Evening star., 1940-01-12
Continue Trade Pacts
As Aid 10 Farmer,
Wallace Urges
House Committee Told
End Of Program Would
Be Unfortunate
Continued From First Page.)

behind this program" Mr. Woodruff
considered the program benevolent"
in its application to all nations of
benefits covered in an agreement
with one country-the most-favored-
nation policy.
The Secretary said bilateral
negotiation-the opposite of most
favored nation-contributes to eco
nomic nationalisEl and totalitarian-
ism. He said he expected the one
example of bllateralism in the
American program-the Cuban
agreement - would be eliminated
when we can"
Mr.. Hull, appearing before the
committee for the second successive
day, defended the constitutionality
of the congressional delegation OF
tariff bargaining authority during
his question-and-an answer period with
Representative Gearhart, Exchanges
between the two at one time became
so heated that Representative Nc
Cormack, Democrat, of Massa-
chusetts complained that Mr.. Gear
hart was being unfair.
Hits Lobbyists in Congress.
In the course of his dialogue with
Mr.. Gearhart. Secretary Hull put in
many licks against tariff lobbyists.
Once he said:
II don't mind being deyiled by
lobbyists on the outside. but l am
little disappointed to find so many
meaningless distractions on the in
side" (of Congress-.
Mr.. Wallace observed in his state
ment that industrial interests are
irving to scuttle' the program.
The Secretary of Agriculture, who
sent his statement for insertion in
the committee record before he ap-
peared to read it, condemned the
Smoot- -Hawlev protective tariff OF
1880 as harmful to the farmer. He
said the farmer can be protected by
the trade program and by his new
scheme for parity payments to
farmers-the farmers income certlfl-
cate plan, which has not yet been
approved either by the adminlstra-
ton or by Congress.
Wallace's Arguments.
Mr.. Wallaces arguments in sum-
mary were these:
The rise in agricultural imports
of recent years is not due to the
duty lowering of the trade agree
ments.
He knows of no case where duty
reduction has seriously lnconven-
fenced American agricultural indus
try.
Despite statements that the pro-
gram hurts the cattle-raiser, the
cattle-grower today is getting par
ity price for his product
There is no foundation for loose
talk" that agricultural industries are
singled out for sacrifice under the
trade program. In fact, agricul-
tural imports declined in 1889
from 1934-5 and are we'll below the
annual average of the l920s.
The programs worth is shown by
the fact that the trend of agricul-
tural exports is greatest toward
those countries with which we have
agreements.
Rise in Purchasing Power.
Improved foreign markets for in
dustrial goods brought by the pro-
gram aid the farmer by enhancing
the industrial purchasing power,
Mr. Wallace granted that world
conditions-trends toward total
itarianism and insistence on national
self sufficiency-havek kept the agree
ments program from advancing COM
merce so far as the programs
hackers hoped. He said:
1T is my feeling that little prog
ress in the way of trade agreement
negotiations can be expected in Eu-
rope during the continuation of the
European war. I do feel that the
trade agreements program can op-
crate usefully in Latin American
countries, that it will help to build
up feeling of solidarity in the New
World, and that in contributing to
such a feeling of solidarity it is val
liable peace insurance.
Il am strongly in favor OF closer
relations between the countries of
the Western Hemisphere, but 1 do
not believe that even the Western
Hemisphere as whole can expect to
remain unaffected by chaos in the
rest of the world.
Postwar Reconstruction.
THE United States and its Latin
American neighbors should, in their
own interests, look forward to posi-
tive collaboration in the reconstruc-
ton of international economic rela-
tions after the war is over. It seems
to me that the trade agreements
program, conducted much along the
line that it mas been conducted in
the last six years. together with
special international agreements in
the case of such commodities as cot
ton and wheat, can be an extremely
important factor in the economic re-
construction of the postwar world"
When Mr.. Hull was answering
questions, Mr.. Gearhart objected
to provision in the trade agree
ment with Colombia which ex-
empted goods imported into the
United States under the agreement
from local taxation. Mr.. Gearhart
considered this an unconstitutional
and unauthorized invasion of local
authority. Mr. Hull said the pro-
vision was inserted to assure equal
treatment for the Colombian goods
and that it was valid
Mr.. Gearhart also felt the admin
istration had made an arrogant
assumption of legislative authority"
in agreeing in several trade negotia-
tions to bind articles on the free
list for the duration of the agree
ments.
The Gearhart view was that this
deprived Congress of its right to i'm
pose tariffs on those articles at any
time it wished.
Called Contitutional.
Mr.. Hull said the ee-list-gind-
Ing is bargaining aid and a con-
stitutional one. During this COL