Evening star., 1933-06-11
BY ARTHUR CRAWFORD.

| LHiS issue.
Il BY ARTHUR CRAWFORD.
Reciprocal tariff agreements contem.
plated by the Roosevelt administration
during the World Economic Conference
represent return to a policy with
which the United States has expert.
mented and abandoned Curiously, Re-
publican administrations were sponsors
for tariffs of bargaining type in earlier
years. Now the Republicans, at least
those classed as high protectionists, are
hostile to the purposes of the present
Democratic administration
In general, reciprocal tariff agree
ments which have not been out of har-
money with Republican theories have
applied to commodities which did not
offer injurious competition to domestic
industries. Now the administration
would level down all tariffs, regardless
of the nature of the domestic industry,
by a fiat percentage and on top of that
make further cuts in rates on many
| commodities. Naturally the high pro-
| tectiodsts and especially the spokesmen
! for particular protected industries are
alarmed over the prospect.
Favor Reciprocal Tariffs.
From the viewpoint of President
! Roosevelt and Secretary of State Cor
dell Hull reciprocal tariffs are demanded
! by the present situation as offering the
most practical way of reducing tariff
walls which are higher than ever be-
| fore in history and form major OBJ
stacle to the revival of international
trade.
1t has been realized by the admins
tration that many obstacles to the
/ ratification of treaties involving reduc-
tions in tariff duties will be imposed
unless broad authority to negotiate such
| treaties without a requirement for ratifi-
cation by Congress Is given to the Presi-
| dent. Ratification of agreements of
! this character is doubly difficult under
present laws because changes in GUS
toms duties require action by both
as in the case of ordinary treaties.
The model for the type of bargain
ing tariff authority sought by the
present administration in its desire for
freedom from the necessity OF congress
, sional ratification has been found in
the so-called "argol agreements" un-
der She Dingley tariff of 1897.
In that tariff act, which was passed
during the Mckinley administration,
there was provision empowering the
President to make concessions through
~ IGuuCllOu O1 QutkCo O1l q SRCN12ACS
list of articles, headed by argcls, when
coming from countries making equiva-
lent concessions to the products of the
United States. The law listed in this
connection "argols, or crude tartar,
or wine lees, crude; brandies, or other
spirits manufactured or distilled from
grain or other materials; champagne
and ali other sparkling wines; still
wines and vermuth; paintings and
Statuary."
Obviously imports of these few COM
modities offered no great menace to
domestic industry, but offered basis
for bargaining with countries which
were anxious to ship them into the
United States. The law fixed duties
on these commodities but authorized
the President to suspend their opera
tions as to countries entering into
reciprocal treaties.
Two Series Of Agreements.
There were two series of so-called
argol agreements The first was
ministration with France, Portugal,
Germany and italy. The concessions
obtained by the United States in re-
turn for a few reductions Of duty were
of some Importance and in general
were approved by the American public.
A second series of agreements was
negotiated during the administration OF
Theodore Roosevelt. They were with
Spain and Bulgaria and OF more
limited character with Great Britain
and the Netherlands. The treaties with
France Portugal, Germany and Italy
were supplemented or extended.
Also In the act Of 1897 was provi-
sion authorizing the President to nego-
tiate treaties for the reduction by not
more than 20 per cent of the duties on
any articles imported into the United
States in return for equivalent conceS-
sions by the other party Unlike the
argol agreements, over which the Presi-
dent had complete power, treaties under
this provision required ratification. A
| number of treaties were negotiated with
various nations, including France and
several Latin American countries. They
failed of ratification when submitted
in 1900
The Payne-Aldrich tariff act Of 1908
provided for termination of all reci-
procity agreements, including the argol
list, except that with Cuba, which had
been made in 1902 following the Span
ish War. The Cuban agreement pro-
vides for reciprocal reductions IN duties
Of 20 per cent.
In reviewing the effect of the argol
| agreements the influence of reciprocity
| was to be seen most clearly in increased
| imports of argols and sparkling wines.
| There were increased exports OF num-
| Der of commodities on which duties had
been reduced by foreign countries. In
general the agreements had only a very
| limited influence on the amount or
direction of trade.
Seven Treaties Concluded.
1 1yxts,,
| reciprocity had been entered into by
| the United States. Only two Of these,
| one with Canada in 1854 and another
| with Hawaii in 1875. became effective.
| The Canadian treaty was abrogated
| during the Civil War at the instance
| of Canada, although adverse sentiment
respecting it also had arisen in the
| United States. Causes contributing to
its abrogation were the adoption OF
| protectionist principles in Canada, feel
ing aroused by the Civil War. the need
of increased revenue by both countries
| and dissatisfaction of the fish, lumber
and coal interests in the United States.
During the IL years the treaty was in
| effect the trade between the two
| countries increased three-fold. The
| treaty with Hawaii continued in opera
| ton until 1900. when the organic act,
under which the islands came under
the jurisdiction OF the United States
became effective
The Mckinley tariff act of 1890 con-
tanned the first authorization ever
given by Cogress for comprehensive
| program of tariff bargaining. 1t in
cluded a provision for the imposition
of penalty duties upon imports from
countries which Disseminated in their
tariff treatment against goods from
the United States. It's adoption was
strongly urged by Secretary OF State
James G.. Blaine.
The articles upon which penalties