New-York tribune., 1896-07-30
INDUSTRIAL GERMANY.
III.
THE COMMERCIAL TREATIES BASED ON
REcIPRocITY-wHERE AMERICANS
HAVE MUCH TO LEARN

Observation-Disclosures AMERICANS
HAVE MUCH TO LEARN.
Frankfort. July 2.
Frankfort -on the Main Is the business centre
Of South Germany and after Berlin the richest
city in the Empire Once the seat OF the Diet
and the diplomatic capital Of the Confederation.
where Prince Bismarck served his apprentice
ship in diplomacy, It is now the favorite resi-
dence Of German millionaires and capitalists.
1t is a handsome. well-built town. with luxuri-
Gus hotels. elegant residences broad avenues
and artistic statuary. 1t has many interesting
historical relics like the R0mer. the medaeval
Town Hall: or the Kaisersaal where the EN-
perors dined with the Electors; the ancient
bridge over the Main; but these do not make so
deep impression upon the stranger as the
modern and progressive aspect OF the city. Not
even the traditional fountain from which red
and white wine flowed on the coronation night
touches the visitors Imagination. II 10 the
modern Frankfort, with It's air OF commercial
importance and financial stability. that nlls the
eyes and shuts out the memorials Of q medieval
past and Of Imperial traditions. The capital In
vested in chemical works and manufactures
in South Germany has been largely supplied
from Frankfort. The town is Identified with
the Industrial movement, which has
changed the face OF modern Germany Con-
servative as a millionares capital must be- 1t
is also progressive and enterprisng and thor
oughly in sympathy with the great policies
which have transformed the fortunes OF the
Empire.
AN AMERICAN POLICY.
The Industrial revival OF Germany has been
brought about under a combination OF the pro-
lection and reciprocity policies Prince Bis
marck substituted protection for free trade In
1879 and his successors have had recourse to
methods of commercial diplomacy analogous
to those advocated and applied BY Secretary
Blaine under the Harrison Administration. The
first effect Of protection was the displacement Of
British manufactures in the German market
Twenty years ago in nearly every shop window
In all German towns displayed the sign
English goods sold here" That placard is now
seldom German manufacturers have Sc
cured control Of the home market under pro-
lection. They have also invaded England and
other foreign markets. and. aided by the enter
prise and commercial intelligence Of the mer-
chants. they have rapidly enlarged their export
trade. This was the secondary effect Of pro-
lection. 1t converted a stagnant industrial En-
pre into an active and formidable competitor
with Great Britain In the markets OF the world
In order to impart an additional impulse TO this
commercial policy. The German Government
wisely decided TO sacrifice It's revenues whenever
there promising opportunity for making
a good bargain which would promote reciprocity
In this way protection and reciprocity have
been in operation two analogous policies hav-
ing in view the same general objects. namely
the development Of home industries and the
opening OF foreign markets.
The German system Of commercial treaties IS
,nS: :l,.
principle OF reciprocity introduced In American
diplomacy by the Harrison Administration and
abandoned by the Cleveland Democracy at the
dictation Of the Sugar Trust; but there Is no
essential difference between the two policies.
The commercial agreement made in 1891 be-
tween Germany and the United States one
OF the reciprocity treaties negotiated under
the Aldrch clause OF the Tariff Act Of 1890: and
It also fitted In with the series OF commercial
conventions which Germany had negotiated
with Austria Hungary Italy and other Euro
pean countries. 1t is the only agreement Of this
kind which has been abrogated by Germany,
and the exception did not arise from any fault
on her part, the Democratic Administration in
America being solely responsible for 1t. The
reciprocity policy of Germany has been ex-
tended. instead OF being contracted. since the
suspension Of the agreement with the United
States The new convention with Russia is one
OF the most important and successful of the en-
Tie series. and it Is operating 10 increase the
German export trade
WONDERFUL DEVELOPMENT
The convention went into effect March 90.
1894 after a tariff war Of eighteen months dur
ing which reprisals had been challenged and
carried into execution each side The Ger
1loI with ad
for the Russian market As soon the con-
vention was in operation these manufactures
were sent across the frontier and a great i'm
pulse impaired TO foreign trade, which has
not yet spent its force Germany had agreed
to reduce It's tariff rye. wheat ores. minerals.
petroleum. hides and other products. and Rus
sia in return. had lowered its tariff schedules
on chemicals. cOlors. paper. leather manufact-
ures Of iron and steel millinery, dress goods
various articles OF luxury. agricultural imple-
ments and machinery. During the last two
years there has been a great expansion OF Ger
man trade with Russia In all these branches OF
The iron and steel exports from
Westphalia have more than trebled the leather
trade Of Mannheim has been doubled: the paper !
trade OF Leipsc has been doubled also. and
the textile Industries Of Saxony and Of Crefeld, |
Barmen. Elberfeld and other towns in East
ern Prussia have been greatly benefited. These
results have not entirely reconciled treasury Of
ficials to the loss OF revenues caused by the low
ering OF the German tariff the Russian
frontier and there is considerable discomfort
among the agrarian classes in Germeny over the
Increased importations OF rye and wheat but
the increase Of the export trade is 80 enormous
that the reciprocity policy is considered worth
much more than II costs. Each nation makes
concessions which do not paralyze its own in
iustries and obtains in exchange substantial