So that the zoll-verein derives, from a given amount in value of goods imported from the United States, more than four times as much revenue as the American Government derives from the same amount in value of goods the growth, produce, and manufacture, of the countries of Germany associated in the zoll-verein. The wines of Germany pay in the United States, when imported in casks, a duty of 7 cents per gallon; that is to say, something less than 34 silver groschens; and when imported in bottles, a duty of 15 cents per gallon; that is to say, something less than 7 silver groschens per gallon, containing about five bottles. The consumption of the light wines of Germany has much increased of late years in the United States. They are now preferred to the foreign wines of Spain and Portugal. In the preceding estimate we have supposed a mass of commodities exported from Germany precisely equal in value to another mass imported from America. But the total value of goods exported from the German states, associated in the zoll-verein, to the United States of America, is much more than that of the goods exported from the United States to the German association. The balance of commercial exchanges is consequently against the United States, a balance which is regulated by the profits of our commerce with the other countries of Europe. To rectify this inequality in the commercial relations between the two countries, it is proposed to reduce the duties of importation levied in the zoll-verein on rice, to one thaler per centner. As to tobacco, two different projects have been conceived, by which the import duties may be modified so as to satisfy the claims of the American Government, and of which the German association of commerce and customs may select that which it prefers. First project. To reduce the import duties now levied on tobaccostems to two thalers per centner. To reduce the duties on all other kinds of tobacco imported from North America, to three thalers per centner. Second project.-1. In order to continue the protection already granted to the cultivation of the indigenous plant, a considerable duty might be levied, of three thalers, for example, upon all kinds of tobacco costing not more than four and a half thalers at the first port of entry in Europe, which is deemed the average price of indigenous tobacco in Germany. ner. 2. To lay upon leaf-tobacco imported in hogsheads from North America, of which the value at the first port of entry is more than four and a half thalers, a duty of two thalers and twenty-three silver groschens per centThis duty will be equal to the average of that levied in Bavaria and Wurtemberg, according to the tariff of 1828, namely, of five florins per centner (Sp. Gerricht), equal to four florins twenty-seven and a half kreutzers per Prussian centner; and in Baden, according to the tariff of 1827, that is to say, twenty-five kreutzers; and in Prussia, according to the tariff of 1831, which is the present tariff of the zoll-verein, of five and a half thalers per centner. The average of these several rates is two thalers and twenty-three silver groschens per centner. 3. To lay a duty upon tobacco-stems imported from North America, of two thalers per centner. Universal experience has demonstrated that the reduction of excessive duties, imposed upon articles of necessity, or upon articles of luxury, which habit has rendered necessary to the comfort of civilized man, is always followed by an increase of consumption. This principle is still more applicable where the reduction of the former duties is considerable. The example of the United States confirms this experience. In the year 1830, that country found itself fortunately in a position which rendered it necessary to reduce the duties on several of the most important articles of consumption, such as coffee and tea, in order to reduce the total revenue to the diminished wants of Government. The consumption of these articles consequently increased to such a degree that it was at last found necessary to abolish the duties. Not to speak of the examples furnished by British legislation, it is well known that there existed in Bavaria, before the commencement of the present century, and before the true science of political economy was created, a highly restricted tariff. This system was abandoned on the accession of the Elector Maximilian Joseph, father of the present King, and was replaced by a very moderate tariff. This change was followed by a very perceptible increase in the revenues of the customs. This reform continued to produce increasing fruits from 1800 to 1810, when it was overturned by the fatal continental system. From that period the Bavarian tariff became more and more restrictive, until 1819, when a more moderate tariff was again established, which was again followed by a very considerable increase of the revenues. In the kingdom of Hanover, with a very moderate tariff of duties on importations, the Government obtains a revenue of 27 grite-groschens from each individual of the population, while in Prussia, only 22 grite-groschens are collected from each individual, with a tariff much higher, namely, the tariff of the zoll-verein. But it cannot surely be necessary to insist upon a truth so generally recognised in a discussion with persons well informed, and versed in the principles of administration, such as the commissioners of the zoll verein. We will therefore only remind them of the ever-increasing importance of the United States market, for the productions of the manufactures and agriculture of Germany, and of the necessity of placing our mutual commercial relations upon a footing of the broadest and most liberal reciprocity. By these means, the relations of mutual interest which already exist, may be indefinitely extended to the great advantage of two nations, springing from a common stock, and whose duty it is to tighten the bonds of friendship between them, by a liberal exchange of those gifts which Providence has dispensed to each country, or which the industry of man has created in each. The productions of the soil, and industry of Germany, are not repelled by the fiscal and economical system of the United States, as they are by the discouraging or prohibited tariffs of the great European powers, and especially of Great Britain, France, Austria, and Russia. The timber and the bread-stuffs of Germany, are almost prohibited in England, its wines and its cattle in France, and its manufactures of wool, of cotton, of silk, of cutlery, of leather, of linen, and other fabrics of flax, by all Europe. It is only in the United States that all these commodities are admitted, either free of duty, or on payment of duties, of which the highest are to be reduced to 20 per cent. at no distant period. The commissioners of the zollverein are entreated to weigh well these considerations, and the imminent danger of losing a market of fifteen millions of consumers, of which the number is doubled every twenty-five years, and whose wants are continually augmenting with the progress of the prosperity and wealth of the country. H. WHEATON, J. DODGE. DRESDEN, July 4, 1838. P. S. We have to notice an error which crept into the note presented to the Prussian Government, by Mr. Wheaton, under date of the 22d April last. It was there supposed that the tare allowed on tobacco imported in hogsheads, was only 14 pounds per hogshead, while in fact, it is 14 pounds per centner, against which we have nothing to object. [No. 89.] Mr. Wheaton to Mr. Forsyth. [EXTRACT.] BERLIN, December 12, 1838. SIR: 1 had, some days since, at a dinner given by the Ottoman Minister, to celebrate the birth-day of his sovereign, a short conversation with Count Alversleben, minister of finances, in which he stated that his department had been engaged in examining the representations made by us at Dresden, on the subject of the duties levied on rice and tobacco, in the states of the German commercial union, and that the result of the examination had led to the conclusion that the duties on rice might be safely diminished without affecting the revenue, but that he feared that a reduction in the duties on tobacco would not be attended with a corresponding increase in the consumption of that article. He also added, that the production of the native plant must also be protected, or the planters would require the abolition of the excise duty, which is now levied on the tobacco raised in Prussia and other parts of Germany. [No. 82.] Mr. Wheaton to Mr. Forsyth. [EXTRACTS.] BERLIN, August 10, 1838. SIR Deeming my presence no longer necessary at Dresden, I returned to my post on the 23d of July, leaving Mr. Dodge with instructions to observe and report the progress of the congress. Since my return hither, I have had a conversation with Baron de Werther, respecting the subject of our negotiations. He seemed disposed to encourage the expectation that the present duties on rice might be diminished; but as to tobacco, he anticipated greater difficulties. His main objection seems to be, that the classification of the tobaccoes, according to their qualities and origin, as proposed by us, would be an innovation upon their financial system, which imposes the duty upon every species of commodity, by the weight, without regard to the quality, origin, or value. This simple and uniform rule had been adopted for the sake of convenience and to guard against frauds; and he seemed to think there would be no practical means of discriminating between the different sorts of tobacco, so as to prevent those frauds and evasions which might operate injuriously to the revenue, to an unforeseen extent, He, however, assured me that the subject should be fully examined, with the sincerest desire to gratify our wishes, if it could be done without too much risk to their financial system. * The result of the conferences at Dresden, will not be officially made known to us until the protocol of the congress has been reported to the repective governments composing the commercial association. But I think I may venture to predict that the report will be favorable to a reduction of the duties on rice, while the question of the tobacco duties will be referred to the next session of the congress, which will be held in June, 1839, with remarks by the present deputies upon the difficulties which might attend any change in the present manner of levying the duties. [No. 102.] Mr. Wheaton to Mr. Forsyth. BERLIN, March 20, 1839. SIR: The chamber of commerce of Elberfeld has recently addressed a memorial, or report, to Count Alversleben, minister of finances, a translation of a part of which concerning our commercial relations with Germany is subjoined. I am informed that similar memorials have been sent to the minister of finances, by the chambers of commerce of Cologne and Aix la Chapelle. I have the honor to be, with the highest consideration, sir, your obedient servant, Hon. JOHN FORSYTH, Secretary of State. [TRANSLATION.] HENRY WHEATON. The direct export to the United States of North America was so much greater in the last year, as necessity prompted it for the purpose of covering the deficiency on the indirect export. The number of agents and commissioners who attend to sales in that country on the account of houses here, rose considerably; and by that means this great change has taken place, viz: that the direct intercourse has become the principal thing, and the indirect merely accessary. Upon the whole this is no favorable change; for the indirect intercourse presents the advantage of greater security. The manufacturer furnishes the wares that are ordered, receives payment for them, and is freed from every other risk; whereas, in the direct export he incurs the risk of being uncertain, if wares will be sold at good prices, if even they will find a market, and will often have to wait long for the return of his funds. But this change was unavoidable under the crisis that the American commerce had sustained. It was, therefore, quickly adopted; and the result has hitherto shown that it was perfectly adapted to the circumstances; as by this means the deficiency on the indirect export would be entirely reimbursed in such a way that, on the whole, the sale of our fabrics in the United States, reached their usual amount; and that hundreds of workmen got by that means lucrative occupation. As this commercial connexion is not merely temporary, but rather promises a long duration, and greater development, in case there takes place no unfavorable change in the political and commercial relations between both countries; so it is of the greatest importance for our industry that every thing reasonable should be done on our side to promote and continue the friendly relations subsisting between the two states. Prussia's industry partakes of this in a high degree; for the export of all inland fabrics to North America is of the greatest importance, and might rise with every year if the American duties suffer no disadvantageous change. For these duties are, in general, highly favorable to us; valuable products, for example, silk goods, and those articles, the greater part of which consists in silk, are quite free of duty; and all the duties on the produce of German industry are mostly very moderate. It is, therefore, highly important to sustain these relations, and make them more favorable for such fabrics as require an alleviation. This can certainly only take place by means of a commercial treaty, and by reasonable reciprocity; and this step seems to be taken. already, if one may give credit to the report that negotiations are going on with the United States for the drawing up such a treaty. That the superior authorities acknowledge the entire importance of our relations with North America we have the most agreeable proofs by the letter of 31st January last, received from your excellency to the board of trade, as it gives evidence with what attention all circumstances are treated that have influence on these relations. The most obedient undersigned seize this opportunity of expressing to your excellency their hearty thanks. It may not, however, be becoming for us, in all humility and unasked, to discuss the principles on which such a treaty should be based; for not only Prussian interests, but also those of the whole commercial union, are to be considered, which includes various interests; as is, for instance, the case with the growing of tobacco; in which the southern part of Germany is much more interested than the northern. These relations can only be seen and rightly judged of from a higher point of view. We, therefore, in respect to this, put all confidence in the wisdom of the superior authorities; and take the liberty merely to express the wish that your excellency, in all negotiations that may take place with the United States of America, will take the interest of our industry under your protection; and, to that end, provide every alleviation on the import of American products in Prussia and the commercial union; especially on the heavily taxed tobacco in leaves and stems; as also for rice, as may be consistent with the interest of the in terior. |