The Birmingham age-herald., 1911-01-27
Plan of Agreement Is First to Reduce the High
 Cost of Living
CONGRESS MAY NOT HAVE
 TIME TO ACT IN MATTER
New Treaty VIII Aid Trade Relations Between the Two Countries and Open Up New Markets for American Products

Washington, January 26.-Within less than 10 months after the initiation by President Taft of negotiations with the Canadian government there was laid simultaneously before the Amer ican Congress at Washington and the Canadian parliament at Ottawa today a reciprocity arrangement, which, if approved by the legislatiyea branches of the two governments. will surely do much, in the opinion of the nego- tiators. to enlarge and liberalize the trade between the United States and Canada.
 Usually such arrangements take the form of a treaty, but in the present | instance this was not done. with the result that in due time will be saved | in the consummation of the agreement which can be made effective by l simple majority vote In each or the | two legisla lures. In the case of treaty l 1t would be necessary. in the United States at least, to have the approval of l a full two-thirds of the Senate, but | now the way Is clear for the ways and means committee of the house and the
 
 proceed as it would with any tariff bill
 Purpose of the Treaty
 The animatlng purpose of Secretary | Knox appeared to have been to secure | a reduction of the high cost of living" | by greatly enlarging the free list so | far as 1t relates to foodstuffs coming | from Canada. On the other hand, he | secured a notable abatement of duties | of a purpher of American DrOductS con- sumed in Canada. Prominent among | these is bituminous coal. which is now | exported to Canada to the value of several million dollars annually. There | Is also a much better opening for American farm machinery and imple- ments. which will be appreciated by the | many American farmers who have gone l into the Canadian northwest.
 President Taft's Message
 Urging the prompt passage of reel procity treaty between the United Estates and Canada. President Tast to- day sent to Congress special message accompanied by the agreement looking
 to such a treaty, reached by repre- l sentatives of the Canadian government and of the state department at re. | cent conference in this city.
 l Identity of interest of two peoples
 linked together by race, language. po- litical institutions and geographical prox- l imity," the President gives as the chief
 reasons for such reciprocity as he recom- | mends. The President says he feels 1t
 Is the wish of the American people that l this country enter into more intimate
 and cordial relationship with Canada" Liberality of view in dealing with the proposed treaty is recommended by Pres ident Taft we have reached stage in l our own development that calls for a | statesmanllSe- and broad view of our fu- 1 ture trade statutes and It's requirements. ' | he said. While equivalency should be l sought in an arrangement of this char
 acter, an exact balance of financial gain
 is neither imperative nor attainable."
 Previous Treaty Efforts
 After speaking of efforts made previous | ly to the conference here this month to | bring about a trade agreement between the two countries, President Taft refers | to many previous questions such as the 1 settlement of boundaries, the definition of | rights of navigation, the interpretation of l treaties and many other subjects. He mentions also that long standing contro- l versy over the Atlantic fisheries and to l the equitable arrangement recently
 reached between our interstate commerce 1 commission and similar body in Canada l in regard to through rates on transpor-
 tation lines between the two countries"
 The path having thus been opened" l he continues, flor the improvement of financial relations, reciprocal trade | agreement is the logical sequence of all that has been accomplished in disposing of matters of diplomatic and controversial | character. The identity of interests of | two peoples linked together by race, lam guage, political institutions and geo. | graphical proximity offers the foundation. | The contribution to the industrial ad- | vancement of our own country by the m- | grafton across the boundary of the thrifty and industrious Canadians of English.
 Scotch and French origin is now repaid | by the movement of large numbers of our own sturdy farmers of the northwest to
 Canada. thus giving their labor. their
 means and their experience to the devel- opment of that section with its agricul-
 tural possibilities
 Motive for Adjustment
 "The guiding motive in seeking adjust | ment of trade relations between two coun- tries so situated geographically should | be to give play to productive forces as far as practicable, regardless of political boundaries. No yardstick can measure the benefits to the two peoples of this | freer commercial intercourse, and no l trade agreement should be judged wholly 1 by customs house statistics.
 we have reached a stage in our own l development that calls for statesman l like and broad view of our future econom- l ic status and its requirements. We have drawn upon our natural resources in lsuch a way as to invite attention to the necessary limit. This has propeny
 aroused effort to conserve them, to avoid their waste and to restrict their use to our necessities We have so increased in population and in consumption of food products and the other necessities of life
 either to be supplied largely from our
 own country. that unless we materially
 Increase our production we can see be- fore us a change in our economic posi- ton from that of country selling to the world goods and natural products Of
 the farm and forests to one consuming
 and importing them"
 Effect Upon Cost of Living
 As to the effect the treaty would have on cost of living in the United States the President says:
 .'I do not wish to hold out the prospect that the unrestricted interchange of food products will greatly and at once mduce their cost to the people of this country. lfhe small amount of Canadian surplus for export as compared with that of our own lproduction and consumption would make the. reduction gradual. Excluding the ele- ment of transportation the price of staple
 so11 70 ao1- tu