The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-02-02
GDRBANY'S TARIFF PROBLEMS
EFFECT on OUR TRADE or THE
BILL IN TIE REICHSTAG.
Grain Duties Past and PROPOSED
Changes Made by Commercial Treaties
-R~eIchsiag split Up Our eom'
mercial Relations With

mercial relations With Germany.
BERLIN. Jan. ls.-The present fiscal policy
or Germany is highly protective. 1t has
beeo so since 1879, and the country seems
Z, he In n protective mood now more than
ever. But it was not always 50, and 1t
may not always be so in the future.
Bismarck, before he become a strong
protectionist, was a strong free-trader.
The commercial treaty lie made with France
an 1862 has always been considered a free
trade measure.
Thirteen years later he sounded the
Reichstag as to the possibility OF limiting
the entire number of duties in the German
tariff 10 between ten and fifteen; and TWO
years subsequently, he brought about tho
abolition of the German duties on steel ana
iron. Then in his famous December letter
n the Federal Council (Bundesrath) he
made a sudden rote-idce and 'in the In
terests of financial reform,' declared MN
self in favor OF protection.
The result was the existing protective
tariff that of 1879. which the Government
Is now proposing to replace. This for the
first time since 1894. introduced duties on
grain, and with them not only increases IN
the duties on coffee, wine, tea and rice but
new duties on petroleum and tobacco
Even this was not going far enough
BY a special law in 1885, the grain duties
were actually tripled, while the duties ON
wood, with which the trade in chemicals ID
closely connected, were doubled, and ar
ticles of luxury were heavily taxed, but
this sever, protection lasted only till 1892
In that year nearly all OF Germany's
tariff treaties expired and Count Caprivi
made new tariff treaties with Austria, Italy,
Switzerland and Belgium which sensibly
modified the autonomous tariff OF 1873 for
those countries. Treaties with
and Russia followed; and only Spain and
Portugal were wholly left out OF these
practically reciprocal arrangements.
The position of the United States with
regard to Germany is, as regards CONNER
cial treaty obligations, a peculiar one. Only
a most favored nation clause in the ancient
treaty Of 1928 made with Prussia binds them,
and the force of that clause is, as some
maintain .nullifed or neutralized by Ameri-
cas- fiscal policy regarding bounties.
Such a clause means that by it one country
undertakes not 10 treat any other country
moro favorably in the way Of duties than
the country that contracts with 1t; and
accordingly. IL America for example, agrees
by a favored nation treaty to admit some
other couutry's product at a lowered rate
of duty, the same benefit automatically
accrucs. without any further agreements,
to al other countries which have treaties
with America containing the clause
Tho clause may be evaded bv a system
OF b]oun.ias in disguise. and the charge Of
evasion T. by some economists levclled
against the United States. Whether it is
true or mot Is a matter for the economists.
Il would seem in any case that the time
has now come for putting the commercial
relations Of America and Germany on n
be,ter-understood and mutually satisfac-
tory footing, and there is reason 20 expect
Thu will sooner or later be done.
The German grain duties date from 1880.
They were raised in 1855 and 1857. and
lowered bv the Caprivi treaties Of 1902.
They are. and have been since 1887, on wheat,
five marks thr 100 kilns; rye. five marks;
oats, four marks; barley, 225 marks; but
these duties are. as a matter Of fact, exacted
only from Portugal. with which Germany
has no commercial trenty. For other
countries. whether through treaty or the
working Of the most-favored nation clnuse,
the rates are: on wheat. $50 marks; rye,
so mark-, oats. ? ~ marks barley, ? marks.
These duties last only until Dec. 81, 1903.
They may be lowered. by agreement. be-
fore then: but they cannot be raised.
II no new commercial treaties are made
before Isc. -, 1917. tho 1881 rates will
again com. automatically into force. unless.
of courae, the lately proposed tarin with
g. enhanced duties Of go marks for wheat.
go marks for rye, Z marks for oats and
o marks Or barley booumes law
The new tariff. h h. hardly neo.ssary 70
repeat. PROPOSES minimum duties on the
Eraiu- mentioned PROPOSES. that IL 20 cay.
that th" German Government undertakes
nYf tp r.iuoa tho-e dutles Dy treaty WIN
oihsf atlon They are high. perhaps.
compared with the Treaty duti"s they re-
plaD. hu' that they az. unnecessarily 40
for GrrmHus's conditions, or that they
would -uou-ly chork tho export 20 Ger
mapy 81 foreign vhsai 10 ~ open question
Thai be- Toe th" 'AI"rtsfs - the grains
ouurru.si 10 hgur uut
There Nas q frIlu iu a B-rin nsus.
paper. quite rru.utly by che way tlat tho
G0,rumrut had dr1drd to drop Htho miul.
mum dutlus uu gram snd o. nsEliiats
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