Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1921-03-28

Tariff Plan
Weakening
Prolectionist Doctrine for
American Industries Grow.
ing in Favor-Scntiment
Changing in South.
u. S. Banker for World
By ARTHUR SEARS HENNING.
Chicago Tribune Omaha Bee Leased Wire.

Washington. March 27.--We now
have with us again tariff revision
upward, this time, for the protcc-
ton of American production and
Tor the production of revenue.
With the United States credior
nation for the first time in its his
tory. however, the century po-
litical question takes ON a new as
pcct. Instead of the United States
owing Europe billions OF dollars,
Europe now owes us $4,000 ,000,VG
ior government loans and credits
by American business interests. We
have succeeded Britain as the
worlds banker.
SO now, mingled with the old
time pleas for protection for in
fant industries" and protection 10
cqualize the cost OF production at
home and abroad, we hear areu-
mcnts from orthodox high protcc-
zionist quarters in favor of moderate
duties which will encourage foreign
trade and enable the debtor nations
t. pay their debts TO the United
States in commodities, as did the
United States when it owed Europe.
Democratic Stand Weakening.
Likewise democratic devotion to
free trade or a tariff for revenue
only appears TO be weakening, The
solid south, with its expanding man-
uiactureS and its keen competition
with the foreign growers OF some
agriculture products, is shot through
with protectionist doctrine. It's a
south lar different from that which
dubbed the protection OF 1873 the
tariff Of denominations,
The tariff heretofor. was chiefly
domestic question, being framed
for the specific purpose OF keeping
out imports which compete with
American manufacturers. Now it is
urged that the tariff be used also
as a weapon for getting more liberal
treatment in foreign countries ior
the export products of the United
States, the movement along this line
having crystalzed into a demand
for bargaining tariff.
A few classes OF manufacturers
such as the makers of automobiles
the steel manufacturers and the cam
ming industry, an OF which are most
concerned i'll developing foreign
markets and are able to hold their
own in domestic markets with a
moderate degree of proteo.., ": -rs
willing to have the new prliciple
apply to their own products. In the
case of a great majority of manufac-
turers, however. there is little evi-
dence OF willingness to accept lower
rates of duty. either on the broad
theory OF facilitating the payment al
the foreign debt or with the spcciti:
purpose OF encouraging reciprocal,
relations and favorable treatment
toward American products.
New Law Compromise.
Those desiring more Liberal
tariff policy base their arguments
chiefly on the advantage OF encour-
aging reciprocal relations. There IS
little disposition on the part OF any
element in the republican ranks de-
liberately to sacrifice domestic mar
lets in order that the foreign nations
may pay their debts.
The tariff law which will be placed
on the statue books probably nor
much earlier than October |. will be
the result OF numerous compromises.
The house ways and means conA-
nittee, which conducted hearings
for six weeks in January and FEB
ruary and for the last week ha.
been engaged in the actual drafting
OF bill, is likely to show ten
dency toward extreme protectionist
views
The house committee may reject
the proposed bargaining tariff. The
senate finance committee probably
will tone the bill down. giving more
attention to the developing OF eN-
port trade and may approve bar
gaining tariff. The measure as final
ly enacted into a law. probably will
contain rates OF duty averaging
somewhat less than III the former
Payne AIdrich law Tie highest
rates OF duty will be provided for
chemical and other industries built
up during the war and which are-stih
ir the infant" class Desirability of
building uo the so-cailed war indus
tries will be all important phase of
the tariff questions. There will be
numerous commodities on which
rates OF duty will be, little ii any
higher than III the present Under-
wood law.
Benefit to Agriculture.
Agriculture will receive more con-
sIderation than ever before in the
framing OF the general tariff law and
IN this connection votes OF a COR
siderable number of southern demo-
Gratis can be counted upon for the
protection of products in which their
states are interested.
The foreign exchange problem is
one OF the new elements entering
into the situation. One OF the results
OF the present Abnormal exchange
conditions has been the decision OF
the republican leaders. with the aps
proval OF President Harding, to put
through congress at the beginning
OF the special session. bill abar-
doning the present method of baA Z
ing import duties on foreign values
and substituting system of Amer
lean valuation.
Various complicated schemes for
obviating exchange difficulties under
the present foreign basis of yalua-
ton have been proposed, but prob
ably will be rejected.