Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-22

Canada is going to the bow-wows
again-or yet-unless the United
States agrees to reopen Canadian
reciprocity When President Taft adj
vocated it in 1911, he frankly said 1t
would probably split the Republican
party" 1t did He lost his reelection
when the farmers discovered that
Canadian reciprocity was: Free trade
on everything the American farmers
produced; high protection on every
thing they had to buy.
Now comes Prime Minister McKen-
zie King of Canada, proposing to re-
vive that same old reciprocity, as the
best means of bringing prosperity to
Canada, but with no facts indicating
that it would do aught but tax Amer
lean. farmers, as it would have done
in 1911.
According to the official statistics
of the Department of Commerce, the
Winnipeg price of wheat averages s
cents a bushel less than the Mime
apolis price, and it has so ranged
since 1911 and for some years prior.
In the 1911 agitation it was found to
average IL cents a bushel less just
north of the international boundary
than south of that Imaginary line"
Yet superficial statements abound
that "the wheat market is wholly
governed by the Liverpool price,
which has not been true for decades.
These statements are quoted from a
leading farm weekly of Minneapolis,
the editor of which testified before a
Senate committee in 1911, as follows
1--WE hear it often told that the
price of wheat is made in liverpool.
That is the merest academic nom
sense. The price of our wheat has
nothing whatever to do with the price
of wheat in Liverpool For years,
gentlemen, not q bushel of our North
western hard wheat has ever seen
Liverpool-not an ounce; and the
best grades of Northwestern flour
never go to Europe. 1t has been
years, gentlemen-and l speak on
the authority of A. G. Loring, the
general manager of the Pillsbury-
Washburn Co., and on the authority
of Mr.. Van Dusen, the head of the
largest grain handling concern, and
ON the authority of Mr. Atkinson.
manager of the Washburn-C Crosby Co
We are absolutely Independent of the
foreign export market"
Senator McCumber-Is II not also
true that the prices at Minneapolis
have been above the export prices for
three years?
Editor-Certainly.
Senator Northumberland with the
freight added they could not have ex-
ported it. At times the Minneapolis
price is above Liverpool.
That does not apply so strongly to
soft wheat of Eastern or more south
erly farms, or to inferior grades.
That testimony relates to conditions
of 1911, but now, and ever since then,
the differential has continued in favor
IF IN hn oo,-i
can grain market. Canada has no
such home market That is why Ca
madam farmers are 50 eager to get
that extra 6 to IL cents a bushel-
or rather divide it with their Ameri-
can competitors.
The United States wheat, crop
ranges from 620.000,000 to 100000
600 bushels, hence, whether the diff
ference in price is 6 or II cents, 1t
runs into more than $50 1000 900 a
year. on wheat alone. And the same
principle applies to all grain, vege-
tables and fruits, dairy products, live
stock. poultry and eggs. Canadian
reciprocity as proposed, our farm
champions contend, would cost our
farmers 100000, 900 annually.
" X r.
But reciprocity Win Canada-aCtudl
reciprocity-would have given our
access to the Canadian
market which would be a valuable
extension of their field, while our in
dustrial competition with the Infant
industries of eastern Canada would |
have been like measles in the nursery. |
Hence when the subject came to O. |
vote in Canada, eastern Canada de- |
feated the project--to the amazement |
of our panic stricken farmers, who |
had viewed with alarm the action of |
our Senate in ratifying the agreement |
by the Executive, and to |
the fury of Canadian farmers.
The reciprocity act remained on our |
statute books from 1911 until the pas
sage of the Observation-Disclosures tariff |
law in 1922, which repealed it. If |
Canada had reversed herself at any
time within those II years she would
have put the United States into an
embarrassing position by accepting
what we seemed to persist in offering
after her refusal in 1911.
Reciprocity, as a means of saliva
ton to Canada, Is older than the pres
emit generation. In March, 1849, Lord |
when II at all promotes the progress