Perth Amboy evening news., 1922-10-14
FREE PORTS IN AMERICA
DESCRIBED BY HASKIN
Daily Letter by Frederic J. Haskin

WASHINGTON, Oct. 11.-After
a year and a half of effort congress
has just passed a new tariff act
levying increased customs duties on
imports into the United States. This
legislation has brought forward
anew the question of the wisdom OF
establishing free ports in America.
A free port is d geographic ex-
ception to a nations tariff. it is
a city or a specified one in a city
to which foreign goods may be
brought, altered or manufactured,
and re-exported without the pay
ment to duty. The official de1lni-
ton given free ports by the United
States Tariff Commission reads as
follows:
"a free port or free zone is a
place, limited in extent, hat differs
from adjacent territory in being ex-
emp from the customs laws as at
fecting goods destined for re-export;
it simply. that as regards
| customs duties there Is freedom,
ua. less ami until imported goods en-
ter the domestic market. "A free
zoIe may be defined as an isolated
inc.osed and policed area, without
resident population, furnished with
the necessary facilities for lading
and unlading, for supplying fuel
and ships stores, fol storing goods
and for reshipping them, by land
and water: an area within which
goods may be landed, stored, mix
ed. blended, repacked, manufac-
tured and reshipped without pay
nlent of duties and without the IN
tervention of customs officials. 1t Is
subject. equally with adjacent re-
gions to ell Jaws relating To pu"-
lie health, vessel inspection, postal
service, labor conditions, immigra-
tlon, and, indeed everything except
customs"
There have been two great par
ties in the United States practically
since the foundation Of the repuo-
lie. One has espoused the princi-
| pie of free trade. that is the free
import of goods without payment OF
customs duties; and the other has
espoused the principle Of protec-
ton of native industries throush
the medium of a high tariff which
Will prevent foreign goods from
coming here and selling as cheaply
as the home product may sell.
Basically, the broad reasons for
and against a tariff are the follow
ling: A thickly populated country
producing its chief wealth by MANU-
| featuring imported raw materials
and selling them obroad benefits by
free trade because it inust get its
materials with which to do bust
ness from outside. In such a cas- a
nation imposing a tariff would BIS
taxing itself for the priv !lege Of do
ing business. Second. a relatively
sparsely settled country the
chief produce of which is raw
materials, but which IS seeking t
establish industries for manufac'
ture, can afford to impose a tariil
because it does not require absolute.
ly the goods of the outside worlc
land to admit such goods freeli
would retard the development o
loCa! manufactures.
Examples of Free Trade and
Protection
In modern times tie Two out
standing examples Of such natloni
have been England, an island will
moro than $4,000, Goa population
the chief wealth OF which arise
from manufactured goods; and tn
limited States, a territory of cont
mental extent with only twice a
many inhabitants, whose chit
wealth consists in raw materials o
agriculture and mines.
England is a free trade countr,
additionally and the United state
a high tariff land.
But in recent years n trem.end
Gus advances of industry in tn
United States and the inflow OK OF
manufactured goods and those o
other countries to Englsnd, hav
served to break down the OLD ira
6iticns. There have been stron
Ieanings IL this coGntry G3war
lfrter opportunities to manutactu'
and sell here or re-export forels
commodities on some imports.
England's duties apply chiefly t
lluxuries and to goods which com
pete with her own manufacture
but her new policy is chiefly espous
ed for the purpose of raising bao
IL needed evenu Her olo ire
trade tradition has been but sigh
ly shaken and, If normal times re
turn. it is likely some of her exist
ing tariff levies nay be remove
or reduced.
The United States is several cour
tries under one government. TheI
| are geographical divisions whic
+, lpresent the sharpesr contrasts. Ne
| England, for instance, is a regio
lcomparable to England itself frol
1.-THE viewpoint Of congested mani