THE H.B. TRIBUNE TUESDAY, DECEMBER 10, 1929 AMERICAN WOOL DUTIES

Hawke's Bay Tribune, Volume XIX, Issue 304, 10 December 1929, Page 4

THE H.B. TRIBUNE TUESDAY, DECEMBER 10, 1929 AMERICAN WOOL DUTIES

Our woolgrowers, especially those who still have this season’s clip to market, would no doubt note with interest a week-end cable from Washington which told of the American Senate’s resolutions with regard to the import duties it seeks to impose on foreign-grown wool. This message stated that, following upon an increase of the raw-wool duty from 31 cents to 34 cents per pound, othe,r duties were raised as follows: Scoured wool from 34 to 37 cents; wool on the skin from 25 to 32 cents; sorted or matching wools from 32 to 35 cents. It may be that a good few will have thought that these resolutions have finally disposed of the mater, and that the increased rates will take immediate eSect and, of course, influence the bidding of American woolbuyers. If we read aright what latest American newspaper files have to say on the subject of the Tariff Bill as a whole, then this is far from being the case. Indeed, it to have been pretty generally held that there was every good chance of the measure meeting with its quietus and failing to come into operation. This is mainly-’-the result of the conflict that has arisen between the legislative champions of the agricultural and pastoral interests, on the one hand, and those who, in the interests of home manufacturers, are fighting for higher rates on many classes of finished articles, on the other. When Mr. Hoover was chosen President last year and ths simultaneous legislature elections resulted in some sweeping victories for his fellow Republicans, the party had placed itself under prae tical pledge to assist the farmers by imposing increased import duties upon most farm products. It was mainly in pursuance of this pledge that the new Tariff Bill was introduced, but the immensely wealthy, and therefore powerful, manufacturing interests at once recognised the opportunity of getting something done for themselves. They accordingly entered the arena and insisted upon receiving consideration also. The ostensible plea put forward was that there were several manufacing industries that were in a languishing condition for want of a further tariff protection that would revive them with the result of reducing unemployment. This at once brought the farming interests up in arms with the contention that many, if not most, of the articles for which increased protection was sought were such as were in daily consumption or use by the rural population. This being the case, the practical effect of higher duties being imposed upon them would be to neutralise the benefits which the farmers

would derive from the proposed new tariff upon their products. It is along these lines that the conflict has raged for something like twelve months now, without anything like a mutually acceptable compromise being reached. Beyond this, the difficulty in reconciling the two interests has resulted in something like a split in the Republican ranks and the whole question has acquired a very serious political aspect.

It has to be understood that the Bill originated in the House of Representatives, which had lit under discussion for months before sending it on last June to the Senate, of which a special session was convened for consideration. The schedules as approved by the House have been figuratively torn to pieces by the Senate. This means that when, if ever, the Senate is done with them there must be a joint session of the two chambers in an attempt to adjust differences. As to the prospect of any agreement being reached at such a session the Washington correspondent of the London “Times,” writing at the beginning of last month, said that there were “divergences, both of principle and detail, so considerable as to make reconciliation almost hopeless.” American reports a week or two later strongly confirm this impression, at the same time showing that the Bill was being deliberately delayed in the Senate with the object of “killing” it outright there. All indications, according to latest press comment, point to the measure being, at best, thrown over until well into next year, when, so it is said, it is likely to be dropped altogether rather than have it hanging over the elections of Senators — one-third of the whole number —and Representatives —the entire House—due towards the end of the year. The President has been very anxious for finality to be reached and it is. of course, just possible that his influence may have brought about some change in the situation. This, however, would appear to be unlikely, and in any event there seems little chance of the new tariff having much bearing upon our own wool sales for the current season.