Arizona sun., 1948-06-25

kE3&&faa2S2ot CrdQG Was O11S VI
- the great factors
in bringing on depression.
But that isn't the only thing that
tariff walls do. They tend to force
;.solationism, extreme nationallsm
on a country and behind the tariff
walls, as ex-Secretary of State Cor
dell Hull used to say so often, grow
the roots of war.
Secretary of State Marshall
stated that the Gearhart bill
would destroy the substance OF
the reciprocal trade theory,
theory which is not only the cor
nerstone of our general foreign
trade policy, but the principle
which we have insisted must be
followed by nations participating
in the European recovery pro-
gram.
The secretary said that "only the
shadow of the original act would be
preserved in the substitute bill pro-
posed by Representative Gearhart,
while it's substance would be de-
stroyed." And he added: II think
our national interests would be bet
ter preserved to permit the trade
agreements act to expire than to
permit H.R. 6556 to be enacted"
He pointed out that any serious
weakening of the trade agreements
act at this critical period in world
affairs would "almost certainly be
regarded by other countries not
only as a surrender of our leader
ship in the international economic
field, but as a reputation of much
that has been accomplished under
our leadership in that field"
Presumably he meant this:
When we agreed to the European
recovery plan (E.C.A.), one of the
things we emphasized, demanded
in fact, was that the countries re-
ceiving our aid would have to
break down tariff barriers against
each other and the rest of the
world. We knew there couldn't
be economic recovery if there was
not a free flow of world trade.
Even before the E.C.A. was ever
thought of-since 1884, as matter
Of fact-by vigorously pursuing the
reciprocal idea, by concluding re-
ciprocal trade treaties with so
many countries 1--WE have them
with all but six or seven of the
Marshall plan participants) we have
encouraged the world to reduce tar
iff walls. Thus it would hardly
seem consistent suddenly to reverse
ourselves and go back to the old
days of high tariff economic isola-
tionism.
The measure as the house pre-
sented it had another drawback in
the eyes of Secretary Marshall and
supporters of his point of view. The
bill would force the President either
to accept the recommendations Of
the federal tariff commission on ad-
justments above or below certain
bracket or submit them to a con-
gressional veto. That sounds rea-
sonable in theory, but what it does
is to smash absolutely the whole
basis for reciprocal trade negotia-
tion.
A nasty little joker in the meas
ure stating that tariff commission
recommendations must be made on
the principle of protecting the Spe-
cial interests concerned revealed
the intent of its trainers. That pro-
vision would destroy the purpose of
negotiation by removing trade
agreements from the field of the
general good'' and narrowing them
down to a question of whether the
particular industry is to be pro-
tected from competition. Thus, not
only would international relations
and conditions have to be ignored
entirely, but broad national inter-
ests as well.
Secretary Marshall used strong
words in criticizing this clause
when he said: 1.-The bill, in effect,
makes pure protection the sole
criterion for tariff actiOn.''
Very few groups outside of the
big industries which want to keep
down foreign competition oppose
the reciprocal trade program. The
great majority of the chambers Of
commerce are for it. Earl Shreve,
national president Of the chamber
Of commerce, has said that any