This agreement, however, was only the beginning. President Taft, who recognized too late that he had antagonized the growing low-tariff sentiment in the United States by his support of the Payne-Aldrich tariff, decided to attempt a stroke for freer trade. He proposed a broad revision of trade relations with Canada. In negotiations which began at Ottawa and were concluded at Washington in January 1911, an agreement for a wide measure of reciprocal free trade was effected. It was nearly as broad as the treaty of 1854. Grain, fruit and vegetables, dairy products, live stock, fish, hewn lumber and sawn boards, and many minerals were put on the free list. Meats, flour, coal and other articles free in the earlier agreement were subjected to reduced rates, a limited number of manufactured articles were included, some of them Canadian and some of them American specialties. The agreement was to be effected, not by treaty but by concurrent legislation for an indefinite period. The Canadian Government announced that the same terms would be granted all parts of the British Empire.

After the cabinets, the legislatures. President Taft had great difficulty in securing the consent of Congress. Farmers and fishermen, stand-pat Republicans and anti-administration insurgents, opposed this sudden reversal of a traditional policy. Only by the aid of Democratic votes in a special session of Congress was the measure adopted, late in July. Meanwhile the Opposition in the Canadian parliament, after some initial hesitation, had attacked it with growing force. They resorted to the obstruction which the Liberals had practised in 1896, and compelled the Government to appeal to the country, a week after Congress had accepted the agreement.

After parliament, the people. Apparently the Government anticipated that the bargain would be welcomed by nearly all Canadians. That expectation was not without warrant. It was such a treaty as Canada had sought time and again during the last fifty years, and such as both parties would have accepted without question twenty years before. Every important leader of the Conservative party was on record as favouring such an arrangement. Yet it was received first with hesitation, then more and more freely denounced, and finally overwhelmed.

On the economic issues concerned the advocates of the agreement apparently had a good case. The farmer, the miner, the fisherman stood to gain from it, not so notably as they would have done twenty years before, but yet undoubtedly to gain. It was contended that the United States was itself a rival producer of most of the commodities in question, and that Canada would be exposed to the competition of the British Dominions and the most-favoured nations. These arguments had force, but could not balance the advantages of the arrangement, especially to the western farmer. That this gain would accrue and a large trade north and south be created, to the destruction of trade east and west, was in fact made by the opponents of the treaty the chief corner-stone of their economic argument. It was held, too, that the raw products of farm and sea and forest and mine ought not to be shipped out of the country, but ought to be kept at home as the basis of manufacturing industries. And though the arrangement scarcely touched the manufacturers, the thin end of the wedge argument had much weight with them and their workmen. It would lead, they thought, to a still wider measure of trade freedom which would expose them to the competition of American manufacturers.

But it was the political aspect of the pact that the Conservatives most emphasized. Once more, as in 1891, they declared Canadian nationality and British connection to be at stake. Reciprocity would prove the first long step towards annexation. Such was the intention, they urged, of its American upholders, a claim given some colour by President Taft's maladroit 'parting of the ways' speech and by Speaker Clark's misplacedly humorous remark, 'we are preparing to annex Canada.' And while in Canada there might be as yet few annexationists, the tendency of a vast and intimate trade north and south would be to make many. Where the treasure was, there would the heart be also. The movement for imperial preferential trade, then strong in the United Kingdom, would be for ever defeated if the American offer should be accepted. Canada must not sell her birthright for a mess of Yankee pottage.

The advocates of reciprocity denounced these arguments as the sheerest buncombe. Annexation sentiment in the United States they declared to be rapidly disappearing, and in any case it was Canada's views, not those of the United States, that mattered. Reciprocity from 1854 to 1866 had killed, not fostered, annexation sentiment in Canada. And, if the doubling and trebling of imports from the United States in recent years had not kept national and imperial sentiment from rising to flood-tide, why now should an increase of exports breed disloyalty? Canadian financiers and railway operators were entering into ever closer relations with the United States; why should the farmer be denied the same right? The reciprocity proposed in 1911, unlike the programme of twenty years earlier, did not involve discrimination against Great Britain, but in fact went along with a still greater preference to the mother country. The claim that reciprocity would kill imperial preference was meaningless in face of this actual fact. Moreover, the British tariff reformers proclaimed their intention, if Mr Chamberlain's policy prevailed, of making reciprocity treaties with foreign countries as well as preferential arrangements with the Dominions, so why should not Canada exercise the same freedom?

But elections are not won merely by such debate. The energy with which they are fought, or the weight of the interests vitally concerned, may prove more decisive than argument. And in this contest the Opposition had the far more effective fighting force and made the far stronger appeal. Mr Borden's followers fought with the eager enthusiasm which is bred of long exclusion from office, while the ministerialists—save only the veteran prime minister himself and a small band of his supporters—fought feebly, as if dulled by the satiety which comes of long possession of the loaves and fishes. Outside the party bounds the situation was the same. The western farmers were the only organized and articulate body on the side of reciprocity, while opposed to it were the powerful and well-equipped forces of the manufacturers and the closely allied transportation and financial interests. Through the press and from a thousand platforms these forces appealed to the dominant beliefs and feelings of the people. Quite effective was the appeal founded on the doctrine of protection. In twenty years Canada had become a city-dominated land, and the average city-dweller had come to believe that his interests were bound up with protection—a belief not unnatural in the absence for a decade of any radical discussion of the issue, and not to be overcome at the eleventh hour. But the patriotic appeal was still more effective. Here was a chance to express the accumulated resentment of half a century against the unneighbourly policy of the United States, now suddenly reversed. The chance could safely be seized, for Canada was prosperous beyond all precedent. 'Let well enough alone' was in itself a vote-compelling cry. In fact, 'Laurier prosperity' proved its own Nemesis. Jeshurun Ontario, having waxed fat, kicked. An American philosopher, Artemus Ward, has recorded that his patriotism was so worked up during the Civil War that he consented to send all his wife's relations to the front. Many an Ontario patriot in 1911 was prepared to sacrifice the interests of his fellow-Canadians to prove his independence of the United States. And in Quebec the working arrangement between the Conservatives and Mr Henri Bourassa and his party told heavily against the Government.

The result of the elections, which were held on the 21st of September, was the overwhelming defeat of Sir Wilfrid Laurier's Ministry. In Ontario the Liberals saved only thirteen seats out of eighty-six. In the rest of the country they had a majority, but not sufficient to reduce substantially this adverse Ontario vote. The complete returns gave 133 Conservatives to 88 Liberals. As usual, the popular vote was more equally divided than the parliamentary seats, for the Liberals secured 625,000 and the Conservatives 669,000 votes. The Liberal majority of only 5000 in Quebec, 3000 in the maritime provinces, and 20,000 in the prairie provinces was overcome by the Conservative majority of 63,000 in Ontario and 9000 in British Columbia. A fortnight later Sir Wilfrid Laurier tendered his resignation to the governor-general and Mr Borden formed his Government.