Milford chronicle., 1921-06-17
SURTAX ON GOVERNMENT
PRODUCED GOODS

Considerable trouble is anticipated
in the near future because of the re-
lationship which various governments
have assumed toward the industries
in their domain. Prior to the war
Germany presented the most notable
instance of a government operating
with private industries to capture
foreign markets and the success of
German tactics in that undertaking is
a matter of worldwide knowledge.
Apparently no considerable tariff
could prevent Germans from driving
our competitors. AS financial writer
for a leading New York daily puts
it,
There Tin Germany the various
cartels, or trusts, received privil-
eges amounting to subsidies which
enable them to sell even at a loss
in the different foreign markets,
and the taxpayers helped with their
contributions in keeping up and ex-
tending the mercantile fleets of the
country. Others among the bellig-
erent countries Round it necessary
or advisable to offer special induce |
ments to their own industries by |
giving them financial support in one |
form or another while the war last
ed, and this has continued to a
greater or less extent since with re-
gard, especially, to what are termed
'key" industries
Having captured the markets. the
German could, of course, recoup their
losses by advances in prices. Today
,he United States is faced with the
of private industries COM
)etlng with somewhat socialized in
iustries in Europe and Japan. Natur-
lily, if our competitors persist in that
'olicy and nothing is done to check
nate it, the protective tariff will cut
title figure in this country with re-
pect to large number of cOmmOdi-
les, since the governments of their
rigin, having taken a hand in their
reduction, may well go a step fur
her and rebate their manufacturers
)r the duties they have to pay to get
ito the American market; or, even
'1thout that, private industries can
OF long operate in competition with
lose operated largely on government
lnds.
There would be nothing decidedly
oVel in adopting legislation to meet
us situation. In fact, it would be
tile more than an extension of Par
graph b, Section w of the present
rlH law, which is copied verbatim
ON the Republican law of 1909. and
men provides that whenever any
'untry shall pay or bestOW, directly
indirectly, any bounty or grant
ION the expectation of any article of
erchandise from such country
ere shall be levied and paid, in all
.ch cases, in addition to the duties
nerW1se imposed by this Act, an ad-
tlonal duty equal to the net amount
such bounty or grant, however The
me be paid or bestowed But this
uld hardly be stretched to cover
oos IN the production of which a =
reign government was a party. In
oltlon to the teamwork of govern
ent and private capital now pretty 3
neral with respect to European key
1ustrles, may be mentioned the re-
nj action of the Japanese Govern q
INT IN loaning its credit to peg the =
ice Oh raw silk. We might well levy -
duty on that commodity, because of
~ action, recOuping our manufac- IIT-
ring consumers by way of draw
ok.
The late Serene E Payne had some
ing OF this idea in mind when he
yocated countervailing duty on
nee because of Brazilian valoriza-
H. step which he ultimately de-
LED not to take because of the pleas
certain Central American countries Hi
10 had pledged their coffee export III
ties for loans already made. Today
entry of governments into indus
IS more pronounced than ever be-
e IN modern history, policy which
utterly condemned by the Repu6li-
party.