THE TARIFF BATTLE IN AMERICA

Dominion, Volume 27, Issue 150, 22 March 1934, Page 8

THE TARIFF BATTLE IN AMERICA

It will be rather surprising if 'President Roosevelt is allowed to proceed with his reciprocal tariff proposals without very strong opposition from Congress, both in the House of Representatives an< in the Senate. His proposals, if carried, will affect a change in American economy which from the traditional and political point o view, will be fundamental. During the period of the country s remarkable industrial expansion, the high tariff wall ensured a maximum of protection to the manufacturing trades, and to commerce generally. The enormously increasing population provided a home market for an abundance of production with no competition beyond that carried on among the American people themselves. Furthermore the tariff enabled the United States to build up a large export business with foreign countries while at the same time ensuring a substantial trade balance in her favour. , - ~ President Roosevelt's proposals therefore mean something more than a question of tariff reform. His main difficulty will be to wean American public and political sentiment from a long-established tai id tradition which in the course of generations has come to be regarded as sacrosanct. The peculiar hold which the tariff has in the political system is due to its having been made a profitable medium for bargaining between politicians and vested interests outside Congress. In his plan to break down the tariff wall there arc also contemplated measures for making the fiscal system politician-proof. A large group ot agencies concerned with tariff questions—such as the State, Commerce. Agriculture and Treasury Departments—are to be linked up under a 'central controlling body which will direct the policy of the Administration without reference to Congress. The President in fact, is asking for a blank cheque in dealing with the tariff The strongest opposition may be looked for in the Senate, which is highly jealous of its authority in dealing with foreign relationships. As lie negotiation of reciprocal tariffs with foreign nations falls within t ie category of treaty-making, the Senate will probably insist upon the exercise of its powers of ratification. In many ways, this is the biggest hurdle the President has yet faced.