Germany and Spain have declared a war of tariffs. The
Commercial Treaty has expired, and Spain, pending a new one, has subjected German goods to the duties imposed on imports from all non-favoured nations. The German Federal Council, in revenge, has increased all duties on Spanish goods 50 per cent., and under a statute of July, 1879, this decree is law. The countries are therefore at war as to customs, with this delicious result :—Germany imports nothing from Spain which Spain cannot export through Genoa as Italian goods, except Havana and Manilla cigars. They cannot be disguised. Ger- many, therefore, stops nothing Spanish except cigars, and as they are the luxuries of the rich only, the extra duty will be paid, and Germany taxes only her own well-off classes. On the other band, Spain imports nothing recognisable from Ger- many except some hocks, the extra duties on which will be paid with readiness. The total effect of the war, therefore, will be that commerce will be slightly embarrassed, that the St. Gothard Railway will gain a little, and that German and Spanish citizens will pay a little more to their own Treasuries than they did before. Each Power bites off a bit of its own nose, out of pure temper.