RECIPROCITY. 



321 



that every receiver should be allowed 5 per cent, of the 

 first $100,000 that he received and paid out; and 2} 

 per cent, of all sums received and paid out in excess 

 of that suni. It :i!so provided that reports should be 

 made senii-annually instead of quarterly ; that the at- 

 torney-general should examine the receivers' books at 

 nee in twelve months ; and that the affairs of 

 every insolvent corporation then in the hands of a re- 

 ceiver should be closed up within one year from that 

 time unless the court should grant additional time for 

 that purpose ; that the attorney-general might, at any 

 time he deemed necessary, take proceedings for the 

 removal of a receiver and the appointment of another 

 in his stead, and any appeal should be made to the 

 general term ; that copies of all papers relating to the 

 administration of the trust should be served on .the 

 alt (irney -general ; that no receiver should pay any 

 money to any person in any action until tlie expiration 

 of eight days after a certified copy of the order had 

 been served upon the attorney-general ; that all appli- 

 cations to the court should be made in the judicial dis- 

 trict where the principal office of the corporation was 

 located to which district was changed the venue of all 

 actions pending elsewhere ; and that legal proceedings 

 in receivership cases should be preferred before all 

 else, on the court calendars, save the cases wherein 

 the plaintiffs are the people of the State. The 

 Attorney-General of New York now has a large 

 share of the responsibility ; and the courts no longer 

 decide whether the receiver has been an executor 

 or an administrator de bonis. In 1885 the law of 

 1883 was amended so that every receiver of an in- 

 surance, banking, or railroad corporation, or trust com- 

 pany, must present a report every six months to the 

 Supremo Court of the district wherein his trust is lo- 

 cated, and must file duplicates with the bank or insur- 

 ance companies respectively and with the attorney- 

 general showing all the receipts and expenses of his 

 trust. It was also provided that it should not be lawful 

 for any receiver to pay any attorney or counsel until 

 he had stated the amounts to the court as expenses 

 already incurred such expenses to be approved by the 

 court before being paid to such attorney or counsel. 

 In 188G a law was passed providing for the winding up 

 of corporations which had been dissolved by legislative 

 enactment. In 1887 it was enacted that no receiver 

 of a life-insurance company should be appointed if 

 such company had actual funds invested of a net cash 

 value equal to its liabilities and a proper reserve fund 

 on policies* nnd claims not matured. (F. O. M. ) 



RECIPROCITY, COMMERCIAL This term is used 

 to denote an arrangement between nations allowing 

 specified classes of articles to pass from one to the 

 other free of duty. By the trc.'ty between the 

 United States and Canada made in 1854, natural pro- 

 ducts of both countries, includingagricultural products, 

 animals, lumber, coal, ores, etc., were to be admitted 

 into each country free of duty, and the privilege of 

 fishing in Canadian waters was conceded to the United 

 States. This treaty expired by limitation in I860. 

 Soon afterthe expiration of the treaty all the provinces 

 of Canada were formed into a confederation known as 

 the Dominion. The new state had no especial policy 

 in regard to customs ; but the increasing expenses of 

 internal improvements compelled the Dominion to 

 seek new methods of meeting them. In 1873 what 

 was known as the Mackenzie (or liberal) government of 

 Canada favored such freedom of trade with the 

 United States as was consistent with levying customs 

 duties on articles produced or manufactured in the 

 country. The proposed treaty was upheld by the 

 Canadian government on the ground that Canadian re- 

 sources would develop so rapidly that its side of thu 

 bargain would 1m the best. It was contended that 

 Canadian manufacturer! did not dread competition 

 with those of the United States, as the Canadians had 

 the advantage of cheaper labor, cheaper machinery, 

 and cheaper materials; that the farming, shipping, 



lumbering, and railway interests'would all be benefited ; 

 and that the almost unlimited water power of Canada 

 ought to turn the scale in favor of the treaty. But 

 the Dominion Board of Trade, supported by the con- 

 servative press, strongly opposed the new treaty as 

 disadvantageous to Canadian interests, a'nd the move- 

 ment failed. 



In 1878 a revolutionary wave passed over Canada 

 and swept the Mackenzie government out of power. 

 The Macdonald government returned with authority 

 from the people to construct a protective tariff a step 

 which was at once taken. The debates in Parliament 

 at the time showed that the object of the tariff was 

 not only to increase the revenue but also to pave 

 the way for a renewal of reciprocity with the United 

 States, or still further for commercial union. The 

 fixing of the Canadian tariff brought on a discussion 

 of the subject with the United States ; and the Cana- 

 dian authorities obtained the consent of Great Britain 

 for the opening of fresh negotiations. The British 

 minister at Washington, Sir Edward Thornton, and 

 Hon. George Brown, a Dominion senator, were accred- 

 ited as joint plenipotentiaries to negotiate a treaty of 

 fisheries, commerce, and navigation with the United 

 States. The result of their labors, in conjunction 

 with Secretary Hamilton Fish, was a treaty draft which 

 was rejected by the U. S. Senate after haying been 

 approved by the governments of Great Britain, of the 

 United States, and of Canada. The negotiators on 

 the part of Canada had endeavored to make the new 

 treaty very like that of 1854, but the U. S. govern- 

 ment demanded that certain goods said to be common 

 to both countries should be included, and the British 

 negotiators acceded thereto. The list comprised arti- 

 cles imported from the United States to the amount 

 of $3,000,000 in 1 878 and paying a revenue of $500,000 

 to the Dominion. This provision was indignantly 

 commented on by a portion of the Canadian press, 

 which declared that reciprocal free trade in natural 

 products had only been obtained " by the sacrifice of 

 the manufacturing interests in addition to the fisher- 

 ies." Hon. J. A. Gartield, then in the House of 

 Representatives, declared himself, in 1880, in favor of 

 a customs-union because a reciprocity treaty would 

 always be a bone of contention between the political 

 parties, and would not be satisfactory to the whole 

 people. 



Since 1885 the discussion of commercial relations 

 with Canada has been revived ; but the question has 

 concerned a Commercial union rather than Reciproc- 

 ity. The suggestion that the relation between the 

 two countries should take the form of the Zollverein 

 has received less favor for the reason that, if such a 

 mutual arrangement were made without annexation, 

 the fact would bn apparent to all that it would be 

 much more advantageous with annexation, but neither 

 Canada nor the I'nitcd States appears to be ready to 

 take that step. The, renewed discussion culminated 

 in a bill introduced in Congress early in 1887, pro- 

 viding that as soon as the government of Canada 

 should by act of parliament permit all articles of trade 

 nnd commerce of whatever name or nature, whether 

 the product of the soil or of ^ the waters of the United 

 States, or manufactured articles, live-stock of all kinds 

 and its products, minerals and coal, the produce of the 

 mines of the United States, to enter the ports of the 

 Dominion free of duty, then all articles manufactured 

 in Canada, and all products of the soil and waters, and 

 all minerals and coal, the product of Canadian mines, 

 and all other articles of every name and description 

 produced in Canada, should be permitted to enter the 

 ports of the United States free of duty. This act 

 provided for absolute reciprocity of trade between tho 

 two countries as to all articles of whatever name or 

 nature produced in either country. This reciprocity 

 was to go into effect by the proclamation of the 

 President whenever the Canadian Parliament and gov- 

 ernment had taken similar action, and the secretary 



