Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1910-01-12
TARIFF FIGHT
W|THGERMANY
IMMINENT
HALF A BILLION DOLLARS
WORTH OF TRADE INVOLVED
Slight Hope That Secretary
Knox and KaiserS Envoy
May Reach Agreement Be-
fore Present Pact Expires,

II3y Morning Journal Special Leased Wlrel
Washington, Jan. lf.--Nearly half q
billion dollars worth of trade is the
stake in the game Of diplomacy now
in progress between America and Ger
many. and the issue viii be known
within month.
on February {, i'm accordance with
the notice given to Germany last
April by the state department, the
reciprocity arrangement made during
the Dingley act with Germany viii cx-
pire. and simultaneously the general
tariff rates of that country will apply
to all imports from America unless in
the short period intervening Secretary
Knox and the German ambassador
reach mutually satisfactory UNDER
standing.
At this moment the indications are
that this understanding is beyond at
tainment and that ii viii be only under
the stress of IA bitter and costly strug-
gle that the two nations can compose
their differences and restore their
trade to normal conditions.
America y IN not be the only suffer
er from this rupture, for on April
next the full rigors of the maximum
tariff rates carried by the Payne-Al-
drich tariff act will be automatically
applied to the vast German import
trade which in 1908 aggregated more
than one hundred and sixty million
dollars, and every article of German
production coming to America must
pay 25 per cent increase in the duty
Negotiations have been in progress
for months between the two govern
ments to avoid this issue, but an OBJ
stacle has been reached in the demand
of the state department for the re-
taxation Of the German prohibition
against American cattle.
The German government takes the
position that these restrictions found
ed on veterinary and sanitary grounds
embodied in laws of general applica-
ton cannot be regarded as properly
discriminatory against the United
States and that it would be as reason /
able to expect America to repeal or
suspend the pure food laws as to re-
quire the German government to dis
regard the provisions of the animal |
importation act.
Just what this fight will mean is
revealed by the statistics of German /
American trade for 1908, Germany
sent to America in that year goods |
valued at more than $50, 900, |
two thirds Of which were dutiable and I
on these there would apply an in
creased tariff rate Of 20 per cent
On the other hand. America shipped I
to Germany, our second best custom
er among nations, no less than three ,
hundred million dollars worth Of
products. Many of these viii have to
pay increased rates after February I.
But in 1903 twenty mine million dol
lars worth of American wheat en-
tered Germany and this must pay
penalty of two marks for each hun
dred Kilograms this year, which
would probably result in the transfer
of all Of this trade to Argentina, Can
ada or Russia.
Corn was shipped to Germany to
the value Oh five million dollars in
] 9OS and the increased duty that will
be exacted on this staple will be three
marks per hundred kilograms, prac-
tically a prohibitive rate.
Ninety million dollars worth Of cot
ton formed part of the exports TO y
Germany in the same year. and while
this is at present on the German free
list it might still be subjected to a
heavy duty IA the German government
should have recourse to It's fighting
tariff"
Hair a million dollars worth of
American apples and four times that
amount OF dried fruits viii have TO
pay an excess Of between four and
ten marks duty. Failing an amicable
between the two govern
ments. six million dollars worth of
sawed lumber viii nag double duty
and great number of other American
products will suffer in like proper
ion.
on the whole, the effect upon
American export trade win be far
greater than in the case of the abro-
cation of the French reciprocity
agreement. only a small number Of
American products were concerned in
hat. while tho German tariff covers
he whole range Of imports.
-s,.-