DUTIES LOWERED.

Press, Volume XLIX, Issue 14821, 12 November 1913, Page 5

DUTIES LOWERED.

AMERICAN TARIFF

REVISION IN EFFECT

WOOL AND SUGAR PRODUCTIONS

(FROM OUR OWN CORIIESrONDKNT.)

SAN FRANCISCO, October 14

The new tariff law, the work of a Democratic Administration and a Democratic majority in both Houses of Congress, is now in actual effect, except that free raw wool does not become operative until the Ist of December next and free sugar until January Ist, 1916. Both Houses having adopted the of the conference committee, President Wilson signed the Bill and made it a law on October 4th. In doing so he used two gold pens, with ono of which he wrote the word "Woodrow" and with the other wrote the word "Wilson." The lirst pen ho gave- to Senator Simmons and the second to Representative Oscar Underwood, the party leaders in the rospectivo Houses upon whom fell the burden of piloting the- Bill through tho shoals of opposition. Tho Democratic Party hns practically staked its future upon-the belief that 'the new tariff law" will reduce the cost of living. On most articles of clothing and foodstuff tho duties have either been reduced or removed. However, that tho tariff is still a protective tariff is shown by a summarised statement of the law prepared for the Senate. This statement shows the average percentage of tariff rates as compared to- tho value of all imported merchandise to be as follows: —Old law, ,'57 per cent.; now law, 27 per cent. An averages rate of 27 per cent., including as it does the free list, of course means tho retention of protection for such manufactures as need it. It is the products of the farm that arc chiefly called upon to bear tho onus of tho removal of duties. The same statement shows the valuo of animal imports added to Uic free list to be £29,000,000. While tho old law furnished fk revenue of £61 000,000, tho tariff now in effect is expected to provide .€49.600.000. The difference will bo more than mndo np by tho £15.000,000 it is expected to raise by the income ta:: and tho amendments to tho corporation tax law. Some important administrative features of the Bill were- dropped during the final stages in which the legislators compromised their differences. Tho clause prohibiting the products of child labour coming from countries having no child labour law was inserted by the Senate, but hud to be jettisoned because no agreement as to its terms that was satisfactory all-round could be reached. A so-called "anti-dumping" provision, imposing a special tnx on foreign goods when there should be an attempt to sell them in the United States at lower prices than in their own country, also was discarded. But there was one administrative feature that was retained despite foreign protests, and that is not unlikely to cause the Administration great embarrassment. This is the provision allowing a 5 per cent, reduction of duties on goods imported in American ships. During the debates an attempt was made , to cure + .he flaw in this clause by adding the condition that the differential should not be construed to abrogate or impair any existing treaty between the IJnited States and any foreign nation. But, if enforced, tho proposed discrimination in favour, of American ships '<2oes directly violate existing maritime treaties with many nations, including Great Britain, France, Germany, nnd other foremost countries. The question now arises whether, under the measure as adopted this 5 nor cent, reduction will not apply to the*imports from most of the great nations of the world' when carried hither in their own bottoms, as well as to imports brought in American-owned ships. If that be so, it involves a loss of something like £2,000,000 a year in revenue. Witli regard to the situation of Australia and New Zealand under this possible 5 per cent, reduction on tho schodulo rates of duties, it is pointed out that tho treaty with Groat Britain does not guarantee equality of treatment of vessels from thoso portions of the Empire, nor from Canada; therefore tho full duties would be collected on imports from Australasia in any but American vessels*. President Wilson Ls bt'lievcl to favour an amendment of the law cio as to eliminate tho objectionable preferential clause. It is clearly an indirect attempt to subsidise. American shipping by legislators w#o would vote against a direct subsidy. Tho going into operation of the new law has boon attended by no commercial disturbance. Largo quantities of merchandise kept in bond in expectation of the signing of tho measure are being distributed. New York warehouses alone held goods valued at nearly £20.000,000. While some industrial read justinonts must bo made by reason of tho revised duties, they- arc not large in comparison with the vast volume of manufactures of the United States. It is thought to be unlikely that tho beetsugar industry can live in compotition with free sugar from Cuba; and the same is true of the cane-sugar industry of Louisana. Free raw wool, it is predicted, probably will put an end to nhcep-raisinc* for the production of wool in the Rocky Mountains. But Mr I Bryan, the Secretary of State, is not of [ this opinion. He beli?ves that tho cheapening of the price of woollen goods through the free entry of tho raw material will cause a* larger demand that will take care'of the local sheepraisers. Besides, ho adds, "people can hereafter wear woollen poods who have hitherto worn shoddy clnthine." On this point tho opinion of William M. Wood, president of the American Wool Company, the largest manufacturer of woollen cloths in the United States, is of interest to wool-producing countries. I "I am not enthusiastic over tho Bill," j said Mr Wood • "still free wool is of inestimable valuo to the clcth-maker. It will give him a wide field for the employment of his manipulating ability, and will be a helpful advantage." In short, the removal of tho wool duties, while taking away protection from the sheep-raiser, will* tend to immensely stimulate another local industry, that of cloth-makinc. by providing abundance of raw material.