Pueblo chieftain., 1921-08-14
BILL
IS REPOS|NC
Continued from Page one)

tariff, when Europe owes us a great
deal of money is quite another thing
Europe owes about ten billion dollars
to our government and about Ave bill
lion more to our citizens. This fact
and the bearing it has on what sort Of
tariff is best for America creeps into
the thought and the utterances of
congressional tariff discussions. Again
and again you find Republicans prac-
tically pointing out that Europe has
only two ways of paying the interest
and principal of this debt. One way
is with gold, the other is with goods
As to the first methud, Europe has
not the gold TO pay us with. and more
over we already have more gold than
is economically good for us, and If
Europe can only pay us with goods. 1t
is doubtful policy to set up barriers
against the shipment of goods. The
capacity of Europe to pay us this
money is none too certain at best. A
wise creditor does not willingly cre-
ate conditions which both discourage
the disposition and impair the capacity
of a debtor already in difficulties.
Besides these, there are several
other factors of Instability. An obvi-
GUS one is the sudden and erratic fluc-
tuations in the relative values OF the
dollar on the one hand and the pound
franc, Ira, mark. and various other
European units of currency on the
other hand. Some of the tariff makers
of the lower house thought this diff
Guilty could be overcome by so simple
a device as basing all duties on the
value of the goods in dollars at the
time of arrival in America, but an
increasing number OF senators foresee
that this will only partially solve the
trouble and that variations in eN-
change will always cause variations OF
manufa cturering costs with important
and unforeseeabl effect on interna-
tional trade. Another undecided fac
tor is whether or not America is to be
a great mercantile shipping nation
President Harding mas always main.
tanned Il as his policy that America
should use the greatest mercantile
shipping fleet in the world. But the
Shipping Board has a disposition to
take America out OF the shipping bust
been contemplating II America is to
have great fleets of shipping we want
to stimulate cargoes. not discourage
them by tariffs. what We are going
to do about the tariff is closely inter-
locked with what we are going to do
about shipping and the determination
of policy on both points will have to
so hand in hand.
Another factor of uncertainty is the
effect that the German reparations
are going to have on international
trade How unforeseeable and dis
turbing this factor is going to be is
proved by the fact that many British
and French leaders of commerce who
|
terms of Germany are now alarmed by
the boomerang effects on their own
trade Some OF the ships which the
British made the Germans hand over
are now being sold back to the Ger
mans at fourth of their cost of con-
struction. Also Great Britain now
knows that compelling Germany to
give coal to France has hurt the
British export trade in coal irreparl
ably The ultimate working out OF the
German reparations in its effects on
international trade including Ameri-
cas-, is quite unforeseeable.
II is this sort of thing that creates
the battling inconclusivensss which is
the prevailing state OF mind of the Re-
publican senators on the tariff bin
Probably the end OF II will be what
the end has been Of several other mat
ters The senate VIII put II up to the
administration 10 determine policies.
The administration has. In the persons
OF Hughes, Hoover, Mellon, Weeks
and other cabinet members, together
with Eugene Meyer of the War Fin
ficials adequate commercial wisdom or
experience to do the best that Is pos
sible under tho circumstances.
An additional PROBABILITY IS that in
the end tho kind Of tariff the senate
makes win be the kind Of
the time. It is increasingly
evident that IN the lack of leadership
in the senate the most important
single point Of power lies in the group
OF senators who speak for the farmers
For that matter. in a broader way. II
IA more apparent that the government
Is going to be ordered for the farmer
more than for any other one class. The
farmer and the farmers spokesman Is
the most up and coming element in
politics II has strong group con-
| sciousness Many Of tho farmers
spokesmen still have no plan more in
telligent than tho shout We want
ours" But u Is also apparent that the
farmers are slowly acquiring economic
intelligence, and. what is more im-
nortant were winning leaders and
friends from outside their own ranks.
among bankers and others who can
think and trade with the best The
farmers are more likely 10 have to do
with tho government than ever before
in the matter Of tariff.
Tho farmer in the immediate past,
has been as waverinE about what he
wanted as everybody else. Six months
ago those senators and representatives
! who depend on tho farmers for their
tenure IN public life were all for n
very high tariff. Moro lately they
have tended 10 more conservative
point Of view. What the farmer r. at
this moment Immediately and intense
Is anxious for is = European market
for his product and he is becoming
conscious that No cannot send hiH cot
less he is willing to let Europe send
something back in exchange.
Finnlly, there ia TT the moment n
j disposition on the part Of the admins. q.
! tration 10 seek a wav out Of the diff
Guilty hy the device of n flexible or
trading tariff. which can be changed
from time to time by the executive 70
meet changed conditions. But n tho
coming conference for disarmament
and the preservation of peace does n
complete Job. Il viii surely consider
: | the forbiddlnE OF everything in the
shape Of discriminatory or trading
tariffs.
= Copyright 1921 by tho New York Even.
Ing Post. Inc)