The Key West citizen., 1949-06-02
CAN LOWER TARIFFS SAVE MONEY

LOT iJ4J VIII not De less III the. program,
undertaken under the Marshall Plan. IS to
be carried u successful termination.
Facing this expenditure, It might be
well for the people Of this country to con-
slider whether the same objective can be
accomplished through process that will
save the taxpayers money. We think
there Ii but the ramifications of the pro-
posal have such d far-rcaehing economic
effect that the project would have to be
studied by experts in order 10 determine
ts practicabiiity.
In the United States, since the end OF
World War II. there has been something
Of shortage Of goods accompanied BY an
unusual amount Of money. lin the coun-
tries receiving assistance from this coan-
try, The economic situation has been COM
pIicated by lack OF American dollars,
which arc essential to pay for the import
Of goods, raw materials and machinery.
Because the production OF many inn
Dortant items has been greatly lessened In
Germany and other manufacturing ma
tions as result of the war, the world is
compelled to look to the United States
for present supplies. The business men of
other nations, however, cannot purchase
goods in the United States with their do
mestic currencies but must have Amerf-
can dollars available for payment of their
American accounts The only way these
dollars can be secured is through borrow
ing, through gifts or the sale of goods and
services to the people OF this country.
The question that arises is why do not
the business men of other countries sell
their goods and services to the people of
the United States and thus get the dollars
that they need to purchase goods from
this country? The answer il the tariff
policy of the United States
For many years, the United States
maintained the highest protective tariff
In its history and one of the highest ever
imposed by any nation. Foreign sellers
were unable to ship products into the
United States and make profit on sales
after paying exorbitant tariff duties.
AT the present time, strong move
ment is underway in Europe to reduce
tariff barriers to promote international
trade but the whole scheme depends, to
large evxtent, upon whether the United
States is willing to broaden the policy
initiated by the Reciprocal Trade Treaty
program. In word, the United States, If
1t expects to sell to other countries, must
be willing to buy. This means, there must
be additional tariff cuts and the people of
this country must understand that inter-
national trade is two-way street. They
must buy if they hope to sell.
The obligation that rests upon the
tariff-poiicy trainers of the United States
is to reexamine the effect of our tariffs in
connection with our expenditures for the
European Recovery Program. With the
world dominated by unusual demand for
dollar balances, the prospect that faces us,
as a nation, is TO continue lending or CIV
ing American dollars in order to promote
trade, or, as an alternative reducing some
duties to permit other countries to sell
products in this country.
IF there could be reduction of duties
on certain specified products to permit
European countries to establish satisfac-
tory dollar balances in this country, the
people Of the United States might be able
to save some Of the S12, 900, ,00G-a-day now
being spent for European relief.
Moreover, instead of getting nothing,
or practically nothing, for the money
sent abroad, the standard of living In this
country could probably be Increased by
the distribution Of the goods received from
foreign nations.
Az o by.produet, 1t should not be
overlooked that the development of freer
trade among the nations will tend to pro-
duce satisfactory conditions that will
tend to support tho effort to prevent flu
ture wars.