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two Canadian; representatives refused to sign the award and denounced it as unjudicial and unwarranted。
The decision set Canada aflame。 Lord Alverstone was denounced in unmeasured terms。 From Atlantic to Pacific the charge was echoed that once more the interests of Canada had been sacrificed by Britain on the altar of Anglo…American friendship。 The outburst was not understood abroad。 It was not; as United States opinion imagined; merely childish petulance or the whining of a poor loser。 It was against Great Britain; not against the United States; that the criticism was directed。 It was not the decision; but the way in which it was made; that roused deep anger。 The decision on the main issue; that the line ran back of even the deepest inlets and barred Canada from a single harbor; though unwelcome; was accepted as a judicial verdict and has since been little questioned。 The finding that the boundary should follow certain mountains behind those Canada urged; but short of the ten league line; was attacked by the Canadian representatives as a compromise; and its judicial character is certainly open to some doubt。 But it was on the third finding that the thunders broke。 The United States had contended that the Portland Channel of the treaty makers ran south of four islands which lay east of Prince of Wales Island; and Canada that it ran north of these islands。 Lord Alverstone; after joining in a judgment with the Canadian commissioners that it ran north; suddenly; without any conference with them; and; as the wording of the award showed; by agreement with the United States representatives; announced that it ran where no one had ever suggested it could run; north of two and south of two; thus dividing the land in dispute。 The islands were of little importance even strategically; but the incontrovertible evidence that instead of a judicial finding a political compromise had been effected was held of much importance。 After a time the storm died down; but it revealed one unmistakable fact: Canadian nationalism was growing fully as fast as Canadian imperialism。
The relations between Canada and the United States now came to show the effect of increasingly close business connections。 The northward trek of tens of thousands of American farmers was under way。 United States capitalists began to invest heavily in farm and timber lands。 Factory after factory opened a Canadian branch。 Ten years later these investments exceeded six hundred millions。 In the West; James J。 Hill was planning the expansion of the Great Northern system throughout the prairie provinces and was securing an interest in the great Crow's Nest Pass coal fields。 Tourist travel multiplied。 The two peoples came to know each other better than ever before; and with knowledge many prejudices and misunderstandings vanished。 Canada's growing prosperity did not merely bring greater individual intercourse; it made the United States as a whole less patronizing in its dealings with its neighbor and Canada less querulous and thin…skinned。
In this more favorable temper many old issues were cleared off the slate。 The northeastern fisheries question; revived by a conflict between Newfoundland and the United States as to treaty privileges; was referred to the Hague Court in 1909。 The verdict of the arbitrators recognized a measure of right in the contentions of both sides。 A detailed settlement was prescribed which was accepted without demur in the United States; Newfoundland; and Canada alike。 Pelagic sealing in the North Pacific was barred in 1911 by an international agreement between the United States; Great Britain; Japan; and Russia。 Less success attended the attempt to arrange joint action to regulate and conserve the fisheries of the Great Lakes and the salmon fisheries of the Pacific; for the treaty drawn up in 1911 by the experts from both countries failed to pass the United States Senate。
But the most striking development of the decade was the businesslike and neighborly solution found for the settlement of the boundary waters controversy。 The growing demands for the use of streams such as the Niagara; the St。 Lawrence; and the Sault for power purposes; and of western border rivers for irrigation schemes; made it essential to take joint action to reconcile not merely the conflicting claims from the opposite sides of the border but the conflicting claims of power and navigation and other interests in each country。 In 1905 a temporary waterways commission was appointed; and four years later the Boundary Waters Treaty provided for the establishment of a permanent Joint High Commission; consisting of three representatives from each country; and with authority over all cases of use; obstruction; or diversion of border waters。 Individual citizens of either country were allowed to present their case directly before the Commission; an innovation in international practice。 Still more significant of the new spirit was the inclusion in this treaty of a clause providing for reference to the Commission; with the consent of the United States Senate and the Dominion Cabinet; of any matter whatever at issue between the two countries。 With little discussion and as a matter of course; the two democracies; in the closing years of a full century of peace; thus made provision for the sane and friendly settlement of future line…fence disputes。
The chief barrier to good relations was the customs tariff。 Protectionism; and the attitude of which it was born and which it bred in turn; was still firmly entrenched in both countries。 Tariff bars; it is true; had not been able to prevent the rapid growth of trade; imports from the United States to Canada had grown especially fast and Canada now ranked third in the list of the Republic's customers。 Yet in many ways the tariff hindered free intercourse。 Though every dictate of self…interest and good sense demanded a reduction of duties; Canada would not and did not take the initiative。 Time and again she had sought reciprocity; only to have her proposals rejected; often with contemptuous indifference。 When Sir Wilfrid Laurier announced in 1900 that there would be no more pilgrimages to Washington; he voiced the almost unanimous opinion of a people whose pride had been hurt by repeated rebuffs。
Meanwhile protectionist sentiment had grown stronger in Canada。 The opening of the West had given an expanding market for eastern factories and had seemingly justified the National Policy。 The Liberals; the traditional upholders of freer trade; after some initial redemptions of their pledges; had compromised with the manufacturing interests。 The Conservatives; still more protectionist in temper; voiced in Parliament little criticism of this policy; and the free trade elements among the farmers were as yet unorganized and inarticulate。 Signs of this protectionist revival; which had in it; as in the seventies; an element of nationalism; were many。 A four…story tariff was erected。 The lowest rates were those granted the United Kingdom; then came the intermediate tariff; for the products of countries giving Canada special terms; next the general tariff; and; finally; the surtax for use against powers discriminating in any special degree against the Dominion。 The provinces one by one forbade the export of pulp wood cut on Crown Lands; in order to assure its manufacture into wood pulp or paper in Canada。 The Dominion in 1907 secured the abrogation of the postal convention made with the United States in 1875 providing for the reciprocal free distribution of second class mail matter originating in the other country。 This step was taken at the instance of Canadian manufacturers; alarmed at the effect of the advertising pages of United States magazines in directing trade across the line。 Yet even with such developments; the Canadian tariff remained lower than its neighbor's。
In the United States the tendency was in the other direction。 With the growth of cities; the interests of the consumers of foods outweighed the influence of the producers。 Manufacturers in many cases had reached the export stage; where foreign markets; cheap food; and cheap raw materials were more necessary than a protected home market。 The 〃muckrakers〃 were at the height of their activity; and the tariff; as one instrument of corruption and privilege; was suffering with the popular condemnation of all big interests。 United States newspapers were eager for free wood pulp and cheaper paper; just as Canadian newspapers defended the policy of checking export。 It was not surprising; therefore; that reciprocity with Canada; as one means of increasing trade and reducing the tariff; took on new popularity。 New England was the chief seat of the movement; with Henry M。 Whitney and Eugene N。 Foss as its most persistent advocates。 Detroit; Chicago; St。 Paul; and other border cities were also active。
Official action soon followed this unofficial campaign。 Curiously enough; it came as an unexpected by…product of a further experiment in protection; the Payne…Aldrich tariff。 For the first time in the experience of the United States this tariff incorporated the principle of minimum and maximum schedules。 The maximum rates; fixed at twenty…five per cent ad valorem above the normal or minimum rates; were to be enforc