Evening star., 1932-09-30

Ism. bllllOnS OF collars Oh OSDtS are
due to this country from abroad. II
the debtor nations cannot export goods
and services, they must try to pay in gold.
We started such drain on the gold
reserves of the principal commercial
countries as to force practically all of
them off the gold standard. What hap
pened? The value of the money Of
each Of these countries relative to the
value Of the dollar declined alarmingly
1t took more Argentine pesos to buy an
American pillow. 1t took more English
shillings to buy an American bushel OF
wheat or bale of cotton.
They Just couldn't buy our foods with
their money. These goods were thrown
back upon our markets and prices fell
still more.
Summing up. the Grundy tariff has
largely extinguished the export mar
kets for our industrial and our farm
surplus: 1t has prevented the payment
of public and private debts to us and
the interest thereon; increasing taxa
ton to meet the expense OF our Gov
ernment, and finally it has driven our
factories abroad.
The process still continues. Indeed,
it may be only in its inception. The
Grundy tariff still retains its grip on
the throat of international commerce.
There Is no relief in sight, and GER
tainly there can be no relief If the au-
thors Of this disaster continue in power.
Like the Bourbons, they have learned
nothing and they have forgotten MOTH
ing. They still cling to this deadly
fetch. As I say to you in all earnest
ness and sincerity, that unless and until
this process Is reversed throughout the
world, there is no hope for full eco
nomic recovery or for true prosperity
in the United States.
The essential trouble is that the Re-
publican leaders thought they had a
good patent on the doctrine of unscale-
able tariff walls and that no other ma
ton could use the idea. Well, either
the patent has expired or 1t never was
any good, anyway. or else all other ma
tions have infringed and there is no
court of appeal. 1t was stupid. blum
dering idea and 1t brought disaster.
"The Boldest AIibi."
Do not expect our adroit Republicans
to admit this. They do not. On the
contrary they have adopted the bold
est alibi in the history OF politics.
Having brought this trouble on the
world they now seek to avoid all re-
sponsibility for the mismanagement OF
the affairs Of this Nation by blaming
the foreign victims for their own eco
nomic blundering. They say that all
of our troubles come from abroad
that the administration is not in the
least to be held to answer. This excuse
is a classic of impertinence. If ever
condition was more clearly traceable
to Two specific American-made causes,
it is the depression of this country and
the world. Those two causes are inter-
related.
The second one in point Of time, is
the Grundy tariff. The first one is the
fact that by improvident loans to
'ba ckward and crippled countries" the
policy Of which was specifically recon-
mended by the President. We financed
practically our entire export trade and
the payment Of interest and principal
to us by our debtors and even Tin part
the payment of German reparationS.
When We began to diminish that
financing III 1929 the economic struc-
ture of the world began to totter.
When, in 1880. We imposed the Grundy
tariff. the tottering structures tumbled.
What does the Democratic party pro-
pose to CO in the premises?
The platform declares in favor Of a
competitive tariff. which means one
which will put the American producers
on a market equality with their foreign
comprehension that equalizes the
difference in the cost of production
not a prohibitory tariff back Of which
domestic producers may combine TO
practice extortion Of the American
public.
I appreciate that the doctrine thus
announced is not widely different from
that preached by Republican statesmen
and politicians know that the theory
professed by them is that the tariff
should equalize the difference in the
cost of production (which for all prac-
tical purposes does not exceed labor
COST as between this country and
competitive countries and l know that
in practice the theory is utterly dis
regarded. The rates are imposed far
in excess of any such difference, look
ing to the total exclusion of imports
prohibitory rates.
Instances without number to show
the difference between the pious profess
Sions of those who control the dest,nies
of the Republican party, and the actual
performances of that party under their
leadership. could be cited frcm the de-
bates on the Grundy tariff bill.
Says Rates Must Be Cut.
OF course the excessive, outrageously
excessive rates in that bill as it becam2
law must come down. But We should
not lower them beyond the point indi-
Gated Such revision of the tariff will
iniure no legitimate interest. Labor
need have no apprehensionS concerning
such course-for labor knows by long
and bitter experience that the highly
protected Industries pay not one penny
higher wages than the protected
industries, such as the automobile
industry
But how Is reduction to be accom-
plished? BY international negotiation
as the first and most desirable method
in view OF present world conditions
by consenting to reduce to some extent
some Of our duties in order to secure a
lowering of foreign walls that larger
measure of our surplus may be admit
ted abroad. 1t is worth remembering
that President William Mckinley in his
Buffalo speech-the last public address
he ever made-said "the period of eX-
clusion is past. The expansion of our
trade and commerce Is the present
problem. Reciprocal treaties are in
IldiIIlOIly Will tilt SpliIt VI TIC tLile
measures of retaliation are not" II
expansion of our trade and commerce
was, as Mckinley declared in 1901,
80 years ago, prime necessity in the
then state of our economic life, how
much more is it indispensable to our
material and, may add, our spiritual
welfare, in these distressing times.
l haven't the fear that possess some
timorous minds that We should get the
worst of it in such reciprocal arrange
ments. ask if you have no faith In
Our Yankee tradition of good old-faSh-
ioned trading? Do you believe that our
early instincts for successful barter
have degenerated or atrophied? / dc
not think so. I have confidence that
the spirit of the stalwart traders still
permeates our people, that the red
blood Of the men who sailed our Yankee
clippers around the Horn in the China
trade, still courses in our veins. I can
not picture Uncle Sam as supine