New-York tribune., 1909-07-06
4 POWER WISELY USED.

The debate in the Senate the maximum
minimum section of the tariff bill showed that
there was little substantial opposition to the
reciprocity programme favored by the last Re
publican National Convention and now approved
by both houses of Congress. The advantage to
the United States of being in a position 10 meet
trade determinations and TO repay fair and
equal treatment on the part of other nations IS
obvious. 1t is manifestly to our interest to have
at hand weapon for defensive Use against any
country which insists upon entering our market
a most favored nation basis while denying
us commercial favors which il grants 10 GER
tain of our competitors. The United States has
tried 10 treat all other countries impartialy. 1t
is willing to give to ans one of its associates
in international trade what it gives to all the
others. 1t has always held fast in its treaties
of commerce to the most favored nation theory.
But since other countries have taken to using
double tariff schedules in order to give an ad
vantage here and withhold it there, the United
States has been driven by force of cirCum
stances to employ similar device for its own
protection.
The chief criticism Of the maXimum-min
mum plan is therefore directed not against its
primary purpose but against its supposed in
direct effect in upsetting normal trade relations
II is inevitable that war measures, when ap-
piled, should not fit entirely with peace cond-
tOnS. Undoubtedly. if we were to be forced to
apply the maximum duties against many ma
tons commerce would be disturbed, duties on
foreign imports would he considerably in
creased and importatiOns would be consider
ably diminished. Yet If we felt Obliged to carry
on commercial hostilities with many nations
such results would follow, whether we had
double tariff system not.
The critics of the maximum minimum plan
seem 10 think. however. that somehow the
higher rates will be brought into general use
under practically normal conditions. They
charge that Congress and the President intend
to provoke tariff wars and that on the slight
est pretext the lower schedules will be ahan-
dOned for the higher Our contemporary. The
New York Times" is much exercised at what
it considers the danger of a permanent state of
embargo under the provisions of the new tariff
bill. 1t says:
So far as our own consumers are concerned il
1.-The double schedule pIanI is trick to procure
prohibitory duties wherever opportunity offers
in the interest of the mDnOpOlistfc trusts II ia
intended as one more burden on foreign COM
nerce TO be borne by the American people Il
burden that may be laid at any moment without
serious warning, with necessarily disturbing and
possibly ruinous force. The merchant, for ex-
ample, who is doing a fairly paying business in
imported crockery carrying a duty Of so per
cent may find the cost of his goods increased
by 25 per cent and all possible profits wiped
out because France admits Turkish prunes with
a duty one-half a cent a pound lower than the
duties On DTuHtS from NdluOTnd, ana this
though California prunes may not go to the
French market.
Now. as we have several times pointed out,
the maximum rates are not to be enforced
against any country which does not discrim-
mate materially against the United States The
President is TO enjoy a wide discretion in judg-
ing whether the discrimination is serious and
intentional and too deep rooted to yield to
friendly negotiation. The prune example which
The Times cites is not convincing. and
violation of the most favored nation principle
which might be dismissed as too trining Ia
notice. Yet were such minute differences TO be
construed by the President as grounds of re-
prisal is it to he assumed that France in order
10 giye Turkish prunes an advantage of one-haIf
deliberately choose to accept the imposition Of
an. extra % per cent dd rGiOrem tax on all
French goods sent TO the United States The
question answers itself AS we have repeatedly
shown. the great bulk of importations into this
country comes from countries which now give
us favored nation treatment and have no motive
for disseminating it. Only small fraction of
our imports probably less than 20 per CENTS
likely to be affected by the adoption of the
maximum minimum plan. But the countries
which discriminate against us are more
likely to abandon their determinations than TO
invite an extra charge here the products