The New York herald., 1921-06-18
PRESIDENT DESIRES
TARIFF FIXING right
Seeks Discretionary Powers
of Reciprocity in Negotiat-
ing Trade Agreements.
MTDDLE OVER LUMBER
Minnesota Republicans OPP
pose Retaliatory Duty Oh
Canadian Product.
FLOOR BATTLE ASSURED
FOrdney Measure Nearly Com
plete With Fixing Of Wool
Schedule.
FLOOR BATTLE ASSURED
Special Despatch to THE NEW YORK Herald.
New York Herald Bureau,
Washington. ID. c.. June II.

SpcctdL despatch TO THE NEW YORK HERALD.
New York Herald Bureau.
Washington. ID. c., June II.
President Harding strongly favors
a bartering tariff. He would like to
see written into the new Fordney tariff
bill, soon to be reported by the Ways
and Means Committee of the House, a
provision which would give the Presi-
dent wide discretionary authority to
raise and lower rates on specific ar
ticles against countries which impose
similar duties on American goods.
Under such a provision the Presi-
dent would endeavor to negotiate
tariff and trade agreements with other
countries of advantage to the United
States.
OHers Trade Solution.
Ii was authoritatively stated a the
White House to-day that the President
is not committed to any schedule of
tariff rates and that he is not disturbed
about the details of the proposed bar
tering" tariff, but that he firmly believes
such discretion lodged with the Presi-
dent is the only real solution of many
tariff and trade troubles. 1t is a broad
application of the doctrine of reci-
procity with apparently more authority
given to the President than has hereto
fore been proposed.
1t was frankly stated by the Presi-
dents advisers to-day that the consti-
tutional authority of Congress to dele
gate tariff fixing powers to the Presi-
of
and that The President was leaving that
for the Congressional lawyers to deter
mine. If such a provision is incorpo-
rated in the new bill. either to apply
generally to all articles or merely to
few specifically mentioned. it is likely
Congress will fix the maximum and
minimum rates within which the Presi-
dent may exercise his authority and also
stipulate under what conditions ne may
act. Such a provision would doubtless
fulfill the constitutional requirement
that revenue measures emanate from
Congress.
The new policy has been brought to
the front by the sharp controversy
among House Republicans about the
lumber schedule. Led by the Minnesota
delegation, q big block of middle West
ern Republican Representatives are
threatening to bolt the party and go
over to the Democrats If Chairman
Fordney carries out his plan to put
20 per cent. retalistory duty on lumber
which would prevent Canadian lumber
from coming into the United States to
bring down building costs. Free lum-
Der is demanded by these middle West
ern Representatives and they are
backed by most of the big lumber con-
Germs except the West Coast Lumber
mems Association. Lumber is now free
under the Underwood law
Coast Monopoly Feared.
1t is charged by the middle Western
ers. who are gradually increasing their
following among Eastern Representa-
tives and have all the Democrats with
them, that the effect of the Fordney
duty on lumber would be to give the
lumber men of Oregon and Washington
a monopoly in the United States. They
say 1t would increase prices and stlTnu-
late further destruction of the fast dis
appearing forests of the United States.
The free lumber Republicans, although
agreeing with the President on the gen.
eral principle OF a reciprocal. retalatory
or bartering tariff-as It has been yari-
ously called--say that in the case of
lumber IL is a joker Canada, they ar
que. must levy duty on importations
of lumber from the United States be-
cause of the greater cost of producing
lumber in Canada Therefore, under
the Presidents plan duty would be
placed by the United States against
Canadian lumber, but Canada has all
the lumber she needs and vastly more
while the United States has only enough
20 last for o few more decades at the
present rate of consumption. No matter
what Canada may do with her tariff
the free lumber advocates declare every
stick of Canadian lumber that comes
into the United States helps the Ameri-
can people.
The Ways and Means Committee has
already given its tentative approval to
tho Fordney lumber rates. but the fight
is sure to be waged on the floor. with
the prospect of a narrow margin either
way. The question may be also re-
opened in committee.
Unless this some Unforeseen con-
troversy delays action It is likely the
tariff bill will be reported to the House
about the end of next week. Ii will
probably be debated In the House a
month or more
a new rate OF twenty-five cents
pound on actual wool content instead
OF the formerly proposed rate of eleven
cents n pound on wool i'm the grease,
was adopted to-day as the basic rate of
the wool schedule. That clears up the
last OF the big schedules. leaving only
minor matters pending before the COM
mittee.