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

Furthermore, the Institute of Eco
Monies in 1928, after thorough study,
using the data obtained in the Tariff
Commission investigation and other
rate of from 125 to 1.50 cents q pound
would stabilize the industry and would
afford adequate protection to all EN-
cient domestic producers" More re-
Gently the Rawleigh Tariff Bureau,
embodying the results of o study made
by members OF the faculty of the Uni
versity of Wisconsin, came to the con-
clusion that the duty on sugar should
not be increased.
Notwithstanding the results of these
important investigations. the House Of
Representatives increased the duty on
Cuban sugar to 2.40 cents q pound, Q
rate that will not only be injurious to
Cuba-one Of our very best customers
as well as our political and economic
ward-but which by the most conServa-
tive estimate will increase the burden
of the sugar tariff upon American con-
Sumers to the amount Of $325, O00, 600
annually.
Another cause of legitimate grievance
to foreign countries Is that in this
tariff, to q greater extent than ever
before, Unfortunately high rates are i'm
posed on commodities which are pro-
duced here only to a minor extent
and which can never be produced here
on q Suficient scale and at reasonable
enough prices to supply anything like
the present volume OF domestic con-
sumption. As an illustration, take the
duties on hlberts carried In the House
proposal. In 1928 we produced only
10000 pounds and imported 10, 400, 900
of shelled and unshelled filbertS. Con-
sumers pay 100000 annually under the
present rate Of duty. If the increased
rates go into effect they will pay ST.
600. 1000 annually. This is done In o'Her
to protect a domestic production wfSch
does not exceed $4,000 in value.
"PrOtectiOnist" Idea Is Hit.
Even less defensible Is the bringing
into prominence in this tariff provision
Of an extension Of the protectionist
principle which crept more or less sur
reptjtiously into the Fordney McCumber
tariff. In many quarters 1t Is insist
entity proposed to impose duties on
commodities not produced in the United
States for the purpose Of stimulating
production of entirely different COM
modities. Much has been made In the
public press of the proposal to impose
o duty on bananas in order to compel
people to eat apples or pears or even
10 obtain the same number of Galleries
from wheat or oats or rye.
presented to the committee and are
not without their champions in the Sem
ate, and other examples are almost as
absurd. For instance. strong plea has
been made before the finance commit
tee to take tapioca from the free list and
place upon it such a high rate that its
importation into this country will be
prevented. And why? Not because we
produce any tapioca in the United
Nnt ie vaAk
sary. But because 1t is planned to COM
pei the use of cornstarch in place of
tapioca starch. 1t matters not If GER
tain interests in America say that tapi
ocA is essential to the success of their
processes. Other interests Sel6S'l lily seek
to use the bludgeon of hie A:'in in
order to deprive American intNA3Ics of
this essential commodity.
Wool Achedule Is Illustration.
Another illustration is found in the
wool schedule. An extremely high duty
IL imposed on Oriental rugs of the
cheaper grades, not to stimulate pro-
auction Of those grades In this country
for they are not and will not be pro-
duced here, but to force consumers to
substitute for them domestic Wilton and
Administer rugs.
We can and may ignore the foreign
protests, but the changed economic
position Of the United States today
makes 1t unwiSe as well as ungenerous
to do so. The increased efficiency of
American Industries, demonstrated in
larger output per worker and per ma
chime, has left them with facilities which
cannot be fully utilized, because Ameri-
can demand alone Is not sufiicient to
keep them occupied. AS q result we
nave an excess of production capacity
frequently resulting in widespread I'M
employment as well as idleness of ma
chinery In our factories.
To cure this situation further increase
In duties should not be prescribed. Re-
suits cannot be obtained from such q
remedy. In most lines imports are
small when compared with domestic
production, and If they were shut out
entirely the resulting expansion of do
nestle output would not be great. This
Is especially true in view of the fact that
goods imported are usually to some de-
gree different from those produced here
and come In to supply special and
limited demand not supplied by don1es-
tic producers.
A Surer and more adequate wav of
aiding domestic industries to obtain the
maximum output lies in fostering, not
curtanlng, the expansion Of our EXPORT
trade. since the passage Of the Ford
ney-McCumber tariff law there is hardly
. country in the world which has not
increased its tariff duties. They were
forced to do so and already plans are
under way for retaliatory tariff legisla-
ton TO be imposed against US in the
event that the tariff increases carried
In the House tariff bill are finally
adopted by this Government It takes
no seer to discern the effect upon our
export trade when the countries of the
world become commercially embittered
against US and retaliate against our sur
plus products through increased tariff
duties, and the strange part Of 1t is that
agriculture, for which this extra session
OF congress was called to grant relief,
VIII in the end be most adversely af-
fected by the retaliatory measures,
The United States is no longer a
debtor nation. 1t is a creditor nation,
expecting to receive returns from its
foreign investments. To q greater eye
tent than any other country of the
world we have q direct stake in the
prosperity OF foreign countries. The
war created new conditions and new
obligations. The people Of the coun-
tries indebted to us have been heavily
taxed to reduce the principal and nav
on the interest on the billions on BILL
lions OF dollars loaned by us to the
various countries Of Europe.
Should Assist Others 10 Stability.
The wise policy for US to pursue Is to
assist In the sterilization of their eco
nomic conditions and make 1t possible
for them to meet their obligations in
the terms Of their funding agreements
We have appointed men Of outstanding
ability, economists of the highest order
to serve upon commissions the purpose
Of which was to stabilize European con-
ditions and assist them in their eco
nomic aspirations. The work per-