Evening star., 1937-11-29
Anglo-U. S. Trade Pact
Treaty With Britain Boon to Peace Private Enter.
prise and Free Economy

froGl 80 to Is per cent. And some Of
them, which compete with no impor-
tant American industries whatsoever,
such as cotton lace, pay 90 per cent.
Tariff Brought Slump.
Our own protectionism, expressed
in the tariffs Of 1922 and 1880, awak-
ened the response of British protec-
tionism. Even after the war; when
protectionism was rampant all over
the world, and became one Of the par
ents of the depression and economic
regimentation, the traditional British
prejudice in favor Of free trade fought
for time, stubbornly. But in 1881.
standard and reduced the value of the
pound, 1t began a protectionist policy,
first as an emergency. But, as we our
selves learn, emergency measures tend
to intrench themselves. The British
protectionist policy was given perma-
nence in the Ottawa agreements, con-
cluded in August. 1882, which gave
preference in England to empire prod
ucts and vice versa. At the Ottawa
conference two opinions contended, one
that the barriers to trade should be
lowered between Britain and her do
minions, and the other that tariff bar
riers should be erected around the en-
pire against all outsiders. Mr.. STAN
ley Baldwin supported the former pol
icy, but was defeated.
Ottawa Pact Hurt.
The effect of the Ottawa agreements
on our trade was serious. 1t is true
that We still maintained about the
same percentage in the British mar
ket, but certain things suffered disas-
trously. For example, Great Britain
had purchased $20,0o0.0o0 worth of
American -four and wheat in 1881.
She purchased only a little over
million dollars worth in 1885. The pur-
chase Of hams was cut almost in half,
and that of condensed milk was al
most obliterated. Rice, other cereals,
canned fish and fruit, also suffered.
Tariff policies were not alone to
blame. The drought played a role,
and so did the crop restriction poll
cies of the A. A. A-Which, Incl
dentally the new farm bill wishes
to revive, just as We are about to
make the biggest move to increase
American farm exports Of the whole
administration! But the British policy
Of empire preference certainly hit
the American wheat farmer. Canadian
wheat went into Britain free; Amer
ican had to pay a scent tariff.
The British, I understand, are
willing to go much further in max
ing concessions now than were
dreamed Of several years ago. They
will set aside a large part of the
imperial preferences. Particularly will
they give equal chances to American
wheat in their market. Agricultural
America will profit greatly by the
proposed treaty.
Important Politically.
Elsewhere the problem will be to
make possible substantial increases
in sales of English goods in our mar
kets, and, at the same time, to avoid
injury to well-conducted American
industries. This is not nearly so diff
f1cult as it seems at first sight. We
now levy high duties on many goods
that are not manufactured in Amer
lea at all, or. If manufactured, are
Of completely different quality, or
are produced in small quantities, in
| volying no considerable investment
Of capital or employment of labor.
There are high duties on fine yarns,
mule-spun from Egyptian cotton
which do not compete directly with
American yarns, which are ring
spun. We pay high duties on Eng
lish worsteds and woolens, whose
quality puts them outside Of Ameri-
can competition. We pay a prodi-
gious duty on cotton lace and on
table damask and handkerchief linen,
| which aren't made here at all!
From political viewpoint, the effects
will certainly be important. The news