Evening star., 1932-03-27

IdVOr OF Ufle OQlJeQ states, this SHOWN
by the following table of imports and
exports:
Imports from Exports to
United States. United States
1913 l8............s7 s792, 100000 S44O 100000
1921 s5g sR55909o egg EGG o0O z97o00 M o00 0o0 0o0
1921. 21............ 356000,000 $50 900 900
In 1921, without any notice to or
negotiation with Canada, Congress took
steps to shut out Canadian imports In
the Washington tariff revision of that
year cattle were taken from the free
list and made dutiable at 80 per cent.
Sheep were taken from the free list
and made dutiable at 81 per head.
Wheat was changed from free to IS
cents per bushel; bacon, from free to a
25 per cent duty; butter increased from
212 cents per pound duty to cents
per pound; apples, beans, mutton and
lamb, pork, cheese, cream, potatoes,
fresh milk and long list of other
agricultural products correspondingly
dealt with.
1t was staggering blow to Canadian
agriculture. Live stock men, their cat
tie barred from Britain by an embargo,
and practically barred from the United
States by the new duties, faced bank
ruptcy. Canadian agriculture suffered
a tremendous deflation.
Shipments Show Decrease.
Unfortunately, there was worse to
come. In 1922 Congress again increased
duties; increased them on cattle, horses,
poultry, sheep, oats, buckwheat, barley,
peas, rye, flour, bacon, potatoes, eggs.
other dairy products. The duty on
wheat was increased to AZ cents bushel.
The havoc caused by these duties is
told by the trade statistics. In 1921
Canada shipped the United States A.
100000 bushels of wheat. In 1928, with
the new duties in effect, wheat ship
ments fell to 2500,0o0 bushels. Oats
declined from 1858, 900 bushels in 1921
to 213,000 bushels in 1923. Cattle ship
ments, which totaled 247,000 head in
1921, declined to $4,000 head in 1923.
Something like $100,000,000 was cut
from the Dominions export trade to the
United States.
Canada did not retaliate. Canadians
believed the natural advantages of trade
between the two countries would soon
be realized; that the United States was
passing through mere high tariff
phase. So much was this believed that
Ottawa actually reduced duties on GER
tain classes of American products, made
overtures to Washington for reciprocal
tariff reductions.
These overtures failed. Even then,
had the United States not resorted to
still further tariff increases through
the Hawley-Smoot act Canada would
have gone on promoting trade with
Americans. But when Canadians saw
their farm products almost completely
barred from United States markets.
market for agricultural produce worth
STA, 100000 in 1921 reduced to $4,000
600 in 1930-their attitude changed.
They began to talk retaliation. It was
this sentiment which in the Fall of
1880 made Mr.. Bennett prime minister
of Canada.
1t is this policy that he Is now apply
ing. Protecting the home market first
of all, he has next addressed himself to
making the British Empire provide the
export market lost in the United States.
And his policies are succeeding. Ca
madam purchases from the United
States have declined by so per cent; ar
rangements for markets in the British
Empire are well under way.
This is the story of trade difficulties
between the United States and Canada.
1t Is also the explanation Of the influx
of American branch factories to the
Dominion, of the driving power behind
imperial preferences.
It is not that Canadians do not wish
to trade any longer with their American
neighbors. All that the existing Cana
dian tariff policy means Is that with
Canadian products barred from Amerl-
can markets, and with repeated pill
grimages to Washington rebuffed, there
is q natural seeking for alternative
markets. One friendly gesture from
Washington within the next year might
well bring resumption Of the mutually
profitable trade Of Is years ago.
Canada did not retaliate. instead sne
endeavored to adjust her trade ana
Economies to the new conditions, re-
fused to alter her own policy against
the United States, gradually won PACK
her markets. By 1929 she was again
selling farm products and raw material
to the United States at the rate OF
$5o0,000,000 year.
Purchases Exceed Sales.
Canada bought more goods from the
United States than she sold in return.
In the 10 years between 1921 and 1891
her 10000 900 people imported S7,o35;-
100000 of American products; tnls
while 100000 Americans were buy
ing about $4,000, ,000,000 worth OF Cana
dian goods.
The record shows, indeed, that In the
years 1923, 1924 and 1925 Canada, dis
regarding the Fordney-McCumber
schedules, actually lowered duties on
American products; lowered them on
motor cars, on machinery, on farm I'M
plementS. At any time during thls
period the Canadian people would nave
welcomed an offer of reciprocal tar1n
preferences from Washington.
Then came the HaWley-Smoot act.
This law, which cut off Sl50000,000 OF
Canadian exports to the United states
at one fell swoop-this in year when
Canada's American imports had reached
a new high record-WaS accepted as
the last straw.
Disheartened in their long-sustained
efforts to trade with their neighbors
and upon this continent, and convinced
that nothing could be hoped for from
the administration at Washington, Ca
nadians began looking toward London.
Hawley and Smoot are, in a sense, the
real authors of the Empire Economic
Conference. They laid its foundations.
Canada, today, is copying United
States fiscal methods. She is increas-
ing her tariff walls against all coun-
| tries outside the British Empire; COM
| pelling American industries to come to
| Canada to secure the CANADIAN market;
making her own purchases at home or
| from the empire. Although she refuses
| to admit it openly, she is retaliating
] against washington