Evening star., 1934-07-29
u. S. Seeks Means of
World Trade Revival
BY HARDEN CoLFAx.

A determined and carefully planned
attack on the problem Of world trade
revival is being made by the State
Department. This takes the form OF
an attempt to apply the lever of
reciprocal tariff treaties to check the
long continued slump in international
commerce and to restore general
economic prosperity.
Preparatory hearings. started this
week under the new reciprocal tariff
act, are expected to bring out some
significant. testimony from persons
interested IN the trade concessions to
be written into the proposed re-
ciprocal trade treaty with Cuba. This
treaty, it is expected, will be ready
for the Presidents signature when he
returns from his sea vacation.
The general public probably does
not as yet realize it, but our tradi-
tional tariff policy is undoubtedly
changing. 1t is conceded, although
not publicly by the State Department,
that definite specific efforts are now
being made to reduce some Of our
barriers against imports.
In his address at Madison, Wis,
few days ago, Secretary Wallace came
out as the chief administration
spokesman for this idea. With the
setting up of new agencies to deal
with various phases of the problem
and particularly with the enactment
of the reciprocal tariff bill, we are
now equipped. the Secretary said, to
enter upon IAN active campaign for
- FoIw Il
pleted foreign trade"
Under the new tariff act the
President is authorized to. enter into
trade agreements with foreign coun-
tries and in connection Herewith to
reduce or advance existing rates by
as much as so per cent In this con-
nection it should not be forgotten
that the act does not authorize the
President to alter at will any rate
with any foreign country without
reference to tariff negotiation. Such
alteration as the President may make
must be in connection with negotia-
tions with a particular country, and
most changes in rates will probably
be downward.
1t has been estimated that some
$50 commodities, highly protected by
our tariff, most of them manufactured
products and many of them practical
monopolies, will be chiefly affected.
1t is felt that the rates on some OF
these must come down. There are
perhaps 1000 other imported COM
modities protected only slightly. The
imports Of these are less than 10 per
cent of our domestic production. 1t Is
believed more or these could be let in
Then there are nearly 400 non-com-
petitive imports. On some Of these
there is no tariff. On the others the
tariff could be reduced.
While not willing to be quoted, Fed
eral officials intimated that, perhaps
by reducing tariffs, we could let In
some 5000, 100000 more of imports.
Assuming that this would raise the
purchasing power of people abroad,
they might buy goods in equal value
from US.
The whole idea Is inevitably In the
general direction of lower tariffs. This
will, Of course, mean gain for some
American businesses and loss for 9TH
ers. In reply to the charge that tariff
reductions mean wage reductions. Mr.
Wallace maintains that those indus
tries which have led the way In the
trend toward higher wages in this
country are the very industries which
have shown the greatest ability to
meet foreign competition, both at
home and abroad"
Some progress has been made in the
C reciprocal trade trea-