The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1921-11-03
CANADIAN INDUSTRIES MENACED BY FLOOD OF
CHEAP FOREIGN GOODS

Opponents OF the American valuation plan embodied
pending tariff bill being embarrassed find explain
alton of the experiences which manufacturers are
undergoing At the last session of the Canadian para
ment the Canadian tariff law amended by the addition of
clause providing that the vaung imports for purposes
cvyng tariff duties depreciation of foreign currency
should be recognized in excess Of so per cent
The following illustration of how this law would oper-
Under the normal rate of exchange the par value of
German high mark is 1913 cents vt the rate
change the value Of the Gemac mark less than
If German currency deprecated and the
of exchange prevailed German article valued at 200 marks
imported Canada would terms of Canadian m ey
valued at $4 CO. Upon this valuation Canada would levy
her tariff Under present valuations in Germany,
made article valued at 200 marks is worth in Canadian money
only $500 1t is to prevent the Importation of oreignmade
goods at such rdculousy low valuations that Canada has
amended her tariff law.
"5O-5O Valuation Plan
The effect OF the amendment to the Canadian tariff law is
to recognize depreciation of foreign currency
of so per cent in fixing valuations imports That is
German article present conditions costing 200
Marks instead of being valued at the present exchange
ess than cent to themar would be valued in the Can
adam customhouse at the rate of 9 cents to the mark
1913 80 In other words the Canadian valuation amendment
to its tariff arbitrarily fixes 19 cents oneha the normal
vaue the lowest value which will be recognized the
German mark in assessing valuations German imports
AT the time the amendment made it thought
would eectualy stop the flooding Of Canadian markets with
cheapy made and cheapy valued foreign goods Canadian
manufacturers have discovered however that the amendment
is being evaded by German goods being into Holland
reshpmen There they repacked relabeled and ship
ped to Canada products of the Netherlands with invoices
made out in terms of Dutch currency. Inasmuch Dutch
currency practically at in Canada the valuation amend
ment to the Canadian tariff does not apply to goods shipped
from Holland and valued in terms of Dutch currency
this scheme the process is follows
How Law is Evaded
Germany produces article which she values 200
In the world of international and finance today that
value of less than $500 She ships the goods into
Holland for reshpmen For this privilege she pays the
small tax to Holland of five per The goods repac
ed and reabeed and then shipped Canada with the
ton them expressed in terms of Dutch currency Had
she shipped the goods direct to Canada the would have been
arbitrarily valued at $780, above stated In nernaton
al exchange the goods really worth $780, Any
ton less than $3.50 Expressed in of Dutch currency
represents the degree to which GERMANY evades the Canadian
law without the least affecting profits on the goods
Crevous this complaint is Canadian manufacturers
greater against commission and obbers of their
home country They have ascerained that British
brokerage and commission buying large quaint
ties of German made goods paid for deprecated German
currency taking them England and there repackng and