The Washington herald., 1916-07-16
WORLD TARIFF WAR EXPECTED
WHEN PRESENT FIGHT is OVER

the latter over the production and mar
kets of the whole world and of imposing
on other countries an intolerable yoke.
Allies Must Act.
In face OF so grave a peril the repre-
sentatives OF the allied governments con-
slider that It has become their duty, on
grounds Of necessary and legitimate de-
fence, to adopt and realize from now on
ward all the measures requisite on the
one hand to secure for themselves and
for the whole OF the markets OF neutral
countries full economic independence and
respect for sound commercial practice.
and on the other hand to facilitate the
organization on a permanent basis of their
economic alliance"
The Germanic. negotiators haYe not yet
issued their declaration OF war but II
there was the slightest chance that the
negotiations between Germany, Austria.
and Hungary might break down, 1t has
been destroyed by the allied proclama-
ton quoted above, and by the official
list OF steps to be taken by the allies
to strangle German trade. It has been
the German claim from the first that
England fomented the war out of COM
merctal jealousy, hoping to destroy a
trade rival, and the plan for a central
European zollverein has been. like the
allied scheme, defensive" from the first.
As a matter Of fact, believe It to be
true that the first movement toward
the trade war was made by Germany
but as in the case of the war Of armies,
Germany claims that she merely antici-
pated the plans Of her adversaries. For
seeing that the allies would unite to
strangle her economically after the war
as German writers began to declare
months ago, Germany In seif-defense
found herself compelled to organize a
central European zollverein which shall,
In retaliation, boycott the allies, and
persuade" by pressure 1t may be i'm
possible to resist, the little neutral coun-
tries bordering Germany and austria to
join. Germany at least scores one point
in the controversy that will rage over
which side began the war-the declara-
tion Of war. this time, has come first
from tho allies, and not, as in August
1914. from Germany.
The proposal OF the Paris conference
ranged under three heads, deal with the
war period, reconstruction period and
peace period. An effective blockade of
Germany and neutral countries, adjoin-
ing Germany Is urged, to prevent sup
plies from getting through during the
war, and one clause is pointed out as a
slap at the American blockade conten-
tons urged against England, and now
repudiated by all the allies.
Allies Continue Restriction.
THE allies the conference says, will
complete the measures already taken for
the restriction of enemy supplies .
making the grant OF licenses for export
to neutral countries from which export
| to enemy territories might take place
conditional upon the existence in such
countries of control organizations ap-
r1r ra6 hxy ~. all L.
OF such organizations, upon special guar
antees. such as the limitation OF the
quantities exported, supervision by al
lied consular officers. etc"
It Is in the reconstruction period" to
last "a term Of years" to be fixed by the
allies. that the penal measures against
German trade and shipping are to be
taken, and for the peace period" only
vague generalities about rendering allied
countries independent of enemy coun-
tries in raw materials and manufactured
articles" are put forward.
Damage VIII Be Done.
H. W. Massingham. a well-known lib
eral editor and economist, in an un-
friendly analysis of the allied proposals,
declared that irreparable damage will
be done in the reconstruction period. d"
The central question for U.S." he de-
would inture our trade and diminish our
wealth. though they are bound to do
/ both; it is whether We can deliberately
adopt as our policy the idea that after
/ the war the peoples Of Europe must still
be divided into two camps, bent with
frankness that they never at the
worst confessed before it, on mutual
hostility and mutual injury. That con-
ceptfon has been repudiated in the sharp
b,r Mr Acp
Sir Edward Grey. When the German
Chancellor complained that we had set
before ourselves as the chief Of our war
aims the destruction Of German we'll
being and German trade. the prime min
tster lost no time in dispelling the charge
These resolutions mean that the enemy
will, after peace, be the enemy still
They mean that, even at the admitted
risk of injury to ourselves. we shall seek
to limit his trade and diminish his pros
pertty.
Useless to Talk Peace.
If half Europe is seeking to exclude the
other half from its markets, to penalize
its industry, and to cut off its supplies of
raw material. it is useless to talk of con-
ferences and leagues to enforce peace
If we persist in this mood, let US at least
realize what it means. 1t means that
peace itself can be only a sullen truce
war after peace means penal tariffs
closed markets, and barred harbors But
1t also means all the old rivalry in arrna-
ments, the old conflict Of alliances, and.
once more in an aggravated form, the
working Of all the causes, moral and
economic, which made this war.
The effect of these resolutions is vtr-
tually to enforce for number Of years
after the war a prohibition OF trade with
our present enemies, which, without be-
ing absolute, is none the less intended TO
be effective The most favored nation
clause will be denied them, a provision
which tacitly implies that we shall
adopt general tariff. 1t is hardly nee
essary to enlarge on the confusion and
loss to trade with which all these meas
ures, and their corresponding retalia-
tions, would scourge our commerce
They must impoverish considera BILE
tracts Of northeastern England.
Concession Is specious.
There Is something specious in the
concession that these drastic measures
OF virtual prohibition shall be transit
donal for a number of years only. The
teaching Of economic history is that
such temporary regimes bring about, at
heaVy loss, readjustment of commerce
on both sides which tends to be perrna