Indianapolis Times, Volume 45, Number 25, Indianapolis, Marion County, 9 June 1933 — Page 3

TONE 0, 1033

Tariff Sledge Hammering Helps Give U. S. and Canada Economic Headache

BY WALKER STONE Tlhim M*IT Wrlt#r WASHINGTON, Juno 9—The United states always has horn Canada's best customer. and for decsd"s Canada has Jic United State's best or second bos*—alternating with Groat Britain. Business men usually try to make their best customers even bettor ones But the United States and Canada through the years have

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poundpd each other on the head with tariffs. This tariff sledge-hammering has contributed more than a little to the economic headache now suffered in both countries. The two English-speaking nations of North America one unit, viewed from the standpoint of geography and economics. Natural trade channels cross and the border. But politics defies economies. And

along the mast peaceful and least fortified frontier in the world, Canadian and American politicians have erected barricades to commerce. Intermittently statesmen in Ottawa and Washington have talked about the necessity of halting the trend toward economic nationalism and recognizing by reciprocal tariff treaties the commercial interdependence of the two peoples.

THE INEIAXAPOLTS TIMES ”,

Today this talk in both political capitals is louder and more persistent than it has been at any time in twenty years. Whether the politicians will contrioute anything more than lip service remains to be seen. A few observers are hopeful. Others are skeptical. Frcn 1854 to 1866, the United State had what amounted to a reciprotkl trade treaty with the United Provinces of Canada. That treaty

was terminated in 1567 when the Dominion government was formed. Since 1867. repeated efforts have been made to knock down tariffs, and all have met with failure. Perhaps the inability of the ne;ehbor nations to get togetner can be explained by the coincidence that the low-tariff political parties in the two countries—the Liberals in Canada and the Democrats in the United States—have been simulta-

neouusly in power only for a short period of six month'. That was in 1896-97. when the Cleveland administration was gome out in Washington and the Laurier government was coming in in Ottawa. The nearest' approacn to establishment of a reciprocity trade agreement came in 1911. when the Re-pubiican-Taft administration negotiated a treaty with the Laurier--1 Liberal government. That treaty

was ratified by the United States senate, but it was rejected by the parliament in Canada, where the Conservatives seized upon the issue to drive Liberals from power. The election campaign in Canada that followed the signing of the 1911 treaty is a bizarre chapter in her political history. American statesmen unwittingly played into the hands of the Canadian Conservatives. President. Taft, in a message to

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the .senate, referred to the Canadian market as ' an adjunct to the American market." , Democratic House Leader Champ Clark said recklessly that he would be glad to see the dav when the Stars and Stripes will wave over all North America. Conservative spellbinders made the Canadians behve thev were voting on a question of annexation, not reciprocity. Jingoism was at a high pitch