Evening star., 1926-09-05
BY WILLIS J., BALLINGER.
.HE United States stands on IL

HE United States stands on the
brink of another great tariff
battle, which Is going to have
far-reaching effect on Ameri-
can business and is going 10
play some strange pranks on existing
political parties.
This is the view of Lynn Haines.
nationally known editor Mr.. Haines
gives his time to sitting in watch
tower and observing the movements
going on among the nations rulers
and lawmakers.
| had heard that the farmers and
their leaders were contemplating an
onslaught on the tariff as means
of retaliating on the industrial inter
eStS, which are said to control Con
gress. and with the hope of frighten-
ing them into some kind of farm re-
lief measure. | asked Mr.. Haines
about that and whether on not he
believed a revival of tariff agitation
was coming.
He ansWered-'YeS"-h the rea-
son which he gave was altogether diff
ferent from the one I expected.
"Once upon a time the so-called
business interests of the country
were more or less united on the pro-
tective tariff issue. The predomi-
nance of business control. particularly
in one of the great parties, made the
tariff possible. Now A rift has ap-
reared in the business interests. The
manufacturers. who are the dlfec'
Eeneficiaries of the tariff, want the
walls maintained, and in many cases
raised higher But the financial in
tcrests are coming around slowly to
an advocacy OF a ,oWer tarlH.
Reason Lies in Loans.
THE reason is to be found in our
anoruous loans abroad--the loans.
mean. being made to foreign indus
tries. The success of these loans ana
of still larger ones in prospect VIII
depend on the industrial rehablilta-
tion of Europe and the development
of the favored industries in all sec
tions oe the world. Those industries
must have market. They must pe
able TO sell in America. II they 40
sell in America. they will come INTO
collision with our manufacturers. III
they cannot sell here the soundness
of the loans will be impaired.
."The bankers back OF the loans
therefore want our tariff reduced so
that these industries can find markets
here. Our manufacturers want the
tariff raised so that they VIII be kept
ont. This means division between
two power forces which were once
united
"Do I understand that the loans we
have made to foreign governments
and our still pending war loans have
anything to do with this"
''Yes, but only indirectly. Remem-
ber, we have made two kinds of loans
abroad. First, we have loaned to
European governments. Then IN the
last two years we have been lending
mostly to private industries. But we
have been putting our money there
in an entirely different manner about
which very. little has been heard.
American capitalists haTe been actu-
slly investing in private Industries.
These investments have been of two
kinds. American Industrial inst1tu-
tions have been establishing produc-
ing plants in foreign countries. But
also CAPITALISTS have been buying up
large blocks of stock in foreign in
dustrial enterprises. In my opinion
the loans to private industry are much
smaller than the investments IN prl-
vate industry.
Must Have L. $. Market.
Now the only way in which those
Industries can pay dividends IS ny
selling goods. And as we are the only
great nation with a real, vigorous
purchasing power, they must sell
them to US. And those who have In
vested their money abroad are inter
estei in giving their investments the
best possible conditions in which to
flourish. And this means opening the,
gates in our tariff wall so as to per-
init the products of these industries
to enter.
.'Thus we will soon see one of the first