The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-06-22
THE new CUSTOMS LEAGUE.

The nature of the new Customs League or
zollyerein which is said to have been ar
ranged between Germany, AustrO- Hun
gary, Italy and Switzerland cannot be fully
known until the details Of the treaty are
published That will not take place until
after the meeting which is to be held at
Berne in Switzerland on July Goth. In the
meantime it is vaguely stated that the
agreement constitutes an intimate CONNER
cial treaty, which debaTs the signing pow
ers from concluding commercial arrange
ments with other nations without the con-
sent Of all the parties TO the zolyerein.
Whether it goes so far at 10 establish abso-
lutte free trade between those parties, such
as prevails between the States Of this Union,
we are not informed.
Prior to 1879 the tariffs of Germany, Aus
tro-HuDGary and Italy were what we should
call revenue tariffs, framed for the purpose
of raising money, and not designed to pro-
tect native industry or agriculture. In that
year Bismarck inauguTated a new policy by
raising duties on all foreign products
which competed With German products.
The blow was severely felt by the nations
which were coterminous with Germany OF
near neighbors Of The empire. Austria and
some cases prohibitoIy duties on German
products. Thus a war Of tariffs enSued.
Germany shut out Austrian and Hungarian
wheat, and Austria and Italy shut out Ger
man sugar A considerable frontier trade
which bad existed between the three coun-
tries was extinguished. In the meantime
the German Confederation, which had been
formed before Bismarck became a convert
to protection, was not found TO contain exact
provisions regarding trade between the sew
eral States constituting the Empire Of Ger
many. Some Of these States claimed the
right Of making tariffs Of their own and col
lecung duties on goods imported from
Prussia. To settle the dispute, in 1888 all
the States OF Germany, with the free towns
of Hamburg and Bremen, the Grand Duchy
of Luxembourg and a commune in Austria,
were incorporated into ZollVerein. 1t was
provided that absolute free trade should
prevail throughout the territory covered by
the zollverein, and that on the products Of
countries outside of that territory uniform
duties should be collected at Z0llYerein
cusIOm-hOuses.
THIS arrangement has been in operation
for two years and a half. 1t would seem
from the d ispatches that it is now proposed
TO take lnte the ZollyeTein Italy, Austria,
Hungary and Switzerland, and to leave out
Russia and France. The move is evidently
intended TO counter Mr.. BIsine's scheme
for establishing commercial reciprocity
throughout the Americas. Should it sue
coed, the commercial interests of France
would compel it sooner or later 10 enter the
commercial union. When that was accom-
plisbed the trade of the world would be
partitiOned between three groups group
Of European nations, carrying on business
on a free-trade basis with each other, but
leYying duties, which might be protective,
on the products Of the rest Of the world;
group Of American nations, admitting each
others chief products free, but leyylng du-
ties on European products; and third
group, consisting Of the United Kingdom
alone, transactiDg business on pure free
trade basis in every respect, except the ship
p ing interests, with all the world.
Germany's object in proposing the extern
sion Of the zollyerein plan is 10 get the
wheat Of Austro-Hungary. SO as to silence
the clamOT Of the German wOTkmen for
cheap bread, and simultaneously to extend
the market for German sugar in Austria and
Italy. Austria might assent in order to re-
gain the market for her wheat which she lost
ten years ago. and Italy would probably
have no objection TO the repeal Of the Ger
man duty on silk. If the arrangements were
carried cut the United States would lose in
part the German market for American cere-
ais. bow large That is no one knows. Our
total exports to Germany are something like
Sta. 900 a year, but much Of the wheat
that is shipped to Cork or orders goes to
Hamburg and Bremen. II to our export of
wheat to Germ any the export to Italy be
added, the volume Of lest trade might be
considerable. But Germany would be
heavier loser still if her manufactures were
excluded from South America and Mexico
to make room for American goods.