German products is, I believe, 50 per cent. higher than that which we impose." The exports of Germany to the United States amounted to $103,000,000 and American exports to Germany were $197,000,000. We have very much the same kind of products to sell as the United States supplies to Germany. Yet our exports to Germany, instead of being double our imports from that country, as is the case with the United States, amount to only one-eighth." Speaking at Toronto on May 27th, Mr. R. L. Borden criticised the position of the Government in this matter. "Is it right and just to say that in giving a Preference to Great Britain and other portions of the Empire we should be excluded from that lower tariff in Germany to which Great Britain is entitled. The German Zollverein makes what tariff it likes amongst the nationalities that compose it. Shall we in the British Empire not have the same right without incurring hostile legislation and without it being concurred in by the Mother Country?" During a banquet at Halifax later in the year-on July 2nd Mr. Borden made a long reference to this subject. Practically, he claimed, Germany had shared in the advantages of this Preference to Great Britain :— "Goods partially manufactured in Germany are taken to Great Britain and a portion of the value is added there by further process of manufacture. Then the same goods are imported into Canada as the products of Great Britain, and receive the benefit of the Preference, which is thus shared by Germany. As a return for this, Germany subjects the products and manufactures of Canada to a maximum tariff, while those of Great Britain and the United States are admitted under a minimum tariff at a much lower rate of duty.” It may be mentioned here that Canadian exports to Germany in 1873 were $76,553 in value, and in 1896, $757,531. In 1897 they were $1,045,432; in 1898, $1,837,448; in 1899, $2,219,569; in 1900, $1,715,903; in 1901, $2,141,552. The Canadian imports from Germany were $1,099,925 in 1873; $1,809,154 in 1883; $3,825,763 in 1893; $5,931,459 in 1896; $6,493,368 in 1897; $5,584,014 in 1898; $7,393,456 in 1899; $8,383,498 in 1900; $7,021,405 in 1901. The chief dutiable imports from Germany in 1901 were: cotton manufactures, $192,878; fancy articles and ornaments, $360,187; furs and manufactures of, $281,981; glass and manufactures of, $257,681; iron and steel manufactures, $285,218; silk and manufactures of, $347,875; sugar, molasses, etc., $1,521,744-a marked decrease. Italian Trade and the Preferential Tariff On February 27th Mr. F. D. Monk moved in the House of Commons for copies of any correspondence which may have been carried on between Italian Consuls and the Canadian authorities looking to improvement in the trade relationship of the two countries. He stated that his object was to see if the claim he had previously made in the House as to the retaliatory character of sentiment and legislation in Europe, following upon the inauguration of the Preferential tariff, was not borne out. He spoke of the efforts which had been going on for years, particularly in Montreal, for an improvement in Canadian commercial relations with Italy. "There are many products of ours which would find a market in Italy. There is a great demand there, and has been for years, for lumber. We would find also in that country a very profitable market for much of the mineral wealth of this country. There is also a demand in Italy which would afford a profitable market for our Canadian port. On the other hand, we take from Italy, at the present moment, olives, olive oil, wines of different kinds--most of them coming through France, or many of them-Italian pastes, canned fish, and other products of that country." Mr. Monk went on to speak of the efforts of various gentlemen to develop this trade and of correspondence which he believed would show the Canadian Government to be "deplorably remiss" in the matter. Arrangements would now be more difficult owing to the Preferential tariff. In any case he understood that we were now under the general tariff of Italy as against the much lower "special" tariff which is reserved for certain favoured countries. Under correction from the Speaker, Mr. Monk here changed his motion into an Address asking for correspondence between the Governments concerned. The Minister of Trade and Commerce, Sir R. J. Cartwright, in his reply stated that much of the correspondence was informal and strictly confidential, and could not, therefore, be brought down to the House. The decrease in the imports from Italy which had been referred to was largely due, he thought, to there being mixed up with those of France. It was a fact, he believed, that Italy had granted more favourable terms some years before to Canada, but in any case the exports to that country were increasing. It may be added here that Canadian exports to Italy in 1873 were, according to the Trade and Navigation Returns, $177,232. They remained stationary until 1890, when they commenced to decrease, until 1899 when they amounted to $125,265. In 1901 they were $315,063. The imports from Italy in 1873 were $52,425, and in 1890 $163,486. They rose then to $395,599 in 1899; sank to $144,573 in 1900; and rose again to $327,361 in 1901. The Preferential Trade The proposed policy of a British and general tariff around the Empire, in favour of Imperial products and against foreign countries, was much discussed during the year, and in connection with this discussion some figures of British trade may be given here. The imports of Great Britain from the countries of the Empire in 1896 were £93,208,029; in 1897, £94,027,774; in 1898, £99,623,017; in 1899, £106,829,295; in 1900, £109,530,635. The exports of Great Britain to the countries of the Empire in 1896 were £90,650,001; in 1897, £86,964,369; in 1898, £90,110,736; in 1899, £94,249,596; in 1900, £102,024,054. The imports from foreign countries were £348,600,875 in 1896, rising steadily to £413,544,528 in 1900. The exports were £205,729,213 in 1896, and rose steadily to $252,349,700 in 1900. Changing the currency to that of Canada, these figures give a total British trade with the Empire of £211,554,689, or $1,057,773,445 The in 1900, and with foreign countries of £665,894,228, or $3,229,471,140. Between 1896 and 1900 the increase in the imports from the Empire was $81,613,030, and from foreign countries, $324,718,265. increase in the exports to the Empire was, in the same period, $56,870,265, and to foreign countries, $233,102,435. Returning to British currency, the following table gives some of the principal countries with which Great Britain did its trade in 1900: These figures, in the case of European countries, include trade with their Possessions also. Eminently germane to the discussion are the statistics of trade done by Great Britain with Canada and the United States. According to the British Returns for 1900 the import of cattle from the United States was £6,500,744, and from Canada, £1,806,238; of horses, £952,956 and £85,158, respectively; of bacon and hams, £11,254,657 and £1,522,387; of fresh beef, £6,059,776 and £96,259; of butter, £247,724 and £640,760; of cheese, £1,740,749 and £3,799,223; of wheat, £11,227,268 and £2,206,878; of barley, £1,349,816 and £173,963; of oats, £1,479,737 and £409,027; of wheat flour, £8,366,256 and £570,680; of fish, £728,834 and £930,185; of apples, £510,779 and £427,763; of lard, £3,034,038 and £202,878; of leather, £3,038,638 and £139,206; of sawn timber, £2,483,324 and £4,637,654. There was also the large British import of raw cotton from the United States, amounting to £30,196,513, and of machinery, amounting to £2,261,624, in which Canada did not compete at all. The British exports to the two countries were small in comparison, but the principal figures may be given as follows:— In 1891, it may be added, the total British import from the United States was £104,409,050, and in 1900 it amounted to £138,789,261. During the same time the import from Canada rose from £12,103,493 to £21,764,021 (British Returns). The British exports to the United States in 1891 were £27,544,553, and in 1900 had decreased to £19,780,831. Meanwhile, the exports to Canada had only varied slightly from £6,820,990 in the former year to £7,605,257 in the latter. During 1901, questions connected with this general condition of Imperial commerce, and usually thought of in Canada under the loose designation of the Preferential Trade problem, were widely discussed. Toward the close of 1900-on December 18th-the National Union of Conservative and Constitutional Associations of the United Kingdom, meeting at London, passed a Resolution by a large majority urging a re-organization of the fiscal system of the newly acquired States of the Transvaal and Orange River, "so that Preferential tariffs in favour of British and Colonial products shall be established." On January 18th following, Mr. A. E. Kemp, M.P., presented to the Council of the Toronto Board of Trade a Report upon the proceedings of the fouth Congress of the Chambers of Commerce of the Empire, held during the preceding June 26th and 29th. The Resolution upon trade matters passed by the Congress had been a compromise, and simply urged the appointment by the Imperial Government of a Royal Commission "to consider the possibilities of increasing and strengthening the trade relations between the different portions of the Empire." Despite the non-committal nature of this Resolution, however, Mr. Kemp declared that from close observation of what transpired at the Congress, from personal conversations, from comments of the press and from other indications of public opinion, "your delegates have no hesitation in saying that the question of a commercial bond or a Customs Union within the Empire is in no sense an academic one-that in the future we must stand together in matters of trade as in matters of war." In a letter written to the President of the British Empire League in Canada, and read at its meeting in Ottawa on February 13th, Mr. G. W. Ross, Premier of Ontario, declared that "if all the Colonies would enter into a federation for trade with each other and with the United Kingdom, as against the world, they would be brought more closely together commercially and politically, and if this were followed up by Preferential trade on the part of the United Kingdom with the Colonies, as against the world, our hold of the British markets would be strengthened, and a great impetus would be given to all our industries." At Ottawa, on March 4th, Mr. F. H. Clergue was interviewed regarding the influence of the American Steel Trust upon Imperial trade relations. He expressed the belief that the 9,000,000 tons of iron used annually by Great Britain could be easily replaced by this organization at a profit while under-selling the British cost price. But this would not happen without a struggle and he characterized as insane any people who would not use any legitimate tariff weapon to resist such a disaster. 'If, however, the only reasonable course left to the British people be followed by their fallacious free trade policy being dumped over-board, this industry will continue to flourish in Great Britain by reason of the abundant raw materials available at low cost in the British Isles and dependencies. The supply of iron ore and fuel in Canada is of an extent and quality to enable the British steel makers to obtain their supply in steel ingots at a price quite in competition with the Pittsburg output, and to supply raw materials in this partly finished form is the object of the large works undertaken at Sydney and at Sault Ste. Marie." About the same time, under date of Feb. 25th, Mr. Harrison Watson, Curator of the Canadian Section of the Imperial Institute, reported to the Government at Ottawa upon this general subject in the following comprehensive words: Canada can, however, congratulate herself on the marked growth during the past three years of a desire which had not previously existed here, to seriously consider whether some consolidation of Imperial trade interests is really practicable. The doctrine of free trade is still very firmly established in the United Kingdom and this is a very conservative community. Recent events have, however, accomplished more than fifty years of debate could hope to attain. The war has provoked a strong sentiment of gratitude to the Colonies and a wish to lend them a helping hand. The inroads which the United States and Germany have also made upon markets which the United Kingdom formerly regarded as its own have caused a great deal of quiet alarm and misgiving in influential quarters. The seed has been sown and the question of Preferential trade within the Empire is gradually receiving due attention. Like most great movements, the doctrine spreads slowly but surely. On April 18th, Sir Michael Hicks-Beach delivered his Budget speech in the British House of Commons showing an estimated expenditure of $938,000,000 in the current year, an estimated revenue of $716,275,000 and an estimated deficit of $220,000,000. Heavy increases in taxation were thus rendered necessary, and in order to meet a portion of the sums required an export duty was placed on coal, from which it was expected to raise $10,500,000, |