Hawke's Bay Herald. WEDNESDAY, DECEMBER 1, 1901. AMERICAN RECIPROCITY.

Hawke's Bay Herald, Volume XXXVI, Issue 12019, 4 December 1901, Page 2

Hawke's Bay Herald. WEDNESDAY, DECEMBER 1, 1901. AMERICAN RECIPROCITY.

It is an odd concidence that in all parts of the world at the present moment the question of freotrado and protection is occupying public attention. In Germany the new tariff proposals are arousing the keenest hostility, and have arrayed the whole population into two I opposing forces, whoso views are absolutely beyond reconciliation, in Australia the first and most important duty of the Federal Government has been the framing of a new tariff, and we all know to our cost in this colony what important results I will follow from its final settlement. I In America, again, the question has I just been raised in the most impressive manner. For the last! speech which the late President delivered prior to his assassination was a declaration that the time had come

to revise the commercial policy of the United States. The tragic fate of the speaker has given added force to his words, and we learn that President Roosevelt has intimated that on this, as on other points, his views are the same as those held by his predecessor. It is an illustration of the irony of things that the politician who first acquired public notice as the advocate of the most thorough-going system of protection which the world had then seen, should with his last breath announce that it was necessary, in view’ of the developments of commerce to relax that system. There is a story told of a well-known English statesman, who was found by a friend iu his study surrounded by volumes of Mansard, and who explained that he had been examining his career, and was obliged to admit that it had been a little devious. Probably there is no statesman living who would not, if he told the truth, have the same story to tell. It is interesting to note the delinite proposals of Mr M'Kialey’s

programme. They included reciprocity treaties, shipping subsidies for the encouragement of a mercan--1 tile marine, direct steamship lines to new and untouched markets, an Isthmian canal, and a Pacific cable.

1 Every one of these proposals is directly aimed at the removal of certain obstacles, or the promotion of certain aids to American commercial supremacy. It is an essentially business programme, and it shows better than any amount of commentary the principles and objects which must bo the first consideration of a modern State. The day has gone by when great nations fight for purely personal reasons or direct their policy by 1 motives of family pride or empty glory. The capture of a market, the protection of an industry, those are the considerations which govern the action of Governments and Cabinets. What are the reasons which operated to produce in the minds of Mr M'Kinley and hie associates this very remarkable change of opinion ? It might at first sight be thought that the means which had been so successful in bringing about the enormous development of American commerce in recent years would also be the best for maintaining it, and securing for it further triumphs.

We are accustomed to hear in certain quarters, and especially in the American Press, statements which are evidently inspired by the belief that American commerce is steadily proceeding to overwhelmn a helpless Europe by a tremendous and triumphal force, as natural and irresistible as Niagara. It is, of course, beyond all question that America has by far the most abundant and comprehensive natural resources of any single country in the world. She has developed a variety of business men who surpass all others in enterprise and foresight. She has a laboring class superior to that of any other country and incomparable mechanical means for multiplying the power of her labor. It would indeed be difficult to prevent her with these many and important advantages from becoming in the course of time the leading industrial community in the world

But nothing ia more certain than that aho haa a long way to go before she can claim that position. In spite of the keen competition of recent years Great Britain still keeps the load in the race for supremacy, and even Germany is, from a manufacturing point of view, considerably in advance of the United States. When we read the statistics of American trade we are apt to place the enormous sum total to the credit of the manufacturer. | But nothing could be farther removed from facts of the case The bulk of the American export trade is composed not of manufactured articles but of raw produce, and especially foodstuffs. Heraarkable as has been the enormous growth in American industry the growth of

the production of meat and corn has been even more remarkable, and it is the almost limitless demand for these foodstuffs in several of the countries of the old world, which is largely responsible for the prosperity of the States. In 1900, for example, the export of the Union consisted of agricultural products ISO millions; miscellaneous products, mostly raw material, 20 millions ; manufactories, 88 millions. In other words, the export of food and raw material was considerably more than two-thirds of the total export. It is quite true that the increase in American manufactures has been very wonderful. In the last ten years it has risen from 33 millions

to 88 millions of pounds. But this increase lias to be discounted in several respects. In the first place there has been a considerable rise in price of most of the goods in this category ; and secondly, in the last two years, in which the increase was more marked than at any previous period, tho American market was called upon to meet a demand which England and Germany were too prosperous to supply. We are accustomed to hear every now and again a chorus of dissatisfaction when an American firm secures a contract for

bridge building or locomotive construction. But nothing is more certain than that the English trade has been for the last few years working up to the very topmost limit of production. It is, of course, a pity that some of the superfluous English capital which is helping to build up the industries of other countries was not employed at

I homo. It is perhaps one of the most serious indications of deI creasing capacity that the capitalist in England, unlike his American rival, too often stands aloof from I trade, and prefers to lire a life of I idleness while his money is invested I in gilt-edged securities of one kind lor another. But apart from that aspect of the case there is the undoubted fact that the English iron I trade is compelled to refuse orders I because it has more than it can I undertake already. What will I happen to America if this period of I prosperity passes away. It ia eviJ dent that President M’Kinloy and I his advisers realised that as yet the I States have not begun to touch the I markets of Europe, and could not do so under present conditions. The I protective tariff which fostered American industry in its early I stages has now become a positive hindrance to its further development. If Americans are to bo allowed to enter the markets of the Old World they must in turn open their markets to European trade. Fortunately for the States there is no agricultural class to protect as in the case of England and Germany, and consequently reciprocity is not surrounded with the difficulties which rendered the subject so thorny in the European world. We may be sure that no part of President Ifoosevelt’s policy will be watched with such interest as that relating to commercial questions such as this. ;