Reciprocity

treaties, sugar, president, bill, treaty, cuban, senate, cuba, tariff and session

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The accession of President Cleveland to office for the second time (1893) was the signal for an effort to reduce the tariff. A bill introduced by William L. Wilson for this purpose retained raw sugar on the free list as well as coffee, tea, and hides, and reduced the bounty to domestic grow ers. In the Senate, however, the tariff on raw sugar was restored. it had not been intended by Mr. Wilson to interfere with the existing reci procity treaties, although lie did intend to repeal the section granting power to impose retaliatory duties. The re-imposition of the sugar tariff. however, ipso facto abrogated the treaties. and protests were filed by the representatives of Ger many and Austria, while complaints were made by Brazil, Guatemala, Nicaragua, Costa Rica. and Santo Domingo. Trade, however. does not appear to have been materially affected by the abroga tion of the reciprocity treaties, save in one or two unimportant eases. In some instances an im provement in trade followed. One of the first acts of the Republicans, as they gradually re gained power after the passage of the Wilson bill. was to announce their allegiance to reci procity as a policy. A crop of bills and resolu tions on the subject came up in the first session of the Fifty-fourth Congress and were referred to the House Committee on Ways and Means.

The Republican victory of 1S90 was interpreted as a verdict in favor of higher tariff duties and of reciprocity treaties. A bill providing for both had been drafted, and was early introduced, by Mr. Dingley. In this bill as first presented. reci procity. like that of the McKinley Act, was con templated. The original draft offered moderate reductions of duty upon various commodities, but while the bill was under debate an amendment was offered authorizing the President to negotiate reciprocity treaties which should later he ratified by the Senate. As finally passed. the act thus authorized the Executive to conclude treaties based upon a few unimportant commodities and to negotiate such other reciprocity treaties as he might deem appropriate for submission to the Senate. President McKinley, under this act, ap pointed Hon. John A. Kasson special commission er for the negotiation of reciprocity treaties. Treaties were negotiated and proclaimed with France, Portugal. Germany, and Italy. Later, an arrangement with Switzerland was executed. No agreements with South American countries were entered into. The treaties with the European countries mentioned gave us favorable treatment for a few agricultural products. oils. and some machinery. These reciprocity treaties are the only ones now in operation. Mr. liasson. however, negotiated treaties with various coun tries under the clauses of the Dingley Act, au thorizing the President to secure such agreements as lie might deem hest for submission to the Sen ate. These treaties' included treaties with France, Great Britain on behalf of 13arba does. British Guiana, Turks and Caicos Islands, Jamaica, and Bermuda, Denmark for Saint Croix. and with Ecuador, Nicaragua, and Santo Domingo. These had nearly all been sent to the Senate by the end of 1899. They were coldly received and referred to the Foreign Rela tions Committee. The treaties with South Amer ican countries were chiefly concerned from our side with reductions of duty on cane sugar and tropical fruits, wool. and a few other products, that with France made some concessions on knit goods. bric-a-brac. cheap jewelry, cutlery, and similar small articles. None of them was seri ously discussed except that with France, and even in that case, so loud a protest was raised by manufacturers who conceived their interests to be attacked that the treaty was pigeonholed. It was, however, very generally conceded that the terms of this agreement were unexceptionable. A general reeiproc•ity discussion began in the news papers. and protectionists displayed a strong dis position to repudiate the whole reciprocity policy.

It was more and more felt that clanger inhered in the discussion of such treaties, because of the probability that they would make a breach in the protection system which might lead to too general tariff revision. This opinion was distinctly voiced in the so-called 'reciprocity convention' of nianufac•turers, which met in Washington in Oc tober. 1901. President McKinley, however, seemed inclined to recede from his advanced protectionist position, and in a noteworthy speech at the Buf falo Exposition. just prior to his assassination, in September, 1901. had taken strong ground for reciprocity. This gave a factitious impetus to the reciprocity movement which ultimately concen trated its strength in an effort to secure reci procity with Cuba.

No treaty with Cuba had been negotiated by Mr. Kasson. This was due to the fact that the war and subsequent negotiations with Spain lasted during the time that his reciprocity nego tiations with the various countries were in prog ress. After the United States bad assumed con trol of Cuba, it imposed upon the constitutional convention of the Cubans the so-called Platt Amendment. which was passed, after much oppo sition. partly on the strength of an alleged prom ise made by President McKinley to a delegation of Cubans that. should the amendment be ac cepted. he would secure a large tariff reduction for Cuban sugar exported to the United States. President Roosevelt attempted to fulfill this sup posed promise by urging Cuban reciprocity upon Congress at the session 1901-02. A bill provid ing for a mutual 20 per cent. reduction of duties on Cuban and American products was introduced in the House of Representatives, but met with strong opposition from those representing beet sugar interests, which had sprung into promi nence subsequent to 1S90. These men charged that the advocates of reciprocity with Cuba were playing into the hand: of the refining combina tion, which, it was said, had bought largely of Cuban lands and was seeking to secure cheap raw material through reciprocity. As a compromise it was proposed to grant the desired reduction:. provided that the protection accorded under the Dingley Act to the process of refining (sugar 'differential') should be revoked. Such an amend ment was incorporated into the reciprocity hill and it was passed by the Douse. The Senate. however, objected to the amendment and the bill was killed in committee. The autumn elec tions (1902) strengthened the Administration. During the recess a reciprocity treaty was nego tiated with Cuba and placed before thee Senate at the session 1902-03. Although nothing was then done. a special session of the Senate in the spring of 1903 passed the Cuban treaty. In it original form, it secured important reductions on American agricultural and manufactured prod nets exported to Cuba in return for the conces sion of 20 per cent. on Cuban imports to the United States. hut the beet-sugar interests con trived to have it amended by a clause providing that no should be granted to any but Cuban sugar during the life of the treaty. This stipulation necessarily implied the destruction of all prospect of passing the other treaties nego tiated by Mr. Kasson with South American coun tries, inasmuch as these were largely based on sugar. Meantime, Secretary flay had negotiated (October-November. 1902) a reciprocity treaty with Newfoundland whereby certain of our products were to be admitted to that colony in exchange for bait privileges for our fishing ves sels in Newfoundland ports. This treaty was pigeonholed during the session 1902-03. owing to the influence el New England fishing interests. the 1902-03 all LID strong agitation for reciprocity Leith Canada sprang up in the Northwest and in New England. This was due to the need for cheap lumber. ores. and coal the northern boundary of the United States.

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