San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-02-04
j. s. MOTORISTS.
TOPAY BRITAIN s.
HUGE WAR Debt
British Export Tax on Crude
Rubber Will Raise
Money.
PLAN SIMPLE ENOUGH
United States Cannot Re-
taliate-No Relief
in Sight.
PLAN SIMPLE ENOUGH

washington, ~. u, req. o'-uTeat
Britain is prepared to disprove the old
adage that you cant eat your cake
and have it, too" for her clever finan-
ciers have devised a scheme whereby
she can pay her war debt to- the United
Estates with money handed over TO her
by the automobile owners and users of
this country. Dominions of the British
empire produce between 20 and so per
cent of the crude rubber output of the
world and the United States, with it's
10,OO0,00U automobiles, consumes about
that same percentage of the worlds rub
Der production.
This affords the background for a
simple little problem in mathematics,
by means of which England intends TO
pay the United States the $5,O0O,OOO
900 she borrowed during the war, to-
gether with interest charges thereon.
She simply places an export tax on
crude rubber shipped to any port other
than one under the dominion of Great
Britain. In fact she has already done
SO, with the result, according TO Harvey
Firestone. the Akron tire manufactures,
that crude rubber in this country has
advanced from IA to 81 cents per pound.
These facts have been laid before the
Department of State and the Depart
ment of Commerce, and have been the
subject of consideration at more than
one cabinet meeting. 1t is understood
that the problem has been the subject
of some diplomatic correspondence but,
so far as known, there is nothing to
indicate that this export tax is to be
abandoned. England's right to levy an
export tax cannot be questioned any
more than the right of the United States
to pass a high tariff law, which has
the effect of giving our manufacturers
a substantial margin between selling
costs and costs Of production. About
all diplomacy can do is to argue with
the British foreign office as to whether
it is good judgment to levy such a duty
at this time.
Motorists Up Against II.
Unfortunately for the automobile
users of the United States, there is
no known substitute for rubber. Ger
many learned that during the last days
of the war and despite the technical in
genuity of that nation, the lack Of this
material caused the breakdown in her
|. transportation facilities and was one oil
Seae factors in bringing Germany to her
knees. But England doesn't intend to
prohibit the export of crude rubber to
the United States. In fact, she wants
lots of it to be sent over here, for so
long as the export tax stands, the more
rubber used in the United States the
more revenue England derives.
1t has been suggested that the Unit
ed States might retaliate by utilizing
the flexible tariff provisions in the
Fordney-Mc Cumber law and place a
heavy duty on many imports from Great
Britain. This, of course, would mean
trade war between England and the
United States and that is not very
pleasant thing for American producers
70 contemplate. 1t so happens there
are few, il amy. commodities in the
production of which this country en-
joys monopoly, even to the extent
which Great Britain has in crude rub
ber A heavy export duty on cotton,
which figures largely in our export
trade. would simply inure to the bene-
fit of the cotton producers of Egypt
and India, both under the domination
of England. Should we put such a
duty on our meats it would simply in
crease Great Britain's trade with the
Argentine and Australia. A temporary
inconvenience is all that would result
TO England If we placed an export
duty on wheat, but the American farm
ers would suffer enormous losses. Thus
retaliation in kind is not to be seri-
ously considered.
Consider U. S. Owned Industry.
H That all this represents condition
and not a theory, however. may be de-
duced from the fact that Mr.. Firestone
and Henry Ford are seriously consider
ing plans to establish a rubber grow
ing industry in the Philippines. This
proposal is said to have the support of
the Department Of Commerce, which
| holds that while it may yet be possible
| TO induce Great Britain to modify her
| export tax, the United States should
Mot remain at the mercy of any other
| nation commercially, if possible. How
| ever. this plan offers little consolation
| for the immediate relief of rubber users
Hin this country. since it will be five
|years after rubber trees are planted
Ibefore they can yield any rubber and
Btwenty years before the trees really
Ireach maximum production. In the
meantime, unless England relents, that
war debt will be paid and there will be
more dollars than pounds sterling in