The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-05-05
TRADE WITH CANADA.


To the Editor Of the Indianapolis Journal:
Because the Canadian trade issue is one
calling for serious consideration, inasmuch
as there is a danger of our losing our con-
troll of the Canadian market, your editorial
headed A Aged Contention" and appear
ing in the Journal of April &c. commands
more thar ordinary attention. Your argu-
ment against free trade in natural products
with Canada is strong and well presented,
and would be convincing in the northern
tier of States and in New England and in
New York were not new conditions press
ing into notice.
The most important of these new condi-
lions is that the farmers of the East. after
being relieved from Canadian competition,
have become handicapped by the competi-
ton of the Western farmers. who now
dominate through improved transportation
facilities. The result is the farmers of the
East no longer regard protection against
Canadian competition as a necessity.
Another of the conditions is that the Dor
der cities. once very antagonistic to freer
trade with Canada, now desire more con-
tributory territory and are favoring free
trade with Canada in order to secure the
additional territory desired. The general
revival of trade has considerably energized
the border cities.
Another of the conditions is that the
Americanization Of Canada has commenced
in earnest, and Canada will soon be as ac-
tive, commercially and industrially. as is
che northern tier of States. 1t is thus real
lied that the extension of American activ-
1ty ~northward will level competition in
farm products. With that competition lev
eled, Western producers have nothing to
dear from free trade with Canada in nat
ural products.
Another and very important new condi-
ton is that Canada now sells its surplus
farm products in Great Britain and buys
States. In the days of the reciprocity
treaty Canada sold its surplus farm prod
ucts in the United States and bought it's
articles of manufacture in Great Britain.
Under these new conditions effective an
tagonism to freer trade with Canada has
been reduced TO that element among the
manufacturers that holds out against re-
duction of tariff. Canada does not want
the markets of the United States for its
surplus farm products. What Canada
wants is the benefit of competition between
buyers: Were there free trade in natural
products with Canada, American buyers
for export would operate as freely In Can
ada as they do in this country. and the
Canadian farmers would receive as high
prices for their products as do the Amer
lean farmers. instead of being compelled 10
accept what the Canadian buyers offer.
ms Is the advantage that Canada wants.
again, with free trade in natural products
trade between the two countries would
flow more easily, with mutual benefit. For
these advantages from free trade In natural
products Canada is at present willing 10
its low tariff on American manu-
features, a tariff that enables the American
manufacturer 10 control the Canadian
market. If free trade in natural products
is not arranged in the near future. there is
little doubt that Canada will shut out our
manufacturing trade there to a large extent.
because she can better afford 10 do her own
manufacturing than 10 pay so heavy a hal
ance OF trade to us.
1t is one of the striking facts Of the dav
that Canada's preferential tariff TO Great
Britain OF % l-9 per cent. although it has
been in force for nearly five years, has not
Canada's imports from Great Brit
ain. Taking the period between the abro-
cation of the reciprocity treaty 0S6sa apd
the year 1901. Canada's imports from Great
Britain increased but "a per cent. and from
the United States 31S per cent. This can
be better understood by explaining that
canada s rate OF duty upon the total i'm
ports from the United States last year was
125 per cent. and upon dutiable imports
from the United States was 24S3 per cent.
In the same year Canada's rate OF duty upon
the total imports from Great Britain was1s2
per cent. and upon the total dutiable i'm
ports from Great Britain was 24S7 per cent.
or 4-1OOths higher than on dutiable imnorts
from the United States. This proves that
the United States has better tariff relations
with Canada than has Great Britain. The
for this unique situation is. OF course.
preference for American goods
I'm buying and low tarif-a sit
uation that will continue IL free trade i'm
natural products is arranged. Another re-
markable result from Canada's preferential
tariff TO Great Britain is that Canada has
her exports TO Great Britain from
s16.OO0.O 900 in 1866 TO sos. 0OO.O 600 in 1901. and has
a favorable balance OF trade with Great
Britain OF SCI. 100000. which is paid over TO
the United States towards the s72 O0 o0
balance Of trade In our favor.
Since the Laurier government went into
power in Canada. In 1896. the right 10 make
TO Canada by Great Britain. subject only
TO Great Britain's approval. that approval
10 be withheld only when an unreasonable
sacrifice OF the interests OF Great Britain
would be evident The Laurier government