The Dominion TUESDAY, JUNE 18, 1929. TARIFF WAR IN NORTH AMERICA

Dominion, Volume 22, Issue 224, 18 June 1929, Page 10

The Dominion TUESDAY, JUNE 18, 1929. TARIFF WAR IN NORTH AMERICA

It is reported that the Liberal Government' in Canada proposes to answer the United States Tariff increases by a. declaration of free trade within the Empire. If that is the case it will constitute a very significant departure from Liberal policy. . . , In April last it was prophesied that if the tariff revision undertaken by the new Congress increased duties to a point where they would constitute, as the schedules proposed by the Farm Bureau Federation would do, a virtual ban upon the exportation of Canadian farm products to the United States, great resentment would probably follow in Canada. The new Tariff reflects to some extent the influence of the American rural interests to be benefited by the Farm Relief Bill- ' According to a London Tunes correspondent, the Canadian Liberal Party is traditionally the low tariff party, anxious to cultivate close commercial relations with the United States. Twice in its history, in 1891 and 1911, it has suffered political defeat in the cause of reciprocal treaties. If it accepted the new American Tariff /without some kind of protest and retaliation it might risk yet another reverse at the hands of the electors. , ... The Canadian Conservatives, under Mr. Bennett, anticipating that a Republican win in the United States elections would probably mean tariff revision with an upward tendency, had hopes of reconstructing their political fortunes by attacking the Liberals .for. the laxity of their fiscal policy, supporting their campaign with statistics showing a rising figure of imports, chiefly from the United States. During the first eight months of last year the import figures jumped over sixteen millions sterling in value over the amount for the corresponding period of the previous' year,, the United States being responsible for thirteen millions of the gain, or about 80 per cent. On the same basis of comparison Canadian exports to America showed an increase of something over two millions sterling. The balance qf trade between the two countries is strongly against Canada. There is, therefore, a great deal to be said for the Cohservative Party’s contention that the fiscal policy of the Liberals is against tne interests of the Dominion. A typical expression of the Conservative point of view is the editorial observation of the Ottawa Journal that “when a nation like the United States, our greatest commercial competitor, deliberately, pursues a policy designed to bar out our agricultural products from its markets, then there is but one sensible, logical, and manly course left open to this country. It is to fight the United States with its own weapons. Anything less is treason to ourselves.” From the Conservative point of view the adoption by the Liberals of a policy of free trade within the Empire as a counter to the United States Tariff probably would not be considered an adequate or effective rejoinder. Much would depend upon the ability of the Liberals to educate the country to buy British goods only. A nation-wide response to such an appeal would certainty have an impressive effect, and would probably be less provocative than a system of retaliatory duties.