The Washington herald., 1911-01-27
PRESIDENT TAFTS MESSAGE
ON THE CANADIAN TREATY

of which the conditions as to wages and
character of the wage Garner and trans.
portation to market differ but little from
those prevailing with us. The difference
is not greater than 1t is between different
States Of our own country or between
different provinces Of the Dominion OF
Canada Ought we not, then. to ar
range a commercial agreement with
Canada, IL we can, by which We shall
haye direct access to her great supply
OF natural products without an obstruct.
ing or prohibitory tariff? This is not a
violation of the protective principle. as
that has been authoritatively announced
by those who uphold it. because tina,
principle does not call for a tariH be-
tween this country and one whose con-
ditions as to production. population. and
wages are SO like ours. and when our
common boundary line Of 5000 miles in
itself must make a radical distinction
between our commercial treatment OF
Canada and of any other country.
In q Spirit OF Concession.
The Dominion has greatly prospered.
1t has an active. aggressive. and intel
ligent people. They are coming to the
parting of the ways. They must soon
decide whether they are to regard them
selves as isolated permanently from our
markets by a perpetual wall or whether
We are to be commercial friends. II we
give them reason to take the former
view. can We complain If they adopt
methods denying access to certain OF
their natural resources except upon con-
ditions quite unfavorable to us? nota-
BILE instance Of such a possibility may be
seen in the conditions surrounding the
supply Of pulp wood and the manufacture
Of print paper, for which we have made
a conditional provision in the agreement.
believed to be equitable. Should we not
now. therefore, before their policy has
become too crystallized and fixed
for change, meet them in a
commerce between the two countries.
and thus greatly increase the natural re-
sources available to our people?
l do not wish to hold out the prospect
that the unrestricted interchange Of food
products will greatly and at once reduce
their cost to the people of this country.
Moreover, the present small amount of
Canadian surplus for export as compared
with that Of our own production and
consumption would make the reduction
gradual. Excluding the element Of trans
portation. the price of staple food prod
ucts. especially Of cereals. is much the
same the world over. and the recent in
crease in price has been the result of a
worldwide cause. But a source of sup
ply as near as Canada would certainly
help to prevent speculative fluctuations.
would steady local price movements. and
would postpone the effect of a further
world increase in the price of leading
commodities entering into the cost of liv-
ing, if that be inevitable.
Additions to the Free List.
In the reciprocal trade agreement nu-
merous additions are made to tho free
list. These include not only food COM
modities. such as cattle. fish, wheat. and
other grains. fresh vegetables. fruits. and
dairy products. but also rough lumber
and raw materials useful to our own in
BY giving our people access to Canadian
forests We shall reduce the consumption
Of our own. which. in the hands Of COM
paratively few owners. now have a value
that requires the enlargemnt Of our avail
able timber resources.
Natural. and especially food. products
being placed on the free list. the logical
development of a policy of reciprocity m
rates on secondary food products, or
foodstuffs partly manufactured. is. where
they cannot also be entirely exempted
lTOEl OulS, 10 lONeT the uullcS III aCCOTu
with the exemption of the raw material
from duty. This has been followed in
the trade agreement which has been ne
gotiated. AS an example. wheat is made
free and the rate on flour is equalized on
a lower basis. In the same way. live
animals being made free. the duties on
fresh meats and on secondary meat prod
ucts and on canned meats are substan-
TALLY lowered. Fresh fruits and vege-
tables being placed on the free list, the
duties on canned goods of these classes
are reduced.
Labor Competition.
Both countries in their Industrial devel-
opment have to meet the competition of
lower priced labor IN other parts of the
world. Both follow the policy of en-
the development Of nome in
dustries by protective duties within rea-
sonable limits. This has made it diff
cult to extend the principle Of reciprocal
rates to many manufactured commodities.
have succeeded in doing SO in various and
important instances.
The benefit to our widespread agricul-
tural implement industry from the reduc-
ton Of Canadian duties in the agreement
tributed and expanding motor vehicle in
dustry of the United States is given ac-
cess to the Dominion market on advanta-
yeouS terms.
Reasons for the Agreement.
My purpose in making a reciprocal
trade agreement with Canada has been
not only to obtain one which would be
advantageous to both countries,
but one which also would be truly ma
ional in its scope as applied to our own
and would be Of benefit to all
sections. The currents OF business and
The transportation facilities that will be
established forward and back across the
border cannot but fnure to the benefit OF
the boundary States. Some readjustments
may be needed, but in a very short Pc
rod the advantage Of the free CONNER