Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-29
OF TARIFF
| ON FOREIGN TRADE
IS HELD DOUBTFUL
Question of Creditor Nation
Maintaining Protective
Policy to Be Tested.
INTERNATIONAL BANK
EXPANSION is POSSIBLE
Financier Believes Institution May
Function as an Aid to
Business.
BY JOHN r. SINCLAIR.

Special Dispatch to The Star.
NEW YORK, June 2s.-Sir Henry
Thornton's observation to the Interns-
tional Rotary Convention, that in
acute trade rivalry" lies the real dam
gers for future wars, is not a new one.
IT has been stated repeatedly in a score
OF different ways by business men,
bankers, labor leaders and radicals.
doubtless, Sir Henry, who is presi-
dent of the Canadian National Rail-
roads, and was born in Indiana, mad
the American tariff in mind when he
made the statement
The tariff fight is oyer-for the pres
ent. The shouting and the turmoil are
past. The Hawley-Smoot bill, so OBJ
Jectlonable to many Is now the law
its effects.
If it works badly. 1t will affect the
pocketbook of American business, and
pressure will be used TO change 1t. The
tarin issue will finally center about the
answer to this question:
Can creditor country, growing more
! powerful each year. increase, or even
maintain, a protective tariff, inaugu-
rated in pioneer debtor days, without
| serious economic loss to its people?
| Answer that question and one has
the tariff solution ION ice!
International Bank.
! Melvin A. Traylor, president Of the
! First National Bank of Chicago, told the
Illinois Bank Association that no one
country would be able to control the
Bank of international Settlements, be-
cause of the provision requiring Sc per
cent of its capital stock to be held in
equal parts by the seven different coun-
tries that originally agreed to the plan.
AS to the new reparation bond issue,
he declared it to be direct obligation
! on the German government secured
| by the unconditional part of the annual
reparation payments and the tax which
is levied on the German railway sys-
! TENS"
The Chicago banker does not believe
! that any new issue of these bonds will
| be offered to the American public
within two years"
| The future? Mr.. Traylor believes
that the Bank for International Settle
ments may eventually extend its activi-
ties to the point where 1t might enable
| the various nations to cooperate and
avoid in the future at least a part of
the worldwide business depression
which exists at the present time.
Dietrich's Appointment.
With the appointment of Dr. Dietrich
as German minister of finance the ace
card in the almost hopeless task Of
Chancellor Bruening to keep his cabi-
net in office is seen. For the present
German cabinet, in an attempt to dras-
tically cut expenses and to find new
taxes, has found little sympathy and no
| support from the coalition parties.
The appointment Of DR.. Dietrich, who
now holds the portfolio of economics in
the present cabinet will result either in
! the passage of more vigorous legislation
| to restrict German expenditures or in
the retirement of the present govern
ment from office. Yes-it might mean
more than that.
A dictatorship in Germany within the
next so days is not beyond the realm
of possibility.
Purchasing Power.
| Purchasing power shrunk $2,00o,000,-
900 during the first six months of 1880
and the cause was unemployment! Still
| $500. 900 out of work!
| This is the estimate of William Green,
president of the American Federation
of Labor, who predicted real improve
ment this Fall.
Meanwhile, the Summer months will
bring hardShips to hundreds of thou
sands of workers who have already been
out of work from three 10 six months,
and the low level of workers purchasing
power will continue to delay business
| recovery"
No one will question now that unem-
| ployment delays business recovery! The
| question is whether or not the wage
level built up to its present strength
by years of work. will suffer by reason
of the undue competition of workers for
jobs.
(Copyright, 1890, by North American News
paper Alliance)