Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-11-10

washington, ~. u, nov line
reprisals against the United States be-
cause of the protective tariff act re-
Gently passed by congress, which were
predicted during its tendency, have be-
gun. Great Britain has struck the
first blow and aimed it at the American
rubber industry.
1t will be recalled that during the
months when the tariff act was pend
ing, British interests protested against
the high rates which would keep Brit
ish products out of the American mar
ket. DELEGATIONS of business men from
England appeared before the ways
and means and the finance committees
asking for lower rates. Their appeals
fell on deaf ears. This amounted to q
declaration of economic war. The
United States erected a tariff wall to
keep British goods out. Now Great
Britain, in retaliation, is striking back
at a very tender spot in the American
industry.
The British have well advanced a
plan to make the United States pay a
vastly increased price for crude rub
Der. Not a pound of rubber grows on
American soil. We must import all
the rubber we need for the hundreds
of thousands of automobile tires, for
electrical apparatus and for the hum
dred and one other things to which
this product is put.
The method employed by Great Brit
ain is to lay an export tax on the ex-
port of rubber from her possessions
which produce this valuable commodity.
Such possessions include the island of
Ceylon. the Straits Settlements and
the Federated Malay States. These
are the principal rubber producing
areas sof the world. Brazil produces
rubbed, but because of a difference in
quality and especially because Of the
manner of conditioning for export, the
American rubber industry uses chiefly
producing regions.
The United States consumes as much
crude rubber as all the rest of the
world put together, so any government
tai action by Great Britain tending to
increase its price is a direct blow at
the United States.
The tax must be paid to the govern
ment before the crude rubber can be
exported, so the price of rubber laid
down in the United States will be sub
stantially higher. 1t is too early to
make any definite estimates. but the
rubber industry admits that the action
Of Great Britain will add millions of
dollars a year to the American pub
lies bill for tires as well as for the
numerous other rubber articles of
every day consumption.
The American rubber industry is
protesting vigorously against the ac-
ton of Great Britain. but there is no
reason TO believe that Great Britain
will pay any more attention to Amer
lean protests thar we paid TO the Brit
ish protests against the tariff. Eng
land protested against an American
import tax; now the United States
protests against a British export tax.
Both protests are doomed TO the same
reception.
We Must Pay the Price
The economic result is that England
will sell less goods in our market and
that if we want British rubber We
must pay the price whatever it is
The proverbial American spirit of fair
play must say: That's fair enough
but it is hard TO smile when the flivver
needs new tires all around and when
the bIowouts come. In such a sltua-
ton a %puncture teaches more about
practical politics than a textbook.
Great Britain feels reasonably sure
that the United States must have rub
Der no matter what it costs and she IS
well justified in such an assumption.
Rubber is essential in SO many man
u%factures and is so common an article
of daily use that the people can not get
along without it. Therefore. the price
must be paid and England will collect.
England feels particularly comfort
able about the rubber export tax be-
cause of the debt situation. It is an
economic axiom that foreign. balance
can be paid only in three ways: In
gold. in goods and in services. England
is willing to pay us all the gold she
can spare and recently sent over 500
10000 of the yellow metal. More IS
coming. But she has not enough TO
meet her Indebtedness. The next form
il goods. She would be very glad TO
ship great quantities If goods TO the
American market and vas prepared 20
do SO when the congress put up the
tariff barrier and declared that we
would not accept goods. Payment in
services is going on constantly; that is.
British ships are carrying American
goods. British hotels are entertaining
American tourists, and American ships
are obtaining British insurance. This
is a tedious process.
Now. while this situation obtains. the
American people at the same time are
pressing for payment Of the debt which
Great Britain owes. She hasn't the
gold: we wont take her goods; payment
in services is slow; therefore. some
other plan must be found.
There are some commodities which
the United States does not produce
but which the British empire does.
Accordingly, the obvious thing TO do is
to raise the prices Of such commodl-
ties. The United States must buy from
Great Britain and pay handsomely.
This is Il way Of meeting the debt.
This is precisely what is happening
in the case of the rubber tax. We
must have rubber. That is something
the tariff does not keep out. There
fore Great Britain will pay us IN rub
Der. She wiz not pay US a great deal
of rubber for n given sun but a little
rubber for a given sum La this way
the debt will be cut down.
Similar Heprisals Expected
The officials at Washington expect
the plan to be extended. There are
other commodities which Great Britain
produces but of which We produce very
little or none at all. Tin is n OF
these. 1t would not surprise Official
Washington TO see Great Britain raise
the price Of her tin. To some ex-
tent. the price of tea could be raised,
although there the production OF japan
Y-.yt -- a. 80