Newark post. (Newark, Del.) 1910-1969, 1921-07-20
How We Are
Revising the Tariff

after the organization of the present
Congress, was assigned the prepare
ton of revised tariff bill. A revi-
sion was necessary in many details
owing to the changed conditions of
trade and industry during the past
four years. After several months of
investigation and discussion under
the leadership of RepresentativeFord-
ney of Michigan, chairman of the
committee, the new tariff bill was in
PRODUCED in the House June 20 and
reported back to the House from COM
mittee on July 9th. 1t is called the
Fordney tariff bill because of GUS
tom which gives me bill the name Of
the chairman of the committee.
The report of the majority of the
committee, all Republicans, gave
strong endorsement to the bill; the
minority report, the Democrats on the
committee and one Republican, ex-
pressed vigorous condemnation of
the purpose and probable effects of
the bill. These reports represent to a
considerable degree the old partisan
view of high or low tariff as a pri-
mary political issue between Repub-
| licans and Democrats. To the former
the Fordney bill is "magna charta,"
to the latter it is conspiracy"
There are many voters in the country
who have long believed that the tariff
is not a political issue, that it is a
| purely economic question of regulat-
ing trade conditions to the best in
terests of the country, and is mat
ter for trained and unbiased analysts
of these conditions. This attitude is
reflected to a small degree in Con-
gress, as is also much more largely
! the attitude &c ~rouns of constit'
H"tS interested in special commodi-
ties without regard to party. AS a
general determining policy, however,
affecting the adoption of tariff regu-
lations, the division in the present
congress has seemed to be the usual
Republican protection versus Demo-
cratic free trade.
The list IF q products admitted to TIE
| country free of duty has been consid-
erably cut down, and the average rate
increased to about three times as
much as the present tariff (Under-
wood created under a Democratic
administration. According to Chair
man Fondney the general rate is
about equal to the last Republican
tariff, the Payne-Aldrich tariff of
1919. The total revenue to be eX-
pected is estimated at $700,O00,0O0
against $500, 100000 under the Payne
Aldrich tariff.
The Fordney bill contains several
provisions entirely new, and one that
goes back to our earliest tariff legis-
lation. The latter, the American val
uation clause has raised most discus.
sion. 1t provides that all imported
articles shall have the duty fixed or
the value of the article in America
rather than the cost of the article
where it is produced. An article
costing the imports So in France, bu
worth So compared with similar
article in America will be taxed upol
the latter value. A second importan
provision gives the President powe
to enter into such new reciprocal
trade arrangements with foreigl
: countries as may prove advantageou
from time to time.
| The general discussion of the tarif
in the House of Representatives iron
July to July Is, revolved upon tn
two views: Those favoring the tarif
arguing that it will prevent the pour
S ing in of foreign goods at prices TO
! which those goods cannot be mad
u under American standards of living
= and will encourage industrial activit
and employment here. Those agains
the tariff arguing that the consume
e will pay the price in increased cos
v of living, and that we shall not b
4 able to sell our goods to foreign cour
: tries because they have no gold t
6 pay in exchange and the tariff wi
q prohibit their paying by exchange G
q commodities.
e President Harding brought a me-
: element into the tariff considerable
q on July II, when he very forcibl
q called the attention of ChairmanFort
a ney to the foreign policy of the Uni
e ed States which is endeavoring
Il overcome the shortage of our oil SUI
: ply by securing American interest
e foreign oil fields. To levy a prote'
y tive tariff on oil would protect fe
local oil companies now and cut I
| Of