The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-03-31
CANADIAN TARIFF
AGREEMENT MADE
Taft Wants Closer Trade Rela-
tons With Canada
CONFERENCE rs ASKED
viting Canadian officials TO Meet
Him in Order to Settle All
the Difficulties

| proclamation of complete tariff agree
ment with Canada today 1t was an
rounced that President Taft has invited
the Dominion governAient officials TO a
conference looking to a closer trade re-
lations between the two countries and to
general readjustment of duties.
The Presidents invitation to Canada is
included in an exchange of notes between
| Secretary of State Knox and the Do
minion government. The note expresses
satisfaction az the happy termination of
the tariff negotiations and advances the
| hope that the way had been opened for
an early settlement of all differences be-
tween the two governments, including the
troublesome question of the water bound
airy lines.
The note expresses the belief from the
American viewpoint that the time is
right for a conference looking to the bet
terment of trade relations between the
two countries. What the President hopes
is that the conference may result in a
complete readjustment of the tariff rates
between the two countries without either
abandoning its national economic policy
The unofficial story of the negotiations
with Canada looking toward settle
ment announced today by which Canada
is declared entitled to the minimum rates
of the Payne-Aldrich tariff law is per-
haps more interesting than the specific
announcement as to just what articles
are included in the concessions granted
on either side.
President Taft from the first did not
hesitate to let 1t be known that he would
go long way to avoid war with Canada.
Such a war, be believed, would fall heavi-
" upon American interests and manu-
features
1t was the President who took the ini-
tiative in inviting Finance Minister Field
ing to Albany to discuss the differences
between the two countries. The exchange
of views at Albany which followed in
dicates that peace is assured. The
charge that Canada was unduly discrim-
inatory against the United states origin
ally grew out of the Canadian treaty with
France, whereby the latter country was
given a reduction of from ~ to per
cent.
President Taft did not take the view
that this was discriminatory, inasmuch
as France in return offered to Canaaa
similar reduction of rates.
The United States never having oHereo
concessions to Canada, Mr.. Taft heia'
could not expect such preferential treat
ment on the other side. There stood IN
the way however, the fact that the re-
auctions granted by Canada 10 france
were automatically applied to ID other
countries included in Great Britains Ia
vored nation policy This the Presl-
dent holds did amount to discrimination
against the United States. 1t was to OFF,
set this that the negotiations were begun
and the President expressed himself to-
day as entirely satisfied with the out
come
The more important nations benef1tting
by Canada's preferential treatment under
the favored nation" clause are Spain,
Switzerland Austria and Japan.
President Taft made the proposition that
Canada be absolyed from undue discrln-
nation by the United States If this coun-
try was given a ~ per cent reduction on
the articles with which American firms
compete with the favored nations" in the
Canadian markets.
The Dominion government finally agreed
| to this, and it was in these terms that the
settlement was reached.
Thus while the reductions actually ap-
| ply only to something like per cent of
American exports to Canada the large
| part of the exports are in non-competitive
classes where America should have the
market anyway.
! Canada conceded 10 numbers to the
! United States, the thirteenth being a has
| ket" or omnibus clause which includes a
number of articles, among which appears
cotton seed oil as one of the heaviest
export commodities.
| AS to Spain the United States meets
with Canadian strong competition In
raisins, prunes and all sorts of dried
| fruits between the two countries. Can
ada granted the United States reduction
| on this class of mercantile shipments.
| With Switzerland the United States meets
competition in the Canadian market in
| movements of watches. Canada has
| granted reduction which puts the United
States on an equal footing with France,
| Austria and Japan, and the United States
meets heavy competition IN chinaware.
Canada has granted reductions on all ar
| ticles in this class.
| AS to wood pulp and print paper some
| criticism has been leveled at the Pres-
| dent. 1t was officially stated at the White
| House today that these items did not and
could not enter into the negotiations The
rates and terms of duty on wood and wood
| pulp are fixed in the tariff law, and cam
not be made the subject of negotiation
| or discretionary action on the part of
| the President.