Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1926-03-05
Export Crisis Blamed On G. o. p.

The statement was made Friday by Dr.
Julius Klein. chief Of the Bureau Of Foreign
and Domestic Commerce in the Depart
ment Of Commerce. before the House APP
preparations Committee that the country's
export trade was facing grave crisis and
his complaint that foreign governments
were raising tariff walls against our goods
was noticed Saturday by Representative
Cordell Hull. OF Tennessee.
Mr.. Hull asks In effect what would DR..
Klein expect foreign governments to do In
the face Of our own tariff obstruct ons
against the importation Of their commodi-
ties. He says that the United States had
the opportunity after the close Of the war
by pursuing sound domestic and eco
nomic policy to inundate the world with
her commerce but chose different course
Even now he thinks the mistake might be
retrieved. but not so long as the selfish
beneficiaries Of the tariff keep a stranele
hold on the Republican leadership and,
through 1t. on the Federal Government.
The only way TO cure the situation. he
says. Is TO divorce this group from power
"Dr. Julius Klein" said Mr.. Hull. Tin
forcefully pointing out the serious danger
just ahead to our American export and
trade situation fully sustained the Demo-
cratic tariff reduction proposals. It Is
aromatic that no nation can maintain
high tariffs and sound general system OF
exports Of surpluses at the same time. A
system Of high tariffs necessarily involves
high rates on raw materials and semi
manufactures for further use 10 manufac-
turing. with the result that production
costs are artificially increased and prices
Of finished manufactures intended for ex-
port are raised above the world level.
mot only does this damaging condition
arise but other nations. recognizing the
invitation. not to say the challenge Of our
high tariffs and accompanying network Of
trade restrictions against them. proceed
a. they do now. and have heretofore, to
construct tariff walls and trade distractions
against US in every part Of the world.
The United States. for example. raised
her tariff against England from an average
Of 10 per cent to so per cent by the Ford
ney law; we raised II against Germany
still higher: we raised II against France
and other countries. We have seen the
hurtful effects on our meat and lard ex-
ports to Germany during 1925; in the
action Of England in placing tariff Of
So is per cent against our safety-razor
blades and numerous other products and
In the action Of France In a proposal by
the Government yesterday to raise her
tariffs 80 per cent above the present level ;
while other nations generally are actively
pursuing the same policy Of constructing
every sort Of tariff and trade barrier.
THE blindest American business man
should now begin to see and realize this
stone wall toward which our general export
and international trade situation is headed
Only by making loans abroad Of several
billions OF dollars since the war and by
denudine other governments Of $780,.
100000 Of gold they could III afford tC
spare we have been able to keep our ex
port trade at anywhere near the proper
lions which 1t has presented.
8. america by pursuing sound domestic
and international economic policies follow
ing the war never had such an opportunit,
TO spread out over the world with he
commerce as the Mississippi spreads owe
the bottoms Of Louisiana and Arkansas dur
ing spring time. 1t is not too late to retrac'
our steps, retrieve our losses. and heat
this great industrial country on the tru'
economic course. This same policy, how
ever. is impossible of accomplishment 81
long as the chief tariff benefciaries main
tain. as thew now do, a strangle hold OF
the Republican leadership and through
on the Government at Washington.
1T necessarily follows that the outstand
ing problem Of the American people is t
divorce this selfish group from the contrC
Of the Federal Government reduce existin
high tariff to a moderate or competitiv
basis for revenue. and pursue the policy Q
leading the world along the lines Of NOR
liberal and fair trade practices and policiei
THE prices Of our exports have bee
increasing and prices Of imports decreat
Ing. and In the meantime our surpluse
in numerous lines are piline up. 50 tina
without an early change in our fundamen
tai economic policies staenation and idle