Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-18
Tariff Increase Would Be Death
TO Export Gains, Harrison Says

Let US take Italy, for instance. She
has made vigorous protest to certain
increases carried In the tariff proposal
that will AFFECT certain italian products
and which they have formerly sold to
us. In 1927 we exported to italy $l32.-
100000 worth of goods. During that
same year we took from italy products
valued ct Si09 100000. There was q
balance of trade in our favor Of $685.
100000. AS an example OF the Italian
products affected by the proposed in
creases in duty, olive OIL which is one
of the chief articles Of italian export.
may be cited. In order to maintain q
production in this country OF less than
zoe, 900 gallons annually, as compared
with imports of 83,000.000 gallons,
American consumers pay under the
present tariff about $5,000,000 annually,
in duty, or more than SIS for every
gallon produced in the United States.
There are other similar instances, such
rs italian canned tomatoes, Italian
cheeses and filberts. pistaehio nuts and
cherries and other products that might
be cited.
1t is peculiarly strange that the dis
tinguished senior Senator from Utah,
Mr.. Smoot, who now presides over the
finance committee and who will be the
defender of this tariff monstrosity when
1t reaches the floor of the Senate. wrote
and made q report TO the Senate only
O little while ago, championing the
adoption Of the funding agreement with
Italy and In speaking Of Italy's economic
condition and necessity Of an export
trade said:
SmOOt Is Quoted.
"Italy has never had favorable trade
hal
position is in her lack Of raw materials
and the necessity of importing a large
amount of food. The relations between
exports and imports is today substan-
TALLY as it was during the pre-war
period. Imports are still greatly in ex-
cess of exports. Most of the exports
consist of commodities essential to the
operation of Italys industries. Anything
which makes 1t more difiicult for Italy
to provide the means to buy raw ma
terials from the outside world impairs
her capacity not only to make external
payments on her obligations held abroad
but also endangers her internal eco
nomic situation.
"Italy's balance of international pay
ments must be such that she can con-
vert the necessary amounts Ito be paid
on debts owed abroad into foreign
currencies without endangering the
stability Of her own internal situation"
The same arguments that were then
made by Chairman Smoot in behalf Of
Italy are now made in this tariff con-
troversy by Italy In behalf Of herself.
In 1927 France sent us goods valued
at only $l6S, 600. 900 and took from us
goods valued at 1929 100000. While this
balance of trade was in our favor, the
imports from France in the main were
Specialties, such as are not produced adj
vantageously in the United States, or
novelties which find market here be-
OF extreme luxury goods produced In
small quantities and sold to customers
demanding exclusiveness.
Nom Competitive Products.
Few such goods are directly COMPETE
tive with domestic products. Yet on
many of them the pending bill carries
increases in duty. 1t Is not strange that
in the discussions which recently took
place In the French Chamber Of Dep
uties over the ratification of the Mellon
DQoSed action OF the American Congress
In increasing many Of the rates on
French importations was used effective
ly in opposition to the ratification of
that agreement. .....
In 1927 we imported from Spain goods
valued at only $34 900 900, while during
the same year We exported goods valued
at $73,000,000. This is just one Of the
many countries wherein a balance of.
trade is In our favor. The proposed in
creases in tariff duties strike q blow the
repercussions of which are bound to be
felt injuriously by the United States in
its capacity as creditor and exporter.
One of our very best customers is
Canada. In 1927 we exported to that
country 1887 100000 worth of our goods
and products. Yet in the present tariff
proposal we have increased many Of the
rates that directly affect the interests Of
Canada. Undoubtedly if the present
tariff proposal is enacted into law It will
add to Canada's resentment of our trade
policy and further limit the ability OF
Canadians to buy In the United States.
Our Government is now at the fork
of the roads. The results of the war
placed us in a different position as q
creditor nation than we have heretofore
occupied. Shall we today use this extra
ordinary position to promote amity and
world trade or shall we pursue the
short-sighted policy of so far as posi-
BILE closing our markets to foreign
products and thereby extending to them
an invitation to close their markets TO
us? II we pursue the latter course we
shall not only receive but earn the re-
sentiment of the world and pay the PEN
atty in a loss Of export trade just when
every opportunity for its expansion is
open to us.