Daily Kennebec journal., 1894-12-06
GERMANY'S PROTEST.
She Objects to Our Discriminating
Duty on Sugar.
Secretary Gresham Makes His Report on the
Matter to Congress.

dent : message, upon the herman pfotesb
against discriminating duty OF LILO Of
81 cent per pound on sugar coming from
countries paying an export bounty there
on, was transmitted to Congress, today.
After referring to the note Of the German
AMBASSADOR dated August % last, when
the tariff act went into effect, Secretary
Gresham says: "1he protest is based up
on the fact that such measure could not
he rcconciled with the most favored nation
clause which governs the economic reia-
tions between the two countries, but 1t IS
rather a differentiation whereby the cxpor-
tation of German sugar 10 the United
States is more unfav0rably treated than
that Of several other European countries.
In this relation the German ambassador
says:
9 The granting Of an export bounty is
"a domestic affair Of Germany, the intent
not being to fulfill its treaty stipulations
based upon the most favored nation clause,
and cannot therefore be inferred from this
by any other country.
" He declares the view manifested by
the lcgislatie bodies of the United states
would render the effects of the most
favored nation clause illusory, and would
expose the contracting parties to the
adoption of arbitrary duties which IL Is
the object of the treaties containing the
most favored nation clause to prevent
t'By the tariff act of October ], 1s90,an
additional duty of 1-10 Of a cent per pound
was imposed on sugars imported from
countries that paid "a greater bounty on
expectation Of refined sugar than was paid
on raw sugar. Against this additional
duty it does not appear that the German
government protested. The reason why
no such protest was made, may, perhaps,
l)c discovered by comparison OF the pro
visions OF the two acts. BY the act of 1890
an additional duty was imposed only on
sugars above No. lG Dutch standard, and
on them on the conditions above stated.
I{y the act of 1894 AN additional duty was
imposed ON all sugars, whether above or
below that standard.
1.-The value of sugars imported into the
United States from the German empire
il more than Sl5, 600, 600 annually. Only
s2OO 900 or $500, 600 worth, or about one
seventy fifth, is above No. Is Dutch stand
ard. The effect of the additional duty OF
l-l0 of "a cent under the tariff act OF 1890,
is comparatively insignificant. The effect
Of the additional duty on all sugars under
the act of 1894 is most important, since,
other things being equal, the importer
would not take the more highly dutiable
German sugars till other sugars not sub
iect to the additional duty were absorbed.
The additional duty under the act of 1894,
affects the whole of our large trade in Ger
man sugars.
Secretary Gresham considers the legal
aspects of the German protest in conncc-
tion with the two stipulatiOns of the Uni
ted States-the Prussian treaty of 1928,
placing the commercial intercourse of the
United States and Prussia, not the entire
German empire, on the most favored ma
zion basis, which gave either party the
right. special engagements or reciprocity
being excepted, to take the duties levied
by the other on articles, produce of any
other country and demand the same treat
nent for its own products and manufac-
lures
"it is obviously" says Secretary Ores
ham, 'no answer to this to say that GER
ruin discriminating duties are levied by
one party ON products or manufactures
of other not confined to the latter, or any
country by name, but apply equally to
all countries that may happen to fall IN
n certain category. If there is any other
country, or If there are any two countries,
which, either by name or general classifl-
cation, are exempt from the duty, Especial
ARRANGEMENTS of reciprocity being ex
ceptedD, the requirements of the treaty are
not fulfilled. TO say that discrimination
is not specifically and explicitly national,
or that il applies to more than one coun
try. is mere argumentativc subterfuge,
and Inconsistent with the clear intention
Of the treaty.
The 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 was admit
ted at q smaller rate than rice from else
where and upon the protest of the United
States, Great Britain was compelled to
oqualiZe the duty.
Secretary Gesham contends that the pay
mcnt by country by bounty ON the ex
mort of an article of its produce or manu-
facture, for the purpose of encouraging
domestic industry can no more be consid-
cred discrimination, than can the i'm
position of practically II prohibitive duty
on an importation of an article of foreign
country for the SHINE purpose be consid-
cred. The two measures are the same IN
pflDtlVte. plll INC NuSSbt'h a. w "'iN'
shall be adopted. is a matter of domestic
policy. 1t is u matter in respect of which
nations. in stipulating for equality OF
treatment. have preserved liberty of action
"A protective duty ON importation and
a bounty on expectation are alike inten-
,led. whatever may he their effect, to create
national advantage in production or
manufactures As between the two the
bounty is more favorable to the inhabi-
rants of foreign countries, since 1t tends
TO enable them to get cheaper articles at
the expense of the bounty paying govern
ment.
sIn laying protective duties on
foreign articles instead of paying bounties
ON domestic products, the immediate
effect. if not the object of the law, is to
curtail importations, so long as the duties
imposed are equal in products or manu-
facturcs of all nations, though i'll practice
they may operate most unequaily, and
foreign nations cannot object on legal
grounds. They cannot allege discrimi-
nations in treaty sense.
sit is understood, when treaties against
discriminating duties are made, that gov
.crnincnts reserve the right to favor by
duties or bounties their own domestic pro
duction or manufacture. The additional