Milford chronicle., 1958-01-03
RECIPROCAL TRADE AGAIN

Inc proposed extension OF the ReclprOcal
Trade Agreements Act is certain to cause a
hot fight in the second session of the 85th
Congress. The Administration, favoring ex-
tension, proposes to extend the program for
five years, but even the most ardent cham
pion of the Administration program does
not look for such victory from Congress.
The last time the fight took place over
extension the Administration also asked for
long-term extension but got only several
years of a modified program. 1t is accurate
to say, however, that the Eisenhower Ad-
ministration that time got most of what it
wanted, even if for shorter period than re-
quested.
But the Reciprocal Trade Agreement pro-
grams support has begun to come from a
different direction in recent years and the
opposition has swung around until much of
it comes from the people, and the section of
the country, which formerly was the greatest
supporter of the trade program originated
by Cordel Hull
In the early thirties, when President
Roosevelt and Secretary of State Cordell Hull
originated this program it was designed to
lower tariffs (Which had been raised to an
admittedly high level by the moot-Hawley
tariff law of 1930). The program was sue
cessful and u. S. foreign trade increased and
as we lowered excessively high tariffs, other
countries lowered their restrictive taxes and
duties on u. S: produced goods.
The process has continued, to some de-
gree, since, until today there are many who
feel that some u. S. industry is being en-
dangered by the threat of further lowered
tariffs. This fear is increased by the recess
sion upon us at the moment and by the threat
of cheaply-produced goods from countries
such as Japan. @
Whereas the Democrats, especially the
South's Democrats, were staunchly for the
4
lied its interests have become more varied
and today some of the strongest anti-trade
agreement opposition halls from Dixie.
Speaker Sam Rayburn said few days ago
that it was highly doubtful if the trade agree
ment extension got through Congress at all
this year
President Eisenhower and the Eisenhower
% Republicans are in favor of freer trade. So
are some. Democrats. But the coalition
against the program is certainly formidable
and apparently gaining strength. And in
some fields we agree that tariffs have been
lowered far enough, or even too far.
Nevertheless, we favor greater trade be-
tween nations. A way should be found to ex-
tend the trade agreements program but ad-
ditional safeguards must be inaugurated to
keep trade-happy diplomats from running
domestic industry because of theoretical
approach to world problems or ignorance of
the business world and business conditions.
1t may be that Congress can write an ex-
tension that will require an overwhelming
vote in the Tariff Commission, plus presiden-
tial approval, and-if advisable approval by
Congress. In that way progress might be
slower but mistakes will be harder to make.
> And unless some such compromise is worked
out the twenty-fve-year-old program will
wind up on the rocks in 1858.
@SZoN>
DON'T FORGET PARCEL POST
Most of the extensive discussion over pro-
posed increases in postal charges has dealt
with the first, second and third class mail
services. Comparatively little attention has
been given to the fourth class category, which
is parcel post
Actually the case for increasing parcel
post charges to the point where they meet all
the direct and indirect costs of providing the
service, and eliminate the heavy taxpayer
borne deficits that have been accumulating
during most of parcel posts history, is an
extremely compelling one. When Congress
authorized the service, in 1913, it was spe-
Gifted that it should pay its own way and not
unnecessarily compete with private parcel
carriers. Those stipulations have not been
followed-as the Hoover Commission and
other bodies have made abundantly clear.
The regular mails are not competitive
with private business. Parcel post is-and
unfairly-competitive due to the subsidies it
receives. The regular mails serve as nee
essary means of providing the people with
education, information and entertainment
Parcel post, on the other hand is purely COM
mercial, and if it went out of business tomor-
row taxpaying private commercial parcel
carrying enterprises would take over the
load.
Parcel post charges should be adjusted
upward to where those who want and use
the service pay the full bill-and don't look
to everyone else to pay part of it for them.