Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-11
An Agreement or Tariff War.

To prevent what promises with consider
able certainty most serious upset in in
ternational trade matters, some agreement
must be reached between Germany and the
United States before the new law goes into
effect One of two things must come to
pass; either the United States must meet
Germany at least part way in her efforts
to bring about reciprocal trade advantages
and Germany is undoubtedly willing enough
in this direction, or a tariff war is in pros
pect, which will not only result in enormous
loss to both German and American inter-
ests, but which will excite the liveliest
feelings of resentment on both sides.
1t will do no good for the American peo-
pie to assert their independence of other
countries or to show irritation, talk retail
than to treat the matter from purely bust
ness point Of view While Americans have
been talking reciprocity, Germany has gone
to work and put the principle into active
operation in all her commercial relations
abroad To expect that she will make an
exception of the United States is illogi-
cal, and what is more, the seven countries
with whom Germany has already made rec
iprocity treaties would have just cause for
complaint should Germany admit American
products at the minimum rate of duty with
out demanding something in return in the
same manner as she treated with them.
Effect on American Trade.
Some idea of the extent to which Ameri-
can trade will be affected by the new Ger
man law can be easily conveyed. In 1904
the United States bought from Germany
S107 600 600 worth of products, and In that
same year the United States sold to Ger
many products amounting to $217OO0,OOO in
value. The new German tariff affects forty
six of the principal articles imported by
Germany from the United States. The
changes in the rate of duty are large, and
the advantages derived through the treaties
effected by the producers of the countries
entering into these conventions are clearly
shown. For instance, as matters now stand
the German import duty upon 100 kilos of
wheat is $1.19 American wheat is now ad-
mitted into Germany by paying an import
duty of SO cents owing to the most favored
nation" clause applying to American prod
ucts. The new German tariff law raises
the import duty on wheat to $1.7S which is
reduced by treaty to the seven countries
named to S1.3o per hundred kilos At pres
ent the duty on flour is $3.50 per hundred
kilos, but American flour now only pays
S1.74 under the favored nation" arrange
ment. The new law raises the import duty
on -four to s4.36 per hundred kilos which
Is reduced by treaty to $2.42, or a decrease
of Oh cents. At present dried fruit pays
80 cents per hundred kilos import duty.
The new law increases this duty to 50 3S,
and 1t Is reduced by treaty to 95 cents a
difference of 81 .43. In other words, unless
the United States and Germany enter into
a reciprocal arrangement before the first
of March, 1905, American wheat will paw
4S cents, American flour "a cents and Amer
lean dried fruits s1.43 per hundred kilos
more in import duty on entering Germany
than the same products from the neighbor-
ing European countries, all of which enter
into sharp competition with the products of
America. The great and growing American
export trade In dried fruit is especially con-
cerned in this situation, for under the new
law Germany will collect an import duty
on prunes Of S2.3S per hundred kilos unless