The Washington herald., 1907-05-07
TUESDAY. MAY Z. 1907.
Tariff Revision Is with Is.

The tariff question, which Congressional
standpatters thought they had carefully
laid by through the simple device Of in
action, has been opened wide by the new
agreement with Germany and by the
evident purpose Of France 10 demand con-
eessions equivalent to those given Ger
man exporters. Protected interests have
already taken alarm over certain provi-
sions Of the German agreement. and
their organ leads an outcry against the
administration that IS bound 70 increase
in volume If the effect Of the German
concessions shall be 10 increase imports
OF manufactures competing with Amer
ican productions. CuriousIy enough,
American importing houses which buy
largely In foreign markets are also up In
arms against the new agreement. alleging
that ii viii give an advantage TO i'm
porters TO whom foreign goods are ship
ped on consignment
Explanation OF this novel alignment Of
domestic manufacturers and importers
against tariff concessions goes TO the
heart OF the whole matter The vital
clause of the German agreement is that
which binds US TO instruct our customs
officers that the market value OF imported
goods-the value, that is, upon which
tariff duties are TO be imposed-is the
export price whenever goods are sold
wholly for export or sold in the home
market only in limited quantities" Now.
the practice of many German manu-
facturers engaged in an export business
is 10 sell goods abroad at lower prices
than at home. and the whole Importance
OF the new German agreement consists in
our consent 70 levy tariff duties on this
lower export price rather than the home
price. as has been done heretofore. BY
levying duties on this lower valuation.
as We have before pointed out, this gov
ernment virtually reduces the tariff rate.
Importers who buy their goods abroad
however pay the home market price,
whereas importers who receive goods on
consignment % be disposed of in this
country pay the export price and the
consequent lower duties, Hence the op-
position Of the former class Of importers
10 the new agreement a New York i'm
porter is quoted as saying that direct
importers have in a number Of instances
been unable 10 buy from German manu-
facJurers. who have refused to sell except
IN the New York market at the export
price, thus declining TO accept a price
that would establish a market value for
shipments other than those made on con-
signment In other words, they adhere to
the lower export price in order to obtain
the advantage Of lower tariff duties in
competitive market. This is a trick of the
trade that is sharply resented by our
protected industries. and it viii be easier
than ever TO play it under the tariff
agreement with Germany
We learn from the chief protectlonist
organ that 1897 is a standpat year" That
was the assumption when Congress ad-
Journed without taking up any phase of
the tariff question. 1t is an assumption.
however, which has been most conclu-
siveiy dtsprQved by the course of events.
The signature of the German agreement.
with its Intentionally favored treatment
OF the German export trade marks a
departure in tariff administration hardly
less important than the introduction Of
q tariff bill II means that a way has
been found 70 let down the tariff bars
partly. at least, without going 10 Con
gress for permission. and that the rigid
and uncompromising attitude Of hide
bound protectionism has been abandoned
by this administration, We look for a
loud and prolonged howl from the pro-
tected interests as soon as the fun sig
niacance OF the German agreement be-
comes matter Of common knowledge
For tariff revision has not been post
poned until 1903; It is IN our midst