The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-09
WORLD
TRADE is new
TARIFF COAL
Basic Changes Embraced in
Plan Drawn on Order of
President.
BY THOMAS l.. STOKES
Times staff Writer


WASHINGTON, Jan. 9-Presi-
dent Rooseyelt's project for negotia-
tons Of reciprocal tariff agreements
with other nations, under power to
be delegated by congress. revealed
itself today as a broad plan for re-
making the cOuntry's tariff struc-
ture on an economic rather than a
political basis.
1t represents a bold attempt to
reconstruct the theory Of tariffs so
that the nations strong industries
will have a better opportunity to sell
in foreign markets while weak in
dustries, which have been nurtured
by high tariffs at the cost Of the
American consumer, will be Weeded
out. Generally the objective is to
create a freer world market to the
advantage Of all nations.
The plan reaches toward the old
free-traders dream of nations pro-
ducing those things they are fitted
to produce without attempting to
buId up industries, under a high
tariff wall, which have no real place
in their domestic economies.
Agreements on Barter Basis
While the immediate objective is
the negotiation of agreements that
will open new markets, on a barter
basis, to assist early world recovery,
there is directly involved this long
time, permanent reform in tariff
policy.
1t was learned today that grading
or classification of the nations in
duStrieS is recommended in the
closely-guarded final report of the
administrations commercial policy
committee, headed by assistant sec
rotary Of state William Phillips,
which now is before President
Roosevelt for study. This section
was prepared in the state depart
ment at President Roosevelt'S direc-
ton, it is understood.
Under the grading plan industries
would be divided into several
categories according to the pro-
lection they now get, their necessity,
the number of persons they employ,
the wages they pay, and the cost of
their product as compared with the
cost of similar product if imported
from abroad. Those necessary to
national defense would be placed in
special class with assured pro-
lection.
Hits at Weak Industries
The theory is to withdraw high
protection from weak industries,
the products of which are made
better and cheaper abroad. These
foreign products would be admitted
in exchange for admission to other
countries of the products of strong
United States industries. In some
cases. as for instance, cement, COM
modities would be admitted only to
the seabOard states where their
cost is high because of heavy freight
charges from points of domestic
manufacture. Subsidies would be
granted in some cases and aioca-
ton of production also might be
reSorted to.
Strengthens Tariff Body
The report also recommends a re-
organization and strengthening of
the United States tariff commission,
which, under the Presidents plan,
would become a much more i'm
portant body than hitherto.
Because of its sweeping nature,
D,-acida1,f'c to,.iH ,NrOnocol &c
bound to become q momentouS is
sue during the present session of
congress. The chief executive is not
expected to submit his plan to con-
greSS for some time. He desires to
discuss it first with State Secretary
Cordell Hull, who is not due back
here for three weeks, and with con-
gressional leaders.
This week the chief executive will
begin preliminary conferences with
party leaders, including Senator Ed
ward P Costigan, Colorado, former
member of the United States tariff
commission and a recognized au-
thority on the tariff. Senator Cos
tigan laid the groundwork for the
pIOleCleQ Ie1OIll III llle 1dSJ GOIl-
gress by a series of resolutions call
ing upon the tariff commission to
submit to the senate data showing
the extent of imports and exports
and the percentage of tariff pro-
lection for American commodities.
This information, now being gath
cred all over the world. will form
the basis of the grading system.
Obstacles Confront Plan
Several obstacles confront final
approval by congress of the Presi-
dents plan.
The most important concerns a
difference of opinion as to whether
the delegation of power is to be
permanent or limited. Many DEM
ocratS would oppose any permanent
grant of power to the President.
They trust President Roosevelt, but
look forward to the future when
some protectioniSt might become
chief executive.
A plan gaining much support
a CLEAR COMPLEXION