The Washington herald., 1921-03-28
u. s. Status Gives New
Aspect to Entire
Problem.
RATE TO ENCOURAGE
IMPORTS is FAVORED
Solid South Shows Trend
To High Protectionist
Platform.
by ARTHUR SEARS HENNrNG

by ARTHUR SEARS HENNING.
We now have with us again tariff
revision-upward. this time, for the
protection of American production
and for the production Of revenue.
With the United States a creditor
nation for the first time in its his
tory, however, the century-old po-
litical question takes on a new as
pect. Instead of the United States
owing Europe billions of dollars.
Europe now owes US $4,000 .ooo.o 900
for government loans and credits
by American business interests. We
have succeeded Britain as the
worlds banker. So now, mingled
with the old-time pleas for protec-
tion for infant industries" and pro-
lection to equalize the cost Of pro-
duction at home and abroad. we
hear arguments from orthodox high
protectionist quarters in favor of
moderate duties which win encour-
age foreign trade and enable the
debtor nations to pay their debts to
the United States in commodities,
as did the United States when It
owed Europe.
south Changes.
Likewise Democratic devotion to
free trade or a tariff for revenue
ony appears to be weakening. The
Solid South. with its expanding
manufactures and its keen compe-
tition with the foreign growers of
some agricultural products, is shot
through with protectionist doctrine.
II Is a South far different from that
which dubbed the protection Of lsss
the tariff of sbominations."
The tariff heretofore Was chieny
. domestic question, being framed
for the specific purpose Of keeping
out imports which compete with
American manufacturers.
Now 1t is urged that the tariff be
used also as a weapon for getting
more liberal treatment in foreign
countries for the export products
of the United States. the movement
along this line having already crys-
taliized into a demand for a bar
gaining tariff.
stand Of Industries
A few classes Of manufacturers,
such as the makers OF automobiles.
the steel manufacturers, and the
canning industry. all of which are
most concerned in developing for
eign markets and are able to hold
their own in domestic markets with
a moderate degree of protection are
willing to have the new principle
apply to their own products In
the case of a great majority OF the
manufactures, however. there is
little evidence OF willingness to ac-
cept lower rates of duty either on
the broad theory OF facilitating the
payment Of the foreign debt OF with
the specific psrpose Of encourag-
ing reciprocal relations and favor
able treatment toward American
products.
Dislike Sacriaee.
Those desiring a more liberal
tarin policy base their argument
chiefly on the advantage OF encour-
aging reciprocal relations. There is
little disposition on the part of any
element in the Republican ranks de-
liberately to sacrifice domestic mar
kets in order that foreign nations
may pay their debts. b,
The tariff law which will be placed
on the statute books probably not
much earlier than October ] will be
the result of numerous compromises.
The House Ways and Means Com
mittee which conducted hearings
for six weeks in January and Feb
ruary and for the last week, has
been engaged in the actual drafting
of 4 bill. is likely to show a tendency
toward extreme protectionist views.
The House Committee may reject
the proposed bargaining tariff. The
Senate Finance Committee probably
will tone the bill down. giving more
attention to the development OF eX-
port trade, and may approve a bar
gaining tariff. The measure as
finally enacted into law probably
will contain rates OF duty averag-
ing less than In the former Payne
Aldrich law.