The Cairo bulletin., 1909-03-21
WILL BE PRECiplTATED IF
PAYNE BILL PASSES, SAY
ENEMIES OF MEASURE.
The CUBAN RECIPROCITY
And Other Difficulties of Operating
Maximum and Minimum Tariff
Held up For Discussion
81 Philippine Free Trade.

Washington, March 20.-That the
Payne tariff bill would bring about
great international tariff war If en-
acted because of the section which
continues in operation the Cuban
reciprocity treaty, Is one OF the ar
guments made against the measure.
1t is urged that foreign countries
which would otherwise agree to give
the United States the benefits of
their most favored nation clause il
return for the minimum scale of du-
ties provided for in the Payne bill
viii Contend that the CT Ian reci-
procity provision is the most favored
nation. clause of the American tariff
and will therefore refuse to enter in
to low tariff agreement with this
country.
Not Overlooked.
This difficulty regarding the Cuban
reciprocity treaty and its relation to
the maximum and minimum tariff
provisions of the Payne bill was not
overlooked by the farmers of that
measure. The subcommittee which
drafted the bill considered the posi-
bility of claims being made that the
clause continuing the treaty with
Cuba discriminates against other ma
tions and would therefore not entitle
the United States to the minimum du
ties of other nations.
After discussing the matter II was
agreed to allow the provision to re-
main In the bill upon the assumption
that other countries would recognize
the unusual relations existing be-
tween the United States and Cuba
and would not object to lower duties
which the island republic would ge,.
Furthermore, In support of this argh.
ment, it is contended that Cuba ships
to this country articles which do not
compete with our imports from the
countries of Europe.
Other Difficulties.
There are other difficulties in the
way of operating successfully the
maximum and minimum tariff. Most
of the European nations have special
trade relations on certain products
with their neighboring countries and
II would be inconsistent for the Uni1 |
ted States to expect 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
maximum tariff provisions in such
way that practically every country OF
Europe will be compelelled 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 American industries the same |
opportunity for trade that they grant |
other countries.
The Drawback Provision.
The representatives Of the western
states are claiming that the new
drawback provision in the Payne tar
iff bill is discriminatory against the |
west in favor of the east. The re-
yised drawback section permits man
ufacturers to secure a regular draw
back of 80 per cent on the duty paid
on imported raw material without
the necessity of using the imported
material in the manufactured product
that is exported Raw material OF /
domestic product. in an equal quanti-
ty and of similar character, may be
used instead of the imported mate /
rial
The western members of congress
contend that this tends to give the |
manufacturers at seaboard decided |
advantage over those in the interior
on account of freight rates. One IL
mstration offered was that of flour |
manufacturer In Minneapolis who inn
ports from Canada a thousand bush
els of wheat on which he intends to
collect drawback when it is exported.
He would find it more advantageous
under the new provision drawback
provision to dispose of his hour in
the local market and purchase an
equal amount of flour at some seaport ].
for expectation. This would save him
transportation charges from Minneap-
oils to a seaport, and the manufactur-
or would at the same time secure his
drawback on the -four exported. !,
Under the present law the -four eX-
ported would have to be made from
imported wheat in order 10 secure
drawback.
For Honest Exporter.
The Ways and Means committee
claims. however, that the new draw /
hack is for the benefit of the honest
exporter who has been laboFing un-