The Bozeman courier., 1921-12-14
AMERICAN VALUATION"

There is a great deal of discussion now being
indulged in by the retail merchants of the United
States about the proposed American Valuation
plan contained in the Fordney tariff measure. All
these merchants are opposed to the change in bas
ing valuations upon imported goods, from the
present method. It is their contention that the
American Valuation, if adopted will bring about
an increase in cost of goods to them and at the
same time shut out foreign made products from
the American market.
For the past four months the National Retail
association has been active in spreading infOrma-
tion among the dealers throughout the country,
showing by comparative figures just how unfav
orabe the change will be. It appears from these
figures that if the American Valuation plan is
put into effect, the retail merchant viii be up
against q higher cost for his merchandise, which
viii result in the necessarily increase in the re-
tail price.
Some Of the biggest merchants in the country
have taken a stand against the FOrdney measure
insofar as it relates to the American Valuation.
John C. Shedd president Of Marshall Field & Co.,
takes the stand that there is danger of shutting
out foreign goods, which will result in removing
competition and this viii make it possible for the
American producer to secure higher price for
MS products.
The point chiefly objected to in the American
Valuation" plan is that the buyer, who must make
his purchases at least six months in advance of
the season when he will put it on the local mar
ket, must do 50 without knowing what the price
will be. He cannot fortell what some American
expert or manufacturer will decide should be paid
for the goods upon the date of shipping, and the
g.,
eign goods.
Under the Fordney bills proposal the Ameri-
cen Valuation is placed upon the imported goods
import duties and transportation charges ther
added, would bring the cost of the foreign goods
up to such @ cost that there would be left toc
small q margin to prohJably handle them. Their
the importer would stop handling foreign goods
competition would vanish, and the prices woulC
90 UP. The American manufacturer would be il
position also to raise his prices to increase tn
import duties upon the foreign products; thi
would not, as might at first appear, be good fo
the foreign products. It would not bring in good
from foreign markets to pull prices down.
It is pointed out ehat the real trouble with tn
FOrdney bill is not the various schedules con
tanned therein but the uncertain feature upo
which the appraiser will be required to set tn
American value upon imported goods The az
praiser must "guess" at the wholesale price O
comparable and competitive products of tn
United States" on the date of expectation. Shoul
it be impossible to ascertain such value to tn
satisfaction of the appraiser, then 'value" sha
mean the value of the import upon that date fo
consumption or use in the United States
This would give the appraiser an unlinite
latitude for arriving at decision as to the 'vaue
and he could assess whatever he pleased. Unde
this system no importer can know what his mel
chandise viii cost until after it has passed throug
the Custom House. It will mean there will b
no sales for future delivery, resulting in a with
drawal Of the American importer from the fol
egn market, leaving the American producer fre
to charge higher price for his goods.
The opposition of the American Valuation
developed by the many retail interests of tn
country is not ar opposition to the principles o
protective tariff but is a move to protect dom
estic purchasing power What is desired is
trading as well as protective tariff BY tha