Evening star., 1937-06-22
BL FRANCIS P. CARAVAN.

NEW YORK, June % (NAEAD.-
In the preceding article l outlined
three logically successive steps which,
taken at once, may prevent a national
debacle. From an adequate Govern
ment accounting system, a compulsory
disclosure of foreign owned properties
In the United States and collection of
our war debts, there follows the need
for protecting existing industries and
the development of new domestic
markets for goods and raw materials.
1t has been shown statistically that
our foreign trade is gone. The Secre-
tary Of States reciprocal trade agree
ments have plunged us farther into
the hole. They we're aptly character
lied June in resolution passed by
British protectionists, representing the
Empire Industries Association. as
some illusory project for the revival
OF economic internationalism."
Invisible Trade.
Yet I have no faith whatever in
the kind of protection that is af-
forded by the usual type of high tariff
Who knows, for example, whether we
have any protection at the moment
against the influx of German-made
goods? Here is the way the blocked
mark system works:
An American exporter sells a bill of
goods to a German concern. But the
German government will not permit
the purchaser to remit to the hmeri-
can shipper. The sum is set aside and
can be used only for the purchase of
German goods, chiefly for export. But
the American is hard pressed and
doesn't happen to need German wares.
So he shaves his claim selling his
title to the blocked marks fcr half or
less than half of their value. An
American or other importer of Ger
man goods buys the blocked marks,
pays for his purchases. meets the Gus
toms duties and yet is able to offer
the forelgn-made competitive goods
for less than the cost of manufactur
IN his own country.
That racket, with variations, is
worldwide. Domestic currencies and
special export cuTencies exist side
by side. Special rebates and secret
understandings, practiced everywhere
save by the United States. are in part
responsible for our staggering un-
favorable trade balance. Who knows
what tariff, if any. the farmer has
now as the imports fix the prices for
his new crops?
Adjusted Tariff Answer.
Is there a way of beating that
game? I think the answer lies in an
adjusted tariff, based on national
interest and not on the narrow. per-
sonal, selfish interest of a particular
industry, as hitherto.
l should like to see at the earliest
possible moment a duly constituted
Government agency set to guard the
door of our customs house. 1t would
be the duty and function of that
agency to inquire minutely into the
method Of production or manufacture
of every commodity attempting to
enter this country, as well as exchange
conditions.
On those goods made under condi-
tions comparable to those existing in
the United States, by workers receiving
approximately the same wages, trans
lated into purchasing power, I would
impose no duty at all.
But on the grain seized from COL
lectivized farms, on steel products
made by Indian Workmen at less than
8 cents an hour, on box matches
manufactured by japanese children
at tWo-fifthS of a cent an hour,
suggest tariffs so great that when they
are paid the selling price for the
commodity must be at least as high as
that of the domestic article.
There Is still another benefit to be
gained by 50 simple a procedure.