Tariff Increases

Sun (Auckland), Volume III, Issue 657, 8 May 1929, Page 9

Tariff Increases

UNITED STATES PROPOSALS Butter Rate Maintained WOOL SCHEDULE SHARPLY RAISED (Australian and N.Z. Press Association) Received 10 a.m. WASHINGTON, Tuesday TPIE Tariff Bill, designed to bring the 1922 Forduey-Mc Cumber Act up to date, was introduced in the blouse of Representatives by Mr. Willis C. Hawley, chairman of the Wavs and Means Committee of the House.

remains on tlae free list, also raw or uncured hides; but the important wool schedule was raised from the present rate of 31 cents to 34 cents a pound on clean content. Woven wool fabrics weighing not more than four ounces to the square yard and valued at not more than SO cents a pound were raised from 37 cents to 40 cents a pound, and the 50 per cent, ad valorem rate on values from 80 cents to 1 dollar 25 cents a pound was raised from 45 to 50 cents a pound, and the 50 per cent, ad valorem rate on values from 1 dollar 25 cents to 2 dollars a pound was raised to 50 cents, and the 55 per cent, ad valorem rate, while above 2 dollars, the rate would be 50 cents a pound and a 60 per cent, ad valorem rate. The rates on woven wool fabrics weighing more than four ounces to the square yard and valued at not more than 60 cents a pound (now increased from between 60 and SO cents a pound) were raised from 37 to 40 cents a pound, and a 50 per cent, ad valorem rate; between SO cents to 1 dollar 50 cents a pound were raised from 45 to 50 cents, with a 50 per cent, ad valorem rate; and the rate between 1 dollar 50 cents to 2 dollars a pound was raised to 50 cents a pound and a 55 per cent, ad valorem rate. Wheat remains at 42 cents, which is the 30 cent rate of the last Act, plus an increase made by the President under the Flexible Tariff Act; but wheat, flour, semolina, crushed or cracked wheat, and similar wheat products would be increased from 7S cents to a dallor and four cents a bushel. Fresh, chilled or frozen beef would be increased six cents a pound; sheep, lambs and goats three dollars a head; chilled or frozen goat meat five cents a pound; fresh, chilled or frozen lamb, seven cents a pound. The rates on butter, margarine and other butter substitutes would be maintained at 12 cents a pound under the operation of the flexible tariff. A general rate of six cents a pound but not less than 20 per cent, of valorem would be placed on fresh, chilled, frozen, prepared or preserved meats not especially provided for in the Bill. PRESIDENT’S POWER Cotton duties were also materially increased, while the flexible tariff provision empowering the President to alter tariffs up or down by 50 per cent, was left unchanged. The Bill, nevertheless, proposed a change, the basis on which such flexible changes are computable. The present law provides that the President may alter the rates to equalise the cost of production at home and abroad, but because of difficulties encountered in ascertaining foreign costs, the Bill would change the basis to “the conditions of competition in the principal market or markets of the United States, between domestic articles and like or similar competitive imported articles.” Mr. Hawley, in a statement accompanying the Bill, defended the increases on the ground that labour

costs abroad were 40 per cent, under the American wages. Changes in the Bill must be referred back to the Ways and Means Committee for formal approval, but the Republican majority is believed to be sufficient to sarry it.