The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1894-12-27
STRAINED RELATIONS.

Washington, Dec 25.-Interesting de.
velOpments are expected at an early date
as result of the strained relations be-
tween the United States and Japan over
the tariff. Spain has already placed the
United States in the first column" and
Secretary Gresham has rejoined by d.
recting Mr.. Taylor at Madrid to notify
the Spanish government that if the United
States is not removed from the first
column" the country will retaliate.
In official circles it is not believed that
Spain will yield to the protests of Gresh-
am. In that event, if the secretary car
ries out his threat of retaliation, Presi-
dent Cleveland will issue a proclamation
closing American ports to the products
of Spain. The first effect of this will be
to shut out the enormous shipments of
raw sugar which Spain makes to this
country. In official circles it is said that
Cuba furnishes seven-eighths of all the
raw sugar used in American refneries,
the other one-eighth comes from Louis
lana and Hawaii, but it is said that it
would be impossible to make up this sew
en-eighths now drawn from Cuba. 1t is
asserted, therefore, by those in no way
identified with or partial to the sugar
them off from their supplies and close
them up, throwing 10000 employees out
OF work. That statement was made by
high official who has had much to do
with the negotiations and who is very
apprehensive of it's results. He added
that the ultimate effect of the warfare
would be to advance the price of sugar
from to 9 cents per pound, thus making
the public bear the burden. In levying
the duties Spain arranges countries in
two columns. The first column includes
| those who have not entered into satisfac-
| tory treaty arrangements with Spain.
Until recently Brazil was the only coun-
try 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 Spain 5
first column and thus stands apart from
all other countries in the commercial
benefits Spain grants. The immediate
effect of SPANS actions has already
proved disastrous to the American trade
in flour, and this trade has passed almost
exclusively into the hands of Canada.
Under the old reciprocity arrangement
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
first column" duty on -four is $4.75, while
the second column is 81. AS Canada is
in the second column she enjoys an ad-
vantage of IS cents on flour, and this has
proved ample 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 pres
ident to issue a retaliatory proclamation
against Spain, such as Secretary Gresham
has threatened. This proclamation, if
made, would be under law of 1890, which
authorizes retaliation against coun-
tries making unjust determinations
against he United States. But Spain
claims she is making no unjust discrimi-
nation. She arranges her tariff in two
columns, according to whether coun-
tries are friendly or unfriendly to her,
and leaves the country to choose their
own place. The putting of sugar on the
tariff list has put this country on the
first list without any intentional discrim-
ination on her part. Under the circum-
stances it is urged that Secretary Gresh-
am has no authority to revoke the re-
taliatory law of 1890 The contending
views are now being urged by Minister
Taylor and members of the Spanish cab
met and definite results are expected
this week