The Washington times., 1902-04-07
Reciprocity Treaties Cause
Changes From Time
to Time.
CONCESSION GIVEN FOR CONCESSION
Three Kinds of Tariff in Use, General,
General and Conventional, and the
Maximum and Minimum Systems
Monograph by Statistics Bureau.

Modern Tarlu systems Is tnc tue Vi
a monograph Just issued by the Treasury
Bureau of Statistics. 1t presents in con-
else form a statement of the three dis
tinct tariff systems now applied in the
principal commercial countries of the
world. and is of especial interest at this
time in view OF the tariff discussions and
pending tariff legislation in certain Euro
pean countries.
The tariff system now in use among the
prominent commercial countries of the
world may be classed under three heads;
First-The general tariff system.
Second-The general and conventional
tariff system.
tariff system.
The system of i general tariff is the
simplest of those enumerated. and con-
sists in having single schedule OF i'm
port duties. which is applied to the goods
of all countries without distinction. Such
tariff is altogether an act of the legis-
lative branch of the Government. 1t
takes account only of the needs OF the
home country and recognizes foreign com
merciaI relations only in so far as the
latter are in harmony with home inter-
ests.
The system OF general and conventional
tariffs, however. makes IA distinction be-
tween goods which come from different
countries. The fact that nations which
make use of general tariff often find
themselves compelled to change this tariff
when they later make commercial trea~
ties is evidence of how difficult it is to
maintain such tariff intact. But since
modern nations are practically compelled
TO have more or less commercial relations
with each other some way OF regulation
these relations must be found, and the
usual method OF securing this end is by
means OF a mutual understanding between
the countries in question.
Concession for Concession.
Generally one nation declares Itself
ready to grant some concession or reduc-
ton in its tariff II a corresponding con-
cession is offered in return. If an agree
ment IS reached, q treaty Is then made,
aid as rule the willingness is expressed
TO make further treaties with other coun-
tries under similar conditions. Such
treaty will usually 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 en-
joying the ''most-favored- nation treat
ment. which is called the treaty or con-
ventional tariff. and the second contain
ing the original rates. for those countries
not receiving this treatment, and termed
the general tariff.
The Conventional Tariff.
The rates of the conventional tariff
are. Of course. never higher than those of
the general schedule. and are usually low
err 1t may be. however, that one ma
tion regards it of Importance that GER
tain rate. a reduction of which is re-
fused by the other Power. should not be
increased during the period for which
the treaty is made.
The making of an agreement that
rates shall not be changed is termed
binding such rates. That is. the con-
"entional tariff schedule is composed OF
reduced and bound fixed. rates. The
general schedule may be changed at any
time without breaking any of the condi-
tions of the treaty, but the conventional
schedule can only be changed by the con-
sent CT both parties.
Basis 10I treaties.
The general tariff is framed with the
acknowledged purpose Of being the basis
for the negotiation of commercial
treaties conventional schedule is
drawn up in these treaties. and, by the
action Of the most favored nation clause,
the conventional tariff becomes SO ex-
tended in application that. as 4 rule, il
is the exception to apply the general
is -i,s For this reason the general tariff
liminary sketch Of " the isht OF pre-
consequence. the rates IN fHHrlh' As
schedule are not infrequcutly made rather
high, so that they can readily be reduced
and concessions dema nded In return.
There is always the possibility, however,
that the negotiations may be broken ott
for some unforeseen reason, and the un-
desired high rates become actual rates.
This possibility generally eXerts a re
strainng influence in the framing OF the
e neral tariff. The cource which events
in he field Of commercial policy may
take will always exert considerable in
Gueuce in the formation OF such ,\.in
sch hsdulcs but the main consideration
mVst always be the needs of the home
Producers.
The most prominent country using the