The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1894-12-06

| AIOdbAOSs
Washington. December 5.--The report of
| the Secretary of State. mentioned in the
| Presidents message. upon the German pro-
test against the discriminating duty of a
| tenth of cent per pound on sugar coming
| from countries paying export thereon, was
transmitted to Congress today.
After referring to the need of German
ambassador, datedsAugust 2Sth, last, when
the tariff act went into effect, Secretary
Gresham, says:
The protest based upon the fact that such
measure could not be reeonsidered with
1.-THE most favored national' clause which
governs the economic relations of the two
countries, but it is rather a differention,
whereby the expectation of German sugar
to the United States is more unfavorably
treated than that of several other European
countries. In this relation Germany's am
bassador says: The granting OF export
bounty is domestic affair of Germany, the
intent is not to fulfill its treaty stipula-
tions, based upon the mopt favored nation
clause, and it cannot therefore be inferred
from this by any other country.
He declares the view manifested by the
legislative bodies of the United States
would render the effects of the most favored
nation clanse illusory, and would expose
the contracting parties to the adoption of
arbitrary duties, which it is the object of
the treaties containing the most favor ed
nation clause to prevent.
By the tariff of October ], 1890, an addi-
tional duty of a tenth of cent pound is
imposed on sugars imported from countries
that paid greater bounty on exnertation
of refined sugar than paid on raw sugar.
Against this additional duty it does not ap-
pear that the German government protested
the reason why no such protest be made,
may, perhaps, be discovered by comparison
of the provisions OF the two acts. BY the
act of 1890, additional duty is imposed only
on sugars above number sixteen. Dutch
standard, and on them on the conditions
above stated. By the act of 1894, al addi-
tional duty is imposed on all sugars,
whether above or below that standard The
values of sugars imported into the United
States from the German Empire is more
than fifteen million dollars annually. Only
two or three hundred thousand dollars
worth, or about one-saventy- are above
the number sixteen Dutch standard, and
the effect of the additional duty of tenth
of a cent under the tariff act of 1890 is COM
additional duty on all sugars under the act
of 1894 is most important. since, whether all
things being equal the importer would not
take tho more highly dutiable German sugar
still other sugars. not subjecte to additional
duty are absorbed. The additional duty un-
der the act of 1894, affects the whole of our
large trade in German sugars.
THE LEGAL ASPECTS.
Secretary Gresham considers the legal
aspects of the German protest in connec-
tion with the two stipulations of the
United States. The Prussian treaty of 1928.
placing commercial intercourse of the
United Safes and Prussia, not the entire
German Empire, on the most favored nation
basis. which give either party the the right,
special engagements or reciprocity beiLg
excepted, to take duties levied by the other
on articles of produce or manufacture of
any other country and demand the same
treatment for it's own products and manu-
facture.
1t is obviously, says Secretary Gresham,
no answer to this to say certain dis
eliminating duties, levied by one party on
the products or manufactures of the other
are not confined 60 the latter, or any
country by name. but apply equally to all
countries that may happen to fall in GER
tain category. If there is any other
country. or il other countries which either
by name or general classifcat ations are ex-
empt from duty Especial engagements of re-
ciprocity being exempted) the requirements
of treaty are not fulfilled. To say the dis
eliminating is not specifically and explicit
ly national or that itsapplies to moro than
one country, is more of an argumentiye
subterfuge, Inconsistent with the clear in
tention of the treaty. TIE commercial
treaty of 1915, between the United States
and Great Britain is almost identical in
language with the subsequent Prussian
treaty. rough rice from the West coast of
Africa being admitted from the West coast
of Africa at smaller rate than rice from
elsewhere, and upon the protest of the
United States, Great Britain was compelled
to euualize the duty.
SECRETARY GRESHAM CONTENDS
the payment by the country of the bounty
nm exportation of the article of its produce
or manufacture, for he purpose OF encour-
aging domestic industry Lan no more be
considered as discr iminating, than can the
imuosition of a prac ically prohibitive duty
on the Importation of an article of d foreign
country, for the same purpose. be so con-
sidered. The two measures are the same in
nrincipIe. and the question as to which shall
be adopted, is a matter of domestic policy
If is matter in respect of which nations,
in stipulating for equality of treatment.
have preserved the liberty Of action. The
protective duty on importation and bounty
ON expectation alike are intended, whatever
NAV be their effect. to create the national
advantage in production OF manufacture.
As between the two, the bounty is the more
favorable to the inhabitants of foreign
countries. since it tendsito enable them to
got cheaper articles at the expense of the
bounty paying government.
In laying protective duties on foreign
articles instead of paying bouuties ON
domestic pFouucts the immediate effect if
not the object of the law is TO curtail i'm
norts tions. and SO long as duties imposed
are equal ON products ON manufactures of
all nations, though in practice they may
operate most uRa9psily, the foreign nations
cannot object on legal grounds. and they
cannot allege determinations in the treaty
sense, 1t ia understood. when treaties