Evening star., 1932-05-21
Tariff and Revenue.

4d11u anu INCNCuuCs
Supporters of tariff duties on oil,
coal, lumber and copper have seized
opportunity by the forelock. With the
whole country demanding the enactment
Of revenue bill designed to balance
the Governments budget, coalition OF
members of the Senate-following in
the footsteps of a similar coalition in
the House-has forced these tariff items
into the revenue bill. During the con-
sideration of the Smoot HaWley tariff
bill, now the law, proposals to levy
duties on oil imported into this country
were defeated, as well as proposals to
levy duties now carried in the revenue
bill on coal, copper and lumber. Since
the passage of the Smoot- -Hawley tariff
act the Democrats have won to almost
equality in numbers in the Senate with
the Republicans. Eighteen Democratic
Senators, as a matter Of fact, were re-
corded yesterday as voting to sustain
the tax on imports of oil. twenty-five
Republicans voted for the tax, while
twenty Democrats, sixteen Republicans
and one Farmer-Laborite voted against
it. Obviously party lines on the tariff
have been smashed.
Supporters of the tariff amendments
to the revenue bill give as a reason for
imposing these import taxes the de-
pressed conditions of the oil, coal, lum-
Der and copper industries. They, how
ever, are not the only depressed indus
tries in this country, many of which
could demand further tariff protection
for the same reason. 1t has been obvi-
Gus for weeks that without coalition
of the supporters of the taxes on i'm
ported coal, oil, copper and lumber the
adoption Of any one of them would be
impossible. In the House, supporters of
the oil and coal taxes alone were suf-
ficient to put tariff taxes On those COM
modities into the bill. When the bill
reached the Senate, however, it became
necessary to add to the list of interests
to be protected. Lumber and copper
were brought in, and with them the
votes of several democratic Senators
from States producing those COM
modities.
Opponents OF these protective taxes
shout to the housetops that their ad-
vocates have taken advantage of the
people in their need. The supporters
Of the taxes reply that these industries
they now propose to protect from for
eign competition are as worthy of pro-
lection as the steel and automobile in
dustries. Under the theory of the pro-
tective tariff perhaps they are right,
except in so far as the proponents of
the protective system have opposed
levying tariff duties on imports of raw
materials except for revenue purposes.
1t has been rather clearly demonstrated
that the tariff taxes on oil, coal, copper
and lumber will raise little, if any,
revenue. but will act as embargoes.
Their opponents insist that the result
viii be to increase the prices paid by
the American people for coal and OIL
for copper and lumber.
Politically, inclusion of these tariff
taxes IN the revenue bill may have a
far-reaching effect. Democratic lead
ers have indicated that they intend to
make the Republican protective tariff
major issue in the coming campaign.
The record which the House and Sen
ate Democrats have recently written
In connection with the oil and coal
tariff taxes will make it difficult, how
ever, for the Democrats to bear down
heavily on the Republicans on this
issue. On the other hand the Repub-
licans in a clash with the Democrats
over the tariff issue have usually won
at the polls, and perhaps the willing
ness Of the Democrats to support pro-
tective tariffs may react favorably in
the interest Of the Democratic party
next November This would be a
strange quirk of political fortune, if it
happened,
An unfortunate circumstance at
tached TO the fight over the tariff taxes
in the revenue bill is the delay it is
causing. Prompt passage OF revenue
measure capable Of raising sufficient
income to balance the budget and
maintain the financial credit of the
Government is imperative.
--S-@S~S