The Washington herald., 1916-01-09
Germany and Austria Strike
First by Forming Zollverein
for Internal Free Trade and
Boycott Against Foes if
They Adopt Prohibitive
Tariff to Throttle the
Teutons.
by JOHN r.. BALDERsroN.

the paramount pontlcal issue IN the Cnl-
ted States would be the question of TAX
ing part in a great trade war between the
late belligerents.
What at that time was highly probable
has now become a virtual certainty.
Germany has thrown her cards on the
table. Nothing in her conduct Of the
war has more impressed the financial and
economic experts among her enemies than
her discard at the moment when ninety
nine out of every hundred of her people
believe the war is won Of her now utterly
unattainable military aire and her
prompt. efforts to anticipate and check
mate the economic plans of. her enemies
70 crush her after the armies go home.
The supreme interest attaching at this
time to the coming trade war lies in the
fact that the plans now made will be car
ried out regardless of the results of the
military campaigns fought before the
peace treaty. Discussion Of political
aims may be rendered worthless by
events on the battlefield, but only the
complete overthrow and subJugation Of
one group Of powers by the other, which
now seems unthinkable, can prevent an
economic struggle which cannot but
Sravely AFFECT America for good or evil.
Germany Strikes First Blow.
Germany. as on the battlefield, struck
the first blow in the trade war by the
fOrma ton Of a Zollverein which now in
% clUdes Austris- Hungary and the German
empire. and which there is every reason
TO believe will also include Bulgaria and
Turkey. well as Roumania and Greece
If they can be induced or compelled to
join the central powers. 1t is hinted by
German writers that Bulgaria and Tur-
key have already agreed to come into
the agreement and that Scandinavia,
Holland and Belgium will be dragged
into the new customs union after the
war.
The two great central empires alone
will form. when the agreement reached
by the Kaiser and Emperor Franz Jo-
seph in Vienna Is ratified by the par
liaments and put into effect, the great
est free trading unit in the world, sur
passing the United States in population.
The construction of such a unit" said
the London Nation before the fact of the
economic union had been verified, would
be perhaps the most momentOus and
faLeful change which could take place
in Europe"
The principal object Of the Germanic
ZOllverein is defensive. In other words,
the German rulers realize that they can
EOt-w command OF the sea from Brit
ain or crush France and Russia and
that. accordingly, they must meet an
economic boycott or at least prohibitive
taTiHs, from their present enemies
The ZOllverein, in its turn, will exclude
goods Of allied manufacture in retalia-
ton, and German economists claim that
Middle Europe" as the TeutOnic allies
now style themselves, can by revolution
airy agrarian and Industrial changes
support itself and win a great future
by the exploitation Of Asia Minor, and
possibly, lands further East which can
not be protected by allied sea power.
It can. be definitely stated that the al
IHaaE h0W IL
boycott Of Germany. and it is this agree
ment which led the Germans to COM
mence forming their own economic
system.
Long after the guns have been 81
lenced,' NJ. Bark, Russian minister of
finance, has declared, the fight will con-
tinue on other ground. Already we are
taking measures to continue without
mercy the economic battle" Coming
from the country which, above all others,
had been dependent on German finance
and German industry, this announcement
made great impression in Germany
Pierre Baudin, until recently French
minister Of commerce, said: When the
allied armies have dictated to the enemy,
on his own territory. the severe condi-
tons Of definite peace, the war will
not be over. It will continue on economic
and financial grounds and we are we'll
rewarded in knowing all the means of
which Germany has disposed in order to
gain victory" Similar outspoken sentf-
ments might be cited from Italian, Bel
gian and Serbian statesmen, and from
colonial premiers, while the cautious
Premier Asquith assured Parliament in
answer to question on the subject that
steps are being taken, in conjunction
with our allies"
Big Changes After the War.
What is it that will happen after the
var? Simply that all the great powers
Of the world excepting the United States
will throw overheard the economic prin-
cipal that free trade or protection would
be adopted to increase the national
wealth, and will revert to the system OF
the middle ages. building tariff barriers
10 lnJure one another, regardless of the
effect on food prices or Of great losses
suffered by themselves in other ways.
Germany the allies will say in ef-
feet, must be kept poor at no matter
what cost to ourselves, or she will ac-
cumulate enough wealth to again try to
conquer the world. And we are deter
mined to prevent another and more ter
rible war
The allies with be the Teuton answer.
by denying us the markets Of the world
force US to combine for our own protsc-
tion and boycott them IN retaliation. II
is true our organization was perfected
before theirs, but our aim, just as when
we declared war on Russia, is none the
less purely defensive"
And how will this AFFECT the United
States? America will be the only power
in the world strong enough, IL she cares
to do 80, to refuse to join either group
The German Zollverein, as has been said
viii adopt free trade within its own bor-
ders and prohibitive tariff for out
siders- The entente union. whether or
not 1t adopts entire free trade between
all its members-a most difficult problem
will at any rate exclude Teutonic goods
and to build up its trace entirely In its
own, group. ITO gather the economic
fruits Of victory without affecting the
sovereignty Of any allied state" said
M. Carton de Wiart,. Belgian Minister
Of Justice, sit will be necessary to COM
pare the conditions of manufacture in
each one, to avoid the imprudent and
Iimitless development Of production in
competition one with another, to deter
mine each nations place In the economic
struggle and to reserve corresponding
advantages for each one of them"
The logical result of this eonafnp uvor