Tariff War?

For many weeks negotiations have been in progress at Paris between the French and German Governments for a new commercial treaty. Since economic conditions in Germany are daily improving, thanks to the Experts' Plan, and since Germany must import and export if she is to pay the gigantic reparations bill, it would seem to follow that a mutually agreeable trade treaty would be made by the two countries.

But the French and the Germans have not been able to agree and, in the opinion of the experts, they are not likely to agree for some time. Their disagreement led to prophesies of a tariff war between the two countries. Le Matin, Paris journal, summed up the situation by stating that "once more the peace of Europe is becoming uncertain. It may be a bloodless war, but economic war is none the less terrible."

It came as a relief to the people on both sides of the Rhine that both Governments agreed, in the event of a final rupture of the treaty negotiations, that there would be no dread tariff war. France made known that her general tariff rates (for all countries not benefiting by a most favored nation treaty) would apply to German goods. Germany declared that her single tariff for all countries would be applied to French goods.

The trade parley continued.