The Wanganui Herald. [PUBLISHED DAILY.] TUESDAY, JANUARY 17, 1911. CANADA AND THE UNITED STATES.

Wanganui Herald, Volume XXXXVI, Issue 13277, 17 January 1911, Page 4

The Wanganui Herald. [PUBLISHED DAILY.] TUESDAY, JANUARY 17, 1911. CANADA AND THE UNITED STATES.

Sir Wilfrid Laurierj, replying to Canadian manufacturers,' declared his firm belief that a reciprocity agreement with the United States would not injure any Canadian interest. The above was the substance of an Ottawa cable published in last evening’s issue, and it is of the very greatest significance. For some time past negotiations, instituted at Washington, have been proceeding between the United States and Canada with a view to arranging a reciprocity treaty, and there appears to bo every prospect of‘an agreement being arrived at. The news, wo have said, is of great significance —significant in that the United States first approached Canada. on the subject, and significant because it will have an important bearing on trade relations * with the Mother Country. In a series of articles published in the London Daily Telegraph when .Mr, Joseph Chamberlain was engaged in the great fiscal fight, that great. Imperial statesman warned Britain that if she ehotild refuse; Imperial reciprocity the time'would come when the colonies v ould make commercial treaties with other foreign countries, to* the detriment of British, trade. Concerning Canada he said:— . “When the Ottawa Government set their \great example, our commerce with British North America seemed likely to be driven out of the field by United States competition. Since the initiation of the preference policy, bur exports to Canada Lave nearly doubled. If Cafaada should withdraw her present concession owing to odr continued refusal to reciprocate, the United States, standing at the door of the 'Dbmiuion market as she does, would wipe bpt that trade. With the further tariff reduction‘'that Canada, now at the beginning of immense developments, would be willing to give in return for some advantage, however slight, upon this side, it is certain that in a very few years she would be.a 'better customer than the United States, , and no less so that in a couple of decides ,she would be a better customer than Germany. Our whole industrial future depends upon this Question, and the pre'ferentjal .position■ of our trade with the boibnics may prove our guarantee against Airierican \ trusts or the formidable and growing industrial advantages that Germany findg in tlie numerical preponderance of:her population. There is an issue to be faced.’We may carry what Free Trade or other phylacteries, we please upon our foreheads, but do not let us'wear them across oiir eyes;’’ - - Mr Chamberlain's predictions are being verified. Britain refuses to alter her fiscal system. aiid Canada is enterlng into reciprocal rrratigements with i other coun- ! tries. Already she has made a commercial

treaty with Frauce, and very soon a similar understanding with'the United States will be arrived ait, as a result of wliich it is almost certain Britain will lose a large part of the fast increasing trade of the great Dominion, At the present time the commerce of Canada per head of population is, with the exception of England, the greatest in the world, her annual turnover representing ,£lB 10s per head, as against the average of £7 10s per head for the -United, States. In ten years—between and , 1908—Canada's commerce has increased by over 88 per cent., while that of the United States has increased by only 55 per cent., and Canada ir adding to her population at the rate of 250,000 a year, irrespective of the natural increase by births. The fact that American capital to the extent of £50,000,000 is invested in Canada is also a strong lever in influencing reciprocal relations. The fact, too, that the proposal emanated from the United States goes to prove that that country will not be the loser by any arrangement arrived at. Tins would undoubtedly be the position if, for instance both countries admitted wheat duty free. Canadian wheat and flour are superior to American, and bring higher prices in London. It is contended that if the duty were removed Canada would lose the identity of her more valuable product; while, if Canadian grain were admitted to the States duty free, much of it would be shipped from American ports, and thus American railways and elevators and steamers would divert from Canada a large amount of the wealth that now goes to employ Canadian labour and pay canal and harbour dues. Sir Wilfrid Lanrier, however, is credited with having expressed -the opinion that a reciprocity agreement with the United Stales weald not injure Canadian, interests, and he should know the position. From the Canadian point of view, therefore, there need lie no cause for alarm, but jt is quite another question -when considered in its Imperial aspect. It would be most regrettable if Britain-lost her trade With Canada. ,