New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-10-24
RECIPROCITY'S RESULT.
WHY 1T IS IMPOSSIBLE UNDER THE FREE
TRADE SYSTEM

is plain Reciprocity implies such an arrange
mcnt between nations witch regard to commercial
intercourse as will suffice 10 render the conditions
OF trade equal. Obviously, this does not neces
sariy involve actual freedom of trade. Absolute
free trade, moreover, is not in existence among
nations, and it ought u be clear that the revenue
and industrial system which is commonly called
Free Trade is altogether inconsistent with
reciprocal trade relation. This is what Lord
Salisbury was complaining about when, in
his speech at Hastings on May Is, 1892,
he made use Of the following expressions: Every
nation" he said O. is irving how it can get the
greatest possible protection for its own industries
and at the same time the greatest possible access
TO the markets of its neighbors. | want to point
out TO you that what / observe is that, while
is very anxious to get favor of Is, and IS -
anxious 10 get favor Of {, nobody cares two
straws about getting the cbnenercial favor OF
Great Britain. What is the reason Of that? 1t
il that in this great battle Great Britain has
stripped herself of the weapons by which the
battle has to he fought. The weapon with which
they all fight is admission 10 their own markets.
that is to say, A says to B If you will make
your duties such that can sell in your market,
will make my duties such that you can sell in
nv market But we begin by saving We will
levy no duties on anybody and we declare that
il would be contrary and disloyal to the glorious
and sacred doctrine of Free Trade 20 levy any
duty on anybody fer the sake of what we can
get by it, 1t may be noble, but it is not bust
ness
Lord Salisbury, at all events, appreciates the
fact that Reciprocity and Free Trade are i'm
possible at one and the same time.
In considering this subject it is necessary TO
agree upon definitions of the words Reciprocity
Free Trade" and Protection" 1t must be IN
dcrstOOd that Free Trade means such revenue
system as has been pursued during many years
by Great Brtain-a system. that is, by which
customs revenues are derived, in by far the great
est part, from tax on imports Of merchandise
such as is not produced In any considerable guam
t in the importing country, and, therefore, when
imported. does not compete with the industry of
that country.
Ii must also be understood that Reciprocity
means a commercial arrangement between nations.
such as the United States has concluded with
Brazil, with Spain for Cuba and Porto Rico,
with Santo Domingo, with the German Empire,
with the British West Indies. with Nicaragua,
Guatemala, Salvador Costa Rica and Honduras.
and with Austria-Hungary-an arrangement by
Which those countries, in consideration for the
free admi sion of certain OF their products that
do not compe'e with our own, agree. on terms
peculiarly favorable 10 rs, 10 receive certain OF
our products that do not compete with theirs.
1t is not less important to IN 'erstand that the
word Protection means revenue and indus
trial policy, such As has been pursued since SCI
in this country, by which duties on foreign goods
are so levied as to supply the Treasury with all
the Gus oms revenues it requires, while at the
same time protecting home industries against the
compc-;:on of similar foreign industries con-
Quoted on less liberal system as 10 wages than
that prevailing here.
Using these terms then, as they are commonly
understood and actually piactised among nations.
it must be perfectly apparent that Reciprocity
and Free Trade are wholly antagonistic, and that
when a nation makes business of deriving its
revenues from non-competing products, and of
admitting competing products free, II is utterly
at the mercy of the rest of the world 1t has
Invested itself of the commercial weapons Of
offence and defence. II has nothing to offer az
consideration for especial favor, and Reciprocity
is a system of especial favor The commission
merchant who agrees to open his store to the
products Of all factories on equal terms thereby
forbids himself 10 make particularly favorable
contracts with any one, and such contracts con-
sttute the scheme of Reciprocity.
Reciprocity is Free Trade in certain lines
non-com peting lines. We say 10 Brazil, Cuba
and other nations The United States produces
but a small percentage Of the sugar and molasses
it REQUIRES and no coffee at all; you, on TIE
other hand, produce 10 flour and no pork, and
YOU manufacture dryGOods and no machinery.
We need your sugar, molasses and coffee, and We
want TO get them for people cheaply rs
possible; you need our provisions and manu-
features. Now. if You will admit our provisions
and manufactures on better terms than you admit
the provisions and manufactures of other nltions,
lot
900. 900 prosperous consumers for your sugar,
molasse, and coffee and it so happens that
can Use substantially all the sugar, mOlas>cs and
coffee YOU produce, whereas if Close our market
apinst vour poods az we certainly shall do unless
YOU treat rs well you cannot sell them anywhere
else for Europe consumes comparatively little
coffee and grows rom the beet substantially all
the sugar she consumes. Now, what are you
willing 10 do?
What they have done is now happily for Ms
and them. a matter Of history. Twcntythrcc
millions Of people living on these continents in the
neighborhood of the equator and importing $780,
OOO, 900 worth of Just such provisions and manu-
features as the United States grow and make. have
agreed TO receive our goods on better terms than
they receive the goods of our commercial rivals
and the result is that our exports to Brazil. not
withstanding the domestic disturbances that have
steadily nterfered with the trade OF that country,
lave increased IN the fifteen months fegi1ninr WI
March 81, 1s01-the date OH which reciprocity went
into enect-over the fifteen months imme lately
preceding that date, from S16279.9G9 TO S1s.-
O44.452, or in the amount Of 1854 per cent The
percentage of increase in the item Of b!eaistuhs
is ls48 per cent: in iron and steel. 93.3' per cent
in wood and its manufactures 1911 per cent
During the ten months in which the treaty with
Cuba has operated exports TO that island have
increased over the preceding ten months from $40
393.27l 10 $16.O95,46S, or in the amount OF
s5,7O2107. or "a Sc per cent. In agricultural i'm
pements the increase is $43,7lo in breadstuTs tire
increase is SI,is437s; i'll chemicals the increase
is $299,4s in manufactures OF iron and steel the