sep 16, 1922 - Fordney-McCumber Tariff (Sept 1922)

Description:

(1922) comprehensive bill passed to protect domestic production from foreign competitors; result: many Euro nations spurred to increase own trade barriers;

Glib lobbyists descended upon wash, helped rates to 38.5%, Almost as high as Payne-ALdrich Tariff of 1909; Duties on farm produce increased; Principle = general rates designed to equalize cost of Amer/foreign production; Degree of flexibility introduced when president authorized, had Tariff Commission to reduce/increase duties by <50%; Presidents Harding & Coolidge were pro-tariff;

High-tariff course set off chain rxn, Euro products hurt, Amer tariff walls hurt post-war chaos; Impoverished Euro needed to sell manufactured goods to US for economic recovery & pay for war debt to US; US needed to give foreign nations chance to make profit to repay debts; US tariffs → more tariff barriers enacted by Euro nations; Deepened int'l economic distress → more justification for Hitler to come to power, Hurt Amer & Euro products

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