Evening star., 1934-01-01
RECIPROCAL TRADE
BOARD CONSIDERED.
Proposed Agency Would Req
uIate United States Ex.
ports and Imports.
BY CONSTANTINE BROWN

The setting up Of governmental
agency to deal exclusively with the
American foreign trade is reported TO
be one of the schemes of President
Roosevelts economic advisers
The recent dealings OF the adm!nis-
tration with foreign governments re-
garding the wines and liquors which
were bartered exclusively for agricul-
tural products, have encouraged the
official economists to push forward their
studies for the application Of the same
methods to all American exports and
imports from countries abroad.
The basic idea Is that the changes
which have occurred in the national
economy Of most countries during the
last few years have led to a situation
whereby most countries manufacture al
most everything they need Interna-
tional trade appears to be restricted to
only two categories OF goods: raw ma
terials and luxuries. The export Of the
finished product will become more diff
cult as years 60 by.
To Alter Tariffs
Because OF this, it is believed the best
means to regulate the exports and i'm
ports of this country would be through
have ample powers to deal with for
eign countries on the basis of recipro-
cal trade agreements and would be able
to increase or reduce tariffs for certain
goods from abroad when any particular
foreign country agrees to absorb certain
American products.
1t is for this reason the President in
tends to obtain wide powers from the
Congress to increase or raise tariffs.
America is one of the few countries
in the world which, with the exception
OF manganese, rubber and a few other
commodities. possesses every kind Of
raw material and is also in a position
to produce everything that the country
needs
There are. however. a few luxury
products which foreign countries pro-
duce. but which. under the general tar
III system. have TO pay heavy import
Cuties when they come into this coun-
try
II the Government. by setting up
foreign trade administration could reg
ulate the international commerce OF
this country by increasing or reducing
the tariffs in special individual cases,
the possibility OF a more active inter-
national trade would be greatly in
creased
The following situation illustrates
what the official economists have in
mind
Italy has to buy abroad most OF the
raw materials she uses in her industry
and especially cotton. coal and iron.
She buys at the present time an
important quantity of cotton in this
country. but most Of her coal and iron
is purchased in other countries.
No Reciprocity Now.
Italy could export into this country
a much larger quantity Of luXurleS
which she is manufacturing II special
tariff were given her The Italian
silks. the laceS. the manufactured
leather goods, porcelains and other
such luxuries, without counting wines
and olive Oil, have to pay duty, as, say,
the similar Austrian and French
products.
Under the present tariff regime these
goods are put on the same footing as
the products Of other countries even
il Italy decided to purchase most OF
the needed raw materials in the
United States.
The agency the economists have IN
mind would deal with suCn particular
situations to the advantage OF the two
countries.
Furthermore. there is the question OF
credits and money transfer.
International trade is handicapped
by the fact that nobody knows what
each individual currency Will be worth
tomorrow.
1t is reported that the United States
intends to establish a special agency to
deal with the future Russian trade and
especially the credit 10 be afforded TO
that country. Taking such an agency
as an example 1t might be possible to
extend its activities to any other country
which was willing to conclude special
trade agreements with the United
States
Finally, under the N r. A. codes.
1t might be possible TO discourage the
production in this country Of certain
products which are not remunerative
and which are able 10 maintain their
existence only because of the high tariff
wall