The herald., 1894-12-26
SPAIN AND AMERICA
Relations Between the COun-
tries Badly Strained.
Christmas Celebration at the
White House.
Reported Conspiracy in Hawaii
DIsbelieved.
Slow work the Washington Post
Offcs Likely to Got tho Com
tractor into Trouble.
By the Associated Press.

DS Ine ARbtIhttu tIeSS.
WAsHINGToN, Dec. 25.-lnteresting de-
velopmenta are expected as q result OF
strained relatione between the United
States and Spain over the tariff. Score
tary Gresham has directed Minister
Taylor at Madrid to notify the Spanish
government if the United States is not
removed from the first column list of
countries not having satisfactory treaties
this country will retaliste. 1t is not be-
leved Spain will yield to the protest of
Secretary Gresham, In that event Pres
ident Cleveland will probably issue q
proclamation closing American ports to
products OF Spain The frat effect of
this will be to ehut out enormous ship
ments OF raw sugar which come to this
country, and cause sharp advance In
the price, besides closing refinsries and
throwing out OF work many Thousands.
CUBA's SUPPLY.
Ia official circles it ia naid that Cuba
furnishes eeven -eiRhths OF all the sugar
and Louisiana and Hawaii the rest; bu t
it is said il would be impossible to make
up this seven-eighths no " drawn from
Cuba. 1t is also asserted, therefore. by
those in no way identified with or par
tisl to the sugar retineries. that th o
action would cut them eff from their
supplies and close them out, throwing
10000 employees out OF work.
This statement was made by high
official who had much TO do with the
negotiations, and who ie very sppre-
henaive of its results. lie added that
the ultimate effect OF the war would be
to advance the price OF sugar from 8 to
6 per cent per pound, thus making the
public bear the burden. In levying
duties Spain errsnges countries IN two
columns. The first column includes those
who have not entered into satisfactory
treaty arrangement with Spain. Until
recently Brazil was the only county on
ths 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 first
column" and thus stands apart from all
other countries in the common benefits
Spain grants.
INFECT OF SPANS ACT.
The immediate effect of Spain's ac-
tion has already proved disastrous to
the American trade in -four and this
trade has passed almost exclusively into
the hands of Canada. Under the old
reciprocity arrangement with Spain,
American -four Was shipped to Cuba in
great quantities. But when the u nited
States tariff raised the duty on Cuban
sugar. Spain responded by raising the
duty on American -four. The duty on
-four is 81 75, in tho frat column, while
the Second column" is 81.
AS CanadR is in ths eecond column,
she enjoys an advantage of rs cents a
barrel on flour, and this has proved ans
pie to allow Canada to wre't the Cuba Il
-four trade away from the United States.
1t is understood from authoritative
eources that question has been raised
as to the right OF the president to issu Q
q retaliatory proclamation against
Spain, such as Secretary Gresham has
threatened. This proclamation, If made.
would be under the law OF 1890. which
authorizes retaliation against countries
making unjust determinations against
the United States, but Spain claims sho
is making no unjust determinations il
che arraDges her tariff In two columns,
according to whether countries axe
friendly or unfriendly to her and leaves
tbs countries to choose their own place.
The recent. American tariff putting
sugar on the free list had the effect of
placing this country in Spain's first
column, without any international dis
elimination ON her part. Under these
circumstances it is urged that Secretary
Gresham had no authority to invoke the
retalistory law of 1890.
The contending views are now being
urged between the minister and the
members of the Spanish cabinet, and
definite results are expected this week.