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Maps, plates, charts, etc., may be filmed at different reduction ratios. Those too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: Les cartes, planches, tableaux, etc., peuvent dtre filmds d des taux de reduction diff6rents. Lorsque le document est trop grand pour dtre reproduit en un seul clich6, il est filmd d partir de Tangle supdrieur gauche, de gauche d droite, et de haut en bas, en prenant le nombre d'images n6cessaire. Les diagrammes suivants illustrent la mdthode. 1 2 3 1 2 3 4 5 6 I l: WHY NOT have: RECIPROCITY ? AN EASY, WISE AND PRACTICABLE METHOD OF SETTLING THE OUTSTANDING DISPUTES BET?VEEN CANADA AND THE UNITED STATES. By Thomas P. Gorman. TORONTO, JANUARY 1890. TORONiOr PRINTED BY HUNTER, ROSE & CO. ' 1890. '/( . V I u-/» W a a C w WKim^mmsmmimasmmmTia^i^mfms;- WHY NOT HAVE EECIPROCITY ? ■♦♦4 WHEN it was proposed, a good many years ago, to assimilate the gauges of the Canadian railways to those of the United States, so that locomotives and cars could be run freely across the international boundary line, and over the railway lin^ of the respective countries, some exceedingly loyal and exceed- ingly foolish Canadians objected to ihe proposition on the ground that it would lead to the annexation of Canada to the United States. These people imagined, or professed to believe, that unless there was a transfer of passengers, freight, mails and luggage from Canadian to American trains, and vice versa, at the international boundary, people would soon forget where the boundary w*ts, and that the British connection would be endangered. Quite as ab- surd are some of the objections now raised on the Canadian side against the proposal for the abolition of all restrictions upon, commerce between the Dominion and the United States. The opponents of reciprocity are of two classes : — Those who are pro- tectionists in the abstract, and who are interested in restricting the importation of foreign goods ; and those who profess to favor reciprocity, but who argue that the scheme is impracticable. It is with the objections of the latter class that this paper will deal principally. The " loyalty " objection is unworthy of serious at- tention. If the a^achment of Canadians to Great Britain can be undermined by allowing them to trade freely with their neigh- bors, then it must be confessed that their loyalty is not very deep-seated. And is it not ridiculous to contend that a Canadian can sell to and buy from the Americans all his life without be- coming tainted with disloyalty, so long as he is obliged to pay customs duty upon what he purchases and sells — but that if he is allowed to do his trading freely he will become an annexationist at once ? TWO OBJECTIONS ANSWERED. Coming now to the American objection to reciprocity with Canada, we find that it is contended — (1) that if the Canadians were allowed free access to the markets of the United States tb'>y would have no object in seeking political union with tho g it republic, and that (2) if Canadian products were admitted i" . 't 1}^ i- I- 4 WHY NOT HAVE RKCIPBOCITY? free, goods from other couatried would find their way into the United States by way of Canada without paying customs duty. There are also some, like Senator Morrill of Vermont, who con- tend that the United States' manufacturers would not be able to compote with those of Canadp* lu the markets of the continent if all restraints upon commerce Iwtween the two countries were abol- ished. But Mr. Morrill gives his entire case away by advocating the annexation of Canada to the United States. If the manu- facturers of the Dominion could undersell those of the United States under commercial reciprocity, they could certainly do so if Canada was annexed. And Mr. Morrill's contention that reci- procity would spoil annexationist prospects completely refutes the argument of the Canadian. restriction ists that reciprocity or commercial union would lead to annexation. ]K. ANNEXATION UNDESIRABLE. As to the argument that Canadians would cease to long for an- nexation if they had reciprocity or Commercial Union, it has never been shown that annexation would be a good thing either for Canada or for the United States. There is surely room for two nations on the North American Continent, provided the two can get along peacefully together. There is no feeling in Canada in favor of aimexation to the United States, and if a compreher- flive scheme for extenijed trade between the two countries was adopted, which would* include a complete settlement of the fish- eries, canal and lake navigation, and other questions which have caused irritation during recent years, there is little doubt that any feeling which may exist in the United States in favor of annex- ing Canada would speedily disappear ; and the occupation of the Anglo-phobes and " tail-twisters on the American side of the line, as well as that of the Yankee-phobes and professional loyal- ists on the Canadian side would be gone. IS RECIPROCAL TRADE PRACTICABLE? Now comes the question :■ — Is unrestricted reciprocity practi- cable ? First let us admit that ti ) complete obliteration of the existing restrictions upon trade between Canada and the United States is desirable. This much is generally conceded. Even the Canadian opponents of unrestricted reciprocity profess to be in favor of reciprocity in the products of the soil, the sea, the forest and the mine — thus admitting that freedom of commercial inter- course with the United States would be a good thing for the for- mers, the fisheiTaen, the lumbermen and the miners, and these four classes form probably seven-eighths of the population. Can >■ I wm wmsmmmm mm WHY NOT HAVE RECIPROCITY? 6 unrestricted reciprocity be carried out without unfaimcRS either to Canada or the United States ? Will not goods from England and other countries find their way into Canada through the United States free of duty, if we allow American products to come in free; and will not goods other than Canadian gain admittance into the United States free of duty if Canadian products are al- lowed to be imported free ? Certainly not. At least there will be as little and probably less danger of this happening than there is now of American goods being smuggled into Canada and vice versa. The theory of those apprehensive opponents of recip- rocity is that if Canada or the United States agrees to admit goods from a particular country free, all the nations of the earth will send their products to that particular country to be shipped from thence to Canada or the United States, for the purpose of escaping the payment of customs duty. But if that theory was correct, the present tariff systems of Canada and the United States would be confessed failures. The United States admits sugar from the Hawaiian Islands free of duty. How comes it that all the islands of the Pacific Ocean, which produce sugar, as well as the East and West Indian Islands, do not send their sugars to Honolulu, to be shipped from thence to the United States, in order to escape the American customs duty ? The an- swer to this question every customs officer knows. The man who attemps to enter sugar as Hawaiian sugar at a United States port must prove by sworn and documentary testimony that his sugar is the product of Hawaii. It is not sufficient to prove that it came from Honolulu. The onus of proof is on the importer. He must show that his merchandize is entitled to bo admitted free before he can escape the payment of duty. The same rule would apply to importations from Canada into the United States, and vice versa^ under unrestricted reciprocity. Look at ou^ present Canadian tariff. We find that fish the product of Newfoundland are admitted free while fish brought from any other country must pay duty. Section 3 of the Dominion Customs Act provides that fish and other products of the fisheries shall be chargeable with and there shall be collected thereon the rates of duty set forth in the schedule attached to the Act with the following proviso : " ^Provided that the whole or part of the duties imposed by this aeotion may be remitted as respects either the United States or the Island of New> foundland, or both, upon proclaruation of the Oovemor-General-in-Cotinoil ; which may be issued whenever i^ appears to his satisfaction that the Govern- ment of the United States, or of Newfoundland, or either of them, hare made changes in their tariffs of duties imposed op -M y ssas'^fm 12 WHY NOT HAVE BECIPBOCITY ? lu iff GREAT BRITAIN DOES NOT, apparently, object to her colonies doing as they please in the ^ matter of tariff" arrangements. A commercial union has just been formed between Gape Colony and the Orange Free State, under which goods from the last mentioned country are to be admitted into the British Colony free, while similar goods brought from England must pay duty. And this arrangement has been approved by tlie British government The present Canadian customs tariff imposes an average rate of twenty-two per cent, duty upou the classes of goods imported into the Dominion, while the aver- age rate upon imports from the United States is less than fifteen per cent. Although Canada imports more from the United States than from Great Britain, the revenue collected upon Britisli goods greatly exceeds that levied upon those brought from the United States. Is this not discrimination against the mother country I The right of Canada to discriminate against Great Britain or any other country by means of her customs tariff has been insisted upon by various Canadian governments since before Confedera- tion, and admitted by the Imperial authorities. In 185J>, Sir Alexander Gait, then minister of finance, in answering the objec- tions of the British Secretary of State for the colonies, to a traiff scheme which proposed discrimination againsi. British trade, said ; " I must distinctly affirm the right of the Canadian legislature " to adjust the taxation of the people in the way they deem best, " even if it should unfortunately happen to meet the disapproval " of the Imperial Ministry. Her Majesty cannot be advised to " disallow such acts, unless her advisers are prepared to assume " the administration of the affairs of the colony, irrespective of " the views of the inhabitants." The Imperial government had to give way, and the doctrine laid down by Sir Alexander Gait has been acted upou by every Canadian government and legisla- ture during recent years. Why should i^ be otherwise ? ^e Canadians to remain forever, like ancient vestals, watching the holy fire of " loyalty ? " Are they to entertain no national ambi- i tions, and to refuse to allow any hopes of an independent Cana- dian nationality to enter their minds ? The idea is absurd. ■ When it was charged that the present Canadian protective tariff ' would prove inconsistent with British connection, the supporters of the tariff cried " so much the worse for the British connection." i Just now the Liberals of Canada are contending that Canada J should have the right to make commercial treaties with foreign nations, regardless of British interests or British influence, and : that right will have to bo conceded. WHY NOT HAVE RECIPROCITY t 19 in the 1st been B, under rlraitted it from Dpi'oved ustonis goods INTERESTS OF BOTH COUNTRIES IDENTICAL. For the benefit of the professional loyalists in Canada and the Anglophobes in the United States the question may be asked: Is Canada more of a British colony than the United States ? Did not Disraeli utter a truism when, in his place in the House of Commons in 18G3, he said : " Colonies do not cease to be.cclonies when they become independent ? " The United States maintains a tariff wall against Great Britain. So does Canada. The Amer- icans speak the English language, their system of jurisprudence is founded upon that of England ; Americans in common with British subjects claim the literature of Great Britain as a heri- tage ; the bulk of the foreign commerce of the United States is carried by British ships; over one-half of the exports of the Inited States go to Great Britain; British political issues have a greater influence upon the politics of tlie United States than upon the politics of Canada. In proof of this statement it is oniy necessary to refer to the Sackvillo West incident. Pro-British and anti-British parties exist in the United States as well as in Canada. The State legislatures feel called upon to pronounce upon the question of Home Rule for Ireland, and meetings are held in all parts of the United States, and money raised to sup- port the Home Rule party oJ Great Britain. The great ambition of American ladies seems to be to marry English noblemen, and American as well as Canadian millionaires go to England when they retire from business, and there spend the fortunes made in the United States and the Dominion. The British trade returns for 1886 show that Great Britain in that year purchased mof^ from the United States than from all her colonies put togod^r, and that the aggregate trade between the colonies, including India, and the mother country was £157,390,680 ; while the trade with the United States reached £108,425,072. In the same year Canada's trade with Great Britain only amounted to £18,304,206. And the volume of trade between Great Britain and the United States is constantly increasing All these facts go to prove the' truth of Disraeli's remark, and that the United States is very little more than a British colony yet. In fact, if the exodus of population from Canada to the southward contin- ues, the great republic may soon be spoken of as a Canadian colony. In the course of a S])ecch before quoted from. Sir Richard Cartwrighu remarked that the American people were becoming " blood of our blood and flesh of our flesh," and that the geograph- ical position of Canada made her "a hostage to the United States for the good behaviour of England." rre^ 14 WHY NOT HAVE RECIPROCITY ? •■ w ' Ui;®*-! n. Ri : I / • A PRECEDENT IN EUROPE If precedents for such an an'angeraent for unrestricted com- mercial intercourse between two countries such a.s that proposed between Canada and the United States are called for, they wil] be forthcoming. The German Zoilverein can be cited, but a case more nearly parallel can be found in the existing arrangement between Sweden and Norway. Each of these kingdoms admits the products of the other free, while imposing duties upon good.s imported from other countries. Some one may say that Sweden and Norway form one nation. That is not correct. It is true that the King of Sweaen is also the King of Norway, or vice versa, but each country maintains its own parliament, its own constitution, its own laws, its own customs tariff, its own official language, itij own currency, its own flag. The Swedish customs returns for "1885 show that the imports from Norway were 23,- 736,000 kroner, and the exports to Norway 10,311,000. There is no more danger of foreign goods finding their way into Norway as Swedish products, than there is that goods subject to duty will be smuggled in. And the difficulties of maintaining unre- stricted reciprocity of trade between Norway and Sweden are much greater than they would be if a similar arrangement was made between Canada and the United States. FRENCH-CANADIAN LOYALTY. As to the alleged devotion of the French Canadians to British interests, it is only necessary to quote from a speech delivered in the Canadian House of Commons by Hon. L. K. Masson, an ex- Minister of Militia, an ex-Lieutenant-Govemor, and a leader of the Conservative party, to show how little ground there is for taking much stock in it. In replying to the charge tha* the pro- tective tariff which his party were about to introduce woiild dis- criminate against British trade, Mr, Masson said ; ** I may tell the honorable gentleman that the Conservatives of Lower Canada are as loyal to England as they always have been, but I will add the words of Lafontaine : ' Mais avant tout soyous Oanadiens ' — (• But before •11 let us be Canadians '). This was Lafontaine's doctrine, and they followed it. The Imperial Government in its relations and connections with the col- onies has Zj^ver been exempt from those rather selfish niotivea, if such mo tives couldfoe so called, by which the mother country has wished to aggrandise herself at the expense of the colonies ; the whole colonial system is based upon this principle thut the mother country took these colonieu so as to have from them raw material for her own manufacturers. That was the object of •very central government in every country in the world with respect to their eolonios, and, it England claimed a right at times to be selfish in its desires with regard to this colony, they would not go so far in that course, but rfii f-^m mmmmmmmmmmmm WHY NOT HAVE JIECIPROCITY ? 15 good.s defend the rightii of Canada. The Imperial Qovernment having given us the right of self-government, has also conferred upon us the right to regu- late our local duties as we wish. The Oonservatives of Lower Canada do not wish to act against the interests of England, but they have the right, if they wish, to regulate the duties, irrespeotiye of England, if it is Canada's interest to do so." Mr. Masson declares that his compatriots are Canadians first and Britishers afterwards, and that they intend to support what is best for Canada, irrespective of Great Biitain's wishes and inter- ests. That is precisely the position occupied by the Canadian advocates of reciprocity. ADVANTAGES TO BOTH COUNTRIES. The advantages to be derived from complere freedom of coraraercial intercourse between the United States and Canada inu8t be obvious to any one who will take the trouble to look at the position of the two countries. The natural course of trade is from North to South. The Dominion and the United States are the natural markets each of the other. Not only would unrestricted reciprocity settle satisfactorily all outstanding disputes with regard to the fisheries, canal privileges, and export duties, and remove all sources of- irrita- tion and il-feeling between two kindred nations, but it wo''ld give an immense impetus to trade between the two countries, thus furnishing increased bueincss for railways and water- ways. Even under existing conditions the United States has a trade with Canada greater, in proportion, to the Dominion's population, than with any other country. The average Canadian buys more American products than the average man ol any other nationality on the globe. Canada's trade with the United States is nearly one-half of her entire trade with the world, and the trade of the United States with Canada is only exceeded in volume by the trade with Great Britain, Fiance and Germany. .#