The Washington herald., 1921-02-09
The Tariff Past, Present and Future.

Inc larln faSt, rTeSent ana Fulure.
N THE last session of Congress when there was
talk OF tariff revision Senator Pcnrose said the
~ time for this had not come When faced by
emergency tariff bill at this session, he
ported opposing it and then favoring it 1t Nas
generally believed that his final decision was that
discretion the better part Of valor.
Senator Penrose's is used merely because
he is chairman OF the Senate Committee on Fl
nance Any tariff measure reaching the Senate is
automatically referred to this committee and he has
then direct and quite complete control Of its for
He fought because Of this fact to retain the
chairmanship Of this committee OF this Congress to
which he entitled by virtue OF seniority, when
the Republicans got control in 1913. He will retain
it without objection in the coming Congress- He is,
moreover, the concentrated essence OF the Repub-
Iican policy OF protection whatever that policy may
be at any stated time, but he moves with events
and progresses with the change OF conditions.
1t is safe to say he is not high protection
it, 50 cNhaltcd in his schedule parapcts he
when this was the great debtor nation Nor has
this modification come to him alone 1t is but in
dcative, partly indeed d reflection. OF what has
10 very pany others who bull
varks Of the hgh-protcction principle
It is thing to be the worlds greatest debtor
nation and quite another to the worlds greatest
creditor nation. 1t is another disturbing factor to
have comparative equality among the money OF
all nations change that this Is the only ono OF
all the great trading nations, whose money values
have not greatly deprecated as compared to that
OF its commercial competitors. 1t /, vcNing Gle
Incnt to have these relative values variable as
the number of competing nations.
So a tariff that would adequately protect Ameri-
can industry as to Great Britain might be wholly
inadequate France, Germany and Italy An
other variance OF this problem is found as to Japan
as to the new Europe and all the ncutras. 1t would
take not d fixed infexiblc tariff law, but financial
legerdcmain, to adjust these differences cquitaby
and rcadJust them with constant exchange fuctua-
tions.
Yet this is but a start in the labyrinth Of tariff
adjustments, if there is to be tariff revision. Not
only does Europe owe this government Sro,ooo,ooo-
900 which it cannot pay the interest, but
European governments and traders American
traders and people in commercial debts and on
securities, over $1,000, 100000 more
1t is recognized by everyone that the bulk of
this combined credit far greater than ever car
ried by any other nation, must be paid in goods
and materials 1t can be paid in no other way
and that imports. high tariff would tend
to prevent through act, the payment Of
these debts due
There is a growing feeling which may become
conviction, that not only any increase Of exports
from the United States will depend increase
of imports, but that to even maintain an equality
of exports will demand this greater proportion Of
imports. On this event the present credit rela-
tons depend; while only through greatly expanded
imports can credit capacity and credit stability be
expanded
But even more than this comes the feeling that
Americas own domestic purchasing power is quite
dependent upon Europes ability to buy and pay.
Even in~foods the products of the farm, Europe has
an eager market for all American surplus, if it can
make this on exchange. But it cannot pay.
If this surplus go where it is wanted and
needed the farmers will have the money to spend.
If it has to stay the farms and in elevators,
the farmers will be in their present financial stress
and have to take a reduced price all their crops.
What is truc-if true-of the farmers is equally true
OF all products of the mills and factories.
1t is comprehending this wholly new American
situation that is giving lot of high protectonists
pause. 1t has ranged the financial powers of the
couptry back of policy Of leave it alone" 1t is
winning converts among just the folks
Mr.. Penrose. high priest of protection, is wise
beyond many Of his followers He is quick to see
and does not lack the mental quality of analysis
Heis hidebound copper riveted in his politi-
cal consecrations He is waiting for to prove
themselves and this is why many have believed
there will be no tariff legislation at this session
and perhaps not at the special session to come