The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-02-18
THE TARIFF SMOKE SCREEN.

THE TARIFF SMOKE SCREEN.
The Fordney emergency tariff bill
has been passed by the senate. 1t now
goes to conference, where probably it
will remain until congress adjourns.
BY its promoters 1t is said to be de-
signed primarily to help the farmers.
Doubtless they know that it would do
nothing of the kind.
OF what benefit, for instance. can a
duty of 40 cents a bushel on wheat
be to american producers? This
country is an exporter of wheat, not
an importer.
A committee has been selected in
Topeka whose work in conjunction
with that of similar committees it,
other cities promises to be of greater
benefit to the agricultural interests
than all the tariff bills that could be
passed in a century. This is the COM
mittee named by the Foreign Trade
Financing corporation.
Senator Edge, author of the law
under which the corporation has been
formed, said m recent interview:
Va OAiO IAAiISS VIC IiiuoS Sdi Cl ulAy
consider just what retaliatory meas
ures a high protective tariff at this
time may invite from most countries
which already are buying our goods
or are disposed to buy them. We
must consider whether the additional
income We might receive from an
emergency tariff will compensate the
y,aa
ness and the American people at large
for an inevitable falling off of imports
which ultimately must follow. We
must consider whether, thru this
method, we can artificially raise the
prices to the producer and still find
him a market abroad or even at home,
even If we do manage to keep his
competitors out of this country"
We cannot consume all We pro-
duce and the surplus must be sold
outside our own country, and 1t is
manifest that we cannot sell it at
prices established by ourselves If
these prices are materially higher
than general world prices based on
the law of supply and demand.
SO-OpCIdt1Oll VI lIlO ClliSl SASllShl5
in Americas productive establish
ment-bankers, manufacturers and
farmers-is being relied upon to alb
serb and help dispose of the $780,
600, 900 issue of capital stock of the
Foreign Trade Financing corporation,
which is now being formed under the
Edge act for extending long-term
credits to foreign purchasers of
American goods. According to an an
nouncement made by John McHugh,
chairman of the committee on organ
| ization, committees made up of rep
resentatiyes of these interests are be-
| ing appointed in each federal reserve
district and each federal reserve city.
Such committees have come into be-
| ing and are now at work in more than
| half of the sixty-four federal reserve
cities.
This corporation was chartered on
January % by the federal reserve
board 1t is the result of two years
study of the foreign trade situation
| by a committee of the American
Bankers association, which drew up
the plan for it's organization. This
plan was approved by the chamber of
commerce of the United States, the
national foreign trade council, the
American Manufacturers Export as
ISOLATION and the American Exporters
and Importers association. In view
of the worldwide need for American
goods, it was felt that the scope of the
corporation must be worldwide, and
therefore a large capital should be
employed This capital is equal to
that of the twelve federal reserve
banks.
/ While the stock subscription books
have been open only a short time, the
organization committee reports a
| gratifying response from all sections
of the country. Many banks and bust
ness firms. it says. have subscribed
| and there is being shown a consider
able interest among individuals who
can not expect to profit directly by
the operations of the corporation
Many farmers have made subscrip-
lions, and farmers organizations are
active in support of the movement
/ No product can be continually sold