Henderson daily dispatch., 1935-12-20

carded as unimpOrtant because 1t
| constituted, say, only ten percent OF
our total business in 1929. liken for
eign trade, however, to an cqultp in
I a, business. When ten percent of the
earning power of a company is des-
trOyed, it may turn black ink intol
red on that cOnccrn't books and dcs-
troy the equity. That is what hap
pened to United States business when
, our foreign trade hit the tobOggan
slide in 1929
Tariff Backwashes
Losing our foreign business was
| relatively unimportant in itself. When
it went, however, it ruined business
all down the line. For instance, !, was
one of the major reasons why the
price Of cotton $50 percent of, which
crop was exported in 1920 dropped
from eighteen cents to sir cents; and
why the price of wheat GO percent
CT which was exported III 1920 de-
clned from $3.50 to $3.50 The crash
in these prices cut in:c 5he purchas-
ing power of planters and farmers.
/ They could buy no farm tools and
no new automobiles. This in turn
/ lIlICW DCOIIC Out OL WoEh lAI 1dC-
tories. These jobless workers could
! buy less food and less clothing, thus
| depressing wheat and cotton prices
even more.
Two hundred years ago, when our
| economic system was relatively
simple, it was easy for the Colonial
! planter to see that if the British
merchant could not buy his tobacco,
| then the planter would have no money
to buy linens, China, silver, and other
finery from London. With today's
complicated system however, it is
almost impossible to make the Kan
! SaS wheat farmer. the Georgia cot
ton planter, the New England tex
tile worker, and the Detroit motor
mechanic realize that the Washing
ton tariff policy is more important to
his standard OF living than the AAA
or the 30-hour week. Today every
country is faced with the gigantic
task Of making their pcopTes apprc-
ciatc the tremendous significance or
tariffs dcpreciated currcncies, and
other artificial trade barriers.
Administrations Policy
One Of the planlls in the platform
Of the present administration was TO
readjust tariffs. President RoOsevelts
attitude at the time of the World
! Economic Conference in une, 1888,
suggested that he had forgotten this
| promise. A few months later. how
ever he asked and was given pow
er to make certain tariff changes.
! Secretary Hull worked for mOnth9
negotiating agreements with Cuba
| Sweden, Brazil, Belgium, and several
other nations. These pacta, however,
| are of only minor importance COM
pared with the recent Canadian treaty
Both Secretary Hull and President
| Roosevelt deserve great credit for
their courage in cOnsunmating this
| agreement.
In making this statement l am not
endorsing every item and every schn-
dule in the agreement. = am simply
unfolding the principle-that of re-
ciprocity-on which it was based.
! firmly believe that in this particular
treaty our government has embark
ed. at last, on, a safe and sane pro-
gram Of tariff reimbursement and trade
"rcstOrationI' In t;lis respect the
Canadian treaty may mark the turn
ing point in an era of natlonallsm
which recently reached absurd pro
portions. Hence any move when
n NAV restore world commerce by re-
moving artificial trade barriers de-
serves the acclaim of the entire
world
Significant Step.
This agreement has come at a sig
nificant time. Elsewhere the world
seems to be cmbroiled in martial and
economic strife. Holland and France
are still suffering from acute defia-
ton. While it is Impossible 10 say
exactly when these countries Will be
forced off gold. they cannot resist
pressure indefinitely. feel that when
the "gold bloc" breaks The way may
be paved toward sterilization Oh cur
rencies~ This would be Il big step To-
ward revival in world trade. With
the treaty between Canada ana the
United States as an example, real
progress toward the ending OF salIlSh
nationalism could be made
Even though the BabSonchart mas
this week advanced to only ~ percF'h'
below normal, true prosperity can
never return without the unfetterlng
OF world commerce. Most students OF
history even advocate free traue' /
'rhev know that our standard or HV-
ino could never have reached its pres
ent high level if the products pecul-
lar to one nation had not been e@-
changed for those peculiar TO an
other. The immediate adoption OF
"free trade" would, of course, orlns
on a period of violent economic re-
adiustments and could not now pe
considered. 1t is, however, goal 70
ward which the consumers, man
turers. and farmers of all n2tlo'S
must work. The proper attack un-
dolibtedly lies along the lines lalo
Hown in the new Canadian traoe
agreement!