Evening star., 1940-01-11
Hull
Continued From First Page.)

Continued From First Page)
know how to draw inferences when
you mention the 1920s.
Secretary HULL hope you won't
be sensitive.
Mr.. Hull argued that much of the
country's economic difficulty of the
early 1905 was due to the Smoot-
Hawley high protective tariff of the
Hoover administration.
The agreements program can serve
as a large influence on the readjust.
ment of the worlds economy after
the European war closes, Secretary
Hull said. Only peace can near
real prosperity, he urged, and nov
while hoStilities are in progress, il
is necessary for us to defend oul
export trade from the inroads Of
wartime controls"
And when peace comes, he argued
the free trade influence of the agree
ments will help preserve the peace
VuILLCu ny hAuISOu.
Representative Knutson belittled
the peace-bringing virtue of the
agreements by asking how many ma
tions were at war in 1884 none) when
the program was first authorized by
Congress and how many are at
war today. The Secretary granted
that although many nations are at
war now. he felt the program has
limited the number of belligerents
He declared that with greater CO.
operation at home and abroad in
the development of the program
there would have been even fewer
belligerents.
Mr.. Knutson countered face
tiously:
Il can't recall any wars between
the enactment of the Fordney-
McCumber tariff Q92D and the pas
sage of the Trade Agreements Act.
But since then-]ook, the italian
war with Ethiopia, the war between
China and Japan-and, oh, yes, the
miniature war between England and
France and Germany"
Mr. Knutson then returned to the
domestic front:
How do you account, Mr.. Secre-
tary, for the fact that during the
five and a half years of this program
we have had in this country one
emergency after another?"
Secretary Hull-You are respon-
tible for that
Mr.. Knutson-No, the President
is
Sees Lower Duties Desirable.
Mr.. Knutson picked up Secretary
Hull's argument that the rise OF
farm income from AZ billions in 1882
to 7.6 billions in 1888, declaring the
farmer income had risen to 63 bill
lions by 1884, before the agreements
were effective. He also recalled that
in his 1882 campaign, Mr.. Roosevelt
said he would oppose any reductions
in agricultural tariffs, and declared
that almost all agricultural duties
have been reduced except the duty
on butter.
"The world has moved long way
since 1882" the Secretary said, "al-
though it is a year I never will for
get"
He argued that the changes in
world economy since that year have
made it desirable to lower farm
duties He observed that since 1887
the price of cattle had doubled.
I'm a world headed steadily ir
the direction of nationalism, with
all its attendant disasters for the
well-being of our country and o1
all countries, we have taken a po.
sition of leadership in an effort te
reverse this fatal trend" Secretary
Hull said. The instrument of re.
versal, he made clear, is the trade.
agreement program, with its most
favored-nation policy-which means
that the benefits accorded one
country are open to almost all.
Sees Farmers Aided.
Secretary Hull said the agree
ments aided the farmers, whose
spokesmen have been the chief op.
ponents of the agreements. He
pointed out that the agreements
were authorized in 1884 to counter
act what He considers the economic
harm that came to the United
States and the world as a result
of the 1880 high protective Smoot-
Hawley tariff. He emphasized that
the program is democratic tech
nique:
"The trade agreements program
has served us well during a period
of national emergency. It has en-
abled us to expand our foreign
trade, without introducing far.
reaching governmental controls
such as have been employed in
many other countries"
The Hull statement was the first
step in what is expected to be q
sharp congressional battle during
the new session over the question
of whether the Trade Agreement Act
shall be continued for another two
years beyond June IL, when the
administrations authority to make
the agreements expires.
The prospects of House passage
advanced when Representative 3D.
land, Democrat, of Pennsylvania, a
member of the Ways and Means
Committee and the House whip
said he was for the program "100
per cent" Representative Tread
way, Republican, of Massachusetts,
the ranking minority member OF
the committee. expects potent op-
position to develop. The chief fight
is expected to come in the Senate.
Howard I. Young of st. Louis
chairman Of the National Associa-
tion Sf Manufacturers Tariff Com
mittee, in q letter to the Ways and
Means Committee today said that
the 1899 Congress Of American In