AMERICA’S PROBLEMS.

Waikato Times, Volume 115, Issue 19203, 13 March 1934, Page 5

AMERICA’S PROBLEMS.

PRESIDENT'S POWERS

REVISION OF TARIFFS.

A CRUCIAL ISSUE.

United Press Assn.—Elec. Tel. Copyright

WASHINGTON, March 11

In his request for independent power to revise the tariff President Roosevelt, after completing one year in office, has precipitated the crucial issue of his entire recovery programme. He has done so knowing there will be bitter opposition.

Every wavering congressman will be under pressure from high tariff interests to refuse what lie asks, and with a congressional election in the offing, the President’s own previously happy relations with the Capitol may be at stake.

The President has not glossed over his intention to revise duties downward in return for similar concessions from other countries. “ American exports cannot permanently be increased,” lie said, “ without a corresponding Increase in imports.” This is the plainest speaking any high-tariff country lias heard from the head of its Government in recent years.

It has aroused misgivings in the breast of every member of the Senate and the Hous6 as to the risk of antagonising “ protected " interests in his own constituency.

Alost important of all, the legislation Mr Roosc.elt requests will raise once more the question of the American Constitution. Under it tariffmaking is the prerogative of Congress alone, and critics of the present policy argue vehemently that Congress has no right to transfer this responsibility to White House.

In short, Mr Roosevelt is going to have a battle on his hands during the next few weeks. If the President wins it will constitute his most important victory to date and if hi s plan is defeated his prestige will he impaired for the first, time, and so will his ability to regain the foreign markets America has lost.

DAY-TO-DAY BASIS. FEDERAL DEVALUATION POLICY. WORKING PRETTY WELL. United Tress Assn.—Elec. Tel. Copyright. WASHINGTON, March 11. In testimony to-day before the committee of the House of Representatives which is considering legislation to create a Federal monetary authority, something in the nature of a central bank, the Secretary of the Treasury, Mr Henry Morgenthau, said the Government’s gold policy was experimental and it would require at least nine months’ observation of its working before a more permanent policy could be evolved.

Mr Morgenthau laid stress on the uncertainty of the present situation. “ We are on a day-to-day basis,” lie said.

The view is expressed that the devaluation policy is working “ pretty well.” with prices of farm commodities up 57 per coni., compared with (he world price, and gold G 8 per cent.