Detroit evening times., 1945-03-31
BEHIND
The NEWS
By Paul
MaIIon

WASHINGTON, March 80
w Mr.. Roosevelt's request for
power TO cut the tariff another
so per cent tmaking IS per cent
in all from the 1884 rates. fell
on hard congressional soil.
Some-not alone the Repub-
licanS say it represents practi-
cally free trade and nowhere
near the actual difference be-
tween the cost Of production at
home and abroad which IS
what a good tariff rate should
be. / know at least two highly
placed Democratic senators who
are dlSpleaSed
Labor is beginning 10 grumble
also. AtL' Matthew VOL came
out against 1t IN a statement
which IS supposed TO be fore
runner of labor opposition.
There certainly Will be a fight
and the outcome is by no sound
means fortellable yet.
The President called for it as
one of "the kit of tools he
needs to handle postwar trade,
but the Republicans are calling
At a monkey wrench. without
doubt II contrasts strangely
with some of the other tools he
asked for, particularly the pro-
posed ballooniSh world bank,
which is 10 lend money for the
development Of industry abroad.
Under our own foreign loan
- and rehabilitation program
we gave money for example, 10
finance the building of a steel
plant IN Brazil.
For another, during the AAA
days when we restricted cotton
production, the cotton growing
industry in Brazil and other
countries grew rapidly.
This competition is such that
at a recent congressional hear
ing, there was testimony that
cotton can be produced in Bra
I'll, Mexico and other South
American countries cheaper than
in the United States.
For others. we have put
money into Mexico 10 finance
mineral industries which can
compete with US Indeed. the
New Deal favorS induStriallza-
ton of the world.
Now the New Deal argument.
used by Mr.. Roosevelt, is the
familiar one heard often from
his new commerce secretary.
Wallace, that as we are a Credi-
tor country and all the world
owes us Gndeed, far more than
II can ever repay the tariff
theory must be abandoned, at
least Is per cent abandoned.
DUT the tools in the kit he
ID has asked for would make
us even more of a creditor ma
tion. In short his whole policy
is spend-lend program for
foreign trade, the giving of
money TO the bank 10 enable
them to build more competing
industries and the giving of
money 10 the stabilization fund
10 support a fictitious value
for prospective foreign buying
nations. and cutting the tariff
generally so everything can get
into this country. We can not
avoid winding up out of such a
proposition with every nation
owing us even more than it
does now.
Would any one then think
the eraSure Of the final 25 per
cent of the tariff would help our
creditor proposition Or would
we not then realize our creditor
danger had merely b en-
double? Certainly the more we
spend and lend the more they
owe uS-and the money comes
from our people.
There are so many problems
10 foreign trade that the vast
ness of the subject is beyond
human grasp. at least beyond
mine. But, in any case, the
new world we are coming into
Will involve wholly different
problems than those OF oldtime
tariff walls
TWINK, for instance, Of Chi
Il neSe labor costs and the
Russians government produc-
-tieH-system which can value
anything at any price. Both of
these were not involved Seri-
ouSly before, but they may be-
come more important than
trade with Britain and Canada
tthe two nations the President
mentioned.
1t seemed to me Mr.. Roose-
velt rather answered himself
with one basic observation in
his message TO Congress. He
said.
I'VE cannot hope to maintain
exports at levels necessary To
furnish the additional markets
we need for agriculture and In
dustry, income for tho farmer
and jobs for labor, unless we
are willing TO take payments In
imports"
Well why not? This rather
directly suggests that what we
should he doing IS taking inn
ports for exports. That seems
10 imply an entirely different
ideal a managed foreign trade,
in which imports could be Sc
lected 50 as not 10 compete
with industries or farmers and