The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-12-29

The development of the German
potash situation has brought only warn
ings TO the United states Government to
proceed with great caution. The special
purpose of the maximum and minimum
clause OF the tariff of 1871 was the pro-
lection nj American products from any
undue discrimination against them VA
foreign markets The commodity IN
question IL German product IN Nh"
sale of which there l. no discrimination
whatever, except r''rtain advantage
given 10 Germany = hom" market. an
advantage 20 which the people of that
country have an unqucstionablc right.
The trouble arises over the inrcrpre-
tation of a further provision OF section
. OF the tariff act That declares lIahle
10 our maximum rates the products OF
any country that paws an export bounty
or IMPOSES an "Nport duty. or that
prohibits exports 10 this country in a
pianner that ~undulv dlSrriminates
ac,linst the I nited States or the PROD
uCts thereof IN. issue does not in
volve the export bounty or export duty
VI 'hNlpll III ~ ~ Nv
OF these processes ar" conceded lights
and the right l. exercised ~ many in
stances. II is only where tho exercise
OF that right can he regarded "a an
undue discrimination against American
iIt"rests that resort to the PENALTY of
our tariff law Is propcrIv warranted
II Germany granted an export bounty
L.,
none to the nItcd states, II an export
duty were imposed on sales To this conn
tfN and not 10 AL other count r"S ar #
sal'-1 10 tn" | nlrSi Siar... were pro-
l.hited while sales wcr,' freely made IN
o her markets. the dIs"riminar ion would
h. Entirely ,l.ir and would call for re-
Iri~al under n" tariff law No claim
j. made that such Conditions exist Tho
t,.rlus under which sales ar" made to
American buyers ar" the terms for all
Broadly then ther" Is no dis"rlmina-
ton, but ther. has been. b German
official action, injury TO group of
American buyers OF German potash
IL does not appear that thsr" Amer
lean buyers wcr. entirely Innocent VIC
TINS They entered into contracts for
quantities of potash on an agreed upon
price basis with AT least som" knowl-
elge of possible future conditions. A
German law of 1910 coup.S a large
increase in those prices tn" German
contention is. in effect. that this results
in a possible breach of contract. for
which redress NAV b. sought in N.
courts. The cas-" As presented nv Ger
many takes the question quite out of the
domain of tariff regulation German
denial Of discrimination seems 10 be
fully supported by the facts. and the
affair appears 10 he traders quarrel
about prices under a contract
The imposition "f the I"naltv pro-
yided by the Payne tariff law would H.
a serious matter for both countries. |,
would materially decrease the volume
of oair sales 10 Germany. and would
materially increase IN" price her" 81
many articles now bought from Ger
many. IN tho frst case under the new
system If tariff adjustment the author
titles of this country must b. absolutely
sure Of their ground before proceeding H.
the Use Of extreme measures. The pri".
of cotton glove. andstockingS. IT fur4 and
chinaware, IT many millions Of dollars
worth Of cotton laces. edgings. r,IchlngS.
embroiderias. curtains and such wares.
and Of many other articles. would he ap-
preciablv enhanced nv tariff war with
Germany. If the Administration takes
the country into trade war on account
Of potash. it must he prepared 10 make
good case for presentation ~ the
Users and wearers # scores Of articles
having no relation whatever to m,Iriate-.
nitrates, hydrates and carhonates.