Evening star., 1921-10-23

ufacturer or producer claims II is
impossible for him to compete IN the
articles valued at low figure. Many
specific instances were presented to
the House and Senate committees.
To illuminate the controversy over
this problem. it might be stated that
importers (and many customs assess
can valuation system will not be
workable since 1t will be impossible
to ascertain the average wholesale
market price Of compare Bile Ameri-
can goods; t2) that 1t will involve
long litigation and overthrow many
court decisions and practices; t3) that
American manufacturers can combine
and boost prices. thus increasing i'm
port duties: "a that it will stop inn
ports, check exports and increase
idleness in America; (5) that it will
be impossible to ascertain similar or
porters will not know what duty they
must pay until the goods arrive; O
that it will take years to establish
the new system.
The proposed American valuation
system has been most ably defended
ments in this defense-first, under
valuations: second. unfair competi-
tion. primarily due to the low rate Of
exchange, especially between Ger
many and the United States. BY low
rate Of exchange is meant the low
value of German. French. Italian and
English currency. as compared with
the American dollar. oBth underval-
uation and unfair competition touch
vitally the problem of American in
dustrial preparedness and prosperity.
economic safety and employment. ,
Evils of differentiation.
differentiation of imported mer-
chandise, unless successfully correct
ed by customs officials. means great
loss of customs revenue to the gov
ernment, to say nothing of the seri-
Gus competition in the American mar
is not known. That it's heavy is not
denied. Specific cases of fraudulent
undervaluations may be recalled.
One case alone was settled by the
importers paving the government
100000. On the average there are
disputes as to the foreign market
value Of imported merchandise. The
temptation always Is to undervalue
If the importers can get away with
it,
Defenders Of the American valua-
tion system say it is not just to per-
init foreign manufacturers or pro-
ducers or importers in this country to
place their own valuation on goods
which enter the American markets in
competition with goods made and
sold under American conditions.
often the foreign invoice is valueless
and the Treasury has only five men
the actual cost Of production and real
value. It Is claimed that 1t is far
easier to ascertain the average mar
ket value in this country than abroad.
Within the last month several Treas
ury oficials and others have been
line in anticipation Of the adoption Of
the American valuation plan.
E2ects Of Low Exchange.
The prevailing low rate OF foreign
exchange (due. primarily to the
enormous issues Of paper money
abroad) results in a low cost Of pro-
duction in those countries. and a
constant invitation to export largely
to countries having a high rate Of
exchange. Germany can manufacture
goods at one-fifth the cost Gin gold)
and Import duty. and undersell Amer
lean competitors by a wide margin.
To meet this unfair competition,
American manufacturers and pro-
ducers urge the American valuation
system. In recent address Secre-
tary Hoover said: 81 find considerable
encouragement in some trades at the
apparent inability to meet German
competition. At the present moment
German manufacturers are exporting
goods at prices that we can meet with
great difficulty in forAign markets,
and are, indeed, invading our home
markets]at such levels that we need
strenuous protection II some Of our
Industries are not to close" The Sec-
retary told the ways and means COM
mittee that ad valorem duties on the