The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, OCTOBER 7, 1929. THE CLASH OF TARIFFS.

Hokitika Guardian, 7 October 1929, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, OCTOBER 7, 1929. THE CLASH OF TARIFFS.

While negotiations are proceeding apace in regard to the arbiti ament, oi war, tliere is still the ulash of tariffs within view, and tho possibility of a fiscal war which might he a rather disturbing factor. It is possible for Mr Ramsay MacDonald, while in the United States, to drop some friendly counsel on the matter, for; as an exchange remarks, it is still impossible to say in wlmt form the new. American tariff will eventually emerge. Just now it is being subjected to severe criticism from many quarters in tlie United States by. .Illc various interests concerned; and •! Senator IBorali probably represents, public opinion accurately enough when be describes it as' offering “insufficient protection to tho farmers and unnecessary protection to the manufacturers.’.’ Across the border, it is natural that Canada, because of her proximity to the United States, should display some concern about tho ncjw tariff. Some week ago it was reported from Ottawa that Canada has decided to retaliate against tho United States, and that bvhile raising her own duties against many American products she will at the asme time open her doors more widely to inter-Empire trade. But anxiety and apprehension about this matter arc not by any means confined to America. In Europe the throat of increased American duties has provoked demonstrations of resentment as well as alarm, and in all countries it is being seriously considered whether it may not bo possible to form some sort of fiscal federation by which the members may protect themselves against American commercial aggression, while at lie same time lowering their fiscal harriers as against each other and securing for themselves the advantages to be gained by an international Zollvorein or Customs. Union. Tt is a ’significant fact that when a few weeks ago M. Briand suggested to the Toagne of Nations his scheme for a Federated States of Europe, several of the delegates, while deprecating the idea a. “diofinito rohtieal bond,” hinted that, much might ho done in the way of a “provisional or temporary understanding to givern tariffs.” On this v.«ig:o.ilriv point, as is well known, Mr MacDonald and his colleagues ■hr|ld very pronounced views. . The President of tho Board of Trade, Mr W. Graham, speaking at Oxford some weeks ago, reminded his audience that

Economic Conference of 1927 had definitely recommended “freer trade and a progressive reduction of tariff barriers.’’ Since then lie has suggested to the Assembly of the League of Nations at Geneva- that “no country should in any way increase its existing tariff for two years,” and that in the meantime another Economic Com f.qrence should consider the permanent lowering of tariff barriers. It is difficult to share Mr Graham’s faith in the possibility of inducing .the European States to sacrifice their own domestic industries in the cause of world p<vacc. But Canada at least,is much impressed, by these proposals, and the Canadian Minister of Customs, having just returned from Geneva, has warned his Government that, in view, of thq, (threatening .tone of American fiscal policy, it would bo well -for Canada to bold aloof from any definite international understanding about tariffs at least for the.-time being. There it? therefore, much useful work for the Prime Minister of Great Britain to do while on the American Continent, outside the matter which is having such very special attention. Mr MacDonald is also to visit Canada, and there (in particular much .might be done even in camera to reach conclusions regarding any suggested policy to avoid a disorganising clash of tariffs, which in the end do so much to govern international trading.