Show t I Our New Canadian Trade Agreement j I Mir 3 o i s fr i 3 t 5 p Y fi N ys y's ai 4 1 with Canada In the office of President A momentous International event was the signing of the new trade agreement Roosevelt Left to right are pictured Secretary of State Cordell Hull Prime Minister Mackenzie King and the President President President dent as they signed the pact with United States cabinet members In the background By WILLIAM C. C UTLEY N 1129 1929 we exported to Canada IN goods valued at fit From our northern neighbor we Imported imported ted fro ted worth of ot goods In 1934 our Canadian exports amount amount- amounted ed to and our Canadian imports Was this falling off ol In trade a re re- result result sult Bult of the depression Or was the depression a result of ot the falling tailing offin oft off in trade with other countries s as well well welles as es Canada of course These ques Ques- questions Questions questions are best answered by another one Which came the first the chicken or orthe orthe orthe the egg ess eg If It your business Is one not oot Immedi Immediately affected by tariffs and trade agreements and such goings on and you would answer yes to the first question ques ques- question question tion It Is 19 not likely that you approve of ot the new reciprocal trade agreement with Canada which goes gos Into effect January 1 t 1936 G If your our business Is not Dot Immediately affected and you would answer yes to the second ques ques- question question tion Uon the changes chines are you do approve If your our business Is Immediately af af- affected affected by hy the treaty your approval or disapproval Is likely to depend upon whether you yon stand to lose money or male make money by It The chances are you will find the treaty a little annoying If you are a n lumberman dairyman whisky manu mann manufacturer cattleman or with certain reservations farmer You will probably probably ably like It If you ou are a manufacturer of farm machinery electrical goods automobiles or radios a fruit citrus-fruit or cotton rower grower rower or a n magazine publisher Consumers Will Like It It You Yon are almost sure to like It It If you are ere Just a plain consumer or a n poll poli For the consumer It will mean some reduction In prices The poll poll- If he hI be he against a aln t the Roosevelt administration will find certain definite nile nite disadvantages to pounce upon pub puh publicly If he lu be he h In favor of the thC New Deal he will find certain definite ad nd- advantages advantages vantages to brag about publicly For the new nV n V pact part signed In Wash Wash- WashIng Ing on by Ity President Roosevelt and Mackenzie King ICing shortly after Canadas Canada's new premier was elected Is the very epitome of Secretary of or State fordell Cordell C nulls Hulls policy of securing reciprocal trade agreements with foreign n nations na lions lionson on the nation most basis It Itis ItIs Itis is the seventh such agreement nrc to be he- become come conic effective since we had previously previous previous- ly signed reciprocal rt agreements with Belgium nl Brazil Colombia Cuba lIhn Haiti end and Sweden It Is the first time we wp have u used ed the quota system s stem In a trade trad agreement n In an nn agreement with the United Slates under the Hull full policy a foreign nation promises s that If It gives Ives any concessions to any other nation or nations such concessions cons con's lons will auto auto- automatically heroine become effective with regard rp to the United States We reciprocate by the same promise Ry By the new pact Canada gives us mo nation favored rating Rut But In Inthe Inthe Inthe the light lIht of or the he concessions lons the United States Slates made macle on 53 fi different Items Can nn Canada Canada ada Is certainly the nation most favored ore ored by hy the agreement In the opinion of some public figures res such as Former President resident Hoover n who ho said I means still larger pr Imports of foreign n food fond I 1 presume It Is Ic I more of the abundant life life for for Canadians Secretary of Agriculture Wallace was wn not fInt long Ion In making reply to charges ps of hurting the farmer furmer The attempt which Is now being made to arouse special groups Is tie I In the main being led 1111 or Inspired by hy the same enemies I of agriculture u who lio In the tile guise of helping bet agriculture n w with fiti higher tariffs on farm products brought enactment ennel I of If the Hie Smoot wh hill bill with Its ex ex- ex ext t Industrial rates and Its se sea sequel se- se sequel quel nf of f lessened farm lann markets Canadian Concessions Included In the Canadian concessions of If I he the new treaty are special reductions or lIr abolition of duties on ISO Items Hems Ih which Canada Imports from HI fly HIMot rJ 1 Must Mot Important among mown the tile reductions reduction r fi r were 50 flU per IH r cent on agricultural ll ma mu- maV muI I I I V Vi i I. I chinery 25 to SO per cent on other machinery 25 to 50 GO per cent for meat 50 fiO per cent for grapefruit 12 to 25 23 per cent on automobiles and similar reductions for electric refrigerators washing machines and radios Canada agreed to keep on the free tree list or or- oranges oranges anges during the first four months of the year ear magazines raw row cotton and certain vegetables not staples and to lower duties on several minor manufactured products and surgical dressings Canada agreed to retire a practice that hat has been the source of ot some an an- annoyance annoyance annoyance to American merchants espe espe- especially especially especially those In cities near the border That was the use of powers under the tariff laws to place arbitrarily high hl h prices upon imported goods Further Canada will now permit her tourists to bring home worth of goods from the he United States duty free a conces- conces concesion concession concession sion ion which has set up a few howls bowls from the he dealers at home Among the Important United States concessions were a reduction of one one- third bird to one-half one In the duties on the first heavy heay beef cattle about three bree times our Import from Canada during the first nine months of 1934 1930 1933 calves es less than pounds each this quota Is about 1 per cent of the American annual calf slaughter and dairy cattle Imported each year ear a 20 per cent to 40 per cent tariff cut cuton cuton cuton on the first bushels of seed potatoes each ench year a cut of 43 per percent percent percent cent for the first gallons of cream a reduction of 50 jQ per cent In Inthe inthe the he duty on whisky aged a ed four or more years ears In the wood and a 50 m per cent cut on lumber Douglas fir and west west- western western ern hemlock were limited to oon board feet annually There were numerous additional duty reductions on comparatively unimportant prod prod- products products ranging from lacrosse sticks to pipe organs organ for tor churches Certain wood products minerals skins and sea foods were vere kept on the free list Loudest of all nil the lamentations came from the lumber Industries In the Unit United ed States Indeed union work worl workers workers ers In the timber forests fore and lumber mills of the Pacific Northwest threat threat- threatened threatened ened to strike In protests even before the terms of the agreement became mown known These Industries it t was apparent were expecting to be the hardest hit lilt and events Justified their expectations The general feeling was wag that lumber had been heen offered on the sacrificial block that conditions might ml ht be bettered for other Industries Senator McNary 01 of Oregon left Immediately for Wash ash was 1000 letters of protest a day Michigan Wisconsin and Minnesota as a. a n well as ns southern pine antI and cypress states also are affected One manu manu- manufacturer manufacturer estimated that the price of Canadian lumber would he be cut from to per 1000 hoard board feet at ata a time when the Industry Is already over Another ventured the guess J that man-hours man of em em- employment annually would be turned over o to cheaper Canadian labor South South- Southern ern lumbermen saw price reductions which give gl them the III more competition Milk Industries Complain of milk associations viewed the pact fact as disastrous To them Secre Secre-j cre lary Wallace pointed out that cream Imports are to be limited to 1 k gallons annually whereas during HI and 1920 they were gallons Potato growers I. I I Maine nine had 11 cause for alarm with the tariff on Canadian potatoes reduced r lurell from froth 00 GO cents a bushel hushel to 45 cents rents Likewise New Eng Eng- England land manufacturers of maple syrup s rup had hall cause for complaint Manufacturers of farm machinery steel glass and pe pl petroleum petroleum were Jubilant The fhe opinion of 1000 manufacturers was voiced voice In the words word of John W. W OLeary O'Leary president of the tho Machinery and anti Allied Products Institute who sail said The United States sold about 15 worth of machinery to Canada In 1934 WH a gain of 74 H per cent over 1933 as fiS compared to a n gain of only 42 per cent for Great Britain our chief competitor This was despite the great gr at competitive disadvantage of the duty of ot 30 to 35 per cent on our machinery The new v duty of 20 to 25 per peT cent and less In cases of some special ma mat machinery machinery chinery reduces the competitive e dis dis- disadvantage disadvantage advantage ad and should give substantial Impetus to machinery sales In Canada making possible proportionate re em reemployment reemployment In our capital capita goods Indus Indus- Industries Industries industries tries where an Important portion of all employment In the United States still exists Howls From Canada Too In Canada too there was some opposition opposition although h stocks sto ks In Toronto were somewhat strengthened after the an nn announcement Indicating perhaps that some of the hue and cry In both na na- nations nations was the natural reaction to be ex eX- expected eXpected expected when any kind of ot Important diplomatic step Is undertaken by a n government Canadian were of the opinion that it gained too little for Canada and too much mulch for tor forthe forthe the United States Among their favo favo- favorite favorite favorite rite objections were Its failure to secure any concessions for the cod and haddock fishing Indus Indus- Industries Industries industries tries of the maritimes Its failure to secure a market for food potatoes for all nU the provinces of eastern Canada Its failure to secure concessions for forthe forthe forthe the dairying dalr ln Industry of Ontario and Quebec Quebec- Quebec other other than a n quota on cream and cheese Its failure to do anything to assist the marketing of Canadian wheat and other grains and flour Sectional reception of the treaty In Inthe Inthe inthe the United States was varied In New England some truck farmers were pleased over concessions given by Can Can- Canada Canada ada on a few vegetables ve while potato growers were up In arms Manufacturers Manufacturers of many factory products were elated over the new market created and shippers were friendly toward the pact because the most most favored clause allows goods bound for Canadian an nn ports to enter North America through United States ports and cross the Canadian line without duty Some Sectional Opinions In Michigan and Wisconsin the agri agri- agricultural agricultural cultural and lumber bodies were con considerably cony l chagrined by the treaty's terms while automobile lle and furniture manufacturers were sure suro It t would stimulate trade and create Jobs In the corn belt the general feeling If there was one was hard to define with any degree deree of certainty Individual al nl feeling depended much on what each ench farmers farmer's specialty was us Range nan e cattle Interests for Instance did dill not like ilke the provision which would admit Cana Cana- Canadian Canadian dian dlan feeder cattle but corn growers saw some advantage anta ad e In n It t. t Seed potato growers In Minnesota were certain that the business would he be seriously affected but table tattle potato growers In Kansas saw a n better Cana Cana- Canadian Canadian dian market marlet ahead attend The Winnipeg Free Press may have struck somewhere near the truth when It said The Tile effectiveness of the trade agreement ur ement can be Judged by b the vigor of the yells ells of disapproval by which It has been greeted greet ell Meanwhile Secretary Hull huhl went right ahead with hits his plans for open- open openIng opening Ing In up United States trade and sub subsequently suby stimulating world trade by negotiating III for more treaties along the same some lines Francis B. B Sayre assistant In charge char of or treaties on foreign trade tralle estimated that there were In nil all about 2 29 I nations with whom It was possible for the United States to reach an nn agreement on un the most favored most basis A note of mystery m which will not be b ell denied up for a few weeks eels concerns George N N. Peek former adviser nd to the president on foreign forel trade President Roosevelt appointed him to make a n study of the new Canadian pact After Arter Artera a superficial examination of It he of of- offered offered the President resident his resignation e 9 Western Newspaper No Union Unto |