The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-25
AMERICAN INTEREST IN THE NEW
GERMAN TARIFF.


effective operation, In March, 1907 OF Ter
many's now tariff regulations, that GOV
eminent IN engaged In arranging reoiProo-
ity treaties with her noighbors. The sys-
tom sanctioned by tho law Of Dec. 20 lVOS'
provides for a double set Of duties, known
a. general and conventional. Under
the general ratio many articles Of possible
production In Germany are quite eneo-
lively barred from importation. The oon-
ventional rate will make commerce possible
at the price Of an exchange Of trade oppor-
tunities by means Of reciprocity treaties
While It may be assumed that the system
has been thoughtfuly devised with Vie"
TO the Conservation Of German industries
II Is obvious that Il cannot be carried out
without serious complications. Under its
operation the most favored nAticn' arrange
ment will be nunihed. That point is fairly
established In international usage. Eng
land OF Germany cannot sell 70 Cuba, I'M
der most favored nation claim, on a
tarin footing with the United States. The
United States cannot claim a similar night
where reciprocity treaties are operative
between other countries. In the case OF
the new German tariff there appears no
alternative for the United States. There
must be either q reciprocity treaty OF some
saorihoe Of American sales.
This duplex tariff system 10 not . new In
sdtudon In Germany, but the law which
will go into operation next year introduces
new and more stringent features In its ap-
plicaton. Until 1900 the United States
dealt With Germany on the most favored
nation basis. On July ~ Of that year
President Mckinley signed an agreement
OF reciprocal nature, In conformity with
the provisions Of the third section Of the
tariff act approved July "a, 1897. Both this
and the most favored nation influence
will become ineffective under the new Ger
man law. Section 1 Of that law reads as
follows: with the exception Of imports
from certain countries, which form the
subject Of special provisions, goods inn
ported into the German customs territories
shall pay the duties established in virtue
Of the resolutions definitely adopted by
the sixteenth commission and presented
to the Reiohstag Oct. Q, 1902
In other words. Germany says that those
who would enter her doors must pay for
the privilege Of 80 doing. Her full right 10
do this cannot be challenged. Thus far
Il German Government has declined TO
commit itself in regard 10 the price which
II would be disposed 10 charge the United
States for the privilege Of securing the adj
vantage Of the conventional rates. Ger
many's trade is undoubtedly Of Importance
TO us. During the fiscal year ending June
81, 1904, we sold her a little less than t714.-
OOO. 900 worth Of merchandise, OF nearly Is
per cent. Of our total exports. About ono
half Of our sales for that year consisted Of
raw cotton and copper. This trade would
not be affected, as both items remain on the
free list. Mineral oil, an important item,
remains at its former rate, and lard, also
an important item, shows only a small
advance The notable advances are in
meats and cereals, In which our trade
amounts to- approximately, N7,OOO,o 900.
The duties on manufactured goods would
probably make little difference in our COM
merce. The new tariff advances rates on
some items and reduces them on otheB.
Stating the matter broadly. it may be
said that the German market which We
might have 20 buy through the medium Of
q reciprocity treaty IL one for which We can-
not afford 10 pay any very high price. The
loss Of our trade with her would really be
more serious to Germany than the loss Of
her trade would be TO us. In fact, q oOn-
siderable part OF the $40, 200 900 worth Of
goods which we bought from her last year
might very well be made In our own shops
and factories. But in a way Germany
holds the master hand. Her tarih law
permits not only a system OF premiums,
through its conventional" rate, but az we'll
a means Of penalzing through It's general
rate. II is in her power TO strike us, but
we have no readily available means Of strik-
ing in return. We cannot say that II she
wants our copper and raw cotton she must
also give us a chance TO sell wheat, -four and
beef But she can say TO US that II we do
not give her an advantage in our custom
houses, some, az least, Of our wares will be
barred out by preferences to her own people
or to the people Of some country entering
into convention with her Nor can we say
to Germany that IL she charges her general
rate on purchases from this country, a
surtaI would be imposed on her products
entering the United States. Our system
allows the offer Of a premium through
reciprocity, but II does not provide for
retaliation as the German system does.
The entire matter, however, resolves
itself into a fairly distinct business propo-
sition. Germany is by no means indifferent
10 the value Of the United States market,
and is In no way DESTROYS Of mourning our
commercial hostility. A few hours OF
figuring on available itemiBed lists would
show with accuracy the net increase in the
tariff changes on an average yearly impor-
tation from the United States and the ex-
act increase on each line Of goods affected.
Another tabulhtion would show what Ger
man goods could be admitted to our market
under section OF the Dingley law or un-
der SECTION 4 Of that law, II We saw az to
stretch II a little as We did in the case Of
Cuba.
The relative value Of the respect We
markets being thus established for q work
ing basis, a mutually satisfactory arrange
ment might be reeohtd.