New-York tribune., 1921-11-07
Valuation Plan
Is Condemned
By Economists
Ali but One of n Replying
to QUESTIONABLE Believe
1t Would Hurt Exports
and Er,cumber the Tariff
Warn of Rise i'm Prices
Business Depression and
Idleness Also Would Be
Increased, They Declare

Results OF q ouestionnaire on the
American valuation plan Of the Ford
ney tariff bill, sent to economists
throughout the country by the Bureau
OK Business Research of New York
University, were announced yesterday
by DR.. Lewis II. Haney. It's director.
The seventy-one replies received from
the more than 800 questionnaires were
practically unanimous in condemning
the plan, it was announced. The re-
plies represent twenty three states.
OF the sevanty-one economists, all
but one expressed the belief that the
plan would decrease this country's
foreign trade and increase the difficulty
Of administering the tariff. The poll
on the several questions submitted re-
suited as follows:
Will it decrease imports, yes. 6s no.
L; decrease exports, yes, oo; no, 1;
decrease revenue, yes, as. no, 5; in
crease depression, yes. 5s; no, /; in
crease unemployment, yes, 54; no, 2;
increase cost of living, yes, CT; no, 4;
is it more difficult of administration,
yes, 6s; no, /; increase uncertainty,
yes, 56; no, 4.
The point on which few economists
disagreed with the majority, is the eff
feet of the American valuation plan on
the revenue to be derived from the
tariff. Clearly the effect Of increasing
the valuation basis would be to raise
the duty per unit, but most believe
that the smaller quantity Of imports
would more than offset this raise.
The small minority, which stated that
the plan would not increase cost Of
living, apparently agree that the ex-
port Of domestic goods that we pro-
duce in surplus quantities would be
aindered, thus reducing their price;
and thus, what is an evil for farmers
AID some manufacturers may become
benefit to the consumer.
Many of the economists emphasize
the Importance of our standing as
creditor nation, pointing out that we
must not restrict imports, as these are
payments made by our foreign debtors.
On this score, q statement by Profess
sor j. H. Rogers, of Cornell University,
follows: 81 have just returned from
three months tour of central and east
ern Europe. While there | came in
touch with a great many of the econ
omists and almost without exception
they commented upon this clause in our
tarif bill Especially IN Germany,
where the government is making such
strenuous efforts to meet the repara-
tion payments, they cannot understand
why we should so hamper them, alike
in selling their products and in buying
our raw materials"
common word among the replies is
"subterfuge." The writer's point out
that politicians representing special
interests are trying to conceal large
Increase in tariff duties by rNsing the
basis to which the rate is applied
rather than the rate itself. A pro-
lessor of the University Of Akron
lOhio) writes: "A precipitate and un-
disguised increase in tariff rates would
De tremendously unpopular with the
public at this time, but the same gull
iible public doubtless will serenely
accept this measure with the belief
that it is merely revision of the
method of administration. The aver
age person blithely accepts 40 or 80
per cent rate at its face value, with no
thought of the basis of application"