The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo. THURSDAY, SEPTEMBER 21, 1922 THE AMERICAN TARIFF.

Auckland Star, Volume LIII, Issue 224, 21 September 1922, Page 4

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo.

THURSDAY, SEPTEMBER 21, 1922 THE AMERICAN TARIFF.

For the caute that lacks Mit'jlamn, For the wrong that •teed! resistant*), For th* futur* in th* distance, A-id tke §ooi that we o*n do.

The American Tariff Bill has been passed by Congress and now goes to the President for signature, and as Mr. Harding has given no indication that he will veto it, but, indeed, is inclined to sympathise with the policy embodied in the document, we may assume that the tariff will become law. The enactment is important to America and to the world. The new tariff imposes rates which are, according to an American economist, "the highest that have been applied in the United States fo r more than half a century," and that at a time when wages are falling and America is dependent upon her foreign trade for the payment of interest on the vast sums owed to her abroad. Under the tariff of 1000 the average rate on all dutiable importations was estimated at about 41 pe r cent. This Republican measure was succeeded by the Democratic tariff of 1913, with an average of 37.0 per cent. This, tariff, however, moved a considerable number of commodities into the free list, and under it the average duty on all imports was reduced from 21 to 14.(ipprc r c ent . 'rj lc Emergency Tariff of last . ,- „pp]ied a very stiff dose of protect:,,-,, and the permanent tariff embodied in the Bill that has now paseed Congress perpetuates this policy. It was recently estimated that the average rate on dutiable goods would he about 4.", pe r cent., and on all goods about 25 per cent. In reality, hoivever, the measure of protection will be much greater. 1„ mancases the basis of duty has been changed from an ad valorem to a specific footing, so that the consumer of imported goods —as, for example, colonial wool—will get no benefit from low prices. Moreover, the President will possess the unprecedented power of increasing existing rntes by proclamation up to a :imit of 50 per cent. The number of out-and-out free traders in the United States is probably infinitesimal, but there is very strong opposition to the policy of lofty protection contained tariff, and the Republicans laid much difficulty in pushing the Bill through. Their success was made possible, by the union of the bloc" in Congress with manufacturing interests. The farmer; faced with falling prices for his produce, lips lieen speedily converted to high protection. It is for his benefit that thj wool schedules, so especially interesting to

New Zealand and Australia, have been framed. Scoured wool will pay about one shilling and fourpence a pound under the new tariff. Yet the United States last year produced much less than half the amount of wool it consumed. This and other wool duties mean that _11 Americans, including farmers, wili have to pay more for their clothing—it has been estimated that the increased cost will amount to several dollars on one suit—and a time when wages are falling. Even among manufacturers there is opposition to the tariff. Some must pay higher prices for tbeir imported raw material. Banking opinion has been almost solid againHt an increase in the tariff. The hostile elements in the country, however, were not able to combine with sufficient effect to overcome the entrenched strength of certain vested interests in Congress. The new tariff may produce important political results yin America, and will certainly affect America's relations with other countries. The consumer is up In arms against this high protection, and there is a Congres_ional election in November. The tariff of lDOfl was a large factor in the. defeat of the Republicans in 1912 and the election of Mr. Wilson, and this tariff is much more severe. It has been said that the shrewdest "Republican leaders dread the issue more than anything else. The effect on forcigu trade will be to discourage imports at a time when America is asking for payment of interest on her loans to Europe. Tn time this policy of raising prices to the consumer and forbidding foreigners to send poods will break down, but in the meantime the country will suffer severely, and the cause of international trade and i reconstruction will he injured.