactured goods:
otherwise, these goods must continue
10 back upon our own markets and
thereby reduce the earnings of our
manufacturers. the profits Of our
merchants and the earnings of
American labor, itself.
economists generally agree that a
surplus is the controlling factor. Is
II not, therefore, reasonable to as
sumo that it is the backing up of our
manufactured surplus and our in
ability to sell abroad that has
brought about our unemployment
situation?
Since the beginning, any nation
which has engaged, with any appre-
cable degree of success, in interna-
tlonal commerce has been either on
free trade basis, or has maintained
one or more free ports or free zones
For years, however, we, as a
nation, have maintained a high tariff
and most of the time a very high
protective tariff. and, for half a cen.
tury our flag has been a comparative
rarity upon the seven seas.
Since the maintenance of a mer-
chant fleet Is obviously predicated
on world trade. it is evident that a
high protective tariff. world trade. the
of a merchant fleet with
the financial and commercial accom-.
paniments of those operations. are
inconsistent, but experiences Of
European nations show conclusivelv
That a. modification of this inconsis-
tency can be brought about without
oennlte injury to the principles in
VOWED in protective tariff.
In fact, II the feeling continues n
grow that we should engage in world
trade and maintain q merchant neet
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