The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-12-26
Proposed Retaliation on
Spain
FOR HER DISCRIMINATION
Against the Products of This
Country.
TROUBLE OVER THE TARIFF.
There Is Some Question as to the
Legality of the Course
Threatened.

WASHINGTON, Dec. 25.-Interesting de-
velopments are expected as result of the
strained relations between the United
5 ates and Spain over the tariff. Secre-
tary Gresham has directed Minister
Taylor at Madrid TO notify the Spanish
Government that IL the United States is
not removed from the ''first-column" list
of countries not having satisfactory
treaties this country will retaliate 1t is
not believed that Spain will yield to the
protest of Secretary Gresham, and in that
event President Cleveland will probably
issue proclamation closing American
ports to products of Spain. The first
effect Of this will be to shut out enormous
shipments OF raw sugar which come to
this country and cause sharp advance in
price, besides closing the refneries and
throwing out of work many thousands.
In levyipg duties Spain arranges coun-
tries in two columns. The first column
includes those whichha not entered into
satisfactory treaty arrangement with
Spain. Until recently Brazil was the only
country on the globe which Spain had put
in this column. all other countries being in
the second column" which includes
those having satisfactory treaties. The
United States now joins Brazil in SPANS
first column" and thus stands apart from
all other countries in the common benefits
Spain grants.
The immediate effect of SPANS action
has already proved disastrous to the Amer
lean trade in flour. and this trade has
passed almost exclusively into the hands
of Canada. Under the old reciprocity ar
rangement with Spain. American flour was
shipped TO Cuba in great quantities. But
when the United States tariff raised the
duty on Cuban sugar, Spain responded by
raising the duty on American -four. The
duty on flour is 81 rs in the first column,
while the second column" is 81.
lIAs Canada is In the second column she
enjoys an advantage of Is cents barrel
on flour, and this has been sufficient to
allow Canada to wrest the Cuban flour
trade away from the United States.
1t is understood from authoritative
sources that question has been raised as
to the right of the President to issue re-
taliatory proclamation against Spain, such
as Secretary Gresham has threatened.
This proclamation, if made, would be
under law of 1890. which authorizes re-
taliation against countries making unjust
determinations against the United States.
But Spain claims she is making no unjust
determinations if she arranges her tariff
in two columns, according TO whether
countries are friendly or unfriendly to her.
and leaves the countries to choose their
own place. The recent American tariff
putting sugar on the dutiable list had the
effect of placing this country in Spain's
first column, without any intentional dis
elimination on her part. Under these
circumstances it is urged that Secretary
Gresham has no power TO invoke the re-
taliatory law of 1890.
Contending views are now being urged
between Minister and members of the
Spanish Cabinet and defaite results are
expected this week.