Evening star., 1936-12-12

ufacturerS has gs=:
simply requested
here the terms Of |.EA 4 zI|I
the Republican n,
national platform
which was repudiated at the polls.
Attention was called by this corre-
spondent before and after the last Re-
publican National Convention to the
dangers which this plank held with
respect to independent voters.
There is, of course. always support
for the persons or institutions who
stand by their convictions, but the
National Association of Manufacture
ers is not supposed to be, at the mo-
ment. a political instrumentality but
q vehicle for cooperation between
Government and business.
Plank Headed for Dead End.
Such a plank on the tariff which
was included in the declaration of
principles" will get exactly nowhere
with the Roosevelt regime or with
Congress, because it would attempt to
upset the whole structure Of the Hull
reciprocity treaties, which have be-
come ingrained in the foreign policy
OF the United States and have been
accepted in principle by the leading
nations of the world. The declara-
ton by the National Association OF
Manufacturers says it has favored
reciprocal tariff agreements" but
adds:
I'VE believe such agreements should
be negotiated with specific countries
with corresponding benefits to both
the United States and the foreign
country involved and that such agree
ments should be ratified by the Senate.
I'VE believe continuance of the un-
conditional most-favored-natio pro-
vision is inconsistent with the theory
of reciprocal truth. They extend the
benefits of reciprocal tariff provisions
to those not parties to the agree
ments, giving the benefits and getting
nothing in return"
Seen as UnwOrkable.
The trouble with the foregoing,
from the New Deal viewpoint, is that
such a plank is simply unworkable.
For years the United States Govern
ment has been at the mercy of the
more flexible governments of the world
who could overnight make tariff
changes. The system of delegating
within limits the tariff-making power
to the Executive in our own country
has been forced upon us by the con-
ditions abroad, and to go back to the
log rolling between groups and sec
tions, which would be inevitable if
the trade agreements we're to be SUBJ
mitted to the Senate for ratification,
would merely mean to turn back the
clock for generations.
AS for America getting nothing in
RETURN" this is fallacy, according
to the administrations argument, be-
cause other nations cannot make any
more favorable rates to third power
than they make with America. This
merely means that, If France. for in
stance, which has a reciprocal agree
ment with the United States, should
ever make a reciprocal agreement with
Belgium or Germany or any other
country and should grant some trade
concessions, every one of those con-
cessions must automatically be granted
to the exporters from the United
States.
Consultation May Be Provided.
There is, to be sure, rightful criti-
cism which the National Association
of Manufacturers makes as to the
opportunities for American business
men to be consulted when tariff duties
affecting them are under consideration
by the State Department, and some
Improvements in the negotiating
process may be expected. But to
f1aunt before the New Deal an abso-
lutte contradiction of the reciprocal
tariff policy of Secretary Hull and
to propose now, in effect, the repudi-
ated system of tariff making which
gave us the Hawley-Smoot law is to
be as tactless as business men could
possibly be.
This, at any rate, is the reaction
in administration quarters and pre-
sumably the National Association of
Manufacturers wanted to produce
favorable impression on Congress and
the Government. To the extent that
the declaration of principles"
breathed a new spirit of profession,
1t was hailed as step in the right
direction, but the tariff plank illus-
trated more than anything else the
diversity of interests, indeed the con-
flict of purpose, which often influ-
ences the platforms of business groups
as well as political bodies. The docu-
ment pledges industry's co-opera-
ton with Government in the promo
ton of economic and social progress, :"
but does not say word as to how
the low income groups, who welded
the balance of power in the last elec-
ton, are to have their pay envelopes
increased or how the unemployed are
to be given jobs.
Broad Formula Lacking.
The New Deal takes the "declara-
ton of principles" as being good
beginning, perhaps, in setting down
in black and white some basic truths,
but industry has not yet come for
ward with a broad formula for ifn-
proved wages and increased employ
ment, nor even with a specific an
alysis Of the barriers which today
retard the growth of employment.
Until business organizations can re-
veal q national plan" that give,
some hope of accomplishing the OBJ
jectives on which both Government
and business are now agreed. 1t is
most likely that, for some time to
come, industry and business will be
occupied with negative statements
which seek primarily to curtail the
area of controlled economy" marked
out by the New Deal and its brain
trlsters.