The Washington herald., 1921-10-14
PROF.RVING FISHER
SAYS FORDNEY BILL
WOULD BE OUTRAGE
Otto II. Kahn Declares
Valuation Scheme Is
Dangerous.
LIKE CHINESE WALL
National Council of Importers
And Traders Sends Pleas
To Congress.


David r. Forgan, president of the
National City Bank Of Chieagoi
Prof. Irving Fisher, of Yale Uni
vsrsity. and Prof. Herbert E. Mills,
of vassar College, In statements
made public by the National Coun-
ell Of American Importers and
Traders, condemn the American
valuation plan and urge against its
acceptance by Congress and the
country on account Of its evil eff
fects upon our national prosperity.
Copies Of these statements are be-
ing sent TO the members OF both
houses Of Congress.
Kahn In his statement said: TT
seems to me manifest, hrst, that
Il Is Of vital Importance to facili-
tate in every practicable and con-
sistent way the resumption Of ousi-
ness intercourse between the ma
tions. Secondly. that the world
cannot buy from US II we shut
Il out from selling to US. Third.
that the proposed American valua-
tion plan would add greatly to the
complexities and uncertainties of
international commerce, which Is
quite difficult and hazardous enough
as Il Is under unavoidable existing
conditions.
Il should look with great appre-
hension upon the introduction into
our tariff legislation and admins
tration of so untSied. far-reaching
and Inealculable a feature as the
American valuation plan"
gee Mentions War Debts.
David r Forgan, president OF
the National City Bank Of Chicago
. said: IF this country Is ever tc
collect the $4,000, 900, 900 owed II
by foreign governments and the
$4,000, 100000 or $4,000, 100000 owed
in private debts, old = fashionec
hIKh-tarifr ideas such as FordneS
Is advocating must give place Il
enIIRhtened, scientific, modern tar
III procedure. We can get paid
only through doing a large bust
ness with foreign countries. Th'
so-called American valuation plaT
would. In my opinion. make tha'
impossible"
Prof. irving Fisher. politica
economist of Yale, stated: ''Tht
Fordney bill threatens to do whai
he preceding tariff did. namely
lead to a revulsion OF feeling ovei
the unfairness of the special priv
iIeEes sheltered by high tariff 1r
particular the proposal Of Sector
4O3 70 levy duties on the basis Of
domestic wholesale selling prices
instead OF on foreign purchase
prices will be regarded by the pub
lie, as indeed II should be regarded
a. another covert device to increase
dhties sky high without letting the
public see how high they really
are.
what is written in the bill as
10 per cent or 50 per cent may by
this device really be 20 per cent or
100 per cent. This method IS full
Of confusion and administrative
dificuIties and subject to the abuse
Of official discretion. II failed wheSl
tried in 1912, and was respectei In
1903, 1918 and 1917. This agRrava-
ton of the outrage Of a prohibitive
tariff framed by and for q special
interest at this time Is not oppor-
tune. Il will suit those special in
tsrests which feel that their cam
paign contributions entltle them ID
return favors, but will not suit the
rank and file of the rest of the coun-
try. We want no aggravation OF
the high cost Of living. We do not
want to be taxed for the benent OF
the few.
Call. II Chinese wall.
I'VE need revenue, and whatever
tariff Is enacted should help raise
revenue, not defeat itself by cutting
Oh imports. We want business u
revive and business today Is largely
dependent on foreign trade. A Chi
nese wall OF excluding imports
hurts Us economically in two ways
namely, by holding up the high cost
Of living and by damaging Europe
our best customer. 1t IL short
sighted national policy to stop i'm
ports, for only through imports can
Europe pay Us what she owes US
and only through more imports can
We export our own products.
The Fordney tariff amounts Ia
throwing away our national advan-
tAge. Like war, Its effect is de-
structive, not constructive. 1t rep
resents predatory wealth asking tc
be supported by the rest Of US. II
II already a stencil in our nostriis
and II passed will grow increas-
ingly In bad odor."