The record-union., 1894-12-28
Special to the REcoRp-US1ox.


WASHINGTON, Dec. 27.-The Govern
ment OF Spain, in all earnest desire to
eVade the threatening tariff war between
Cuba and the United States has under
serious ana favorable consideration the
cessIon to Cuba Of the privilege of arrang-
ing her own revenue budget, including
/ tariffs with the United states. This
cuban budget is to be subject To the ap-
provaI of spain. The negotiations now
progressing at Madrid are partly on taess
| lines, but the Stale Department. author
lIIes are proceeding, nevertheless, with
their retai1atory plans, as they 10 nor be-
ueVe SPANS concessions 10 .uya Can ue
carried on and made beneficial .a rs EGr
some months TO come. The significance
oI the matter IN its commercial asgccts
IS fully realized 1t is said Spain y, III 90
careful not to relinqulsh her sovereignty
over The island, nor to permit this TO be-
come the first step toward Cuban indie
pendence. For that reason the contern-
plated privilege will not include full
"hOme rule.'
The general purpose is to give Cuba
advisory powers. Her local officials will
take up the economic necessities Of the
island, estimate the needed revenue from
the tariff duties and advise the Spanish
Government of the duties that should
be levied, and OF the measures which
should be taken IN order to secure the
best results.
In the present contention between
Spain and the United States the Cubans
are soHcltous of retaining their American
market Tor sugar, and it is urged that for
TINS reason the local officials ould un-
uoubtedIy ADVISE lowering of tariff
duties with the United States. SpainS
approval would follow almost certainly,
ner approval IN reality being largely q
formalIty III desire TO show her purpose
OF retaining sovereignty over the island.
w nile 1t IS recognized III Official circles
mere that the changes would be beneficial
10 the CnItcd States, II Is feared such eX-
tenslYe changes in the relations between
Spain and cuba cannot De made within
reasonable time, and that before the
nlteu States can thus secure a reduction
OF tariffs, our trade with Cuua and Porto
Rico Will be irreparablv injured.
The great importing houses of the At
Iantlc cities are cIamOriug at the doors OF
the State Department, and threaten to ap-
peal to Congress for some speedy action
TO protect their business. They represent
that at present the United States is losing
trading of 100000 barrels OF -four per
annum; all our commerce in machinery
and formerly purchased by the Cubaus
exclusively IN the United States; all of
the hardware and large proportion of
the potato trade, VeFy important part of
our exports to the West Indies.
The total reduction in our exports to
Cuba for the year since the lapse of the
reciprocity agreement Will amount to not
less than 80 per cent. The tables pre-
pared by the exporters showing The extent
OF the discrimination against the nited
States products under the minimum
tariff recently imposed by Spain. have sat-
listed the State department that there is
no opportunity for Americans unless the
tarin Is abateu. All the arguments of
Spain in extenuation OF her action in in
creasing the duties have been based upon
the contention that it was the Inevitable
consequence Of the repeal Of the reci-
procity agreement by our Tariff Act, and
this was to exclude the United States
from the benefits OF the minimum tariff
no matter what the disposition Of the
Spanish Government may have been; in
fact, that 1t was the result of our own
act. But at the State Department ii is
held that the reciprocity agreement has
nothing TO do with the case, and that the
President has no discretion under the
law, but must reimpose the discriminate
ing flag duties as soon as he Is satisfied
that the Spanish Government is discrim-
mating against our commerce.