New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-04-23
Canada Again
Talks of Free
Trade with u. S.
Reciprocity Discussion Is
Revived by Recent Rul-
ing on Wheat
Toronto, April 81.

Toronto, ApTu Il.
The Order in Council placing wheat,
wheat -four and semolina on the free
list Of imports into Canada has revived
much of the controversy and some of
the passion of the reciprocity issue Of
1911. Supporters Of the government
are defending the step as justified by
special war conditions, but orthodox
protectionists in Eastern Canada are
not pleased at what they consider to be
distinct departure from the national
policy. Low tariff propagandists, on
the other hand, are hailing the action
of the government as victory for
them and, somewhat Historically, are
calling for further concessions. There
is disposition among the Liberals to
acclaim the removal of protection on
wheat as vindcation of their advo-
cacy of reciprocity six years ago and
TO predict that the government will be
compelled by the insistent demand Of
the electors to accept additional planks
of the reciprocity agreement. There IS
almost general recognition, even by
those who believe that the best inter
csts of Canada will suffer as result
of the action just taken, that free
wheat and free -four will remain so
long as the United States market is
|
attitude of the protectionists is one of
resignation to the inevitable and re-
eretful concession TO a short-slghted
but continued insistence from the
Western grain growers.
Reasons Not Lacking
The reasons advanced BY the govern
ment in explanation OF the addition OF
wheat and -four to the free list are not
lacking in FEASIBILITY. The normal
commercial export demand from Great
Britain and the Continent of Europe
for Canadian wheat of all grades for
milling purposes has been discontin
ued on account of the shortage of ocean
tonnage. The British government con-
trolls the situation and has secured
practically all the ships available in
order to transport grain OF the higher
grades and -four for the use of Great
Britain and its allies. The wheat
shortage in the United States, accentu-
ated, no doubt, by considerable specu-
lation, has resulted in increased prices
and a consequent call upon Canadian
stocks. Considerable quantities of
wheat from the Dominion already have
been imported into the United States
to meet commitments there, the duty
provided under the American tariff hav-
ing been paid
Surplus for Export
Out of a total Canadian wheat crop
in 1916 of 22O,367 900 bushels, it is
estimated officially that 116,54S,000
bushels are still in the Dominion.
About 100000 bushels will be re-
the needs of domestic mills. This
leaves a large volume TO be marketed
outside the country. In the case OF
the low grades and the Canadian sup
ply this. year includes between 12,000,-
600 and 100000 bushels Of tough
grain-the only market left is that of
the United States. Under these cir
cumstances prices for wheat. especially
for the inferior grades, have been
lower in the Dominion than south of
the boundary. The Canadian authori-
ties explain that it was considered de-
sirable, in view Of the appeal for in
creased agricultural production, that
the Canadian farmer should feel that
he would secure the best market price
obtainable. For these reasons wheat,
-four and semolina were added to the
Canadian free list and the reciprocal
provision of the United States tariff
invoked
Western Farmers Pleased
The concession is one for which the
farmers of the Western provinces have
been agitating for years. Since the
rejection of the reciprocity scheme the
demand has grown stronger instead Of
weakening and has not been confined to
any one party or section. With an early
Dominion election in prospect there
can be no doubt that the Order in
Council is intended TO strengthen the
position Of the government in the West,
particularly among the American farm
ers, who have become an extremely i'm
portant political factor now that ma
jority of the grain growers of British
origin are serving in the Canadian
army. II seems certain that free &C
cess to the United States market will
prove of some advantage TO the Cana
dian wheat producer, but the benefits
will not measure up to the wild predlc-
tions of Western enthusiasts. Some
what higher prices will be obtained, a.
least for the inferior quality grain
Eastern protectionists see counter bal
ancing disadvantages. Canadian No.
hard" may lose its identity in the Liv-
crpool market, and so cease TO adver-
tse Canada, they contend. Flour mills
at Minneapolis and ST. Paul may draw
eft wheat that has heretofore gone to
build up the Canadian milling inter
ests. Byproducts may go TO feed
American instead of Canadian live
stock. American railways may benefit
at the expense of Canadian railways.
Tho, 70 tho old extraordinarily arQu-