New-York tribune., 1921-05-04
American Valuation
System for Imports
Indorsed by Hoover
Secretary Says German FL
nancial Structure Must
Soon Collapse if Subsidy
Of Industry Continues
.Fron rhs rrioaxs,s Ewropsen Rsrees


WASHINGTON, May s.--Indorse-
ment of the American valuation system
contained in the permanent tariff bill
was given to-day by Secretary of Com
merce Hoover, who appeared before the
House Committee on Ways and Means
and told Of world conditions in trade
and commerce. He discussed particu-
iarly. the German competition IN the
world markets.
Secretary Hoover declared that If the
German government continues to pur~
sue it's present methods of subsidixing
production of all kinds and maintain
ing fictitious prices through currency
imitation its financial structure must
soon collapse.
The Department of Commerce is
making studies Of the cost of produc-
tion in Germany and estimates, he
said, that about 10000, 10000 marks is
in subsidy to production, the govern
ment paying large part Of the losses
to all lines Of industry. Mr.. Hoover
told the COMMITTEES that this policy re-
suits in cheaper production, but that
the tremendous imitation of paper
money will inevitably bring them dis
aster"
ut is financial process that can't
so on unless all economic laws are
abandoned, but for the present they
are able, for instance, to put their steel
on the market at price no other gov
crnment can meet" he said. The
German government is living to large
degree by sheer issuance Of printed
money
Secretary Hoover declared that the
draft of the committees tariff bill con-
tanned practically the only way to
S1ts rou.refif;cu Hn advCcafod
both broad protective tariff and the
ievying of import duties on American
valuation.
'sThere is a great need indeed for
some wey to meet this terrible cur
rcncy imitation and wide variance in
currency values" he continued. "I as
sumo that if they go on in this imitation
their paper money will be without
value and they will have to abandon
their currency, or at least have cur
rency revision However, | doubt il
they can hold the markets of the world
in this way"
Secretary Hoover said he did not
think the German government under
took the policy deliberately. 1t is the
result, he said, of the situation in
which they find themselves as result
of the social and financial circum
stances growing out of the war
Importations from Germany in some
lines have Increased considerably, he
said, and the American optical industry
has been forced out of even its home
markets by their competition. He esti-
mated that the German steel manu-
facturers are undertaking Americans
IN neutral markets by about $12 ton.
THE policy started" Mr.. Hoover ex-
planned, with government purchase
and distribution of the food supply, and
has gradually extended" On the Ger
man government resale to it's people
of imported foodstuffs and holding
down Of prices to level fictitiously
below the world levels it is losing
about so per cent, he estimated.
Secretary Hoover made brief COM
n1ent on the differential between Amer
lean wholesale and retail prices, and
again stated that he believes retail
prices can be brought into proper re-
lation by the public after the govern
ment has "made an adequate asrer
tainment Of prices" The valuation
feature of the tariff bill, he added,
would aid greatly in collecting accu-
rate figures.