The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1909-03-21
MAKES PREDICTION
OF COMPLICATIONS
Opposition to Payne Tariff Measure Argues That Foreign
Nations Will Contend That Cuban Reciprocity Provision
Is Most Favored Nation Clause of Bill and Will Refuse to
Enter Into Low Tariff Agreement With This Naton---
All Will Seek Minimum Duties in Time

Washington, March 2O--That the
Payne tariff bill would bring about
international tariff complications If
enacted, because of the section which
continues in operation the Cuban re-
ciprocity treaty. is one of the argu-
ments that is being made against the
measure. 1t is urged that foreign
countries which would otherwise agree
to give the United States the benefit
of their most favored nation clause in
return for the minimum scale of du-
ties provided for in the Payne bill
will contend that the Cuban reciprocity
provision is the most favored nation
clause of the American tariff and will
therefore refuse to enter into a low
tariff agreement with this country.
This difficulty regarding the Cuban
reciprocity treaty and it's relation to
the maximum and minimum tariff pro-
visions of the Payne bill was not
overlooked by the trainers of that
measure: The sub committee which
drafted the bill considered the possi-
bility of claims being made that the
clause continuing the treaty with Cuba
dscriminates against other nations.
After discussing the matter, it was
agreed to allow the provisions to re-
main in the bill upon the assumption
that other countries recognize the un-
usual relations existing between the
United States and Cuba and would
not object to the lower duties which
the island republic would get.
other Difficulties.
There are other difficulties in the
way of operating successfully a maxi
mum and minimum tariff Most Eur
opean nations have special trade re-
lations on certain products with their
neighboring countries and it would be
inconsistent for the United States to
expect these nations to abrogate these
agreements in order to get the benefit
of our minimum duties.
On the other hand, the trainers of
the Payne bill have designed the max
imum and minimum tariff provisions
in such way, that practically every
country in Europe will be compelled
to seek our minimum duties in time.
France is one of the countries that
will be most affected by the maxi
mum schedule of the Payne tariff. The
duties imposed by the present law on
wines, liquors and spirits are increased
40 per cent in the maximum provi-
sion of the new bill and this advance
would seriously affect the importations
from France of wines, principally of
the low grades. Italy and Spain would
also feel the effects of those duties
Trade Agreement.
Germany now gives the United
States nearly all the minimum duties
of her tariff under the provisions of
the German trade agreement; but un-
less she should offer to abrogate the
agreement and give this country all
of her favorable duties, the maximum
rates of the Payne tariff would ap-
ply. The German agreement provides
that six months notice of it's discon-
tinuance must be given by either
country, but it can be abrogated by
mutual consent.
The Payne bill places a maximum
duty of 20 per cent additional on the
following articles: Chemicals, tobac-
co, agricultural products, silk and
paper products, with the exception of
coal tar dyes and extracts for dyeing
in the chemical schedule, for which
there is no maximum rate of duty.
The rates of the Dingley law are re-
tained as maximum duties on pig iron,
structural steel, steel billets, iron and
steel plates, steel wires and numerous
other iron and steel products. The
maximum duties for the pottery sched-
ule are % per cent more than the
minimum, and for the sundries sched-
ule the increase is an addition of 25
per cent ad valorem. The flax and
wool schedules have no maximum
duties prescribed.
The Free List.
The principal articles on the free
list for which 20 per cent ad valor
EN- is provided in the maximum sched-
ule are coffee, crude natural camphor,
drugs for dyeing and tanning hides,
iron ore, oils. including petroleum, tai
low and tobacco stems.
Representatives of western states are
claiming that the new drawback pro-
vision in the Payne tariff bill is dis