During the week, Russia and Germany have become engaged in
the fiercest tariff war recorded in history. Russia began by placing on German goods an augmentation of 30 per cent. on the maximum duties levied under her tariff. The German Federal Council replied by the imposition of an extra 50 per cent. ; and the Russian Minister of Finance on Wednesday "countered" this by increasing the Russian duties on German goods by yet another 50 per cent. This is a game in which the Russians have, from a Protectionist point of view, a considerable advan- tage. The Czar has given his Finance Minister carte blanche in the matter of raising the tariff dues ; but the German Con- stitution allows no further increase (without the consent of Parliament) beyond the 50 per cent. already imposed. The evil effects that will be produced on both Empires are, of course, very great ; and it is hoped that in October, when negotiations for a treaty are to be resumed, the diplomatists, and the merchants who egg them on, will come to their senses. Let us trust that the incident will shake Lord Salisbury's belief in the advantages to be gained by having something in the shape of a tariff to bargain with. Such bargaining is only too likely to end in 50 per cent. augmentations.
