The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1922-07-03
TARIFF DEBATE REPRESENTS
PERIOD OF UNSETTLEMENT
General Business, Like Foreign
Purchases, Awaits
Results.
BY WALTER B. BROWN,
Editor New York Commercial.

&11ANO WV AOAh SAN
written for United News)
NEW YORK, July 3.-Ordinarily
the consideration Of a tariff bill by
Congress represents a period Of unset
Element for general business. This is
because there is no way Of gauging
the effect of foreign competition, with
foreign purchases held in allegiance
during the interval. This is not so
much the case at the present time be-
cause the disturbed conditions in
Europe have reduced the mmediate
menace of this foreign competition.
There has been a good deal of hysteria
in certain quarters regarding the
menace of German competition, but so
far as competing with u W man
ufactures in our own markets is con
cerned, it has not amounted to the
proportions expected of it.
Never before in our history has the
Republican party while in power had
such a hard time preparing a tariff
bill. That which is now to be debated
in the Senate is probably the most un-
popular measure of it's kind that was
even brought up for consideration. The
reason is that it is an attempt to sat
isfy everybody, and of course is pleas
ing nobody. The farm bloc, following
control in the Senate, insists upon the
highest duties on all farm products,
regardless Of the fact that in most In
stances we have a large surplus to
export while the imports are negligi-
BILE. The Senate is insisting upon a
duty Of 80 cents a bushel upon wheat,
Notwithstanding the fact that we i'm
ported only q 5000, 900 bushels last
year from Canada, although we ex-
ported the same quantity to her.
Exports of Wheat
Our total exports Of wheat were just
under 300. 600, 900 bushels. There is
some sort Of an idea prevailing among
farmers that this import duty on
wheat will help them to keep their
prices up. Nothing could be farther
from the truth, 1t IS the exportable
surplus Of wheat in competition with
the exportable SURPRISES Of other
countries that determines the price,
and as long as wheat is an excess crop
no import duty will help it.
But even if these agriculture
theories Of tariff making are wrong.
the motive back Of them is no differ
ent TO that which actuates manufac.
turers in seeking as high a duty as
possible on the articles they manu-.
facture, not always because they fear
foreign competition. but because OF
the excuse given for raising their own
prices. II may be inconsistent, but II
is human nature for the one group to
disregard its own aspirations in the
matter Of tariff protection. while grow.
ing indignant over what other groups
have done along the same line.
Likely to be Serious
AS some of the primary elections
have already indicated, 1t is likely t.
be rather serious for the Republican
party. Voters are exhibiting a ten
dency not to be gratful for what has
been done for them but to punish fol-
equivalent favors shown to the oppos
ing group.
The one point that seems to be
overlooked entirely is that foreign ma
tons can pass r%etaliatory legislation
which is ali probably that will be done
and in the end We may find that some
OF our so-called protection has beer
| dearly bought.
Ship Subsidy Problem
One Of the most complex problems
facing the Administration is that in
relation to the ship subsidy. II we
are to have a merchant marine It Will
have to have Government assistance.
W.. A,v-. -~-, ..-us .-E e tz hays,~ g4gk
sidlzed. but because II happens to be.
long to and be operated by the Gov
eminent the subsidy is not recognized
as such but merely as a deficit in the
Shipping boards operations.
President Harding, and everybody
else for that matter, wants the Gov.
eminent to get out Of the shipping
business, but private owners cannot
be induced to take over American
ships and operate them at a loss. To
make up their deficit would require
a subsidy, an idea which has al
ways been abhorrent 10 the American
people. that is to say, Of Government
giving aid to private enterprise
Shippers Not Interested
The trouble all lies in the, fact that
our ships cannot be operated under
American laws in competition with
foreign ships. Shippers are not at
all interested in whether sailors or
American ships have shower baths
or not. They will send their goods
by the cheapest route.
Altogether business conditions are
shaping themselves much better than
was expected at the beginning of the
year, and as we enter the second
half Of the year it is with the feeling
hat our optimism a been fully
justified.