most-favored-nation treatment by most of France's European competitors; that Canadian competition under the lower duties might prove dangerous to French industries; and, more important, that the importation into France of Canadian cattle at the lower rate of duty would offer serious competition to cattle-growing in France. The last-mentioned objection was removed, however, by the conclusion in 1909 of a supplementary convention which modified the convention of 1907 by providing that Canadian cattle might be imported into France under the minimum rates of the tariff only when not fattened and in condition for slaughter. In Canada there was little or no opposition to the treaty, as the French products to be admitted at reduced rates were, with few exceptions, not produced to any extent in Canada. The treaty was ratified, and after it had undergone revision the rates specified in the treaty came into effect in May, 1910. These rates were extended at once to all countries having most-favored-nation (see) treaties with Great Britain to which Canada had become a party either through the action of the Imperial Government or by her own consent.

By the Franco-Canadian trade agreement of 1921 Canada granted to France the benefits of her intermediate tariff, but no longer accorded special rates below that scale.

A new trade treaty between Canada and France was negotiated during the latter part of 1922 and became effective September 5, 1923. Under the treaty Canada gives to France her intermediate tariff generally and special rates lower than her intermediate rates on three groups of articles. In return Canada receives special rates on three groups of items and the French tariff of 1910 on other articles so long as that tariff is applicable to imports from the United States.

Intermediate rates granted to Belgium and the Netherlands, 1910.-In the case of imports of French products into Canada, the privilege of the treaty rates was conditional upon importation without transshipment from a French port, or from a port of a country enjoying either the preferential or the intermediate tariff, into a sea or river port of Canada. Belgium and the Netherlands did not have treaties entitling them to most-favored-nation treatment in Canada. Their important transit trade made this provision in the French treaty, penalizing indirect shipment, of considerable importance to them, and their consular representatives at once opened negotiations with the Canadian Government to secure some modification of the Canadian discrimination against their ports and their products. As both Belgium and the Netherlands admitted Canadian products at their lowest rates of duty and their tariffs were in general low ones, the articles specified in the French treaty were admitted at the intermediate rates when imported from these countries. The grant of special rates would have required new legislation, but this concession made it possible to transship French products through the ports of Belgium and the Netherlands without making them subject to higher rates of duty than those specified in the French treaty.

Concessions to Italy, 1910.-Italian products were not entitled to most-favored-nation treatment in Canada, and Canadian products were subject to the maximum tariff rates in Italy. By a provisional agreement between Canada and Italy signed on June 6, 1910, a limited number of Italian products were granted the intermediate rates of the Canadian tariff in return for the extension of

the Italian conventional rates to a number of Canadian products. Most important among the Italian products specified in the agreement were wines, velvet and silk fabrics, ribbons, fine kid gloves, miscellaneous manufactures of silk, and macaroni and vermicelli.

A new trade agreement between Canada and Italy was ratified on January 8, 1924. By this treaty each country grants to the goods of the other the benefit of the lowest tariff rates granted to the products of any other foreign country; Italy is thus admitted to the group of countries enjoying most-favored-nation treatment.

Reduction of rates in general tariff granted to the United States, 1910.-In 1909 the United States had adopted the Payne-Aldrich tariff law, with its provisions for a maximum schedule of duties to be applied to all countries found to be discriminating unduly against American commerce. These rates amounted to a penalty duty of 25 per cent ad valorem, to be added to the regular duties on all goods in the dutiable list. In order to avert the necessity of applying these rates to Canadian products, President Taft, early in 1910, sent commercial representatives to Canada to urge the grant to the United States of most-favored-nation treatment. They requested that American products should be given as favorable treatment as was accorded to the products of any foreign country, and in particular that the concessions granted to France in the treaty soon to come into effect should be extended to the United States. After negotiations of some duration it was agreed that the United States should refrain from imposing the maximum duties on Canadian products in return for the extension by Canada of the intermediate rates on 13 specified articles when imported from the United States. It was also understood between the parties to the negotiations that this arrangement was to be preliminary to the negotiation of a commercial treaty broader in scope and involving reciprocal concessions of greater importance. The Canadian intermediate rates on the articles specified in the arrangement were put into application on American products by Order in Council on March 31, 1910, but they were extended at the same time to all countries entitled to most-favored-nation treatment in Canada. (See RECIPROCITY.)1

Australia. The Australian tariff act of 1921 provided for an intermediate tariff applicable to goods from countries which agree to trade reciprocally with Australia, but the minister for trade and customs is precluded from entering into negotiations for such reciprocity "if he is satisfied that the economic conditions and this applies both to the Dominions of the British Crown and to other countries-in such Dominion or other country are substantially lower than those prevailing in Australia."

In general the intermediate tariff rates are midway between the British preferential and the general tariff rates, although in many cases they are identical with the former or the latter. AŬ trade agreements are subject to ratification by the Commonwealth Parliament.2

New Zealand. The tariff in effect in New Zealand since 1907 was revised in 1921, and an outstanding feature was the introduction of an intermediate tariff. Three rates of duty were provided,

1 U. S. Tariff Commission, Colonial Tariff Policies, Washington, 1922, pp. 676-678. Ibid., pp. 800, 801.

viz, "general," "intermediate," and "British preferential." Under the 1921 tariff, articles affected are usually dutiable at: General, 35 per cent; British preferential, 20 per cent; and the intermediate, about 30 per cent. The intermediate tariff is intended to apply to countries entering into reciprocal relations with New Zealand, and will allow of the Dominion's goods being accorded preferential treatment in other countries disposed to reciprocate. No country at present receives such preferential treatment, and the provisions of the customs act in this respect are virtually dormant.

INTERNATIONAL CONVENTION FOR THE SIMPLIFICATION OF CUSTOMS was organized at Geneva by the League of Nations and met from October 15 to November 3, 1923. Thirtyfive States, some not belonging to the League of Nations, were represented. A group of observers from the United States was present, and representatives of the International Chamber of Commerce also took part. Questions of tariff policy were entirely disregarded, attention being wholly confined to customs procedure.

As a result of the labors of the body, a final convention was signed November 3, 1923, by the representatives of 21 States, including Germany, Belgium, Great Britain, Spain, France, Italy, and Switzerland.

The general purpose of the provisions is the simplification and efficiency of customs procedure throughout the world.

INTERNATIONAL DIVISION OF LABOR. This term means the distribution of the various branches of economic production among the nations best adapted to them. The principal cause of commerce, international as well as domestic, is found in the advantage secured from a division of labor which allows specialization, an effective adaptation of the sort of labor available to such natural resources as each possesses, from which results a larger production of wealth. The gain from international division of labor is derived from employing to their fullest extent the best economic aptitudes of different countries. In conformity with this principle each nation would tend under free trade to confine itself to the production of commodities wherein it enjoys a comparative advantage, relying upon international commerce for its supply of other articles. (See COMPARATIVE COSTS; CURRENTS OF WORLD COMMERCE.)

At any given time such comparative advantages in production may depend upon a number of factors, some capable and some incapable of important modifications by man. The factors which determine the international division of labor may be grouped broadly as follows: (1) Natural resources, (2) relation of population to resources, (3) social and industrial organization and equipment.

Natural resources significant for the international division of labor may be classified as mineral, vegetable, climatic (overlapping with the foregoing category), and those pertaining to location (aside from climatic differences). The superficial structure of a country and the presence or absence of bodies of water are of great influence.

Many minerals are found in a restricted number of places. Their presence may give natural advantages not found elsewhere. Modern means of transportation, however, render the possession of natural mineral resources less important than they otherwise would be. The less bulky and lighter

materials are often easily accessible to countries by means of importation. Some fundamental commodities, such as coal and iron, are costly to transport, and therefore are a factor of great importance in the international division of labor.

The vegetable products of the world are widely scattered, and many can not be obtained elsewhere than in their original habitat. Certain tropical plants will always be confined to the equatorial regions. Various staples are adapted to conditions found only in a few countries. Such products will ever be a powerful factor in international labor division. Some of these vegetable materials, however, like certain minerals, can be easily transported to industrial centers, and therefore their place of origin is not of great significance, except as trade in them is obstructed by political controls or the uncertainty of transportation.

Climate, aside from its influence upon vegetation, is important in that it has a marked effect upon the industrial ability of the working population. The temperate climates are more favorable to energetic labor than the arctic or tropical zones.

The location of certain countries is especially advantageous for particular types of productive effort. England's easy access to the sea and her position at the door of Europe give her a natural leadership in trade. Japan for similar reasons is admirably equipped for commerce.

The comparative advantages in international production are influenced by the relation of population to resources. (See also EMIGRATION AND IMMIGRATION.) Where the population is dense industries that are primarily dependent upon labor are likely to be successful. Where, in comparison to resources, the population is sparse, those industries which require small man power in proportion to other productive factors do best. (See POPULA TION.)

Unrestricted international division of labor requires a free movement of population between countries (see also IMMOBILITY OF CAPITAL AND LABOR), for the principle of the division of labor assumes the free application of labor to production in such proportions as shall be most efficient. It would be impossible, for example, unreservedly to apply the principle of the division of labor to a pin factory if three-fourths of the workers were artificially confined to the production of pinheads. Therefore, if 60,000,000 persons in Japan, for example, are confined largely to the production of silk and rice and a few manufactures while other world resources are undermanned, one can not freely apply the economic concept of the division of labor to the international field. It may be granted, for example, that Japan is naturally adapted to silk raising and England to cotton spinning, but the terrific pressure of population in Japan might overcome this natural international adaptation, and compel the Japanese to produce, if possible, cotton textiles for export at a lower price than England. (See CoST OF PRODUCTION; WAGES.)

On the other hand, the international division of labor makes it possible with much less hardship to restrict international movements of population. As the population of a country expands beyond the capacity of its agriculture to support, the international division of labor makes it relatively easy for the increasing population to remain in the country, since the increasing population can take up first those industries in respect to which the country has natural advantages and then other industries. For instance, if the 60,000,000 Japanese

had to support themselves in their islands, being limited to domestic foods and domestic manufactures, they would have neither the quantity nor the variety of goods which they now enjoy, whereas, clearly, their rising standard of living is due, at least in part, to the international division of labor which has allowed them to devote themselves to the production of silk amd its manufactures and more recently to the manufacture of cotton goods and other industries.

Social and industrial organization and equipment are factors that can be much modified by legislation, education, and other conscious measures. A country that at one time is not adapted to some types of industry, because of absence of necessary technical skill and organization of its workmen, may, by proper means, become preeminent in the work in which it was deficient. An example of such redistribution of international aptitudes may be observed in France under Colbert (see). The development of machine processes in many cases lessens the importance of native skill or technical training. While in a former day England and France possessed in their trained workmen a remarkable advantage in certain lines, the creation of machinery makes it possible, in some cases, for the untaught oriental to produce equally as good wares as the European.

Because of the gradual diffusion of industrial training and mechanical equipment throughout all lands, many manufacturing operations that, according to the principle of the division of labor, were confined to Europe and North America are now being performed in the less-developed parts of the world.

While natural resources must be accepted in great measure as they exist, the other factors that have been mentioned are largely subject to human control. Whether international commerce should be maintained upon the basis of comparative advantages existing at any time, or whether a modification of such basis should be undertaken, is a question often for governmental decision. It may be wise to sacrifice certain present gains from the international division of labor for the sake of future development, of industrial diversity, or of national defense.

Certain lands possess agricultural or mineral capacities that can not be developed in other countries. In such instances the natural division of labor must be respected. Elsewhere great differences in capacity depend upon purely social factors. In the latter case nations may by legislation or otherwise effect such changes as will alter relative advantages.

(See also STANDARD OF LIVING.)

References: Bridge, R. S., The Geography of Commerce and Industry, London, 1920: Brown, R. N. R., The Principles of Economic Geography, London, 1920; Brunhes, Jean, Human Geography, Chicago, 1920: Chamberlain, James Franklin, Geography, Physical, Economic, Regional, Philadelphia, 1921; Chisholm, George G., Handbook of Commercial Geography, London, 1922: Dryer, C. R. W., Elementary Economic Geography, New York, 1921; 1untington, Ellsworth, Business Geography, New York, 1922; Redway, J. W., Geography, Commercial and Industrial, New York, 1923; Smith, Joseph R., Industrial and Commercial Geography, New York, 1913; the same, Commerce and Industry, New York, 1920.

INTERNATIONAL JUSTICE, COURT OF. See MULTILATERAL CONVENTIONS.

INTERNATIONAL LABOUR ORGANIZATION. See MULTILATERAL CONVENTIONS. INTERNATIONAL UNION FOR THE PUBLICATION OF CUSTOMS TARIFFS, an organization formed by a general international convention signed at Brussels on July 5, 1890. This convention, to

which the United States and practically all other countries are signatories, is binding for successive periods of seven years, but is subject to revision at any time. Any nation may withdraw by notice given 12 months before expiration of any sevenyear period.

The object of the Union is to publish at the common expense and as promptly and accurately as possible all customs tariffs of the various countries of the world, and any modifications thereof from time to time. To this end an International Bureau has been organized at Brussels, which is charged with the publication of the International Customs Bulletin in the following five languages: English, French, German, Italian, and Spanish. In order to facilitate prompt and accurate publication of the tariffs of the various countries, each contracting State agrees to send to the bureau at Brussels two copies of its customs laws, tariffs, and any regulations, orders, or instructions concerning application of its tariff schedules, classifi cation of goods, or other matters affecting the interpretation or execution of its tariff laws; also copies of commercial treaties, international conventions or agreements, and domestic laws having a direct bearing on existing tariffs.

The annual budget of expenditures by the International Bureau is fixed by the convention at the maximum of 125,000 francs (about $25,000), actual expenses being shared by the various countries in stated proportions according to the amount of their commerce.1

The bureau suspended operations during the World War. At the Conference on Customs Formalities (Geneva, 1923) it pointed out that its budget would not allow it to undertake to publish the customs regulations of the world.

(See also MULTILATERAL CONVENTIONS.) INVENTIONS, MODELS OF. See MODELS OF INVENTIONS.

INVOICE. See CUSTOMS ORGANIZATION, AND PROCEDURE; CUSTOMS LAWS, UNITED STATES, SPECIAL AND ADMINISTRATIVE, secs. 481, 482; see also INDEX.

INVOICE PRICE AND VALUE. Invoice price is a term applied to imports actually purchased..

Invoice value applies to imports obtained otherwise than by actual purchase.

NOTE--Both terms refer to the law distinguishing between goods obtained by purchase and goods otherwise obtained.

IODINE, a nonmetallic element, is a purplishblack solid which volatilizes easily, giving off a violet-colored vapor. It does not occur free in nature, but its salts are widely distributed in small amounts and are always present in sea water and iodine is found in sodium nitrate beds of Chile. in some mineral springs. The principal source of Iodine is used directly and in the form of iodine compounds in medicine. The compounds are also employed in photography. About 80 per cent of the domestic consumption is probably made into sodium and potassium iodides.

Production of iodine is not commercially important in the United States, although small amounts have been produced from kelp on the Pacific coast. Exports of iodine from Chile prior to the war were about 1,000,000 pounds, increasing to a maximum of 3,000,000 pounds in 1916 and then decreasing to 2,000,000 pounds in 1918 and averaging about

1 Culbertson, W. S., Commercial Policy in War Time and After, 1919, p. 209; Reinsch, Paul S., Public International Unions, Boston, 1911, p. 41.

Survey A-9.

IPECAC is a crude root drug. It is used in medicine as an emetic and expectorant; also in the manufacture of its alkaloids, of which emetine is the most important.

Production.-Ipecac grows wild in South American forests and is collected by Indians. Attempts have been made to cultivate this important and high-priced drug in other tropical regions, but only in India and the Straits Settlements has commercial success on a small scale been attained. American supplies are derived from Colombia and Brazil. Imports of ipecac for 1909-1918 averaged 76,131 pounds, valued at $135,248. In recent years its commercial value has increased largely, owing to the demand for emetine. Later statistics follow:

2,383, 842

225, 863

887, 361

22, 586

10

1921.

830,984

70, 197

7,020

10

1922*

1, 199, 526

1922 + 1923

253, 517

684,787

10

10

Erports.-Statistics not available.
Survey FL-2.

IRON CASTINGS. These articles include (1) a variety of familiar commodities made of cast iron, (2) castings of malleable iron, and (3) cast hollow ware, coated, glazed, or tinned. Malleable cast iron is a crude form of wrought iron obtained by decarbonization. The castings are made in the ordinary way from low-silicon iron with little phosphorus and sulphur; they are embedded in oxide of iron or peroxide of manganese and heated to a red heat until most of the carbon is removed from the surface.

Production. Available statistics cover only castiron pipe, including fittings, with an output in 1913 of 1,266,245 short tons; in 1918 of 619,673 tons; in 1920 of 886,515 tons; in 1921, 794,230 tons; in 1922, 1,283,449 tons; and in 1923, 1,566,878 tons. Imports. During the fiscal year 1918 the imports of iron castings amounted to 3,324,002 pounds, or 1,662 short tons, valued at $181,258. More than one-half of this imported material consisted of castiron plates, stove plates and irons, sadirons, tailors'

IRON HYDROXIDE PIGMENTS. See IRON OXIDE, ETC.

IRON PAINTS, NATURAL. See IRON OXIDES, Ero.

IRON ORE. Commercial iron ore contains from 25 to 70 per cent of iron. The American iron ore as mined averages over 50 per cent. Manganiferous iron ores are either those which contain iron greatly in excess of manganese and which are smelted directly to a pig iron containing 1 to 4 per cent manganese, or those in which manganese equals or is in excess of the iron and which, with other iron ores, are smelted to a similar product or low-grade ferromanganese. The waste cinder of pyrite roasters is also a source of iron. After the iron pyrites

the manufacture of ordnance material. Imports in the fiscal year 1913 amounted to 2,246,861 tons, valued at $7,035,185. For more recent years they were as follows (000 omitted)

134

Capital.....

160 $462, 282,000

Tons.. Value..

50.1

42.9

Wages, total.

Annual wage per wage earner..
Cost of materials..

Value of products..

Value added by manufacture..
Per cent wages are of added value.i

1 Less than one-tenth of 1 per cent. Of the 134 active establishments reported in 1921, 42 were located in Pennsylvania; 30 in Ohio; 13 in Alabama; 9 in Michigan; 8 in New York; 6 in Illinois; 4 each in Tennessee and Virginia; 3 each in Indiana, West Virginia, and Wisconsin; 2 each in Missouri and New Jersey; and 1 each in Colorado, Kentucky, Maryland, Massachusetts, and Minnesota.

The returns indicate that the combined output of all establishments was approximately only 40 per cent of the maximum capacity, based upon a demand requiring full time.

Next to the United States the leading sources of iron ore in 1913 were Germany (26,771,598 tons) France (21,572,835), and the United Kingdom (15,997,328). Production materially declined during the war. Since the transfer of Lorraine to France after the close of the World War, France has ranked next to the United States as the world's greatest producer of iron ore.

The greatest iron-ore fields of the world are (1) the Lake Superior district; (2) the Lorraine ore field of northeastern France, Luxemburg, and southern Belgium; (3) the magnetite deposits of northern Sweden; (4) the ore fields of Oriente, Cuba: (5) the ores of Belle Isle, Newfoundland; and (6) the ore region of southern Brazil. In each of these fields the potential yield of iron is estimated to exceed 1,000,000,000 tons. Other deposits, the commercial importance of which is greater than that of the amount of reserves available, are located in Spain and northern Africa. The Lorraine field is advantageously situated with reference to coal and limestone and is near some of the most important markets of the world. The iron content of Lorraine ore, however, is only about 30 to 35 per cent, while that of Lake Superior ore averages over 50 per cent. Iron ores of Brazil and Sweden are high in iron, averaging from 55 to 65 per cent, but those countries have a very limited supply of coal. The Brazilian field contains the most extensive known

The bulk of the exported ore goes to Canada.
Survey F-2.

IRON OR STEEL PLATES AND SHEETS, OTHER THAN HOT ROLLED BLACK. Sheets and plates are always produced by rolling heated material and are often advanced in manufacture beyond the stage of hot-rolled black sheets and plates. They may be cleaned by pickling in acid, and cold drawn, cold rolled, hammered, planished, glanced, polished, or tempered and blued, depending upon the physical qualities and finish desired.

Production of these varieties of plates and sheets is not reported separately, being included in the totals for "Iron or Steel Plates" and "Iron or Steel Sheets, common or black" (see).

Imports vary considerably as between the various classes of highly finished plates and sheets. Imports of pickled sheets were 246,271 pounds, valued at $5,950, in 1913 and have steadily declined from 210,282 pounds, valued at $71,834, in 1918 to 17,449 pounds, valued at $1,832, in 1922, the latter figures being the imports entered under the tariff act of 1913. Imports of sheets and plates cold rolled, cold hammered, blued, or brightened have declined to an even more marked degree, or from 34,929 pounds, valued at $8,034 in 1913 to 211,956 pounds, valued at $125,801, in 1918 and to 3,569 pounds, valued at $1,903, in 1922. Highergrade steels of the last-mentioned finishes--that is, crucible or electric steels show an increase from 233,347 pounds in 1918 to 1,338,555 pounds in 1920 and a decrease from that year to 177,259 pounds, valued at $44,566, in 1922. Iron or steel sheets, polished, planished, or glanced, have shown considerable fluctuation, the high point in imports being 245,662 pounds, valued at $8,069, for the year 1922 and the minimum level being 6,530 pounds, valued at $346, in 1923. In 1913 imports amounted to 65,070 pounds, valued at $17,056. Import statistics for plates, cold finished, not polished, available since September 21, 1922, show 23,113 pounds, valued at $8,341, in 1923.

Considerable amounts of alloy steel sheets and plates have been imported. Statistics follow: