The Western news. [volume] (Libby, Mont.) 1933-current, 1938-03-10
SEEN
HEARD
around the
NATIONAL
CAPITAL
By Carter T ie1d *

By Carter T ie1d :

washing lOil.--llEd 1 liEo Oll tiie P40
posed United Kingdom-United States
reciprocal trade agreement are set
to begin here March A. Battle be-
tween business and the State depart
ment will grow hotter as the hear
ings go on. It will center around
the old, old question of free trade
or tariff restrictions.
This is the argument: rs it better
TO protect farmers, manufacturers,
and labor against competition of low
cost products from foreign coun-
tries, or let the low-priced goods in
for the benefit of the public? Who
is most important: producers or the
public?
Any economist can show that the
American public pays annually
many billions of dollars more for
the goods it buys now than it would
pay if prices were lowered by for
eign goods brought in free of duty
But the same economist, If he were
SO minded, could show that free
imports would soon drive agricul-
ture, manufacturing and labor to
bankruptcy First would come gen.
eral chaos, and next would come an
American standard of living as low
as the world average.
These opposing forces are vast
and complicated. Every tariff stu
dent has theory. But Secretary
of State Cordell Hull happens to be
for low tariffs, and he happens to
have reciprocal trade agreement
act passed by congress, and the
will of President Roosevelt to back
him up. So his opinion is what
counts right now. He has made
16 reciprocal agreements with other
countries already, and he's going to
make one with England.
This is the gist of the Hull policy:
Nearly all war is caused by eco
nomic war. After the World war,
the United States helped increase
economic war by raising tariff walls
around itself It must now tear
them, down to promote trade and
peace. This country and England
together transact about one-fourth
OF all the worlds business. An
agreement between the two to in
crease that huge volume of bust
ness will have marked effect on
world trade and world peace. We
cannot remain prosperous in pow
erty-stricken world.
How the Plan Works
Here's how the most-favored ma
ton" plan works. The United States
picks out the country that supplies
the most Of any given import. In
the case of WOODEN goods, it's Eng
land. We cut our import duty on
woolens in return for cut by Eng
land on something we sell her, say
lumber, wheat, or automobiles
Then the new lower tariffs apply
to all other countries supplying less
amounts of the same commodities
or products. 1t makes business
move fast, say the low-tarif men.
But American farmers and man.
ufacturers and labor leaders howl
with pain. While they struggle for
volume and prices to keep going,
the government opens the flood gate
and foreign goods rush in to lower
both. The government says we are
opening up the foreign market in
which you can sell more farm and
factory products, with resulting ben
efits to labor Well have world
wide prosperity in place of pre-
carious isolated prosperity. And
we'll have peace instead of back
breaking taxes for ornaments.
Reciprocal trade treaties are en-
gineered by the State department,
but the work of preparing statistics
and holding hearings is done by the
tariff commission and its reciproc-
ity committee. The commission S
shabby old building is humming.
Bright young men from London lug
bales of records from room to room.
Wooden manufacturers arrive from
New England to make sure their
protests will be heard when hear
ings begin. Meanwhile off to Eng
land goes the astute Ambassador
Joseph r. Kennedy 10 make sure
the foxy British don't trade US any
wooden nickels.
Up to Broadcasters
Two obligations are now placed
squarely on the shoulders of radio
broadcasting, which has been anx-
iously waiting a. definite statement
of policy by the recently reorgan-
ICED federal communications COM
mission. The, law was laid down by
Frank r. McNnch, newly appointed
chairman of the commission, in his
address before the sixteenth annual
convention of the National Assooia-
ton OF Broadcasters. Radio must
steer clear of monopolistc prac-
tees, and it must provide good en-.
tertainment free of moral offense.
Mr.. McNinch is an administration
man, loaned to the communications
commission by the federal power
commission, where his attitude To-
ward public utilities was vel
known. Radio men feared trouble
when he came over To the com
munications commission. Many d
ff,pYf1Apra therefore aprnea hfxy-r1,f-