Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-14
BY FRANK H. SIMoNDs.


Times for tariff war with u.s. the UNI
qualified statements made in the French
Chamber, the rumblingS in Canada,
all indicate the world is once more be-
coming irritated at the consequences
for it of American prosperity and po-
litical policy.
Just at the moment we have pretty
thoroughly upset the whole European
financial situation by the double proc
ess of largely expanding our favorable
trade balance and reducing our foreign
investments in equally large amounts.
Add to this a marked expansion of
European investments in American Sc
curities and it becomes clear that our
exchanges with Europe have come to
take on something OF the appearance
of a one-way street.
All of this, too is preparatory to a
marked increase in our tariff rates,
which means that new and abnormal
influences are presently to be added
to what has so far been a natural
process. Ten years after the making
of peace, then, we are once more be-
ginning to get upon the nerves of the
world. Our revenues yield us mag
niflcent SURPRISES, our national debt
diminishes by leaps and bounds. every
thing seems to combine to make the
United States increasingly fortunate,
along still carrying It's wartime burdens.
What Can Europe Do?
Now comes the crucial question:
What can Europe, what can the British
Empire, do about 1t? Certain things
are possible, at least in theory. Thus
the Chamberlain principle of preferen-
tial tariff within the empire can be
revived Canada and Britain, for ex-
ample, can agree upon common tarif
which on the one hand would result
in a practical embargo of American
imports and on the other in the ex-
change of Canadian raw materials and
foodstuffs for British manufactures.
Our farmers would thus lose the British
market, our manufacturers the Cana
dian.
But the immediate difficulty would
be discoverable In the fact that any
such step would require Britain def
nitely to surrender the long established
doctrine of free trade, to which Labor
still subscribes with absolute loyalty,
with Liberalism following suit. Britain
would, in effect, have to agree to pay
rather more for its foodstuffs, grain
from Canada and meat from Australia;
Csnada and Australia would have to
accept only British automobiles and
similar things in which American tech
nical superiority is manifest.
That there will be any real prog
fess in this direction while the pres
ent Labor Government Is in power is
highly improbable. Labor Is more
likely, with Liberal support, to UNDER
take, on the one hand, to arrange the
American naval dispute and. on the
other to renew the associations with
the League Of Nations which under
the Tory regime have been suffered
to become very loose. Yet it is mani
fest that growing British irritation at
American financial and economic
policies could, in the end. initiate
against any satisfactory adjustment OF
the naval issue.
Nor Is there present reason to ex-
pect any creation of a common front
on the Continent against us. The
thing is far from impossible, but 1t
requires q great deal of time to bring
about and both the dirninution of po-
litical rivalries within Europe and the
general appreciation Of the fact that
no country can, by pursuing a frank
ly pro-American policy, hope for Ameri-
can favors, make 1t improbable.
Nevertheless, one must perceive that
certain repriSalS are almost inevitable.
In Britain, for example, the pound
sterling has been brought down to the
lowest level since it was finally re-
stored to par. Loss of gold, which
has gravely disturbed Lombard street.
United States is Parochial.
OF course. at bottom, the whole
situation xesults from the fact that
while. financially and economically,
the United States has become inter-
national, the greatest single power In
the world, politically We have remained
parochial in the narrowest sense Of
the word. Congress. which controls our
policies, is both ignorant Of and I'M
concerned with the world repercussions
Of its own decision. The fact that
giving the farmers certain special
favors in the matter of tariff duties
might upset the equilibrium Of world
trade and finance seems in Washing
ton of utmost uninportance.
Moreover, so far we have been able
to get away" with combination Of al
most unparalleled world power and very
nearly absolute unconcern for the et-
feet upon the world of our own ac-
tons. What Is becoming daily more
interesting question Is whether we can
keep the thing up indefinitely. OBJ
Viously Europe cannot make war upon
us and does not dream Of such thing.
Quite as patiently, it has no financial
remedy, because we have the money.
The single possible means Of attack
pean would say-must lie through
the combined effort to keep out our
exports. And this is a fact which all
Europe has perceived with growing
clarity and discussed with increasing
earnestness for several years.
Nevertheless, nothing could be done
until the debris of the war had been
GraAr nj al va
sources the reorganization Of Europs
was practically impossible. While 1t
was going forward Europe had to sub
NIT to American policies.
But with the formulation OF the
Dawes plan, with the drawing Of the
Young plan, with the rehabilitation
of the economic lives Of the various
European powers, the period in which
America was necessary and therefore
to be endured upon its own terms
draws to a close. The moment Is at
hand when Europe can afford to tight
back.
The great question. the double inter-
roration. remains. On the one hand,
we may presently acquire o political
equipment TO go with our economic
and financial power. Business ana
finance may acquire that influence over
our politicians which they have long
Exercised ia European countries. On
the other hand, Europe and the
British Empire, together or separately,
NAV be able to conduct an offensive
SSirniciently disastrous to American In
dustry and business to compel tqe
politicians to perceive the limits OF
purely national control.
when Britain occupied the position
wr row hold, her policy was based upon
the idea of bargain. Ours has been and
remains founded upon the conception OF