Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-20
BRITISH DOMINION
FARLEY WATCHED
PotentiaLtieS to Disturb U. S.
Politically and Economic
ally Are Seen.

WHICH, N41O0l4ClC VI
events Of 1882 shall finally be recorded.
It is likely that the imperial economic
conference Of Britain and her domin-
ions, now scheduled to meet at Of
tawa in July, will receive conspicuous
mention. This conference may shape
and determine trade and tariff policies
of far-reaching import to the British
Empire. More than that. however. from
the United States viewpoint, it may
DIsSS2 strong repercussions upon our
own foreign trade and in turn bear di-
rectly upon future American tariff poll
cies. This will happen If the present
drive within the British Empire for
commercial unity and economic CO.
operation" attains its goal at the Of
tawa conference.
The conference, formally q continu-
alton of that of 1880 in London, was to
have met in August last year, but was
indefinitely postponed as internal con-
ditions in several of the dominionS,
notably Australia and New Zealand,
made it difficult for their governments
to attend and, moreover, in the then
existing conditions there seemed no
prospect of its leading to any result.
Last October, however, Immediately
after the return of the National gov
eminent in England, Prime Minister
GCA4ACbV 4At NNAAGA1 tNAtWNa AAtn
tation, which was promptly accepted by
the other doninionS and by Great
Britain.
DeminiOns Become Equal.
A further significant recent incident
was the formal abolition OF the last
yestige of legal inequality between the
governments and the Parliaments of the
dominions and the government and
Parliament of Great Britain. BY the
statute of Westminster passed by the
British Parliament and assented to by
the King last December, Britain explic-
lily renowned the long obsolete right to
legislate on dominion affairs and rec
ogniZed that legislation passed by do
1ninion Parliaments has the same valid
ity as that passed by itself.
This formal recognition of the equal
status of the dominions has been &C.
companied by an increasing community
of spirit in matters or trade. For the
purposes of diplomacy the British Empire
is now but an ALLIANCES of separate ma
tionS. But for commercial purposes the
British Empire is to stand as a unit.
The most elaborate system OF tariff
preferences in the world Is found in the
tariffs of these dominions. The Ottawa
Conference is called with the express
design of strengthening these tariff
preferences. The empire trade policy is
now the dominant note.
So far as the United States is con-
cerned the empire trade policy hurts US
principally in two quarters-our trade
with Canada and our trade with Great
Britain. With England now levytng
protective tariff rates of her own, but
according to her dominions' special
preference, it follows that Canada and
the other dominions in competition with
us in the English markets have an
artificial advantage created by the
higher tariff our goods must pay.
British Have Edge.
AS for the Canadian markets, British
goods enter Canada at decidedly lower
rates than are imposed on goods from
the United States, handicapping our
trade in a way that is obvious. In
competing with England for Canadian
trade our geographical advantage and
our superior facilities for mass produc-
ton have stood us in good stead in the
past. Canada was q pioneer IN the es-
Enlistment of a preferential tariff sys-
TEN. She inaugurated such a plan
nearly 40 years ago, when Premier Lau-
rier. discouraged by failures Of reel
procity between Canada and the United
States, declared There will be no more
pilgrimages to Washington. we are
turning our hopes to the old mother
land"
Despite, our disadvantage under
Canadian tariff preferences our trace
with Canada during the pre-war years
grew at an amazing pace. Exports o.
British goods to Canada during the "
years Of preference privileges to the
end of 1915 approximately trebled IN
annual value, but the increase in I'M
ports to Canada of American goods IN
creased skiold. Since the end OF 1913
the annual value of Great Britatns ex-
ports to Canada has increased 10 per
cent, while the value of American ex-
ports to Canada doubled. At present
Canada imports from the United states
four times as much goods as she does
from England.
fhe immediate future outlook, how
ever, for our Canadian trade Is dark.
Canada's tariff wall, like our own, has
grown steadily higher. Last year when
the Canadian budget showed deficit
OF roundly SIS 900, 900, Canada set up
a tariff board and that board In turn
increased the rates on more than 200
ltsus, at the same time that Canada
ives raising its sales tax from ] 10
per cent. After Great Britain went on
the gold standard Canada put into ef-
feet an order in council imposing pro-
hibitive import duties on dumped
goods"
Political Battle Possible.
If the imperial conference at Ottawa
sanctions proposals looking to further
restriction Of imports into the British
Empire from the rest Of the world,
with further extension of special priv
leges from the Dominions and Great
Britain in trade with one another, the
repercussions in the United States may
be political as well as economic.
Presumably the Democratic party Is
going into the coming campaign with
a pledge for downward revision of our
own tariff. The empire trade policy of
our neighborS and rivals, however, is
calculated to strengthen the case for
our own higher tariff rather than the
reverse Indeed, 1t may start wave
of resentment which will crystalline in
a demand for retaliation in the shape
of higher tariffs still on our side of
the line, or it may result in opposite
fashion in a demand that We reopen
the question of Canadian reciprocity.
In any event it will make the tariff is
sue a live question, at the same time
that it will bring into play a further
adverse factor in the revival Of our own
foreign trade.