RECIPROCITY (from Lat. reciprocus, alter nating, reciprocal). A tariff policy under which two or more sets of tariffs contemporaneously ex ist : a high schedule of duties for countries which have entered into no special agreement with the enacting country, and one or more lower schedules for such others as may be willing to offer corre spondingly reduced schedules in return. The reci procity system sprang up as a means of relief from the old navigation laws, and was then grad ually extended, not only to tariff duties, but to general matters of commercial privilege as well. The organization of the German Zollverein (q.v.) gave a strong stimulus to the idea of mutual free dom of exchange: and the movement thus begun gradually developed into a semi-free-trade era. which lasted until about 1870. Great Britain re pealed the corn laws during the years succeeding 1846, and in 1S60 negotiated a treaty with France containing liberal commercial concessions. This was followed by some twenty-seven other re ciprocal arrangements between the leading Euro pean States, which resulted in great freedom of exchange, and largely stimulated trade. A simi lar movement in the United States culminated in the liberal tariffs of 1846 and 1S57. Very generous treaties of reciprocity were negotiated by the United States with the German Zollverein and :Mexico, respectively (1844 and 1859), but both failed of ratification.
The first real experiment in reciprocity made by the United States is found in the Canadian treaty of 1854. Between the years 1846 and 1855, it was several times sought to secure the passage of 'concurrent legislation' by the two countries, making mutual tariff concessions. These efforts failed—partly for political reasons, but largely because of difficulties connected with the allied questions of fisheries and the navigation of the Saint Lawrence. Finally, the reciprocity treaty was negotiated, and passed by the Senate (receiving the President's signature August 5, 1S54), owing largely to personal work in Wash ington by Lord Elgin, then Governor-General of Canada. As ultimately adopted, the Canadian
treaty covered the navigation of the Saint Law rence, the fishery question. and provided for mu tual free trade between Canada and the United States in the products of the two countries. The immediate effect of the treaty was apparently to stimulate trade. Its popularity, however, received a severe blow in the crisis of 1857, which reduced both the imports and exports of the United States in the Canadian trade, but the volume of business almost immediately revived. Various complaints, however, arose against continuing under the treaty. a principal objection being that the Cana dian.: were not keeping good faith. Commission ers of the United States examining into the advis ability of the reciprocity relations made diamet rically opposite reports. Between 1860 and 1865. the question of abrogating the treaty was much discussed in Congress. The strained relations with England on account of the Alabama claims brought the question to the front and finally, in 1865, a Senate resolution terminating the agree ment was concurred in by the House. being signed by the President January 18, 1865. The relations of the United States with Canada under the treaty closed March 17 of the same year. Since that time numerous efforts have been made to renew the reciprocity trade relations between the two countries; in 1SG6 by a Canadian delegation; in 1S69 by Sir John Rose: in 1873 by George Brown and Sir Edward Thornton, and in by Hon. Robert Bond, all with no result. So also various bills and resolutions for reciprocity with Canada were tabled or voted down in Congress from time to time. Attempted amendments to tariff bills met the same fate. The most recent development in the struggle for better trade rela tions with Canada has been the appointment of the 'Joint High Commission.' which was to settle all points in dispute between the two countries, including reciprocity. Its work has thus far had no result.