Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-18

1921 they formed 81 per cent; In 1925,
Sc per cent; in 1927, "a per cent.
Changes in Imports Cited.
The change in the character and
source Of imports has had an impor-
The best export markets, except In the
iehboring countries of Canada, MeXi-
co and Cuba, lie not In the regions
from which we obtain free raw mate
rails, but in the European countries
from which we mainly receive dutiable
imports. The inability of those coun-
tries to sell enough directly to the
United States to pay for imports from
the United States has forced them to
sell to tropical countries, which In turn
sell to the United States. In other
words, 1t has given rise to the triangu-
lar trade of which much is frequently
made. Under a more moderate and
reasonable tariff policy there Is little
doubt that to very much larger ex-
tent than now the imports from trop-
ical regions would be paid for by ex-
ports to those regions, while to much
greater extent than now exports to Eu-
ropean countries would be paid by
direct imports from those countries.
The fact is that the growth Of i'm
ports since 1921 has occurred despite
and not because of the high duties i'm
posed by the act of 1922. Notwith-
standing their greater total value,
dutiable imports now supply a smaller
proportion of domestic consumption
than they did in normal pre-war years,
even in the years under the Payne
Aldrich tariff law of unhappy memory.
Increase in Purchasing Power.
The increase in value Of imports
which has occurred has been due to the
increased purchasing power of the
American people. which in turn has
been due to the many factors which 60
to make American labor the most pro-
ductive in the world. This productive
ness has given the United States a
world dominance In many commodities
automobile industry is a fine example.
It Is estimated that American made
automobiles form 80 per cent of the
automobiles of the world and 43 per
cent of those in use outside Of the
United States and Canada. We domi-
nate the world trade in automobiles.
And this is true even though the tariff
on automobiles is almost imperative.
1t is merely paper tariff.
1t is too recent for us to forget that
because Of certain inordinately high in
creases on certain goods and products
from France that France only a few
the importation of American automo-
biles into that country. It presented
serious situation and only through
the exercise of real diplomacy and
craftsmanship was trade war with
France averted.
In the consideration Of the question
of increased imports since 1921 1t cam
not be forgotten that during the post
war years, owing to the economic domi-
nance gained In the World War period.
the purchasing power Of the United
that of any other country at any other
period Of history. Its strong position
has been In marked contrast to the
weak economic position of many Of the
European countries. Those countries
not only have found it difflcult to buy
here the goods necessary for the we'll
being Of their people and for the con-
duct Of their industries, but they have
found it even more difficult to fulfill
their financial obligations to the United
States and its citizens. For this situ-
alton our high tariff policy Is largely
responsible.
Two Factors Held Main Reasons.
If. despite this policy. European ma
tions have continued to take our ex-
ports in slightly larger volume, 1t Is
due largely to two factors. One is
that our general economic condition
not only has enabled us to import
European goods Notwithstanding the
high prices entailed by exorbitant
tariff duties, but has also enabled
American tourists to spend millions OF
dollars annually in Europe.
The other factor is that we have
continued to increase our foreign loans
and investments. We have placed
abroad some of the capital which under
a tariff policy more favorable to foreign
trade might have found use in our own
export industries, for every dollars
worth Of imports kept out by excessive
duties makes it that much harder to
expand those industries. Because OF
such duties we have not gained the
foreign markets which we might other
wise have gained.
In consequence our export trade since
1921 does not appear to have kept pace
with increasing domestic production.
Capital which under other conditions
might have remained here has been
spent in building branch factories in
foreign countries to supply markets for
merly supplied by the parent factories
in this country. The imposition OF
high tariff duties, with the curtailment
of foreign trade which inevitably fol-
lows, forcing American capital to go
into foreign countries to manufacture
and sell its products. is of vital concern
to the American people and presents
a problem which in time will invoke
much discussion. The opportunity Of
enlarged foreign markets has been ours.
1t has captured the imagination of our
boldest business spirits, and they have
been prevented from taking full ad-
vantage of 1t by the hobbling tariff
policy Of our Government.
Rate Raises Called Selfish.
One of the circumstances that have
aroused the world against the pending
tariff proposal is that the proposed in
creases in duties are not the result OF
an impartial determination Of facts or
Of an intelligent consideration of the
effects of the proposed rates on the
buying capacity of the best customers
and the chief debtors of the United
States. Instead the rates have been
granted at the behest in most instances
of selfish interests without regard to
the larger national and international
interests involved. II the changes IN
rates had been determined upon the
basis of equalizing cost of production
here and abroad, with due regard to
the interests of our export trade and OF
ourselves as creditor nation, I doubt
that any foreign government would
have filed protest.
Sugar is probably the most important
example of the way facts such as these
have been ignored. We produce in the
United States about one-fifth Of our
consumption. For about half Of our
supply we are dependent upon Cuba.
The Tariff Commission, after . full
investigation of the cost of producing
sugar ia the continental United States,
in She insular possessions and in Cuba,