Evening star., 1931-06-16


essary rectincation. And that mactin-
cry is flnctioning.
An analysis indicates that the large
majority Of these foreign complaints
are directed against added protection
we have given to agriculture. ] believe
that some Of these countries do not
realize the profound hardship which
purpose - have imposed on the Ameri-
can farmer. Improved machinery, the
development of refrigeration and
cheapening Of sea transportation have
created for them great resources from
their virgin lands and cheaper labor.
As q result they have taken profitable
export markets from the American
farmer.
Complaints Discussed.
There have been complaints from
older nations who import q portion Of
their food products and export another
portion. Yet these nations look upon
their own agriculture as O way Of life
and as vital to their national security,
and have long since adopted protective
tariffs against the special farm prod
ucts Of the United States. We do not
reproach them, for we, too, look upon
q healthy agriculture as indispensable
to the Nation. The growth OF our In
dustrial population will ultimately alb
sorb the production Of our farmers, but
our agriculture was attuned TO the ex-
port business and Is Of necessity pass
ing q prolonged crisis in its shift to q
domestic basis. Our tariH had proved
so low that our farmers were being
crowded even from the domestic market
In many products which by use Of di-
versification they can substitute TO take
up the slack in export business. From
that condition we have given him pro-
lection, and we stand upon 1t.
In this connection I noted with In
terest that the International Chamber
of Commerce in It's recent meeting in
Washington in effect recommended to
the world the adoption of this method
of the American tariff, although 1t was
not referred to by name. Our visitors
found the American tariff act unique
in the field of tariff legislation. as 1t
defines the principle Of our tariff by
law. That Is the difference in cost
production at home and abroad. They
the creation of a tribunal open to
every interested party empowered and
ready to deal with any variations from
this principle. They found q tariff
without determinations among nations.
They recommended universal adoption
Of similar principles. Indeed, such q
course would greatly modify tariffs in
general. It would promote the COM
merce of the world by removing dis
ordinations, preferences and uncer-
tainties.
But it is not my purpose upon this
occasion to discuss the relations of our
many economic problems TO the prob
lens of other nations. I am not un-
mindful Of our responsibilities or our
vital interest in their welfare. The
very flrst service to them must be to
place our own house in order; to re-
store our own domestic prosperity. 1t
Is from increases in our reservoir of
economic strength that has and must
come our contribution to the develop
ment and recovery Of the world. From
our prosperity comes our demand for
their goods and raw materials. A pros
porous United States Is the beginning
Of q prosperous world.
Future Considered.
with industry as well rs agriculture
We are concerned not merely In the
immediate problems of the depression
From the experience Of this depression
will come not only o greatly sobered
and more efficient economic system
than we possessed two years ago, but
a greater knowledge of its weaknesses
as well as q greater intelligence In
correcting them. When the time comes
that we can look at this depression
effectively it will be our duty search
ingly to examine every phase Of It.
We can already observe some direc-
tions to which endeavor must be
pointed For instance, it is obvious
that the Federal Reserve system was
inadequate to prevent q large diversion
Of capital and bank deposits from COM
mercial and industrial business into
wasteful speculation and stock promo
ton. It Is obvious our banking system
must be organized to give greater pro-
lection to depositors against failures
It Is equally obvious that we must de-
termine whether the facilities of our
security and commodity exchanges are
not being used to create illegitimate
speculation and intensity depressions
1t is obvious that our taxes upon capt.
tai gains viciously promote the boomS
and just as viciously intensity depres-
sions.
In order TO avoid taxes, real estate
and stocks are withheld from the mar
ket in times of rising prices, and for
the same reason large quantities are
dumped on the market In times OF de-
preston. The experiences Of this
depression, indeed. demand that the
Nation carefully and deliberately recon-
slider the whole national and local
problem of the incidence of taxation
The undue proportion Of taxes which
falls upon farmers, home owners and
all real-property holders, as compared
to other forms Of wealth and income
demands real relief. There are far
wider questions of our social and
economic life which this experience will
illuminate. We shall know much more
Of the method Of still further advance
toward stability, security and wider DIFF
fusion Of the benefits Of our economic
system.
Proposes = "PIan."
We have many citizens insisting that
we produce an advance plan" for the
future development Of the United States