New-York tribune., 1900-12-07
RECIPROCITY AND TAXES.
REDUCTION OF REVENUE WILL WORK
AGAINST RATIFICATION OF COM
MERCIAL CONVENTIONS.
TBT TELEGRAPH TO THE rRrBuxE.I

tbf TELEGRAPH TO THE TRIBUNE-l
Washington. Dee. 6.-President MeKinley's an
nouncement in his annual Message to Congress
that additional commercial conventions have
been concluded under the general limitations OF
the fourth section Of the Dingley Tariff law
with Nicaragua, Ecuador and the Dominican
Republic. with Great Britain on behalf Of Trini-
dad, and with Denmark on behalf of St. Croix
in the West Indies. is likely to force to the
front again in the Senate the contentious OF
last session over the ratification OF the pro-
posed commercial treaty with France. Several
similar conventions, of which that with the
French Government was the most important
failed TO reach a vote last winter because Of
radical differences of opinion between the Sen
ate Committee on Foreign Relations and the
Senate Committee on Finance. The Foreign Re
lations Committee favored ratification on the
ground that the concessions offered by France
opened a new AID valuable market for certain
classes Of American exports while the Finance
Committee opposed ratification on the ground
that the advantages obtained by treaty were
not general or obvious enough TO justify ma
terial departures from the scheme Of tariff
duties established by the Dingley act. Critics
OF the reciprocity treaties in the Senate argued
that any extensive resort TO special conven-
tons would result in the practical transfer OF
the taxing power from the two houses Of Con-
empowered to strike tariff bargains with foreign
countries. Besides. the remission Of tariff duties
on any large or varied scale would impair the
revenue producing power of the Dingley act and
upset all the calculations of income on which
IT'S trainers had worked.
The argument made against the French treaty
was applied with equal point 70 the other minor
conventions concluded in 1899. and the conse-
quence was that the first session Of the present
n
the pending agreements. Last spring the time
within which ratifcations could be exchanged
by France and the United States was extended
one year. and the confidence Of the Administra-
ton that approval Of the French convention
would finally be obtained was shown not only
in that extension, but in the subsequent ar
rangement Of treaties with Nicaragua Ecuador
and the three West Indian islands and IL the
Presidents notice to Congress that commercial
negotiations with other Governments were still
in progress.
THE PROSPECTS OF RATIFICATION
Notwithstanding the State Departments zeal
10 push commercial reciprocity with other ma
tions there is no very substantial hope Of Sc
curing the Senate's approval at this session Of
one or all Of the new treaties. II is possible
that the French agreement will be ratified, more
perhaps. from desire 10 respond 10 that Gov
ernment's friendly advances than from any con-
viction that the concessions gained VIII Offset
those yielded. But so long as the present oppo-
sition 70 the general policy Of tariff making by
treaty maintains its vigor favoring two-thirds
vote on the other conventions is not likely 10 be
secured by the Foreign Relations Committee
leaders.
The fact that the House Ways and Means
Committee has just brought in bill cutting on
some $40 000. 900 Of the Treasurys income, ana
that the Senate is prepared ~ carry the pro-
posed reduction 70 $40 100000 or S0OOOO,OOO VIII
also initiate seriously against the approval or
any commercial conventions at this session
II a cut Of $50000000 is 10 be made in internal
revenue taxation, the Finance Committee will
probably be reluctant 10 advise z further pairing
down Of the tariff duties through treaty conces-
sions to various countries now sending dutlabl
exports here. The Secretary OF the Treasury
has advised a decrease in the revenues OF only
S30OOO000 The House Of Representatives is
already planning TO cut S1000O000 deeper into
the Treasury's income, and in the nature OF
things the Senate will have to grant additional
demands for relief which have been Ignored or
refused in the popular branch. The outcome
Will be that the Governments receipts VIII ran
much nearer its expenditures than Treasury on
cials possibly expected and that extended re-
ductions in tariff duties will be no longer prac-
ticable or expedient. This is new and unex-
pected condition which the supporters Of the
reciprocity agreements will have TO face. and
one which NAV tend to make futile good deal
Of the State Departments recent commercial
diplomacy.