The Washington herald., 1913-10-12
OFFICIALS STICK
To OPINIONS
Think Attorney General Will
Agree with Them on 5
Per Cent Clause.
TWO COURSES THEN OPEN
United States Would Have to Change
Law or Abrogate Treaties with
Other Nations. ...

Continued confidence that their con-
struction of the per cent preferential
clause in the new tariff law will be up
held by the Attorney General in the Opin-
lon which ne will render in day or two.
yesterday was expressed by officials uf
the State and Treasury Departments It
is contended that if the 5 per cent dis
count provided for in the law is given to
goods brought in vessels of American
registry it must be given also to goods
brought in the vessels of practically all
the great maritime nations.
Should the Attorney General take this
view it is declared that the United States
then will nave but two alternatives from
which to choose, that the measure must
either be stricken out Of the law, or else
that the President must abrogate praC-
ucally all the commercial treaties which
the United States have with other nations.
They hold that it is quite impossible to
think OF the United States voluntarily
knocking of about 100000 from its
customs receipts by scaling down II
duties on practically all goods brought
in from abroad.
Little short of Catastrophe.
The abrogation OF ali the commercial
treaties of the United States IS a step
which fairly makes State Department
officials shudder. Such a step, il is held.
would be little short OF 4 catastrophe At
this time, when the United States has
quarrel on with about every important
country of the world.
Inasmuch as the new tariff law con-
tains nothing in the way OF maximum
and minimum duties or other means bv
which this government can protect its
trade against discrimination abroad, II
is not seen here how the government
would be in an advantageous position for
the negotiation OF new commercial
treaties TO take the place Of the existing
ones should they be abro2ated.
State Department officials See in the
discussion OF the = per cent preferential
much misinformatiOn. They point out
FOR example. that foreign governments
will have no cause to protest against the
preferential if it is construed in the Only
way that the State and Treasury authori-
les find it possible to cOnstrue il: that
= by giving its benefit to all nations
having treaties emitting them TO lcciI-
rocal treatment. Foreign governments
would be delighted, of course, at 4 still
further lowering Of the tariff on all inn
oOrtations.
Bonus to Foreigners.
In fact, officials here are unable to
see how the operation Of the preferential
would be anything else but a bonus TO
foreign exporters. paid out of Uncle
SANS pocket. The amount OF American
shipping engaged in foreign trade is
negligible. while practically all goods I'M
7orted into the United States are brought
II foreign bottoms.
Officials here have not Vet been able
Z, conceive of any circumstances under
which a single American vessel would
receive the benefit OF the discount with |
h.4iu orr Mt
foreign ship. What little shipping the
Tn ted States has engaged in foreign
trade visits countries whose goods are
distributed abroad by the vessels of coun-
tries having treaties emitting them to
eVual duties on goods brought in their
vessels as in American bottoms For eX
ample. most of the foreign trade in which
American ships are engaged is with the
West Indies, Mexico. and Central Amer
i,a. But British and German vessels do
the greater part of the carrying trade
for these regions. and bring their goods
into American ports Under their treaty
provisions. the per cent discount could
rot be given to American vessels bring !
Ing goods from these countries, unless il
" ere also given to the British and Ger
man vessels. The reason for this is that
most of the treaties covering this point |
provide that it shall make no difference |
from what country these goods in foreign |
,ording to the treaties, must be charged |
on them as if they were brought in |
American ships.
Would AntaGOniZe France.
1t is contended by members of the !
House. supporting the preferential, that, |
imasmuch as France has no such treaty |
as have most of the other maritime Coun- !
tries American vessels bringing in |
French goods could be given the benefit |
of the discount. But it is a fact that |
British, German. and vessels Of other ma |
tionalties, protected by treaties, bring !
french goods into the United States, so |
that the discount would have to be given |
them. The result would be only to make !
q trade enemy out of France. which al
ready has served notice on the United |
States that il this is done, American |
goods brought TO France will have to pay /
LiGher duties