Evening star., 1952-12-09
The Political Mill
Eisenhower Unlikely
To Ask New Tariff Act
Demands for Action Begin
To Arrive in Washington
The Political Mill
By Gould Lincoln

Demands that the 83d Congress tackle
beginning already to arrive in Washing
ton. The last general tariff act-the
Smoot-Hawley Act-was passed by the
Republican-controlled Congress elected
with President Herbert Hoover in 1928.
1t became effective In 1930-and 1t did
the Republican Party no good. It was
signal for the erection Of trade barriers
all around the world.
Admittedly, tinkering with the general
tariff laws is dangerous pastime, politi-
cally speaking. Republicans and Demo-
Gratis alike have suffered from action in
creasing tariff duties on the one hand
and lowering them on the other. So, it
is not unexpected that Republican lead
ers in Congress look askance on pro-
posals to go into rewriting the basic
tariff laws. Representative Daniel A.
Reed of New York. who is slated to head
the Ways and Means Committee Of the
House. does not favor the idea He feels
that much can be accomplished under
a reciprocal trade agreements act. con-
tanning the peril point" provisions
with an amendment making it compul-
sorry upon the executive branch of the
Government to act in cases where the
United States Tariff Commission has de-
clared, after investigation. that injury
is being done an American industry.
"Peril Point" Amendment.
The peril point" provision is in the
present trade agreements act-over the
opposition of President Truman. The act
expires next June, and in all probability
will be renewed by the incoming Con-
gress, with the peril point" provision in
one form or another.
AS it stands today, the peril point"
amendment makes it incumbent upon
the President after the Tariff Commits
sion has said that the duty imposed
under trade agreement with foreign
nation or nations endangers an Ameri-
can industry, either to act to remove this
peril" or to inform Congress why he
has not done so. Mr.. Reed believes that
something should be done to compel any
President to pay attention to what the
Tariff Commission says about actual in
juries to American business, when they
are shown to have been brought about
by too low tariff duties.
When the late President Franklin D.
Roosevelt entered the White House he
made no attempt to repeal the Smoot-
Hawley Tariff Act, or to write new
general tariff law in its place. He tackled
the problem of adjusting the tariff duties
through the Reciprocal Trade Agree
meEts Act-Which authorizes the execu-
tive branch to deal with individual tariff
duties in agreement with foreign ma
ton or nations. Under this system tariff
duties have been lowered until it is now
said by some-who want greater pro-
tection-that many American industries
have been harmed. and that the duties
average no more than those under the
tariff for revenue only" Underwood
Simmons Act. passed when Woodrow
Wilson was PreSident-the last Demo-
cratic general tariff act.
President-elect Eisenhower has still to
make specific recommendations on the
tariff. It is not believed, however, that
he will ask Congress to write new gen.
eral tariff act. Such a demand would
impose terrific task upon Congress at
the very opening OF his administration.
sumo many months. with "log rolling"
a consuming activity in both houses.
American industries, however, are ready
W dpPCdl 1UI SICdCCI PAOUCCIAOh ABdAlot
foreign imports Makers of bicycles, for
example, claim they are being hurt. The
American watchmakers have for years
complained bitterly against the huge i'm
ports Of Swiss watch movements. The
tuna fish industry insists 1t is being
damaged materially by imports from
Japan and Latin America.
Some Want Free Trade.
The Republican Party has tradition
ally been known as the high-tarif party
1t is inevitable, therefore, that when it
takes over control of the Government,
American manufacturers and the fishing
and other Notwithstanding agricul-
ture-will make their play for more pro-
lection.
Not all of American industry, however.
is intent upon high tariff duties. Part
of the big producers wish trade as free
as 1t can be, with foreign nations selling
their goods in this country for dollars
which they, in turn, can use to purchase
the products Of Americans. This Is q view
with which many Of the foreign nations
heartily concur.