The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-01-21
"RECIPROCITY WITH CANADA
Address by Theodore M. Knappen of
The Minneapolis journal.


The Minneapolis journal.
Special to The Journal.
Fargo. N. D., Jan. 21.-Theoqore
M. Knappen, associate editor of The
Minneapolis Journal, addressed the
convention last night ON "Reciproci-
tys with Canada as 1t Would Affect
the Farmers of the Northwest He
said in part:
I wish to say frankly that if reciprocity
with Canada is bad thing for you, I am
not for it, / do not wish to see any legis-
lation or any treaty that will work injury
to the farmers of these three great states.
1t is not believable that these farmers will
ever support any proposition that is plain
" adverse to their interests. i under
stand, therefore, that if we are to sue
coed in this movement to secure closer
trade relations between the United States
and Canada. must be prepared to
demonstrate that if reciprocity will not
benefit the American farmer, it will at
least do him no harm.
Importance of Canadian Trade.
1t is not possible to say just what a
reciprocity treaty would include if ne
gotiated now, but from information we
have received from our Canadian friends,
it appears that the most essential feature
os such 81 treaty, from their standpoint,
would have to be free trade in natural
products The Canadians contend that in
only about half as much yours, it
would be nothing more than reciprocity for
us to bring our tariffs down to the level of
theirs.
Last year We exported to Canada $131.-
100000 worth of goods. a very large part
of which was in the form of manufactured
articles On the other hand we imported
from Canada only $55.000000 worth of
goods almost all of which was raw ma
terial. The Canadians are our third best
customers among the nations ranking af-
ter Germany. and the United Kingdom. of
course, being best customer. One
item of our export trade to Canada may be
taken as typical of the great growth of
the whole. Twenty years ago we exported
to Canada only $150,00O worth of agricul-
tural machinery. Last year we exported
about 5000. 900 worth being about one
twentieth of the entire American output
Of agricultural machinery. and more than
we sold to any other nation.
Free Trade in Natural Products.
Let us consider whether free trade in
natural products is likely to injure you
farmers Of the northwest. Western Can
ada is natural wheat country and it may
be taken for granted that it is not likely
to export other products of the soil than
wheat in quantities sufficiently large to
make it worth while to consider them in
this connection. 1t comes down practical
ly to a question of whether there would
be any danger to the American farmer in
permitting the free entry of Canadian
wheat which is now taxed at the rate of
% cents a bushAl.
There is no use worrying in this con-
nection about the competition of Canadian
wheat with that YOU raise. in the markets
of the world. for our laws have nothing
to do with that. Nothing that you or I,
or the government al Washington. can do,
will prevent the apid development Of the
great wheat growing areas of western
fora fl,o
cellent wheat raised on these Drairies
from being sent to London and Liverpool
and other world markets to~compete with
our own wheat. That is where the real
competition exists between the American
& and the Canadian wheat
If there were no tariff barriers to tie
free movement of wheat -bacll%and forth
across the international boundary line.
there would be no distinction between Ca
madam and American wheat crops in Eu-
rope. They would be blended and handled
& as one crop. AS sellers in a common mar
ket. it is to our advantage to pool our
interests.
Higher Prices In Canada
AS a matter of fact, except when some
temporary congestion of railways OF
something of the sort occurs in Canada
the price of wheat rules about as high
there as at points the same distance from
the terminal point in this country. I
have the figures to show that until about
The time of the close of navigation on
$he lakes, slightly higher price is paid
Tor wheat at points in western, Canada
than at points in the United States hay
Ing the same freight rates to Lake SUI
perior Water doesn't usualls-Aow from q
lower to higher level. and wheat doesn't
generally leave a higher market to reach
a lower one.
1t is true that after the close of navi
cation Canadian wheat runs from 8 to 5
cents lower than American at corresponds
ing stations. That is simply because o.
the lack of proper storage and transporta-
ton facilities. and the absence of large
domestic milling demand, all of which
western Canada will have ere long, or will
be supplied with If Canadian wheat were