The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-05-26
Have We OutgrOwn It?

Have We Outgrown It?
After the recent exhibition in
Washington in which a bipartisan
coalition Of senators rolled some new
tariffs into the revenue act, it is diff
ficult to see how the tariff can well
be an issue in the coming presiden-
tial campaign. Nevertheless, 1t prob
ably will be and the people will have
to decide upon it, along with prohi-
bition, agricultural aid, economic re-
lief. budget balancing and a score OF
other issues.
The very fact that everyone seems
to have adopted the idea Of a pro-
tective tariff, however, gives rise to
the question If, after all, 1t is quite
as good thing for us now as it has
been in the past.
The last decade has brought many |
changes to the world and to Ameri-
cas- status in international affairs.
May not the nations policy of COM
mercial relationships with the rest OF
the world we'll be changed with the
times?
When the Smoot- Hawley bill was
passed by congress two years ago, its
advocates asserted that within so
days after it took effect everything
would be on the up grade; that Presi-
dent Hoover's dream Of two cars in
every garage and a chicken in every
pot would at once be realized.
The working of the Smoot- Hawley
act presents spectacle too grisly for
comment. No one need be told how
misera5ly it has failed.
There are some indications that
the effect of the present law has been
inimical to the welfare of the coun-
try, for, whatever the reason, our
foreign trade has dwindled steadily
to less than half of what it was at
the 1929 peak. Labor experts esti-
mate that unemployment for $4,000
persons in the United States is due
to this cause alone.
There are prospects that We will
be still further damaged by contin-
ued curtailment of our foreign bust
ness. England went off the gold
standard as much to stimulate trade
with other nations which could not
pay in gold as to protect its own gold
reserves. 1t now is entering into
commercial treaties with many ma
tons, beginning with those off the
gold standard, whereby tariff bars
will be eliminated or lowered in eX-
change for similar privileges. Eng
land is perfectly willing to go on
free-trade basis with those who will
reciprocate.
South American countries are COM
ing into this arrangement and much
of our trade with the southern hem
isphere is slipping.
This is not wholly due to England's
activities. It is partly due to resent
ment at the action Of the United
States in lacking up the tariff rates
so they cannot sell to us the only
things they have to offer in exchange
for our goods. AS result of this
feeling, many nations have increased
the tariffs on things we sell to them
and have left the bars down on items
which they receive from other ma
lions.
Among the nations in the British
empire, a special arrangement has
been set up which has sent hundreds
of American enterprises to Canada
within the last few years. The Ca
madam plants of American manufac-
turers escape the duties which tar
ifs directe! against plants in the
United States set up-and afford en-
ployment to Canadian workers.
Analysis of our tremendous foreign
trade during the 10 years following
1920, shows that most of our deal
ings were with those nations to which
we made loans. What was happening
was that we were loaning them money
to pay for our goods. When we stop
ped making loans they stopped buy
ing.
The only way to get things going
again is to either loan them more
money or else let them pay for the
things they buy from us in goods or
services which we buy from them.
There u no other answer.
It would seem that reciprocity Is
the way out, but the United States,
peculiarly enough, Is barred from
practicing 1t by = large number Of
commercial treaties which have been
negotiated within the last 10 years.
These contain what are known as the
'nost- favored nation" clause and
preclude our showing favoritism to