Perth Amboy evening news., 1921-10-06
BANKERS HEAR
Of FREE ZONE
Can Develop Foreign Trade
by Free Ports and Zones,
Henry NJ. Robinson Says

uN winch me lu4ttA SNdte
can develop her foreign trade anC
at the same time maintain a protec
tive tariff were outlined here todal
when Henry NJ. Robinson, formerly
commissioner of the United states
Shipping Board and now presiden.
of the First National Bank of 10.
Angeles and the Los Angeles Trus'
d Savings BanS, placed the entire
problem of free ports and free zones
before the American Bankers Assoc
ciation in annual convention, through
his discussion of the trade zone bill
which Senator Jones, of Washington
now has before congress.
Mr.. Robinson-an international
fgure-whose opinion on national
affairs is widely recognized, spoke as
n interested both in a protective
tariff and in foreign trade. and
pointed out the apparent inconsis-
tency of attempting to develop both
at one and the same time. stating
that Ii is only through the establish
ing of a free port n a free zone
policy that the foreign trader and
the protectionist can meet on COM
mon ground and the ends to which
both are working a be accom-
plished.
After pointing out that the Jones
bill, as now amended, provides nec-
essary machinery for the creation
OF foreign trade zones in, or ada
cent to, American ports OF entry, and
authorizes the secretary OF COM
merce TO grant &c states, munietpall-
ties and their legal subdivisions the
privilege of establishing such zones.
Mr.. Robinson summarized the pro-
visions of the bill, and pointed out
that. whereas, under the terms OF
the bill, both foreign n domestic
merchandise may be brought into a
tree zone and there be broken up,
assembled, mixed with foreign OF
domestic merchandise or otherwise
manipulated for re-export. direct
manufacturing, as sch, may Q pe
c@rried on within lie proposed as
t-.cts-tfis - : 10 meet t2e
wishes of interior communities ana
to aIlay their fears as 10 seaboard
manufacturing competition.
Mr.. Robinson said in part:
Under the terms OF act. no
duty is to be applied 10 merchandise
delivered from ship - wharf WIN
il a free zone unless some par. or
Ill. of it is taken out for domestic
consumption, at which time it will
4ss through the customs house and
subject to regular duty.
I'm other words we may, within
certain districts within our ports Of
entry, be free trade nation and at
ile same time protect ouI " dom
tic markets from q food Of cheap
l. manufactured European and Asl-
aic goods.
1T is automatic that, for the pro-
lection OF the American manufac-
turer, a method must be provided
for the maintenance of a merchant
marine which will carry abroad h
surplus of American manufactured
goods; otherwise, these goods must
continue 10 back 10 upon our OWo
markets and thereby reduce b
earnings OF cur manufacturers. the
c@oitS OF our merchants and the
e2rnings OF american labor, itself.
There IS appearing from -nc 20
lime in certain publications the sug-
gestion that most of our products
are consumed at home and that only
about o-ne-seventh is available for *
port, and, hence, that our foreign
trade is a relatively unimportant fac
tor in our national prosperity.
Accepting these figures as true,
economists generally agree a sur
plus is the controlling factor. Is 1t
not, therefore, reasonable to assume
hat it is the backing up of our man
ufactured surplus and our inability
to sell abroad that has brought about
our unemployment situation?
"Since the beginning. any nation
that has engaged, with any appre-
cable degree of success, in i~nterna-
tional commerce has been either on a
free trade basis, or has maintained
r.lA Aar4- - fRnn UnnnE
For years, however, we, as a ma
ton. have maintained a high tariff,
and mosht of the time a very high
protective tariff. and. for half a CEN
fury our flag has been a comparative
rarity upon the seven seas.
"Came the Great War, and demon
strated beyond cavil the need for the
maintenance of a merchant fleet, if
in time of war. the nation is to be
protected-and this, whether the val
be military or economic.
1.-THE Great War also demonstrate
ed fully the interdependence of peo-
pies and nations-and their depend
ence upon world trade.
"Since the maintenance of a mer-
chant feet is obviously predicted on
world trade, it is evident that a high
protective tariff, world trade, the
AelAA III - AAAEA 40 n.y. wa
the financial and commercial ccom
paniments of those operations. are
inconsistent. but experiences of Eu-
ropean nations show cOnclusiVely
that a modification of this incOnsis-
tency ear be brought about without
definite injury to the principles in
volved in a protective tariff.
I'm fact. If the feeling continues
to grow that we should engage in
world trade and maintain a merchant
fleet, as a necessary corollary. the
principle of protection must. of ne
cessity. be greatly modified, unless
some method is devised hat will per-
init a world trade of merchandise in
and out of our important ports of
entry without the delays and expense
attendant on our present methods of
operation.
1T is true that under the present
law imported merchandise may be
impounded in bonded warehouses
and withdrawn for trans-shipment,
or may be im~pounded. Withdrawn
and manufactured and then trans
shipped in foreign trade with a draw
back of the customs paid. This plan
was intended to meet the needs of
world trade. but is nearly iuopeTa-
tive and utterly fails of accomplish
ing the main purpose. IN that the
time consumed in vessel delays and
n the Ucwinding OF red tape mill
tates against such an operation.
IF ii be true that the cost of OPP
eration OF our merchants ships is
to be greater than that of the i'm
portant competing nations. some
method must be devised TO balance