year 1877, and in the new treaty, while raw
material was still imported free of duty, a low duty was placed on textile
goods as well as on corn, and the excise on sugar and brandy was raised.
All duties, moreover, were to be paid in gold--this at once involving a
considerable increase. The tariff treaties with Great Britain and France
were not renewed, and all attempts to come to some agreement with Germany
broke down, owing to the change of policy which Bismarck was adopting at
this period. The result was that the system of commercial treaties ceased,
and Austria-Hungary was free to introduce a fresh tariff depending simply
on legislation, an "autonomous tariff" as it is called. With Great Britain,
France and Germany, there was now only a "most favoured nation" agreement;
fresh commercial treaties were made with Italy (1879), Switzerland and
Servia (1881). During 1881-1882 Hungary, desiring means of retaliation
against the duties on corn and the impediments to the importation of cattle
recently introduced into Germany, withdrew her opposition to protective
duties; the tariff was completely revised, protective duties were
introduced on all articles of home production, and high finance duties on
other articles such as coffee and petroleum. At the same time special
privileges were granted to articles imported by sea, so as to foster the
trade of Trieste and Fiume; as in Germany a subvention was granted to the
great shipping companies, the Austrian Lloyd and Adria; the area of the
Customs Union was enlarged so as to include Trieste, Istria and Dalmatia,
as well as Bosnia and Herzegovina. In 1887 a further increase of duties was
laid on corn (this was at the desire of Hungary as against Rumania, for a
vigorous customs war was being carried on at this time) and on woollen and
textile goods. Austria, therefore, during these years completely gave up
the principle of free trade, and adopted a nationalist policy similar to
that which prevailed in Germany. A peculiar feature of these treaties was
that the government was empowered to impose an additional duty
(_Retorsionszoll_) on goods imported from countries in which
Austria-Hungary received unfavourable treatment. In 1881 this was fixed at
10% (5% for some articles), but in 1887 it was raised to 30 and 15%
respectively. In 1892 Austria-Hungary joined with Germany, Italy, Belgium,
and Switzerland in commercial treaties to last for twelve years, the object
being to secure to the st