Show Tariffs Have Their Ups and Downs 4 Geneva Trade Agreements To 10 Affect W World Commerce By y BAUKHAGE N News W Analyst and Comm Commentator WASHINGTON Recently there have been rumblings from congress reminiscent of the old Smooth Hawley days It was the warning from Senator Milliken Rep Colo and andI I Representative Knutsen Rep Minn that the reciprocal trade agreements act would have a lot of strings attached to it when it comes up for renewal next year If that means that tariffs are raised again history will be repeating itself As the amusing illustration in this column reveals the gentlemen have been en busy building up and tearing down the tariff wall ever since 1913 What will the next section of the wall built vall-built built ap-built built after look 19 1940 look like The reciprocal trade agreements l drawn up at the recent Geneva conference con ference which resulted re reo re- re suIted in a anum- anum number num num- t N t i ber of slashes in U duties dutie t. t important x 1 and inspired the Knutsen and Millikin Mil Mil- likin statements brought forth an ii even louder blast from the American Ameri Amert can Tariff league a At the present WA WAL L writing however 3 there does not appear to be anywhere anywhere anywhere any any- where near the then of sentiment senti- senti strength B Baukhage n au kh age ment in favor of building up the tariff wall that there act was when the Hawley Smoot-Hawley raised it to an time all high 47 per percent percent percent cent in 1930 From the time of the Civil war the tariff wall had grown almost every time congress acted Then came Woodrow Wilson who demanded that the country be set free from conditions be he thought made monopoly not only possible but easy and natural The Underwood Under Underwood wood law which brought the import duties down from 37 per cent to 27 per cent was his answer Under Harding they went up about 35 per percent percent percent cent reaching an time all high under under under un un- un- un der Hoover It has been an exciting contest con con- test Although Cordell Hull llull as secretary of state slate managed with Roosevelt prestige to pull them down again they were still stillI 1 I per cent higher than the Ford Ford- ney ney-McCumber act raised them under Harding Under the agreements agreements agree agree- ments negotiated by Secretary Hull our exports increased but foreign competition for various reasons did not take advantage of the situation to any great ex ex- tent There was no avalanche of cheap foreign goods to contend contend contend con con- tend with The Democrats in the Wilson pre-Wilson era always were banging away on this issue and there were many colorful debates The low tariff advocates advocates advocates ad ad- had to resort to all sorts of means to get a hearing because they were backed by no special interests Their client was the vague and anonymous American consumer The tariff high-tariff pleaders were able to present their cases armed with the best legal talent available whole libraries of statistics and a thorough knowledge of the particular industries industries industries indus indus- tries they represented And they had bad another great advantage in the number and geographically diverse Industries fighting for protection for their particular product Enough special interests needed enough help from other special interests Interests interests in in- so that log rolling was easy- easy there was usually a majority for everybody's gismo That Is why the only practical way trade agreements agreements agreements agree agree- ments can be reached at all is to have them negotiated like any other International agreement through the state dep department which has no regional strings t to tie it down Right now the consumer is being I heard from In no uncertain terms and any argument for lower prices wins a hearing That Tha t is evidenced by the speed with which congress tackled the inflation anti-inflation suggestions presented both b br by the President In his bis message message message mes mes- sage of November 17 calling for a point 10 program and those offered by Senator Flanders of Vermont and other Republicans Despite considerable influential opposition the Democrats took for granted that at least four out of the Presidents President's ten points had a good chance to be adopted In fact one authority to ration certain foods already already already al al- ready had been suggested suggested suggested-by by a Republican Re Re- publican Senator publican Senator Flanders None of these points Involves tariff cuts however and those cuts already made under the Geneva agreement are still largely academic because most foreign torelia countries arent aren't In a position now to produce for export export export ex ex- port to any great eat extent Next session we can expect them to be debated So far there have been almost as many complaints from supporters of the reciprocal trade agreements act as from its opponents Its most enthusiastic backers charged that It had not been pushed hard enough that the state department had not used all of the power which It had for fear tear of arousing the animosity which would cause its repeal repeat At present those favoring a freer flow of trade are In a better position to urge their cause because It is fa evident evl- evl dent that we cannot continue to give supplies to Europe under a relief program or to lend money for the purchase of our goods unless we encourage encourage encourage en en- courage Europeans to sell to us Otherwise they'll land back where they are now Even if they I build up th their ir industries so they are arc able to produce goods unless they can sell some of those goods they wont won't have the dollars to pay back what they owe and buy our goods That is why warnings that strings may be attached to the act have an ominous sound Strings would mean either limitation on the amounts by which tariffs can be lowered through reciprocal trade agreements or removal of authority authority authority author author- ity to make reductions without the approval of congress of the particular lar item Involved That would start log rolling again put an end to our foreign trade and have us back taking taking taking tak tak- ing In each ach others other's washing for a living Worlds World's Prosperity Hangs In Balance What happens to the yet as-yet as yet un- un built section of the wall of ot the dra drawing drawing draw draw- wing w- w ing will affect the entire up set-up of world trade It can make all the work of the International conference on world trade and employment go for nothing and destroy any benefits derived from a successful European relief plan The 62 nations now gathered at the trade conference in Cuba represent countries doing about 95 per cent of the worlds world's trade and the Interesting th thing Jg is that although Russia and most of her satellites refused to attend two of the countries under the Influence influence influence ence of Moscow Moscow Finland Finland and Czechoslovakia did did turn up Th Thereby reby hangs a tale It is believed believed believed be be- by some keen observers that despite all efforts to kill the European European Euro Euro- peon pea recovery plan the Soviet Union Union Un Un- ion knows very well that if it works it may be to her selfish interests to get on the bandwagon at least to the he extent of lifting the iron curtain high enough to get some of the needed much-needed goods from Western Europe under it And the way that could be managed would be to have some of the Soviets Soviet's friendly countries countries countries coun coun- tries in on any advantageous trade deals that might be made Western Europeans say that this would be belie bethe bethe the lie most effective way to break breakdown breakdown breakdown down the the Communist grip on these countries Meanwhile It Is la realized in Washington that this country cannot carry out its flung far foreign policy unless that policy is sold harder than Communist propaganda Is selling Its Us brand of Good salesmanship begins at home lome And a lot of salesmanship is needed right here I rode down on the trolley with a very Intelligent secretary to a congressman who said to me I wish I knew what the Marshall plan was all about President resident Urges Savings Bonds Speaking of salesmanship the President Is believed to have given the green light on an Intensified sale of one of the Important Inflation anti measures recommended in his speech when he said Another effective weapon against inflation is increased savings by the public Every dollar that Is saved Instead of spent is a dollar fighting against Inflation In order to encourage additional savings the government government government govern govern- ment should Intensify its vigorous vigor vigor- ous efforts to sell seU savings bonds |