The midland journal. (Rising Sun, Md.) 1885-1947, 1945-05-18

Walter Shead the Reciprocal
Trade Agreements
act for period of three years and
giving the President further author
ity to reduce tariffs another SO per
cent-has developed into the hottest
party fight to face the 10th congress.
With Republicans generally agreed
to oppose the extension of the act,
the issue narrows down to three pos
,sible results:
The act will be extended as pre-
sented to the congress or
1t will be extended in possibly
some modified form, or
1t will be defeated and the tar
i'll rates will revert to those pro-
vided by the Smo0t- Hawley law
which were in effect prior to the
Reciprocal Trade Agreement
act that became effective in 1894.
1t seems to this reporter, however,
that something more is involved in
this fight for and against the Re
ciprocal Trade act than a viewpoint
on the question of high or low tar
ifs. However you feel about tariffs,
whether you are in favor of high
protective tariff, or whether you IA
vor the reciprocal agreements, the
fact remains that during the past
decade the principle of reciprocal
trade agreements has become an
essential and underlying basis of our
foreign policy.
The entire Good Neighbor policy
in our relations with South and Gen.
trail American countries is based
upon the elimination of trade bar
riers and the reciprocal trade pro-
gram. And these agreements have,
in the eyes of these South American
neighbors, become the most tangible
and abiding manifestation of wheth-
er the United States is indeed, a
good neighbor.
Language of the reciprocal trade
act is written into the Breton Woods
international monetary agreements
for operation of the monetary fund
is expected to help remove trade
barriers in favor of open or re-
ciprocal trade agreements to provide
free and open trade among member
nations"
Written Into Agreements.
The principle of the reciprocal
trade agreements is written into
the Food and Agriculture Organiza-
ton of the United Nations for the
removal of trade barriers, for the
elimination of SURPRISES, to expand
international world trade, to expand
production and consumption and to
raise the standard of living in all
countries. d
The principle Of these trade
agreements is written into the
Atlantic Charter and into the
Dumbarton Oaks agreements OF
the United States, acclaimed as
the ground structure for inter-
national peace now under con-
sideratiOn at San Francisco.
The same principles are written
into the Pan-American agreement
reached at the recent conference in
Mexico City.
Also tied in with consideration Of
this most vital piece Of legislation
actually are the Breton Woods
agreements, also before the con-
,gress, the extension Of authority of
the Export-Import Bank to finance
United States Foreign Trade, and re-
peal of the Johnson act prohibiting
loans to governments in default Of
their obligations to the U. S.
So 1t lis obvious that in the con-
,sideration of this reciprocal trade
extension there Is involved the very
world cooperation which is being
sought at the San Francisco confer
ence. And to this writer the issue
looms much bigger, relatively than
the mere party question Of high or
low tariffs. I'D
There is no question but that the
reciprocal trade agreements now in
force between this nation and % 9TH
er nations have aided in developing
mutual confidence and trust and
world cooperation .on a plane never
heretofore attained. The question
uppermost Is, would abrogation of
these agreements create serious mis-
givings on the part of these coun-
tries concerning our future relations
at this time when the future peace
Of the world is at stake.
Trade experts of every political
faith agree that an expanding inter-
national trade Is the key to many
important postwar problems. If
we are going to produce abundantly
both on farms and factories, for
benefit Of both producers and con-
surners, then there must be a con-,
stantly increasing change Of goods
and services among nations. There
can be no denying the fact, that high
tariffs do constitute trade barriers
even If erected for the avowed pur-
pose Of protecting American agri-
culture and American workers
against foreign competition.