Evening star., 1933-02-12
TARIFF BLAMED FOR LOSS
In PAN-AMERICAN TRADE
Depression Called Only Partly RESPONSE
BILE for Undoing Of 20 Years Work
i'm Commerce.

toned. They also suffered decrease
from the heights of prosperity years,
but o decrease which can resist no
comparison with that recorded for the
Latin American republics. While ex-
ports to these went back in 1882 to fig
ureS lower than those of 1910 and 1913.
exports to Puerto Rico in 1892 still
were some $20,00O,o00 above the pre-
war averages.
Is it merely coincidence that the
only region in Latin America where
trade with the United States has eS-
capped a staggering decline is also the
only one on a free trade basis with this
| country, it being under the sovereignty
of the American flag?
Is it not logical to infer that if high
| tariff walls had not been erected be-
tween the United States and the Latin
American republics the decline in ex-
port trade would have been only rela-
1--WE, as In Puerto Rico; in accordance
With the economic crisis, and not out
of all proportion with it, as has been
actually the case?
Some three years ago, when the
| highly protective rates of the Hawley-
Smoot tariff act were under discus
sion, Latin Americans pointed with
concern to the harmful effects which
| were bound to result from their en-
| actment
They warned that declining imports
would be followed by declining ex-
ports, because the reduced buying DOW
er OF the nations affected by the tar
lfts would force them to cut down
their purchases Of American manufac-
tured products.
They emphasized that high tariffs
brought considerable i'll will and retail
latlonS which might prove very serious
IN the course of years. They even
stressed a third danger; the flight of
American factories to foreign lands in
order to get over the tariff walls which
those countries were certain to adopt
as a counter-move, and the resultant
employment of foreign workers.
All these arguments and the more
reSound1ng ones in behalf of interna-
tlonal friendship and cooperation,
Subtly voiced by the diplomatic repre-
sentatives of the Latin American ma
lions which were to be most affected,
were disregarded by the gentlemen at
the Capitol. And the Hawley-Smoot
tariff went into effect.
Former Ambassador Quoted.
| The case for Latin America was
ably set forth by former Ambassador
Malbran of Argentina when he said:
1T is not logical to expect us to pay
for all of our foreign requirements in
gold. We must try to pay at least in
! part with our eXportable products.
| Those interested in selling to us the
products of their factories should also
be most interested in our success in
disposing of our products, thus in
creaSing our purchasing power"
In the Fall of 1881 the fourth Pan
American Commercial Conference was
held in Washington. After hearing
President Hoover, Vice President Cur
tls, Secretary of State Stimson, Secre-
tary of the Treasury Mellon, Secretary
OF Commerce Lamont talk of inter-
national good will and the future Of
| inter American trade, the delegates lis
tened to the pleas of the Latin Ameri-
can spokesmen. The high tariffs had
| already begun their destructive work,
and the Southern visitors were not
here to conceal it. They pronounced
themselves for tariff reductions, en-
phasized the dangers of the situation,
and even went as far as suggesting
two-year tariff truce.
Before adiourning the conference
passed resolution submitting for ''the
| consideration of the American govern
mentS the hope of the delegates that
the American republics should grant
each other, as soon as conditions Of
| their domestic economy may permit,
| the greatest tariff advantages and the
| reduction of domestic taxes on natural
products either through multi
lateral conventions or special treaties"
Similar resolutions had already been
approved by the Pan American Re-
ciprocal Trade Conference of Sacra-
mento, Calf, and by the world meet
ing OF the International Chamber of
Commerce at washington.
Oil and Copper Tariffs.
Yet, last year, two new and higher
tariffs were passed by the United States
Congress, on oil and copper, which af-
fected seriously a number of the Latin
American countries.
The reaction was general throughout
Latin America. A motion was intro
duced in the Peruvian Chamber of
Deputies asking the government Of
Lima to call South American con-
ference fer the purpose of counteract-
ing the high tariffs of the United States.
Chilean newspapers opined: The only
thing to do, now, Is to set up a sort of
economic boycott of = manufactured
goods Wade in the United States of
America and divert Latin Americas
trade to Europe and Asia" A Cuban
official suggested that 'the British and
japanese offer pleasing prospectives."
Argentina began looking for a trade
agreement with Great Britain on a
preferential basis.
Last week, in Mendoza, the foreign
ministers of Argentina and Chile opened
the way for what may eventually de-
velop into a South American Customs
Union, with the added support, already
assured, of Brazil, Uruguay and Peru.
II the breakdown of inter-American
trade to the pre-war level is not suf-
flcient to disturb him, these moves for
regional Curtoms Union at least
should open the eyes Of Uncle Sam and
prompt him to look southwark.
(Copyright, 1889