The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-05-09
UNITED WORLD
TO FACE U. 5.
IN TARIFF WAR
Foreign Nations Wait Only
for Signing to Start
Duty Retaliation.
CANADA ADMITS ANGER
Our Best Customer liked at
Ever Increasing Levy
Trend.
BY WILLIAM PHILIP SIMMS
Scripps-Howard Foreign Editor

WASHINGTON, May "a brick
for brick has become the tariff
policy of foreign nations as they
prepare to retaliate against the
United States for it's provocatively
high duties levied against their
products.
Canada, which last year went into
first place among the consumers of
American products, now openly adj
mits that she merely is waiting until
congress has passed, and President
Hoover signed, the super-tariff bill
now about to be voted on in Wash
ington.
Whereupon, according to Finance
Minister Dunning, Canada will re-
adjust her tariff wall against the
United States and, he confesses, it
will be a brick for a brick PROPOSE
ton.
Aroused by the constant readjust-
ment upward of American tariff
political leaders in Canada who I'M
til recently have been free traders
and advocates of the complete abo-
lition of protective duties the world
over, now are among the chief sup
porters Of the brick-for brick policy.
Outby England
Last year, Canada purchased more
than $800,000000 worth of American
products, for the first time out
buying the United Kingdom Of
Great Britain, her mother country.
Today, the best friends the United
States has in Canada have been
forced to favor the countervailing
duties proposed against goods from
this side of the border.
England now is leaving no stone
unturned to recapture Canadian
trade and the new American tariff
is expected to facilitate her work
Mass production and American
methods heretofore have given us a
slight advantage, but if Canada i'm
poses higher duties, this advantage
will be amply overcome and we
stand to lose a valuable market.
Equally disquieting is the news
that Europe is planning retaliatory
measures similar to those of Canada
Americas foreign trade last year
amounted to something like 100000
100000. Just before the World war
our best years sales to foreigners
never exceeded So, 900 ,000, 900 whereas
in 1929 they totaled approximately
$4,000, 100000.
Goods Type Changed
These figures, economists pointed
out, by no means tell the most i'm
portant part of the story. Before
the war our sales abroad were most
ly raw materials whereas today they
are mostly manufactured goods.
We still sell the raw materials but,
in addition, we are selling vast
quantities of articles made by
American labor.
Foreign trade, now threatened by
our constantly mounting tariff, acts
as a reservoir to take care Of our
surplus products. When domestic
consumption slumps, a little effort
on the part of foreign sales forces
removes the excess from this coun-
try and dispoSeS of it abroad.
But for such an outlet, econom-
lists agree, ever little furry in this
country would menace us with shut
downs, unemployment and business
depressions which, at any time,
might easily develop into panics.
A brick for brick on the part Of
foreign nations, now threatened, be-
cause of the pending tariff measure,
would, it is feared, play havoc with
our economic situation and prove a
genuine setback to our prosperity.