The Coolidge examiner., 1937-06-03
Conferences Are
Being Held That
Nav Rule industry

IN economic periodicals, may vital
" affect world industry Further,
these conferences may mark the
eventual success for failure Of one
of the most farreachirg and i'm
portant innovations of the Roosevelt
Administration: The reciprocal
tariff, conceived and administered
by the man who is first in rank in
the Cabinet and is also first, accord
ing to most commentators, in ability
and public esteem-Secretary of
State Hull.
AS the magazine Life recently
said in a caption to hrief pictorial
history of the Secretary and his
Department, "Cordell Hull believes
in foreign trade--as much as pos
sible with as few restrictions as
possible His tools are reciprocal
trade agreements"
theoretically, reciprocal trade
agreement is relatively simple
thing. Two or more nations get
together, discuss their desires in
the matter of imports and exports.
Nation A, for example, is a major
producer of heavy machinery for
which it wishes a foreign outlet.
Nation BIS leading asset is dairy
produce, of which there is an in
ternal surplus. So a deal is reached
whereby Nation A reduces or eliml-
mates it's tariffs on farm produce.
and Nation B does the same thing
for heavy machinery. Manufacture
booms in Nation A, and agriculture
prospers in Nation B, due to the new
foreign consumption.
In practice, of course, reciprocal
tariffs are extremely difficult docu-
ments to frame. Conflicting inter-
ests must be appeased, sectional
iealousies smoothed over, political
problems solved. The job calls for
the utmost in doggedness, per-
severance and patience-jualities
possessed in large measure, along
with the equally vital quality of a
burning sincerity, by Secretary
Hull.
So far. reciprocal treaties have
been made with 16 countries, OF
which a considerable number are
South American republics One i'm
portant treaty is that reached with
France, which has resulted in an
upsurge in trade between the tri.
color and the stars and stripes.
Most important treaty. also most
discussed, is that reached with
Canada. This treaty is important
not only because Canada is
bord ering nation and one OF our best
foreign customers-it is vital be-
cause Canada is main link In
the chain of the British Empire.
Not everyone thinks the Canadian
treaty wise. Pacific Southwest
lumbermen, for instance, fought it
aggressively, as did American
dairy interests and liquor producers
the treaty reduced our tariff
bars, to varying extent, on
Canadian timber, dairy products
and whiskey. But the treaty
greatly increased our Canadian mar
ket for industrial products, notably
machinery, and the best economists
think il was a good deal for all con-
cerned.
Ever since then, Mr.. Hull and his
assistants have been working
steadily and quietly to effect an
agreement between the United
Kingdom and the United States.
This is the treaty that is now be-
ing discussed in London.
Should the treaty be conSummat-
ed, one of it's major immediate ef-
fects will be to open a tremendous
British market for products OF
American agriculture. Ultimate ef-
feet, it is hoped, will be to smooth
the way for reaching similar agree
ments with other major European
powers. And this, in the view OF
Mr.. Hull, would mean not only re-
vival in foreign trade for all partici-
pating nations-it would also mean
a long step forward in the cause of
world peace. Good customers, it can
be reasonably argued, don't fight.
The London conference began in
mid-May, will continue well into
June. The trade talks going on
there are largely secret-news is
not given out until decisions have
been reached, weighed, revalued
and finished. 1t is the hope of many
that out of the conference will come
a major contribution to interna-
tional prosperity and stability-and
to international amicability. If that