Evening star., 1936-07-26
BY CRESTON b. MULLINS.

For more than two years the Roose-
welt administration has been engaged
in a program of recovery through
stimulation of foreign commerce by
means of tariff reductions. American
business. agriculture and industry,
according to available figures, are
already feeling the effects of this
policy, major issue in the presidential
campaign.
Republicans at Cleveland declared
unequivocally for repeal Of the re-
ciprocal trade act of 1884, under which
the State Department has concluded
IA agreements with foreign countries
for mutual reduction of tariffs. Their
claim is that the American farmer
has paid heavily in competition from
importations of foreign foodstufts.
The Democrats replied at Philadel-
phia by reafirming the reciprocal
trade principle as a canon of the
New Deal hailing the agreements as
a stimulus to American industry and
a source of jobs for American labor
and farmers.
Commerce Flow Is Objective.
The New Deal trade program Is
simply the lowering of American
tariffs in return for similar conces-
sions on the part Of other nations
and a mutual pledge Of equality OF
treatment. Its objectives are:
/. To break the log jam in inter
national trade by leading in removal
of barriers to commerce;
2. To reopen foreign markets for
the products of American industry
and agriculture:
3. To facilitate the importation OF
raw materials and partially manufac-
tured goods in order to encourage en-
ployment of American labor in the
final fabrication of these goods.
The first is being achieved grad
ually, as other trading nations hesi-
tate TO forsake direct barter for un-
restricted exchange of goods and
services. That the second and third
are being realized each day is
suggested, If not finally demonstrated,
from the progress of American export
and import trade the past two years.
That the United States has had to
pay for this by opening its markets
to foreign competitive products also
is clear. But the increased value OF
competitive" imports does not ap-
proach the value of increased exports.
It was for these three purposes
that the reciprocal trade act was
passed by Congress and approved by
the President, June IL, 1884, amending
the Hawley -Smoot tariff act OF 1880
by addition of authorization for:
1. Negotiation by the President Of
trade agreements with foreign gov
ernments; and
2. Withdrawal from countries dis
eliminating against American COM
merce of tariff reductions provided
for in various trade agreements nego-
tiated under this act.
Reductions Limited.
The 1884 act reafflrmed the Presi-
dents power-granted in the 1880
tariff act--to raise or lower duties
as much as SO per cent, and 1t was
under this authorization that the
tariff changes in reciprocal agree
ments have been effected.
The Presidents authority to con-
clude reciprocal agreements was given
for three years; thus, he has one
year more in which to carry out the
remainder Of negotiations, intention
for which has been declared.
The aims of the legislation are ex-
pounded at the head of the act:
"(a) For the purpose of expanding
foreign markets for the products OF
the United States Gas q means OF
assisting in the present emergency in
restoring the American standard OF
living, in overcoming domestic unem-
ployment and the present economic
depression, in increasing the purchas-
ing power Of the American public. and
in establishing and maintaining q
better relationship among various
branches of American agriculture, in
dustry, mining and commerce) by
regulating the admission Of foreign
goods into the United States In ac-
cc-esyne with the characteristics and