TARIFF WAR.

Dominion, Volume 4, Issue 959, 28 October 1910, Page 5

TARIFF WAR.

•AMERICA AND GERMANY FALL OUT,

By Tekgraph-Prese Association-Oopjright.

(Rec. October 27, 10,25 p.m.)

London, October 27.

Reuter's Borlin correspondent states, that Mr. Knox, the American Secretary of State, has intimated to Germany that America is bound to resist the wrong inflicted on Americans by the retroactive Gorman tax on potash, as American contracts have been made in good faith with German exporters.

Mr. Davis, a special United States Commissioner, has informed the German Government (hat unless the American demands are satisfied tho provision of ,'the tariff law imposing an extra 25 per cent, duty on imports from nations discriminating against the United States will probably be applied to German exports.-. ■

A trade war is thus in prospect which is almost certain to react on the political friendship which has been cultivated between Berlin aud Washington since 1897.

The German potash law regulates the production and sale of potash in Germany for the next twenty years. By the erection of a trading corporation which will completely control saies.it is sought to prevent- the "squandering of salts of potash; abroad at unduly low prices." Writing in January of the United States protests against the German law, the JNew York correspondent of "Tho Times" said:—"What are tho grounds, for the interpretation of the potash trust, as .undue discrimination is not altogether clear. Perhaps the fact,that the United States annually consumes 60 per cent, of the German product may bo held to place this country in an exceptional position, and the prohibition of sales 1 thereof abroad at (less than the maximum prices at home may be considered; to be equivalent, to an export tax." A'tariff war between Germany and the United States would be much more, serions than, one between that country and France,.of which there was recently some danger, lln 1908 German exports to the United States amounted in value to .£32,000,000,. while 'American exports to Gcrmany : amounted: to .£60,000,000, Germany ' ■ being, next to Great Britain, the best customer of tho United States. Moreover, by the German trade agreement practically all American imports receive favourable treatment, while the French agreement referred only to a cortain number of articles.'