increase in our exports to the agreement countries during the first 9 months of 1937 over 1936 amounted to $277,000,000, while the value of the increased imports from these countries was $203,000,000. This trade-agreement policy has won international recognition as an effective instrument for bringing about more rapid recovery and has been endorsed by the International Chamber of Commerce as a most practical means for improving the internal and external economy of all nations. We condemn the use in this and foreign countries of excise and turn-over taxes imposed solely on imported commodities, which tend to destroy the effectiveness of concessions granted in reciprocal trade agreements. 1938-NEW YORK This Convention continues its support of the reciprocal trade agreements program as a most effective instrument for the expansion of world trade. The Convention commends the objectives of agreements designed to enlarge and stabilize foreign markets for American products of agriculture and industry. The results to date have been encouraging. It is significant that the value of American exports to the countries with which reciprocal agreements have been concluded have shown a greater rate of growth than to the nonagreement countries. The Convention looks forward to the early conclusion of agreements with Great Britain and the British Crown Colonies and with Canada for the benefits they will bring in themselves and for the impetus they will give to the expansion of world trade on a nondiscriminatory basis. 1939 NEW YORK This Convention continues it support of the reciprocal trade agreements program as the most logical and effective method of permanently strengthening America's trade relations. The Convention urges the negotiation of further agreements, especially with Latin American countries, as a practical contribution to intercontinental economic solidarity. It is axiomatic that we can increase exports to Latin America only if we buy more of its products. We believe this can be accomplished without injury to our domestic production. The The results to date of existing trade agreements have been encouraging. value of American trade with the countries with which reciprocal agreements have been concluded has shown a greater rate of growth than that with the nonagreement countries. We look forward with confidence to the maintenance of the trade-agreement principles during the present conflict in Europe and after its conclusion. THE UNITED STATES POTTERS ASSOCIATION, New York, N. Y., March 4, 19340. BRIEF OF THE UNITED STATES POTTERS ASSOCIATION MEMORANDUM OF THE UNITED STATES POTTERS ASSOCIATION IN OPPOSITION TO EXTENDING THE AUTHORITY GIVEN TO THE PRESIDENT UNDER THE TARIFF ACT OF 1930 AS AMENDED AS PROVIDED FOR IN THE DOUGHTON BILL, HOUSE JOINT RESOLUTION 407. (By John E. Dowsing, tariff counsel) The bill as originally We oppose the extension of this bill for several reasons. passed has been declared by eminent lawyers in and out of Congress as definitely unconstitutional. We believe that Congress on the whole realizes the mistake that was made in divesting itself of its constitutional authority to enter into treaties with foreign countries and giving that authority to the Secretary of State. While the bill ostensibly empowers the President to enter into these treaties it is, of course, known and understood that the Secretary of State is the man who really enters into the treaties. These treaties are prepared and arranged without proper regard for the American industries and rarely, if ever have American industries been accorded the proper opportunity to be heard on matters affecting their very existence. The conduct of these treaty hearings and arrangements are, as no doubt your committee is thoroughly aware of, very one sided. The representatives of the country negotiating such treaties are fully informed of the status of the American industry that is to be affected by lowering of the tariff on the competitive merchandise when imported into this country, but the American industry is not afforded the same opportunity to know the reasons that are advanced by the negotiating country why they should be given preference on some rate of duty on some commodity. Further, we do not believe that when our domestic industries do appear before the committee that full weight is given to the testimony presented at that time by said American industry. In other words, that before the public hearing of the industry to be affected is permitted to come forward and present its case the concession to be given is practically concluded and arranged for and for that reason no great attention is paid to what American industries submit. We feel that this manner of writing a new tariff seriously infringes the prerogative of Congress and that is what these treaties amount to, the writing of a new tariff. The rates of duty are not only lowered but a new language is introduced changing completely the tariff set-up. This is too serious a matter to longer permit Government employees thoroughly unqualified by any business experience to pass on the needs of American industry and its millions of workmen in not only slashing the tariff to the contracting country but also broadcasting this beneficial concession to all other countries of the world regardless of whether such countries concede anything whatever for this benefit of sending their goods into this market at a greatly reduced rate of duty. Why this act was ever called in the first place a reciprocity act is not clear to anyone as it is not reciprocal in any sense nor intended to be. When through mutual concessions we agree to reduce tariff rates on a particular import from a given nation, we automatically extend the same concession to all nations under the favored-nation principle irrespective of whether they give us reciprocal concession. We do not believe that a legitimate reason can be presented by the Department of State for the continuance of this Reciprocity Act, particularly in view of the fact that it has definitely failed to accomplish that of greatly increasing the exports of our goods. At the time House Joint Resolution 96 was passed the State Department urged its passage on the grounds that it would increase our export business. The statistics show that the increase in exports has not been with the countries with whom these treaties were entered into. On the contrary, the increased exportations have been either with countries that we do not have treaties with or with those countries such as Japan, Germany, Italy, Great Britain, etc., to whom great quantities of materials necessary to carry on the war with which said countries are now engaged and would have been done regardless of any treaty. No treaty had anything to do with the terrific amount of exports of scrap iron, steel, automobiles, parts of automobiles, airplanes, etc., to Japan for the past 4 or 5 years. The same applies to the sale of war materials to Germany, Italy, Great Britain as well as France. Hence, it is apparent that the very purpose urged by Secretary Hull for the passing of the reciprocity bill in the first place is without merit and certainly should not be considered as a reason for extending the unconstitutional measure. It has been claimed that these reciprocal treaties were necessary to adjust the difficulties of agriculture. Under these treaties millions of dollars worth of agricultural products have been imported into this country at greatly reduced rates of duty. The American farmer has thus been deprived of the sale of millions of dollars worth of his products. In no instance have these so-called reciprocity trade treaties been advantageous to American industry and agriculture but the contrary is the case. We trust that the committee in its wisdom will not recommend a continuance of this Reciprocity Act and thereby fasten this very unjust legislation around the necks of American industry and American labor. It is respectfully submitted that your committee should be primarily interested in bringing about prosperity here in this country and giving employment to our millions of unemployed workmen. Jobs and jobs alone are the only thing that will bring back prosperity and jobs cannot be given unless our factories are permitted to work at full speed. We can, however, of course, through short-sighted policy continue to take care of the unemployed of Europe and let our millions walk the streets while various forms of taxes must be inaugurated to take care of these unemployed. On the one hand we will be declaring for America first in preference to the pauper countries of Europe, while on the other hand we will be declaring for free trade and the deliberate handing of our markets over to the foreigners. Surely there can be no question as to which the Senate Finance Committee should choose. If Congress honestly feels that the present tariff act should be modified, then a bill to that effect should be presented and hearings held before subcommittees so that American industries may have the opportunity of presenting their side of the case and have the facts and testimony adduced carefully considered and weighed and not permit a committee from some other branch of the Government to write an existing law off of our statute books. Supplementing this memorandum we wish to respectfully refer to our testimony given before the Ways and Means Committee March 8, 1934, appearing on page 227 of the published records and also on page 362 of the published records of the hearings before the Committee on Finance, United States Senate, February 10 through 15, 1937. Our objections set forth at that time are just as pertinent today. AMERICAN WATCH ASSEMBLERS' ASSOCIATION, INC., Committee on Finance, United States Senate, GENTLEMEN: The American Watch Assemblers' Association, an organization national in scope and representing more than 80 percent of importers of watches and watch parts wishes to go on record as unreservedly favoring the continuance and extention of the Trade Agreements Act. The vital task now confronting our domestic economy and the prosperity of the American people consists of arresting those forces of intense nationalism, such as high tariff walls, which are destroying foreign trade and thereby laying the foundations for world wars into which our own country must inevitably be drawn. Our industry employs American labor running into the thousands in the assembling of watches imported from various European countries, especially from Switzerland. The reciprocal trade agreements program has generally resulted in increasing imports and exports for the benefit of American industry as well as for the benefit of international goodwill. Valuable concessions have been obtained from Swiss manufacturers that have benefitted our industry as a result of these agreements. Smuggling, which was one of the most vexing problems confronting American watch manufacturers and dealers, has been almost entirely wiped out by virtue of the cooperation given by Swiss manufacturers under existing reciprocal trade practices. In contrast to the chaotic, prohibitive tariff rates in existence under previous tariff acts, the Trade Agreements Act of 1934 has placed the establishment of rates in the hands of experts qualified by training in the fields of commerce, agriculture, labor and industry in the scientific adjustment of tariffs to conform with shifting international circumstances and to correspond with the ever changing needs of the American people. The beneficial results following the enactment of this legislation make it imperative that it be continued. The American Watch Assemblers' Association speaks not only for its own members but for the thousands of small retail dealers who are dependent upon us for their continued existence in business. We urge the Committee on Finance to recommend without qualification the continuation of the existing trade agreements act in the interest of our industry in particular and in the further interest of general world peace promoted by such legislation. Enclosed you will a list of members of the American Watch Assemblers Association. Very respectfully yours, I. ROBBINS KORNBLIET, AMERICAN WATCH ASSEMBLERS' ASSOCIATION, INC., MEMBERSHIP LIST Ace Watch Co., 80 Nassau Street, New York City. Adels, L., Co., 64 West Forty-eighth Street, New York City. Aisenstein-Woroneck & Sons, Inc., 630 Fifth Avenue, New York City. Bayer, Pretzfelder & Mills, Inc., 15 Maiden Lane, New York City. Benrus Watch Co., 200 Hudson Street, New York City. Bulova Watch Co., 580 Fifth Avenue, New York City. Cardinal Watch & Diamond Co., 720 Olive Street, St. Louis, Mo. Epstein, Morris & Bro., 580 Fifth Avenue, New Yor, City. Evkob Watch Co., 41 Maiden Lane, New York City. Gothic Jar-Proof Watch Corporation, 10 West Forty-seventh Street, New York City. Graef, Jean R., Inc., 9 Rockefeller Plaza, New York City. Gruen Watch Co., Time Hill, Cincinnati, Ohio. Gsell, R. & Co., Inc., 15 West Thirty-seventh Street, New York City. LaSalle Importing Co., Inc., 93 Nassau Street, New York City. Lauret Watch Co., 48 West Forty-eighth Street, New York City. Longines-Wittnauer Co., Inc., 6 West Forty-eighth Street, New York City. Maire, O., Inc., 45 Lispenard Street, New York City. Maylan, A. R. and J. E., 264 West Fortieth Street, New York City. Morris, Norman M., Inc., 608 Fifth Avenue, New York City. Movado Watch Agency, Inc., 610 Fifth Avenue, New York City. Muney, Wm. A., Inc., 630 Fifth Avenue, New York City. Norman Watch Co., 82 Bowery, New York City. Ollendorff Watch Co., Inc., 20 West Forty-seventh Street, New York City. Pierce Watch Co., Inc., 22 West Forty-eighth Street, New York City. Pollak, Frank, 72 Bowery, New York City. Racine, Jules & Co., 20 West Forty-seventh Street, New York City. Reliable Watch Co., Inc., 116 Nassau Street, New York City. Rima Watch Co., 15 Maiden Lane, New York City. Rodman, S., Sons, 64 West Forty-eighth Street, New York City. Roxy Watch Co., 12 John Street, New York City. Savoy Watch Co., Inc., 62 West Forty-seventh Street, New York City. Schultz, J., 15 West Forty-seventh Street, New York City. Schwob, L. A., 22 West Forty-eighth Street, New York City. Sickles, Louis, 1015 Chestnut Street, Philadelphia, Pa. Solow, Harold, 9 Maiden Lane, New York City. Tavannes Watch Co., Inc., 608 Fifth Avenue, New York City. Wyler Watch Corporation, 9 Rockefeller Plaza, New York City. Paul Breguette Watch Co., 601 Thirteenth Street NW., Washington, D. C. Senator PAT HARRISON, NATIONAL FOREIGN TRADE COUNCIL, INC., Chairman, Finance Committee, Senate Office Building, Washington, D. C. MY DEAR SENATOR HARRISON: Since our committee presented its views on the renewal of the Reciprocal Trade Agreement Act, bill H. J. Res. 407, during the hearings before the House Ways and Means Committee (see pp. 2455-2469 of the printed record), there have been several important developments, which we desire to bring to your attention in the following statement. We request that this additional statement be included in the printed record of the hearings before your Committee. The reciprocal trade agreement in effect between Cuba and the United States has been most beneficial to both countries. In 1933, the last year before the pact with Cuba, our exports to the Island were valued at $25,000,000 and our imports at $58,500,000. In 1939, the trade had expanded both in imports and exports; our imports from Cuba being valued at $105,000,000, and our exports to Cuba at $81,000,000. The reciprocal trade agreement between the two countries has had an important part in this development of trade, for the concessions exchanged between the two countries have been mutually beneficial. Not only have we made larger sales to Cuba, but we have also enjoyed a larger percentage of the total Cuban imports. Of the 1933 Cuban imports our share was 54 percent, in 1938 it was 80 percent, the most favorable ratio of any country with which we trade. Our exports to Cuba have been of benefit to all groups in the United States. In 1939, farm products accounted for 359,000 tons, or 42 percent of all the tonnage imported by Cuba from the United States. Manufactured items totaled 335,000 tons or 39 percent. Lumber comprised 10 percent of the export tonnage and the remaining 9 percent represented miscellaneous goods. These figures are based upon the tonnage figures as issued by the Agencia More of Habana, Cuba. Our own Department of Commerce figures are not available in detail for 1939 as yet, but by major classes they compare with corresponding figures for 1933 as follows: The 15 leading categories of products purchased from the United States by Cuba in 1939 were, according again to the Agencia More: Some notable benefits which American farmers have derived from the reciprocal trade agreement with Cuba are shown by the following gains in 1938 over 1933: In addition, American manufacturers also benefited, for Cuba increased in 1938 over 1933 her purchases from the United States of: Cuba also purchased more American radio apparatus, structural steel and other metal products, upper and patent leather, paperboard and writing paper, glass containers, certain non-proprietary-druggist preparations, cigarettes, and toys. American consumers and industry also benefited through increased purchases of Cuban sugar, tobacco, fruits and vegetables, and rum. Cuba's economy depends upon her sales of sugar to the United States, and increase in these sales are of the results of the reciprocal trade agreement. Cuba has consequently enjoyed better economic conditions and is able in turn to make larger purchases of American products. She needs the continued application of the pact. As the reciprocal trade agreement has played such an important part in Cuba's welfare and in America's sales to the island, we again record our full approval |