Evening star., 1938-11-18

Hawley-Smoot Tariff Law, the
highest in our history, the British
dominions met at Ottawa IN 1852
and put into effect series OF
reprisals which were followed by
other governments, SO that in 1888
the total trade of the world fell to
one of the low points Of all times.
Today Britain and America, as
we'll as Canada, have joined in new
reciprocal trade agreements which,
together with 20 other trade agree
ments previously signed, now cover
about so per cent of the trade OF
the world. This is truly remark
able achievement for which the
Secretary of State. Cordell Hull,
deserves high praise. Without the
approval of President Roosevelt
these treaties could not have been
consummated so it may well be said
that the present administration
without trying the old method OF
general tariff revision has adjusted
rates throughout the world directly
and has affected indirectly the tarlH
duties between other nations.
Benefits Other Nations.
For the concessions granted by
the United States and Great Britain
to each other in tariff duties mean
that other nations will receive
those benefits. too. insofar as par
ticular products are affected. But
this is not so important as the in
ability of Britain or Canada to
grant to other nations any lower
rates or better arrangements than
have been granted to the United
States.
To make trade agreements with
Canada and the United Kingdom
Is to arrange a new system OF trade
relationships with our two best Gus
toners. The United States supplies
we'll over half of Canada's purchases
and buys about 40 per cent OF
Canada's products. Also, the United
Kingdom buys more from the
United States than from any other
country in the world and, likewise,
England finds America one OF her
largest markets for her own goods.
The two new treaties just signed
account for more than third OF the
international trade of the world and
affect many of the British colonies
as we'll as the United Kingdom and
Canada.
Downward Revision.
In such a background, the whole
world may now see an attempt at
gradual revision downward OF tarlf1
barriers. 1t involves maintenance
of the protective principle, to be
sure, but England's high protection
ist policies are modified, just as are
the high tariff duties Of the United
States.
What reciprocity aims to do is to
increase the sum total OF trans
actions between countries, recognlz-
ing, indeed, that when there are
tariff walls goods do not flow across
boundaries and there is economic
stagnation and unemployment. Alb
solute protection for all interests on
both sides of the water was obviously
impossible. In negotiation, lasting
several months as this one did, the
spirit of give and take requires
mutual concessions. Complaints
doubtless will be heard by individual
industries, but trade agreement,
like a tariff law, represents a COM
promise and an adjustment of con-
flicting interests. Rarely can it be
said of a tariff law that every inter-
est was satisfied.
The American farmer, OF course,
should benefit because of the en-
larged market for agriculture made
possible by these treaties and this in
turn should help to develop buying
power at home by the farmers.
What is important is that Britain
and America and Canada were able
to reach an agreement after months
OF tedious discussion and that the
example set to other nations is such
as to encourage the reciprocal princi-
pie everywhere. The official an
nouncement from the Department
of State emphasizes this point as
follows:
Liberal Spirit.
"Since the trade policies of the
United States and of the countries
of the British Empire have wide in
f1uence in the world, the liberal