New-York tribune., 1921-04-04
Coal Strike, il Protracted, Will Hurt
Value OF Sterling Exchange, Says Withers
Serious Consequences Involved, Writer Be-
lieves; May Help Speed Solution; Difficulties
Looming in Adjustment of Tariff Proposals

49, --s-
tho workers and owners have bcen
forced into difficult position bv tho
governments sudden release Of the
industry from control after reducing It
to insolvency.
Compromise Attempts in Vain
The owners have made substantial
efforts to meet tho workers on a COM
mon basis, but it seems that the lat
ter arc still obsessed with tho belief
that there is still a great fund Of wealth
that they can somehow tap If they
only persist in their threats to dislo-
cate the country's industry.
Some people are consequently glad
that the contest they believed inevi-
table between capital and labor has at
last begun on this SINGLE issue. Per-
haps it is true that this miserable con-
test had to happen, but no matter how
it ends it can only increase the bitter
ness, and its effects will be disastrous
on British trade and exchange position.
especially IL the struggle lasts long
enough to necessitate British purchases
Of American coal.
The governments measure for safe
guarding British industry as now pub
lished is likely to please nobody and
cause serious hindrancc to q revival
OF trade at time when every encour-
agement is sorely needed.
Tariff Protection Puzzle
Industries believed essential In the
prosecution Of war are to be protected
by tariff OF 33 l-s per cent obviously
so long as war seems possible-and it
Ia certainly far from impossible now
as things directly or indirectly nee
essary for its conduct must be pro-
duced at home.
Complete free trade is possible even
in country so dependent on foreign
trade for prosperity as England onlv
when peace is assured, but this meas
ure Of protection certainly is con-
sidered inadequate by industries en-
joying it and will only stimulate the
appetite of others which can make fake
claims to military necessity.
The same tariff is also to be applied
against dumped goods sold here below
the wholesale price in the country of
origin or at price reduced by de-
preciated exchange rates to point at
which the British manufacturer cam
not compete.
Board Of Trade Decided
In each case the Board Of Trade de.
cides on the application Of the Brit
ish producers where a case is made
out for imposition Of the tariff Clearly
there vii! be much difficulty in settling
questions of dumping, and apparently
as one firm OF any country dumps goods
of certain kind all similar goods from
that country straightway become liable
to tariff.
Thus a considerable element Of un-
certainty 10 introduced, with prospects
of trouble, and the whole obstructive
paraphernala OF certificates Of origin
made necessary as protection against
deprecated exchange is ridiculed as
inadequate by those who suffer Euro
I.pean competition and il effective will
/ only tend to check European trade re-
covery and restoration Of exchanges
to a normal le-el.
Tho whole measure is evidently the
result Of government compromises and
is likely to co considerable damage
without pleasing anybody.
Government Finances
The fiscal year ended March 81. and
with usual astonishing promptitude
the full figures have already been pub.
lished showing a surplus of revenue
over expenditures applied to debt re.
duction Of a23o0OO,OOO. J. Austen
Chamberlain, Chancellor of tho Ex-
chequer, year ago estimated s234,O00.-
900, so the result is remarkably close
1t is fine chunk Of debt to have been
paid off so soon~ but it was all done
out Of special receipts from the sale
of war assets, which are not real reve-
nue. in true sense.
The stock market is dead and there
is little interest in price movements.