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Trade
Relations

with New-
foundland

This subject came up for some discussion in 1901 as a result of the revival of rumours concerning the possible renewal of the Bond-Blaine Treaty in fresh negotiations with the United States. The total import trade of this Island—including the strip of coast on the continent, called Labrador -in the fiscal year 1899-1900 was $7,497,147. This included $224,353 from Great Britain; $2,805,490 from Canada; and $1,933,505 from the United States. The total exports were $8,627,576, including $1,942,093 to Great Britain; $520,137 to Canada; $2,068,586 to Brazil; $1,009,027 to Portugal; and $1,005,525 to the United States, The chief imports were flour, coal, cottons and woollens, leather, molasses and salt pork The chief exports were cod and its products, copper, herring and lobsters. The trade of Newfoundland with Canada was $2,145,704 in 1897, and $2,886,109 in 1901. The exports to Canada in the latter year were $625,610, of which the chief items were, fish and fish products, $539,053, and metals and minerals, $166,116. Almost the whole of these came into the Dominion as free goods. The imports from Canada were $2,260,499, and of these the chief items were animals, $108,524; breadstuffs, $992,779; coal, $242,517; leather and manufactures of, $134,371; metals and minerals and manufactures of, $154,341; provisions, $120,160; wood and manufactures of, $67,103.

Early in 1901, Mr. Robert Bond, Premier of Newfoundland-who had arranged with Mr. J. G. Blaine in 1890 the vetoed and somewhat famous treaty which goes under their joint names-proceeded on a visit to England and, briefly, to Canada. He told the Montreal Gazette of January 31st that he "still adhered to the principles of the Treaty in question, and he believed that the people of Newfoundland were looking for a move in the direction of its revival." Later on, Mr. E. P. Morris, K.C., Colonial Secretary of the Island, told the St. John's Telegram, of April 29th, that on his recent return from England he had seen several prominent business men, in both the United States and Canada, upon this subject, and "the general opinion prevailed that it was unfair to Newfoundland that her right to make the Treaty should be any longer interfered with." He believed that Mr. Chamberlain would bring the matter to an issue, and that Canada would be called upon to change her attitude. "The ratification by the Imperial Government would immediately follow, as the policy of England now is to aid her Colonies in effecting reciprocal trade measures."

The Canadian papers had been almost a unit in approving the original veto of the Treaty on either the ground of its initiating tariff discriminations within the Empire in favour of a foreign country, or because it directly injured Canadian fishermen. They appeared now to be somewhat indifferent, the reason being, no doubt, a feeling that the question was practically settled. The Montreal Gazette, on May 2nd, however, pointed out that under the abortive arrangement not only were American fishermen to be admitted to Newfoundland waters upon the same conditions as Newfoundland

fishermen, and the products of Island Fisheries admitted free to the United States, while Canadian fish were excluded, but duties on American merchandise were to be lowered, and agricultural machinery and implements, as well as printing instruments and types, were to be admitted free from the Republic. This was the preference originally objected to, and this the Gazette now urged should be removed in any future arrangement by putting Canada in the same position as the United States.

The question was brought up in the House of Commons on May 21st following, by the Hon. Mr. Haggart, in connection with a report that Mr. Bond, the Island Premier, had recently made an arrangement with the Canadian Government by which he was to be allowed to negotiate a new commercial treaty with the United States, without interference from the Dominion or reference to its interests. He pointed out that in the correspondence which had passed between the Imperial authorities and the late Canadian Government regarding the Bond-Blaine Treaty of 1890, it was stated that "no Colony would be allowed to enter into a commercial treaty with a Foreign country which would be in any way detrimental to any other Colony, and that on receipt of any complaint in that regard the Imperial Government would immediately disallow such a treaty."

The Prime Minister replied that there was no truth whatever in the report that the Canadian Government had withdrawn its objection to the Bond-Blaine Treaty of ten years before. Since then the Joint High Commission had been appointed and was not yet dissolved. As Newfoundland was a party to that Commission and its negotiations, it was only fair that no separate action should be taken until its proceedings were officially terminated. After that the matter would be open for further consideration. Upon this point Sir Wilfrid let fall an important remark three days later, in a debate upon another subject. "If we fail to reach any conclusion; if we fail to settle the questions which are referred to the Commission, or some of them, at all events, then we shall have to revise our relations with our sister Colony of Newfoundland."

On the following day, Mr. C. E. Kaulbach contributed to this subject a concise sketch of existing relations between the Dominion and the Island, especially with reference to the notorious arrangement known as the Bond-Blaine Treaty. This proposed treaty was divided into two sections, the one dealing with fish and fisheries, and the other with merchandise and farm products. Under the first division, United States vessels were to be given the same privileges in the waters of Newfoundland in the purchase of herring, caplin, squid and other bait fishes, at all times and on the same terms, as Newfoundland vessels. In return, the United States were to give free admission to dry codfish, cod-oil, sealskins, herrings, salmon trout, cod-roes, etc., from the Island. Canadian vessels, fish, etc., were to be entirely exempt from these conditions on either side.

As to the second section, provision was made that Newfoundland duties on United States merchandise should not exceed 25 cents on a

barrel of flour, 1 cents on a pound of pork, 2 cents on a pound of bacons, hams, etc., 30 cents a barrel on Indian meal and peas, 20 cents on a ton on salt, 6 cents on a gallon of coal-oil. Agricultural implements and machinery, imported by Societies, were to be free from the United States, together with crushing mills for mining purposes, raw cotton, corn for brooms, gas engines, ploughs and harrows, reaping, raking and other machines, printing presses and types. In all these articles or products Canada was a competitor with the United States, and from all the privileges of this arrangement she was to be excluded. He could not understand why the Island Government should have taken this hostile attitude, or why its renewal should now be suggested. Canada had always been friendly to Newfoundland, and a practical proof of this was the number of lights it maintained in connection with the Fisheries and Newfoundland route, as well as the small entry fee charged at Canadian ports, when our vessels were charged at foreign rates on entering St. John's, Newfoundland. Any attempt at carrying out the terms of the Bond-Blaine arrangement would be injurious to Canada, and he trusted that the Government would watch the matter carefully. "To give the United States by the proposed treaty greater concessions and privileges than she has had in the past, would not only destroy the industry of fishing in the Maritime Provinces, but give the United States the monopoly of the fish trade in the West India Islands, and deprive us of the catch of fish in the summer months and the carriage of them in our vessels in the winter season."

Trade
Relations

Africa

Owing to the war in South Africa and the purchase of Canadian products by the British authorities for use with South in that part of the world, Canadian trade has developed considerably. In 1897 the total trade of the Dominion with British South Africa was $155,106; in 1898 it was $269,693; in 1899 it was $21,385; in 1900 it had risen to $1,292.270; in 1901 it was $1,177,660. Canadian imports from South Africa in the latter year were $90,695; their exports, $1,086,965. The details of the latter included horses valued at $328,125; hay, $383,168; wood and manufacturers of, $84,051; provisions, $122,792.

This question of South African trade came up in the House of Commons on March 18th when Mr. Clarke Wallace urged that more attention should be paid to South Africa as a market for Canadian products. He pointed out that last year Great Britain had sent $63,000,000 worth of goods to that region, the United States $10,000,000 and Canada $66,547. New Zealand was putting on a new line of monthly steamers to try and obtain some of this trade but Canada was apparently doing nothing. South African imports in 1900 included agricultural implements to the value of $738,000; ale and beer, $503,958; apparel, $3,217,592; boots and shoes, $2,486,361; butter and cheese, $994,829; carriages, $682,000; cotton, and manufactures of, $4,738,000; hardware and cutlery, $3,978,000; leather, $595,000; machinery, $5,204,000; meats, salted and preserved, $1,168,000; other provisions not specified, $2,599,000; railway

materials, $1,239,000; spirits and wines, $1,228,000; stationery and printing paper, $1,294,000; wheat, $2,451,000; furniture, $1,351,000. Much of this trade, he contended, we could do, or share in, if something were done by the Government to give it a start and some degree of encouragement.

Meanwhile, the Government had been taking steps in this connection and late in the proceding year Mr. James Cumming, a former President of the Dominion Millers' Association, had been appointed a Commissioner to investigate trade conditions in that distant region. Before leaving Canada in March, 1901, he interviewed various manufacturers and exporters, and on March the 7th was in Montreal where he told the Star of that City, in an interview, that his mission was to find out why the Dominion trade with South Africa had been only $200,000 per annum while that of the United States was over $19,000,000. In illustrating this condition he stated that in the past year the United States had sent out $1,600,000 of wooden goods which might have gone from Canada. Boots and

shoes could be largely exported from the Dominion; so could furniture and woollen goods. In flour he feared the close competition of the Argentine Republic. Direct steam communication would, of course, be essential.

Under date of May 11th Mr. Cumming sent his first report from Natal to the Dominion Government. The imports of that Colony in 1900 were $26,800,000 and the population 60,000 whites, 60,000 East Indians and 600,000 natives. "Australia takes the lead in sending cattle, frozen meats, butter, cheese, apples, potatoes, onions, flour, maize and canned goods, in rapid steamers, with chilled compartments. Australians are pushing and have opened special shops for the sale of their special food products. Canadian flour, bacon and canned goods are on sale here, bought in London, and in very few hands. Canadian timber and doors are here but bought in New York." He warned Canadian exporters that goods must be prepared, packed and shipped so as to endure tropical climate on the way. "With a direct steamer, monthly, large shipments of dressed lumber, pine doors, furniture of good medium quality, boots and shoes, leather, canned goods, wrapping papers and many other lines would soon result." But goods should be ordered in advance.

On June 7th Mr. Cumming wrote that since his previous report he had visited all the business towns in Natal and found a general demand for the kind of goods Canada could supply. "At many points in Natal I discovered Canadian lumber, doors, furniture, asbestos, canned fish and fruits, bacon, cheese, etc., on sale and bought as Yankee or British products." He thought that if one or two Canadian commission houses would open agencies in Durban and keep travellers in the interior, a profitable and permanent trade might soon be developed.

During the next few months many Canadian products-horses, oats, hay, harness, and articles of war equipment-were purchased by the British Government for use in South Africa. But this was an

abnormal trade and nothing like that which has been characterized, in the case of the United States, by an expansion from $1,500,000 in 1890 to $15,000,000 in 1898.

On November 5th a long letter was read at the meeting of the Canadian Manufacturers' Association in Montreal from Mr. Thomas Moffat, a Canadian Commercial Agent at Cape Town. The chief difficulty he had to point out was the fact of goods having to be ordered largely through New York so as to facilitate mixed shipments and cheapen the expense of transportation. Direct steam communication was much needed and, since the war, was frequently called for. He did not think the time had come for sending out single representatives, but advised that several firms should combine in meeting the expense and if they did this the result would probably be profitable.

At this gathering an address was also delivered by Mr. Cumming, who had recently returned from his official mission in South Africa. He had come back with all his views changed as to the conditions, people and loyalty in that region. The war was a righteous one, the loyalists had been greatly persecuted and the whole matter much misrepresented. In trade affairs he had found the Americans deliberately removing Canadian names from Canadian goods in order to sell them as American products. There was a good market for agricultural implements all through South Africa, for carriages and waggons, for boots and shoes, for bacon and cheese. Canadian furniture, he found, held a very high place in public opinion; Canadian flour was just what they wanted there; Canadian lumber could be consumed to almost an unlimited degree. Great prosperity was coming in South Africa and he believed that within the next five years $150,000,000 in gold would be taken out of that country. Canadians should share in this future. On the following day the Association unanimously adopted a Resolution in favour of better transportation facilities to South Africa and Australia:

Whereas the manufacturers and exporters of Canada now carry on a steadily growing business with our two sister Colonies of Australia and South Africa, much of which is shipped via United States ports with the consequent bonding, storage and transfer charges; and whereas this trade would be largely augmented under conditions affording more direct, simple and economical transportation; and whereas both Colonies might be served by the same line of steamships :

Be it resolved that in the opinion of this Association the time has now arrived when the Government of the Dominion of Canada should assist by a subsidy a line of steamships that would operate from the ports of Eastern Canada to South Africa and Australia, and that the Government be at the same time asked to retain such control over the freight rates as may be necessary to prevent the manipulation of freight charges over such a line by any shipping ring.

About this time-on November 1st-the British South African Gazette, of London, discussed the subject and repeated arguments which it had previously used in favour of some pronounced action. "That South African merchants themselves are sympathetically anxious to cultivate closer business relations with Canada, we have had clear proof, and its manufacturers will be wise, if they desire to

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