New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-05-09
A NEW TARIFF SYSTEM.
TALK OF ADOPTING ONE.
The Maximum and Minimum Plan
The LIKE Congress bay Act.
IFRoM TIE TRIBUNE sUREAu.I

ready charged some extent, and VIII. IN ali
probability, continue 10 change between now and
the tiEae when the LIXvh Congress meets for its
long session in December. 1906 the probable neoes-
sity Cor revision is gradually gaining recognition.
even among these who. during the period Of pros
pe-ty which has characterized the Mckinley and
Roosevelt administrations. have been the most
loyal supporters OF The stand pat policy. Many
OF TIE highest AUTHORITIES ard the eblest sup
porters OF the protective ta-sn system, notably
such statesmen as Senators Adrich. Allison. Flatt
(of Connecticut Spooner and Lodge have recently
given expression 10 their interest in the maximum
and minimum tariff system, and some have asserted
their BELIEF that this method OF assessing customs
.lutios offered the most expedent means OF ex-
tending the foreign trade of the United States
On January IT, 1903. Senator Lodge introduced in
the Senate resolution instructing the Committee
on Finance 70 ascertain what. If any, foreign ma
lions discrinina hy tarIn duties against any
article Of manufacture or any production Of the
United states and. further. If Il were found that
such discrimination existed, report the Senate
whether il IS advisable that suitable law
should be enacted by which maximum and minimum
rates OF 01ty shall be established IN such manner
as 20 give preference 20 those countries which do
not discriminate against the products Of the social
Industry Of the United States
ACTON DEFERRED
That being short session Of Congress. 10 ao-
ton was taken on this resolution. which Sen
ator Aldrich gave notice that he would on a sub
segment occasion address himself ana al me close
Of the Congress il left the table.
The difficulties attending the modification Of the
tariff by means OF reciprocity treaty were amply
demonstrated when the effort was made 10 ratify
the reciprocity convention with Cuba SO great
was the uncertainty TO the constitutional power
OF the Senate 70 change a tari- law enacted ny
Congress that II deemed advisable 10 ratify
the treaty with proviso that SITS provisions should
not go into operation until enabling act should
have been passed by Congress. The fate OF The
nv II Is well
known. Moreover, the conviction has gained
ground among members OF Congress that the ratih-
cation OF any reciprocal treaty viii always be met
with an opposition almost insurmountable, and
this has served further direct the attention OF
the leaders 70 the advantages claimed for the
maximum and minimum system.
In the nght OF these facts the incorporation IN
the monthly summary OF commerce and france
issued by TIE Department Of Commerce and Labor
OF an exhaustive essay Modern Tariff Systems"
becomes OF pecial interest, II OF great sig
nIacance The entire subject Of tariff enactmen:
by the leading countries Of the world is conlpre-
hensvely discussed, and arguments FOR and against
the maximum and minimum system by Its leading
friends and opponents abroad. together with all
the more important tariff schedules TOW in force,
are presented.
THREE PROTECTIVE SYSTEMS
The systems OF assessing protective tariff are
enumerated as three-the general tariff system,
which prevails in this country. the general and
conventional used notably by Germany, and which
is used by this country only in far a conven-
tional tariff on Cuban imports may be said exist
and the maximum ard minimum tariff, used nota-
bly, by France. Spain and Russia
The general tariff system is well known in this
country as 10 call for only brief mention but OF il
the publication says;
The general tariff is difficult 10 maintain where
the schedule contains numerous high protective
Will endeaVor 20 make with each other commercial
While the state using the general tarifT cannot
make such treaties. and is not position 70
share OF those advantages.
The general and conventional tariff system IS
more deliberately explained consisting OF gen
eral tariff applying 10 imports from all countries
which do not enjoy the most favored nation
clause" and a conventional tariff. Of which the
schedules are expressly stipulated in a treaty
treaties and further extended to imports from all
countries which do enjoy The favored nation
clause"
THE MAXIMUM AND MINIMUM SYSTEM
The maximum and minimum tariff system is ex-
planned consist Of double set OF schedules. duly
enacted by the proper legislative body, the maximum
10 assessed IN all cases where treaty provisions
so not apply. the minimum Il apply 10 imports
from those nations which grant special provisions
!n return for special treatment The characteristic
difference between the general and conN entional
and the maximum and Tarimunn systems is ex-
planned 10 consist chiefly in their origin. the mini
mum schedules NOT being Up ~ the execu-
tives OF the respective governments but framed by
the legislative body ~ the same time that the
maximum schedule Is made.
The advocates OF she maximum and minimum
tariffs maintain that the establishment Of the
lower schedule by legislation serves 20 create a
STABILITY which is absent where the tarir is sub
Sect 10 unlimited change by the executive, manu-
.acturers always calculate with eKsctness the
lowest tariff with which they will have deal
They advocate the enactment Of Il maximum schea-
e Ear higher than The lower rates OF duty in order
that foreign nations may always be afforded ma
Iral incentive Il grant concessions IN return Tor
The application or the minimum. II is further sup
duties char ging conditions becomes easier OF
CONFUSING and no. accompanies by toe cistar5-
attends general change of the schedules BY legis
ion OF those who advocate the system, be most
cial treaties covering limited periods.
THE FAVORED NATION CLAUSE.
An interesting analysis OF the favored nation
clause in international conventions is presented in
which il is stated that practically all Euro2ean
nations are agreed that a nation possessing a
treaty containing the clause with any other nation
is entitled every concession granted by that
nation third. REGARDLESS % the consideration
which the third party may grant IN return. The
the right give concessions only in return Tor GER
tain fayors and moreover reserves the right TO de-
eide whether the favorg offered by other countries
are the equivalent Of those offered by a spe,.aed
IN the light % this construction OF the favored
nation clause. II = suggested thar the difficulties
plication OF the maximum and minimum tarin and
which have occasionally necezsitated the esta blish
be encountered by this country. The Monthly
summary devoted fifteen pages 10 the discussion
ana explanation OF modern tartn systems and in
cluoes therein much valuable history aud many
OF the various TART. systems ths whole fssTS c2
ssitIng one Of re mos, important and Interesting
tics Q: the OF the Department OF Commerce. and
BROOKLYN GIRL TELLS oE yopt ro,p