APPENDIX  D.—REPORT  ON  GERMAN  TARIFF.

25

March  27th,  1901,  in  which  it  was  stated,  “  the  rise  is  hindered  somewhat  by
“  Dutch  and  Belgian  competitors,  especially  in  the  English  home  trade,
“  which  is  chiefly  possible  through  German  rolling  mills  furnishing  them
“  cheap  raw  material.”  (Wire  nails  are,  of  course,  made  from  wire  rods.)
The  report  goes  on  to  say  that  for  the  home  trade  the  price  of  wire  nails  is
19^  marks  per  100  kilogrammes,  i.e.,  9s.  11  d.  per  cwt.,  and  for  the  English
market  7s.  to  7s.  6d.  per  cwt.  f.o.b.  Rotterdam.
As  to  files  also  (No.  812),  it  has  to  be  noticed  that  while  the  draft  tariff
proposes  to  decrease  the  duties  on  those  over  35  centimetres  long,  it  also
proposes  to  very  considerably  increase  the  duties  on  the  smaller  sizes.  The
large  files,  according  to  our  information,  are  seldom  imported  into  Germany
from  the  United  Kingdom,  and  it  has  been  represented  to  us  that  the
increase  in  the  duties  on  the  smaller  sizes  is  evidently  intended  to  destroy
such  trade  from  this  country  in  such  goods  as  still  exists.  The  Sheffield
Chamber  of  Commerce  assert  that  they  are  in  a  position  to  produce  evidence
showing  that  for  several  years  contracts  for  files  have  been  taken  by
Remscheid  firms  in  neutral  markets  at  20  per  cent,  cheaper  rates  than  the
cost  of  manufacturing  similar  articles  in  this  country,  a  fact  which  surely
seems  to  indicate  that  the  additional  protection  proposed  to  be  accorded
cannot  be  required  even  by  the  most  Protectionist  of  German  manufacturers.
Further,  with  regard  to  steel  pens  (No.  840),  our  information  is  to  the
effect  that  the  present  German  import  duty  is  already  so  high  as  to  preclude
competition  in  many  kinds.  In  addition,  our  pen  makers  allege  that  a
Ministerial  decree  is  in  operation  in  Germany  which  prohibits  all  German
officials  from  using  imported  steel  pens,  and  it  would  seem  therefore  that
German  makers  already  enjoy  all  the  advantages  they  can  reasonably  expect
from  a  protective  Government.  The  raising  of  the  duty  still  higher  would
practically  shut  out  Knglish  pens  from  the  German  market  entirely,  and  at
the  same  time  it  has  to  be  pointed  out  that  German  pens  are  free  of  duty
here  and  that  no  goods  of  German  origin  are  prohibited  in  British  public
offices.
Generally  speaking,  as  regards  the  category  of  iron  and  steel  and  iron
and  steel  wares,  we  are  assured  that  while  the  existing  tariff  is  protective
the  proposed  new  one  would  be  virtually  prohibitive,  and  it  cannot  be
expected  that  virtual  prohibition  would  be  looked  upon  with  anything  but
disfavour  and  resentment  by  our  manufacturers,  seeing  that  competing
German  goods  are  imported  into  this  country  duty  free.
Turning  to  machinery,  a  glance  at  the  particulars  under  this  head  in  the
appended  statement  will  be  sufficient  to  convince  anyone  of  the  drastic  nature
of  the  changes,  both  as  regards  classification  and  duties,  proposed  to  be  made.
As  an  instance  of  increase  of  duty,  we  may  point  out  that  a  small  machine,
weighing  about  100  kilogs.,  of  the  class  falling  under  No.  904,  and  consisting
largely  of  cast  iron,  would  under  the  existing  tariff  have  to  pay  a  duty  of
3  marks,  whereas  under  the  proposed  tariff  the  same  machine  would  have  to
bear  a  duty  of  20  marks—more  than  six  times  the  present  rate.  As  to
spinning  machinery,  the  exports  from  the  United  Kingdom  to  Germany  in
ordinary  times  are  of  considerable  amount,  and  a  fair  business  is  also  done  in
weaving  machinery,  although  the  competition  of  German  machine-making
establishments  in  this  branch  has  of  late  years  been  keen.  German  spinners
and  manufacturers  are  said  on  the  whole  to  prefer  British  machinery  to  all
others  ;  consequently,  the  proposed  additions  to  the  duties  cannot  be  a  matter
of  indifference  to  them.
With  regard  to  machine  tools,  the  exports  of  these  to  Germany  are  also
of  considerable  importance.  They  have  hitherto  been  admitted,  if  the
preponderating  material  has  been  of  cast  iron,  at  the  rate  of  3  marks
per  100  kilogs.,  and  this  duty  is  proposed  to  be  increased  to  duties
varying  from  4  marks  to  20  marks  per  lOO  kilogs  ,  according  to  weight,  the
heaviest  kinds  paying  the  lowest  rates.  Considerations  of  freight  will  prevent
a  large  trade  being  done  in  the  heavier  descriptions,  but  the  increased  rates
on  the  lighter  kinds,  the  trade  in  which  is  at  present  a  growing  one  (showing
that  German  makers  cannot  of  themselves  supply  home  requirements),  will
undoubtedly  affect  exports  of  such  articles.
E  31200.  r.