Los Angeles herald., 1909-11-10
The Canadian Tariff
Bv Frederic j. Haskin

favor of the United States. Tt is hardly
to be expected that any president would
consider such discrimination to be
undue" The general tariff Is in effect
against all nations outside the British
empire, with the exception of Ger
many. Canada charges surtax of
33 1-3 per cent above its general tariff
on German products this surtax being
imposed in retaliation for German anti
Canaulan discrimination. 1t is within
Canada's power to impose such sur
ia on any and all American products.
Janada has q flexible and elastic
tariff system. The intermediate tariff
provides for certain reciprocal tariff
reductions on a |. .,eral scale. The
American tariff is absolutely infexible
and non-elastic. The president must
impose either the maximum duty of %
per cent above the regular duties or he
must permit the regular schedule to
stand. There is no opportunity to
give and take, playing one schedule
a. -ainst the other such as other nations
have
Ale Canadian parliament at its pres
ent session most probably will ratify
tariff treaty with France, which will
place the Canadian intermediate tariff
in effect. This treaty which already
has been ratified by France, gives Can
ada many advantages in France which
the United sites cannot obtain. Re-
ciprocally Canada gi-es France reduc-
tions which the United States may not
hope for. This, on its face, constitutes
discrimination against the United
S.ltes by both France and Canada.
Will Mr.. Taft consider 1t undue" dis
crimination? And IL Canada's action
is considered undue" will reprisa1s be
directed only against France and Can
ada or against England as we'll?
These are some of the questions
which the president must decide before
March 81. The tariff board recently
appointed by Mr.. Taft is now at work
preparing data upon which the presi-
dent will base his decisions. If he
should decide that Canada, by Its
treaty with France, is unduly discrim-
mating against the United States. then
the maximum tariff will be put on
goods coming into the States from
the dominion. Whereupon Canada
may, II its rulers be so minded, retail
late by the use of increased tariff du-
ties, export duties. surtaxes and all
manner of custom house weapons. none
of which the United States happens
to possess. AS Canada Is the largest
foreign market for American manu-
factureI products the question is of
some Importance. It Is big with pos
sibilities. but it is too early to say
what are the probabilities 1t may be
merry war, II may be a peaceful COM
promise. If II is the latter IL will be by
Virtue of Mr.. Taft's decision that the
treaty with France is not "unduly"
discriminatory In other words the
compromise will have to be made south
OF the boundary line. In the meantime
the Franco Canadian treaty will be
ratified and its tariff schedules will be
In erect. BY reason of that fact Cana
dian exports to France will have n
great advantage over American ex-
ports. Leaving the details to the tariff
c Lerts, IL Is Illuminating TO examine
one schedule fer example. Agricultural
implements from Canada will go into
French custom houses at a reduction
OF 40 per cent under the duty. charged
on American implements. This win
make difference OF 3S6 on a mower
$4.S2 on a reaper. $500 on a binder, and
so on. At this time the United States
sends five times as much agricultural
machinery to France as does Canada
When the new French treaty goes into
effect American implements cannot
compete with those from Canada In
the French market. The result will
not affect a great American Industrial
corporation so very much, for the In.
terpational Harvester company will In
crease Its Ontario plants and move
le rge section of its business across the
border. But It will affect the industry
of the country in many other particu-
lars Whether or not the discrimina-
tion is undue" is for the president to
decide.
The maximum and minimum clause
OF. the Payne-Aldrich bill is supported
by some able arguments, and even its
enemies admit that 1t has much merit.
1t is also fraught with possibilities
OF trouble. for It opens up a game at
which two nations can play. No three
men gathered together by chance will
agree upon any phase of the tariff
question in America, perhaps, but It is
the earnest hope of the majority of
business men on both sides OF the inter-
national boundary that a tariff war
with Canada will be averted. Canada
has proved Itself pos -essed OF liberal
spirit In its actions concerning wood
pulp and pulp wood; in that II has
not gone nearly so far as II might In
protecting its natural monopoly OF the
white paper supply. The United States
will prove equally as liberal, In all
probability, and there will be no tariff
war. But the custom houses are there
on the border and men in uniform sit
In the seat of customs Americans will
look to ottawa and the Canadian par
Lament as they nevt- have looked be-
FORE and perhaps some of them will
regret that they have so long refused
to know anything aNout their northern
neighbors The Canadian tariff may
yet become a paramount issue.
Tomorrow-The Irrigation Exposition.