Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1916-03-04
Arranging Trade Combinations.

American producers and manuIdc-
turers are deeply interested in the
movement on foot among the warning
nations of Europe 70 control trade af-
ter the close Of the war. There has al
ready been much discussion Of the
prepara ions On foot in England. A re-
cent development was the unanimous
adoption Of resolution by the cham
Der Of commerce Of Vienna proposing
on economic union Of Austria and Ger
many to render them more indie
pendent Of their political and CONNER
c.al opponents in regard to the supply
Of necessary foodstuffs, raw materials,
and industrial products. and enable
them TO defend with greater energy
their commercial interests in the world
market"
The character Of 2 treaty providing
for such union is thus outlined: 1T
should provide for the longest possible
term Of duration. The contracting ma
tions are to regulate their commercial
policy according to a unified plan and
will act as a unit in the negotiation OF
commercial treaties with other coun-
tries. In order to make this posi-
BILE" says the resolution, "the two
governments must first come to an
agreement as TO the customs tarin
which is to be used az a basis for
negotiations. This will be accom-
plished most successfully by the adop-
ton Of common tariff system"
The resolution gives expression to
the belief that mutual support should
make it possible for the two nations to
Lring al! their economic powers to
full development. increasing the con-
suming power Of the population, lower
the cost Of production, specialize in
dustry, and win for themselves an In
creasing share in international COM
nerce. 1T Is especially desirable that
the monarchy and the German empire
shall favor each other in tariff matters
10 the greatest extent compatible with
"A due regard for the protection OF
home industries allowing for differ
ences in the conditions Of production.
Through careful reconciliation OF these
differences the necessity for such pro-
ton chat Is, between the two con-
tractipg powcrs) must gradually be
lesscncd and, whenever possible. set
aside" Finally, the resolution re-
it"": Especially is II to be desired
that the commercial union Of the CEN
trail powers shall be recognized In the
r"ac" treaties with other states. and
that every claim to most favored ma
I ton treatment shall be excluded at the
outset"
/ The proposal to exclude claims OF
other countries to any benefits under
the most favored nation treatment, is
particularly significant as marking a
step in the direction Of the American
policy Of interpreting commercial
treaties. In Europe. a treaty extend
ing benefits to a particular nation, ipso
facto extends them to all others, un-
der the most favored nation clause
The American Interpretation Of such
treaties requires that for third
party to enjoy similar benefits 1t must
make similar concessions. It was un-
der the European Interpretation that
the treaty which Austria effected with
Prussia in 1853. reducing import du-
ties, resulted so disastrously for the
former because It gave England equal
benefit in the Austrian market, with
out any quid pro quo.
Furthermore. the resolution indi-
Gates the disposition Of Austria to
double up with Germany for CONNER
cial teamwork. The two countries