Evening star., 1932-05-12
President Heever's message veteing
the so-called Democratic tariff bill
rnilnurr.

President Heevef's message veteine
the so-called Democratic tariff bill
follows:
ITO the House of Representatives:
"I am returning without my approval
HR6662, entitled An Act to Amend the
! Tariff Act of 1880 and for Other Pur-
poses
MY first objection to the bill is the
misimpression and uncertainty it may
convey as to its purpose. If the purpose
Of the proponents of this act is to Sc
cure lower tariffs on the IS per cent Of
our imports, which are not on the free
list. 1t would seem that the direct and
simple method Of SO doing would be to
recognize that tariffs are duties applied
to particular commodities, and to pro-
pose definite reduction Of the duties on
such particular commodities as are be-
full facts can be developed. Alternative
ly, the Congress Is able to direct the
Tariff Commission under the flexible
provisions of the act of 1880 to act upon
such schedules as are believed to be too
high.
Manufacturing Casts Cut
"As q matter of fact, there never has
been a time In the history OF the United
States when tariff protection was more
essential to the welfare of the American
people than at present. Prices have de-
clined throughout the world but to far
greater extent in other countries than
In the United States. Manufacturers in
foreign countries which have aban-
doned the gold standard are producing
goods and paying for raw materials IN
deprecated currency. They may ship
fboir ooodc into tha TTpitda States wit n
great detriment to the American pro-
ducer and iaborer because of the differ
ence in the value Of the money they pay
for their raw materials and the money
they receive for their finished products.
Under such conditions, 1t is impera-
tive that the American protective policy
be maintained. If the intent or the
effect of the proposed bill Is to remove
the possibility of executive action or to
reduce tariff protection, there never was
time more inappropriate on account of
widespread domestic unemployment and
the possibilities which lie before us.
THE second objection to the bill, is
that it practically destroys the flexible
tariff through the removal of Executive
authority to render conclusions Of the
Tariff Commission effective.
Would Defeat Reform.
"This bill would again reduce the
Tariff Commission to purely advisory
body to the Congress and thus defeat
a reform so earnestly sought ever since
its first advocacy by President Roose-
velt and finally fully realized in the
tariff act of 1880. BY the act of 1880,
the principle of q flexible tariff based
upon determinations by bipartisan
commission, subject to approval of the
Executive, was firmly and effectively es-
tablished. Beyond the ability to change
the duties by so per cent, there lies
within the provisions the development
of the definite principle OF preference
of the home market for American in
dustry, workmen and agriculture, based
upon the difference of cost of produce
tien at home and abroad, plus trans
portation to the principal markets.
This open process, upon the applica-
ten of any responsible party, is an as
surance against either excessive duties
or non-protective tariffs upon dutiable
goods.
"The broad purpose Of the present
form of Executive action upon the 'fiex-
ible' provision Is promptly to remedy
inequities and injustices Ia the tariff as
they may be discovered; to prevent any
tariff system being frozen upon the
Nation despite economic shifts, and by
providing this f1exibility to meet chang
ing economic conditions, greatly to
lessen the necessity for periodic general
revision Of the tariff with its disturb
anee to economic life, and its orgy OF
politics and log-roliing.
Provision Held Useful
"The flexible provision has since the
act of 1890 proved its high usefulness
in these particulars. The commission
has completed or has In progress in
vestigations covering 291 different
articles. OF those which come under
the flexible provisions, the recommends
tiens were Tor no change in about 81
per cent of the cases, increase In l6
per cent and decreases in 80 per cent,
which were placed in effect within Q
few days. This effective flexible tariff
as q protection to sound progress and
fer the future protection Of our farm
ers. should be maintained in our Amer
lean system. The proposal In the bill
under consideration will effectively de-
stroy it and is o step backward.
Under the present law, the Congress
has the benefit of the advisory func-
tions Of the Tariff Commission, upon
which 1t can act at any time. II this
bill Is to have any practical result by
reserving to the Congress incidental or
occasional readjustment of the tariff, 1t
simply opens the way for og-rolling
everytime Congress Is called upon to
consider o report of the Tariff Com
mission recommending any specific
change In rates or schedules.
I'm an effort to avoid this obvious
objection, the act attempts to limit
Congress, In legislating upon the rec
concentrations of the commission, to
the specific items included in the re-
port. But no Congress can bind an
other Congress in any such manner
relating as it does to a question of
legislative procedure.
My third objection to the bill lies In
the conditions stipulated for action In
an international conference which it is
proposed should be called to deal with
trade questions. I wish to say at once
that ! am In accord with the proposal
for an international action or conference
to eliminate discriminatory and unfair
Trade practice preventing economic wars
and promoting fair, equal and friendly
trade and commercial relations among
nations
The American Government has par
ticipated in several international eco
nomic conferences for these identic
purposes since the Great War. They
have resulted in very little accomplish
ment. But the objectives proposed in
this bill for such conference are not