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'.11

DOMIIION ELECTION.

CAMPAIGN OF 1886.

Eon. EM Blake's Speeches.

I^O. 15 (First Series).

(MALVERN).— The Liberal Party and
the Tariff.

NOTE.— See Inside Cover for List of Mr. Blake's Speeclies in first

Series. Apply to "W. T. R. Preston, Reform Club, Toronto,

for Copies of tbese Speeclies.

^0r0ttto:

HUNTER. ROSE & CO., PRINTERS.

1886.

/ \;

jiy' -■ 11 ;■'..,.■ \

LIST OF SPEECHES IN THIS SERIES.

No. I.— (LoHDON): Gensral Review of Situation. Rid Question.
(Owen Sound) : North-West Maladministration. Riel.
No. 3. — (Beaverton) : Independence of Parliament The Boodle Brig^ade.
No. 3.— (Chesley) : Public Finances— Taxation and Deficits— Farmers.
No. 4.— (SiMCOE) : Federal and Provincial Rights— Ontario— Nova Scotia.

(GuELPH) — Elections near.- Tory Dodges— Nova Scotia.
No. 5.— (Owen Sound) : Principles of Liberalism— Duty of the Leader.
(Wellaito) — Policy of the Party — Functions of an Opposition.
(Oakwood) — Sir J. Macdonald on Functions of an Opposition.
No. 6.-^i?*/nK-/j— (Guelph) : Home Rule for Ireland.

(Berlin): Firebrand Tory attempts to excite Germans.
(Oalt & Orangeville) ; Indian Starvation Policy.
(Pembroke) : Maladministration felt at Cut Knife Hill.
N*. 7. — Extracts— {Kendkli.) : Business Methods required in Public Affairs
— Degradation of Parliament—A few Boodlers.
(Hampton) ; Civil Service Reform.
(Galt) : Burden of Public Debt.
(Orangeville) : Burden of Public Debt
(Belleville): Burden of Public Debt — The Interest on Debt
(Oakwood) : Burden of Public Drbt— Our Public Expen-
diture. ^
No. 8w — (Newcastle) : Canadian Pacific Railroad Matters.

(Listowel): Canadian Pacific Railroad Matters — The last Sacri*

fice of $10,000,000 — Collapse of Tory '• Boom " Policy.
(St. Thomas) : North-West Lands.
(HuNTsviLLE) : R.R. Policy— Sir John's Subsidies to " Guinea-Pig *•

Directors — Assisted Immigration and Railway Frauds.
(Parry Sound) : Railway Policy of Liberals.
/^ (Obangevillb) : Railway Policy of Liberals.
(Brantford) : The Kansas Slander.
(Listowel) : The Sea of Mountains.
(Winoham) : Blake's Tribute to Mackenzie.
(Stayner): Blake's Tribute to Sir Richard Cartwright
(Brantfokd) : Blake's Tribute to Paterson— Duty of Young Men.
10. — (Welland) : Liberal Party, Creeds and Classes.

(Orillia): Leaders and Newspapers — The "Mail" Crusade.
II. — (Aylmer) : Prohibition and Politics.
12. — (Toronto) : Interests of Labour — The Tariff.
(Welland) : To Knights of Labour.
(Bbllkvillb): Legislation for Labour.
(Deseronto) : Workingmen and Parties.
(Hamilton): Workingmen and Parties.
Na 13. — (Hamilton) : Provincial Issues — The Religious Cry — Liberals and

Catholics.
No. 14.— (Lindsay) : North-West Affairs — Neglect, Delay and Misman-
agement—Race and Creed Cries.

No. 9.

No.

No.
No.

1
i
C

THE LIBERAL PARTY AND THE TARIFF.

NECESSITY FOR HIGHER TAXATION THAN IN 1878.

IMPORTANCE OF STABILITY IN TARIFFS.

TVot the Cause of the nianufocturlng Clais In Danger, but

that of the Tory Party.

A TRULY NATIONAL POLICY FOR OUR COMMON COUNTRY.

In his speech at Malvern, in East York, on the 22nd of January,
the Hon. Edward Blake dealt with the tariff question as fol-
lows : —

Mr. Chairman and Gentlemen, — The i.ssues before you are of
transcendent importance ; the very existence of Confederation,
the national life and honour, are at stake. An unworthy, incom-
petent, faithless, corrupt, extravagant, neglectful — yes, a treason-
able Administration — (cheers) — is on its trial before you for
innumerable high crimes against the State — (loud cheers) — and
naturally it desires to find some way of escape from the con-
demnation which it dreads. (Cheers.) Among its methods to
ac implish this result is a resort to gross misrepresentations of
Ih 3 actual condition of the tariff question, and of the attitude of
the Liberal party on the subject. It is fitting, then, that I should
deal with it briefly. I spoke in '82 ; I spoke a few weeks ago in
Toronto ; I speak now, as the leader of the party, expounding, on
all questions of principle, not merely my individual views, but the
common sense, as 1 understand it, of the great body of the party —
the general lines upon which the party, as a whole, would act if
entrusted, as they will be soon, with power. (Cheers.) Some of
our adversaries, who cannot find much fault with my utterances,
presume to say that it is not I who am to expound the party policy
on this question, and that you must look elsewhere for light.

(15)

420

THE GENERAL PRINX'II'LES AN'j POl ICY

of the party have been shaped, under my lead, by the concurrence
of its representatives in Parliament, I have already declared them,
and I am about to* say on them nothing new, but only to repeat
and enlarge on my former statements.

What I have said, and am about to say, on questions of prin-
ciple, you may, then, take as authoritative to whatever extent a
leader has authority ; and, so far from there being divergence, I
can assure you that there is, in my belief, a general concu nonce
of sentiment between us, including Sir Richard Cartwright, whom
I name only because our adversaries delight to represent him as
holding other views. (Cheers.)

For the triumph of this policy I will continue to strive, whether
in or out of office ; and most surely no principle laid down by me
as leader shall be violated while I retain my post. (Cheers.)
There are, I dare say, in the ranks of the party, as there are in
the ranks of all parlies of independent men, some divergencies of
opinion, particularly on theoretical and abstract and si>eculative
points ; out on

THE PRACTICAL QUESTION BEFORE US,

within the scope of the political horizon, there is no such differ-
ence as to what is possible and proper as should prevent a common
platform on the tariff", or a cordial re-union of all Reformers — in-
deed, of all honest men — in the effort to change the Government.
(Loud cheers.) I do not pretend to say that all the men in our
ranks are of precisely the same opinion as to the theoretical
merits of free trade or protection. It is not so in the Tory ranks
either. I do mean to say that the actual conilition so far obliter-
ates the practical importance of any such difierences as to give
plain and ample ground for common action. (Cheers.) In To-
ronto a few weeks ago I quoted my

DECLARATION OF 1882,

and I added in a very few sentences ray opinions on the altered
situation of to-day. Let me quote my words : —

THE TORONTO SPEECH QUOTED.

" The Tariff was enacted in 1870, and in 1882 he appealed to the
people. And his appeal was based upon the need to obtain a
renewed lease of power, which he assured the people would, if
obtained, render ■

(15)

. 427

TllbJ TARIFF ABSOLUTELY PERMANENT

and beyond all danger of attack. Ho obtained tliat lease. lie
has enjoyed an<] used it. But another election approaches.
Those who are wt'll informed on the Conservative side say, what-
ever they may think, that it is not so very near. .Tiiose who have
some sources of information on the Liberal side believe it to be
much nearer. At any rate it ap[)r<)aches. 1. . the election ap-
proaches you Hnd, notwithstantling the pledg3 of 1882 as to the
results of a fiesli lease of power, tlie cry is raised again, " The
tarirf is in danger! To save the taritfyou must once again rctiira
the Conservatives to olKce."

If it be so that it is necessary to give the Conservative party a
third lease of power in order to save the tariff, all I can say is that
this is an ;m knowledgment that the princij)al i)ledge made by the
Government at the last election has not been fulfilled, and that

the
in a

THEY HAVE FAILED TO ACCOMPLISH

the promise on which they were leturned. (Great applause.) I
desire to refer very briefly to the

ATTITUDE OF THE LIBERAL PARTY UPON THE QUESTION OF THK

TARIFF.

It has been grossly misrepresented. In 1882 I stated ray views
upon that subject in the most formal manner, ))y means ot the
address I issued to the electors of West Durham as a manifesto to
the country; by the principles then laid down I still abide. I
said : — j

You know well that I do not approve of needless restrictions on our liberty
of exchanging what we have for what we wjtnt, and do not see that any sub-
stantial application of the restrictive principle has been or can be, made in
favour of the great interests of the mechanic, the labourer, the farmer, the
lumberman, the ship-builder or the fisherman. But you know also that I
have fully recognized the fact \hat we are obliged to raise yearly a great sum
made greater by the obligatioi.s imposed on us by this Go\ernment ; and
that we must continue to provid\. this yearly sum n.ainly by import duties,
laid to a great extent <m goods similar to those which can be ntanufacturtd
here ; and that it results as a nece.isary incident of our settled fiscal system
that there must be a large, and, as J believe, in the view of moderate protec-
tit-nists, an ample advantage to the 1 ome manufacturer.

iJur adversaries wish to jneseid to yov an issue as between, the j'Texcut tariff
and. absdlutb free trade.

That is not the true issue.

Free trade is, as J have repeatedly exp.ained, for us im)wssible ; and the issue
is whether the present tariff is perfect, or defective and wijnst.

1 believe it to be, in some impoitant lespects, defective and unjust.

We expressed our views last session in four motions, which declare that
articles of such prime necessity as fuel ai d breadstuffs should be free ; that

428

the sugar duties should bo lo adjusted as o relieve the consumer from some
of the enormous extra price he is now liabl < to pay to a few retiriers ; that the
exorbitant and uncquui duties on the lower grades of cottons and woollens
should be so changed as to make them faire" to the masses, who now pay on
the cheapest goodp taxes about twice as great in proportion as thosu which
the rich pay on the finest goods ; and that the duties on such niateriala as
iron, which is in universal use, should be reduced, so as to enable the home
manufacturer, to whom it is a raw material, to produce a cheaper article for
the benefit of his home consumer, and the encouragement of hia furetgn
trade.

1 believe that by changes of the character I have indicated monopoly and
extravagant prices would be checked, a greater measure of fair play and
jtistice to all classes would be secured, and the burden of taxation would be
better adjusted to the capacity of the people who are to pay. Depend upon
it, a day will como when by sharp and bitter experience we shall learn the
truth ; and many who even now applaud will then condemn these particular
incidents of the tarifif.

My reference there to the fiscal anrl financial limitations of our
condition has increased force to-day, for since that time enormous
sums have been added to the public debt ; enormous sums have
been added to the annual charge ; and notwithstanding the great
taxation,

A LARGER DEFICIT THAN WE HAVE EVER KNOWN

since Confederation has signalized the last financial year. Ttiere-
fore the eccecution even of those measures of readjustment which
1 sugi/ested in that address, and which we had proposed in Par-
liament in the preceding session, would be found much more
diffixiult to-day by reason of the changed condition of a fairs. We
have no longer a large surplus to dispose of-^we have a largo de-
ficit and a greatly increased scale of expenditure to meet. And
it is clearer than ever that a very high scale of taxation must be
retained, and that manufacturers have nothing to fear.
I then declared that any readjustment should be eii'ected with
due regard to the legitimate interests of all concerned. In that
phrase, " all concerned," I hope no one will object to my includ-
ing, as I do, the general public. (Cheers.) In any readjustment
I maintain that we should look especially to such reduction of
expenditure as may allow of a reduction of taxation, to the light-
ening of sectional taxes, to the lightening of taxes upon the pi ime
necessaries of life, and upon the raw materials of manufacture, to
a more equitable arrangement of the taxes which now

BEAR T NFAIRLY UPON THE POOR

as compared with the rich, to a taxation of luxuries just so high
as will not thwart our object by greatly checking consumption,
to the curbing o^. monopolies of production in cases where, by
combination or otherwise, the tarilf allows an undue and exorbi-
tant profit to be exacted from consumers, and to the effort — a

429

rith
that
lud-
>ent
of
rht-

lion,

rbi-
-a

most importunt point — to pronjobe reciprocal trade with out
neighbours to the south. (Groat applause). That is a modest
programme, you may say, but I believe it to be an extensive pro-
gramtno, representing the full measure practicable of attainment^
and which can be fulfilled only by much expenditure of time and
thought, after full investigation, careful inquiry, and ample con-
sideration of details and of the bearing of each proposal, with
the atlvantage of all those materials for forming a judgment on
details, which are available only to men in office. (Cheers).
Now, recurring to

TUE TARIFF IN ANOlHER ASPECT,

r maintain that it has produced disaster to several important in-
dustries, and great conseciuent injury to the cause of labour.
Unduly hif,'h protection, while the demand exceeded the supply,
gave inordinately high profits, for example, iu cotton, in sugar,
and in certain descriptions of woollen goods. The public were
heavily charged, and a few individuals were greatly enriched
(ApjJause.) Others wished to share the golden stream. Capital
was sunk ; mechanics were brought in from abroad ; they were
Ijrought away from other occupations at home. Production was
increased ; and then came quickly, in our country of limited de-
mand, the following stages : those ^f glut, of lower prices, of
short hours, of lower wages, of closed factories and discharged
hands, of general distress, and of demoralization of trade. Regu-
larity of employment — which is the most important thing for the
comfort of those who depend ui)on their daily work — was for the
time destroyed. (Applause.) Now there is some revival, and I
ob.^erve the First Minister has given his cause for that revival in
his speech. He says : —

There was only one thing to be dreaded in in.irodncing that policy, namely,
that it might lead to over-production, and in const quence thtio would be
great depression and insolvency. This was the case with regard to the cotton
industry. The cotton manufacturers were so successful in their factories that
in all parts of Canada the people ruahtd into the manufacture of cotton, the
constijuenco being that more of the article was produced than wjis consumed
A RKMEDY FOR THAT HAS BEEN FOUND, HOWEVER, IN THE
BUILDING OF THE CANADIAN PACIFIC RAILWAY.

(Loud cheers and laughter.) No ! Not so 1 The remedy they
have found has been in combination, in an

AGREEMENT AMONG THE MANUFACTURERS

to advance prices, and perhaps to limit production, and so i.ve are
all called upon by a rapid rise, nay, by several rapid rises^ of
prices, to contribute to pay dividends on millions of capital need-
lessly expended in order to create a power of production in excess
of the consuming power of the country. It is clear now that home

430

competition in this and in other caHos cannot bo Jepcndctl on to
keep down prices ; and the onl^ safeguard, both for the manufac-
turers theui.seivc.j, who have witno.s.scd in tlicso instances the di«.
astrous results of lii;,di jtrotection, and for the general public, who,
in the early stage of inade(iuate supply, an<l again in the present
stage of ironclad conibinntiun, are called upon to submit to the
full burden imposed by the tariff, is to take care tliat the tariff is

NOT so INORDINATELY IfKiH

that the monopolist, whether ho is such by virtuo of there being
no other manufacturer, or by virtuo of a combination, shall have
it in his power to take too much out of the general public. (Loud
applause.) A great deal we must allow him to take, but the rates
(as I have pointed out on former occasions), which this taiilf in
some industries allows to be taken, arc altogether excessive and
inordinate. But, it is said that the prices of commodities have
been compar.itively low of late years, and that this is due to the
tariff The prices ar.o low all over the world. (Loud applause.)
The progress of invention, the progress of production, the pro-
gress of facilities for transportation, the increased area of cultiva-
tion are, to the great gain of humanity, yearly reducing the cost
of the articles which are in daily use ; and it is

NO JUST COMPARISON AT ALL

to contrast our prices of to-day with our prices of a few years ago.
(Loud applause.) If you want to know whether prices are low or
high in Canada, your only test is to compare them with the prices
of the day in the free or the lowest markets of the world, and
then you will see really whether they are comparatively high or
comparatively low. Now, make this comparison, and you find
prices in several cla.sses comparatively high, and that we are losing
in many commodities much of the general gain to humanity by
the general progress of the world. (Applause.) Take, for exam-
ple, sugar. They boast of the low price of sugar. Sugar is low
here compared with its pric^ here a few years ago, but it is inordi-
nittely high here compared with the price in England in the pre-
sent year. The price of the raw material has fallen enormously.
We do not get anything approaching the full benefit of that
reduction. We pay infinitely more than they do in Engla-^.d, or
in bond at New York. A large part of the excess is paid into the
treasury, I frankly admit. A larger sum than I like to see levied
on sugar. But a very large part of the excess over the foreign
prices, a part approximating on the consumption of the year to
$2,000,000 beyond what goes into the treasury, Va paid by the
people of Canada in effect to assist the refiners to carry on their
business. (Loud and prolonged applause.) Now, I pause here, I
cannot further this evening discuss this phase of the tariff.

431

n to
ifac-

who,

o the
litf is

V)eini?

have
(LoU(\
) mtos
vill' in
/o and
s have

to the
ihuisc.)
le pro-
ultiva-
he cost

irs ago.
ow or
prices
il, and
igh or
on tind
losing
nity by
exam-
is low
inordi-
tke pre-
mously.
of that
la^.d, or
into the
e levied
foreign

I year to
by the
on their

Circtiinstance.H constrained ino in my Toronto speech jtist
qtioted to l)C extremely brief ; allow mo now to make a few
comments on tliut text, in some of those respects in wliich its
meaning has been perverted by the Tory press. Obscrvo first,
Sir John Macdouald's election declarations of 1882. Then ho
declared tliat the object of the election was to establish once and
forever the foundations and the structure of the National Policy ,
then ho deelnred that a verdict in his favour would ensure tliat
result ; then he declared that, if again returned to power, he
would defy Sir Richard Cartwright, or me, or any one else, at
any future time, to take down the e<litice which the people would
have raised ; then he solenmly pledged himself that, if you gave
him a new lease, ho would so settle and secure affairs as to jdace
the policy beyond all risk of change or danger. (Cheers.) I
observed at that time that the situation even then

WAS NOT SUCH AS HE DF.CLARED ;

that already events had .settled many things ; that no such radi-
cal changes as he professed to fear were possible ; and I defined
our pasition plainly. But still he professed great nervousness
and apprehension. He would not bo consoled. (Laughter.) Still
he declared that a new lease of power to himself was necessary
to secure the permanence of the policy, and that this such a lease
would surely do. He obtained what he asked ; he obtained full
sway and absolute authority ; he has since done exactly what
he pleased. Up to a few weeks ago he professed that he had
fullilled his pledge. (Cheers.) He still believes in his heart that
he has in fact fu-lfilled it. (Cheers and laugliter.) For my part
I have always declined to ignore existing facts. I freely ac-
knowledged that the situation had been changed even by 1882 ;
and 1 have as freely acknowledged that it has been changed far
more since 1882; that many things then possible are now abso-
lutely impossible; and that

A MORE PERMANENT STRUCTURE HAS BEEN RAISED.

Some may think it good ; some may think it evil ; but so it is.
To deny it would not subvert it, and we must face the facts as
they are. (Cheers.) But now, forsooth, when the elections have
come again, Sir John and his followers raise the old cry and play
the old game — " The Tariff in danger." They say — " We have
broken our promises, we have failed in our predictions, we have
not raised a permanent structure ; ail is still in peril ; we want a
new lease of power to do the job." (Laughter.) But don't you
believe them ! They don't believe themselves ! It is anything

(15)

J^ar-JHt'ttB ■. OU-IU

432

to get the new lease ! (Cheers and laughter.) I have stated the
condition in 1882. How do the conditions contrast ? Our con-
solidated fund expenditure in 1H78 was $23,500,000; in 1882 it
was $27,000,000 ; and wo had a large surplus. And oven then I
showed the inexorable limitations which had been created. But
in 1886 it v s about $3G,000 000, apart from war expenditure ;
and we had a large deficit. Thus the annual charge is now
greater by about 50 per cent. ; it is enormous ; the great bulk of
it comes and must come from taxation ; and the revenue has not
met the charge. Now what are our sources of taxation ? Direct
taxation is at this time out of the question. The reasons I need
not discuss. The advantages and disadvantages I need not
bitlance.

WE ARE DEALING WITH PRACTICAL CONDITIONS,

and no one suggests direct taxation as practicable. (Cheers.)
There remain the existing sources, the duties of Customs and
Excise. From the liquor duties we cannot expect further relief.
By common consent these are kept as high as the danger of illicit
evasion will allow ; some think higher. (Cheers.) The progress
of the Temperance movement will, we all hope, diminish this
source ,of revenue — (cheers) — and when the advocates of total
Prohibition succeed these duties will disappear ; at any rate the
excise will then be " all smoke ! " (Cheers and laughter.) There
remain the duties of Customs on other commodities, and the con-
ditions demonstrate the impossibility of diminishing to any large
extent this fund. We have no longer a surplus to dispose of ; we
have a deficit to overcome ; and, that done, we have a tremendous
yearly charge to overtake. *' Oh, but," say some Tories, " you can
yet do this and make a free trade or non-protective tariflf'." The
statement is

DISHONEST AND ABSURD.

Even in Mr. Mackenzie's time, with his fiscal views, with his
moderate expenditure, it would have been absurd. They say ii
is done in England. But in England a vast sum is obtained by
the duties on liquors and tobacco, a vast sum by direct taxation,
and it is only a comparatively small proportion of the whole rev-
enue that is realized by the other duties of Customs. No man, I
care not how convinced an advocate of absolute free trade for
Canada he may be, has yet suggested, no man I believe can sug-
gest, a practicable plan whereby our great revenue needs can be
met, otherwise than by the continued imposition of very high
duties on goods similar to those we make, or can make, within
our bounds ; or on the raw materials. (Cheers.) I invite the
most ardent free trader in public lifSe to present a plausible solu-

(15)

433

tion of this problem ; and I contend that he is bound to do so
before he talks of free trade as practicable in Canada. (Cheers.)
I have not believed it soluble in ray day ; and any chance of
its solubility, if any chance there were, has been destroyed by
the vast increase of our yearly charge, and by the other condi-
tions which have been created. The thing is removed from the
domain of practical politics. In their discussions the Tories say
that Mr. Mackenzie's was a free trade tariff. I will give you high
authorities to the contrary. As a fact, substantial duties were
laid on almost everything which we could make at home ; and
Mr. Mackenzie increased those duties beyond the rate at which
they stood when he took office. Sir Richard Cartwright has
lately stated that he contemplated a still further increase, and he
• was right. Subsequent experience has demonstrated the fact
that the

CIRCUMSTANCES REQUIRED THAT COURSE.

Now, let me (juote my authorities. Mr. Whito, the present Min-
ister of the Interior, speaking of a tariff constructed on the same
general basis as Mr. Mackenzie's, said : —

A fifteen per cent. tari/T means mure thun fifteen per cent, protcotion to
manufacturers. There is the cost of the transport of goods from the other
aide of the water, which amounts on an average to at least five per cent.,
80 that there la now a protection equal to 20 per cent. That ouyht to be
sufiioient for any industry suited to the country, and, as to others, it would
be unwise to attempt to sustain them by fiscal pr<>ps.

Sir John Macdonald said, in 1876 : —

My hon. friends laughed a good deal at the expression '* Incidental protec-
tion." They say it is a contradiction in terms. It is not so. It will be ad-
mitted, I think, that the increase of taritf from 15 to 17| per cent, was a
revenue increase imposed for the purpose of raising $3,0u0,000. It was a
revenue tariff, but was it not incidental protection to our manufacturers to
the extent of 2^ per cent. ? It raised a revenue of $3,000,000, and

INCIDENTALLY PROTECTED OUR MANUFACTURERS

to that extent, and I would venture to say that if the Government had come
down with what was understood to be the./ policy — an increase of the tariff
to 20 per cent. — it would have caused a substantial increase in the revenue,
and been an additional protection to our manufactures to that extent. It is
true you may go beyond the proper limit in taxation. You may tax so high
as to diminish consumption, and thereby not effect the purpose you desire.
The more expensive you make an article, the greater the tendency to diminish
consumption. But if you go to a certain point you increase the revenue and

Srotect the interest of the manufacturer of the articles on which the increased
uty is put. You may not get a revenue in proportion to the increase of
duty, still there will be a positive increase, though not to the same extent,
and by having that increased duty you give confidence to the manufacturer.
You increase the wealth of the manufacturer and the prosperity of the work-

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434

ing classes, and you enable them thereby to consume other dutiable articlet
that will more than make up any loss that may be experienced by the increase
of duty, provided that increase be nut of such an ex^/ont as to be prohibitory
and destroy the Collection of the duty for revenue purposes.

Again, Sir John Macdonaid said in 1877 : —

Although the Prime Minister (Mr. Mackenzie) is a free trader ....
he has stated that it is not possible to introduce a free trade policy to the
full extent, any more than it would be possible to introduce a policy of pro-
tection to the (xtont demanded by its advocates. I had hoped that as he
holds such an opinion, which agrees very much with my own, some attempt
would have been made to steer a middle course ; that, while not abandoning
the principles of free trade, but admitting that the case of this country was
exceptional, and that free trade in the abstract would not be carried out satis-
factorily to the fullest extent, the Government would have shown a disposi-^
tion to aid the impoverished national industries in their scheme of taxation.

And Mr. Mackenzie in reply said : —

My hon. friend has stated very correctly the position I have taken — that is,
that we have not really the questions of protection and free trade as political
principles of action to define or expose in this country.

I beg you to weii^h those words of the Torj'- Ministers ; they are
very important compared with later utterances. Now, the only
commodities to which the men who pretend such alarm about a
radical re- construction of the tariff point, as available sources of
taxation, are tea and coffee, the duties on the breakfast table,
which they impudently boast they have made free. They have
not made it free ! Far from it 1

THE ODIOUS AND OPPRESSIVE

character of the sugar duties has taken out of the consumer's pocket
more than used to be taken out of sugar, tea, and coffee altogether.
(Loud cheers.) And nothing but a grave emergency would justify
a tariff which should on the mass of these articles seriously in-
crease the consumer's charge. But at any rate, duties on tea and
coffee would be little more than a drop in the bucket ; they have
not produced more, if I rightly remember, than a million and a
half. What is that out of twenty-two millions ? About one-fif-
teenth part ! The main burden would, even were those duties
added to the piesent exorbitant sugar duties, remain to be borne
as now. So much for that. (Cheers.) Something, and something
considerable, we may hope to effect by economy and retrench-
ment ; but, after all,

THE ENORMOUS PERMANENT CHARGE

■vrhich the Tories have imposed on us greatly limits tbc possibili-
ties of reduction ; our work on this line must be largelv to put on

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435

:et
ler.
lify
lin-

bve

Ifif-

,ies

-ne

lili-

lon

the brakes,and check the frightful rate of increase which the Tories
have made systematic ; to check it, as Mr. Mackenzie succeeded in
doing between 1874 and 1878, (Cheers.) And all we can do will
still leave the necessary taxation far, far higher than it ought to
be. It is enough to say that wc levied thirteen millions of Cus-
toms duties in 1875, and the Tories fin 1 twenty-two millions ne-
cessary now, an increase of near seventy per cent, in the volume
of revenue from Customs ! I have only to repeat in the most em-
phatic language my declaration that there is, in my judgment, no
possibility of a change in that system of taxation which I have
described, the necessary effect of which is to give a large and ample
advantage to the home manufacturer over his competitor abroad,
(Cheers.)

Some may rejoice at this condition ; some may regret it ; but all
candid and reasonable public men must admit that, after all, it is the
condition ; and

THIS IS THE VITAL QUESTION.

(Cheers.) Such being the condition, we have repeatedly declared
that the real issue is on some of the details of the tariff, whether
it be perfect, or defective afTd unjust. Such being the condition,
the aim of every man ought to be to make the best of the situa-
tion, and to see that the tariff does as little harm or as much
good as possible; is, as far as may be, fair and just; retards as
little, or promotes as much as possible, the general welfare.
(Cheers.) In 1882 we proposed certain changes which we thought
suitable to the case. What was the case ? There was an enor-
mous surplus of revenue, and there was every indication that the
Tories intended to exhaust this surplus by extravagant increases
of expenditure. We considered that sound principles of econ-
omy and finance called for the reduction of the excessive surplus
by a lowering of taxation, and not by an increase of expen-
diture. (Loud cheers.) We thought there was room for a great
reduction; we believed that advantage should be taken of the
occasion, and we proposed certain reforms. What were they ?
For their nature I refer you to the passages 1 have quoted from
my address of 1882. Since that day marked changes have occurred.
The predicted results of the Tory policy have been realized ; and
the condition of the country in reference to manufactures, to in-
vestments, and to transportation arrangements has also altered.
No man should ignore in argument the results of these changes ;
they

CANNOT BE IGNORED IN ACTION.

(Cheers.) I have not ignored them. Refer to the extract I have
already read. There is nothing there — I could not honestly say

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436

anything — as to the removal of the tariff of duties having a pro-
tective operation in order to the substitution of free trade. 1 have
shown you that this was not possible before 1873 ; that it was not
possible during Mr. Mackenzie's time ; that it was still less pos-
sible in 1882 ; and that it is far, far less possible now even than it
was in 1882. Tliat being so, I could not honestly propose to ac-
complish the impossible. It is not said there — I could not honest-
ly say now — that in the changed situation I should propose
to execute all the details of all the suggestions of 1882 ; their
principle was sound ; but their full execution seems to me no
longer possible; and, therefore, 1 could not properly propose it
now. Let m 3 repeat what I said the other day : —

Therefore, the execution even of those measures ol loadjustment, which I
suggested in that address, nad which we had proposed in Parliament in the pro-
coding session, wouid be found muih more dillicult to-day by reasom of the
changed condition of affairs. We have no longor a large surplus to dispute
of — we have a large deficit, and a greatly increased scale of expenditure to
meet. And it is clearer than ever that a very high scale of taxation must be
retained, and that manufacturers have nothing to fear.

Again : —

1 then declared that any readjustments Aould be eflfected with due regard
to the legitimate interests of all concerned. In that phrase " all ooucerneii "
I hope no one will object to my including as I do the general public. In any
readjustment I maintain that we should. lo< k especially to such reduction of
expenditure as may allow of a reduction of taxation, to the lightening of sec-
tional taxes, to the lightening of taxes upon the prime necessaries of life, and
upon the raw materials of manufacture, to a more equitable arrangement of
the taxes which now bear unfaiily upon the poor as compared with the rich,
to a taxation of luxuries just so high as will not thwart our object by greatly
checking consumption, to the curbing of utonopolies of production in cases
where by combination or otherwise the tarill' allows an undue and exorbitant
profit to be exacted from consumers, and to the tffort — a most important
point — to promote reciprocal trade with our neighbours to the south.

Again : —

It is clear that home competition in this and in other cases cannot be de-
pended on to keep down prices ; and the only safeguard, both for the manu-
\ facturers themselves, who have witnessed in these instances the disastrous

I results of high protection, and for the general public, who, in the early stage

of inadequate supply, and again in the present stage of ironclad combination,
are calltd upon to submit it> the full burden imposed by the tariff, is to take
care that the tariff is not so inordinately high that the monopolist, whether
he is such by virtue of there being no other manufacturer or by virtue of a
combination, shall have it in his power to take too much out of the general
public. (Loud applause.) A great deal we must allow him to take, but the
rates (as I have pointed out on former occasions), which this tariff in some
industries allows to be taken, are altogether excessive and inordinate.

You see that I directed attention to specified evils, those of inor-
dinately high duties in certain cases, and of unjust duties as be-
ds)

437

tween rich and poor, evils which I thought and think ought to be
redressed as far as may now be possible, though our power even
here is greatly limited. You observe that coming to details, I no
longer, tor my own part, saw iny way to propose absolute freedom
in commodities, which in 1882 might have been made free. Candor
obliged me to speak, no longer of " abolition," but of a " lighten-
ing," of taxes on some necessaries. That was all I thought now
])racticable, and the same idea I presented at Welland and else-
where, when I spoke of the "reduction," and not of the "aboli-
tion " of such taxes. As I shall show you presently, it is

NO PART OF THE DUTY OF A MAN IN OPPOSITION

to frame the details of a tariff, and if I depart even a little from
that line for a moment, and express an opinion on one detail, it is
only because in 1882, a specific proposal was made. I may say,
then, that my personal opinion is that we should at all risks dis-
pense with the odious and heavy tax on corn flour, upon which
certain of the poorer classes in the East, who cannot afford wheat
Huur, ai'e actually obliged to pay a heavier tax than their richer
neighbours pay on their superior food. But as to wheat and wheat
flour I think that the changed conditions point rather to a reduc-
tion of duties, with a readjustment of the disproportion between
the tax on wheat and that on flour, than to a total abolition ; and
so of coal. Therefore it was, that being unable to promise any-
thing which I did not see my way to perform, 1 spoke of " light-
ening," of " reducing," rather than of abolishing this class of tax-
ation. (Cheers.) I am not blind to the fact that in many cases
the conditions of trade and manufacture, the investments of
capital, the establishment of industries, the great and often over-
ruling question of transportation rates, and other circumstances
present important, complicated, and difficult problems, which must
be grappled with before changes are made.

Therefore, I declared the other day, when speaking of my plans :

That is a modest programme, you may say, but I believe it to be an exten-
sive programme, representing the full measure practicable of attainment, and
which can be fulfilled only by much expenditure of time and thought, after
full investigation, careful inquiry, and ample consideration of details and of
the bearing of each proposal, witli the advantage of all those materials for
forming a judgment on details, which are available ouly to men in othce.

I am not going, as I told you, to attempt the task of making up
a tariff in Opposition. It is impossible ! Sir John Macdonald bas
acknowledged it. In 1878, Sir John said : —

The First Minister (Mr. Mackenzie) very truly said some years ago, that
they (the then Opposition) were not called upon to find a policy for the country;
that the responsibility of finding such a policy rested with the Ministry of

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438

thtt i^ay ; and that the constitutional duty of the Opposition was to oriticisfl
the • .iniatration and legislation uf the (luvernment, t« hold them in chock,
to wai.. them when they were going wrong, to censure them when they had
gone wrong, and generally to criticise and observe upon the course of admi-
niatrution and legislation. If the Opposition chose to take a further stop,
they niiig'ht do so certainly; but it is not forced upon them, and it is not
forced upon them in reference to any subject. It is not forced upon the
Opposition to find a new policy with regard to matters of revenue, and tariff,
and expenditure ; they could not, of course, because they have not the power
to do so. As fur as matters of tariff are concerned, it is impossible for the
Opposition to enter into detailx, or explain before the House and the country
their policy ; they have not the materials ; the Oovemmtnt alone ha.\o the
opportunity, and the only opportunity of coUecti/g the facts upon which a
tariff can be formed.

The Finance Minister has already informed you that even with all the
matiTialrt he has at hand, it is not an easy matter to form the tar.tf ; and it
would be presumption in the Opposition to attempt to do so. 1 shall there-
fore confine myself to general principles.

I quite agreed in that view then, I act upon it now. I be-
lieve that, even when in Government, time, investigation, in-
quiry, a full opportunity to every Interest to state its views and
bring forward its facts, an intelligent appreciation of the bearings
of the case, as they exist at the time, and of the multiform con-
ditions by which we are sui rounded, are absolutely essential pre-
liminaiics to a decision upon details.

And I will for my pai t

NEVER CONSENT TO ANY CHANGE

which shall not be preceded and justified by such inquiry. Our
adversaries talk of us as about to act like a bull in a china shop,
knocking down all the crockery on the shelves. (Laughter.) We
have no such intention^ We have more sense. (Cheers.) What
an absurdity it would be not to recognize existing facts, not to
avail ourselves fully and freely, with frank and unprejudiced
minds, of all the knowledge and all the experience which has
been accumulating ; not to direct our course by the light so to be
gained ! (Loud cheers.) Lastly, I have always recognized the

GREAT IMPORTANCE OF STABILITY IN TARIFFS;

it is one of the most material things. I have witnessed with pain
and regret the constant tinkering with the tariff which has gone
on for the last few years. Much of it might have been avoided
by proper care and inquiry before action. 1 think changes sho.uld
be as few and as infrequent as possible ; and should nevtr take
place save to secure a substantial public good, or to remove a
serious public evil. It is on this piinciple that I should deal with
questions of change. (Cheers.) We have not, as I have often

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439

explained, any of the animosity charj^ed upon us ngainst manu
facturers. Many of the most intelligent and prosperous manu-
facturers are Reformers ; and, notwithstanding the

STilKNUoUS AND SOMKTIMES UNWORTHY OPPOSITION

of some of that class, we retain a kindly feeling and interest in
its success. (Cheers.) We desire to give all due consideration to
its legitimate interests. But, as I said the other day, we must
consider the public interests; and where those interests may bo
opposed to exorbitant demands of some members of a class, wo
must decline such demand.. (Loud cheers.) I believe the true
and permanent interests of the several classes are reasonably I'e-
concilable. (Cheers.) This reconciliation should be our aim ; and
we have shown our desire to subserve the real interests, at once
of manufacturers and of the public at large, by striving for a re-
duction of tlie duties on raw materials, and for facilities for ob-
taining an enlarged market abroad, so as to provide the main re-
([uisites for cheap, regular, and profitable production — low-priced
raw materials and a widely spread and iai'ge consumptive de-
mand. (Cheers.) I have said that there are, even today, after
all our losses of 78, many manufacturers in the Reform ranks ;
and I believe that some of those who left us are now disposed to
return. (Cheers.) We will welcome them back ! (Loud cheers.)
But, in their desparation, the Tory i)arby has concerted a scheme
under which a strenuous effort is now being ma<le by Tory politi-
cians, and Tory manufacturers, who are, some of them,

Ls
le

MORE 5IANUFACTURERS OF POLITICS

than anything else — (cheers and laugh tei) — to frighten or per-
suade our present friends to leave us, and our former frieuils to
keep away. They disavow party action ; they are acting under
false pretences ; but I know them, and denounce them now !
(Cheers.) No gi'eater compliment than this was ever paid to the
integrity and justice of a political l)arty ! So confident are these
men of the fidelity to principle of the Liberals, that they are ready
to run the risks involved in settino- all the manufaeturinjx class
on one side, and the great Liberal party on the other side of poli-
tics ! They are riglit in believing that even if they did succeed
in setting us face to face in hostile array with the solid body of
the manufacturing class, we would still strive to do them justice.
(Cheers.) But I should deeply deplore such a result ! (Cheers.)
I have ever endeavoured to prevent a cleavage in politics by
cla.sses. (Cheers.) It is bad for the commonwealth ; and it is
worse for the class. (Loud cheers.) Such a situation

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440

/. . COULD NOT BUT BE HURTFUL TO BOTH SIDES.

It would leave the Liberals without that advice and informatioD^
that sympathy, support and encoupageinent which are important
factors in the conduct of a party and the framing of the details of
a policy ; and thus it could not produce a beneficial result on the
cause it is professedly designed to serve. (Cheers.) I say pro-
fessedly ; for

THE PROFESSED IS NOT THE REAL CAUSE.

(Cheers.) The real cause to be served is not that of the manufac-
turers, but that of the Tory party. (Loud cheers.) The scheme,
if it succeds, may indeed help their desperate cause ; but it will
not avert their doom ; it cannot give them a victory ! (Loud and
prolonged cheers.) We shall win whether these unworthy tactics
s\]cceed or not 1 (Renewed cheers.) We shall win in our struggle
for the preservation of the national life! (Cheers.) We snail
win anyway ! But I hope and believe that we shall win with
the support and assistance, and thus with the continued influence
on the fortunes of the party and the policy of the country, of old
friends returned to us, as well as those of that great interest who
have up to this time remained faithful to the Liberal cause, and
who, I am assured, will not be induced by the false pretences and
fraudulent devices of the enemy to desert our colours now, just as
we are closing our ranks for the last assault upon our discredited,
demoralized, desperate, and half-beaten foes. (Loud cheers.) No f
We shall win with the help of all Reformers of all classes ; and
having so won, we will, by their continued help and with their
cordial support, give at last to our common country a broad and
comprehensive, a truly national policy. (Loud and prolonged
aPplause.)

\ ., '.' 'i-:

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