would benefit consumer and producer alike "; Robert Sellar of Huntingdon, Que., made an eloquent appeal of a general character for the farmer; R. McKenzie of the Grain Growers Guide read a paper or Memorial on the advantages of Free-trade and estimated that, if all the requests made were granted, the Government's loss of revenue would be $7,500,000. He also urged a future policy of Free-trade with Britain and presented this argument. According to the last Census there were agricultural implements manufactured in Canada to the value of $12,835,745 of which $2,342,826 worth were exported, leaving for home consumption $10,492,919. There were imported that year $1,593,914 worth of implements on which the Government collected a duty to the extent of 20 per cent. or $318,782. "It is now conceded that the manufacturer adds to the selling price of his commodity the total amount of the protection granted him by the customs duty. The farmers of Canada thus paid to the Government that year, $318,782 and to the manufacturers of farming implements $2,098,383." This point was also developed in connection with leather, cement, woollens, cottons and cutlery as to all of which a total payment of $989,158 to the Government was stated with a collateral payment of $12,277,146 into the treasury of the manufacturers. The further conclusion was pressed that upon the total selling-price of Canadian manufactures amounting in 1905 to $706,000,000 "a tribute was collected" from the consumers of $190,000,000. The exact terms of the Delegation's fiscal requests were as follows: 1. That we strongly favour reciprocal free trade between Canada and the United States in all horticultural, fuel, agricultural, and animal products, spraying materials, fertilizers, illuminating, fuel and lubricating oils, cement, fish and lumber. 2. Reciprocal free trade between the two countries in all agricultural implements, machinery, vehicles and parts of each of these; and, in the event of a favourable arrangement being reached, it be carried into effect through the independent action of the respective Governments rather than by the hard and fast requirements of a treaty. 3. We also favour the principle of the British preferential tariff, and urge an immediate lowering of the duties on all British goods to one-half the rates charged under the general tariff schedule, whatever that may be; and that any trade advantages given the United States in reciprocal trade relations be extended to Great Britain. 4. For such further gradual reduction of the remaining preferential tariff as will ensure the establishment of complete free trade between Canada and the Motherland within ten years. 5. That the farmers of this country are willing to face direct taxation, in such form as may be advisable, to make up the revenue required under new tariff conditions. Sir Wilfrid Laurier then addressed the Delegation. He expressed some surprise at receiving Eastern farmers as well as those from the West, whom he had expected to see and, after saying that Westerners were more radical in their views than the rest of Canada, proceeded as follows: "You are in favour, as I under stand, of the Government ownership and operation of all public utilities of railways, abattoirs and of elevators. As to this, I have nothing to say at present. The idea may, perhaps, be a good one. I understand that you have started a campaign of education and, perhaps, I may be the first to be educated in that respect, because, up to this time, I have not been an absolutely ardent supporter of Government ownership and operation of all public utilities. To Government ownership I may be persuaded; to Government operation I may be persuaded also; but with greater difficulty. In this I am a man of the East." In the matter of Terminal Elevators he expressed agreement, in principle, with the Delegation, recognized the existence of a grievance, pointed out, however, that the root of the trouble lay deeper than local elevators-depended in fact upon the greater question of loading at Port Arthur or Fort William upon ships going straight through to Liverpool. This was the problem the Government was trying to solve. As to the Hudson's Bay Railway it would be constructed. "Government ownership is not altogether in my line; Government operation is a matter as to which we shall give all due weight to your representations." Reciprocity was dealt with by the Premier at some length. He did not think, however, that if the agricultural wealth spoken of by the Western Delegates was $300,000,000 that the farmer was doing at all badly. The Government wanted better commercial relations with the United States, they were negotiating with that object in view, they believed that more markets for natural products would be immensely beneficial. But "any change in our trade relations with regard to manufactured products is a more difficult matter." He also declared that whatever might be done with the United States "nothing we do shall in any way impair or affect the British preference. That remains a cardinal feature of our policy." The Premier's reply was, of course, somewhat vague; the full expectations of enthusiastic men from the Western prairies were not instantly realized or even assured; the criticism and alarm of many other interests in Canada was very real and obvious; the feeling of the politicians in both parties was kept carefully veiled. But the leaders of the Delegation professed satisfaction and Mr. E. J. Fream declared that they had started a "new Nationalism" which would send its echoes around the world. Press opinions were guarded. The Toronto Globe of Dec. 16th said: "The movement of the Western farmers and their alliance with their friends of Ontario and the East, to secure Tariff reductions, cannot be brushed aside lightly. The growth. of the West is so rapid that it will certainly hold the balance of power in the next Parliament. At all events, in a dozen years, which is a very short span in the history of a nation, the West will be in a position to dictate the fiscal policy of the Dominion. To ignore it even now would be folly." The St. John Standard (Cons.) pointed out that the Memorial arguments as to tribute paid to manufacturers, &c., were the same as those used in the Eighties by Sir Richard Cartwright and the Liberals and that, carried a little further, they would mean that Canada's lucky manufacturers-about 1,000 in number-had netted nearly $3,000,000 each, over and above profits, in the past 15 years! Other replies to the Delegation came rapidly. It was said they only represented 25 per cent of the Western farmers; that their fiscal proposals meant diverting trade from Britain to the States; that the movement was of a class character similar to and influenced by agricultural agitations in the United States under very different general conditions; that speculation in Western wheat had disturbed prices there and had created a feverish unrest which was thus finding political expression; that there was in the movement a dangerous tendency toward convincing the Western farmer that his interests lay not with Eastern Canada, or the British Empire, but with the Western States to the South. Following this great gathering the Leaders of the Delegation had further conferences with Sir Wilfrid Laurier and E. A. Partridge of Sintaluta, Sask., addressed the Canadian Clubs at Ottawa and Toronto on the questions raised by the Farmers. Against their view an able address was delivered on Dec. 29 by Mr. T. A. Russell of the Toronto Cycle and Motor Company before the Canadian Club, Toronto. It was the counter-blast of the Canadian Manufacturers Association. Mr. Russell claimed that these Western farmers seemed to ignore everyone but themselves; that Canada had become united, prosperous and strong under a policy of moderate protection; that the present movement was controlled, in the main, by men who were "new Canadians," unacquainted with the history and aims of Canada, the principles of Canadian nationality, the aspirations of British subjects; that these men of the West had come into a rich and easy heritage won and held by a century of Canadian struggle, sufferings, privations, taxation and development in the East; that the complaints were made by farmers who were admittedly rich and prosperous in their own persons. Mr. Russell pointed out that Canada was unfairly treated and always had been by the United States. "For the past ten years our purchases from the United States were $1,600,000,000; their purchases from us $800,000,000. They are twelve times. greater in population. In other words our purchases from the United States were $30 per head; theirs from us $1.10 per head. The United States average tariff on all goods, dutiable and free, is 24 per cent.; ours 16 per cent. Theirs on dutiable goods 42 per cent.; ours 27 per cent." He claimed that Canada's natural resources would be wasted instead of conserved; that its seaports would be sacrificed to those of New York, Boston and 66 Portland; that indirect taxation by duties bore more lightly on farmers than on any other class because they produced more of what they needed; that direct taxation would be correspondingly heavy and that the farmers were doing well and might easily do worse. Our Western country is being filled up as fast as we can assimilate the additions; railways are being constructed, our factories are busy, our country's credit never stood so high. And what of the farmer? In the West he has grown rich in a decade; in the Niagara Peninsula his land values have increased tenfold; throughout Canada he gets 50 per cent. more for his grain and fodder than he did a decade ago; 48 per cent. more for his meat, and 35 per cent. more for his dairy produce and this at a time when the cost of manufactured goods has, as a whole, remained stationary or decreased. Investigation shows that a fixed amount of farm products will buy 50 per cent. more of general manufactured goods than twenty years ago." The speaker dealt also with the value of the Home market. "Why, the market value of the grain crop of Ontario alone last year was $168,000,000 or $54,000,000 more than the farm exports of the whole of Canada and this takes no account of the animals and their produce, dairy products or fruit. As a matter of fact, Ontario's farmers last year produced 211⁄2 times in value as much as Canada as a whole exported in agricultural products. At the time of the last Census the total value of farm produce in Canada was $365,000,000. Our exports of farm products were $80,000,000. In other words we consumed in this 'mythical' Home market 80 per cent. of all we produced." The Canadian Association Associated with this important incident and Manufacturers with the general Reciprocity discussion there was a revived interest in fiscal matters during the year caused not only by these developments but by the enormous increase in the cost of living. In the Commons Mr. Michael Clark of Red Deer made several straight Free-trade speeches; in Ontario the Dominion Grange and its Master, E. C. Drury, inaugurated and carried on a vigorous campaign for lower duties, larger agricultural influence in public affairs and immunity from Imperial military and naval burdens; at various meetings Mr. Drury concluded that "taking the direct and indirect burdens of the Tariff together I believe they amount to not less than $300 a year on the average hundred-acre farm. Three hundred dollars at five per cent. represents interest on $6,000. In other words the average hundred-acre farm is depreciated in value to the extent of $6,000 by reason of the Tariff." In the Commons during March Mr. Fielding defended the Bounties on iron and steel but declared that the time was coming for their abrogation; from Sydney and other industrial centres came vigorous protests against this policy; from Western fruit-sellers (retail and wholesale) came a petition in April for free fruit at certain times in the year and describing it as a luxury when it should be and was a necessity; from fruitgrowers in the East and market-gardeners in the West came a storm of protests against any such policy; in the Toronto Globe on Apl. 19 appeared a vigorous editorial endorsement of Cobden Club activities and Free-trade principles. On May 13 a Deputation waited upon Hon. Mr. Fielding and asked on behalf of sheep-raisers and wool manufacturers, for a duty of 5 cents a pound on raw wool and a corresponding increase on woollen manufactures which now had duties averaging 30 per cent.; at Winnipeg a Free-trade League was organized on June 8th and on the 10th it was announced at Ottawa that, by Order-in-Council, a number of minor articles used in manufacture had been placed on the Free list and slight reductions allowed in other things classed as raw materials; in reply to inquiries from the Grain Growers' Guide* in July Thomas McNutt, M.P., declared himself in favour of "a low tariff, especially on agricultural implements "; W. W. Ruttan, M.P., endorsed "a reduction of the tariff"; J. G. Turriff, M.P., said he had always favoured lower duties and would continue to work for the reduction of the tariff; G. E. McCraney, M.P., desired a reduction of the tariff; R. S. Lake, M.P., declared the general average of the tariff to be "much too high" and that "a large reduction of duties could be made and still leave the manufacturers a considerable margin." Mr. Lake was the only Conservative in this list. The Premier's tour of the West followed this period with its insistent refrain of lower duties and its succeeding Delegation at Ottawa. In August Mr. F. L. Fowke (Lib.) of South Ontario told the Toronto Sun that he considered Canada's tariff one for revenue and did not believe in Free-trade as it is in England; Lord Grey's visit to the Lake Superior Corporation's plant at the Sault drew attention to that immense industry with its distilling plant, shingle factory, saw mills, coke oven, docks, blast furnaces, gaswashing plant, gas engine, power plant, open hearth and Bessemer departments, rail, blooming, finishing and merchant mills, iron works, foundry and machine shop, pulp and paper mills, Power works, iron mines and affiliated railways and steamships; the tendency in Liberal papers to advocate lower duties evoked a defence of Protection in Conservative journals and the Toronto World had a series of articles in August and September on Canada and its National Policy; Nova Scotian iron and steel interests, with over $100,000,000 invested, vigorously opposed the announced abrogation of the Bounties system and pleaded for further imitation of the United States and German protective |