We scarcely realize to what extent we are dependent upon the products of distant countries and climes for the comforts which we are constantly enjoying. The clothing which we wear may be from wool grown in Australia or from silk grown in France or Italy; the leather in our shoes may have come from the plains of Uraguay or Argentina; the furs that keep us warm are from the far north; the rubber that protects us from rain was the sap of a tree in Brazil; the coffee we drink was grown in Mexico or South America and the sugar and spices which we consume were grown under a tropical sun. Not only are we dependent upon the world, but in turn we contribute to the world's demand. A large portion of the beef supply of England is grown upon our great western prairies; the wheat from Dakota becomes bread in Europe; the cotton from the south clothes the peasantry of the Old World; the oil from the wells of Pennsylvania is trans-ported to distant lands and affords cheap and safe light to those who have lived heretofore in semi-darkness, while American agricultural implements, sewing machines, tram cars, clocks, watches, typewriters, electrical apparatus and rubber goods are furnished for world-wide consumption. Merchant ships carrying the products of all nations are upon every sea. They cross and re-cross, braving every danger in order that they may distribute the products of factory, field, mine and forest.

The growth of business relations between the United States and foreign countries has not been uniform during our history, nor has it kept pace with our progress in domestic affairs. We have been chiefly absorbed in the development of home industries. Now and then, under favorable conditions, such as navigation or tonnage laws our foreign trade has advanced. The past thirty years has witnessed a wonderful development in foreign commerce, and our exports during this period have almost uniformly exceeded the imports. This development has been owing to the increase in the surplus of our food products, especially breadstuffs; to the development of inventions and methods of transportation; to the increase in the volume of our manufactures; and to the policy of reciprocity which has been in force during a portion of this time. Improved methods of transportation have enabled the products of the west to reach the seaboard cities and from thence European markets at such rates as to enter into competition with similar products of other countries. Without modern appliances the large export trade in fresh meats, butter and fruits could not exist.

The foreign commerce of a nation is vitally affected by its tariff policy. If it imposes duties upon imports it thus in a measure discourages the importation of foreign merchandise in order to stimulate home production. Or it may impose duties upon exports in order to encourage their home consumption.* Both import and export duties tend to diminish the volume of foreign commerce. On the contrary, the policy of free trade tends to encourage and increase foreign commerce. England has been practically a free trade country since 1850t and her foreign commerce far surpasses that of any other nation. It should be remembered, however, that England is an export country. The limited area of the British islands compared to their manufacturing capacity, offers but a small home market for an enormous output of manufactured products. Hence what England needs is cheap raw materials brought in duty free, to be converted into finished products for world-wide sale. The United States has pursued the policy of a tariff upon imports, and has shaped this tariff not with a view of fostering foreign trade, but as a protection to home industries. The duties have been especially high upon all classes of products which are produced within the United States in order to prevent the competition of foreign countries. The enlightened policy of reciprocity has been one means of promoting foreign trade. Under this policy two nations mutually agree to admit the products of each other into their ports, either duty free, or at a reduction from the regular tariff. Congress passed an Act in 1890 under which reciprocity agreements were entered into with Cuba, Porto Rico and several Central and South American countries, the effect of which was to greatly stimulate trade with those countries, but the law was abolished, and the agreements terminated on Aug. 27, 1894, after which our trade with those countries declined. We now have reciprocity treaties in force with several European nations* and under their potent influence our foreign trade with those nations is growing apace. A bounty is a fee or percentage paid by the Government to a manufacturer for products exported, as an encouragement to an industrv. By means of this Government aid the manufacturer is enabled to sell his products in a foreign market at a lower price, and thus compete with foreign manufacturers. The opposite of a bounty is a countervailing duty, levied upon imports in order to neutralize the effects of a bounty offered by the government from which the goods were shipped. For example, Germany and several other exporting nations of Europe pay a bounty to their manufacturers on all sugar exported. Such sugar when imported into the United States has an advantage in our markets on account of the bounty, over Cuban sugar or that from our own refineries. To offset this advantage and protect other sugars in our markets, our Government may levy a countervailing duty in addition to the regular tariff.

*Our constitution expressly prohibits the laying of duties upon exports.

The only duties now under English law are a small export duty on coal imposed in 1901, and import duties on playing-cards, cocoa, coffee, chicory, dried fruits, tea, tobacco, wine and beer, spirits, liquor, cordials, and other articles manufactured of or containing spirits.

Import and Export Duties

•Under the Act of 1897, the United States made reciprocity agreements with Germany, France, Italy and Portugal, which are still in force.