
205
After they came close to securing reciprocity while in power in 1874,
the Liberals in opposition continued their free trade crusade as an alter-
native to the National Policy, which was failing to stimulate external
markets for staple producers—farmers, loggers, and fi shermen—while
the protective tariff on manufactured goods added to their costs of pro-
duction. The majority of Liberals led by Edward Blake (who succeeded
Mackenzie in 1880) favored a return to the Reciprocity Treaty of 1854,
which was restricted to natural products. Even Macdonald’s Conserva-
tives agreed that such a policy of restricted reciprocity with the United
States could be complementary to the National Policy. In 1887 Mac-
donald tried unsuccessfully to use the renegotiation of the fi sheries
clauses of the Treaty of Washington as an opportunity to renew reci-
procity on the same basis as the treaty of 1854. However, if they were
interested at all, the Americans preferred either unrestricted reciproc-
ity, which involved the free exchange of manufactured goods in addi-
tion to natural products, or continental union, which would include
not only the removal of all tariff barriers but also a sharing of internal
revenue taxes and a common tariff policy against other countries. Rich-
ard Cartwright, former minister of fi nance in the Mackenzie adminis-
tration during the 1870s, was the leading proponent of continental
union within the Liberal Party. In Canada and the Canadian Question, a
political tract for the election campaign of 1891, Goldwin Smith
mounted an eloquent argument in support of continental union as the
means to open up the natural north-south trade directions, to foster the
unity of North America’s Anglo-Saxon community, and to assimilate
French Canadians. Macdonald, Blake, and other opponents countered
that continental union was a prelude to political union and the loss of
national independence.
In the general election of 1891, Wilfrid Laurier, who had succeeded
Blake as Liberal leader four years earlier, campaigned for unrestricted
reciprocity as a compromise to the positions of Blake and Cartwright.
In leading the Conservative defense of the National Policy, Macdonald
attempted to equate unrestricted reciprocity with annexation and the
breakup of the British Empire. He appealed to imperialist sentiment
with his popular campaign slogans: “The Old Flag, The Old Policy, The
Old Leader” and “A British subject I was born, and a British subject I
will die.” Among the voters, the key issue of the election pitted staple
producers, who supported the various manifestations of reciprocity,
against the manufacturers, who favored continued industrial protec-
tionism. The result was a Conservative victory by a narrow margin that
refl ected the divisions and uncertainties within the country. Three
THE CLASH OF NATIONALISMS AND THE RESURGENCE OF REGIONALISM