The Washington herald., 1911-01-27

To the Senate and House Of Representa-
t.ves:
In my annual message Of December 8,
1910. stated that the policy of broader and
closer trade relations with the Dominion
Of Canada, which was initiated in the ad-
justment of the maximum and minimum
provisions Of the tariff act of August 5,
1903. had proved mutually beneficial and
that it justified further efforts for the
readjustment of the commercial relations
OF the two countries. 1 also informed you
| that, by my direction. the Secretary of
State had dispatched two representatives
Of the Department Of State as special
commissioners to Ottawa to confer with
representatives of the Dominion govern
ment, that they were authorized to take
steps to formulate a reciprocal trade
agreement, and that the Ottawa con-
ferences thus begun had been adjourned
! to be resumed in Washington.
On the 7th of the present month two
cabinet ministers came to Washington as
! representatives Of the Dominion gov
eminent, and the conferences were con-
tinued between them and the Secretary
Of State The result of the negotiations
was that on the 21st instant a reciprocal
| trade agreement was reached. the text
of which is herewith transmitted with &C
companying correspondence and other
| data
Long-standinE Questions Settled.
One by one the controversies resulting
| from the uncertainties which attended
the partition of British territory on the
American continent at the close Of the
| Revolution, and which were Inevitable
under the then conditions. have been
| al ipaf od- h,y
by direct negotiation. The merits of these
disputes. many of them extending through
Ia century. need not now be reviewed.
They related to the settlement OF bound
aries, the definition of rights of navi-
| CATION, the Interpretation of treaties, and
many other subjects.
/ Through the friendly sentiments. the
energetic enorts. and the broadly patri-
otto views Of successive administr atoms.
and especially of that of my Immediate
predecessor, all these questions have been
settled. The most acute related to the
Atlantic fisheries, and this long-standing
controversy. after amicable negotiation.
was referred to The Hague tribunal
The judgment of that august international
court has been accepted by the people
Of both countries and a satisfactory
agreement in pursuance of the Judgment
has ended completely the controversy.
An CQultdDle arrangement lido iCSeiiiS
been reached between our Interstate
Commerce COMMISSION and the similar
body in Canada in regard to through
rates on the transportation lines between
the two countries.
Why Reciprocity IL Wise.
The path having been thus opened for
the Improvement of commercial rela-
,ions a reciprocal trade agreement is the
nf oil hot hoS
accomplished in disposing of matters of
a diplomatic and controversial character
The identity OF interest of two peoples
linked together by race. language. po-
litical institutions. and geographical proS-
unity offers the foundation. The contri-
button to the Industrial advar ent of
our own country by the mfg pacross
the boundary of the thrift "a indus
trious Canadians of Englp/ Scotch. and
French origin is now reps 10y the move
ment of large numbers of our own sturdy
farmers to the northwest of Canada, thus
giving their labor. their means. and their
experience to the development of that
section, with its agricultural possibilities.
The guiding motive in seeking adjust
ment of trade relations between two
countries so situated geographically
should be to give play to productive
Of political boundaries. While equivalency
should be sought in an arrangement Of
this character. an exact balance Of finan-
cial gain is neither imperative nor attain
able. No yardstick can measure the
benefits to the two peoples Of this freer
commercial intercourse. and no trade
agreement should he judged wholly by
cuStom-houSe statistics.
A FarsiEhted Policy Necessary.
We have reached stage in our own
Development that calls for states
manlike and broad view of our future
economic status and its requirements.
We have drawn upon our natural re-
sources in such a way as to invite atten-
ton to their necessary limit. This has
properly aroused effort to conserve them
to avoid their waste. and to restrict their
use to our necessities We have so in
creased in population and in our con-
sumption of food products and the other
necessities of life, hitherto supplied large
ly from our own country, that unless we
materially increase our production we
can see before us a change in our eco
nomic position, from that Of a country
selling to the world food and natural
products of the farm and forest. to one
consuming and importing them. Ex-
GLIDING cotton, which is exceptional, a
radical change is already shown in our
exports in the falling of in the amount
of our agricultural products sold abroad
and a corresponding marked increase in
our manufactures exported
A farsighted policy requires that il we
can enlarge our supply of natural re-
sources. and especially of food products
and the necessities of life. without sub
stantial injury to any of our producing
and manufacturing classes, We should
take steps to do so now. We have on
the north of us a country contiguous to
ours for 5000 miles, with natural re-
sources of the same character as ours
which have not been drawn upon as
ours have been, and in the development