Evening star., 1936-11-29
TARIFF BATTLE
SEEN IN CONGRESS
State Dept. Preparing Series
of Reports on Economic
Results of Pacts.
~ the Associated Press.

Preparations for another congress
honal battle over the New Deals re-
ciprocal tariff reduction treaties are
being made at the, State Department.
A series of reports on the economic
consequences of the pacts--the first
Of which has already been released
was described as intended not only
to inform the public on this question,
but also to provide congressional
champions Of the program with ma
terial for debate.
The whole issue of whether the
President shall have authority to
slash the tariff rates in return for
similar concessions by other nations
will go to Congress for re-enactment
vt the coming session.
The reciprocal trade agreement law,
under which treaties have been nego-
hated with IA countries, expires next
June.
Fortified by the huge Democratic
ate, administration leaders expect
congressional approval by comfort
able voting margin. But they look
too, for bitter battle with an ex
tremely vocal minority. the makeup
Of which they expect will cut across
party lines.
Original Passed in 1884.
The original reciprocal tariff bill
was enacted in 1884 after weeks of
debate. 1t authorized the President
to reduce the tariff levies of the 1880
Hawley-Smoot tariff act by as much
as so per cent, by specific arrange
ment with other nations, they making
equivalent reductions in their own
import duties.
The row which the issue raised
originally in Congress was magnified
by the ioudspeakers of the recent
presidential campaign. Gov. Landon
and the Republican platform pledged
Its repeal President Roosevelt spe-
cifically Endorsed it.
Thus. supporters Of the program be-
ieve that the reciprocal tariff was
clearly defined as campaign issue,
and that the Roosevelt landslide pro-
vided an unmistakable public indorse-
nent of the New Deal policy in this
regard.
Underlying the program is the
theory Of foreign trade eXpounded by
Secretary Hull. This, roughly, is
that the vital factor of overseas COM
merce is a high volume of trade in
which neither imports nor exports
necessarily predominate.
Impeded by High Tariffs.
The attainment Of such a volume,
those of the Hull school believed at
the outset of the administration, was
impeded by high tariffs, import
quotas and other evidences Of what
the Secretary termed economic ma
tionalism."
They frowned, too, on the old-fash-
ioned method Of congressional tariff
making and espoused the method of
arriving at import duties by arrange
ment with the other nations of the
world, thereby fixing the imposts at
levels advantageous to the trade of
each.
Here entered what has been the
nnb Of the entire controversy: Be-
ssuse Of numerous pre-existent trade
treaties, the United States could not
Ax lower rates on specific commodi-
ties from Canada, for instance, than
were charged on the same commodi-
tass arriving from other nations.
In other words, tariff reduction
granted by arrangement with one ma
ton was granted to virtually all ma
tions shipping the same commodities
10 the United States. The same was
true Of the tariff concessions granted
= United States by the nations
entering into such treaties.
Gov. Landon made this angle of
tariff concession for one meaning
tariff concessions for all the target
OF vigorous criticism. He approved
of reciprocity. but assailed the meth
ods used by the New Deal.
Marked Recovery" Noted.
The first of the State Department
analyses Of the results of the treaties
noted marked recovery" in busi-
ness with Canada since the treaty
with that country became effective at
the first Of the year. 1t said that for
the first nine months of 1886 exports
10 Canada increased $33.ooo,Oo0. as
compared with the same period Of
1885, while imports from that coun-
Try rose $58,000,000.
Analyses of the results Of treaties
With other nations are in preparation.
Reciprocal trade treaties are In
e4fect with Cuba, Brazil, Haiti, Bel
gium, Colombia, Guatemala, Hon.
duras, Nicaragua. Sweden, Switzer-
land, Canada, Finland, France and
the Netherlands
Preliminary discussions looking to
the negotiation Of treaties with Great
Britain and other nations have al
ready taken place.