Evening star., 1933-05-22
International Tariffs.

InternatlQnaI 1arlUS'
President Roosevelt is expected to ask
of Congress broad powers to enter INTO
rsciprccal tariff agreements with Tor
eign nations. in furtherance of the ad-
ninistrationS policy to break down in
ternational trade barriers. The PreSl-
dent may send to Congress special
message on this subject during the
present week. This is in line with the
plans of his Secretary of State, Cordell
Hull, whose dream 1t is that inter-
national trade may be again stimu-
lated and the recovery Of the world
economically brought about through the
lowering of trade barriers.
When the proposal is submitted to
Congress, it is likely to meet strong
opposition. The protective tariff system.
under which the industries OF this
country have been built up in the past,
A still firmly intrenched In the minds
of many Americans, including null
titude of Democrats. And the domestic
market of the United States, which
consumes the vast amount OF the proc
ucts of American labor today, Is recog-
nized as of much greater Importance
10 the people of this country than ell
the world trade. The fear is that
with the removal of trade barriers the
United States Will be flooded with goods
MADE by poorly paid labor in torelsn
countries. With consumption OF goods
limited to the consuming power OF the
American people, it is obvious that the
importation Of great quantities OF
cheaper goods in competition with
American goods would not be ad-
vantageous to American labor and in
dustry.
The theory of Secretary Hull has
been that a breaking down Of the tariff
and other trade barriers which have
been reared by nearly all the nations
ss well as the United States, in order
to protect home markets, will put new
life blood into world commerce. This
II IN conflict with the theory of the
protectionist and the supporter of ma
tional economic sufficiency. There may
be a happy medium between the two,
and 1t Is toward such a medium that
Secretary Hull and the administration
are hoping to work way in the coming
World Economic Conference in London.
Protection through tariffs Is fine thing
for a nation if 1t works only in one
direction When the other fellow adopts
the same protective tariff system and
raises barriers to trade still higher. the
system takes on another aspect entirely.
The Congress has in the past jealous
" guarded its power to raise CT lower
tariff duties. When the Republican
Congress gave to the President several
years ago the right under the flexible
provisions of the law to raise or lower
tariff duties by fifty per cent after
thorough investigation and report by
the United States Tariff Commission,
there was vice denunciation Of the
measure. Under Republican Presidents
this power has been used sparingly and
few tariffs have been reduced PrCSi-
dent Roosevelt stih has that power If
he sees fit to exercise it.
1t is not the purpose OF the Secretary
Of State or of the administration to
lower tariffs and to permit inflow OF
foreign goods into this country without
obtaining from foreign nations agree
ments to permit the entry of American
products into their borders through re-
noval Of existing trade barriers. A reci-
procity arrangement is planned by
which products of which the United
States produces a maximum and the
other country minimum shall, IN ef-
feet. be exchanged without tariff re-
striction for products OF which the
other country produces maximum
and the United States a minimum. thus
eliminating, as far as possible, hurtful
competition in our own markets be-
tween domestic products and the
cheaper products of the other country
The fear Will exist in the minds Of
many, however. tnaO lle DuIauce OF aO-
vantage may be against the United
States, since this country is today th'
most desired market in the world For.
mer President Hoover warned in {
speech In Madison Square Garden dur
ing the campaign last year that If thu
tariff system of the United States wa
abandoned grass would grow in thu
streets of many American cities. HI
was derided for this remark at thu
time. Nevertheless, with the heat o
the campaign gone, millions of Ameri
cans will consider this warning NOR
Seberly.