New Duties

For the first time in history, a President of the U. S. undertook to set new tariff rates. His act was designed for the benefit of the farmers.

According to section 315-A of the Fordney -McCumber Tariff Law (.passed in 1922), the President is empowered to alter the tariff rates on any commodity either up or down, not to exceed 50% of the statute tariff. The action may be made by proclamation after an investigation of the costs of production in the U. S. and in the country which is our principal competitor in a given commodity. Within the limits set, the President is authorized to set new tariff rates sufficient to offset the difference in cost of production between the two countries. This is the so-called flexible provision of the tariff. Until the President took his present action it had never been employed.

In an announcement, Mr. Coolidge declared:

"On the basis of the record of the Tariff Commission's investigation, the President finds;

"1) That the principal competing country in the case of wheat, wheat flour and mill feeds is the Dominion of Canada.

"2) That in the case of wheat the difference in costs of production between the United States and the Dominion of Canada is 42-c- per bushel of 60 pounds. "3) That in the case of flour, the difference in costs of production between the United States and the Dominion of Canada is $1.04 per 100 pounds."

Accordingly the President proclaimed the following tariff rates:

On wheat flour, $1.04 a hundredweight (present rate, 78-c-; limits under the law, 39-c---$1.17).

On bran and other by-products of milling, 7 1/2% ad valorem (present rate 15%; limits under the law, 7 1/2%-22 1/2%). The new tariffs will go in effect after April 5.