UNITED STATES TARIFF.

Timaru Herald, Volume CXXV, Issue 18614, 9 July 1930, Page 9

UNITED STATES TARIFF.

RETALIATORY MOVEMENTS. THIRTY NATIONS CONCERNED. As concrete evidence of what is going on in the world in relation to the American Tariff Bill, some startling points have been developed by a 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 war. and Mr Simms savs: “Singly and in coalition the nations of Europe have declared war of self-defence against the United States tariff. If carried to its logical conclusion, the battle whioh has now begun may fill American streets with unemployed. “Last vear approximately five billion doliars’ worth of American products were sold abroad, but European leaders are now saying that the next few years will tell a different story. One by one the nations of Europe are 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 I went I saw unmistakable evidence of the coming commercial and industrial war against the United States. In England I saw full-page advertisements calling on the people not to buy any but British-made goods. In France I witnessed a parade of lace workers, protesting against the new high American duty levied against their product. It would be stupid not to expect the French Government to take cognisance of demonstrations of this kind when framing their own 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 i tariff policy.” America Must Have Outlet. It is argued 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 surplus and over-production, 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 more. 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. British Opinions in U.S.A. The very unfavourable trade reaction of the so-called billion-dollar tariff bill pending in Congress throughout Great Britain, Australia and Canada was mentioned by three visitors one day in hotels in San Francisco from those countries. Mr Sydney Davis, of London, owner and editor of trade magazines, declared the United States cannot increase the height of its tariff wall against other lands without expecting trade retaliation of a most spirited character. This will result in the decline of American foreign trade.

he predicted. "If the new and high American tariff bill becomes a law, it is bound to give a great impetus to the growing protection policy feeling in Great Britain. My countrymen see where they can hurt American imports by new tariff legislation, and they will surely pass it.” he said. Mr H. F. Boehm, Australian manufacturer of marine engines at Sydney, had this to say: “The Australian Commonwealth already has a high protective tariff. Its real origin was due to the great need of the Government for an additional yearly income of 50.000.000 dollars owing to the slump in the world* price of wool and wheat. Many of us opposed that policy, while others hoped such a policy would be only temporary. If it is adopted, it will vastly strengthen the ambitions of the high protectionists of my country.” Mr John T. Hamper, Canadian merchant and manufacturer, of Montreal, remarked there is no doubt his country will give preference in trading with Great Britain rather than with the United States under its proposed high duties against Canadian imports. “There has always been an element in Canada which has favoured trading with Great Britain in preference to the United States. If Uncle Sam adopts a ' higher tariff, that element will be 1' strongly fortified, both in numbers and influence,” he declared.