Milford chronicle., 1937-06-25
ECONOMIC HICHLICHTS
Happenings That Affect Dinner Pals,
Dividend Checks and Tax Bills Of
Every individual. National and
international Problems INSOFAR.
able from Local Welfare.

4
success or failure of one of the mos
fsr-reaching and important innova
tions of the Roosevelt Administra.
tion: The reciprocal tariff, conceiv,
ed and administered by the man who
| is first in rank in the Cabinet anG
is also first, according to most com.
mentators, in ability and public es-
teem-Secretary of State Hull.
AS the magazine Life recently said
In a caption to a brief pictorial his
tory of the Secretary and his De-
partment, "Cordell Hull believes in
foreign trade-as much as possible
with as few restrictions as possible
His tools are reciprocal trade agree
Bments."
Theoretically, reciprocal trade
agreement is a relatively simple
thing. Two or more nations get to-
gether, discuss their desires in the
matter of imports and exports. Ma
tion A. for example, is a major pro-
ducer of heavy machinery for which
1t wishes a foreign outlet. Nation BIS
leading asset is dairy produce, OF
which there is an internal surplus.
Sc a deal is reached whereby Nation
A reduces or eliminates its tariff 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 interests
must be appeased, sectional jealous
les smoothed over, political prob
lens solved. The job calls for the
utmost in doggedness, perseverance
and patience-qualities possessed in
large measure, along with the equal
ly vital quality of a burning SINGER
city, 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 tricol-
or and the stars and stripes. Most
important treaty, also most discuss
ed, is that reached with Canada.
This treaty is important not only
because Canada is bordering ma
ton and one of our best foreign GUS
tomers-it is vital because Canada
is a main link in the chain of the
British Empire.
Not everyone thinks the Canadian
treaty wise. Pacific Northwest lum-
bermen, for instance, fought 1t ag-
gressively, as did American dairy in
terests and liquor producers-the
treaty reduced our tariff bars, to a
varying extent, on Canadian timber.
dairy products, and whiskey. But the
treaty greatly increased our Canad-
ian market for industrial products
notably machinery, and the best eco
nomists think 1t was good deal for
all concerned.
Ever since then, Mr.. Hull and his
assistants have been working stead
lily and quietly to effect an agree
ment between the United Kingdom
and the United States. This is the
treaty that is now being discussed in
London.
Should the treaty be consummated,
one of its major immediate effects
will be 10 open a tremendous Brit
ish market for products of Ameri-
can agriculture. Ultimate effect, 1t is
hoped, will be to smooth the way for
reaching similar agreements with
other major European powers. And
this, in the view of Mr.. Hull. would
mean not only a revival In foreign
trade for all participating nations
il would also mean a long step for
ward in the cause of world peace.
Good customers. it can be reasonab-
y argued, don't fight.
The London conference began in /
will continue well into
Iune. The trade talks going on there
ire largely secret-news is not CIV
m out until decisions have been
cached, weighed, revalued and fin
shed. 1t is the hope of many that
,ut of the conference will come a
major contribution to international
and stability-and to in
amicability. If that hap
,ens, an ex-Ttennessee country law
-er, Cordell Hull by name, will de-
erve the bulk of credit for gigan-
ic task successfully completed.
600
One sure sign of better times is
increased purchasing of goods in the
pure luxury" classification. Busi-
ess Week says that estimates OF
937 retail jewelry sales run as high
s 1875, ,0OO, ,00O-29 per cent above
ast year. First quarter imports OF
ems, mainly diamonds, came to
IA, ,507 900, which is double the total
,r the same period in 1886.
Business is still doing we'll. and is
olding to the high production levels =
cached last winter and spring by
lost lines. Steel is operating at .
lore than 80 per cent of capacity.
pril construction in 81 states came
more than s10S. 100000, and less
| 1t was government building than
,rmerly. Motors are running very :
ose to peak production. ,
Labor troubles are still a big fly
the ointment in some industries.
owever, there has been less trou-
e than was expected-principally !
scause managements have figured /,
more profitable to accept union