Evening star., 1940-01-12


tion bv the Sen David Lawrence.
ate.
Mr., Hull enters by his first plea
before the Ways and Means Com
mittee a controversy that is COM
plicated and technical because 1t
relates to thousands of items OF
tariff rates. His broad thesis has
been that reciprocity is better
way to make tariff arrangements
with foreign powers than America S
method of logrolling in Congress.
The Secretary contends, moreover,
that in working toward general
reduction of tariff barriers, the
trend is away from economic frlc-
ton and economic nationallSm and
toward international cooperation.
The viewpoint of Mr. Hull has
found support inside the Republican
as we'll as the Democratic party, but
it also has encountered opposition
In both. 1t is truly non-partlsan
issue though. to be sure, before the
present fight is over, most OF the
Republicans will be lined up against
renewal of the power of negotiation
sought by the Department Of State.
Divided on Results.
The record of reciprocal agree
ments is the subject of much de-
tailed discussion-the Department
Of State claiming that trade on the
whole has been increased, whereas
opponents have pointed to specific
industries where there have been
adverse effects.
Naturally, all the interests and
businesses which have been faced
with a certain amount of foreign
competition are anxious to see the
trade agreement power terminated,
while persons and interests anxious
to see foreign trade enlarged are
urging the further making OF re-
ciprocity agreements.
Insistence that reciprocity is a
good thing in principle, but that all
trade agreements must be ratified
by the Senate because they are
treaties, is the principal argument
of those who oppose Mr.. Hull's rec
ommendation for extension of the
negotiating power 1t is contended,
for instance, that the Trade Agree
ment Act is itself unconstitutional,
though the issue has never been
specifically passed upon by the
Supreme Court. Certainly the power
to make tariff duties, when dele
gated by Congress to a tariff COM
mission or board, has been upheld
as constitutional in what are known
as the flexible tariff" cases, and
there never has been any question
about the power of the Executive
to make agreements by diplomatic
notes or conventions. The famous
Hay "open-door" policy in the Far
East, which contained an exchange
of notes with various foreign gov
ernments on trade opportunities in
China, was never submitted to the
Senate for ratification by the Re-
publican administration which nego-
tiated it, and there have been many
other conspicuous cases of the same
thing.
If it is within the power of Con-
gress to give the Executive, as it
gave to President Coolidge, the right
to change tariff duties within certain
limits, it will be asserted that Con-
gress can delegate the same discre-
ton to the Department of State, or
to the President, who can act on
recommendation of the Secretary of
State.
Provides Quick Action.
Foreign governments have greater
f7eXlbllity than does the American
Government because under parlia-
mentary systems changes in tariff
rates can be made overnight. The
present movement for delegating
power to the Department of State
grew out of the uncertain conditions
In world commerce, changes in cur
rency and exchange rates which
happen almost overnight and the
desire to put America on basis that
would permit instant action instead
of long delays while waiting for Con-
gress to reconvene.
But the real opposition to the
trade agreement power is not on
constitutional grounds. 1t is eco
nomic, and the effort to compel the
Secretary of State to submit his
future agreements to ratification by
the Senate would, if successful,
mean the end of trade agreements
OF the reciprocal type that alter
tariff duties. For treaties require a
two-thirds vote Of the Senate and
1t would be virtually impossible on
q tariff issue to get two thirds. It
would be much easier to revise a
tariff law, because it requires only
q majority of each house and the
President has the power of veto.
1t would be next to impossible for
. trade agreement to be negotiated
with two thirds of the Senate and
local political considerations to be
satisfied, and foreign governments
10 be handled with delicacy. The