The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-05-29
Another Tariff DelusiOn

President Hoover thinks the Grundy bilion-dollar
tariff is bad bill but he believes flexible clause I'm"
towering him to change rates will make it all right
So at any rate we are informed by the news dis
patches.
We are not surprised that Hoover thinks that bill
lon-doar increased rates are bad Considering that
he was the first to the country in his campaign
speeches and congressional messages against Just sucl
general tariff increase this, he could not very well
be of different mind now.
Indeed the protests and threatened retaliation of
thirty-tree foreign nations and the 20 cent cut
in our export trade causing depression and unem-
ployment must confirm the President in his view
Since virtually all economists and most Of the hus-
ness leaders and press of the country agree with the
President that makes it fairly unanimous
So far so good That would congressional
defeat of the menace, or veto if it gets as far as
the President
But the President has so much faith in the flexible
provision that he thinks it will wash away all the sins
of the bill, we are told That reported White House
attitude is largely responsible for keeping the bill alive
this long, despite unprecedented public protest.
The President is fooling himself in this matter. He
has rejected the only logical flexible proWsion-that
of the senate-which Empowered congress rather than
the President to change rates the tariff commits
sions recommendations.
therefore, the PROVISION WHICH 4uldl4y ScNo AAVO
the bill will be either the houses so-called Hoover
plan, or some modification of it. The President
could operate that flexible clause
There is every reason to condemn such plan, and
no reason to commend it.
1t involves the power of taxation, which is and
should be the exclusive business of congress.
There are more than 5000 rates; the President has
neither the time the detailed technical nforma-
ton to review these separate rates and change them
even though that were his 10 which it is not.
Under this plan changes Of rates would be con-
sdered in secret and political pressure applied on the
President in secret. That would sacrifice the con-
gressiopal method of open tariff making, which pub
lefty is the chief and perhaps only guarantee that
the consumers voice will be heard at all.
If the President, as pledged, disapproves of most
q The proposed rates too high and detrimental to
national prosperity isn't it easier quicker and airer
to wipe out all those rates by single vote, than to
plan elimination of only few of the worst rates in
some indefinite future?
If his only reason for signing the bill is to get
flexible provision that will enable him to kill the
rates, isn't that something like the Charles Lamb
method of burning down the house to roast the pig?
But even though this cumbersome and costly
method were tbs only alternative, win not work AT
least it never has And that is the great faacy OF
the White House defense of the flexible provision 1t
is forgotten, apparently. that the country has had
eight years experience with Just such flexible pro-
vision.
That experience demonstrates beyond dispute
that the presidential flexible provision does not pro-
duce the advertised results 1t does not work quickly
1t does not work openly. 1t does not usually lower
rates. It raises rates.
In six years President Coolidge. out Of the more
than 5000 rates made only thirty-two changes. OF
these only five we're decreases-and all on unimportant
commodities.
Hoover, however intends TO cut rates and to cut
many. it IS said Well, Hoover has been in ONCE If
teen months and of the than 5000 rates he has
lowered not single Instead he has raised four
If it Is argued that he has been leaving the tarin