Logs are rolling again in Washington as industrial and agricultural groups, together with their Congressional alter egos swathed in the philosophy of Hawley-Smoot, take pot shots at the Reciprocal Trade Agreement Act in general and prospective import duty rate reductions in particular. The Committee for Reciprocal Information has been informed that "lowered import duties constitute a threat to American industry, agriculture, and defense," and Senator Butler, Republican of Nebraska, has revealed that the reciprocal pacts have been "a gigantic hoax on the American people . . . solely for the benefit of other nations." But the faithful of the high tariff flock have been unable to point out a specific case of lowered tariffs or reciprocal agreements adversely affecting American industry. They continue to cry wolf, blind to the lesson they should have learned 15 years ago--that wolves feed on high tariffs and not on low ones.

Reciprocal trade agreements have meant concessions to as well as from the United States. That these foreign concessions have been substantial is indicated, at least partly, by the fact that the value of our exports is now roughly double that of our imports.

But why should we export at all. Politically speaking, any attempt at economic self-sufficiency and insulation would only lead to political isolation. Economically, American industry, geared to its present high level of output, must find outside markets for its surpluses if it is to prevent production and employment cutbacks. Despite the fact that these surplus products leave the country and are of no further value to us, our level of employment and income depends upon our exports. In order to export, then, without materially weakening our real wealth, we must accept imports as repayment. Here the reciprocal agreements play their part, for, by granting concessions on foreign goods, we make importation of them possible and worthwhile. We are repaid in kind, and our foreign customers are furnished the means with which to buy our products.

"But," say the protectionists, "if we do lower import duties and grant concessions, foreign products, with their lower labor costs will force our industries to cut costs and employment." Here the facts stand against them. The quantity of imports to the United States has almost directly correlated with the level of production and business at home. During boom years imports increased, and during slack years, they fell. Above all, the imports of most items have been an insignificant percentage of American consumption of that item. Woolen and worsted imports, for example, have never amounted to 2% of total U. S. consumption, and yet, the American woolen industry is strenuously opposing any tariff rate reductions on woolen and worsted imports.

The crux of the matter is that the American woolen industry and any other American business is prosperous when business conditions at home are good--and then only. America must rid itself of its surplus production through foreign trade if it is to prosper. And America can export only if it accepts imports of approximate value as repayment. Through the medium of the reciprocal trade agreements, the gradual attainment of these conditions has been made possible. The best interests of the nation will be served if the trend continues toward and not away from tariff reductions.