Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-08-17
NO new DISCOVERY
The Maximum and Minimum
Tariff Plan.
PRINCIPLEMAY BE USED
BY CONGRESS IF EUROPEAN GOV
ERNMENTS DISCRIMINATE.
Two Speeches by Secretary Shaw In
dicate What the Administra-
elton May Do.
PRINCIPLE MAY BE USED

! Republican leaders in Congress are not
! likely to be stampeded by the discovery
made by the tariff tinkers in the reciprocity
convention at Chicago. The maximum and
minimnm tariff plan which was flashed by
| the convention yesterday has not been I'M
known to the tariff experts in Congress In
| fact 1t has formed the subject of more than
one earnest though informal talk among the
leaders. However, up to this time the idea
has never been able to make any head
way In Congress. Viewed in some lights 1t
! mas been found very attractive theory
while from other viewpoints 1t has devel-
oped decided disadvantages
AL the same time, it is not beyond the
range Of possibilities that the principle may
have to be invoked by Congress. In the
event of Threatened determinations against
the United States by European govern
ments.
Secretary Shaw's Speech.
The possibilities of the harm to our in
dustres by that German tariff have not
been overlooked by this government. 1t is
| petraylng no confidence to state that Of
| nclals and statesmen have been watching
| with great interest every move that Ger
| many has made. Evidence of that fact
| was given in the speech which Secretary
| Shaw delivered to the delegates of the In
| tefnatlonal railway conference, held In this
| city IN May. Many Germans were pres
| ent and the German embassy undoubtedly
| took note of the utterances. In the course
| of that speech Secretary Shaw made these
| significant remarks:
| Il hope 1t will not be considered out of
| place to add that the United States is con-
! slstent with itself in that it criticises no
nation fer levying duties, be they ever SO
| high, when levied either for purposes of
protection or for purposes of revenue pro-
Vlded only they are made to rest no more
| severely upon us than upon others. The
a 1CG ,-itrk,t h,,,.
In foreign markets the same terms as
| her commercial competitors, and the right
TO sell IN all markets terms as favor
able any.
For two or three years past certain of
our people have expressed fears lest the
United States will lie involved in tariff
wars am glad that the record 5ustifes
| the statement that the United States has
never yet levied retalatory tariffs. 1 can
therefore assure you, and our own peop'e
as well. that the world will never be in
vowed IN tariff wars or retaliatory leyisIa-s
tion so long as the United States pursues
It's present policy and other countries do
not discriminate against those who do not
discriminate against them
That speech was loaded Every word
the Secretary uttered had been clrefuIjv
weighed and undoubtedly it voiced the SEN
tlment OF the administration 1t will be OBJ
served that the promise of exemptiop from,
retalatory duties was dependent unon
other countries not discriminating against
us. A few days later, in a speech at C,leve-
ldiiu, ONO secretary Shaw went it a little
stronger on the retaliation question and
said ~
Four Policies Outlined.
IF, however, any considerable number
of countries should unite with those which
now discriminate against us, there will re-
nam Tor the people of the United State.
-FOUR possible policies. Without expressing
an opinion as 10 their relative merits !
VIII stale them as concisely as possible
n dot
alone with Congress-
'First@The United States could continue
her present policy of reserVing to her own
people some advantages in her own mar
ketS ana making no diScrimna tions aRainct
others s
'Second.-We could yield to the demand
OF lhose countries which threaten ad
verse tariff legislation, and give tn tbair
people material advantages over those
which make such discrimination II
must be borne in mind. however thar
this proposition involves observation-disclosures
against other countries, for, be it remem-
bered, special faVors cannot be granted
to some as against others without imnoc
ing corresponding burdens upon Others
as against some. But there are those in
this country, | am told, who favor ma
terial reductions in present tariffs on
merchandise coming from certain coun-
tries and the enforcement of present ra tes
as against others. l think they call this
reciprocity.
"Third.-We could materially reduce all
magnanimity of others to emulate our
generosity. There are those, and l am
told there are many, who advocate this
policy Without expressing an opinion as
to the merits of the proposition I venture
to suggest that even the free trade policy
of Great Britain does not exempt her
from determinations by countries which
adopt the discriminating policy, nor from
the demands that the United States shall
join in determinations against her
Fourth. The only remaining course pos
js,f Ir,,itn
to make determinations against the coun-
tries which discriminate against US. AS
between those who advocate no discrimina-
tions of any kind. regardless of provoca-
items, and those who advocate discrimina-
tions in favor of those who discriminate
against us, this may possibly afford
ground of compromise. At least there are
those who advocate the adoption of this
policy. l have heard it intmated that an
amendment to our present tariff laws is
likely to be proposed at the next session
(but with what prospect of passage l can
not sayl substantially as follows:
" Be 1t enacted that whenever any coun-
try grants to the people of any other coun-
try privileges within its markets which are
withholden from the people of the United
States. then and in all such instances the
tariff duties all mercha ndise coming
from those countries showing such prefer
ences shall be per cent higher than pro-
vided IN the schedules of existing tariff
laws
A Maximum and Minimum.
This would constitute a maximum and
minimum tariff, the maximum to be en-
forced only against such countries as exact
maximum rate against us.
II understand that those who advocate
this course meet the charge that it means
tariff war, with the suggestion that the
United States will not first declare such a
war. Being forced to follow the example
of other countries is not the equivalent of a
declaration of war. while yielding to the de-
mand that the United States shall discrmi-
nate against those who do not discriminate
against her might involve neutral powers
in a universal tariff war. Such war would
necessarily harm us. but it would harm
more seriously still those who drove us into
1t. The United States prefers to treat all
alike and fully appreciates like treatment
by others
1t is believed that the present attitude
of the administration is reflected in these
utterances. The reciprocity conference, 1t