AMERICAN TARIFF.

Press, Volume LXVI, Issue 19971, 4 July 1930, Page 18

AMERICAN TARIFF.

RUMBLINGS OF TRADE WAR. NATIONS RETALIATING. (nou oca ow* coßasspojroeHT.) BAN FRANCISCO, May 29. As concrete evidence of what is going on in the world in relation to the pending American Tariff Bill, some startling points have been developed by the leading American writer, William Philip Simms, who has just returned to the United States after four months' stay abroad. There is no doubt of rumblings of a trade , and Mr Simms says : Sing y and in ooalition the nation of Europe have declared self-defence against the United Btntes tariff. If carried to its logical conclusion the battle which has now begun may fill American streets with unemployed. Last year approximately five billion dollars' worth of American products were sold abroad, but European leaders are now warning that the ne. few years will tell a different story. One by one the nations of Europe arc increasing the duty on American products. They are conducting publicity campaigns against buying American goods. I have just returned from a swing round Europe. Everywhere went I saw unmistakable evidence o the coming commercial and industrial war against the United States. In England J saw full page advertisements calling on the people not to buy any but British-made goods. "In France I witnessed a parade ox lace workers protesting against the new high American duty levied against their products. It would be stupid not to expect the French Government to take cognisance of demonstrations of this kind when framing their owx. schedules against America. By shutting out their goods, we antagonise our foreign customers, stimulate their industries and, by thus undermining our foreign trade, we undermine our own prosperity. Europeans regard these things as the inevitable result of our present high tariff policy."

America's Outlet. It is explained that the pending tariff no longer fits America's business and industrial needs as did its predecessors, because of the complete change that has occurred in the economic machinery of this nation in consequence of America's development of mass production. In other words, the United States, once unable to produce enough for her own needs, is now producing more than she can consume. She has become definitely dependent on the rest of the world for an outlet. Until and unless Uncle Sam's labour can be employed, the present depression and bad times will continue and grow worse. What is happening? With America's danger lying in her and overproduction, the mere threat inherent in the present Bill has contributed to 20 per cent reduction of America's exports for the first quarter of 1930, and when the Bill passes, exports volume will suffer infinitely greater. Already 30 nations have passed measures of reprisal, and Uncle Sam realises that the rest of the world is arming against him in one of the greatest trade wars ever known. A few selfish interests who by a process of mutual back-scratching and logrolling have bee* able, through '' using' politicians and playing upon their desire for re-election, to drape this measure with a schedule of increases the very tolerable nature of which is bringing forth those angered reprisals from the rest of the world—from Canada to the north, from the Argentine to the South, and from far-off lands across all the seven seas.