The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1922-06-29
u. S. MIGHT PROPERLY CALL 1T
Expert Suggests Steps We Should
Take to Carry Out Our Announced
Policy Of Equality Of Opportunity
and the Open Door.
BY JAMES P. HoRNAOAY


cially between colonies and mother
countries, involve large political as
well as economic questions and should
preferably be considered in an inter
national conference said Mr.. Cul-
bertson The object of such con
ference should be the fullest consid-
GRAFTON of the advantages which would
accrue to all nations from the appli-
cation of principle Of equality of treat
ment and the open door to all colonial
possessions and dominionS as well as
to nations Such a conference might
properly be called by the United
States"
Three Steps Advised.
Mr.. Culbertson suggests that "to car
ny out further our announced policy
of equality of opportunity and the
open door in commercial relations"
the following steps are desirable:
81. In revising old and negotiating
new commercial treaties, we should
adopt the unconditional form and in.
depreciation of the most-favOred ma
ton clause. We would thereby estab-
fish a basis on which to insist upon
equality of treatment in the markets
of foreign nations and by which con
cessions in our tariff that may be
granted through negotiations will au-
tomatically be extended to other ma
tons and determinations be effectively
prevented
"2. If this treaty policy is adopted,
we can then properly adopt the sup
elemental policy Of negotiating for
the minimum rates granted by foreign
countries by granting such reductions
in our tariff schedules as may be au-
thOrized by the congress for the pur-
pose Of promoting our foreign trade.
SO. AS Il supplement to this conces-
sional method, or Independent Of IT,
we should place in the hands Of the
President the power TO penai2e dis
ordinations against our overseas
commerce. Additional duties APP
piled at the discretion Of the President
and in a degree to fit each case will
remove many determinations, open or
concealed which could not so easily
be reached by The slower method of
negotiating general tariff treaties.
Tariffs are becoming of greater and
greater Importance in international re-
lations," continued Mr. Culbertson.
"They have been employed for the
purposes Of fostering domestic indus
try and Of raising revenue. But in
addition to these industrial and fiscal
uses. tariffs are used for the purpose
of determining with what countries
trade shall be increased and with
which it shall be diminished. Even
more important in international rela-
lions than the height of tariffs has
become the practice Of preference in
tariffs. Tariffs have thus come TO
have International political aspects as
veil MS domestic economic effects.
Methods o. Negotiating,
an the United States this foreign
aspect Of the tariff has, at least until
recently, been regarded as incidental
and has been taken up more or less
as an afterthought
Tariff negotiations may be carried
on by two general methods:
| "a. BY the confessional method,
that is, by establishing by legislative
enactment a level of duties and then,
/ by means of treaty negotiations with
/ Foreign countries, conccding reduc-
lions either to rates previously fixed
by law or to points agreed upon dur,
ing negotiations.
"B. by the penalty method, that is
by imposing additional duties on the
imports from a foreign country in or
der 10 obtain from that foreign coun-
try more advantageous position in
its markets.
THE confessional method Is typified
by the maximum and minimum and by
.he general and conventional tariff
systems Of European countries and Of
Japan. The same principle IS involved
in the general and intermediate SEIZED.
ales of Canada, Australia, and New
Zealand.
"rhe reciprocity policy pursued by
the United states under sections 3 and
4 of the Dingley tariff act Os9O --one
Of tie early attempts in the United
States 10 adopt general reciprocity
policy, was in the nature Of an appli-
cation Of the confessional method
The pending tariff bin as IL passed