Tariffs, cartels, technology, and growth in the german steel industry, 1879 to 1914

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Economic History Association

The Protectionist Interests of the German Iron and Steel Industry, 1873-1879 Author(s): Ivo N. Lambi Reviewed work(s): Source: The Journal of Economic History, Vol. 22, No. 1 (Mar., 1962), pp. 59-70 Published by: Cambridge University Press on behalf of the Economic History Association Stable URL: http://www.jstor.org/stable/2114256 . Accessed: 22/11/2011 19:33Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity andfacilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.

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The Protectionist Interests the German of Iron and Steel Industry, 1873-1879
HE year the of free-trademovei873 marked zenith theGerman ment, which beengathering had impact sincei8i8 whenPrussia a tariff free-trading Promulgatedthe established lines. first along at peak the ofprosperity, law of i873 abolished immediately duties pig the on raw and to iron, steel, ships, as a concession theprotectionists, but, only reduced rates other products provided their the on iron and for repeal on January i877'.Despitethedissatisfactionmany i, of free-traders, the of thelatter provision opened doorfortherepeal other protective of rates. Germany stood thethreshold complete trade. thus at free hit and The depression which Germany theGerman ironindustry soonafter reduction theironduties of stimulated and steel iron the for of of manufacturers intense to an campaign a reversal theverdict their i873.Theyjustified activity the rapidchangein economic by that existence threatened. was conditions, contending their very They iron advanced industries other of complained themore that states were while exports theGerman in dumping theGerman market, the of iron to industry impaired rising were by foreign tariffs; referred other they French such indifficulties, as highfreight rates, export premiums,2 causedbyplantconversions ironproduction from ternal competition and of of to steelmanufacture, by inclusion the industry AlsaceIt the Lorraine within German market. wasthese factors, claimed, they and reduced of which and profits led to large-scale layoffs workers the Such arguments closing down of numerous plants.3 werereiterated vehemence speeches, in and withincreasing pamphlets newspapers
importediron fromabroad to be reimbursed dutytheyhad paid if this iron was repig the exported further in processed form.In effect, titresservedas exportpremiums the since imto sold theirclaims for compensation the exporters further of porters freely processedarticles when theywere not interested exportthemselves. in 3 See the petitions the Union of the German Iron and Steel Manufacturers of (Vereindeutscher Eisen und Stahlindustrieller) October I875, to the Reichstag;the petitionof of to and the petition the Prussianminister war, October of October24, i875 to the Bundesras; 28, I875. These documentsare available in the Bundesarchiv, Koblenz, Reichsakten I3, I, Fasc. 276 (henceforth Eisen und Stahlindustrieller, abbreviated Akten des Vereinsdeutscher B.A. R I3, I, No. of Fascicle). 59
1Stenographische Berichte deutschen des Reichstags, i873, p. i289 ff. 2 The French tires d'acquit a' caution were certificates entitling manufacturers who had



Ivo N. Lambi

the untilthe establishment the from outbreak the depression of of protective of i879. The ironand steelindustry's tariff activities were first directed toretention those only of duties which were be repealed to on...