A Word for Low Tariffs?

Dwight Eisenhower had hardly taken office ten months ago when he faced the first test of his "trade not aid" policy. On his desk was a recommendation from the Tariff Commission that he boost the import duty on low-priced brier pipes. Eisenhower, wanting more time and information, sent the recommendation back to the commission for further study. Last week he turned down the proposal.

It is true, said Ike, that the U.S. brier pipe industry is in a slump. Sales of pipes have dropped from 20.7 million in 1948 to 14 million, and employment and production are down. But the slump was not caused by foreign imports; they have increased by only 2,000,000. Said the President: "It seems apparent that the major part of this loss has been due to decline in consumer demand . . . In recent years, there has been a clear and sharp decrease in pipe-smoking in this country."

While the President gave no hint that his action on pipes might be a key to overall Administration trade policy, low tariff advocates were encouraged.

Monsanto Chemical Co. has resigned from the National Association of Manufacturers because it thinks N.A.M.'s "present stand on free trade is detrimental to the chemical industry." Though N.A.M. directors take no official stand on tariff reductions, Monsanto objected to a recent speech in which President Charles R. Sligh Jr. said: "The U.S. should work at a long-term tariff policy that will encourage the foreign producer to ... compete intelligently in our markets over here." Said Monsanto Vice President Francis J. Curtis: "A complete removal of tariffs . . . would cripple Monsanto," since the company would be unable to compete with cheap foreign chemicals.

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