The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-07-05
BRITISH FARLEY
is new THREAT
TO U. S. TRADE
Imperial Preference Move
Drives More Factories
to Canada.
BY WILLIAM PHILIP SIMMS
scripps-Howard Foreign Editor

WASHINGTON, July 5.-Of vital
importance to the people of the
United States, the British imperial
conference, opening at Ottawa on
July 10, will be followed with no
little anxiety by officials here.
The big issue will be imperial
preference If the various mem
bers Of the empire agree to grant
one another special trade favors, as
against foreign trade, both Ameri-
can capital and labor will be dealt
a severe blow.
Both big political parties in Can
ada stand pledged to the policy of
imperial preference, particularly the
Conservatives of Premiere Bennett,
now in Office And the Tory gov
eminent of the mother country is
prepared to levy a much higher
duty on all foreign imports, es-
pecially those from the United
States, than 1t does on dominion
commodities.
Systematically, it would appear
Canada, our best customer, is serv-
ing abrogation notices on those
countries with which she has most
favored nation treaties. Instead
she is bargaining repicrocally for
special consideration for her ex-
ports
American Factories Leave
Already this policy seems to be
bearing fruit. American industry,
hard hit by retaliatory tariffs raised
against American goods abroad, is
rushing TO Canada with branch fac
tories from which to supply this
trade.
The empire conference, at the
very least, is expected to increase
this exodus of American factories,
American capital, American business
and American jobs. For Canada
and the other members of the Brit
ish commonwealth of nations are
demanding the employment of Ca
madam or British labor.
The British Empire covers one
fourth the land surface of the globe.
1t boasts more than one-fourth the
earth's population, living in the
United Kingdom, Ireland, Canada,
Australia. South Africa, New zea-
land, India, the Crown Colonies, de-
tendencies, protectorates, and man
dated territories.
Benefit Is Seen
Sponsors of the Ottawa meeting
see in this expansive empire a grand
opportunity for mutual, or intra-
empire trade, one of the few re-
naming fields for vast and profita-
BILE increases in commodity con-
sumption.
If Canada, for example, will buy
her manufactured products as far
as possible from England, and Eng
land will buy her raw materials
from Canada, to the exclusion of the
United States and other foreign
countries, it would be tremendously
to their advantage.
If all the dominions would play
the game in this fashion, the British
argue, the empire could tell the rest
of the world to go hang.
That is precisely what the Ottawa
parley, in effect, hopes to bring
about. If it hits the United States,
that will be just too bad. The
United States can console itself
with the thought that it began the
prohibitive tariff game and John
Bull merely is repaying Uncle Sam
in kind. So say the Britishers.
Blow at U. S. Trade
In recent years nearly one-half
the total foreign trade of the
United States has been with the
British. About a fifth has been
with Canada and another fifth with
the United Kingdom.
1t follows as plain as pikestaff
that if the ntra-empire trade agree
nent comes off, the United States
Yill suffer.
Economists and foreign trade ex-
ertS long have predicted the high
riff folly of the United States
entually would turn into a BOOM
ing. Today what they forecast
is at hand.
Accordingly, they now predict
Uncle Sam may be driven to aban-
don his super-tariff and adopt a
policy of trade agreements with the
British Empire, and other foreign
governments, on basis akin to rec
iprocity.
Much, therefore, depends upon
ottawa.
More u. S. Firms to Canada