Evening star., 1922-01-15
FIXED. TARIFF RATES
AND FLEXIBLE ONES
"A Study Of How Plan Proposed BY Presi-
dent Harding Probably Would +.
Work in, Practics.

which ne 1ntenQS TO Onef ana 0SCu9S
These amendments constitute the ten
tative machinery for the proposed
flexible tariff so-called. Its pur
pose is to make It possible for the
President to change the ad vslorem
ceeding SO per cent Of the rates named
In the law. by giving thirty days
notice in a proclamation.
1t is argued. that this will afford
American manufacturers adequate
protection, endangered by low for
cign cost of production or an excess
sive depreciation OF foreign currency
in the country OF production or origin.
The President, under this plan. will
have the power tolchange ad valorem
rates Of duties. not to exceed 50 per
cent at any time. after recommended
tion' by the tariff commission pre-
sumably, by giving thirty days notice.
50 Briefly, this machinery to bring
about a flexible tariff means. I
that the, President will ascertain
ey or not. in it's opinion. any article
OF commodity of American manufac-
ture is meeting unfair foreign COM
petition IN the American markets.
with foreign goods subject to an ad
valoreI, duty. If SO. the President
exceed so per cent. Iflt is found that
the rate is too high. the President
may lower 1t not exceeding SO per
cent; t2) in ease the foreign market
value Of imports Is retained, the Pres
ident, may have the power. after in
vestigation by the tariff commission.
to fpply the American valuation: (3)
the President may increase the import
duty. not to exceed SO per cent. in case
or depreciation OF foreign currency
exceeding per cent; "a the Presi.
dent may equalize. foreign competi-
posing. 80 days after proclamation.
additional duty. not to exceed 30 per
cent. and decrease not exceeding so
per cent.
Such a flexible tariff plan would
work out something like this: II any
American manufacturer or producer
experiences unfair competition, either
because of low cost Of foreign pro-
duction or because OF low rate Of ex-
change. he may petition the President
for an Increase In the ad, valorem duty
ON some competitiye foreign articles.
The President refers the matter to the
tariff commission presumably for In
vestigation. If the commission finds
the complaint iustifiable. it recon-
mer1ds to the President an increase in
the duty. The President then will is
sue proclamation that after thirty
days the increased rate will go into
effect.
On the other hand, il an importer
COMPLAINS that duty Is too high. he
will have the right to petition the
President for decrease of import
duty on that article or articles. The
tariff commission presumably will
make an investigation and report to
the President. If the President agrees
with the recommendation, he will. by
proclamation. put the new duty in
force at the end of thirty days.
In practice such a flexible tariff"
would operate thus in most instances.
Obviously such a plan would leave
the matter of lowering or raising ad
valorem duties mot exceeding so per
cent OF II e rates named in the law)
presumably the tariff commission.
Another plan proposed is to incor-
porate the general plan of American
valuations In the tariff law. giving
the President authority to apply such
land the judgment Of the tariff conmis-
sion). such American valuation seems
just and adequate. This. 1t Is explain
ed. will obviate the objection raised
by some' Treasury officials, especially
CuStOLHe appraisers, tndl an 1nmeO1-
ate and unconditional application of
American valuation will clog the ma
chinery of the customs offices and
involve the government in endless
litigation. Obviously. this plan would
make the change to an American VAL
uatien system a matter of years of
development. The final working out
of the system would be postponed for
years. At once the question arises
whether Congress would pesmit a
practical transfer of the power to
fx ad valorem tariff rates from Con-
sress itself to the President and
commission. Would such a step be
an abandonment of the tariff as a
political or party issue? Would such
q step mean no more tariff campaigns.
no more tariff in politics? Would
such program mean a shifting of
responsible Representative govern
ment. so far as the tariff Is concern
ed.- from Congress to the President
and a commission?
Two objections have been raised to
flexible tariff" as. popularity under
stood. One is that it is necessary for
manufacturers to know in advance
what is to be the policy OF this gov
ernment toward it's productive indus
tries. 1t is said that there could be
nothing more unsettling than a flex-
be subject to change on thirty days
notice. Importers. 1t is said. might
object to tariff subject to a 80 per
cent advance on thirty days notice.
The other objection raised is that
Congress has no power to delegate to
any person or persons. or to any other
branch of the government. its con-
stitutiona1 authority. Answering this
objection. advocates Of the flexible
tariff point out that the most inn
portant of the five leading United
States Supreme Court decisions bear
ing on this point lays down the
fundamental principles which have
constitutionAlity of that section Of
the tariff act Of 1890 (the MCKINLEY
law). authorizing reciprocity agree
ments. The delegation of that power
was upheld. It is claimed that the
principle of delegation of power I'm
der certain conditions prescribed by
Congress ,ts- ts constitutional The
and the present existing tariff OF
1913 have the same delegation of
limited legislative authority. These
three tariff laws, 1t is argued, per-
NIT the Secretary Of the; Treasury to
impose an additional duty equal to
whence merchandise is imported.
These powers have been upheld by
the Supreme Court. it is pointed out.
The maximum and minimunls tariff
provision of the tariff Of 1903 dele
gates limited legislative authority to
the President 1t is said. The Ford
ney tariff. now before the Senate
committee, 1t Is claimed, delegates
limited legislativerau to execu-
tive offlcers.
In reply to the contention that
Congress- alone can lay and collect