Evening star., 1934-03-25
New Tariff Battle Near
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l. VOW Il 0l ILL
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duty today is two and one-half times
the actual price that the domestic
beverage is selling for in this country.
Moreover, the report has been on the
President's~sdesk ever since October
81. The importations would have
relatively little effect ON the domestic
industry.
Somewhat of Protectionist.
The fact Is that Mr.. Roosevelt is
being extraordinarily careful to avoid
action that might In any way disrupt
American business. He is more Of a
protectionist than some of the Re-
publican members of the Tariff Com
mission. Those who have collabor-
ated with him in preparing for the
tariff battle now in its initial stages
assert that any action he takes, "if,
as and when" he gets the authority
he has requested, will come only after
4lc IldS onIASllCo bI1dO ~ WALL
not be an impediment to our own
business, industry or agriculture.
His proposal, from some points Of
view, is as innocuous as the existing
law, despite the furor it has oc-
caSioned. II all Of our interests are
to be protected. it Is inconceivable
that action under the act by itself
can bring realization of the dictum
laid down recently by Agriculture
Secretary Wallace, who spoke with
administration authority when he
said the United States is confronted
by a choice of three alternatives;
either it must make very radical
reduction in tariffs-sufficien to
allow a billion-dolla increase in i'm
ports over 1929-revise reciprocal
tariffs downward to increase imports
by half a billion dollars a year, or
adopt complete economic autocracy,
with the immediate qualification that
"the middle path between economic
internationalism and nationalism is
the course We shall probably take in
the end"
From any point Of view, the duti-
dDlC llSJ. ONCL WIllIA tllC
would have personal control under the
proposed legislation, offers extremely
limited possibilities for advantageous
reciprocal agreements with other coun-
tries. They are the more circum-
scribed when caution is the prime
consideration.
Must Make Careful Choice.
But there is an even more pertinent
consideration in so far as the articles
on the dutiable list are concerned.
Mr.. Roosevelt not only must select
articles on which trades can be made
advantageously, but he must find
countries with which he can make the
trades, and which, in turn, can find
a ready market here for their raw
products or manufactured materials
in each instance without upsetting our
domestic affairs.
These countries are as scarce as
the proverbial hens teeth. Great
Britain is our best customer. What
favors can she give us in return for
favors which we extend to her?
They are mighty few indeed. She
dlICdOy lido lld0C "AeiA
dependencies, not to mention certain
of her neighbors. And some authori-
ties might observe that she is mort
gagged up to the hilt now.
Go up. down and across Europe, do
the same in the Americas or the
Orient, and you will find similar or
even less favorable conditions. Even
when such trades as we would like
can be effected, there is the further
vital matter of the shortage of funds.
which in the end may well require our
financing the deals. There are not
20 articles worthy Of protracted con-
sideration on the whole dutiable list
that offers possibilities.
But even If We grant that some
trades can be successfully negotiated,
there is still another side to the ques-
ton. There is no doubt that business
and industry are on guard to protect
their interests, because Of the in
grained belief that whatever the re-
ciprocal agreements may be, each
must necessarily hit some one unless
and until the theoretical increase in
international trade actually becomes
a fact.
Disturbed by Reports.
Witness the following telegram,
typical of a food Of messages that
has descended upon members Of Con-
gress from the day 1t became known
that the President would request tariff
powers:
Greatly disturbed by newspaper
reports that the President will de-
mand action on plan to give him ar
bitrary tariff powers heretofore un-
heard of. In my Judgment nothing
will upset business recovery more
than tariff uncertainty. which will
then be inevitable New England tex
tile interests will look to you to help
defeat such legislation. We are not
ready to give up our business to
dictator with no chance to safeguard
our interests"
And the Senator to whom the tele-
gram was addressed made reply:
Nothing can upset business so
much as unexpected changes in tariff.
No one can prophesy what the future
will bring forth nor how business men
shall know how@to continue"
But this is evidence enough that
business is worried. It is logical to
ask why. in the face Of these many
difficulties, Mr.. Roosevelt desired con-
troll over the tariff?
In the first place, the President Is