Papers Relating to the Foreign Relations of the United States, Transmitted to Congress, With the Annual Message of the President, December 2, 1878

No. 114.
Mr. Noyes to Mr. Evarts.

Legation of the United States,
Paris, March 28, 1878. (Received April 11.)

No. 80.]

Sir: You are aware that for about two years the French Government has been considering the subject of a thorough revision and recast of its tariffs.

After calling the attention of all the chambers of commerce in France to the matter, and soliciting an expression of opinion as to the reforms and new methods advisable, the administration submitted the whole question to a committee, styled “the superior council of commerce and industry.” My predecessor, Mr. Washburne, informed the Department of these facts in his dispatch No. 1319, of May 16, 1876.

After many months of labor the proceedings and report of this committee were published, and upon the conclusions it had reached the government framed a new tariff bill, which was introduced in the chambers in March, 1877. The change of ministry and of policy which took place on the 16th of May last postponed the whole matter for the time being. It is now revived by the present minister of commere, Mr. Teisserenc de Bort, and pressed upon the chambers, which will very likely come to a decision at an early day.

But the question presents itself this year in a somewhat different form, with tendencies not as liberal, and therefore not as favorable to American interests as were exhibited by the bill of March, 1877.

For a clear understanding of this matter a few words of explanation are necessary:

Before 1860 the imports levied on foreign goods admitted into France were determined by a tariff of a decidedly protective character. In 1860 the Emperor, acting under the influence of Mr. Cobden, made a special treaty of commerce with England, which inaugurated in France a new and more liberal commercial policy. Its results having been entirely satisfactory, France tendered to other countries the advantages given to England, and made a series of treaties, based upon the same principle, and which are now about to expire or have already terminated. The consequence of this policy was the establishment of a system of double tariffs, one general and rather high, applicable to all countries having no commercial treaty with France the other special or conventional, based on treaty stipulations. This double system is now in force, with this additional feature, that in 1873 a supplemental tax of 24 per cent. was added to the general tariff. The question submitted to the chamber of commerce was whether this system should be continued or modified in some respects.

The conclusions reached by the majority of these bodies can be summed up as follows: They recommend—

1st. Extension of the treaty system.

2d. Reduction of the general tariff.

3d. Substitution of specific for ad valorem duties.

The superior council of agriculture, commerce, and industry, to which the matter was afterward referred, went a little further: it decided to recommend the suppression of the supplemental tax of 24 per cent. added to the general tariff, with the exception, however, as to cotton fabrics, which were to be still submitted to a certain supplemental tax.

Acting upon these suggestions, the French Government framed the tariff bill presented last year, which stipulated—

1st. That the rates of the new general tariff should not be above those of the previous conventional tariffs.

2d. That the duties on cotton fabrics should be increased only 10 per cent, instead of 24 per cent.

3d. That an additional tax of 20 per cent. should be levied on all products from countries where duties on French goods are above the average of 15 per cent.

But the new bill contains nothing of the kind, though it professes to be very liberal.

In the first place, the duties on a considerable class of articles are raised. For instance, lobsters, which were admitted free, pay now as other fish; pickled oysters and cheese pay nearly twice as much as before; rice and petroleum pay more.

Secondly. The duties on cotton thread and cotton fabrics and a number of other articles, instead of bearing the supplemental tax of 10 per cent, as before proposed, are to pay 24 per cent.

Thirdly. An additional tax of 50 per cent., instead of 20 per cent., is to be levied on all products from countries where French goods are subjected to imposts of more than 20 per cent.

In short, therefore, the new tariff bill imposes a tax of 24 per cent. on a very large number of foreign articles, and threatens the countries which will not submit to these heavy duties, and which attempt to retaliate by imposing equivalent duties on French products, with increase of this 24 per cent. duty to 50 per cent.

The motives which have induced the French Government to so depart from the policy of last year’s project must be stated. In the “Exposé des Motifs,” or argument which heads the bill, the government contends that its object is not to seek protection for French products, but compensation, and to make this more clear, it says:

These duties will certainly he gradually lowered as new treaties of commerce shall he made. Thus, in the recent conventions with Italy and Spain, the government has abandoned part of the imports levied on game, poultry, eggs, rice, fruits in cans, &c

Speaking of the additional duty of 24 per cent, which was rejected in the former bill, it says:

We had done so because we supposed that the economical doctrines which had prevailed since 1860 (doctrines hostile to protection) in most of the large states would continue to be favorably received. We hoped that future commercial treaties would mark a new progress in the direction of free trade, and would so facilitate the extension of our trade and increase the consumption of our products in foreign markets. * * * But the desire to derive from the customs larger revenues seems to have given a new turn to ideas in this matter. * * *

In the presence of this state of things arising precisely when our treaties of commerce are all about to expire, France cannot remain unprotected by granting spontaneously the benefit of the conventional tariff to nations which will not reciprocate and which make their markets comparatively inaccessible to the products of French agriculture and manufacture, and which thus render by their exactions commercial treaties with us impossible. * * * By the general treaty clause applicable to the most favored nation, which is incorporated in our modern convention of commerce, we have given to all nations willing to enter into treaty stipulations with us the certainty that they can secure at least the rates of the conventional tariff. We show thereby that, as we wish to be well armed tor future negotiations, we do not intend to walk backward in the direction of protection.^*

It can be seen by these quotations that the plain aim of the French Government is to compel, or, to say the least, to induce, other countries to enter into treaty stipulations with France favorable to her, and on this point it seems it can depend upon the support of the Chamber of Deputies; for out of 33 members composing the committee to which the tariff has been referred, 20 at least are compensators, as they style themselves, that is to say, aiming to get compensation for liberal concessions.

I inclose herewith an official printed copy of the new tariff bill, with all the documents attached to it.

I have, &c.,

EDWARD F. NOYES.

1. As to the 50-per cent. clause, the French “Exposé” says: “It is specially directed against the products of countries which levy on our products exorbitant imposts.”