Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-10
LATIN AMERICANS CHARGE
TRADE SLUMP TO TARIFFS
Chamber of Commerce Speakers Stressed
Need for International
Cooperation.


for nearly all the Latin republics. sew
eral counSelors, secretaries and attaches
have been called home. and most Of
the chiefs Of missions have Telt de-
preston reflected In their salaries.
The constant increase Of taxes and
the restricted credit accorded by the
banks and commerce are the other two
worries OF Latin American business
men In inevitable consequence Of the
economic depression. they contribute
slow business and economic uncertainty
which the Latin American delegates
described with dramatic eloquence at
the sessions Of the international Cham
Der Of Commerce last week.
High Tariffs, Low Trade.
The leading economic experts Of the
world are at odds in determining the
causes behind this tremendous dep
sion in the five continents. Wha.eveI
they agree upon, high protective tariffs
are for the Latin Americans one of
the chief sources Of trouble and eco
nomtc difficulties. The protectionistic
walls which the United States and other
American and European nations have
erected along their border lines are
blamed by Latin Americans for the de-
cline of commercial interchange and
all the material evils that go with Il.
So they stated during the meetings Of
the International Chamber of Com
merce. and in doing SO they we're only
repeating what the Latin American
press as whole had warned when the
protective Hawley-Smoct tariff was
passed by the Congress of the United
States
During the discussions on that bill
the danger was mentioned by Latin
Americans and opponents of the high
tariff policy In this country that the
exhorbitant duties proposed not cnly
would be serious blow to the export
trade OF foreign nations in commerce
with the United States, but that this
country also would suffer the conse-
quenceS. Two main arguments were
adduced in this respect, one that the
depression caused by the tariff in for
eign countries naturally would be re-
nected in a decrease Of their buying
power. thus diminishing their orders
Tor American manufactured products
and their general trade with Uncle
Sam; and second, that there were GER
tain raw materials which. either not
existing at all in the territory of the
united States or else existing in very
small quantities, could not be heavily
taxed without iniuring the very inter-
ests OF the consumers in this country.
soon after the PRONUNCIATION Of the.
Hawley-Smoot tariff, higher import
duties were approved by Mexico. Argen-
American. republics. These not only
affected goods coming from the United
States but also those from the neigh
boring Latin countries, and the Chilean
press only recently discussed the posi-
bility of tariff war" with ARGENTINE
The whole question Of the tariff prob
lem was put forth clearly bv Ambasss-
dor Malbran Of Argentina when he ar
rived in New York to take up his duties
as the representative of his government
In washington. In a statement for the
press he said: cit Is not logical to ex-
pect us to pay for all Of our foreign re-
quirements In gold. We must try to pay
at least in part with our exportable
products These considerations clearly
develop the point that those interested
in selling to us the products of their
factories. also should be most interested
in our success in dispoStng Of our prod
ucts, thus increasing in the most efica-
cious manner our purchasing power"
Economic Unions.
Whatever economist or group Of ex-
pertS takes up the study of the world
economic depression now In progress,
and attempts to devise methods to solve
it, should have in mind the tariff ele-
ment: Il, for nothing else, the solution
of the tariff problem Is necessary to
assure that international good win and
cooperation on which the leading bust
ness men of the world are relying more
and more to check the continuance Of
hard times.
The tendency toward tariff unions Is
growing in Europe. The Pan European
plan of the wise Mr.. BRAND and the
announcement Of the German-Austr!an
economic union which caused so much
hullabaloo are only two instances Of its
influence on international trade. Euro
pean statesmen are favorlng more and
more the abolition or the gradual re-
duction of import tariffs among them.
Particularly, in these days of depression,
they consider it the best policy to COM
pensate the losses that economic agents
of an almost indecipherable character
have wrought.
In Latin America, too, the idea Of in
ternational agreements between the
countries on the Western Hemisphere
for the abolition of import duties has
been expressed and favorably received.
A prominent Argentine economist, Senior
Bunge, has suggested in detailed form
the tariff union of Argentina, Uruguay,
Chile and Bolivia-countries which, In
his opinion, could supplement and COM
plement each other so perfectly that
such a union would solve all their eco
nomic worries of today.
The Cuban Ambassador to the United
States, Senior Ferrara, a noted publ1c1st
and diplomat of international reputa-
ton, also has mentioned the advantages
of a tariff union between his country
and the United States. With figures
and statistics. he has demonstrated how
an economic alliance between Cuba and
the United States would be Of benefit
to both.
The day VII come when not only
Ambassador Ferrara and Senior Bungs,
but the statesmen of all the world will
be advocating economic unions, lest
they too join the lists Of unemployed.
Most likely the present world wide eco
nonic depression will hasten the coming
Of that day.
Copyright. 1870