Section 317

If the greatest of all wars is economic war, the greatest weapon of international warfare is the tariff. Section 317 of our present Tariff Act puts a new edge on the weapon by providing ready means of retaliation for high tariffs opposed by other countries against our products. But is the weapon too dangerous to use?

This is a question which Mr. Harding is now called upon to answer. Under Section 317, the President is authorized at his discretion to institute retaliatory rates on any commodity if any country is found to be discriminating against United States products. The Tariff Commission is investigating discriminatory tariffs of foreign countries and should soon report. France and Italy are said to be the chief offenders.

There are diplomatic obstacles, however, to any action, especially against France, which would be interpreted as an attempt to bring pressure on French action in the Ruhr.

If the question of retaliation were taken up with any other nation, the inevitable retort would be: " What are you doing about France ? " In addition, if we objected to the tariff preference given by Great Britain, for example, to her colonies over the United States, it would raise the question of our own free trade with the Philippines, which encourages American shipping.

The indications seem to be, therefore, that our tariff policy will be shaped by the State Department.