The Montgomery advertiser., 1907-12-04

lays necessary to such proceedings that the psr1od ox four wears and haif wn,cn tnen intervened before the exposition proved none too ions Tor the proper preparation of ths
 rhs German Thrift Agreement
 The adoption of new tariff by Germany: accompanied by conventions for reciprocai tarift conccssions between that country ana most Of the other countries of continental Europe. led the German Government to give the notice necessary to terminate the recip- rocal commercial agreement with this coun- try proclaimed July Ia. 1900. The notice was to take effect on the 1st of March. lsoe. and In default of some other arrange ents this would have left the exports frvm the United States to Germany subject to the general German tariff duties from 25 to 50 per cent. higher than the conventional duties imposed upon the goods of most Of our competitors for German trade.
 Under special agreement made between the two Governments in February. asoo' the German Government postponed the op- eratfon of their notice until the 3Oth Of June. 1907. In the meantime. deeming 1t to be my duty to make every possible ef- fort to prevent a tariff war between the United States and Germany arising from misunderstanding by either country Of the ing upon the invitation of the German Government, sent to Berlin commission composed of competent experts in the op- eration and administration of the customs tariff. from the Departments of the Treas ury and Commerce and Labor. This com mission was en aged for several months In conference with similar commission sp- pointed by theR German Government. under
 instructions, so far as practicable. to reach common understanding as to all the facts regarding the tariffs of the United states trade relations between the two countries. The commission reported. and upon the basis of the report, further temporary commercial agreement was entered into by the two countries. pursuant to which in the exercise of the authority conferrfng up on the President by the third section of the tariff act of July 24. 1897. extended the reduced tariff rates provided for in that section to champagne and all other spark ling wines. and pursuant to which the Ger man conventional or minimum tariff rates were extended to about 96h per cent Of all the exyorts from the United States to Germany. This agreement is to remain m force until the 30th of June. 1908. and until six months after notice by either party to terminate 1t.
 The agreement and the report of the commission on which it Is based will be laid before the Congt ess for its information
 This careful examination into the tariff relations between the United states ana Germany involved an inquiry into certain of our methods of administration which had been, the cause of much complaint on part of German exporters. In tnis ,nauiry ay
 unjustifiable practices had grown up m our customs administration. notably the upon detective reports never disclosed to the persons whose interests were affected. The use of detectives. though often neces-
 cary, tends towards abuse, and should De carefully guarded. Under our practice as found it to exist in this case, the abuse had become gross and discreditable. Under It. instead of seeking information as to the market value of merchandise from the we'll known members of the commercial com
 munity in the country Of itH production,
 secret statements were obtained from in former and discharged employees and ousi- ness rivals. and upon this kind of secret evidence the values of imported goods were were frequently imposed upon importers who were never permitted to know what the evi-
 dence was and who never had an opuos. ,Sat this system tended towards an increase or the duties collected upon imported goods to exact more duties than the law provides. just as it is violation to admit goods up- on the payment of less than the legal rate of duty. This practice was repugnant to the spirit of American law and to American sense of justice. In the judgment or the most competent experts of the Treasury De- and Labor 1t was wholly unnecessary for the due collection the customs revenues
 and the attempt to defend 1t merely fllust- rates the demorallzation which naturally follows from long continued course of re- liance upon such methods. I accordingly
 caused the regulations governing tais branch of the customs service to be modi- fled so that values are determined upon hearing in which all the parties interest
 ed an se sam
 
 over our Treasury agents are accredited to the government of the country in which they seek information. and in Germany re-
 ceive the assistance of the quasi official chambers of commerce in determining the
 actual market value of goods, in accord ance with what I am advised to be the true construction of the law.
 These changes of regulations were adapted to the removal of such manifest abuse that
 I have not felt that they ought to be con fined to our relations with Germany; and have extended their operation to all other countries which have expressed desire to enter into similar cS,na adminis'ra''Ve relations ask for authority to reform the agree ment with China under which the in demnity of 1900 was fixed, by remftting and cancelfing the obligation of China for the
 payment of all that part of the stipulated indemnity which is in excess of the sum of eleven million. six hundred and fifty-five thousand four hundred and ninety-two dol lars and sixty-nine cents. and interest at four per cent After the rescue of the tor eign legations in Picking during the Boxer throubles in 1900 the Powers required from | China the payment of equitable indemnittes to the several nations. and the final proto- col under which the troops were withdrawn, | the amount of this indemnity allotted to the United States at over $20 000, 900 and China paid. up to and including the 1st day of June last a little over S6,0000o0. It was l the first intention of this Government at the proper time. when all claims had been l presented and all expenses ascertained as | fully as possible, to revise the estimates | and account, and as proof of sincere | friendship for China voluntarily to release | that country from its legal liability for all | payments in excess of the sum which should | prove to be necessary for actual indemnity | to the United States and it's citizens
 This Nation should help in every practic- | able way in the education of the Chinese md EY1-