Evening star., 1932-02-28
American Papermakers
Ask for Tariff Protection
BY HARDEN COLFAX.

The American paper industry Is de-
manding that something be oone 10
protect its interests in the present world
situation brought about by currency
depreciation in foreign countries. Since
the abandonment of the gold standard
by several of the Old World countries
from which its imports are drawn the
industry, already in bad shape, has been
at distinct disadvantage In domestic
as well as foreign markets.
At the annual joint convention this
week of the American Paper and Pulp
Association, the National Paper Trade
Association, the Technical Association
of the Pulp and Paper Industry and
allied groups in New York this billion
dollar industry, while not of a united
mind as to the exact method to be
adopted to effect the desired protection,
agreed upon the necessity for certain
measures of assistance. Leaders of all
branches of the industry noted a graft
fying tendency to rev1talize some of the
Organized groupings with kindred inter-
ests which after the first year of de-
preston, had been allowed to languish.
X
The measures favored are, first, what
NAV be known as a countervailing duty
on imported pulp and news print tenn
r1orarfIy to offset the advantage in price
now held by certain countries the cur
rencies of which have deprecated. If
such a countervailing duty cannot be
obtained the industry will apply to Con-
gress for some special provision to meet
the situation. Informal hearings are
now being held before congressional
committees which are considering tariff
revisions projected by the Democratic
= Nf fa+j
Up to the present, efforts to secure
duty on wood pulp or news print have
been unsuccessful, largely because Of
the constantly increasing demand due
to the ever-mounting consumption of
naper in the United States. Figures
now show, however, that during the
past two years this consumption has
diminished by 20 per cent or more.
Meanwhile the OverprOduct1on of pulp
has continued. Some of the industrys
leaders claim that in addition there is
foreign dumping which should be stop
ned by the tariff. Others oppose the
imposition of a duty on the ground
that it would shut off their annual i'm
ported supply of some million and
half tons of chemical wood pulp and
force many converter plants in this
country to close down.
America imports wood pulp and news
print from Canada, Newfoundland,
Sweden Norway, Finland and Ger
many-about $3.50, 1000 900 worth in 1929
and approximately $212,000,000 last
year. According to Department of Com
merce figures, cur exports of paper and
paper-base stocks in 1880 amounted to
some S32, 900, 600, a decrease of 81 per
cent as compared with 1929. Several
of our regular customers, notably the
scandinavian countries, can now buy
from other pulp producers, thanks to
their lowered monetary unit, for less
than formerly. The abandonment of
the gold standard has apparently opened
IN new markets for the products of
these countries and the leaders of the
American industry are not banking ON
anv immediate return to this standard
by their competitors.
THE consumption of paper In the
United States declined from 100000
tons in 1929 to just over 100000 tons
in 1881, while at the same time the
paper producing capacity rose steadily
until now it is some 14,000,000 tons
Generally speaking, it is agreed among
tha naner manufacturers that the indus
trv has been overbuilt and overcapital-
ized with too many competitive lines
heino nIlshed, most of them approx
mately equal in quality.
tcopyrtght. 1sS2a