The Birmingham age-herald., 1909-03-21
TARIFF WAR SURE
 F BILL PASSES
Cuban Reciprocity Is the Bug
 bear of Legislation
FAVORED NATION CLAUSE
Many Difficulties Are In the Way of Enforcing the Maximum and Mini mum Provision of Payne
 Tariff Measure.

Washington, March 20-That the Payne tarin bill would bring about great inter- national tariff war if enacted. because of the section which continues in operation the Cuban reciprocity treaty, is one of the arguments that is being made against the measure. It is urged that foreign countries which would otherwise agree to give the United States the benefits of their most favored nation clause. in return for the minimum scale of duties provided for in the Payne bill, will contend that the Cuban reciprocity provision Is the most favored national clause of the American tariff. and will, therefore, re- fuse to enter into low tariff agreement with this country.
 This difficulty regarding the Cuban reel procity treaty and its relation to the maximum and minimum tariff provisions of the Payne bill, was not overlooked by the framers of that measure. The sub committee which drafted the bill consid- cred the possibility of claims being made that the clause continuing the treaty with Cuba diseriminates against other nations and would, therefore, not entitle the Uni ted States to the minimum duties of other nations. After discussing the matter it was agreed to allow the provision to re- main in the bill upon the assumption that other countries recognize the unusual re- lations existing between the United States and Cuba. and would not object to the lower tariff duties which the island re- public would get. Furthermore, in sup port to this argument, it is contended that Cuba ships to this country articles which do not compete with other imports from countries of Europe.
 Many Difficulties.
 There are other difficulties in the way of operating successfully a maximum and minimum tariff Most European nations have special trade relations on certain products with their neighboring countries and it would be inconsistent for the Uni ted States to expect these nations to ab- rogate those agreements in order to get the benefit of our minimum duties.
 The other framers of the Payne bill have designed the maximum tariff pro- visions in such a way that practically every country of Europe would be com pelled to seek our minimum duties in time The principal object in making the new bill a maximum and minimum meas ure was to use this provision as a means of forcing other countries to grant te American industries the same opportuni. ties for trade that they grant to other l countries.
 France Affected.
 France is one of the countries thai l will be most affected by the maximum l schedule of the Payne tariff. The dutiel ! imposed by the present law on wines i liquors and spirits are increased 40 pei 1 cent In the maximum provision of the nev 1 bill, and this advance would seriously af feet the importations from France O wines, principally on the low grades | Italy and Spain would also feel the eff | fleets of these duties. Germany now give the United States nearly all the minimum 1 duties of her tariff under the provision. | of the German trade agreement; but un less she should offer to abrogate thu agreement and give this country all O | her favorable duties, the maximum rate of the Payne tariff would apply. Tn, ! German agreement provides that si, months notice of it's discontinuance mus be given by either country, but it can b, abrogated by mutual consent
 Maximum Duty.
 lHt dS lit Dlll pldCtS d Qul. of 20 per cent additional on chemicals tobacco, sugar, agricultural products cot l ton, silk and paper schedules, with tn exception of coal tar, dyes and extract | for dyeng in the chemical schedule, fo which there is no maximum rate of duty ! The rates of the Dingley law are retaine as maximum duties on pig iron, structur al steel, steel billets, iron and steel plates steel wire and numerous other iron an l .l... l. the pottery schedule are 25 per cent nor than the minimum and for the sundrie schedule, the increase Is an addition O 1 25 per cent ad yalorem.
 The flax and wool schedules have n ! maximum prescribed.
 1 The principal articles on the free lis for which a 20 per cent ad valorem i | provided in the maximum schedule ar coffee, crude natural camphor, drugs fo dyeing and tanning, hides, iron ore, oils including petroleum tallow and tobacc stems.
 Representatives of western states ar claiming that the new drawback provisio | in the Payne tariff bill is discrimnator, ] against the west in favor of the east. fh 1 revised drawback section permits manu | facturers to secure the regular draw l back of 9J per cent of the duty paid ol 1 imported raw material without the ne ceSSlty or uslnS the imported material Il the manufactured product that Is export l ed. A raw material of domestic produc | tion, in equal quantity and of a simila character may be used instead of the i'm ported material.
 West Against East.
 Western members of Congress are con tending that this tends to give the man i ufacturer at seaboard a decided advan tnfr s,, terior on account of the freight rates
 The ways and means committee claims l however, that the new drawba is fo the benefit of the honest exporter wh 1 has been laboring under a disadvantag l because interruptions manufacturer 1 have taken advantage of the difficulty 0 enforcing the Dingley drawback provi sion. It is also contended that the nel drawback section extends this priveleg to many industries which have been un