Evening star., 1935-11-19
BY DAVID LAWRENCE.

of tariffs, politically dangerous, eco
nomically painful perhaps to certain
groups or sections, but on the whole
the traditional method of intercourse
which the world has employed in the
past.
This week, by the announcement
of the agreement reached with Cam
ada, it may be said that America
has chosen the path of foreign trade
and that, as fast as markets can
be recovered abroad. restrictions on
production at home will be gradually
removed.
Times Make Decision Vital.
The Canadian agreement marks a
climax because, while the principle
OF reciprocity Is not new, having
been proclaimed by Republicans like
James G. Blaine and later by Presi-
dents Mckinley and Taft, the appli-
cation of the principle at moment
of high tariff warfare in the world
is of greater Importance than 1t would
have been had the agreement been
negotiated at any other period in our
economic history.
What Mr. Roosevelt has done is to
yield at last to the persuasion Of Sec
retary Of State Hull, who has MAIN
tanned for decade, in season and
out, in the Senate and in pubic
forums, that postwar economic ma
tionalism must cease. The President
in the Summer of 1888, by his mes
sage breaking up the London economic
| conference, astonished the world by
taking the opposite tack. He sided
with the extreme nationalists and
self-containment school of thought
and veered away from the Hull doc
trines. In fairness to the President.
it might be said that he believed at
that time the monetary situation in
America was too unsettled for him to
adopt any other course.
But whatever may be the reason
for the delay, the fact remains that
| today MIR. Roosevelt has started in
the right direction. He will have on
this issue the gratitude Of all those
who, since 1880, have been arguing
that the way out Of the depression was
by the removal of artificial barriers
that strangled trade. He will win
the support of those who fought bit
terly the imposition Of the Hawley-
Smoot tariff In 1880 as the worst piece
of tariff insanity ever perpetrated. 1t
was this law that brought reprisals
and retaliatory tariffs which caused
| American companies to abandon their
plants and Workmen here and estab-
lish branches and assembly plants
abroad, thus contributing to the acute
defiation during the depression era.
Tariffs Always Barbed.
The tariff issue, of course, is two
edged sword. The Democrats from
some sections Of the country have been
becoming protectionists much like the
high tariff Republicans. The Repub-
lican party has again and again split,
as between Eastern and Western fac
tionalism, because of the tariff. 1t
has remained to be demonstrated this
week that the head of the Democratic
party dared to take the risks Of
offending tariff beneficiaries in his
own following by an experiment in
tariff reduction with Canada.
For something more than just an
agreement with Canada is involved.
If the principle now applied is sue
cessful, if it Is not wrecked on the
rocks of political manipulation as
was the other Canadian reciprocity
agreement in 1911, the whole world
may see a reversal OF the tide Of high
tariffs and o beginning Of the restora-
ton Of foreign trade. so essential TO
world recovery.
It is the irony Of fate that the
Canadian-Ameri agreement has
to be announced at the very time
when most Of the nations OF the
world are undertaking an economic
blockade of italy for her violation OF
the League Covenant. But 1t Is even
more to the credit of Mr.. Roosevelt
and Premier Mackenzie King that
they did not permit happenings in
Europe to dissuade them from giving
an example to the world OF good
neighborliness and sensible appraisal
of the difficult problem Of trade inter-
course.
Revisions Are Possible.
There will be protests on SPECIFIC
items. Perhaps many Of these will
be justified. After all, q complicated
agreement on any set Of tariff rates,
whether 1t comes out Of q congress
sional committee or out Of q diplo-
matte negotiation, Is bound to have
weaknesses in it. The attempt to work
out a compromise leads inevitably to
some hurts and injuries. The ma
chinery set up for negotiation between
the two countries permits Of revision
Of mistakes. though naturally q
determined effort will be made by
both governments to avoid reopening
the agreement for fear it may pre-
cipitate on both sides Of the line
discussion that will impair the con-
summation Of the treaty.
The simple facts Of what has hap
pened are these:
/. Canada bought from us In 1929
about 5000, ,000,000 worth OF goods.
She bought last year only $500, 900, 900
from US.
2. The United States bought $780,
00O, 900 worth of goods from Canada
in 1929 and bought only $3.50, 0,000.0 600
last year from our neighbors across
the northern border.
The same story can be told in the
total foreign trade figures. We had
close to $l,500. 100000 in exports to
other countries in 1929, and bought
almost as much from the rest Of the
world. During the depression both
figures have been cut down by fully
two-thirds. What was the result?
Unemployment, doles, unbalanced
budgets and Federal bureaucracy and
regimentation and restriction-an ex-
pensive process both to our enjoy
ment Of natural liberties and in
creased purchasing power.
toopsrist 1850