The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-05-18
SOME OF THE new BOOKS
Reciprocity.

Reciprocity.
The new work of the above title. by j.
Laurence Laughlin, of Chicago University,
and II. Parker Willis, of Washington and
Lee University. is the most inclusive and
up-to-date discussion and exposition OF
this important phase of the tariff question
The subject OF modified and differential
tariffs concerns not only the economist
but has been given attention in purely
diplomatic circles in connection with 1.-The
most favored nation" theory. AS policy
IL has played but little part in American
politics, and has been used but little in
any special sense. The diversity of defini-
ton or the word reciprocity shows in itself
the TACT that the policy has not assumed
definite status in our economy. President
Hadley defines reciprocity in a general
way, making no effort to confine il to tariff
matters, but regarding il rather as repre-
sentative OF broad aspect OF commercial
policy. He says: Reciprocity is relation
between two Independent powers, such that
the citizens of each are guaranteed certain
commercial privileges at the hands of the
OF with With the thought OF the origin
theme employed in connection with the
navlgatlon system, this definition is not
PAD. But reciprocity is now generally used
ton or the word as it is used in this book
confines the meaning to tariff concessions
purely: The definition from Chambers's
encyclopaedia fits the case: Reciprocity
is term for an arrangement between two
countries having protective tariff against
other countries to admit each into the
others territories certain specified taxable
articles of commerce duty free, or at ex-
ceptionally light duties. The classes Of ar
ucles are arranged TO balance one another
on one'side and the other. Such mutual ar
q ffr,aaC s1nl ln6 fl If
as opposed to free trade and thorough-go-
ing protection Reciprocity may be used
with either the protective idea or the re-
taiiatory. 1t is an instrument in CONNER
cial warfare. AS protective systems gained
greater strength abroad American produc-
ers felt themselves subject to restrictions
gan to feel the pressure Of competition and
TO recognize that our merchants might be
able to enter successfully into international
competition, should circumstances be made
favorable. did reciprocity as a self-con-
sctous system gain a considerable support.
From 1884 onward 1t definitely increased
as popular movement paralleling the
growth OF the system of commercial treat
les developed among European countries.
Like the spirit abroad, 1t was an effort to
get away from protection so far as that
policy necesstated loss of markets and dis
elimination in duties.
Without discussing the economic phases
or the question: as presented by the authors
In detail, their general conclusions on the
fty of reciprocity they hold we should de-
sire 1t where 1t will be of benefit to
Nation. 1t will result beneficially only
when 1t is broadly extended and when 1t
produces a general reduction of our tariff
duties on important objects in return for
correspondingly important reductions to us.
ourselves of the immediate benefits of
cheaper goods because we feel We must
wait until other countries are willing to
get our goods as cheap. But II we must
wait the benefit will be realized when the
action finally comes, provided the reduc-
tions are of sufficient size to make them
ity they explain. that is not favorable,
the kind which consists in monopoly con-
cessions to q limited number of foreign
producers which are paid for by our con-
sumers Cor vice versa, in monopoly con-
cessions to our producers paid by foreign
consumers.) The ratification or rejection
of reciprocity treaties is battle OF special
interests Of opposing producers at home.
Looking at the immediate prospects for the
ratification of the reciprocity treaties al
ready before the Senate. 1t seems certain
that but few Of them will ever be accepted.
Like other political predictions this is I'M
certain, but there is no evident reason to
believe any of the important treaties will
should be accepted the result will be merely
a small subsidy paid by the American con-
sumer to foreign producers In unimportant
countries. Revision OF the taris s i Is tne
sions and this will lessen the Likelihood
of the development of general reciprocity
policy From the scientific standpoint the
reciprocity of to-day, as shown in the
treaties now pending the action OF the
Senate, is, they assert no more than
tumble of tariff concessions, dictated upon
no logical principles and subject only to
the requirements of the negotiator The
differental advantage they hold. is subject
to destruction by the fact that We strip
our bargains of any semblance Of equity
by concluding later bargains which destroy
the advantage. The authors explain their
reasons for these conclusions in detail and
append to the volume the existing reciproc-
ity treaties, statistics on the subject and
an exhaustive photography. The book is or
value TO the economist. the statesman, the
producer and the citizen who will keep
abreast of current political and economic
discussion The Baker IL Taylor Com
pany New York.