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(refined), $63,049,812; provisions, $196,958,878; tobacco, $32,749,078; wood, lumber and timber, $41,345,642; wood manufactures, $11,097,042.

Canadian trade with the United States has not fluctuated very greatly until the last few years when the exports to that country rose from $49,373,472 in 1897 to $72,382,230 in 1901, and the imports from the Republic increased from $61,649,041 in 1897 to $110,485,008, in 1901-an increase of $23,000,000 in exports and $50,000,000 in imports. The principal imports into Canada during the fiscal year 1901 from the United States were, cattle, $182,227; horses, $274,905; sheep, $162,104; books, pamphlets, etc., $792,317; breadstuffs-including wheat, $6,370,313, oats, $946,313; flour, meal and other grain products, $443,590-$8,514,986; carriages, bicycles, etc., $1,045,688; coal (bituminous), $5,191,623; coal (anthracite),$7,871,406; cotton goods, $1,368,696; drugs, etc., $771,258; fancy goods, $358,586; fish and fish products, $415,954; fruits (dried, and nuts), $758,671; fruits (ripe), $964,606; glass and manufactures of, $536,949; gutta percha and India rubber, $434,590; hats, caps and bonnets, $739,123; jewellery, $421,223; leather and manufactures of, $1,458,973; brass and manufactures of, $390,031; iron and steel and manufactures of, $16,161,355; musical instruments, $307,509; mineral oils, $874,769; paints and colours, $386,267; paper and manufactures of, $1,324,795; provisions, $3,002,672; silk and manufactures of, $256,514; sugar and molasses, etc., $1,053,540; watches and parts of, $511,063; vegetables, $377,394; wood and manufactures of, $1,229,159; woollens, $369,410.

Of these imports only anthracite coal and Indian corn ($6,484,181) were free. Other imports, duty free, were cotton wool, $4,731,812; drugs and chemicals, $1,917,007; fruits (ripe), $666,995; fur skins (undressed), $808,121; India rubber (crude), $1,747,685; hides and skins, (raw), $2, 435,411; copper (bars, strips, etc.), $909,985; iron and steel manufactures, $6,892,995; tin and manufactures of, $493,388; settlers' effects, $2,915,603; tobacco, $1,548,283; wood and manufactures of, $3,481,338; woollens, $424,497. The principal items of Canadian export to the United States in the years between which considerable expansion has taken place were as follows:

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Trade and Tariff relations with the United States

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There was a distinct revival of the discussions regarding Reciprocity with the United States during the year and some advocacy of the principle of equality in tariffs as well as of reciprocity in trade. Speaking in the House of Commons on February 18th, Mr. W. F. Maclean referred to the strong tariff policy assumed by the Russian Government toward the United States and declared that we must have a little De Wetteism in our Government. We must have a tariff with a sliding scale, which will be friendly to a friendly Government, but which will be protective against an unfriendly one." There was only one way to settle questions at issue between Canada and the United States, and that was by means of the tariff. "If they found their goods barred out of Canada, they will quickly come to terms. In 1896 we imported $57,000,000 worth of goods from the United States. That sum has grown to $96,000,000 or more, and it is growing steadily. Canada is the best outside market the United States have. But as long as we are fools enough to let their goods come into this country under the present low tariff, while they put up a high tariff to bar out our goods, we shall never get fair treatment from them."

On March 16th Mr. John Charlton, M.P., addressed the New England Free Trade League at Boston and declared that "we want between our country and yours the same freedom of trade as that which has been so successful between the States which form the American Union." He pointed out how much more liberal the Canadian tariff was to the United States than the American tariff was toward Canada. If the United States would only move in the direction of Reciprocity "we will meet you half way; we will travel three miles out of five to meet you." If nothing were done, a desperate effort would be made at home by raising Canadian duties so as to produce in Canada the goods now bought of the United States. In the House of Commons, on March 21st, Mr. Charles Marcil declared that "the favourite policy" in the County of Bonaventure was Reciprocity with the United States. "There never was on that coast a more prosperous era than that which extended from 1854 to 1865; in fact that period was the most prosperous ever experienced by the Province of Quebec." He hoped that the International Conference would not be abandoned. Mr. W. F. Maclean expressed an exactly opposite view and stated again his belief in reciprocity of treatment and reciprocity of tariff. He would extend this theory from Canada to England, and through British duties bring in the United States.

"You will never bring the Americans to time until the American farmer finds that he is not going to get into the English market with his wheat and corn and pork and other products." As to Canada, he would raise rather than lower its duties upon articles of American production.

Mr. Charlton supported the proposal to levy duties upon lumber coming into Canada, similar to those now imposed by the United States upon Canadian lumber, and declared that "what we want in dealing with the United States is to secure their respect, and this can only be obtained by frankly and openly showing them that we are determined to stand up for our own rights." Speaking on Dominion Day at the Pan-American Exposition, at Buffalo, the Hon. Dr. Borden, Minister of Militia, dealt very frankly with the situation: "I have sometimes felt that there was not that feeling which we could desire on the part of your statesmen to promote reciprocal relations. We, on the north of the line, are your neighbours and friends, and we want to go hand in hand with you in commercial relations and enterprises. We are prepared to meet you half-way, but we will not meet you more than half-way. This world is vast, and if we cannot trade across this line, we can go somewhere else, and this we are doing now. We buy largely from you, but we are not selling to you as much as we ought to. We are taking our goods to Free-trade England, and in so far as we are being excluded from your market, we are making a market there, and we are compelled to displace goods which used to go from the United States to England. Unless free trade comes in the future, we will continue to displace those goods."

In the United States, during the month of July, the Merchants' Association of New York passed Resolutions pointing to the fact that "the manufactured products of the United States are constantly increasing, and are already exceeding the demands of home consumption;" declaring that "the opening of the Canadian market, which lies so near and with which communication is so direct, would be a long step in providing an outlet for our surplus products"; and urging that a reciprocal trade arrangement be sought for and obtained with Canada. The commercial bodies of Boston, Duluth and other places passed Resolutions in favour of Reciprocity, and various newspapers such as the Duluth Commercial Record, the Boston Herald and the Boston Transcript drew attention to the value of a trade arrangement with Canada. Writing upon this general subject in the August Expansionist of New York, Mr. Osborne Howes pointed out that the result of the American policy of trying to force Canada into the Union had resulted in independent fiscal action and finally in the British Preferential tariff. This latter policy he considered eminently sagacious from a Canadian and British standpoint, but "the result cannot fail in the long run to work to the disadvantage of the United States." Speaking to the Winnipeg Telegram, on August 12th, Sir Charles Tupper, the veteran Conservative statesman, referred with his usual vigour to the movement apparent in the neighbouring country :

"Everything," he said, "that is calculated to promote the most cordial relations between Canada and the United States is important; but larger experience has brought me to the conclusion that nothing is to be expected from the United States in relation to commercial intercourse with any country except a policy such as will conduce to their own advantage. Anything like free trade between the two great countries of the North American continent would be fatal to Canada. It would involve the acceptance of the United States tariff against the world, England included, and, therefore, in my judgment, is not to be considered for a single moment. The first result of any such step would be that the markets of this country would be flooded with American manufactures, and our own industries in the east and elsewhere would be crippled, if not killed."

A little later, on November 20th, Sir Charles told the Toronto Star that his policy was reciprocity of trade or reciprocity of tariffs. At the meeting of the Maritime Provinces' Board of Trade, in Chatham, N.B., on August 21st, President W. S. Loggie spoke of the noticeable change in American public opinion upon this subject; quoted from a recent number of the New York Dry Goods Economist as illustrating the fact; and concluded with the statement that while this subject was of great importance to all Canada "it seems to me to be especially so to the Maritime Provinces as the United States is the natural outlet for many of our products."

A further impetus was given to the discussion of the question in the United States by President McKinley's famous speech at Buffalo on September 5th. In this last utterance of his he pointed out the vast and intricate system of business which had been built up, and declared that no narrow, sordid policy would conserve it. "Our capacity to produce has developed so enormously and our products have so multiplied that the problem of more markets requires our urgent and immediate attention." The weak places in the structure of trade must be strengthened. "By sensible trade arrangements which will not interrupt our home production we shall extend the outlets for our increasing surplus. A system which provides a mutual exchange of commodities is manifestly essential to the continued and healthful growth of our export trade. We must not repose in fancied security that we can forever sell everything and buy little or nothing. If such a thing were possible it would not be best for us, or for those with whom we deal. We should take from our customers such of their products as we can use without harm to our industries and labour. Reciprocity is the natural outgrowth of our wonderful industrial development under the domestic policy now firmly established." He went on to urge that the excess of production must be given an outlet somewhere, and to point out that, while commercial wars were unprofitable, the extension of commerce was a necessity. "A policy of good will and friendly trade relations will prevent reprisals. Reciprocity treaties are in harmony with the spirit of the times; measures of retaliation are not."

On November 7th, Mr. Charlton, M.P., addressed the New York Chamber of Commerce upon American and Canadian trade relations. He first spoke of the growth and development of Canada and its importance to the United States as a rival or a friend. Existing trade

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relations were unsatisfactory to the Canadian people owing to the unfair tariff conditions and the fact that the United States sold to the Dominion so much more than they purchased from it. The character of Canadian trade was referred to. The importation of manufactures from Great Britain was $38,000,000. The excess of importation of manufactures from the United States over the importation from Great Britain was $25,000,000. Of this amount ($63,000,000) over $18,000000 was on the free list, and Canada gave the United States a total free list of $56,000,000—not less than $30,000,000 of which consists of free lumber, free corn and free manufactures. In return for this the United States gave to Canada a free list covering the precious metals and a few minor articles and charged upon the imports from Canada double the rate of duty that the Canadian Government charged upon American imports; and had a tariff adjusted in such a manner that the agriculturists of Canada, who purchased at least $30,000,000 of the imports of American manufactures, were met by farm product duties ranging from 25 to 100 per cent." He expressed the opinion that under free trade in natural products Canada would import much more from the United States than she would export. If nothing were done to ameliorate present conditions he believed that Canada would raise her duties to the American level, and perhaps grant a rebate of 50 per cent. to any country admitting her natural products free. This would at once apply to Great Britain, though other countries could, of course, take advantage of it.

The Hon. Mr. Fisher, Dominion Minister of Agriculture, spoke at the Canadian Club Dinner in New York on the same evening. He stated that Canada was sixth in the list of countries from which the United States purchased, and that they sold as much to the Dominion as they did to Asia, Africa and Oceana put together. "Under these circumstances it seems as though your statesmen would do well to consider how the trade with Canada can be fostered and improved. In your newly-directed efforts toward Reciprocity, perhaps with Canada, if your statesmen are reasonable, you might be able to find an opportunity of successful negotiation." Meanwhile, on November 6th, the Prime Minister of Canada had been dealing with this subject at the Banquet of the Canadian Manufacturers' Association in Montreal. The immediate duty of the Government and of all Canadians, he declared, was to develop the country's own resources. "In the past we have sent delegations from Canada to Washington to ask them to give us Reciprocity treaties; we are not sending any more delegations there. I should not be surprised now to see us receive at Ottawa delegations from Washington asking us in our turn for Reciprocity treaties and we shall receive them, in the way Washington has taught us to act, with every possible politeness."

In his Presidental address to the same body at this meeting in Montreal, Mr. P. W. Ellis spoke strongly in this connection. “I believe the feeling in Canada to-day to be that, if we begin to talk reciprocity with the United States, the United States will reciprocity us out of existence." Canadian imports from the Republic in the last

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