Evening star., 1953-04-09
The Political Mill
Peace Offers No Cause
For Economic Collapse
Since '29, We've Learned
How to Put on the Brakes
The Political Mill
By Gould Lincoln

By Gould Lincoln
are talking peace-indicating they are
willing to back up their talk with &C
tion-and the end of fighting in Korea
seems nearer, the air is filled with "the
threat Of peace" talk. The line of
reasoning is that our economy and
that of the other nations of the "free
world" will be seriously in danger with
the advent Of peace and large cuts in
expenditures for military purposes.
Unemployment. loss of spending power
and a falling off in foreign trade and
foreign outlets for our products are
the clouds on the horizon the modern
CaSSandraS claim they see.
Carried to its ultimate conclusion
such reasoning means we cannot have
peace without depression and economic
deStruction-and without falling into
the Communists lap. It's a depressing
idea, not necessarily true. This coun-
try has learned lot since the great
depression got under way in 1929,
decade after the First World War. It
has learned how the brakes may be ap-
piled, through many programs.
No Longer Isolated.
Moreover, it has learned that the
economic condition of this country is
vitally bound up with the economic life
OF the other nations. One of the mis-
takes made after the First World War
was the raising of higher trade barriers,
through enactment of general tariff
laws designed to give greater protection
to American producers. The passage
OF the Smoot-Hawley Tariff Act in the
first year Of the Hoover administration
gave the additional push. Trade bar.
r1ers were raised in retaliation by other
nations. The fat was in the fire.
President Eisenhower clearly does not
intend to get caught in the same trap.
or have the country caught in it. In
MS recent message to Congress, asking
the extension Of the present Reciprocal
Trade Agreements Act for one year
while the whole subject of international
trade and our part in it is to be studied.
the President said: "The solution of the
free worlds economic problems is a
cooperative task. It Is not one which
the United States, however strong its
leadership and however firm its dedica.
tlon to these objectives, can effectively
attack alone. But two truths are clear:
Inc united States share in this UNDER
taking (Stable economic conditions) Ia
SO large as to be crucially important to
!ts success-and its success is crucially
important to the United States"
Presidents Position.
The Presidents opposition to trade
barriers and his desire to avoid them
appear in his comment: "The world
must achieve an expanding trade. ball
anced at high levels, which will permit
each nation to make its full contribu-
ton to the progress Of the free worlds
economy and to share fully the benefits
OF this progress"
Republican leaders on Capitol Hill
say that up to the present there have
been few demands for increased tariff
duties from American industries. al.
tnough there have been some for
quota allotmentS" Of certain imports.
senator Taft Of Ohio, Republican leader
OF the upper house. and Senator Milli-
Kin OF Colorado, chairman of the FL
nance Committee, both have said they
favored the Presidents plan to extend
unchanged the Reciprocal Trade Agree
ments Act. The House leaders, on vaca.
ZION this week. are expected to take a
similar position. The Democrats are
willing to go along.
Neither of the major parties has had
the temerity to demand q general re-
vision Of the tariff laws, a new general
tariff act. for more than 20 years.
Neither is seeking it now. The days
when the tariff was the great issue
between the Republicans and the Dem.
ocrats have passed into history, when
the Republican Party stood for high
projection and the Democratic Party
for free trade "or tariff for revenue
only"
1t Is q Local Issue.
The tariff was described years ago
by a practical politician as q local
ISSUE" 1t is, and each locality, whether
overwhelmingly Democratic or vice
versa, has its own pet items Of pro-
duction 1t wants protected. Some Re-
publicans are today more vociferous in
their demands for free trade than are
the Democrats. But from the days of
Grover Cleveland to those of Franklin
D. Roosevelt new general tariff laws
were enacted when party control Of tho
Government changed hands, with the
Democrats cutting rates-except in
particular items-and the Republicans
raising them.
If the shoe begins to pinch and
American industries feel the impact of
foreign importS-as result of changed
conditions-demands may be expected
Tor higher tariff duties, or sharp quota
regulation for imports. AS of TODAY.
however, the drive is toward increasing
international trade as the safeguard
OF economic stability Of the United
States and the rest Of the free world.