Evening star., 1922-01-15
pY EDWARD \. D1NGLBY.

for the country. He called 1t 9
''nexible tariff. = saying "pououess
we are justified in seeking more
f,exibfe policy than we. have pro-
yided heretofore. I hope way Will
be found to make. for fexibiiity ana
elasticity so that. rates may be ao-
justed to meet unusual and changing
conditions. which cannot be accu>
rateIy anticipated. 49, know of no
manner in which to effect this neAi-
bility other than the extension oil
the powers of the tariff commission.
so that 1t can adapt itself to scien-
tific and wholly just, administration
of the law. . The grant OF au
thortty to proclaim would necessarily
bring the tariff, commission into ne"
and enlarged activities. because no
executive could discharge such duty
except upon the information acquired
and recommendations made by tnis
commission. But the plan IS feaslple
- / believe Congress ought TO
we'll consider the desirability OF
n proyision authorizing proclaimed
valuation. under prescribed ,condi-
tions on any given list Of articles lm-
ported. = II our tariffs are to DC
made equitable. and not necessarily
burden on imports and a hlnoranee
fo onr trade abroad. frequent ADJUST
ment will be necessary for years 10
come. think we shall go long
xaxs toward stabilisation II there Is
recognition Of the tariff commission
fitness TO recommend urgent chahses
by proclamation"
- 4 y
The purpose OF this article Is not u
interpret the language Of the Pres'.
dsnt. but rather "a to inquire "ha'
is meant by a flexible tarin. ana ~
to point out how a so-called neAio'e
tariff would work out. probaoH.
There have been Ave general ana
nermanent tariff laws framed sihoe
the civil war-the, Mckinley Ia" OIL
1890, the wilson law OF 1881 'he
D,ne,ey.law of 1897. the Payne law OF
1903 and the Underwood law OF isi'
The fundamental and underlying prh-
cinle DISTINGUISHING, these tarin laws
hos been one Of rates. The matter VI
.o,uation has been little considered
that being fairly, well established as
a General proposition. while foreign
.xcnanee or the gold value of for
eisn coin has remained prac''cans
Axed and unchanEing. Today the S'."i
onestion, so far as ad valorem ,.,es uu.,es
are concerned, Is what Is the
ton? ..au rate he
n,aeado THAT depends upon the vaiua,
lion The amount of protection WIN
rary II the rate is hXed. Out 1ne
valuation changes radicais. -;
question of adequate protection' nDm ,Sh,,
depends upon the VaiIaon 1au a. r.ye-
nne tariff and a protective tarrti 80
far AZ ad yalorem duties are CON
cerusd, deoends upon the Ha'ua'i'i'
of the articles
i aa* *.r.
Hitherto. the line has been drawn
between the cost of production ABROAD
and at home, so far as competitive
products are concerned.
Durink all these years there was
An established rate of exchange oe-
tween all leading Industrial and pro
ducine countries. The monetary unit
of currency in each country mas uai
a substantially fixed gold value IN
other countries, Influenced alone oy
supply and demand.
Under these conditions. 1t has neen
possible to calculate the gold cost OF
production of any article In any
country. by reducing such cost TO
the American gold dollar stanoard.
Between 1914 and the close OF the
world war. excessive issues OF paper
money by all the warning nations and
some not in the war. have thrown
international monetary exchange out
of balance, and brought about Sio-
lent changes. until it is found fmpos.
sible, practically, to determine actual
cost OF production in many foreign
countries. producing merchandise and
products coming into competition with
similar domestic merchandise ana
products.
1t is readily seen that il difference
in cost of production is made the
basis Of an import duty. and dts
ordered. deprecated or unstable cur
of values, 1t Is impossible to deter
mine actual cost of production when
measured In American gold dollars.
The basis OF such import duties Is
disturbed, if not destroyed. Under
such conditions. the framing of a
comes exceedingly difficult. some say
impossible.
X x = < b.
1t is we'll said by some that GER
tain ad valorum rate of duty on an
estimated cost OF production On June
/. for example. might be entirely in
or six months. due entirely to the
wild fluctuations of currency in the
country of production.
To obviate these difficulties. to as
sure American manufacturers an ade-
quate protection against unfair for
place q value on the foreign mer-
chandiss equal to the wholesale price
or cost of production Of similar or
comparable American merchandise.
Under such plan foreign cost Of pro-
cases of comparable articles. The
duty. 1t Is proposed. shall be fixed on
the American valuation of similar or
comparable articles or products. This
is a simple statement Of what Is
plsn,. Incorporated in the Fordnly
btll, and now the bone OF contention
before the Senate committee OH
finance.
The Fordney bill proposes a, change
plan to the American valuation plan.
as soon as the bill is approved and
becomes a law. = 1t Is claimed by
some, among them Treasury experts,
that such q sudden wholesale change
praisins or assessing imported mer-
chandise out of joint and overthrow
many department rulings and many
court decisions. Many importers OBJ
ject to this American valuation plan
put into operation at once. on the
rates in many cases -
- ~ - l.