Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-11
OUR FOREIGN TRADE
The Effect Of Germany's New
Tariff Law.
NEED OF CONCESSIONS
EUROPEAN INTERPRETATION OF
FAVORED NATION CLAUSE.
Agreement Between Germany and
America Before the New Law
Goes Into Effect.

special Correspondence or Inc Evening SI9T
BERLIN, April 1, 1905
No such compelling argument in favor of
tariff legislation was presented during the
recent session of Congress as will be found
in the American foreign trade situation
within year. By diplomatic-commercial
coup, Germany has placed herself in a most
commanding position in the pressure she
will shortly be able to bring to bear upon
all nations with whom her people exchange
money and commodities. The fact that
Germany has concluded seven treaties with
| important European countries whereby reel
procity of the most tangible kind is Sc
cured has already been announced, and
the terms of these treaties are quite gen
orally understood by those whose affairs
will be affected thereby. The fact, how
ever, that Germany has also placed herself
in position to practically force other
countries to her point of view is only just
beginning to be realized.
In 1902 Germany adopted a new tariff
law, containing radical revision of the
schedules and increasing the import duty to
marked degree upon all principal imports
which were at all competitive in character
to her own industries. This law will go
into effect in March, 1905, and in the mean
time reciprocity treaties have been con-
cluded with Italy, Belgium, Roumania,
Switzerland, Servia, Austria Hungary and
Russia These treaties differ materially in
their terms. but substantial reciprocity In
international trade is secured in each of
them Two very important, If not the most
important countries, so far as Germanys
trade is concerned are yet to be dealt with,
the United States and England.
The Favored Nation Clause.
Under the present arrangement, both Eng
land and the United States are working
under the most favored nation clause.
which provides in brief that imports from
these two countries shall be entered at the
minimum rate of duty. AS England is
practically a free trade country, she has
nothing to give. At present her markets
are open to German products without re-
striction. Should this policy be maintained
by England, she would probably continue
to receive the benefit of the most favored
nation" clause, but if Mr.. Chamberlain's
policy is adopted. she will be called upon
by Germany to give something in return for
continuation of present concessions
The United States is also working under
the most favored nation clause and under
a special trade agreement affecting certain
products made in 1900 under the au-
thorization of the Dingley law. Opin-
ion is now divided in Germany as to
whether the United States SHALL after
March, 1906, continue to be thus benefited
or whether such treaties as now in
existence shall be denounced, and a de-
mand made for tariff concessions in return
same basis as the imports from the seven
countries with which treaties have already
been concluded.
The agrarian interests in Germany are In
favor of a tariff war against the United
States to force some consideration for
German imports into that country. Many
of the Industrial employing and steamship
interests are inclined to yield almost any
| thing to insure commercial peace between
the two countries and successful contin-
uation of the present large exchange of
| trade. Just at this time there is consider
| able speculation and great anxiety on the
part of all concerned to the outcome of
| the situation which will inevitably arise
when the new German tariff law goes into
| effect in March, 1906 Emperor William is
known to be in favor of almost anything
| which would lead to unity of German
American interests. He has gone so far in
| this direction personally as to incur no lit
| tie criticism among his own people, and
| some jealousy of American influence among
| the representatives of other foreign powers.
A majority of sentiment among the leaders
| in the reichstag today is, however. opposed
| to giving the United States something for
| nothing, and there is at the present time
| every indication that when the new German
| tariff law goes into effect next year Amer
| lean trade will no longer be considered from
! the standpoint of the most favored ma
| tion," and will in consequence incur the
maximum tariff schedules. The effect of
| this will be most disastrous, and as soon as
| felt in the United States will excite the
| liveliest concern.