Evening star., 1926-10-25
TRADE MANIFESTO
| ONLY FOR EUROPE
Mellon Says Plea Has No
Bearing on Conditions
in This Country.

The economic manifesto signed by
European and some American bankers
proposing a leveling of tariffs in the
interests of trade will not be applied
to this Nation. Formal notice to this
effect on behalf of the administration
was given last night by Secretary
Mellon.
The proposed appears to be di
rected to European conditions Mr.
Mellon said in a statement which was
conceived at White House confer
ence, and in its application to Europe
it received his approval.
What the plea OF the bankers
seeks to accomplish in it's fina
analysis" he declared, 'is not q
change in the world, but to bring
about in Europe a condition similar
to that in the United States. 1t is
not criticism of US, but emulation"
Defends L. s. Tariff.
A cut In the American tariff would
reduce rather than increase United
States purchases abroad. the Secre
tary argued in a lengthy defense OF
the present tariff. for 1t will occasion
unemployment here and reduce our
purchasing power: will diminish this
country's consumption Of commodi-
ties and cause large SurpluSes of the
worlds principal products.
1t would not enable foreign coun
tries to sell more in American mar
kets, but would prevent them from
selling as much" he went on. at
would not help certain foreign ma
tions to recover from losses occasion.
cd by the war. but would retard such
recovery"
II the American tariff is taken off
Mr.. Mellon declared. a larger share
OF manufacturing will be done abroad
where the costs are less" AS an
example he cited the situation Of the
Aluminium Co. Of America, in which
he was a large stockholder. With
the present tariff on this product the
company now supplies it's American
market from domestic plants. al
though it has properties in many
other countries where labor is cheap
er. If the tariff was removed, he ex
planned. it would be profitable to sup
ply part of the American market
from abroad.
Sees Harm in Removal.
The effect of removing the tariff
on aluminium" he said, would not
In the least be to hurt the aluminium
company, but to deprive the United
States of the benefit of enlarged
manufacturing here. Less capital
Will be invested here and less labor
employed.
The United States is the largest
customer in the world today If we
were not prosperous and able to buy,
Europe also would suffer. 1t is in
conceivable to me that American
la hn 1E-il1 to hal
ton of protection which would bring
the American standard of living
down to the level of that in Europe,
or that the American farmer could
survive II the enormous consuming
power of the people in this country
was curtailed and his market at
home destroyed"
The fact which gave rise to the
plea for the removal of restrictions
upon European trade" stating that
tariff barriers. special licenses and
prohibitions imposed IN Europe since
the war, interfere with international
trade and prevent ii flowing in nat
ural channels. and should be re-
moved" Mr.. Mellon declared. "is the
breakup of the cd political units
and the rearrangement of the con
tinent along ethical and not COM
mercial lines"
Power Lies i'm Unity.
The situation III Europe since the
war is different from the situation
IN America" he continued. The two
would only become compa rable if we
should consider each of the 4S States
q separate nation. each having it's
own tariff, its own railroads, its own
currency and its own language.
Under such conditions the indus
trial power Of the United States must
and would end"
Like standards of living prevail in
all OF the States of this country and
virtually all Of the European nations
have similar standards. he pointed
out. but the standards of America
and Europe differ widely and unless
we are willing TO bring our stand
ard In America down to the level
OF that of Europe. we cannot CON
Sloer a change III our tariff. however
desirable such a change NAV seem
TO Europe
Our tariff policy has been mainly
responsible for the development Of
manufacturing in America" he as
serted. Our tariff policy has brought
TO labor the highest real wages in his.
tory. The development ot nanufac-
proved methods and quantity produc-
ton and We have been able to make
and distribute at relatively low
price. considering the high cost of
labor. In many lines we more than
meet foreign competition with its low
labor costs.
Wages Create Demand.
In turn. high wages have created
great consuming population which
has been the principal factor in our
reaching quantity production and thus
low costs. A study of the industries
in this country shows very small
margin of profit per unit and large
profits in the aggregate. possible only
through large turnoverS. These rea-
sons, / think. account for the pres
ent exceedingly prosperous condition
generally Of our country.
THE trend of trade during the past
contention that the volume of imports
Is controlled by the purchasing power
OF the nation, rather than the rate Of
import duties assessed"
The Secretary declares that Europe
was selling increasing quantities of
products 10 America, mostly in the
non-dutiable classes. things the United
States does not produce.
mo doubt TO those who have been
misled into the belief that at the pres
ent foreign countries cannot sell to the
United States. the statement that dur
ing 1926 no less than co. per cent
Of the total of imports were free of