The Washington herald., 1911-09-23
DEFEAT OF PACT
NO PANIC BREEDER
C. C. Glover Says Politics
Blocks Business.
INJURY TO TAFT IS SEEN
Canada's Stunning Blow at the
President's Pet Project VariOusIy
med" Through Extra Session a
Mystery, Says Banker.

AS the first stunning surprise of reci-
procity's defeat wore off yesterday, there
was a disposition on the part OF fnan-
cial and political leaders in this city to
spell trouble for President Taft in Can
ada's failure to accept his pact.
Politics, as evidenced by the ''jamming
through of the reciprocity pact at an
extra session of Congress, will be re-
sponsibie for a business depression until
the election of the next President, ac-
cording to a statement by Charles c.
Glover, president of the Riggs National
Bank, and one of the financial leaders
of the country.
mo man in the United States knows
why Canada refused the pact" said Mr..
Glover. ''As soon as the smoke clears
away Canada's action will not be regard
ed as unfriandly. She acted under a
misapprehension; that is all. One would
have thought that Canada had all to
gain by such a pact. Why the United
States should have been so anxious 10
take it up is one of the mysteries of the
whole affair
Treaty damned Through.
Also" continued Mr.. Glover, why
We should have jammed the treaty
through in an extra session of Congress
when we might just as well have waited
and passed il at a regular session, giving
the outlying sections of Canada a chance
to thoroughly understand the agreement
and the benefits Canada might derive
under II is another deep political mys-
terry.
"One thing is very clear. The proposed
new premier. Mr.. Borden. the leader OF
the opposition fight. is evidently a very
clever man. The way he used every ad-
vantage to defeat the pact shows his
quality
II do not think there need be the
slightest fear of any effect upon the
stock market or upon business as a con-
sequence of Canada's action The Lon
don market furry was only a furry
nothing more. We have a big country,
and can always do business and plenty
OF business. We have plenty of resources
and plenty of markets.
Where Danger Lies.
1T is not any action OF Canadas that
can hurt us. We are, as a matter Of fact,
hurting ourselves, trying to destroy our
own institutions. pulling down big bust
ness organizations and otherwise working
to our own disaster.
The country is in a serious condition.
and look for fourteen or sixteen months
Of business depression which will last
until after the Presidential election
There will not be any panic. There will
just be depression until politics gets out Of
the air. Canada will have nothing to do
with this. Politics, not Canada, is block
ing the road"
As this, his most favored measure. has
failed he cannot hope for denomination,
according to Representative Stanley,
chairman of the steel investigation COM
mittee.
The Canadian reciprocity pact" said
Mr.. Stanley last night, was the one
measure that President Taft wished to
and he did not do it, 1t will
be severe blow TO him politically.
Protection n Fetch.
Il feel that the defeat will be greatly
felt by both this nation and Canada.
The cause of the defeat is undoubtedly
the fetch Of protection, which we have
outgrown, but which Canada has not. It
is absolutely due also to the fear of farm |
ers on both sides of the line held that they
would be destroyed il they dealt with
each other. Protection and the Cana
dian belief in that fetch is what killed
reciprocity in Canada |
Il think Mr.. Taft is severely hurt |
because this Canadian pact Is
the only great measure so far attributed |
to him. The railroad bill was passed not
by him, but in spite of him. Our in |
ability TO trade with Canada on the |
basis of the pact cannot produce depres- |
sion in business in this country. There
Is not enough trade involved so far as !
Canada is concerned"
Dropped for the Time |
The position of the State Department
was made clear with the issuance of an |
that no exchange of notes |
between this nation and Canada will be |
necessary to close the diplomatic record |
Of negotiations The defeat of the |
treaty. it was said, completely ends the |
matter. The only message received by |
the state Department relative to the |
matter was dispatch from Consul Cen
eraI Bradley at Montreal 1t read: Lib
erals defeated"
walter L. Houser. in charge of head
quarters of the Republican Progressive
League commenting upon the defeat of
said:
BY rejecting the reciprocity treaty.
Canada has rendered a great service 70
american agriculture and has denied to
oVerprotected American manufactured
=, ou' aIIdse III tnlS country
over that which they now possess. Had |
been citizen of Canada I would GER
tainly have supported the treaty. because
It is entirely in favor of that country.
For the same reason that Presiden, |
Taft desired its adoption, namely. 10 |
'indicate his judgment that It was a |
good thing for both countries, I might |
say that / regret that II has not been |
adopted, because had it been, the ef
,ect of its operation would have vindi-
'ated the Judgment of those who op-