The Barre daily times. (Barre, Vt.) 1897-1959, 1910-11-14
TARIFF WAR THREATENED
Between United States and Germany In
In Potash Exports.

Washington. Nov. IA tariff wal
is threatened between this country and
Germany as result OF tax imposed
BY the German government upon exports
OF potash which works to nvaldate
contracts involving about S27 100000 en-,
tered into between American firms and
German miners.
Tie state department has received ur-
gent appeals from agricultural societies
every breed of politician; the fertiliz-
er manufacturers and interested mercan-
tile firms, 10 intervene for the protecF
ton of American consumers When it
is considered that about 100000 farm
ers in this country are interested direct.
~ az consumers Of potash and that the
United States is practically dependent
upon Germany for its supply, buying
over one.half Of the empires total pro.
duction, ii is realized that the German
Reichstag, in imposing an export tax
upon this commodity which makes it
impossible for American firms to han
die il under the present contract price,
has cut directly into the welfare OF the
American farmer.
The farmer has taken quick notice
OF this state Of affairs with the result
tina. every diplomatic pressure is being
brought TO bear BY the state depart
ment to effect an amicable settlement
OF the difficulty Ambassador Hin aid
Ell by Representative OF the Bureau Of
Trade Relations NJ. II. Davis, is direct.
IL in touch with the German foreign
office. II Germany fails to aceede to
the demand OF the American diplomats,
it is highly probable that the maximum
tariff will be imposed upon every Ger
man importation into this country in re-
taliation for the action
The export tax upon potash which
was passed by the German reienstag on
May TO- last. Increases the price of
potash in this country about seventy
per cent. This tax was imposed after
American buyers, taking advantage Of q
peculiar situation in the German market,
had entered into contracts for vast guam
titles of potash at a very favorable price
For several years the production and
sale Of potash in Germany was con.
trolled by a syndicate which practically
dictated the output and consequently,
thu price Of potash. This syndicate ex-
pired in June. 1909. Friction between
the heads OF various subsidiary firms
OF the sydnicate made it impossible for
them to agree upon terms for a re-estah-
lishment of the syndicate This open
competition between the companies ma
turally forced potash down>to very
low figure. Forseering that future
agreement might again place them at the
mercy Of the German syndicate, Amer
lean buyers made large contracts with
the several companies. Most of these
contracts were for two years with the
privilege Of renewal for five years ut
the expiration Of that time.
Just exactly what the American buy
els anticipated did happen. The Ger
man producers smothered their differ
ences and they turned to the reichstag.
Several bills to force up the price and
limit the production of potash were in.
troduced, each one aiming at the Amer
lean contracts
Finally, in June, 1909, a bill was
passed imposing the heavy export tax.
The American manufacturers had al
ready made contracts for the sale Of
their products at prices based upon the
figures Of their German contracts.