Evening star., 1928-05-11
AMERICAN TARIFF
POLICY QUESTIONED
Or. Alberto PireIIi Warns u. S.
That Loans Abroad Will
0verWheIm Trade.

questioning the economic SoundneSS
Of the American tariff policy, Dr. AL
, berto Pirelli, president of the Inter-
national Chamber of Commerce and a
former member OF the Dawes Commits
sion, last night warned that this coun-
I,try cannot go on indefinitely receiving
an increasing amount of interest and
sinking fund payments every year and
maintain its present tariff policy and
export trade.
DR.. Pirclli's warning was issued IN an
address before the annual dinner of the
Chamber of Commerce of the United
States, in the Washington Auditorium.
The other speaker was President Lewis
Z. pierson OF the chamber, and the
guests included John .. Rockefeller. IT..
who has demanded the resignation of
Robert W. Stewart as chairman of tile
board of the Standard Oil Co. of IN
diana as q result of Col. Stewards tes-
timony before the Senate oil committee.
A prolonged ovation greeted the in
PRODUCTION of MIR. Rockefeller by Owen
D. Young. chairman OF the board of
the General Electric Co. who presided
went on record denouncing corruption
of public officials by men of the busi-
ness world.
Mr.. Young introduced Mr. Rookie
feller as "conservator and distributor
of great estate, exponent and de-
fender Of high standards in business
and elsewhere, promoter and support
er of worthy educational and charitable
enterprises everywhere"
Refuses to Comment.
Mr. Rockefeller last night refused to
comment on his action or on Stewards
statement in Chicago.
In his tariff discussion Dr. Pirelli
said that there are those who argue
that new forces are at work which
alter the old course of economic ex-
exchange, maintaining that increasing
credit items III the United States ma
tional balance are counter-balanced by
the increased debit items such as loans
on investments abroad and tourists
expenditures. which alone total about
$500. 900 annually.
1T is argued" he said. that the
national payments have been for a
number of years established In q bal
ance and can be so maintained In the
future by the constantly increasing
outflow Of money In the shape of loans
or investments abroad, in spite OF the
decrease In immigrant remittances and
the fact that considerable part of
the loans made represent refunding op-
erations and purchases by foreign
groups investing capital In this country.
But on the other hand there are
people who contend that the United
States cannot expect to 60 on receiving
yearly an increasing amount of inter-
est sinking fund payments on their
loans and investments abroad, as well
as increasing payments on war debts an
nuities, and at the same time continue
their present tariff policy and the de-
yelopment of their exports by an ever
more energetic trade promotion ac-
tivity.
Loans Out Of Balance 10 Trade.
"The question arises IL the United
States continues lending money abroad
at the present rate Of billion and q
half dollars annually, and, IL In addi-
ton to this amount. they reinvest
abroad the interest accruing on pre-
vious loans and investments, their total
credit from the rest of the world may
reach in comparatively few years so
large an amount that some claim the
liquidation Of the balance may be on
q scale out OF proportion TO the value
of world trade. o.
Il have an open mind and am not
unduly pessimistic. DR.. Pirelli insisted.
nhk Wy G@15tAAS NklE lMC3k1A WA1ai W
bring TO your attention possible con-
tingencies which have already aroused
very great discussion.
Adequate control OF the economic
thundeTbolt OF increasing production
unloosed by industry was cited by MIR.
Piers0n as the overshadowing problem
OF business today.
1.-THE nation which has won Its way
TO industrial leadership by the stimula-
ton of production and which has en-
listed the aid of science and invention
to perfect the efficiency of It's industrial
processes. has new task before IL, he
said.
1T must prove that production is its
servant and not its master. 1t must
demonstrate that 1t has the viii and the
skill TO control the machine 1t has
created"
"The day, think, Is not far distant
when organized business, organized la
Dor and q comprehending government
will unite for intelligent teamwork that
alone can solve our newer problems.
Teamwork that will lift The fear Of un-
employment and suffering from the
minds Of those who toll, permit the
wheels OF industry 10 turn with increas-
ing effectiveness, TO bring more and
more of the comforts and even the lux
urieg of life 10 all who contribute to the
productive power of America and re-
move the threat of an unused surplus
from the nation that has staked It's eco
nonic life on the doctrine OF increas-
Ing production.