FOSTERING AMERICAN TRADE

Dominion, Volume 12, Issue 213, 3 June 1919, Page 5

FOSTERING AMERICAN TRADE

SIGNS OF AN ACTIVE POLICY

THE SCRAMBLE FOR WORLD COMMERCE

'It is announced that the American Railway Commission hopes before long to bo able to arrange for preferential rates for goods destined iov oxport (writes the Washington correspondent of the London "Times" on March 13). The fact that the policy is- not a new one. but was in operation before the war does not diminish the significance of the announcement. It is one of the various steps that the Government is wisely frying to take for the encouragement of loreign trade. The most important step —it was, as a matter of faet, taken long ago—has been the enactment by Congress of a measure known as the Webb Law, relieving companies combining for the foreign field from the narrow restrictions imposed by the anti-trust laws upon companies combining for tho domestic-field. Another sign of Washington's determination not to be left' behind in the scramble for world commerce is that for some time past it has been busy with plans for strengthening the Consular Service, which, even before the war, was not to fie sneered at when it came to helping American merchants. Yet another sign is the activity with which tho Shipping Board is preparing for its peace responsibilities.

■Mr. Frank Taussig, a well-known economist, in his report as chairman of tho President's Tariff Commission, declqres no Utopian visions of universal free .trade aro going to lie allowed to interfere with the protection of American commerce. 1 Important Tariff Report. 'The Tariff Commission's report sweeps aside the Cobdenite aspirations that had been fostered in certain breasts by ■ the President's references to equal trading in his Fourteen Points. It comes out squarely for tho' principle that all countries should be allowed to settle their own fiscal systems—a fact which ought to disarm one sot of criticisms brought bv tho President's opponents against tho Covenant of the League of Nations—and it recommends legislation which wonld put,- sufficient teetli into the American tariff law to enable the United States to retaliate _ against discripiination. Special _ tariff arrangements with separate nations, such as used to bo {he American policy, are deprecated. American policy, the report says, should beto offer all nations the same treatment, and to require in return equality of treatment from all nations, the proposed discriminatory machinery being reserved for use against tho nations refusing to give her what in old days woukl have been most-favoured-nation treatment. The report has been read with great interest here, on the supposition that it weals authoritatively how far the President's doctrine of equal opportunities for every ono everywhere is likely to go in practice. If that is tho case, it represents tho greatest advance that American policy is likely to make towards the consummation of tho ideals of Adam Smith, for tho' Republicans, Who will henceforward oontrol Congress, aro still ■protectionists, and are certainly unlikely to £0 farther than the Democrats, despite the argument of such an authority as. the "Journal of Commerce," which is inclined to think that Mr. Taussig underestimates. the free-trading tendencies unloosed bv tho war.

Even more interesting is what Mr. Taussig says about -the cases in which the United States might tolerate a certain amount of discrimination against her. He recognises that, countries mav have especial political ties and responsibilities which would justify exceptional fiscal relations 'between them. He gives tho relations between 'Cuba and' the United States.as an.example of what ho means. It is. believed ;here that this disposes of the fear that Imperial preference wruld in ; any 'reasonable form be in principle objectionable to Washington. Reciprocity- with Canada. In practice, however, it is clear that the Tariff Commission doubts the feasibility of anything like a comprehensive system of Imperial preference of the typo once 60 much mooted. It gives as a. second set of exceptional circumstances justifying exceptional fiscal relationship geographical proximity, such as that between Spain and Portugal or t]je United StatiS and Canada. Thero are, indoed, signs that the revival of the 1911 Canadian reciprocity project is not impossible, should it be found that Canada is inclined to modifv the policy which defeated the 1011 agreement at Ottawa. Only the other day, for instance, the Republican and' Protectionist New York "San" devoted an eloquent article, entitled "Canada our Trade Jewel," to thfe exposition of the enormoasly valuable growth of American trade with the Dominion in recent years. Be that as it may, it is in the n eantime satisfactory to be able- to note that reasonableness regarding Imperial preference ill principle seems also to obtain outside tho Council,of the Tariff Commission. When people read the cnnou.ncement that imports from the Dominions were to be> relieved of the restrictions imposed upon other_ imports 'by Great Britain. it was feared that .there ivould be another Outbreak such as celebrated our reimposition of these restrictions some weeks ago. Nothing of the sort has so. far happened. It is, perhaps, too early to generalise, but. it looks as though American preoccupation over trade matters in the peace settlement will, if the Taussig. report is as significant as is believed, be mainly for tho guarantee of tho equal use of such agents of international 'trado as hunker coal and cables, presumably under the supervision of the League, apart, of course, from the policy which the report advocates, and the establishment of tho open door in the less advanced pc.rts of the world.- 1