The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1911-07-05
President Taft Speaks
On Reciprocity Bill
Continued from First Page)

Of which the duties were reduced or
abolished on a number of products
which would compete in our market
with those Of our own production.
The truth is, If you will read the last
speech of Mckinley, you will see that
he speaks in this connection Of duties
which have become unnecessary and
that might well be abolished.
ANSWERS REPUBLICANS.
Another answer to the objection or
Republican friends who denounce Can
adam reciprocity as a heresy, is that
the amount Of competition which is to
take place in our markets between
Canaditno products and those Of the
United States under this agreement is
very much less than they would, by
their general statements, have you be
lieve. In the first place, they say that
by free trade in agricultural products
we are giving them a market of 100000
900 people and taking only a market
of 100000 people for the same things
and that necessarily they derive greater
advantage. AS a matter of fact in the
vast bulk of our agricultural products
they can furnish no competition what
ever, while this agreement admits all
our products free into Canada.
BENEFITS FARMERS.
ct is said that this Canadian reel
proCity agreement is made wholly at
the expense of the farmers and only in
the interest of those who would have
farm products at a less price, tO-wit:
the wage earners of the large cities.
It is my own judgment that the reel
procity agreement will not greatly re
duce the cost of living if at all. 1t will,
however, steady prices by charging the
reservoir of supplies for those things
that are raised in both countries and ii
will make more remote the possibility
of cornering commodities and eXtOrting
excessive prices for them from the
public.
1T is a mistake to say however, that
this agreement is not in the interest OF
the farmers. Let us examine the sta
tistics and see. The free list is made
| up almost entirely Of agricultural
products. The amounts Of expectation
from this country to Canada at present
in the articles covered and affected by
the reciprocity agreement were for the
fiscal year ending March 81, 1910, S48,-
900. 600 and the duties paid on those
articles was something more than 81
500. 600. The expectation of these same
articles into Canada for the year ended
March 81, 1919, was S64,OO0,000 and the
duties levied and collected were $40
500, 900. The increase in other words
was about $16, 600, 600 last year and the
additional duties collected was about
$4,000, 900. There seems little doubt
that for the current year the United
| y
will reach S75,00O.OOO and the remission
Of duties would be not less than 81,
000,0 under the agreement What ]
wish to call your attention to is that
| OF this remission of approximately So
| 400, 900 which would have been made
on the imports into Canada from the
! United States, if the reciprocity agree
ment had been in effect a little less
than 100000 would have been on
AGRICULTURAL products
The truth is that when the com
plant made on behalf of the farmer
is analysed it will be found to be linn
| tied to an argument that by the ad-
mission of free wheat into the United
States, the price of wheat will be re
duced 10 cents a bushel. The answer
| to the argument is that this cannot be.
| for the reason that the price of wheat
| in the United States and in Canada
| both is ultimately fixed by the price OF
wheat in the world and that the worlds
prize is adjusted and made at Liver
| pool by the relation of the supply of
the exported wheat to the demand for
| it by countries which do not raise
enough to supply their people.
| TT may be that the free admission
! Of wheat from the United States into
Canada will increase to some extent
the price to the Canadian farmer, but
! 1t will not decrease the price to the
| American farmer, because il will not
decrease the demand upon the Ameri-
can farmer for his wheat.
FLOUR PRICES REDUCED.
THE division from British and Euro
| pean markets to the market Of the
United States of twenty to forty mil
! lion bushels of Canadian wheat an
! nually would not only strengthen the
wheat market abroad but would fur
nish the American mills with a needed
! complement Of wheat which the world
would require just as 1t has in the
| past. but it would then be in the shape
1 Of American made flour. The effect Of
| increased wheat supplies would be to
reduce the cost of manufacturing flour
! in Just the ratio that the mills were
able to thereby increase their output.
| This reduced cost Of production would
! enable the mills to regain in the
| foreign market the IS to 20 million
| barrels Of -four sold in foreign trade
! annually ten years ago, but which in
recent years has fallen to less than ten
million barrels. The American grown
! wheat would not be decreased in value
in the slightest but on the contrary
| because of increased marketing facili-
ties and fuller time operation, the mills
| would be in better position to absorb
Increased quantities of American grown
wheat
wherever the probable course of
trade under reciprocity is analysed as
to it's effect on farm products, in which
Canada can compete, the conclusions
vary but slightly from those reached
with respect to wheat. AS to barley
and oats. the next most important
| ~~ains likely to enter into our interna-
| tional exchange under reciprocity, the
quality of the Canadian products viii
commend them to our use. Their ap-
! pearance in the American market may
cause their substitution to some extent
for our own similar products, but such
substitution would mean just so much
elimination of Canada's products from
the markets Of the world. Their place
needs to he filed and the supply for
this purpose would most naturally
come from the United States.
HOPES FOR SUCCESS.
It am most earnestly hopeful that
the Canadian reciprocity agreement
will pass the senate, and will be con-
| frmed by the Canadian parliament I
am hopeful of this, not for political
/ reasons, because the responsibility and
the credit for il will not be wholly with
any one political party. The Demo-
Gratis Of the house and the Democrats
of the senate should have their fun
measure Of praise for its adoption
| should il become law"
A STRENUOUS DAY.