Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-23
The Political Mill
Big Bottle in Making
Over Reciprocal Trade
Congress Warned Against
Return to Smoot- Huwley
The Political Mill
By Gould Lincoln

A major battle is building up over
proposals to extend the Reciprocal
Trade Agreements Act. It is likely to
burst into full and oren view as soon
as President Eisenhower submits to
Congress his own proposals regarding
foreign trade and the tariff. This he
Is expected to do in March. The report
Of the Randall Commission on Foreign
Economic Policy, designed to aid the
President in his recommendations, has
already been made public. ~
In general, this report proposes q
,three-year extension Of the life Of the
Trade Agreements Act, with the peril
points. escape clause, and other safe
guards. The President. 1t Is recon-
mended, may suspend or disregard
these provisions If he deems 1t wise in
the interest Of the country's economy.
Well-heeled organizations on both
sides Of the tariffs issue are already in
the field and working hard on individ-
ual members Of Congress, as well as
conducting an educational campaign
to obtain popular support. The Trade
Agreements Act Is due to expire June
IL, unless congressional action keeps
it alive. The opponents Of the law rs
1t now operates are preparing a bill
which would curtail the present trade
agreements program. On the other
side, the supporters of the trade agree
ments system, who generally represent
those calling for freer trade and fur
Their elimination Of trade barriers, are
preparing to fight for presidential rec
concentrations for an extension of the
act.
Authority Delegated Now.
One Of the proposals Of the Anti
Trade Agreements Act is that the act
be allowed to die and that Congress
take back its responsibility for fixing
tariffs, which Is now delegated with
certain limitations to the United States
Tariff Commission and the State De-
partment which negotiateS the trade
agreements. This would be turning
the clock back with a vengeance. 1t
has been 20-odd years since Congress
passed it's last general tariff act. the
Smoot Hawley Act, during the Hoover
administration. This same tariff law
would be in effect Immediately on the
expiration of the Trade Agreements Act.
though many of the trade agreements
to which this country is presently a
Party WOulOr COIlLlIluC W 1uIl 1U4 OLA
months or more.
When the Smoot- Hawley Act was
put through. American industries
claimed that they were in danger of
competition with flood of foreign
imports made with cheap labor. The
effect of the act was to raise the trade
barriers and to lessen foreign imports,
making it more difficult than ever for
the nations debtor to the United States
to sell goods and so pay their debts.
Further. the act brought about retalia-
tory measures against American ex-
ports.
Today, fears of lesSening domestic
market. with attendant economic recess
sion, have brought an increased demand
for higher tariff duties as a protection
against dumping of foreign products
into this country at prices which would
ruin American producers.
Need Long Range Policy.
The administration was able to get
one-year extension of the Trade
Agreements Act last year, so that the
President and his advisers would have
an opportunity to explore the whole
subject of foreign trade and come up
with a program. The time has come to
adopt long range policy. and with it
has come greater demands for higher
tariff protection from many American
industries. 1t is suggested that in the
end, however, the administration may
have to settle for one years extension
of the act for second time. Last year
group of oil producers fought hard for
a quota limitation on residual oil i'm
ports. They were joined by several other
industries which wished higher tariff
protection. They are planning now to
renew the battle.
On the other side are a number of
important American industries which
want trade barriers lowered-freer
trade. Their contention is that this
country must have maximum foreign
trade in order to help care for the great
production of its industries. Obviously,
trade is not, one-way street, and there
must be imports as we'll as exports. An
expanded trade can become vital to
prosperity in the United States, they
say.
A return to general tariff making
legislation, as favored by some of the
anti-trade agreements group. could lead
to logrolling legislation in Congress on
major Scale-where industries and
their representatives in Congress
pooled their strength to obtain their
individual ends. For 20 years, that kind
of thing has been avoided Such legisla-
ton helped ruin the Republican adj
ministrations under Taft and Hoover.
and could do the same for the Eisen-
hover administration