The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1940-03-07

Through our favored nation provis-
ions in administering these so-called
Reciprocal Trade Treaties, all these
countries that have consummated
treaties with us and in addition there
to devalued their Respective curren
cies, have given Uncle Sam lot of
blows below the belt.
Now this is one Of the most out
standing reasons why these treaties
should be approved by the Senate. The
State Department doesn't want to in
woke the prerogatives given for in
stance in Article 1S of the British
Treaty or the similar provision con-
tanned in the French Treaty. No, not
any more than it wants to see the
| Treasury Department apply the pro-
visions of the Anti-Dumping Act.
have read and heara~a, lot about
the present Reciprocal Treaty pro-
gram as being the most scientific
method yet devised for the administra-
tion of tariff. Well, if these people
mean scientific reduction of tariff un-
der the guise of reciprocity them |
agree with them. But, as to scientific
administration of tariff, that is horse
of another color.
How can we have anything ap-
preaching "scientific" tariff admins
tration when we have to compete with
various nations of the world wherein
the wage rates run all the way from
one-half down Ito One-tenth of the
wage rates prevailing in our country ?
Here is the great stumbling block to
not alone scientific tariff adninistra-
tion in our country under the present
system of appraisement on the basis
of foreign value, but also great bar
rier to equitable treatment of all ma
tions. The present Reciprocal Treaty
program does not correct this defici-
ency. 1t only aggravates it.
Let me make myself clear. For in
stance, we place rate of say 500 OF
a given commodity based on the cost
of production in England because Eng.
land is the chief source of supply OF
the commodity in question. This same
rate is given to all other countries
| am now speaking Of the tariff law
itself, and not the treaties. Shortly
after the law is passed and the new
rates are announced, Japan, where the
cost of producing the same commodit!
, will be about one-fourth the production
costs in England all of sudden be-
gins producing this commodity ant
exports same to the United States. BY
virtue Of her lower production costs
we are practically subsidizing her be
cause she is able to undersell the Eng
lish exporter who has enjoyed the
fruits of our markets for years, al
because of the fact that the 500 rate
which may be moderately high for the
English manufacturer is positively NJ
hurdle at all for the japanese manu-
, facturer.
| have seen world trade make ter
rife switch in the past fifteen years
Japan, which before the World Wal
was an agricultural nation, today i!
the worlds greatest competitor. Ever
5 with the present war in China, which
must have taken a lot of her MAJ
power out of the industrial centers
she is nevertheless sufficiently poten
to shake the price structure of thu
world. Since the element of prof
rules the entire economy of the world
: we have here the real crux, or cause
Of the breakdown in world trade
Tariffs and embargoes did not have
E any thing to do with it. That is {
pipe dream.
Take rayon, for instance. Not S,
long ago it was first discovered. L
was looked upon as a most severe
blow to Japan's silk industry. Wha
, did she do? Did she take it lying
. down? She did not-she went into the
rayon business herself and today she
leads the world in rayon production.
The League Of Nations published al
: interesting chart about the recover!
Of the leading nations of the world {
few years ago. Let me read it to you