The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1902-04-11
MODERN TARIFF
DISCUSSED
Treasury Bureau Of StatiS'
tics Makes Report.

sents in concise form a statement of
the three distinct tariff systems now
applied in the principal commercial
countries of the world, and is Of es-
pecial interest at this time in view
OF the tariff discussions and pending
tariff legislation In certain European
countries. The tsr.G systems now
in use among the prominent com
merciai countries of the world may
be classed under three heads: First,
The General tsriff system second,
the general and conventional tariff
system. and third the maximum and
minimum tariff system. The system
OF a general tariff is the simplest OF
those enumerased. and consists in
avlng a single schedule Of import du-
ties, which is applied to the goods OF
all countries without distinction.
Such a tariff is altogether an act Of
the legislative branch of the govern
ment. II takes account only of the
needs Of the home country. and rec
ognizes foreign commercial relations
only in so far as the latter are in
harmony with home interests.
The system Of general and conven-
tional tariffs. however. makes dis
tinction between goods which come
from different countries. The fact
that nations which make use OF a
general tariff often ind themselves
competed to change this tariff when
they later make commercial treaties
is evidence OF how difficult it is to
main such safiR intact But since
modern nations are practically com
PEELED to have more or less commer-
ciaI relations with each other some
way OF regulating these relations
must be found, and the usual meth
cd Of securing this end is by means
OF mutual understanding between
the countries in question. General
Ay one nation declares itself ready toI
grant some concession or reduction
in It's tariff if corresponding conces-
sion il offered In return. II an agree
ment Is reached, a treaty is then
made. aud as rule the willingness
is expressed to make further treaties
with other countries under similar
conditions. Such a treaty viii usual
iy Introduce new tariff rates. II the
state substitutes these rates for
those in the general tariff, then no
change in the system takes place.
The usual course however, is for the
state TO now maintain two columns
IN its tariff schedule; the first for
those countries enjoying the most
favored nation" treatment which is
called the treaty or conventional tar
iff. aad the second containing the
original rates, for those countries not
receiving this treatnisnt and termed
thc general tariff
The rates OF the conventional tarin
are. OF course, never higher than
those of the general scedule, and are
usually lower It may be. however,
that one nation regards it Of import
ance that certain rate, reduction
OF which is refused by the other pow
er. should not be increased during
the period for which the treaty is
made. The making of an agreement
thal rates shall not be changed is
termed binding" such rates. That
is, rhe Conversational tariff schedule
is composed OF reduced and bound"
or 6Ked rates. The general schedule
may bs changed at any time without
breathing any OF the conditions of the
treaty but tho conventional schedule
can only be changed by the consent
Of both parties.
The general tari Is framed with the
acknowledged purpose Of being the
basis Cor the negotiations OF com
mercial tremtes. A conyentiona
schedule Is drawn up in these treaties
and, by the action OF the mUst favor
ed nation clause. the conventional
tana becomes 50 extended in appli
cation that. as rule, Il is the exeep
tion 20 apply the general tarin. Fo
this reason, the general tarin is re
garded mainly in the light OF a pre-
limlnary sketch OF the real tariff. A
a consequence, the rates in the sen
eral schoduie are not infrequentl
made rather high, SO that they cai
readily be reduced and concession
demanded IN return. There is aiway
the possibility. however. that the n'
gotisiions ma ybe broken OF for som