The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-01-31

1uluM dlu NAl1l1ul u1n
Systems.
The French Law Has Brought the
Method Prominently Into
ii, 10. s View. ... ..s3
From The Journal Bureau, Room S. Post Build.
ing, Washington. %sa iI 81. ~
Washington, Jan. 31.-The1 maximum
and minimum tariff proposition lends in
t,s St to ga, a statement recently published
sardlng the maximum and minimum tar
ifs Of the world.
Z The system is distinguished from 9TH
ers, first of all. in its form. Instead Of
having two rates for a few articles, it has
two rates on most articles on Which du-
ties are imposed and for this reason Is
frequently called the double tariff sys-
tenn. In the, application of these rates
the maximum schedule corresponds to- the
general schedule and the minimum sched-
ule to the conventional schedule OF con-
ventional tariffs, since the minimum rates
are given only to those countries which
receive the most-favored-nation treat
tween the two systems, however, arises
from the difference in the origin. The
minimum schedule is not drawn up =Dy
negotia tions between the, executives of the
two countries, but is framed by the legis-
lative body at the same time that the max
imu1n schedule is made. That. is, the
legislative power fixes two rates of duty
on each article in the tariff. The higher
rate is the one which fixes the maximum
extent to which those articles may be
taxed OH entering the country, the lower,
or minimum rate, is the one which fixes
the minim UNI extent. to which the duty
may be lowered. If it is desired to make
commercial treaties at any time" these
two rates show the exact limits between
which the treaty rates are to be fixed.
The Countries Using It. ~.
The countries at present using null
tiple or maximum and minimum tariff sys-
tenn arc Spain, France, Russia, Brazil
Greece and Norway. s.',
The present tariff Of Spain dates from
1892, when the commercial treaties We're
denounced and a consistent scheme OF
double rates was drawn UP. At the same
time the Spanish administration an
nounced its intention of no longer max
treaties Commercial relations with other
countries at once became strained. A tar
iff war broke out with Germany, and the
penalty tariff of several countries were
applied to Spanish goods. The relations
at present are mainly on the basis OF a
provisional most-favored- nation treat
ment. ..
In 1898 Russia adopted system some
what similar to that of France. Instead
of having a special rate on each article.
however, as was the case in the French
law the Russian tariff made the general
schedule (Which was in use prior to 1880
the minimum schedule Of the new tarlft,
and placed increases ranging as high as
80 per cent over the minimum. Russia
was not able to uphold the plan in its
entirety, and was con1pelled to make com
mercial treaties with France and Gerna-
nv. in which reductions on the minimum
rates were given. At present, therefore,
Russa's tariff system is composed OF a
ma xi1num and minimum, and conven-
tional schedule. The conventional rates
are given to countries having most-fa-
vored nation agreements, the minimum
rates to other countries, while the maxi
mum rates are intended to be used IN case
Of a tariff war. .., ., .-.-- 5<sss-.,s. > ~
The Brazilian tariff Of 1900 is arranged
in a manner. similar to the Russian eIhe
tariff contains maximum ana smnhllauHl
rates, the latter to be applied to imports
from those countries which treat Brazlllan
exports, especially coffee, on a favorable
basis - s.. -
The experience of Greece, with the
maximum and minimum system. has been
similar to that Of Russia. The law OF
1893 provided maximum and minimum
rates. but the later commercial treaties
reduced the latter, so that the present
rates applied to most-favored-nat lions
countries are partially the conventional
rates and partially the minimum rates.
In Norway the maximum rates are in
tended to be used only in case Norwegian
goods are treated less favorab ~ than
those of any other country-that is, these
rates are to be used in case of a tariff
war. - ~.-.-s.
The Experience Of France.
Although Spain was the first country
to attempt to use the system of maximum
and minimum tariffs, France may be re-
garded as the country which has given
the system it's present prominence. The
first efforts to have it adopted as the
| tariff system of France were made by
| NJ Meline early in the seventies and
again in 1881, but the attempts were un
successful; ten years later, however, the
| demand for higher rates of duty became
stronger and Meline's party viewed the
| plan with more favor. The method OF
having conventional tariffs with the vari-
Gus countries with which France had
commercial intercourse was the cause OF
much dissat sfaction at the time, as the
investigation of the superior council OF
commerce showed. The existing treaties
were denounced and Meline's bill, afte,
some notifications, was adopted in Janu-
airy, 1892. The underlying idea of the
plan vas that the legislative body should
fix the limits of the tariff rates below
which the executive could not go in the
effort to establish commercial connections
with other countries. That is, the home
industries were to be assured that they
would not be disturbed by any attempts
! to alter the tariff rates in the minimum
schedule and perfect stability Of cOndi-
tions was thus hoped for. On the other
hand, in order to make it to the advan-
tage Of foreign countries to grant conces-
sons to France, in return for which they
would receive the rates Of the minimum
tariff, it was proposed to make the differ
ence between the maximum and minimum
rates as large as possible, SO that there
would be no gain if the minimum rate
were secured and loss Of it were not
! The author Of this bill also desired that
| the largest possible number of items
| should be included in the two schedules
as that would increase the power of COM
polling other, countries to grant low duties
| in return for the rates of the minimum
| tariff. If any country refused to grant
| either Of the most ton treat
| 1nent to French goods. or to apply tariff
rates which the French officials cOnsid-
cred low enough the maximum tariff
rates were to be imposed on all goods
| coming from or through that country.
| r. The rates in the two tariffs differ by
about Is per cent-that is, the maximum
| II