and $13,311,749. The total duties collected were $18,500,785 in 1881; $23,481,069 in 1891; and $29,106,979 in 1901. The percentage of duty collected on the value of all goods entered for consumption was 20 19 in 1881; 2006 in 1891; and 16.06 in 1901. The total of the dutiable goods imported into Canada for consumption in 1881 was $71,620,725; in 1891, $74,536,036; in 1901, $105,969,756. The total of free goods was in these respective years $18,867,604, $36,997,918 and $75,268,232.

In connection with the general extension of trade a number of Commercial Agents had been appointed to represent Canada in other countries and on May 9, 1901, the Minister of Trade and Commerce informed the House of Commons that there were seven of these Agents then employed by the Government. Only one of them devoted his whole time to the work. They included Mr. J. S. Larke, Agent in Australia, $3,000 and expenses; Mr. G. Eustace Burke, in Jamaica, $250; Mr. Robert Bryson, in Antigua, Montserrat and Dominica, $250; Mr. S. L. Horsford, in St. Kitts, Nevis and Virgin Islands, $250; Mr. Edgar Tripp, in Trinidad and Tobago, $500; Mr. A. E. Sontum, in Norway, Sweeden and Denmark, $250; Mr. A. D. Campbell in Argentina and Uruguay, $500. There were others available for this work whose chief duties were in connection with emigration and there were, also, Mr. J. G. Colmer, C.M.G., Deputy High Commissioner in London and Mr. Harrison Watson, Curator for the Canadian Section of the Imperial Institute in the Empire's capital.

Mr. W. S. Fielding's Budget speech in Parliament, on March 14th, contained a number of important figures relating to the expansion of the trade and commerce of the Dominion. The aggregate external trade of Canada was, he said, in 1899, $321,661,213, and in 1900 it was $381,517,236, or an increase of nearly sixty millions. The imports for consumption had risen from $154,051,593 to $180,804,316, an increase of over $26,000,000. The exports of Canadian produce had increased from $138,462,037 to $170,642,369, an increase of over $32,000,000. The exports of Canadian produce to Great Britain rose from $85,114,555 to $96,562,875, and to the United States from $40,426,856 to $59,666,556; an increase in the first case of $11,000,000, and in the second of $19,000,000. The exports from Canadian Mines to all countries rose from $13,368,150 to $24,580,266; from Canadian Fisheries, $9,909,662 to $11,169,083; from Canadian Forests, $28,021,529 to $29,663,668; of Animals and their products, from $46,743,130 to $56,148,807; of Agricultural products from $22,952,915 to $27,516,609; of Canadian Manufactures, from $11,706,707 to $14,224,287. The condition of the imports from Great Britain was shown by the figures of the five years during which he had held office -$32,979,742 in 1896; $29,412,188 in 1897; $32,500,917 in 1898; $37,060,123 in 1899; $44,789,730 in 1900. The following table was given by the Minister of Finance to illustrate the expansion of exports:

The Hon. William Paterson, Minister of Customs, in comparing the commerce of Canada with that of the United States, in the House on March 26th, brought out some interesting figures. He stated that the domestic exports of the United States in the fiscal year 1900— exclusive of coin and bullion-increased 14 per cent. and those of Canada 23 per cent. The grand aggregate trade of the Republic increased 13 per cent, that of Canada 19 per cent. On the basis of a population of 76,000,000, the foreign trade of the United States was $32 per head in 1900, and that of Canada, on a basis of 6,000,000 population, was $63 per head. The aggregate trade of the United States increased 28 per cent. between 1896 and 1900, that of Canada 60 per cent.

An important fact in this connection is the influence of Canadian trade upon the transportation interests of the United States. According to the Trade and Navigation Returns of 1901, the value of merchandise imported by Canada during that fiscal year from the countries of the British Empire through the United States was $13,144,556, and from foreign countries, $7,826,957. The value of goods exported to the British Empire by way of the United States was $33,205,370. and to foreign countries, $3,616,726. The total amount coming and going by way of United States ports and railways was, therefore, $57,793,609.

According to the Report of the Canadian Minister of Trade and Commerce for 1901, the import of dutiable merchandise was $115,574,658 in that year, as against $112,943,896 in 1900; that of free merchandise was $71,303,573, compared with $68,381,179. The export of home products increased from $168,972,301 in 1900, to $177,431,386 in 1901; that of foreign produce was, respectively, $14,265,254, and $17,077,757. The value of the produce of Canadian Mines exported rose from $24,580,000 in 1900 to $40,367,683 in 1901; that of the Forest, from $29,663,668 to $30,009,857; that of Manufactures, from $14,224,287 to $16,012,208. The value of the export of Canadian Fisheries decreased from $11,169,083 to $10,720,352; that of Animals and their produce, from $56,148,807 to $55,495,311; that of Agricultural products, from $27,516,609 to $24,781,486. The export of miscellaneous home produce decreased from $208,070 to $44,489.

The foreign produce exported amounted to $21,252,354 in 1900, and $19,056,246 in 1901-agricultural products amounting to $13,786,566 of the latter total. The following table gives the total import and export trade of Canada by countries in the fiscal year 1901 :

During the year 1901-as distinguished from the fiscal year which ended on June 30th-the trade of Canada continued to increase. The imports for the six months ending December 31st were $99,662,849, as against $91,586,312, in the last six months of 1900. The exports of domestic products were, for the corresponding period, $113,568,760, as against $108,152,866. The increase in imports during the six months was, therefore, $8,076,537, and in exports, $5,415,894 over the same period in the preceding year. There was a decrease in the export of products of the Mine, and increases in those of the Fisheries, Forests, Manufactures, Agriculture and Animals.

The Prefer

and Can

A much discussed question during the year was the ential Tariff incidence and effect of the Preferential tariff in favour of British goods coming into Canada. It had come into operation on August 1, 1898, as a 25 per cent. reduction, and on July 1, 1900, as a 33 per cent. reduction. Under this arrange

adian Trade

ment, as now applied, all goods from any country of the British Empire, the customs tariff of which is as favourable upon the whole to Canada as the Preferential tariff is to such country, were to come into the Dominion at the rate of 33 per cent. less than similar goods were admitted from foreign countries or such parts of the Empire as did not meet the conditions involved.

It was provided that manufactured articles thus admitted under the Preference must be the bona fide manufactures of the countries entitled to its benefits; that a substantial portion of the labour of such countries must have entered into the production of the articles; and that its terms should not apply to spirituous liquors, articles or products containing alcohol, or tobacco, cigars and cigarettes. The countries included were the United Kingdom, Bermuda, Bahamas, Jamaica, Turks and Caicos Islands, Leeward and Windward Islands, Barbadoes, Trinidad and Tobago, British Guiana, British India, Ceylon, New South Wales, and the Straits Settlements.

The two countries chiefly concerned were the United Kingdom and the United States. According to the Report of the Minister of Trade and Commerce for 1901, the average ad valorem rate of duty on dutiable imports from Great Britain in 1897 was 30 693 per cent., and in 1901 24-748 per cent. On imports from the United States it was, respectively, 26-727 per cent. and 24 835 per cent. In the same years the average ad valorem rate of duty on total imports from Great Britain was, respectively, 21.106 per cent. and 18-322 per cent., and from the United States, 14.287 per cent. and 12-424 per cent. The total dutiable imports from Great Britain were $20,217,422 in 1897; $22,556,479 in 1898; $27,521,508 in 1899; $31,561,756 in 1900; and $31,701,654 in 1901. The free imports from Great Britain were $9,183,766 in 1897 and $11,118,341 in 1901.

The total dutiable imports from the United States were $30,482,509 in 1897; $38,063,960 in 1898; $44,471,824 in 1899; $53,897,561 in 1900; $53,600,278 in 1901. The free imports from the United States were $26,540,833 in 1897 and $53,549,047 in 1901. The percentage of dutiable imports from Great Britain to the total of dutiable imports from all countries was 30.53 in 1897 and 29.92 in 1901. That of dutiable imports from the United States was, respectively, 46:03 and 50:58. The percentage of free imports from Great Britain to the total of free imports was 2273 in 1897 and 15:50 in 1901. That of the free imports from the United States was 65-69 and 74.66 respectively. The total imports were as follows:

From the whole British Empire the imports in 1897 were $21,338,661, and in 1901, $46,652,889. Of course, not all the dutiable imports from Great Britain come under the Preferential tariff. In

1898 the value excluded from its operation was $2,904,984; in 1899 it was $4,667,428; in 1900 it was $5,467,654; in 1901 it was $5,795,933. The imports from the British Empire coming under the Preferential clause in 1898 were $19,735,855; in 1899, $23,834,425; in 1900, $27,095,791; in 1901, $27,502,937. The great bulk of these imports were from Britain. In 1898 and 1899 $5,218,407 and $2,763,017, respectively, came from foreign countries under an application of the Preference which was changed in 1899.

The chief imports concerned in the Preferential tariff are five in number-cottons, woollens, flax, silk and iron and steel. The imports of cotton manufactures from Great Britain in 1899 were $3,795,021 ; in 1900, $4,241,814; in 1901, $4,609,034. In woollen goods the import was, respectively, $7,649,861, $6,998,762 and $7,339,533. The imports of flax, hemp and jute manufactures were $1,570,950 in 1899; $1,626,839 in 1900; $1,697,201 in 1901. In silk manufactures the import was, respectively, $1,345,398, $715,890 and $2,107,059. The imports of iron and steel manufactures were $2,345,040 in 1899; $4,120,800 in 1900; $2,518,956 in 1901.

The Preference was widely dwelt with during the year, in Parliament, in the press and on the platform. There were many points of view presented. In the February number of Industrial Canada Mr. W. K. McNaught wrote urging strongly that the national seaports of Canada should be encouraged by Canadian money and business interests. He deprecated the unpatriotic policy of the railways which sought foreign ports from which to ship Canadian products. "Fortunately, a remedy easy of application lies to our hand and that is to refuse to allow the Preferential tariff rebate of 33 per cent. on goods of British manufacture unless they are imported directly from Great Britain into some Canadian port."

This policy, he declared, would help Canada's national railway— the Intercolonial; help Canadian labour through building up the national seaports and developing national shipping; help the trade of Montreal and Quebec, Halifax and St. John, at the expense of New York, Portland and Boston. Mr. J. O. Thorn, another prominent Toronto manufacturer, wrote to the same paper, at the same time, strongly objecting to this proposal on the ground that so much inconvenience and delay might be caused to many manufacturers in obtaining their raw material that they would be compelled to import entirely from the United States. Such a policy would assist the already keen American competition in Canada with British goods. A little later in the year the St. John Board of Trade passed a Resolution in favour of the principle.

Delegates from this body, comprising Messrs. G. Wetmore Merritt, D. J. McLaughlin, J. H. Thomson and George McKean and Ald. Macrae, visited Ottawa in March and pressed upon the Government their views in this connection, besides supplying the Premier with a great deal of statistical information bearing upon the subject. The Board of Trade at Halifax took the same view and on April 30th the President, Mr. George L. Campbell, stated to the Board that their