New Britain herald., 1926-10-19
FREE TRADE ONLY
 METHOD BY WHICH
 EUROPE CAN LIVE
European and American Indus trial and Banking Experts
 Draft Manifesto
TARIFF BARRIERS ARE
 RETARDING PROSPERITY

Europe Cannot Recover Until Fol-
 tician. Learn That 'Trade Is Not
 War But Process of Exchange
 J. P. Morgan Heads Delegation
 From U. s. and Gives Out State
 ment.
 New York, Oct. 1o R-A remark able plea for removal of the tariff barriers and other restrictions upon European trade wa. issued here to- day over the signatures of scores of the leading f1nanciers of Europe and a. half dozen Americans, headed by J. P. Morgan.
 Text of Statement
 The text follows:
 "We desire, as business men, to draw attention to certain grave and disquieting conditions which, in our Judgment, are retarding the return to prosperity.
 Tt Is difficult to view without dis may the extent to which tariff bar riers, special licenses and prohibl- lions since the war have been all lowed to interfere with international trade and to prevent it from flowing in it's natural channels. At no per- iod In recent history has freedom from such restrictions been more needed to enable traders to adapt themselves to new and difficult con- ditions. And at no period have i'm pediments to trading been more perilously multiplied without a true appreciation of the economic conse- quences involved.
 Old Markets Disappeared
 '"The breakup Of great political units in Europe dealt a heavy blow to international trade. Across large areas. in which the inhabitants had been allowed to exchange their products freely. a number Of new frontiers were erected and jealously guarded by customs barriers. Old markets disappeared. Racial inter ests were inseparably connected. The situation is not unlike that which would be created if a confederation of states were to dissolve the ues which bind them, and to proceed to penalize and hamper, instead of to encourage each others trade. Few will doubt that under such condl- tions the prosperity of such coun- try would rapidly decline.
 Prohibition Imposed
 ITO mark and defend these new frontiers in Europe, licenses, tarlfts and prohibitions were imposed. With results which experience shows al- ready to have been unfortunate for all concerned. One state lost It's supplies of cheap food, another Its supplies of cheap manufactures. h. dustries suffered for want of coal, factories for want of raw materials.
 "Behind the customs barriers new local industries were started, with no real economic foundation, which could only be kept alive in the face of competition by raising the bar riers higher still. Railway rates. dic- tated by political considerations, have made transit and freights difft- cult and costly. Prices have risen. artificial dearness has been created. Production as a whole has been diminished Credit has contracted and currencies have depreciated.
 Own Welfarc Imperiled
 "Too many states, in pursuit of false ideals of national interest, have imperiled their own welfare and lost sight of the common interests of the world, by passing their commercial relations on the economic folly which treats all trading as form of war.
 There can be no recovery in Europe until politicians In all terri tories, old and new. realize that trade is not war but process of exchange, that in time of peace our neighbors are our customers, and that their prosperity Is a condition of our own well-being, If we check their dealings, their power to pay their debt diminishes, and their power to purchase our goods is re- duced. Restricted imports involve IeSLTlCl6u cApOl lSr anu Io iloIAOiA NA'' afford to lose it's export trade. De- pendent as we all are upon imports and exports, and upon the processes of international exchange, we cannot view without grave concern policy which means the impoverishment Of Europe.
 Happily there are signs that -i.;ox. ;,, an countries is ava king at last to the dangers ahead. The League of Nations and the Interna- ttonal chamber of commerce have been working to reduce to a mini- mum al formalities, prohibitions and restrictions, to remove inequalities of treatment in other matters than tariffs, to facilitate the transport of passengers and goods In some countries powerful voices are plead ing for the suspension of tariffs al- together. Others have suggested the conclusion for long period of com mercial agreements embodying in every case the most-favored nation clause.
 More Favorable Treaties
 Some states have recognized in recent treaties the necessity of free ing trade from the restrictions which depress it. And experience is slowly teaching others that the breaking-down of the economic bar riers between them may prove the surest remedy for the stagnation which exists. On the valuable politi- cal results which might flow from such a policy, from the substitu- ton of goodwill for ill-will, of CO.,
 (Continued on Page 10.