The New York herald., 1921-12-07

tNtNi DcSpdfCN 10 iHE NEW 1Okh HERALD
New York Herald Bureau.
Washington, ID. g., Dec. q.
fresident Harding to-day dealt Sc
were blow at the American valuation
scheme embodied in the Fordney tariff
bin Already on shaky ground, with
cn. a few whole hearted advocates. the
proposal was practically wrecked BY the
tfeSidents recommendation TO Con-
sress in his annual address.
Though the President trIed TO APP
pestse Representative Fordney and his
followers by recommending a provision
making it possible to place American
valuation in effect gradually. there Is no
disgusting the fact that when the bill
becomes effective under his scheme II
Will continue to Ak duties under the
foreign valuation plan.
Sponsors of the American valuation
plan made no effort to conceal their dis
appointment. They took the position
!. .;iss eSe Presidents recommendation
was better than nothing" and they are
clinging to the hope that eventually It
may be possible to obtain American val
uation through a gradual process.
Amendments to carry out President
Harding's tariff recommendations were
introduced in the Senate by Senator
Smoot (Utah) Immediately following
the delivery of the annual address. The
amendments provide;
An authorization TO the President
to place the American valuation plan
III effect in the case of such articles as
he may consider desirable.
An authorization to the President to
Increase rates of duty by not more than
80 per cent. or TO decrease them by not
more than so per cent, with a view to
providing an elastic tariff.
An authorization to the President to
add equalization duty up TO so per cent
of the value of the article in the case
of imports from a country whose cur
.ency has deprecated more than per
cent. in value.
The Senate Finance Committee, which
resumes hearings on the tariff to-mor-
row. Will give consideration to the
recommendations at the end of the hear
ings on the various schedules.
Approval OF the Presidents recon-
mendations as embodied in the Smoot
amendments will mean the rewriting OF
all the ad valorem rates OF duty in the
F'ordney bill. The Smoot amendment
authorizing the President to place the
American valuation plan in effect where
considered advisable contemplates the
fixing OF ad valorem rates in the bill
on the present foreign invoice basis In
many instances this will mean higher
rates OF duty than fixed by the House
Ways and Means Committee. which first
decided on rates on foreign valuation
basis and then scaled them down about
one-third in order to give the same de-
gree OF protection under the American
valuation plan.
The American valuation plan as pro-
vided under the Smoot amendment would
be different from that of the Fordney
bill in one important respect. The Smoot
1p1andnant ny-ox-idaa flat
wholesale selling price of the imported
article or similar article shall be the
basis of valuation. Under the Fordney
bill plan the basis where possible would
be the wholesale selling price in this
country of comparable and competitive
American article. This plan involved
administrative difficulties which 1t is
believed could be avoided IL the selling
price of the imported article itself were
taken as the basis.
1t is the expectation that the Senate
Finance Committee will approve the
Smoot American valuation amendment
or sonething similar to it. Representa-
tive Fordney. chairman OF the House
Ways and Means Committee and one OF
the strongest advocates of American
valuation, is expected to protest vigor-
ously against 1t. Representative Green
Of Iowa, who ranks next to Mr.. Fordney
in seniority among Republican menu
bers of the Ways snd Means Committee
and who will be one OF the conferees. ex-
pressed approval of the President rec
ommendation.
Mr.. Green was the only Republican
member of the Ways and Means Com
mittee who never approved the Ameri-
can valuation plan. but being in a hope
less minority he did not press his views
In the House. He said to-day that he
favored rewriting the rates of the Ford
ney bill on foreign valuation basis
with authority to the President TO place
the American valuation in effect in the
case of any commodity or list Of COM
modities.