Evening star., 1932-07-31
OTTAWA PROVIDES
us. TARIFF POINTS
Bargaining and Principle Of
Reciprocity May Become
Issue in Next Congress.
BY DAVID LAWRENCE.

Bargaining tariffs and the principle
Of reciprocity made famous by Presi-
dent Mckinley may become basic is
sue in the next Congress, irrespective
Of the outcome of the election.
The events at Ottawa. where the
British Imperial Conference is en-
deavoring by reciprocity within the En-
pire to arrange a new tariff structure,
are having a profound effect here. Out
Wardly officials prefer to assume Amer
lea is not going To be hit hard by the
changes. for the lest thing any of the
Republicans hereabouts want is a dis
CuSSion Cf tariff changes in the middle
Of a Pre- adential campaign. though to
be sure s large section of the Repubh-
can party in the East is much more
jealous now about reduction OF tariffs
than the Democrats ever have been.
Up to now the tariff controversy has
been largeiy academic. The Democratic
platform declares for removal OF tariff
barriers and for new international un-
derstandings. The Republicans are
silent about it. Attacks on the Hawley-
Smoot tariff law will be heard in the
campaign. Doubtless what is happen
ing at ottawa will be taken by the
Democratic speakers to be an act OF
reprisal against the Hawley-Smoot
duties.
Concern Over British Policy.
Much concern is exhibited here now
over the British tariff policy. The pos
Sible loss of an anthracite market for
American producers Is a blow which
will strike new apprehensions in States
normally Republican, like Pennsylvania.
The last session Of Congress saw party
lines break down in the consideration
of tariffs, and many of the Democrats
who voted for excise duties that amount
to prohibitive tariffs justified their po-
Sition on the ground that if there is to
be tariff protection as national policy,
their respective States must receive the
benefit thereof.
The true significance of the Ottawa
Conference, however, may not be in the
direction it now is taking. 1t may re-
suit in such a disarmament of the
tariff structure of the world as to bring
about an international conference or
separate conferences between nations
affected. Reciprocal tariffs have been
advocated ever since the beginning of
the depression as one way to enable Eu-
rope to pay debts to America and as
means Of aiding European countries to
establish firmly the gold standard
If there are international conferences
on the tariff, it will mean mutual con-
ceSSionS. 1t does not mean an aban-
donment of the protective principle for
free trade any more than it involves
maintenance of existing duties on
products that need more protection. 1t
is a question Of the degree Of protec-
ton that should be afforded and the
advantages that come to nation which
is willing to bargain with other nations
with respect to products that are i'm
ported in larger quantities than they
are produced within its own borders, or
produced at cost so high that it does
not permit Of competition with foreign
articles.
Competition Idea Fading.
The idea of maintaining competition
has, however, been gradually fading
out Of the picture in recent years. In
deed some of the tariffs levied in the
last Congress were nothing more than
embargoes. As long as there Is no
reprisal or retaliation. the govern
mentS involved take no forward steps.
The Ottawa conference Is the first i'm
portant reprisal, though by no means
heralded as such The French quota
system is retaliation against Amer
ican tariff duties
Before long, the tariff war will have
to be ended by a peace conference.
Loath as many nations. including the
United States, are to permit a question
always regarded as domestic TO be con-
sidered at an international conference,
the drift is toward such discussion.
after all.
The effort to separate the war debts
from reparations is now pronounced
by Senator Borah as impractical. So
also may the tariff problem become a
reality rather than theory in inter-
national diplomacy and bring about
new commercial agreements between
different nations. This may or may
not take the form of treaties between
two powers as distinguished from a
general international agreement, but
the agitation for one or the other kind
of truce in tariff warfare will be no.
ticeably increased when the Imperial
Conference at Ottawa finishes its Ia
bors and the potential losses to Ameri-
can export trade are fully appraised.