The New York herald., 1922-02-01
SCHWAbPLEADS FOR
us. VALUATION PLAN.
Present Policy Hurts Whole
Industrial Fabric, He
Asserts.
HOLE IN EXISTING LAW
Exchange Fluctuations Play
Havoc With Wages, Prices
and Orders.
HE GIVES TWO EXAMPLES
HE GIVES TWO EXAMPLES
Tariff Weakness Cited in Let
ter Read to Convention
in Washington.

Special Dispatch to THE NEW YORK HERALD.
New York Herald Bureau,
Washington, ID. c., dan. 81.
Charles N. Schwab, chairman Of the
Bethlehem Steel Corporation, urged
incorporation Of the American valua-
ton plan In the Fordney tariff bill in
letter read to-day to the special
convention Of the National Associa-
ton Of Manufacturers.
American valuation must be written
into the tariff policy. Mr.. Schwab ar
gued, to prevent foreign countries
from flooding the United States with
cheap products. a flood which would
throw American workers out Of en-
pleyment. Fluctuating exchange rates
have made the old tariff policies inef-
fective, Mr.. Schwab said, In protect
ing American industry and its work.
ers. His letter follows:
Except for business engagements in
New York, which could not be post
poned, I would have been happy to ac-
cept your cordial invitation to speak be-
the principle Of American valuation as a
basis for tariff duties.
'Indecision is the greatest handicap to
progress. At this particular period OF
readjustment, when the whole world is
calling for action, nothing could be moro
beneficial than a meeting such as yours
to give expression from the North, South.
East and West, Of the united wish Of
Americans that we rebuild and recon-
struct upon sound economic foundations
Basic Weakness I'm Policy.
To-day we are confronted with a
basic weakness in our tariff policy which
is affecting. injuriously, the whole indus
trial fabric of the nation. Fluctuations
in foreign exchange are playing havoc
with wages, prices and orders. Because
our present tariff laws were framed at a
time when foreign moneys were normal,
they are to-day actually imperative as
far as protecting labor and industry or
yielding revenues Is concerned.
Two examples will suffice to illustrate
and prove these statements. An ounce
Of gold to-dayin the United States pays
the American worker for 1929 hours of
labor as against 50.16 hours In England,
95.5 hours in Japan. 1871 hours In
France and 201.55 hours in Germany.
Last year Congress passed bill restrict
ing immigration to protect the American
worker from the millions of foreigners
who would have flooded our labor mar
kets and caused a panic In wages.
But what advantage is there to-day
to the American worker to have re-
stricted immigration. IL. through defects
in our tariff. the products OF these mil
lions of men and women abroad are now
Cutting our markets and forcing millions
of workers out of their positions? What
better employment insurance could we
have than tariff law Which insures the
American worker his job in competition
with the workmen of the world?
Hypothetical Case.
TN 1915 it required the work OF 5000
men for one day to make 1000 tons Of
steel rails. Let us suppose that to-day
an American railroad placed an order
for $4,000 tons of nails IN Belgium. Ger
many or England because these rails
might be bought for less money than at
home. This would mean that 5000 men
in our own country would be idle for
fifty days. 1t would mean that several
thousand employees of Qur railroads
would have less work bec\ise the rail-
roads would be deprived of hauling these
rails and the raw materials, such as
coal. coke, iron, &c. which come from
the mines to the mills. 1t would mean
that thousands OF miners would have
les work II the product of their labor
were not used by the mills. 1t would
mean that the workers of the mines.
mills and railroads would have less
] money to spend for the necessities Of
life with the baker. the grocer or the
retailer. This tendency to buy abroad
mt the expense of our own country is
shortsighted economy.
'What can be done to meet this sit
| uation?
To-day the whole world seeks our
cooperation and assistance. We, az
Americans. have listened always to the