East Oregonian : E.O. (Pendleton, OR) 1888-current, 1921-07-28


n few industries may seem desirable Forney tariff bill
has been subject much unfavoabe criticism states the
business and financial conditions published monthly by the
Guaranty Trust Company of New York: .
1.-The American valuation plan likewise been the subject
serious criticism continues The Survey Under this plan
duty based upon the value of similar articles the American
market instead upon the of the article to the importer
The purpose this innovation the law equaize the duty
widely full benefit of the results which the
protective ad vaorem duties designed to produce
evies compared with specific duties, Ii
able to arbitrary interpretation Owing to the alb
sence duties calculations of importers would be sub
ect to additional uncertainty with the consequence that they
would have to allow larger OF profit to the detrment
Moreover foreign goods increase IN cost 10
the importer by reason of the appreciation exchange this
scheme would operate more promptly them from our
markets than would duties based upon invoice valuations Inc
intrinsic merits of revival OF this method OF Yauao here
FORE are extremely doubtful.
Congress should devote thought the ultimate eff
and industry of highly protective tariff
before acing statute books Condera
should be given the effect of high tariff not only upon
particular industries but the welfare OF the country as
whole We should sight of the difference between con-
ditiohs conditions when the law en-
acted The effect of the adoption OF high protective arft TO-
day may be quite unlike the effect of the adoption OF the Payne
Adrch law and similar passed before the war
prior the the United States debtor nation and
comparatively little thought given to the effect OF proec
tive tariff our export trade Today an altogether different
situation obtains and the adoption OF tariff law with rates g
enough interfere seriously with export trade destined
to cause serious injury commercial and industrial life
t is estimated prior the beginning of the Euro
pean capital invested in American securities to the approx
mate 000 The net payments OF interest
and dividends this capital after deducng the amount owed
citizens of the United States on account OF the foreign IN
annual
Sl75000 600 and 2250O0O0O Other payments sucn as e
nenditures of American tourists renittanceS by immigrants
freight insurance etc. brought the total up 10 ABOUT SoOOOOo
OOO that these payments might be met was neces
sary merchandise exports should exceed imports
bv amount And in fact the
excess of exports over imports the years 1911 to 1914
elusive, amounted to approximately S550O00OOO
"Our pre-war status has been completely reversed from
1915 inclusive the demand OF European nations for
goods that the time of our entrance into the war
our Indebtedness European investors had been more than
balanced the imports After
entered the loaned approximately $10000000000 to
allies but the present time they have not been able to
nav even accumulated interest thereon In addition to this
amount billions the disposal OF Europe through
repurchase large quantities OF American secure hed
there and large private investments foreign and
dollar bonds as well as short term export credits.
United States has thus become the leading creditor ma
ton and foreign prepared
ee on their Indebtedness shall be entitled to receive
than interest payments from abroad While
this amount offset considerable degree by tourists
expenditures reghs the balance bound to
though part OF the principal paid
change relation imports the REIN
Vesment abroad of large capital must be expected Eu
ropes debt to qudated While it is true that the
date liquidation be temporarily postponed through
the extension the adoption of similar devices it is
nevertheless that the debt must be paid eventually
goods, not at all.
1T important that the highest possible volume
of export should be maintained we are TO nave norma
production in and factories and FARMS and
we are not to part of produc
tive equipment But imports does not necessta
decrease exports 1t entirely possible tina
The present relation exports and imports be
yersed without decreasing the volume Of exports
We can buy without selling less and thereby enable
Eopean debtors pay off their obligations without cT1ppn
our industries decreasing national wealth in order to d
So study development of foreign trade in Eu
yopean countries will show this to be true -....