The independent., 1903-04-09
DOUBLE TARIFF SYSTEM
Treasury Bureau of Statistics Explains
the Maximum and Minimum
Tariff system

AIeasufy bureau Oh btaustics Explnlha
the Maximum and Minimum
TariHsystem
Decentralization of maximum and
minimum tariff proposition in the sem
ate and its discussion lends interest to
statement recently published by the
treasury bureau of statistics regarding
the maximum and minimum tariffs OF
the world and their method Of appIica-
tion.
The maximum and minimum tariff
system, it, says, is distinguished from
Others, first OF all. In its form. m-
stead of having tWe re- rates ttees fer q q few
articles it has two ratestpn most ar
ticles on which duties Are imposed,
and for this reason Is frequently called
the double tariff system In the ap-
plication OF these rates the maximum
schedule corresponds to the general
schedule and the minimum schedule
to the conventional schedule of con-
ventional tariffs. since the minimuna
rates are given only TO those countries
which receive the INSTRUMENTATION
treatment. The characteristic differ
ence between the two systems, how
ever, arises from the difference in
their origin. The minimum schedule
is not drawn up by negotiations be-
tween the executive of two countries,
but is framed by the legislative body
at the same time, that the maximum
schedule is made. That is, the legis-
lative 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 ar
ticles may, be taxed on entering the
country; the lower, or minimum rate,
is the one which fixes the Min:mum
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 be-
tween whiclt the treaty rates are to be
fixed. s al as tssy Al. 4f.xs.ts,,
The countries at present, using a
multiple or maximum and. minimum;
tariff system are Spain, France, RUS.
sia, Brazil, Greece, and Norway.
The present tariff of Spain dates
from 1882 when. the commercial trea-
ties. were denounced and consistent
scheme OF double rates was drawn sup.
At.the same time the Spanish. admins
istration announced its intention of
no longer making unconditional most.
favored-natiUn treaties ). Commercial
relations with other countries at once
became strained. Al tariff war broke
out with Germany, and the penalty
tariffs Of several countries were ap-
piled to Spanish goods. The relations
at present are mainly on the basis Of a
provisional most-favored-nation treat-
ment.
In 1893 Russia adopted a system
somewhat 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 1892 the minimum
schedule of the new tariff, and placed
increases ranging as high as 30 per
cent over the minimum. Russia was
not able to uphold that plan in it's
entirety, and was compelled to make
CONNER cial treaties with France and
Germany, in which reductions on the
minimum rates were given. At pres
ent, therefore, Russia tariff system is
composed of maximum, minimum
and a conventional schedule. The con-
ventional rates are given to coun-
tries having MISREPRESENTATION
agreements, the minimum rates to 9TH
er countries, while the maximum rates
are intended to be used in case of
tariff war.
The Brazilian tariff of 1900 is ar
ranged in manner similar to the
Russian. The tariff contains maxi
mum and minimum rates, the latter to
be applied to imports from those coun-
lies which treat Brazilian exports,
especially coffee, on favorable basis.
The experience Of Greece with the