The Bozeman courier., 1921-11-02
OUR VALUATION.

If Professor Walter f. Wilcox, of
Cornell University, speaking with
others against the American valua-
tion plan OF the proposed new tariff
act, was quoted correctly in the news
he said:
''The American valuation plan Of
the pending tariff bill is likely to
seriously diminish the foreign trade
of the United States and thus to
diminish the chance that foreign |
countries will be able to pay their
American debts, governmental and |
pirate"
Let US see about that. Great Brit
ain owes US war debt of billions of
dollars; Germany owes US none at
all. With the German mark worth
virtually nothing and with German
goods generally produced at a very
much lower cost than similar British
goods are produced, consider a tariff
of 80 per cent based as now on the
German and British valuations of
export goods. If the British value
of an export intended for our mar
ket, as expressed in our~money, is
800, say, the 80 per cent duty under
the present system adds $50 to it in
this country. If the German value is
$50 the 80 per cent duty adds SIS to
it or only one-half the duty in dol
lars which the British article must
pay to get into this market.
But if the value of a similar Amer
lean article were S110 in our own
market and the 80 per cent duty were
applied on that basis, both the Brit
ish article and the German article
would pay the same amount of
American dollars as duty. The Brit
ish article might pay So more duty
than it now pays; but the German
article would pay $1S more duty than
it now pays. This would not be q
disadvantage but a distinct advant-
age to our British debtor as against
that debtors highly competitive ria
who is not our debtor.
Japan's currency is not greatly de
based, but of all the great powers
Japan's labor is on about the loves
wage basis. Japan, like Germany
owes the United States no great wa,
debt. France does. Japan's Low
wage cost now gives her exporters
strong cOmpetitie advantage in ou
markets over the exporters of Franc
with her higher wage cost. But ais
the present valuation system exact
ing less duty in dollars from Japal
than from France, because the hom
: value of the French article is highe
: than the home value of the Japanes
article, magnifies the competitv
E advantage of the Japanese as agains
. the French exporters. The America
valuation plan, on the contrary, tax
z ing exactly the same duty from eacl
: would tend to minimize Japan's loy
: wage competitive advantage agains
the higher wage and higher dut
z paying of France.
: There is much to be said for tn
American valuation plan, as the Ne7
York Herald sees it, and no douh
: something to be said against it. Blu
certainly the one thing not to be sal
against it seriously is that high wag
countries that owes us money Wi
be present by it from selling in on
markets as against low wage coun
tries that do not owe us; on that un
debased exchange countries that ow
us will suffer from it in our MAJ
kets, as they now do under the pres
ent systems penalty against then
{ of heavier duties than are paid b,
the debased currency countries tina
do not owe us.
In view of the fact that there is n
legal and practical way to have
differential tariff system that will
equalize all the varying debased ex
change and pauper wage costs of ez
ports to this country, what bette
solution is there than the propose,
American valuation plan ?-Nev
York Herald.