Selling price of iron ore and price of pig iron at date of buying movement, 1894 to 1908.

[Furnished by Mr. George Smart, Editor of the Iron Trade Review.]

This table, which shows the value of manufactures imported into and exported from the United States and United Kingdom, respectively, at quinquennial periods from 1870 to 1907, is especially interesting in view of the fact that it compares the trade in manufactures of the United States under protection with that of the United Kingdom under free trade. It will be noted that the increase in imports of manufactures into the United Kingdom has been more rapid than that into the United States and that the percentage of growth in exportations of manufactures from the United States has been much greater than from the United Kingdom. The United Kingdom's importations of manufactures grew from $277,000,000 in 1870 to $762,000,000 in 1907, an increase of considerably more than 200 per cent, while those of the United States grew during the same period from $229,000,000 to $638,000,000, an increase of considerably less than 200 per cent. In the exports of manufactures the contrast is much more strongly marked; the exports of manufactures from the United Kingdom were $888,000,000 in 1870 and $1,690.000,000 in 1907, a gain of a little less than 100 per cent, while those from the United States grew from $70,000,000 in 1870 to $740,000,000 in 1907, an increase of nearly 1,000 per cent.

This seems to disprove the frequent assertion of the Democrats that a protective tariff at home destroys our chances for selling abroad.

Exports of Manufactures and Total Exports of Domestic Merchandise from the United States, United Kingdom, and Germany, from 1875 to 1907.

The table which follows shows the imports and exports into and from free trade United Kingdom, and protective Germany, and the United States, respectively, from 1875 to 1907; also the exports of manufactures from each of those countries during that period. It is interesting to note that the total exports of the United States have grown more rapidly than those of either Germany or the United Kingdom, and the growth in the exports of manufactures has been much more rapid than in either of those countries. Manufactures exported from the United Kingdom amounted to $979,000,000 in 1875 and in 1907 to $1,690,000,000, having thus increased less than 75 per cent. dur

Commerce of the United States and United Kingdom and Germany, from 1875 to 1907. Showing exports of all

domestic merchandise; also exports of domestic manufacture from each country named.

protected country. over 625 per cent. the statement that protection injures the export trade of the from $102,000,000 in 1875 to $740,000,000 in 1907, an increase of about 130 per cent., while those from the United States grew 1880 (no data for 1875) to $1,047,000,000 in 1906, an increase of ing that time. Those from Germany grew from $460,000,000 in This seems to pretty thoroughly dispose of

Importation of manufactures into United Kingdom and United States, respectively, at quinquennial years, 1870 to 1907.

[From official statistics of the respective governments.]

Exportation of manufactures from United Kingdom and United States, respectively, at quinquennial years, 1870 to 1907.

[From official statistics of the respective governments.]

This table gives a full list of the countries which protested against the Dingley tariff bill during its consideration, and the value of merchandise exported thereto in the year prior to the consideration of that measure and of their protest, and compares with those figures the exports to those same countries in 1898 (the year immediately following the enactment of the tariff law) and in 1907, the latest year for which figures are now available. It will be seen that despite the protests against the Dingley bill and, in some cases, implied threats of exclusion of American products in case the bill should become a law, the exports to those countries have in every case greatly increased, the total exports to those countries in 1907 being practically double those of 1896, the year prior to the enactment of the law.

Exports from the United States to the countries which protested against the Dingley tariff bill, showing increase in exports after enactment of the law.

MODERN TARIFF SYSTEMS OF THE WORLD.

Three types of tariff systems have been adopted by leading nations during the more recent period. The earliest type is the single, or "autonomous," tariff. It is made up of schedules or rates which apply uniformly to imports from all countries, no favor or discrimination being shown to any one of them. It is also called "autonomous" because it is the result of domestic legislation only, with regard primarily to the wants and interests of national industry. While the character of such autonomous legislation is in most cases protective, this is not an absolutely essential element of the autonomous tariff. Cases are possible where a tariff of this character may be constructed along free trade lines.

The only example of an autonomous, non-protectionist tariff is presented by the British tariff, the duties of which are purely fiscal in character and therefore not adapted for change or reduction by tariff agreements.

The tariff systems adopted by most countries of the European continent differ from the British system, each tariff having a double column of rates. The rates in the second columns are of course never higher than in the first column, and as a rulelower.

In case this double set of rates is the result of domestic legislation and the mere application of these rates to the various countries the result of international bargaining, the tariff is designated as a "maximum and minimum" tariff. Examples of this system are presented by the tariffs of France, Spain, and Norway, as well as by the recent tariff of Canada. Whenever this second set of rates is primarily not the result of domestic legislation but of international bargaining, such a tariff is spoken of as a "general and conventional" tariff. Typical representatives of the conventional system are the German, Austro-Hungarian, Italian, Swiss, and the most recent Russian

tariffs.

The Maximum and Minimum System Described.

As can be seen from the short definitions just given, both the "maximum and minimum" and the "general and conventional" tariff systems presuppose international bargaining and agreements. The difference between the two systems is, that in the case of the maximum and minimum tariff systems the legislative body of the country from the outset fixes the limits within which concessions to foreign countries can be made by the Executive. After this type of tariff has been adopted by the national legislature the domestic producer is assured of a minimum degree of protection which cannot be reduced by the Executive through negotiations with foreign countries. Furthermore, the legislature may restrict the number of articles to which two sets of rates are applicable. For example, the French tariff provides only for a single rate of duties for the principal breadstuffs.

The Conventional System Described.

In the case of the general and conventional tariff systems the legislature fixes from the outset one set of duties only, which is sometimes called the autonomous set, being the result of autonomous national legislation. The process by which the second set of duties is attained is normally as follows: Country A and Country B, both having passed the autonomous tariffs, open negotiations through specially appointed agents with the view of obtaining reciprocal concessions from the rates found in the respective autonomous tariffs. Assuming that Country A is an exporter of agricultural and mining products, its negotiators naturally will attempt to obtain reductions of duty on the above products without paying any attention to the autonomous rates

found in the tariff of "Country A" on articles in the exportation of which their country is not interested. In case Country B is an exporter of textiles and chemicals the negotiators representing Country B will be interested in having the rates on these products only reduced by Country A. If the concessions granted by one side are found to be equivalent to those granted by the other, new sets of rates will be constructed which, as a rule, I will be lower in either tariff than the rates on the same articles adopted originally by the legislatures of the two countries. Sometimes the result of such negotiations is that some conventional rate adopted does not differ from the original autonomous rate, but is merely "fixed" or "bound" for the period of time during which the tariff agreement is to last. The conventional tariff schedule which results from such negotiations is therefore composed of reduced and "bound" or "fixed" rates. The general schedule may be changed at any time without breaking any of the conditions of the treaty; the conventional rates must remain in force during the lifetime of the treaty and can be changed by the consent of both parties only.

Such negotiations usually are carried on with more than one country and result in reductions or binding of rates on various groups of articles in the exportation of which the particular countries are interested. In case a country does not care to enter into such special tariff negotiations, relying merely on the most favored nation clause in its existing treaties with the respective country, all the conventional rates accorded to other countries as the result of special negotiations are granted to that country as a matter of course. For example, the United Kingdom, by reason of its most favored nation clause, obtained without special negotiation all the conventional rates granted by Germany in 1905-1906 to Russia, Austria-Hungary, Italy, Switzerland, Belgium, Servia, Roumania, Sweden, Bulgaria and Greece. Inasmuch as the greater part of the countries also concluded commercial agreements with each other and extended the concessions granted to any one of them to all others having most favored nation clauses in their treaties, it follows that all concessions granted originally only to one country in the cycle are applicable to importations from all other countries entitled to such concessions by reason of their most favored nation clause. It can be seen therefore that the application of the original general tariff adopted by the legislature is considerably modified by the conclusion of commercial treaties and that the conventional rates are the ones normally applied. These rates come into force by legislative enactment, each tariff convention or treaty with its set of new conventional rates being subject to sanction by the legislature. The conclusion of such tariff treaties on the part of the negotiators therefore presupposes not only an expert knowledge of the export industries, for which concessions are obtained, but also of the limits of concessions from the rates of the general tariff which may be granted without endangering the adoption of the tariff treaty by the legislature of their own country. For it must be understood that the terms of the treaty cannot be modified by the legislature, which merely reserves in itself the right to adopt or reject the treaty as a whole. In the case of the maximum and minimum tariff, unless the right to grant all or certain minimum rates for equivalent concessions is specially conferred upon the Executive by the legislature, a similar legislative sanction is necessary, though from what has been said above, it is manifest that the scope and freedom of the negotiators is more limited and restricted.

Important Difference Between the Conventional

Maximum and Minimum Systems.

and the

The most important difference between the two types of the double tariff system is that the maximum and minimum tariff leaves the Government free to change either the maximum or minimum rates whenever circumstances and changed industrial conditions make such action advisable. All that the Government binds itself to do with regard to the foreign country is to accord to it its minimum tariff. As the French negotiators