Evening star., 1934-02-28
and through the Government to the

So far as has been learned, there
Is no plan to do away with the Tariff
Commission, the fact-fiinding body Of
the Government with regard to tariff
duties. although there have been man
ifest desires on the part OF some Of
the Presidents advisers to set up .
new, super agency to have control Of
all matters relating to Americas for
eign trade.
Market Can Be Yardstick.
However, there Is q plan on foot
very definitely to do away with the
old cost Of production" theory Of
tariff investigation and tariff making.
theory which has tied up the Tariff
Commission as tight as . drum on
occasion. 1t Is explained that 1t Is
really impossible to learn the cost Of
production fairly. either at home or
abroad. The cost, for example, Of
producing wheat In Kansas Is vastly
different from the cost Of producing
wheat in Massachusetts,, and the cost
Of producing . by-product is almost
impossible to ascertain. What the
goods are selling for in the markets
in this country and In foreign coun-
tries are readily ascertainable and
can be used as the yardsticks upon
which to base tariffs.
Mr.. Peek. president Of the new Ex-
port Import Banking Corporation,
met last night with the members Of
the board Of directors to work out q
plan for facilitating credits for the
trade with Russia. It Is planned, too,
to arrange for making a loan Of sew
eral millions Of dollars to Cuba.
Some question as to the method Of
dealing with the Cuban government
has been raised-where the money is
to come from, etc. The money for
the Russian trade was provided from
the P. w. A. and the r. F. c., under
authority Of the national industrial
recovery act.
The Cuban government, under the
plan. would utilize the funds to buy
silver in the United States, and mint
its own dollars.
Food Loan Plan Dropped.
Within a few days after Carlos
Mendieta assumed the presidency of
Cuba, the Cuban government request
ed the United States to arrange for
the shipment of approximately $2,000.-
900 worth of foodstuf1s as q loan.
After several weeks of negotiation in
which the foodstuffs loan was strongly
opposed by Havana commercial in
terests the plan was dropped.
Administration officials said the
foodstuffs loan would be replaced by
direct loan, through the bank Or
ganized last night, the proceeds Of the
loan to be used for purchasing silver
for coinage in Cuba.
Although q silver loan to Cuba Is
the first scheduled act Of the new
bank, administration officials empha-
sized that 1t would undertake to
finance commercial transactions in
other commodities. Cuba Is consid-
cred one Of Americas best markets
for agricultural products. and Peek
chief interest has been the expansion
Of agricultural sales in foreign coun-
tries.
Peek said today the Russian bank
would probably be ready to function
within 30 days.
The foreign trade Of the United
States, according to figures compiled
by the Department of Commerce,
during the year 1893, was exports,
81, ,674 983, 900; imports, $1,449, ,559,-
600, computed in the old manner,
which Jumped together all exports and
imports, whether they came into this
country to go into bonded ware
houses or we're strictly exports and
imports for consumption. The ex-
ports Of this country for the year 1882
were 81, 1,611 900 900, and the imports,
81, ,323, 100000. These figures repre-
sent tremendous drop from those
for the foreign trade Of this country
in the boom years and in 1882 the
export figures fell lower than those
for 1913, while the import figures
were only rs per cent above the 1913
total.
Increase Over January, 1888.
Although American foreign COM
merce has been on the upgrade in
recent months, it has Q long way to
60 to get back to anything approach
ing normal or to bring about an out
let capable Of bringing q measure Of
prosperity to producers. The figures
for January of this year, just an
nounced today by the Department Of
Commerce, show that domestic ex-
ports-exclusive of bonded warehouse
goods-were valued at $169, ,53l 900 and
that the imports for consumption, ex-
elusive Of imports for bonded ware
houses, were valued at $128, 536, 900.
In January Of 1888 the exports COM
puted In the same way totaled $1l8,-
558, 900 and the imports S92, ,7l8,000.
The proposal to open the doors Of
America to any larger admission of
goods from abroad always bring pro-
tests, some Of which are entirely
legitimate. However, the officials Of
the administration insist that It is q
short-sighted policy which seeks to
protect" American industry through
the exclusion Of foreign goods which
are needed to pay for American ex.
ports.
1t Is pointed out that American
labor Is employed in making these
exports and II they cannot be sold
abroad American labor which makes
them is thrown out Of employment.
The problem is whether more Amer
ican labor is thrown out Of work be-
cause Of imports Of foreign goods or
because Of the reduction of American
exports. If for the sake Of protecting
Insignificant American interests this
country excludes imports which would
pay for exported products that would
give American labor much employ
ment. the Government Ii not protect
ing American industry and labor, but
really operating against their best In.
terestk