| Show TARIFFS WORLD i modern tariff systems is the title of n monograph just issued by the treasury bureau of statistics it presents in concise lonn a statement of the three systems now applied in the principal commercial countries of itha world and s of especial interest at this time in view of tha tariff discussions and pending tariff legislation jn certain J european countries the tariff systems now in use among the prominent countries of the world may be classed linder three heads the general tariff system the general and conventional tariff system and the maximum and minimum tariff system the system of a general tariff is the of those enumerated and consists in having a single schedule of import dumica which is applied to alio goods of all countries distine tiong such a tariff is altogether an act legislative branch of the government it takes account only of the needs of the home country and recognizes foreign commercial relations only in so far as the latter arc in harmony with home interests the system of general and conven bonal tariffs however makes a dis linc goods which come from dif ica the fact thal na make me of a general tariff often find themselves compelled to cliance this tariff when they later make commercial treaties is evidence of how difficult it if to maintain such a tariff intact but since modern nations are practically compelled to have more or leasa commercial relations with each kotlier some way of regulating thane relations must be found and the usual method of fit curing this end ia by means of a mutual between the countries in question generally one nation declares itself ready to grant doroe concession or reduction in its tariff it a corresponding is offered in return if an agreement is reached a treaty is then made and as a rule iw willingness is expressed to make further tien with other countries under Rii nilar conditions lucli a treaty will usually introduce new tariff rates if tho elate substituted these rates for those in the general tariff then no change in the system tokea place tho usual course however is for the state bonow maintain two columns in its tariff schedule the first for those countries the most favored tiar tin treatment which is called the treaty or conventional tariff and tho second containing the original rates for those countries not receiving this treat licht and termed the general tariff tiie rates of alio conventional tariff arc of course never higher than those of the general schedule and are usually lower it may be however that one nation regards it of importance that a rate 0 reduction of which ia re the other power should not bo increased dining the period for which the i treaty ia made tho making of an agreement that rates shall not be changed ia termed binding sochrates such rates that ia tho conventional tariff ia composed of reduced and bound or fixed rates the general schedule may bo changed at anny time without breaking any of the conditions of the treaty but the conventional only dixs changed by the consent of both parties the general tariff ia framed with the acknowledged purpose of being the basis for the negotiations of commercial treaties A conventional schedule i drawn up n these treaties and by tho action of the favored nation clause the conventional tariff becomes BO extended in application that as a rule it is the exception to apply the general tariff ton this reason the general tariff is regarded mainly in alio light of a preliminary of abo real tariff aa H consequence the rates in the general schedule are not infrequently made rather high so that they can readily be reduced and concession demanded in return there i always alie possibility jio wever that the negotiations may be broken off cpr some un forseen reason and ahe underfed high ratan bacomo actual rates this 1111 generally exerts a restraining influence in the framing of the general tariff the course which eventa in the field of commercial policy may tako will always exert considerable sid erable influence in tho formation of bubli tariff schedules but the main con siJe ration must always be needs of abo ciomo producers alio most prominent country using the general and conventional system is germany the general tariff is practically that of 1879 with the later amendments the conventional tariff is made up of contained in the commercial treaties with austria italy belgium switzerland russia roumania greece and partially through commercial treaties and partially through alio action of the administration in making most favored nation agreements germany lias extended the application of tho conventional schedule until it is now given all european countries except portugal the general tarin therefore has only a very limited scope and in this case may be regarded as a penalty tariff in austria the general is based on the laws of 1882 and 1887 the conventional tariff is the result of several commercial treaties and practically applies to all countries of importance the maximum and minimum tariff system is distinguished from the above system first of all in its form instead of having two rates for a few articles it has two rates on most articles on which duties arc imposed arid for this reason is frequently called tho double tariff system in the application of these rates the maximum schedule corresponds to alic general schedule and the minimum schedule to the conventional schedule of alie system just described since the minimum rates arc given only to those countries which receive tho most favored nation treatment the characteristic difference between alio two systems however arises from the difference in their origin the minimum schedule h not drawn up by between the executives of the two countries but is framed ly the legislative body at the same time that the maximum schedule is made that is the legislative power fixes tw orates of duty on each article in the tariff the higher rate is the one which fixes the maximum extent to which articles may be taxed on entering the country the lower or minimum rate is the one which fixes tho minimum extent to which alio duty may be lowered if it is desired to make commercial treaties at any time these two rates show alio exact limits beaw ceil which the treaty rates are to he fixed the countries at present using a multiple or maximum and minimum tariff system are spain france ll brazil greece and norway |
