The Pleasantville press. (Pleasantville, N.J.) 1912-1929, 1922-07-05
CONFERENCE ON
TARIFF ADVISED
INTERNATIONAL DISCUSSION OF
SUBJECT URGED BY CON-
MISSIONER cULBERTSoN.
U. S. MIGHT PROPERLY CALL 1T
Expert Suggests Steps We Should
Take to Carry Out Our Announced
Policy of Equality Of Opportunity
and the Open Door.
BY M P. hoRNApAY

BY JAMES P. HORNADAY
Washington.-W. S. Culbertson Of
the tariff commission, expresses the
view that there should be an interna-
tional conference on the tariff. The
present tendency, he points out, is to
adopt the bargaining methods-each
nation proceeding on its own hook, so
to speak.
Systems of determinations, espe-
cially between colonies and mother
countries, involve large political as
we'll as economic questions and should
preferably be considered in an inter-
national conference" said Mr.. Gull
bertson. 1.-THE object of such a con
ference should be the fullest consid-
GRAFTON of the advantages which would
accrue to all nations from the appli-
cation of principle of equality of treat
ment and he open door to all colonial
possessions and dominions as well as
to nations. Such a conference might
properly be called by the United
States"
Three Steps Advised.
Mr.. Culbertson suggests that "to car
ry out further our announced policy
of equality of opportunity and the
open door in commercial relations"
the following steps are desirable:
81. In revising old and negotiating
new commercial treaties, we should
adopt the unconditional form and in
depreciation of the mOst-favored ma
ton clause. We would thereby estab-
fish a basis on which to insist upon
equality of treatment in the markets
of foreign nations and by which con-
cessions in our tariff that may be
granted through negotiations will au-
tomatically be extended to other ma
lions and determinations be effectively
prevented.
SO. If this treaty policy is adopted,
we can then properly adopt the sup
Elemental policy of negotiating for
the minimum rates granted by foreign
countries by granting such reductions
in our tariff schedules as may be au-
thorized by the congress for the pur-
pose of promoting our foreign trade.
80. AS a supplement to this conce
sional method, or Independent of it,
we should place in the hands of the
President the power to penaliZe dis
examinations against our overseas
commerce.. Additional duties APP
piled at the discretion of the President
and in a degree to fit each case will
remove many determinations, open or
..E:nI. aD,,1l ,1At en- no ell ~
be reached by the slower method of
negotiating general tariff treaties.
Tariffs are becoming of greater and
greater Importance in international re-
%lations,' continued Mr.. Culbertson.
'They have been employed for the
purposes of fostering domestic indus
try and of raising revenue. But in
addition to these industrial and fiscal
uses, tariffs are used for the purpose
of determining with what countries
trade shall be increased and with
which it shall be diminished. Even
more important in international rela-
lions than the height Of tariffs has
become the practice of preference In
tariffs. Tariffs have thus come to
have international political aspects as
well as domestic economic effects.
Methods of Negotiating.
"In the United States this foreign
aspect of the tariff has, at least until
recently, been regarded as Incidental
and has been taken up more OF less
as an afterthought.
Tariff negotiations may be carried
on by two general methods:
"a. BY the confessional method,
that is, by establishing by legislative
enactment "a level Of duties and then,
by means of treaty negotiations with
foreign countries, conceding reduc-
tons either to rates previously fixed
by law or to points agreed upon dur
ing negotiations.
"B. By the penalty method, that is.
by imposing additional duties on the
imports from a foreign country in or
der to obtain from that foreign coun-
try a more advantageous position in
its markets.
1.-THE confessional method is typified
by the maximum and minimum and by
the general and conventional tariff
systems of European countries and of
Japan. The same principle is involved
in the general and intermediate sched-
ules of. Canada, Australia, and New
Zealand.
1.-THE reciprocity policy pursued by
the United States under sections 3 and
d of the Dingley tariff act (1S97)-one
of the early attempts in the United
States to adopt a general reciprocity
policy, was in the nature of an appli-
cation of the confessional method.
The pending tariff bill as it passed
the house Of representatives proposed
to restore this method of negotiation
with foreign countries, but the COM
mittee on finance declined to indorse
it,
Policy on Trusts Awaited.
The administration will shortly,
so persons who are authorized TO
speak for it say, . define its atti-