Evening star., 1940-02-26
HuITs Statement
Secretary Of State Presents Arguments
For Trade Poets Before Senate Committee

rocal trade agreements before the
Senate Finance Committee today:
Mr.. Chairman, members Of the
Finance Committee: The hearings
which begin today before your COM
mittee relate to q piece Of legisla-
ton which Is Of extraordinary i'm
portance to our Nation at this time.
It has q direct and vital bearing on
our domestic economic prosperity
and on world peace.
When I appeared before the Com
mittee on Ways and Means, I pre-
sented a formal statement dealing
comprehensively with all important
phases of the problem, and I shall
not now take your time going over
the ground thus already covered.
However, I should like to make some
additional remarks, especially with
reference to some points which were
raised in recent discussions.
I am glad to note that there is
now scarcely any inclination any
where to question the proposition
that adequate foreign trade is in
dispensable to full and stable pros
perity for our Nation. which re-
quires the fullest possible develop
ment Of both the domestic and the
foreign markets. There is over
whelming evidence to show that,
when our exports shrink seriously,
the country's production, trade,
prices, values, employment. incomes,
ond &horafora ,,,,rct q cir,r v%cxyor
are adversely affected. This is true
of agriculture. manufacturing in
dustry, transportation, mining and
all other phases of our economic
life. There is also overwhelming
evidence to show that all these de-
termining factors of our national
prosperity are favorably affected by
an expansion of exports. We are
living in period in which our vast
home market must be supplemented
by foreign markets for our ever
increasing surpluses. Satisfactory
disposition of such surplus produc-
ton has become an indispensable
factor in our permanent progress
and our sound and balanced pros
perity. OF equal significance Is the
growing realization in our country
of the close connection between
trade and peace.
Says World Trade
Had Dropped Enormously"
Let me recall briefly the back
ground against which the trade
agreements program was enacted by
the Congress six years ago. Trade
between countries, involving the
bread and butter of millions and
affecting the political stability and
contentment of millions, declined
enormously. The peoples of the
world had traded with each other in
1929 to the amount of SO billion dol
lars. BY 1882 this trade had fallen
to ~ billions. This meant that
millions of workmen were out of
work and their families were in des-
perate need; millions of farmers and
producers Of other raw materials
were unable to sell the results of
their labor except at a miserable
price. Governments were compelled
to make enormous relief expendi-
lures. They resorted to any type OF
measure which promised to relieve
this unemployment and distress ir-
respective Of its effects on the rest
of the world. In other words. the
background Of circumstances lead
ing to the enactment Of the trade
agreements program was most dis
turbing and rapid falling apart Of
the commercial and financial struc-
ture of the world, caused in large
measure by the ever rising barriers
to trade raised by all countries, in
which course our own Nation was,
unfortunately, an outstanding leader.
All countries were stricken, and
few more seriously than the United
States. Within three years, our ex-
ports declined from So billion dol
lars to 1.6 billions. This loss of more
than 3.5 billion dollars worth. of ex-
port business spelled havoc and
tragedy throughout the land. OF
itself, it would have been enough to
throw out of gear the whole ma
chinery of our national economic
life. Combined with other factors,
1t brought this country face to face
with the gravest economic emer-
gency in our national history.
Between 1929 and 1882, inclusive,
national income fell from $50 ,800,-
100000 to $3s, SOC, 900 900; cash farm
income, from $4,000 000,0 to
$4,7O0, ,0O0, 900; non-agricultural en-
plovment alone from 1920, 900 to
27,800,O0O, wages and salaries in
manufacturing industries from $15,-
100000 900 to $7,400, ,000,0 900, whole
sale prices from a level of 95.3 to a
level of CAB. Agriculture was bank
rupt, industry was bankrupt and
even the banks were bankrupt. hun
dreds Of them having failed.
Effective Means Necessary
To Restore Foreign Trade.
That emergency could not be met
fully and successfully unless at the
same time that we were putting
into effect far-reaching and neces-
sary domestic measures effective
means were also found to restore our
foreign trade. This could only be
done through reciprocal reduction,
on the basis of equal treatment, by
us and by other countries of the un-
reasonable and excessive trade bar
riers which were strangling com.
merce. Since other governments
possessed the means of prompt ac-
ton in dealing with trade matters
It was essential that our Govern
ment devise for itself an instru-
ment of similar action.
This was done through the enact
ment Of the trade-agreements pro-
gram, which has enabled the execu-
tive branch of the Government to
engage, within the limits of policy
strictly prescribed by the Congress,
in vigorous action for the restora-
ton of our foreign trade. In that
vital task, working against great
difnculties, we have achieved graf
flying measure Of success. During
the period of operation of the trade
agreements program our exports ex-
banded markedly, In sharp contrast