Evening star., 1940-01-11
Of Secretary u Defense Of Reciprocal Trade Agreements

income had declined from 112 bill
lion dollars to ~ billion dollars. BY
1898, after four years Of the trade
agreements program, it had risen to
76 billions, excluding benefit pay
ments. Does this indicate injury?
The most reckless claims have
been made in connection with the
cattle and the dairy industries. The
income Of the cattle industry, which
had fallen from $1,495 ,OOO, 900 in
1929 to $621 900 900 in 1882, rose to
$1,144, 10000 in 1898. The income !
Of the dairy industry, which had
fallen from 1884, 900 900 in 1929 to
1891 900 900 in 1882, rose to $685.
600, 900 in 1898. Does this indicate
ruin?
40 Per Cent Rise in Farm
Purchasing Power.
1t is sometimes asserted that such
increases in income do not take into
account the devaluation of the dol
lar. But changes in the purchasing
power Of the dollar are, of course,
measured by prices. Making due
allowance for price changes, the
farm income in 1888 represented at
least 40 per cent more purchasing
power than did the farm income in
1892.
I do not claim that the recovery
OF farm income or the rise of the
national income in general from
40 billions in 1882 to GA billions
in 1888 and 68.5 billions in 1899
was wholly attributable to i'm
provement in our foreign trade
which has occurred under the trade /
agreements program; numerous in
fluences combined to bring this
about. But I do maintain that the
increase of our exports has been a
factor of great importance in this
connection, just as the catastrophe
decline of trade under the Hawley-
Smoot tariff had unquestionably
contributed powerfully to the gen.
eral economic collapse of the early
30s.
Some light is shed on the present
situation by the fact that many OF
those who are now insisting upon
advising American agriculture in
opposition to the reciprocal trade
policy. which has demonstrated its
benefits to agriculture, were among
the identical persons who advised
the farmers in 1880 that the Smoot-
Hawley Act would bring them per-
manent prosperity. whereas under
such advice the farmers of this
Nation were piloted straight into
unprecedented bankruptcy. I dare
say that the farmers will think
twice before accepting a second
time such reckless advice, supported
oy still more reckless statistics.
v.
The reason why no evidence of
material injury to our farmers or
10 any other group of producers,
resulting from the operation of the |
trade-agreements program, can be
adduced is that no such injury has,
in fact, occurred.
During the period of operation of
the trade-agreements program, in
creaSes have occurred in both our
exports and our imports. Taking
the average figures for the years
1884 and 1885 and the years 1897
and 1888, we find that while our
exports rose by one billion dollars,
our imports increased by 67l millions.
In 1887 and 1888, the excess of ex-
ports over imports averaged 700 mil
lion dollars. In 1899. the picture has
been approximately the same.
The Heterogeneous program
has expanded markets at home and
abroad for all groups of producers.
This result has been due primarily
to the method employed in carrying
out the program.
am sure that do not need to
describe that method in detail. 1t
has been In operation for five and
one-half years. Its results are en-
bodied In the reciprocal trade agree
ments negotiated to date. Let me
recall to your minds it's main
features.
An inter-departmental organiza-
ton. consisting of experienced and
well-informed practical experts of
the Departments of State, Agricul-
ture, Treasury, and Commerce. and
Of the Tariff Commission, handles
the preparation and negotiation OF
the trade agreements. All interested
parties are given ample opportunity
to present their views, orally or in
writing, with respect to every phase
of the program. No decision is
reached with regard to action on any
particular customs duty without an
extended and profound study Of all
pertinent data, both those assembled
by the inter-departmentaf organiza-
ton itself and those presented to
the organization by the interested
parties-the producers, the con-
sumers, and the merchandizers of
the commodity involved, and any
one else who feels that he or she
has an interest in the proceedings.
The results are reviewed by the
responsible heads of the departments
of Government participating in the
work and, finally, by the President.
Operation Of Agreements !
Under Constant Review.
The work of the inter-depart-
mental organization in connection
with particular agreement does not
cease with the proclamation Of the
agreement. The operation Of the
agreement is under constant review
in every phase. The inter-depart-
mental organization is always ready
to receive representations from the
interested parties regarding any
aspect of the agreement. 1t is pre-
pared to act whenever new circum-
stances warrant.
I invite any person to show
single instance of general tariff re-
adjustment either upward or down.
ward, in the entire fiscal history
of the Nation, wherein there has been
exercised as much impartianty, care