Monday, Jul. 22, 1929

Complaints from Afar

The new Tariff Bill, passed by the House and now pondered through the hot summer days by the Senate Finance Committee, became more than a domestic matter when 43 protests against its high rates were filed with the U. S. State Department by the diplomatic representatives of 25 countries. Collectively, politely, the protests told the U. S. that increased tariff schedules might prove injurious to that expansion of U. S. foreign trade so anxiously desired by President Hoover.

International. The collection of complaints had been piling up at the State Department for several weeks. When Mississippi's Democratic Senator Pat Harrison first asked how many had been received, he received the answer: "About a dozen." He pressed for more definite information. First an erroneous figure of 38 protesting nations was given out. Then Chairman Reed Smoot of the Finance Committee was jockeyed into the necessity of revealing the true list. Some were complaints made by foreign governments as governments; others, merely the transmission of private commercial protests through governmental channels.

France complained of general tariff increases. Ambassador Claudel declared the situation to "justify discontent, the manifestations of which are becoming more and more lively." He pointed out that French citizens bought an average of $6.39 worth of U. S. goods each year, whereas each U. S. citizen bought only $1.32 worth of French goods.

Belgium protested tariff increases on glass, cement, bricks, leather, chemicals. Spain, vexed at higher rates on cork and peppers, threatened to denounce the trade modus vivendi between it and the U. S. Australia complained of the wool duties; Denmark, of those on hides and skins; Italy, on canned tomatoes, olive oil; Mexico, on fresh vegetables; Austria on hats, shoes, glue, tapestries; the Netherlands, on diamonds, glassware, brick; Switzerland, on watches, embroideries; Persia, on rugs; Uruguay, on wool, meats, hides; Dominican Republic, Guatemala and Honduras, on bananas, coffee.

Great Britain, Irish Free State, Turkey, Norway, Greece were other complainants. Notably absent from the list were Canada and the A-B-C powers of South America. Canada, protested informally, in an oral statement by Minister Vincent Massey hinting at a high Canadian wheat tariff in retaliation for the proposed U. S. duties on lumber and shingles. Having had the list published, Senator Harrison next engaged Senator Smoot in an altercation on what the protests signified. Senator Smoot at first belittled them, called them "unimportant . . . similar in substance to former protests." Senator Harrison called them the result of a U. S. "imperialistic policy in trade and commerce as baneful in its effect as an imperialistic war."

Senator Smoot: "They are not protests from foreign governments but from interested parties. . . . Take England. The West Riding Chamber of Commerce protests against the duty on wool. What a pity the increase of three cents a pound on scoured wool should be imposed on the riding breeches used by members of the West Riding Chamber of Commerce! No wonder Senator Harrison weeps over the situation."

Senator Harrison: "Senator Smoot's inconsistencies ... a sham and a pretense. ... As a matter of fact . . . Belgium, France, Italy, Spain, Austria, Norway, Greece, Netherlands, Denmark, Switzerland, Persia, Uruguay, Mexico and Honduras protested as governments. . . . Those protests are general and significant in character. . . ."

With the foreign protests as their background, tariff developments of the week were:

Automobiles. The metals subcommittee of the Finance Committee heard potent motormen recommend a reduction in the automobile tariff from 25%, ad valorem to 10% (see p. 41).

Cream Separators. If valued at less than $50, these dairy appliances are now duty free. U. S. manufacturers asked for a 45% duty, cited importers who bring in Belgian separators costing $30 to sell to U. S. farmers at $107. Importers objected, made U. S. manufacturers admit that U. S. made separators costing only $41 are also retailed at $107.

At the White House. President Hoover called Senators Watson and Reed to the White House. When they returned to the Capitol, they were asked to explain the Presidents' tariff position. Senator Watson spoke with assurance of a "sane and sensible" tariff revision, of a "yardstick of adequate protection." Promptly from the White House came a denial that Senator Watson had been authorized to voice the Hoover views. Democrats jibed that the President must therefore favor "an insane and senseless" tariff revision without any reasonable measurement for protection. The White House the next day denied its first denial, which left the President's tariff attitude more blurred than ever.

Robert Barry, Washington correspondent of the New York Evening World, last week made the following analysis of the Republican membership of the Finance Committee in the torthcoming tariff fight:

"The real fighting will be done by Senator Reed of Pennsylvania.

"Smoot is too involved and too scary.

"Watson is too indifferent and too transparent.

"Edge is too preoccupied and too shallow.

"Bingham is too pedagogical and too irritating.

"Deneen is too busy defeating Mrs. McCormick for his renomination.

"Shortridge looks too wise to know anything.

"Couzens is too honest to be trusted.

"Greene is too ill to matter.

"Keyes is too lost without his literary wife to do anything.

"Sackett is too busy hoping for renomination against Congressman Robsion and reelection."