The Canadian Dominion: A Chronicle of Our Northern NeighborSkelton, Oscar D. (Oscar Douglas)
History
The Canadian Dominion: A Chronicle of Our Northern Neighbor
Skelton, Oscar D. (Oscar Douglas)
Canada -- History -- 1763-
In the United States the tendency was in the other direction. With the
growth of cities, the interests of the consumers of foods outweighed the
influence of the producers. Manufacturers in many cases had reached the
export stage, where foreign markets, cheap food, and cheap raw materials
were more necessary than a protected home market. The "muckrakers" were
at the height of their activity; and the tariff, as one instrument of
corruption and privilege, was suffering with the popular condemnation
of all big interests. United States newspapers were eager for free wood
pulp and cheaper paper, just as Canadian newspapers defended the policy
of checking export. It was not surprising, therefore, that reciprocity
with Canada, as one means of increasing trade and reducing the tariff,
took on new popularity. New England was the chief seat of the movement,
with Henry M. Whitney and Eugene N. Foss as its most persistent
advocates. Detroit, Chicago, St. Paul, and other border cities were also
active.
Official action soon followed this unofficial campaign. Curiously
enough, it came as an unexpected by-product of a further experiment
in protection, the Payne-Aldrich tariff. For the first time in the
experience of the United States this tariff incorporated the principle
of minimum and maximum schedules. The maximum rates, fixed at
twenty-five per cent ad valorem above the normal or minimum rates, were
to be enforced upon the goods of any country which had not, before March
10, 1910, satisfied the President that it did not discriminate against
the products of the United States. One by one the various nations
demonstrated this to President Taft's satisfaction or with wry faces
made the readjustments necessary. At last Canada alone remained. The
United States conceded that the preference to the United Kingdom did
not constitute discrimination, but it insisted that it should enjoy
the special rates recently extended to France by treaty. In Canada this
demand was received with indignation. Its tariff rates were much lower
than those which the United States imposed, and its purchases in that
country were twice as great as its sales. The demand was based on a
sudden and complete reversal of the traditional American interpretation
of the most favored nation policy. The President admitted the force of
Canada's contentions, but the law left him no option. Fortunately it did
leave him free to decide as to the adequacy of any concessions, and thus
agreement was made possible at the eleventh hour. At the President's
suggestion a conference at Albany was arranged, and on the 30th of
March a bargain was struck. Canada conceded to the United States its
intermediate tariff rates on thirteen minor schedules--chinaware, nuts,
prunes, and whatnot. These were accepted as equivalent to the special
terms given France, and Canada was certified as being entitled to
minimum rates. The United States had saved its face. Then to complete
Public-domain text, read in full here on John Shaqi.
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