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POPULAR SCIENCE MONTHLY. 



on tliose duties, pointing out that the successive increases in the 

 German tariffs in 1879, 1885, and 1887 did not hinder the develop- 

 ment of Russian exports to Germany, whereas the Russian tariff 

 legislation had produced a distinctly injurious effect on the trade of 

 Germany. For nearly two years the negotiations for an agreement 

 were continued, to be abruptly broken by the announcement on 

 the part of Russia that the maximum tariff would be enforced 

 against Germany after July, 1893. As this meant an increase of 

 fifty per cent in all duties on German goods, Germany retaliated by 

 imposing a corresponding penalty duty on all imports from Russia. 

 In 1891 the dutiable imports into Germany from Russia were 

 400,000,000 marks, of which 91,000,000 marks were in wheat. 

 In 1879 the duty collected on wheat by Germany was fixed at one 

 mark per one hundred kilos (twenty-four cents). This rate was in 

 1885 increased to three marks (71.4 cents), and in December, 1887, 

 to five marks ($1.19). Under treaty arrangements the duty on 

 wheat could be reduced to 3.50 marks (83.3 cents), but Russia did 

 not enjoy this concession. In spite of this discrimination the trade in 

 wheat progressed, and would have continued to increase, had not the 

 disaster of 1891 occurred in Russia, and the tariff war followed. 

 The effect on the total movement of wheat from Russia and on the 

 exports to Germany is shown by the following comparison: 



Fortunately, an agreement between the two countries was reached 

 in March, 1894, but all of a year was required to correct the injury 

 inflicted on this branch of Russian export trade. 



"Witliin eight years Russia's wheat interests have thus been sub- 

 jected to severe tests, and have endured in a remarkable manner. 

 It now becomes necessary to give some attention to the internal 

 economy that makes this elasticity possible. The cost of production 

 is a mere detail when set against the social revolution implied in 

 the change from serfs to peasant farmers. 



Any estimate of actual cost of production of wheat in Russia 

 must be based upon so many different conditions as to afford little 

 satisfaction. Xo two governments of that immense and variegated 

 empire would return the same averages; and to complete a general 



