Evening star., 1936-07-19
Facts on Trade Treaties.

The principle of reciprocal trade treaties
as an instrument for increasing foreign
trade is one of the clearly defined issues
Of the campaign. The Republican plat
form unequivocally demands repeal of
the trade treaty amendments to the tariff
act. The Democrats as unequivocally re-
iterate their faith in the effectiveness
OF such instruments to improve and to
build up shattered foreign trade. 1t
would be in the public interest if the
debate of this issue could be conducted
on a factual basis-the facts being the
actual results under trade treaties nego-
>tiated
Here enters the difficulty of getting
the facts. Only six of the fourteen
treaties thus far negotiated have been
in effect for more than six months. Some
interesting results have been obtained
But the results are in no manner con-
that the treaties have produced greater
percentage of gain in imports than in
exports. But while the increase in both
exports and imports continues. the in
crease in imports for the first four
months of this year was less than the
corresponding increase last year. The
treaties will be attacked largely on the
: ground that they lower the tariff bar
riers to permit the importation of COM
petitive agricultural products. This in
wolves the dispute whether the rather
large increase in competitive agricul-
tural imports has been due principally
to drought and crop restrictive measures
or to the treaties themselves. 1t involves
the additional argument whether the
losses to protected interests have been
offset by the gains to others.
At the outset of his reply to the Re-
publican critics of the treaties, Secre-
tary Hull presents the argument that
they we're created as a practical agency"
to deal with an unprecedented depres-
sion emergency" From that point on he
quickly assumes the offensive, attribut-
ing to his critics malicious misrepre-
6eIlGdllOll Vi GilC ldSto ASOoAeAAA eA-S
suits of the treaties so far and deliver
= ing several thrusts in the form OF sta
tistics bearing on the gains to American
agriculture under the New Deal. Some
OF the gains, incidentally, have no bear
ing on the effect, one way or another OF
the treaties. They are mentioned merely
to bolster the Secretary's argument that
the same guardians and savlors' OF
American agriculture who let the farm-
ers down to the low point OF 1882 are
now seeking to gain control OF ther
destinies again in 1896.
The emergency nature OF the treatles
Is indicated by the fact that the PreSl-
dent was given only three years IN whlcn
to complete their negotiation. But the
treaties are not regarded by Secretary
Hull, or others who agree with MIN, as
emergent in the sense of representing
temporary expedient. The treaty issue
as between the Republicans and Demo-
Gratis is not their character as emergency
expedients, but as declarations OF
fundamental tariff policy.
Governor Landon, if he follows George
Peek's views, will probably base part
of his attack on the treaties on the TACT
that tariff concessions to treaty nation
apply likewise under the most-favored-
nation clause. to other nations And 1t
has already been shown that imports
from non-treaty nations, resulting from
lowered tariffs. have exceeded IN some
cases the imports from the treaty nations
for whose benefit the tariff concessions
were made. But Governor Landcn should
be prepared to show that these increased
imports have in their competitive effect
on American industry or agriculture on
get the advantages gained through the
creation of new markets abroad for
American products.