TRADE AGREEMENTS

New Zealand Herald, Volume LXXV, Issue 23034, 11 May 1938, Page 22

TRADE AGREEMENTS

UNITED STATES POLICY CURB ON TOTALITARIANISM [from our own correspondent] XEW YORK, April S The programme of Mr. CorcTell Hull, Secretary of State, for reciprocal trnd»» agreements offers the only practicable alternative to eeonom c ami political isolationism, which would lead ultimately to totalitarianism, Dr. Henry F. Grady, vice-chairman of the L'nited States Tariff Commission, told the Chamber of Commerce of the State of New York yesterday at its monthly meeting.

Assorting that the trade agreements programme "is the only practical way to rebuild our foreign trade," Dr. Gradv told the chamber that excesses of exports over imports of more than U4.OIJU.UOI) dollars in 1'.).'5() and 262,000,000 dollars in 1937 demonstrate

"the fallacy of the contention that trade agreements have caused the country to be inundated with imports." "Efforts to restrict our import trade, whether by tariffs or import excise taxes, will lead inevitably to far-reaching production controls and regimentation," Dr. Grady said. "We are dealing here with a situation where' one or two drinks may well lend to drunkenness. .

"Those who lightly talk of thp desirability of economic self-sufficiency and political and economic isolationism do not realise that policies directed to the achievement of such ends must lead us along the pathways of those countries which, because of resources more limited than ours, have gone much further in the direction of totalitarianism than necessity would force us in the beginning." Declaring that "democracy _ and capitalism are essentially international" and that "national socialism is in practice anti-international," Dr. Grady urged his hearers not to Jet '-'selfish groups, cither regional or industrial" defeat the purpose of the trade agreements. ■ "Trade barriers as such are irritants and a cause of those frictions and trade rivalries which may lead to war. but this factor is far less important than the relation of tradecontrol technique to national aggression." Dr. Grady said. "Mr. Hull's programme 1 seeks-to lead the world toward economic demobilisation and peace."