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PULLED rROM THE PROCEEOINGS OF THE MEETING
OF THE MANUFACTURERS ASSOCIATION OF ONTARIO,
HELD IN ST. LAWRENCE HALL, TORONTO,
NOVEMBER 26+26, 1876

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I'l '

MEETING OF THE MANUFACTURERS' ASSOCIATION
OF ONTARIO HELD IN ST. LAWRENCE HALL,
TORONTO, NOVEMBER 25, 26, 1^75.

The Secretary of the Assoolatlon was re-
quested to oomraunicate with Mr. William Dewart,
of Fenelon Palls, Ontario, and secure, if poss-
ible, his consent to publish in connection with
the proceedings of this Convention his articles
appearing in the "Montreal Illustrated News" on
"Protection for Canada. " The Secretary having
secured the consent of Mr. Dewart, his letters
appear in this pamphlet.

Property of -

Robert Dewart,

^1 Alliance Ave, ,

Rochester, N. y[

^X-^-

«,

*^ -f I ha
i6T the

xi r Wii.K.

\f, W. BKr

• -/ "Eo. y
w.

•if /"

Som(
Ontario,
the 25tl
depressii
healthy :
parts of
assemble
Among
Wilby, J
Wilby, I
Cowan,

JBenjamii
A. K. I
Sutherla
\ Toronto

«M

■«M

^^^rtufacturcrs' (^S50ciation of ©ntart0.

"■ Toronto, Ont., Z?ff^w^rr 3rd., 1875.

;*' 7. I have the honour to transmit for your information a Copy
'bf the Preamble and Resolutions passed at a meeting of the
M*''ii';facturers' Association of Ontario, held in this City on the

,//w. B,and 26th of November.

WlI.R.., ^

I have the honour to be.

|r W. BKf

- Ant" "*

Your obedient servant,

W. H. FRAZER,

.'»' >i

•iMI

Some weeks ago a circular was issued to the manufacturers of
Ontario, asking them to meet in St. Lawrence Hall, Toronto, on
the 25th of November, to take into consideration the present
depression in trade, and the best means necessary to restore it to a
healthy state. Accordingly, a large number of gentlemen from all
parts of the Province and some from distant parts of the Dominion,
assembled at the place named, yesterday morning at eleven o'clock.
Among the manufacturers present were : — Messrs. H. T. Smith, E.
Wilby, James Morrison, John Cape, John Fensom, F. E. Dixon, O.
Wilby, Hugh Bain, Robert Bain, A. Dredge, C. H. Warren, R. L.
Cowan, J. S. McMurray, W. L. Matthews, Robert Barber, jr.,
Benjamin Lyman, VV. H. Howland, William Wrigley. John Turner,
A. K. Lauder, Thomas Saunders (of J. and J. Taylor), R. W.
Sutherland, John Ritchie, jr., George B. Stock, E. Gurney, jr., of
Toronto ; L. H. Brooks, Stephen King, J. H. Davis, H. Burkholder,

T«'-\-

VVm. Edgar, James IMcArthur, Wm. lUirrows, J. N. Tarbox, S. E,
Townscnd, and A. Janiicson. of Hamilton; George Mocehead,
London ; John Wardlaw, W'm. Young, J. G. Mowat, Robert Scott,
Gait ; Robt. McKechnie, Dundas ; VVm. Jiarber, Robert Barber,
senr., J. S. Statten, Streetsville ; William Jiell, Wm. Wilkie, John
Jackson, Guelph ; J. Riordon and R. H. Smith, St. Catherines ; S.
B. liradshaw, J. McClung, W. U. Horsey, Bowmanville ; John R.
Barber, Georgetown ; Thomas YVmbrose, William Craig, J. G. King,
Port Hope ; A. S. Whiting, W. T. Cowan, Oshawa ; Young,
McNoughton S: Co., and A. T. Higginson, Montreal ; H. Farring-
ton, Norwich ; ' 'outh, I'ort Dover ; Geo. Smith, We.ston ; E. R.
Shorey, Napar vV. Ramsay, Orillia ; James Smart, Brockville ;

B. Rosamond ... Rosamond, Almonte; N. V. Brown, Whitby;
John Ross, Norval ; T. Despona, Springfield ; Robert Waugh,
Ancaster ; Robinson & Robertson, Harriston ; Waite & Dolan,
Merriton. There were also prisent during the day Mr. John
Macdonald, iM. P. ; Hon. J. l\. Robinson. M. 1'. ; Mr. Samuel Piatt,
M. P. ; Professor Goldwin Smith. Mr. W. A. lH)stcr an^ Mr. 1\ C.
Capreol, of Toronto; Mr. /\. T. Wood, M.P. and Mr. Ai. Irving,.
M.P., Hamilton ; and Mr. W. A. Thompson, M.V., Welland.

ELECTION OV CU. AIRMAN.

On motion of Mr. B. Lvman, Mr. W. H. Howland was^e"* j^ed
Chairman of the meeting. H

The ClIAlRM.VN made a few remarks expressive of his sense of
the honour of being elected to so impf)rtant a positicm, and hoped
all the proceedings would be conducted without party or political
feeling, and without exaggeration, and solely from a business point
of view.

APrOlNTMKXTS OF CO.VIMIT'IKES.

The following standinr^ conimittcvs wcr(^ then appointed : —

Rcso/itliotis und Order of J!tis!i:rss — Messrs. Booth, Smart,
Staunton. W. Hell, Rosamond, J. R. Barber, T. B. liickle, W.
Barber, C. H. Warren, \\. C. Jones, 10. Gurney, Ji. Lyman, Lavignay,
and S. R. Michen.

Finance and Or,^anhaticn — Wm. Mickers, R IL Smith, John
Riorden, S. Jj. l')radshaw, A. POlliott, T. N. Gibbs, W. Craig, Irving,
and L. H. Brooks.

The meeting then adjourned till the afternoon.

AFTERNOON SESSION.

Mr. HOWLANI) took the chair at about tlucc o'clock. On doing
so, he said he was sure they had all felt, since the last meeting of
manufacturers, that there had been a great change of opinion

arbox, S. E.
Moo'-ehcad,
obert Scott,
Dert Barber,
Vilkie, John
thcrines ; S.
e ; John R.
,J. G. King,
/a. ; Young,
H. Farring-
iston ; E. R.
Brockville ;
n, Whitby;
crt Waugh,
e & Dolan,
y Mr. John
aniuel Piatt,
1^ Mr. F. C.
. AL. Irving,.

was^e) l^cd

his sense of
, and hoped

or political
usiness point •

ntcd : —
otii. Smart,
liickle, W.
n, Lavignay,

Smith, John
raig, Irving,

^ke ^^Irtuufacturcrs' ^ssQciation of (Dntitria.

OFFICERS FOR 1875.

Jamks Watson, Esri.

B. Lyman, E.s(|

M. Staitnton, Es(]...

John Gciiuion, Rsii... .

John Tiunku, Esii

W. H. Hdwi.ani), V,Ai\.
W. B. Hamu.ton, Ks'|.
R. W. Kl.l.ioT, Ks(|.

PRESIDENT.
Knitted GooiIh Hamilton.

1st VICE-PRESIDENT.

.Messrs. LyiiiHU IJros (Jluiiiiicnls Toronto.

2nd VICE-PRESIDENT.

.Messrs. M. iiituunton At, Co I'iiper Stninors Toronto.

EXECUTIVE COMMITTEE.

.Messrs. (Jonion A: M.'irkay fJolton Mills Toronto.

. " .(oliii 'I'linn-r A: Co Uools luiil Shoes "

" Howland & Son n.inlware "

lioots and Shom "

. '• ElliotctfNi Clu'iiiicals "

John McI'iikuson, Escj...

R. M. Wanzkii, Ks(i

W. E. SaNKOIU), Esi|

- WlI.KIK, BIsi]

W. Bki.i,, FIsii.

.folin Mrl'liiTson ife Co. lioots and Slioes Ilaniilton.

K. M. Wiiii/.ev dt Co Sewinu' Mai'hines "

Saiit'ord, IJicklev itVailClotliiii'.,'

Wilkie I't i><liorn Setting; Maidiinos Guelph.

W. Ifill.tCo Or-ans

:. On doing

t meeting of

: of opinior

Oko. MoouKiiKAii, Es(|. ..Moorelicad .MaMurai^turinK Co...Kurnituru Lomlon.

J. Watku.man, Es(| Messrs. Wateiinan .t liro Oil "

John Rioudan, Ks(| .^.Maniilr. of l'ai>er St. OatliarineB

}i. H. SMirn, Hsii ManiilV. ofSaws "

Ar.K.\. Au.MiTAiii;, Esi] Men'liants' Salt Co Salt .Seal'ortli.

W. Cowan, Es(| Wliitiuu' .M.uuiliutiirio'.^ Co Edf?e 'fools Oshawa.

W. MAiVlin.i.oi-iJH, Es<i..\V. MrCiillou;,')! vt Soil Sa. idle Trees lirookville.

Andiikw Em.iot, Es(i Elliot, Koiitli it Slieard Wo(dlens Almonte.

— McKkcmmk, Ks([ MeKecliiiie it Bertram ". M.ifiliinery Dundas.

ROBKKT Hakukii, Ksii-. ..Barlier !5ros .V Woollens Streetsville.

John Ahki.i., K.s(| Auriiultl Iiiiideni't.s Woodbridge.

Wm. Ha.mii,T(in', Jr., Esi|. \V. Hamiltoi. ,^ .-^lU Mueliiiiery Toronto.

Tlios. LAit.i;y, Ks(| Tlios. I, li ley it Co iMotliin'; "

Gko. BdOTH, \\>'\ BnotliitSnh Brass Kounilry "

John It. Haimh:!!, Es(|....\V. liavli'C .t Hvo I'ajier Geoi<;etowu.

Thos. Mini, \\<i\ Loiicl.iii Car M-iiil'.;'. Co London.

I). Wir.liV. l';s(| Siiiitli.t Williv Woollens Toronto.

R. Hay, Es.| 1!. Hay it Co' Fiiniitiire "

J. htwrN, Es(i Irwin it Marsliall Maelimery "

TREASUnER.

Edwaud GrnNEY, Jnn Toronto.

SOLICITORS.

Messrs. HAnni.soN, O.si.ku .t Moss Toronto.

t||^4;> CORRESPONDINQ SECRETARY.
W. IL FuAZKii Toronto.

RECORDING SECRETARY.

.John Maclkan Toronto.

OFFICE— 37 SCOTT STREET, TORONTO, ONT.

■ym-

«tw •••<%

Hon, Alexander MacUeuzie was present j
at a concert of the ^lontroal Workingnien'ii
Mutual Beueftt .Society lost ovculng, ami
in an aiMrcns to t}ic audience attributed
tlie de]ire88ion to luitural ouucs.

IMVOUTINll AMKKK AN < AIJCOKS. jf^'f^

Suinidcs of calicoes woven in America are
lieing offered, sayn tiic J.li'eriiool Conrl'-r,
*.. largo drajMsry liouseft in fxiudou at rather
lower ])rieea 'thtm ' the LuiOMbira uiarkf'
can 1)0 l»onght f^r. Tlic <|Ufility ia eou-
Hideied geniTally to lie ijiiiti; e(iiuil to'^u
lionie-niade calicoes. '^iCc^i^ ^^^ /f

/ The Orapiiie 'iiyiir— For the 1m* h»W
ONttvry »tio cWft ambition of B»v»go nktuns
bH beett to obian modtrn wo»poM wad
•' fixed »mmiuiltlon," *n\ ohiofa both on tWa
oontliient »nd in the E«t h.ve P"*^ *<>

^ Set%;e»pci>« to Blangbter .n EaglUb d^.
tMbment, wd the CfiFree drive their Dotob
S^qoeroM down the monnUtai with braeoh.
JotOer. which those aama Du^oh lp"gM to
Af rlo* Mid Bold to them for fiw tipei their

the 'J4tli ult. II

>ormai ftcnoiu.

^//•/r J-

Lomlon Iron of the 'J4tli ult. in an
article on the dopreHsion in the iron trade
in England saya "oil hope of tliV iron rail
trade liaa been given up, " and < "the cast-
ing!i trade is no better, light cantinga from
tlie United Htates Ijcing imported into
Stad'ordHhire in increasing fjuantitica." It
adds "local inm nuisteru declare that the
local trade of Sheffield has not been in
such an unsatisfactory condition as at pres-
ent since 1 84r>. Many of the mills arc stand-
ing still, and more than half of the blast-
fnnuicea are out. " TUo Jirltish MercHutik
IJcnrllf of the same date says :— " In Aus-
tralia and New Zeftland the United States 1
liouses, we are assured, are carrying all be*
fore them, and at the present rate of pro-
giesb it will evidently not be many years
before these splendid and expanding mar-
kets are entirely lost to the maiiufacturera
and merchants of the old country." AjuI
yet Free Trade builds up while I'roteotion
crushes out manufacturing industries I 0,
vain and foolish doctrine ! '}t<4J^J^ ^^ ,

HAMILTON;

I From Our th»n Correspondent.'

TltUOWINC! OKlf THE MASK,

Ha.mu.ton, Doc. 14, — For n while th«
' T'uw» professed to be in favour of ft^tec-
I tion to home manufactures, though de-
nouncing Protection to agi*iculture aa
j .something monstrous and impracticable.
: This comoromise between Protection and
! the MacKouzie Government was but a
hypocritical homage to the farmer, and di«t
, not really impose nix<n anybody hero, bc-
I cause cvcrybotly knew that the pretended
\ advocacy of Protection was oil a pretence
• on the i>art of the Timi^. At last the
I mask is thrown off,' however, and the
, Hamilton apologist of our " fly-on-the-
wheel" GoyemmcHt no .longer makes the
pretence, even, of adi^bcating any kind of
I'roteotion at sill. Of late it has taken to
publishing items calculated to show that
(Junadian industries are all so prosperous
that not}'.in^ of the kind is needed — that it.
would bo, ui fact, entirely sujwrfluouh.
To-day it attacks leading Protectionists in
Hamilton, Tonong others, Mr. Edward
( Jurney, a life-long Reformer, who it ia
suspected has got tired of supporting a
Government that refuses to give the coun-
try the most ueedful of all reforms, Un.
derstunding that Meesrs. Mclnucs and
Guruoy have called a meeting of nianufac-
tureit» here to choose a delegate to tlm
Dominion Board of Trade, the Times tells
them that they have no power to send a
delegatiJ, and sneeringly.asks whether Mr.
Gunicy is an example of a manufactuvei-
ruined lor want of Protection. It is well
that the pretence so long kept up has been
dropped at last, and that the Free Trftd«
organ here is now out in its true colouis.

<ii lilt. Ill an
lie iron trade
if tlii- iron rail
(l( "the ciiHt-
ciMtinga from
in|K)rtc(l into
mntitics.'' It
X'lnro that the
not lieen in
■ion as at pres-
dills arc Btand-
f of the hhst-
ixh Mercantile
s:— -"In Aim- )
United Statcai'
arrying all bo^
t rate of pro-
many years
xpanding mar-
niamifacturen |
nntry." Ajid
ilo IVotection
ulustricB J 0,

MASK.

A while the
our of IVottec-
*, though dc.
a^cnlture m
impracticable,
'rotectiou and
it was but a
iivmor, and did
)dy hero, bc-
tht) pretended
Jl a pretence
At last the
vor, and the

" fly-on^the-
[er makea the
f»ny kind of
t has taken to
o shoAv that
'0 prospeiYjiis
eeded—that it.

■ SU^)Cl"fluOUl>.

itcutionists in
Mr. Kdward
', who it is
supporting m.
ive the coun-
iforras. Tn.
Mclnncs uiid
; of nianufae-
3gate to thw i
! Times tells
• to send a ;
whether Mr. /
manufacturer j

It is well
b up has been
Free Trade
'ue colouis.

LETTE R S

Letter 1.

FRi:i: TRAUK IX'ONOMY.
front the Canadian Ii.i.tsrRAi kd Nksvs, Mny 30, 1S74.

Most persons liavc read or beard of Whan;,', the Miller. 'I'lie story of his
I adventure and niisforiune will never cease to be interesting;. Were he livini^
now, there is no doiiht he would be a i'ree- Trader. I'roscnl uratilication, inunc-
diate and larjjc protit, his ruiin;^ ])assion, is the ruling passion of free-traders
•everywhere. ICcononiists of thi-< school are evir dreanun^ of treasures in fri^c-
Irade pans, and, like W'hanj;, if alloweil, would keej) on di^'^inj; until home
jnanufactures would tunil)le down in ruins.

The Southern planters were Whan;; the Miller economists and politirians.
They, too, dreamed of treasures in Free- Trade pans. 'Tiiey aimed at securing;
immediate and larj;e profits ; they sold in the dearest markets and hou^dit in theu
cheapest ; tliey despised the i)roiits and occupations of home manuf.icturers ;
thus undermining; their mills and workshops, idl war made their once o|)ulenl
country one vast scene of sutVerm^ and desolation. In wars and sie;^es, t.imii\e
shoots harder than cannon, Tiut if people see no immediate (lanj;er in a
measure, they c.ire little ahout its ef%:ts in the futmv. 'I'his an a;;e of firtSi'iit
^^ratification ; patriotism, economy, and the public safely make important con-
cessions the rulin;; passion. Present dan;,'ei- and />r,scnt i^ralilication arc the
main motives which move the multitude. The opportunities afforded b\- such
measures as Free-'Trade, for present i^^ratification, are seldom resisted by people
who have once formed luxurious tastes.

It was by protection that ];n>,dand overtook nations that once excelled her
in manufactures. She not only levied hii^h ihuics on imported goods, but pro-
hibited the export of raw material by severe pen.iltics. .She ;;ave the home
manufacturers control of the liome market in the most complete manner, till
from this solid basis they line successfuih- in\aded every (ountry in the
world. Not only tills, the competition of the home nLinuficturers in the home
market, reducetl the price of ;;oods 10 the Ihiiish jieople lower than they could
€ver have been procmcd by f.ee-tratle. .So far was the protective system carried
that she woukl neither sell lln.L;li-.h wool to foiei:.;ri manufacturers nor buy tlieir
cloth, hi the early sta>j;es of Fii-jliih niaiuifaituics the i\poiiation of wool was
made a felony b)' the common law. 'Tlie rv.n.T of a slii]), kno\\in;;ly expoilin^
wool, forfeiied '• .'ill his intiMest in tlie ship and iurnitnie." See Ad.im .Smith's
Wealth of .Nations, vol. 2 and i):t>,'i's 4ui, 493, and 4()6.

Accoidiiig to Free-'J'rade theories, ;hi ; kind of rei^triction, on the export of an
article, would cause its pro<luctioii to ce.isi', oi-, at least, decline very much. Hut
the contr.iry is the case. ICiv^l.ind is, and has been for a lon;^' time, one cf the
^Tcalest wool i)roducin;; aid wool ina'.u'.racmiiiv.f countries in the workl. — Free-
'I'radc did not make Jliitish manufcictur<.'s what ihe\ are ; l.)ut fouiul them fully
<levelopcd, excelling e\er\thiii.; else in the world, therefore it cannot be said
that their success is ilue to it. If we copy liritish co.ninercial policy at all,
cxpeclini; to attain the same results, we nu1.1t co|)y it in all its stages, in which
case we will tind, the stage of Fngliih history corresponding with our present
stage, affording graat protection to home manufacturers.

22 '-

t
If we examine the history of the United States, which, as a new countr>v
somewhat resembles our own, we will find it divided into periods of Free-Trade
and protection. During a period of protection, the government paid off the
debt of the Revolutionary war, .aid built up considerable home manufactures.
Then came a period of Free-T/ade, which drained the country of specie, ruined
the manufactures, and ended in r. great commercial crisis. Each period
of Free-Trade and protection, since that time, has produced a similar
result. What is protection doing for the States now ? Last ye?r American
manufivcturcrs were sending machinery to Ireland; and English merchants com-
plained that Americans were underselling them two dollars per ton on iron.
The time is coming when the British Government may have to throw around
their manufacturers the shield of protection once more. The present contention
between workmen and masters may bring about a crisis in the manufacturing
interests of England which will put their Free-Trade principles to the test. Men
talk bravely when danger is far off. So it is with British Free-Traders while they
know their own manufactures are an overmatch for foreigners. But let the
British markets be flooded with foreign goods, let British manufacturers be
ruined, let the country be drained of specie, and see how long they will hold to
their free-trade principles, This state of things would bring about as vigoroiis
protection as ever. Free-Trade is an advantage to England now, but it was not
so, or considered so, till it was seen that British manufacturers were an over-
match for foreigners.

Unnecessary dependence is a bad thing. The individual or nation that is-
depending, more than ordinarily, on others for any essential condition or pros-
per.'ty, is ever in great danger. Such a condition is not favourable either to-
the increase of wealth or to the preservation of liberty.

The increase in the tariff, asked of the Government by Canadian manufac-
turers, would not be a tax, but an investment in home manufactures by the
p-»ople, n-liich would return to them with a large profit in a very short time.
Goveriu 1' ':! bonuses to railways correspcmd exactly with the principle of pro-
tection io I) ji ■: 'anufactures. Free-Traders say, "Let us do without home manu-
l.icturps :b' .1 ,y become sufficiently profitable to exist without protection."'
Mo'v w>M !d 11 iuit to say, " Let us do without railways till they become suffi-
ricii'iy r^'i.': nble to pay without Government or municipal aid." Trade can be
'd- *Vee !u • .11;,; .ud for the same reason that railways can be built there without
•,uc'i 'if' .is is usually required in this countrv. Comparison between England
and Canada holds good in very few cases, and least of all in their trade relations.
We aid railways by bonuses in order to bring producers and consumers into
closer relations with each other ; and protection to home industry has precisely
the same effect.

\V. DEW ART.

Letter 2.

FALLACIES OF FREE TRADE.

From the Canadian Ili.ustkated News, July 13, 1874.

To the unthinking mind there is a charm in the word " free." What is fret
in one sense may be very costly and dangerous in other senses. As familiarity
is said to beget contempt, so freedom is very liable to degenerate into folly.
What is called Free-Trade might be called foolish-trade with a great deal more
propriety. It is bad economy. J t looks only to immediate saving or profit ; and
nothing is well done in which this is the mam motive. Immediate saving or
profit causes the farmer to crop without manuring his land. Immediate saving
or profit causes the consumer to buy and use inferior articles. In both cases,.

■MM

new countr>v
lof Free-Trade
Tit paid off the
I manufactures,
[specie, ruined
Each period
led a similar
'r American
lerchants com-
Ir ton on iron,
throw around
ient contention
manufacturing
the test. Men
!ers while they
But let the
nufacturers be
ley will hold to
out as vigoroiis
, but it was not
were an over-
nation that is.
idition or pros-
irable either to

idian manufac-
actures by the
;ry short time,
finciple of pro-
mt home manu-
ut protection."'
f become suffi-
Trade can be
't there without
tween England
tr.ide relations^
:onsumers into
f has precisely

EWART.

B74.

What is free
As familiarity
■ate into folly,
reat deal more
or profit ; and
iate saving or
iiediate saving
n both cases,.

however, it is well known that the saving, in the first instance, is more than com-
pensated by the loss in the end.

We spend money to make money. Little is ever made otherwise. When
• we increase the duties on imports, to bring about a permanent reduction in the
price of home manufactures, this is our motive. It is not partiality to home
manufacturers, as a class; but foresight and self interest which cause us to do so.
Protection is foresight. It is simply looking ".t the question in all its bear-
ings, from beginning to end. Free-trade pnuciples correspond exactly with
certain customs of barbarous tribes and nations. Persons who from age or
other illness, for the time being, are unable to keep up with the rest of the tribe
in their journeys or .'ligrations, are left behind and allowed to perish. So it is
with Free-Traders : an industry, however useful, which is temporarily unable to
compete with older and stronger industries, is allowed to perish for want of some
trifling relief. Each industry or trade for which a nation is adapted should be
made to assist all other industries, and they in return should aid in its develop-
ment. Trades or industries, like individuals, should conform more to the habits
of civilized man than to those of the brute creation, For example, if a human
being is about to perish, nothing is more common than for another human being
to afford him relief. It is otherwise with the brute creation. One beast may
starve in the midst of a numeious flock, without another offering to place a
mouthful of food within his reach. Free-Trade is an unnatural doctrine and
opposed to the higher order of nature's economy. Free-Trade reminds me of
the saying — " root, hog or die." It is well known, however, that this advice very
seldom holds good. It would not pay. There are times when it is much wiser
to afford certain ones a little extra food and care.

Protection shapes the back to the burden. If a man buys a farm, a team, a
waggon, a plough, a spade, clears a fallow or drains a field, he increases his
immediate liabilities or expenses. This, however, does not increase his poverty,
or incapacity for meeting his requirements. With such increased expenses his
ways and means for meeting them increase also. Where protection increases
the cost of an article to any extent it also increases the purchasing power of
consumers to a much greater extent. For example, this country imports thous-
ands of tons of iron annually, while it has iron ore in abundance, and wood for
fuel for smelting purposes. At present, getting rid of the wood is an expensive
operation in farming ; but were the mines being worked it would become a source
of profit. Frequent changes in the tariff and the advocacy of Free-Trade prin-
ciples are what prevent capitalists from engaging in these enterprises. Till a
settled protective policy is adopted, all these enterprises will be neglected. If
protection tended to withdraw capital from agriculture or other exiSiing indus-
tries it would be different ; but this is not the case. Where capital or labour is
thus drawn, it is from the foreign countries which would have supplied the goods
in the absence of protective duties and home manufactures. Thus if we exclude
any portion of American manufactures and replace them with home manufac-
tures, the capital and skilled labour required to do so will come from America
directly or indirectly. It is only a question with us where our workshops will be.
If work will not go to the workshops the workshops will come to it. When J. &
P. Coats were prevented by the duties from sending their thread to the States,
they simply established a factory there by exporting capital and skilled labour
for the purpose It i'^ the capital and skilled labour of foreign countries we-
want, not their manufactured goods. It is only by rendering the latter unprofit-
able that we can get the former. Protection, in a country like this, puts every
industry into healthy operation. It brings more emigrants than all the agents
Government could employ. Better still, it keeps them here when they come.
This is not the case under a Free-Trade policy. Emigrants brought here now,
at the public expense, are known to go right over to the States for want of the
very conditions which home manufactures would supply. With protection we
have work for all classes ; with F>ee-Trade we can employ little lore than agricul-

L- 'fk

,<M"

■I

'ifrt'miWrttir

tural labourers. No large stream of emigration will ever set into our shv es
till we have employment for all classes. The agricultural labourer will follow his
mechanical friend. We want a larger home market for our own produce. For
this purpose we want emigrants capable of producing what we now import.
There are persons in England who oppose emigration. It is not long since Mr.
Roebuck, iM. P., said in a speech, that he hoped " England's family of children
will still cling to her, and that he holds to be a dastard any Englishman who
inciter them to seek a new home across the sea.'' Now, every manufacturer in
England is naturally opposed to emigration and will be, so long as our tariff
permits him to sell his goods here with profit. But raise our tariff, so as to
enable home manufacturers to undersell him, and he will immediately come here
with both capital and skilled labour. If we want to draw immigration we must
also draw the capital which is employing those emigrants where they are now.
If that capital comes, emigrants will follow without any effort on our part.
On the other hand, if we get the emigrants to come without the capital, we
cannot keep them when they are here. Cheap labour is essential to English
manufacturers, and for this reason they discourage emigration, especially of the
bettor class of skilled labourers.

W. DEW ART.

Letter 3.

FREE TRADE PRINCIPLES CONSIDERED.
From the CANADIAN ILLUSTRATKU NEWS, July 4, 1S74.

Mr. Disraeli classihes politics and economy under two heads, which he calls
"cosmopolitan" and '"national." No more distinct line was ever drawn or
clearer definition given. These two ideas have contended for the mastery in all
ages. The former is the basis of communism, socialism, Free-Trade and free-
love. The latter is the basis of private property, the .amily institution, and real
human progress.

Communism, socialism, Free-Trade, and free-love are all embraced in the
cosmopolitan idea. From each one of these ideas it is but a single step to any
of the lest, in the present st:ite of society. A time may come when some of
these ideas could be adopted ; a time may come when all might, but to say the
least about this cjuestion, that time is still very far off. My more immediate
object, however, is to show th.u the present, at all events, is not the time for
adopting any of them.

Nations require to be thorough in their progress as well as indi\iduals,
Suppose a pupil should skip a rule in arithmetic or grammar to catch up to a
higher class, what would be the consecjuence? li would probably emiiarrass
him ;U e\x'ry sLi'.Jseq'ient step, and cause lilm to fail entirely at the examination.
Now. nations iiave examinations as veil .is ii'diviiluals, and, to succeed, each
must skip nothing, mtist h" thorough, iintst master every tule a,- it ^oes along.
Utile; wise it may exist, but cm win no pri/.e. It will belong to t)ie " tlragged
lip " (.r ■' down trodden "' class just as the interest kS its successful rivals dictate.
\Vhcn you see a nation helplessly tossetl about \ou may be sure it has bki);ned a
rule in its national discipline somewhere.

I will now call home ina:ui!'aclures a rule in national (lisci])line. No nation
can sl;ij) tiiis rule witiijut paying the penally of defeat in the tlnal examination.
No v'alo in arithmetic is more essential to the thorough c:iim])rehension of the
subject than home manufactures is to solid national progress. If a nation skips
home manufactures in order to overtake a free-trade movement, along with more
advanced nations, it will be suie to sutVer a crushing defeat in the t'lrsi contest

for iv.ize
any rule
if you c'
The
never sa
at home
trymen
party is
him to V
his own
Cos
^ ' opposec
duty on!
is traito
Let
without
and stas
Th(
is not 1
order, a
Th
parley ;i
retires
politan
would
egotisti
howeve
Co
Few su
one sid
bv ther
The pr
one sic
render
?lence
reciprc
those N
be tau
govern
revoUi
follow
};rce?
N
the in
paliiic
varicn
adopt
wouli
factoi
nun 111
iinpo
tices

who
if w;
thel
-did.

.-'U-maif^^r'

nto our shv es
■ will follow his
produce. For
e now import.
Ion- since Mr. '
ily of children
it,'lishman who
laniifacturer in
;is our tariff
tariff, so as to
tely come liere
ition we must
they are now.
on our part,
le capital, we
lal to English
lecially of the

EWART.

•Iiich he calls
er drawn or
iiastery in all
ade and free-
ion, and real

raced in the
- step to any
lien some of
lit to say the
2 immediate
:'ie lime for

indi\iduals.
Itch up to a
' embarrass
•vamination.
ccccd. each
,U'>es alonj^-.
L' " dra--ed
■als dictate.
' -^!<i|;ned a

No nation
ainination.
sion of the
ition skips

\\ith more
I'si contest

for prizes. Let us overtake those ahead of us, by all means, but not by skipping
any rule of national discipline or progress. Build up home manufactures, then,
if you choose, fall in with Frec-Traile mo\ ements.

The nation whose affairs are entrusted to men of cosmopolitan ideas is
never safe. Cosmo|)olilanism just amounts to this, " saints abroad and devils
at home : "' persons who flatter and please strangers but oppress their own coun-
tiymcn. The cosmopolitan parleys and temporizes with the foe till his own
party is surprised and routed. It is a species of vanity, and this vanity leads
him to be more solicitious about the good will of strangers than the interests of
his own country.

Cosmopolitanism is also j. species of meddlesomeness. It is diametrically
opposed to close attention to cne's own affairs. They see their own interest and
duty only in meddling with other peui)le's business under various pretences. It
is traitorous to all nations and useful to none.

Let the nations which are prepared for Free-Trade have it among themselves,
without forcing on those which have not yet passed through the preparatory ages
and stages necessary to render it safe and profitable.

The advocate of the national policy is " he wlio provideth for his own." He
is not meddlesome. He attends to his own affairs, keeps his own house in
order, and avoids entangling alliances with his neighbours.

The advocate of a national policy is usually a safe sentinel. Ho does not
parley and temporize with the enemy in the face of danger, but gives the alarm,
retires and puts the country in a state of ilefencc. However well the cosmo-
politan may act after hostilities begin, if preparation were left to him there
would be no preparation at all. He does not dream of danger. He is very
egotistic, and has an exaggerated idea of his power of moral suasion. Usually,
however, his moral suasion results in nothing better than ruinous concessions.

Commercial treaties have serious drawbacks with perhaps a few advantages.
Few such treaties are ever renewed. At the end there is generally a reaction on
one side or other. The consequence is that the artificial state of affairs created
by them perish before anything is done for their preservation or cfintinuance
The provisions of a long treaty are likoly to press with sevmity, occasionrdly, on
one side or other. In fact, human foresight lacks the qualities necessary to
render the conditions of a long treaty satisfactory to both parties till the end.
Hence it is doubtful if more ecpiitable regulations could not be maintained by
reciprocal legislation. You take a treaty, as it were, " for better or worso," and to
those who deem it '' for worse" it feels like a yoke all the time. '" Men should
be taught as if you taught them not," and it would be well if thc\' couid be
governed in much the same w.iy. A commercial treaty is sometimes like a
revolution in its elTccts, whereas Jniron says, " Men, in their inno\ations, should
follow the example of Time, which innovatcth greatly, but quietly, and by de-
j;rees scarcely perceived."

\ot long ago I noticed an cditiirial i:i Tlit' lUiisli-iUrd .Wt.'.? pointing out
the inconsistency of free-trade with the practice now so CdUimon, among numici-
])a!iiics, of giving bonuses to encouiage the establishment of mnnutac tories in
variiuis jilaces. Cities, towns, and \-illages throuj^houi the whole I)oniiiiion are
adopting this melhnd to get factories within their corporations. If go\ermncnc
would adjust the tariff projjerly. every \ill;ige, town, ami city would have all the
factories needed witlnjut a sini^le Ijonus. Tl-e iJominion i.^oNtrniiirm and these
nuiiiicipaliiies are plainly working iigainst eacli other. Thus what is sa\ed on
imported goods is lost in bonusas. While municipalities are m.dxing great sacri-
fices to build up factories, government is legislating for their extinction.

The progress of free-iiadc is Oiiiv n|)paieiu ; like the progress of the pujnl
who skips a rule to overtake a class. It is doubtful whetlur Free-Trade England,
if wasted and wr.i--led and stripped of a couple of provinces, as France was in
the late war, could pay a ])roportionable indemnity as promptly as the French
did. Free-Trade we:ilth ajji^ears grc.ne; thin protectionist wcaltli, probably

■MMI

4^i^?f^

because it makes a greater shov/. The wealth of France was underrated and the
weahKof England is probably overrated. England being now, m a sense, the
banker of the world, strengthens the impression. It is the great centralization
of money in London that gives England so much power as she has in the money
markets of the world. The borrower and the lender alike look to Lombard
street to have their wants supplied.

This arises from the habit of the English people depositing their money
more freely in banks than most other people. The deposits in all the banks
throughout the Kingdom are sent to London and lent to the bill brokers^
the private banks, the great joint stock banks, or the Bank of England.
Besides this, all the banks in the Kingdom deposit their reserves in the Bank of
England, which bank lends a great part of these reserves to the pubhc. Hence,
there is comparatively no idle money in the Kingdom, except the reserve in the
Bank of England. The whole accumulated savings of the nation are in Lon-
don, and nearly always employed in some way. I'his centralization of money-
enables capitalists there to aid vast projects in all parts of the world. There is.
no such centralization of money in Paris or any part of France. The French
people do not take to banking and depositing money in banks so freely as the
English do.

They have much more confidence in the government even in the most
troublous times, than in the bank. Hence, the great wealth of France is little-
known till some emergency arises such as the payment of the late indemnity.

W. DEWART.

Fexelon Falls.

Letter 4.
LUMBER AND FREE TRADE.

From the CANADIAN ILLUSTRATED Ncws, Aug. 15, 1874.

Adam Smith says that the capacity of people to produce wealth exceeds the-
capacity of the worst governments to waste it. This may be the case on an average
from century to century, or generation to generation, but there are times at which
the waste is fully equal to the accumulation. Wise legislation is the basis of
national prosperity. The profits of the farn-icr, the miner or manufacturer, even
in the best seasons, may be swept away by unwise e.xpenditures, tariffs or
legislation. Take the lumber trade of thi;> country, fir example. A single
stroke of diplomacy has totally paralyzed it. By one wrong move profits are
rendered impracticable. A theory has, however, been tested ; but at an enor-
mous cost. This is the application of Free-Trade principles to the lumber
business. The present authorities, believing that competition, supply and demand,,
are all that is necessary to maintain trade in a wholesome state, offered immense
timber limits for sale. This, together with giving settlers power to sell their
timber at the time when the market w-as fully supplied, caused a glut resulting
in the present crisis. Free-Traders ascribe the depression to the monetary crisis
in the States. Now half the truth is usually a lie. This explanation is but part,
and a very small part, of the cause. The depression is partly due to that crisis,
but principally to bad legislation in this country. Previous to this, while limits
were oflered for sale sparingly, the trade flourished and made profits. People,
like children, often cry for what would make them sick. The lumbermen
demanded limits, and the government, like a foolish parent, gave them an over-
dose. Heucr popular demands require to be tempered with prudence. The
Reformer ni y be as much too fast as the Conservative is too slow ; and the
former failing is fraught with much more danger than the latter.

The
jThe ca
^umber
.|carious :
I It does 1
tin highe
I and to c
[ circulati
I both in
I lumbere
limits, o
Hence,
went up
cause
glutting
purpose
stimula
were ol
many, c
glutting
the nev
require
like tri
basis o
than hi
Tl

• arerag
legislai
produc
Such i
and be
or^ani

• A
adopte
the ru
binati
owner
affect
straits
will n

I tliis, i

\ worki

, impn

and I

coun

want

may

loss.

It is

jiess

mer(

reco

beer

mar

Rec

^im i fm. -^^-*-^

derratcd and the
in a sense, the
It centralization
as in the money
•ok to Lombard

■ their money
n all the banks
le bill brokers*
k of En>;land.
m the Bank of
)ublic. Hence,
reserve in the
on are in Lon-
ation of money
■orld. There is.
The French
so freely as the

|en in the most
France is littlt
e indemnity.

)EWART.

1874.

1th exceeds the-
eon an average
times at which
IS the basis of
Lifacturer, even
ires, tariffs or
pie. A single
ve profits are
It at an enor-
;o the lumber
i and demand,,
ered immense
' to sell their
glut resulting
lonetary crisis.
>n is but part,,
to that crisis,
i, while limits
fits. People,
: lumbermen
liem an over-
'ideiice. The
:iw ; and the

■■«!''

■I

I The sale of those limits has stimulated production ever since. Worse stilL

iThe capital formerly employed in handling and holding the manufactured

Jlumber was invested in limits, throwing the manufacturers on the more pre-

Icarious and costly aid of banks. Capital is not unlimited or elastic like the air.

fit does not move from one trade to another without a pull. The pull consists

tin higher interest. There is a certain amount of capital available for each trade,

' and to draw in more than this requires an eftbrt and sacrifice. "Hence, the

circulating capital locked up unproductively in those limits had to be replaced,.

both in Canada and the States, by drawing capital from other industries. The

lumberers could draw capital from other industries, to replace that invested in

limits, only by offering the banks higher rates of interest than others were dving.

Hence, a ruinous competition for all parties commenced, and the bam rates

went up to ten per cent. I will not say that the lumber trade was he sole

cause of this ; but I believe it to be the main cause. The other ef ect, the

glutting of the market, was caused in this way. It is not necessary for my

purpose, to show that the new limits have been yet touched. Their )urchase

I stimulated production on the old limits. Firms investing largely in new limits

,)'f were obliged to get some of their money back as soon as possible. This was, in

$ many, cases, done by increasing the production of the old limits ; and so far as

I glutting the market is concerned, is just as effectual as if the work had been on

I the new limits. There is something more than supply, demand, and competition

% required to regulate trade. If left to these alone, manufacturers and traders,

I like tribes and clans, are liable to exterminate each other. Legislation is the

basis of all business success. Business can no more prosper under unwise laws

than human life can continue vigorous in a foul atmosphere.

There are rich men in the worst governed countries ; but whether the
ayerage wealth of people is high or low depends very much on their laws and
legislation. Organizations, like that lately formed by the luniDermen, to curtail
production, could not be needed under a sound system of commercial legislation.
Such a system would lead each individual to pursue the course best for himself
and best for society without entering into any organization. Tlie necessity for
organizations proves the existence of great abuses or defects in the laiv.

Again, such organizations are nearly always inoperative. No rule can be
adopted suitable for all interested. Hence, the result is that one or more break
the rule and the rest gradually follow. This is the difficulty attending a com-
bination. There are, also, difficulties in the absence of organization. No mill-
owner likes to set the example of curtailment by closing his works. It might
affect his credit. People would be liable to think he is getting into financial
straits. Rather than send the impression alaroad he goes on till ruined. He
will not halt while strong, and is ashamed to halt when becoming weak. Besides
tliis, stop when he will, there is another danger. In all such suspensions the
workmen are likely to consider the act a device for lowering wages. .Such an
impression as this once created may endanger both the employers' property
and life.

Much will never be accomplished by organization. In fact weak firms will
countenance the attempt least. There arc two causes for this. First they may
want to conceal their weakness by assuming a tone of indifference. Second they
may have no way of meeting their liabilities but by keeping in motion even at a
loss. To stop and let their fixed capital stand idle may in itself be ruinous.
It is only strong tirms that are able to do this. Many a man continues a busi-
ness, and makes a living by it, long after his capital is gone. Under vicious com-
mercial laws such a person cannot recover ; but under good laws he may not only
recover but afterwards amass wealth. The lumber trade of this country has
been partially ruined by the application of Free-Trade principles ; and all our
manufacturers will be ruined also if that principle, as contained in the proposed
Reciprocity Treaty, be carried into effect.

Mismanagement always leads to increased loss, labour and expense. There

jmtm

1 I

is nnthin^' in which t'lis is more apparent than in Icfjishuion. The individua!
can 110 more escape thi effects of bad laws than tiie effects of a bad cHniUe.
Tiie trouble, loss and expense occasioned by the sale of the limits referred to
are incalculable. We may possibly have more legislation on the subject, as it is
proposed now by free-traders to put an export duty on lumber to check its
manufacture, TJiis would be a step from extreme Free-Trade to extreme pro-
lection. Lumber is said to be unprofitable now ; and they propose to make it
profitable by putting new taxes on it.

W. DEWART.
Fenfj.on Fall.

Letter S.

RECIPROCITY IN HARDWARE.
F/v//i the Canadian Illustrated News, Jan. 23, 1875.

It is heavy L;oods in which home manufacturers first begin to compete with
foreigners. These rec|uiic little skilled labour and a large quantity of raw mater-
ial. The raw material and the manufactured work being alike heavy, freight on
this class of goods affords home manufactures some protection. They can make
ploughs before axes, and axes before pen knives. In the manufactures of boots
and shoes, for example, this country ceased to import stogies long before women's
calf boots, and women's calf boots long liefore children's boots.

It is not long since these latter were imported in large quantities from
ATassachusetts ; and, notwithstanding the duties always paid, they would still be
imported but for the increased taxes caused by the war in the States. The
ostensible argument of Free-Traders is that Canadian manufactures can com-
pete with y\mericaii. I admit they can in some kinds of heavy goods ; but the
quantity of American manufactures on the shelves of hardware stores in the
Dominion show that they cannot do so in light goods. It shows, also, that even
English manufacturers cannot stop the importation of American goods into
Canada.

Notwithstanding this, FrccTiaders tell us that American manufactures are
ruined by protection. Take lish hooks, for example. I have been selling fish
hooks for thirteen years, and never saw a fish hook made in Canada ; though
during that time 1 have seen and sold thousands manufacturnl in New Haven,
Conn. Now, I have no doubt there is a larger per centagc on tish hooks than
on any ai-ticle of hardware manufactured in this country. The Americans and
English have the best share of nur hardware business yet. Most if not all the
brass rivets used in Canada are nade in the States.

Tire bolts ami carriage boil- are imported in large quantities from l^hiladcl-
jiliia. Factories for the manufacture of these have been staited in dift'erent parts
of Canada, but as yet, notwitiistnnding freight, duty, and war taxes, the Amcri-
<an manufacturers dt) a large share of the business. The jjlough bolts used in
this country are cxtensivelv made in New York City. Manufacturers of ploughs
toll me tliey never saw a plough bolt made in Canada. Neitiier did I, When-
«'\er I order plough bolts from a wholesale house, those made in New Yoik arc
sent.

Butt hingvs, esiiecialK- the small sizes, two inches and uiuler, are imported
in I.irge t[u:inti;ies from Providence, i<liode Inland. All the g.mlets, so far as I
<Mn see, and a great many of the auger bits, used in this country, are made in
New York City. From the lightness of these goods, in proportion to their
value, freight is hardly any protection to our manufactures. Among light goods
of this kind, cut tacks is one of the first things in which Canadians have begun

compel

[ave beer

k-er, are

Spiri

Canad

,'heneve

tianufact
an drive
■>hich ga'
,he scrat
Ther
sed in t!
:nows,
airbank
The
Factories
formidab
^ruining t
y| Stee
;;J Razors o
% aware of
chusetts,
,, mers is
% the Stat
I sent tho
i our man
'A than coil
* business
■ danger 1

t"i Canadia
i this desc
I Nothing
;' tion cor
I their cu
% Wi

I see, but
were so
of Can:
they w(
were so
manufii
apart
Tl
to proi
erish a
dian c:
for An
the bu.
operat
or inti
T
as chf
goods
culty.
offer !
cannc
mark
Cana^

tmm

The iiidividua!
>f a bad cliiunte.
limits referred to
e subject, as it is
bcr to check its
to extreme pro-
pose to make it

DEWART.

1S75.

o compete with
y of raw mater-
eavy, freight on
They can make
ictiircs of boots
before women's

^luantities from
y would still be
[e States. The
tiires can com-
Soods ; but the
re stores in the
also, that even
:an goods into

mufactures are
en selling fish
^'lada ; tliough
New Haven,
ih hooks than
mericans and
if not all the

Vom I'hiladcl-
aifferont parts
s, the Amcri-
bolts used in
?is of ploughs
id I. Whon-
e\v York are

are iinjjorted
',. so far as I
are made in
■tioM to their
,^ light goods
hiWQ begun

compete with the Americans. Messrs. Pillow, Hersey & Co., of Montreal,
ve been manufacturing in large quantities for some time. A good deal, hew-
er, are still imported from the .States, particularly Abbington, Mass. ^

.Spirit Icvclers-are imported from Philadelphia. I have never seen onemawe

Canada, and am not aware of a factory of the kind being in the country.

'hencver I order spirit levelers from a wholesale house I get those of American

anufacture. Here, then, are articles in which neither Canadians nor English

an drive the American manufacturers from the market; and it is protection

■which gave them the start necessary to attain this position. Most, if not all, of

he scratch awls used in the country are made in the States.

There is no cartridge factory in Canada of which I know : all the cartridges
sed in this country come from Connecticut and New York. Scales, e\eryone
nows, are largely imported from St. Johnsbury, Vermont, where the famous
airbiinks' factory is.

The protection afforded Idj' the American (.unernmcnt has built up splendid
actories of this kind all over the Union, and made American manufacturers
"ormidable all over the globe. .Still, Free-Traders tell us that protection is
ruining the States. I am inclined to think it is ruining somebody else.

Steel pens iiianufactured in New Jersey are used extensively in this country.
Razors of American manufacture are imported to this country, but I am not
aware of any being manufactured here. Shoemaker's awls come from Massa-
chusetts, and the handles from Connecticut. Though the manufacture of ham-
mers is carried out to a large extent-here, very many are, still, imported from
the States. When I order steel hammers to retail at over a dollar 1 am usually
sent those of American mani.racture. Distance or freight, on hammers, afilbrd
our manufacturers very little protection. These advantages are much more
than counterbalanced by the accumulation of labour, skill and capital where the
business has been long established. But let the tariff remain as it is ; let the
danger of sudden changes cease ; and labour, skill and capital will come to
Canadian manufacturers in such quantities as will soon enable them to make all
this description of goods required, both in respect to price, quality ahd quantity.
Nothing paralyzes industry more than uncertaint)-. While the Free-Trade agita-
tion continues, Canadian manufacturers cannot calculate, either, who will be
their customers or what will be their profits.

With " a market of forty millions" they n\ay be like Moses, permitted to
see, but not allowed to enter the promised land. More American cradle scythes
were sold here at Fenelon Falls during the last three years than similar scythes
of Canadian make. They were no cheaper or lietter than Canadian goods, but
they were imported and purchased by storekeepers here, and had to be sold, and
were sold. The farmers who bought them gained nothing, but the American
manufacturer made a profit and the Canadian manufacturers were deprived of
a part of their legitimate trade.

There is neither patriotism, statesmanship nor policy in theories calculated
to produce such results as this. vSuch a policy must necessarily tend to impov-
erish a counfry. Reciprocity would annihilate in one instant millions of Cana-
dian capital. As in the case of the scythes above referred to, it is not necessary
for American manufacturers to undersell ours ; //icy need only to take enough of
the business to make the balance unprofitable. Here is another thing which would
operate against Canadian manuAicturcrs : Canadian goods, not being yet known
or introduced in the States, agents would have great difficulty in getting orders.

There would be a prejudice against the idea that we could make goods either
as cheap or well as old American manufiicturers. On the other hand, American
goods being long known in this country, agents get orders without much diffi-
culty. To establish a business in the .States, our manufacturers would have to
offer a better and cheaper article than the American manufacturers, which they
cannot do. It is easy to foresee the result. Between. the loss of the home
niarkot and the delays and difficulties of establishing any business in .he Slates^
Canaviian manufacturers would be ruined in nine cases out of ten.

i».-i 'iS

Notwithstanding heavy freights on safes, considerable numbers are im-
ported from the States. An agent from Cincinnati took '|uite a number of orders
in Canada not long ago. It is proljably with the safes as with the scythes. The
pi#chiners are in no way benefited. Hut it results in profit to the American
manufactures and loss of legitimate business to the Canadiaii.

It is natural for Canadians to buy American safes, but not for Yankees to
buy Canadian safes, if they were even twice as good as any made in their own
■country. The " market of forty million" has a great many drawbacks like this.

Steam engines are also imported from the States. Not long ago I saw an
agent selling steam engines made in New York city to persons living at Georgian
JJay. Axes, once largely imported from the States, are still imported to some
<;xtent. A storekecijer at Horse Shoe Bridge, somewhere in the back country
south of Lake Nipissing, has American axes advertised for sale. These axes
^re no cheaper and perhaps not so good as Canadian axes. Their sole result
consists in transferring a certain profit from home manufacturers to foreigners.

In the face of these facts, can any person argue that Reciprocity would
benefit Canadian manufacturers? Free-Traders know this as well as anyone,
but their real spring of action is utter indifference about the success or existence
of Canadian manufactures at all. With access to the States, Canadian manu-
facturers are needed no longer. Perish Home manufacturers, m order that Free
Traders' whims may succeed !

The great mass of mankind exercise too little foresight.

Mr. Hagehot, in his able work on Politics, says a desire for instant action
constitutes the chief difference between savages and civiilized man. It is this
desire for instant action in politicians which lead people, step by step, uncon-
sciously to results of which they never dream, till the prevention becomes
impossible. I see a man opening a dyke, and tell him the sea will come in.
He says, "I will oppose the sea." His opposition will be too late. If he opens
the dyke, the sea will enter in spite of him. I hear men demanding Reciprocity,
and tell them it will lead to nnnexaiton. They say " we will oppose annexatioH."
Their opposition will be too lat>.. Annexation will follow Reciprocity in spite ot
them. " They're sowing the seed," but " what shall the harvest be ?"

Fenelon Falls.

W. DEWART.

Letter 6.

From the Canadian Illustrated News, Feb. 13, 1875.

Some articles in the last number of The Canadian Farmer, copied from the
Ohio Farmer, The Oshawa Vindicator, and The Whitby Chronicle, furnish an
excellent argument against Reciprocity in Agricultural Implements.

They show that, so far as real ultimate profit is concerned, the more men
" seek it in Free Trade, they leave their views the farther."

The article to which I refer, gives an account of the manufacture of The
Champion Mower and Reaper, by Messrs. Whitley, Fassler and Keily, of
Springfield, Ohio, and Messrs. Joseph Hall and Company, of Oshawa. The
factory in Springfield was started about twenty years ago, on a small scale. It
made fifty machines the first year ; it can make about fifty thousand in the same
time now. " Champion Reapers, from Springfield," says The Oshawa Vin-
dicator, " are this year being sent to France, Germany, Prussia,' Austria, Poland,
Hungary, Denmark, Russia, Egypt, Sweden, England, East Indies, Chili, the
Argentine Republic, and Australia,"

)

mmimgmmmmmmm

jlj|g|^r'ii>,i<|ilMriri»rr"- r-

MMMi

ers are im-
)er of orders
ythes. The
e American

Yankees to
n their own
:ks like this,
^o I saw an
at Georgian
led to some
ack country
These axes
sole result
reigners.
ocity would

as anyone,
or existence
idian manu-
er that Free

stant action
1. It is this
step, uncon-
on becomes
will come in.
If he opens
Reciprocity,
annexation."
ty in spite of

WART.

ied from the
?, furnish an

e more men

ture of The
id Keily, of
hawa. The
II scale. It
in the same
Thawa VtH-
ria, Poland,
IS, Chili, the

" Twenty-five hundred machines are being built at Oshawa for the harvest
of 1875," in Canada. How does this come.''

" Mr. L. H. Lee, who has been connected with the Champion in the States
and Elurope for the past thirteen years, has come here to rj^side and tal<4KPNtf|p
of its construction and sale in Canada." Had Free-Traders their way.^o
Champion Machines would be built at Oshawa ; nor would Mr. L. H. Lee come
there to reside, lie would build the machines at Springfield, and export them
to Canada, as he does to other countries.

The duty on these machines has compelled Mr. Whitly, the manager of the
Springfield factory to take a share in the Hall works at Oshawa. " The Hall
Company," says the Vindicator, " not only secures Mr. Whitly's capital, and the
exclusive control of his patents and future inventions, but the benefit of his ex-
perience, energy, judgment and prestige." This is just what Canada wants.
If we have PVee-Trade, let it bi in capital, labour, skill and experience — not in
manufactures.

The Joseph Hall Works, in Oshawa, will bring more capital, and desirable
emigration into Canada, than some of the emigration agencies maintained
Iby the Government at great expense, in foreign countries. If any person thinks
that profits are large in this country, let him come with all the capital he can
command, and all the skilled labour he can employ, and share in the general
prosperity. This is the legitimate limit of Free-Trade.

This arrangement will have one or two remarkable effects. First, these
machines will be built as cheaply at Oshawa, as in Ohio. Hence, the Canadian
farmer will buy them cheaper than he would with Reciprocity, because, with
Reciprocity they would be built in Ohio, with freight added to their cost, when
exported to this country. The farmer saves the freight ; hence, here is a case
in which duty and protection have actually diminished the cost of a very im-
portant article.

Free -Traders will, doubtless, say that Reciprocity would not prevent the
machines being made in Oshawa. I say it would. With Reciprocity, Mr.
Whitley would not sell his patents to the Hall Company, or any Company
in Canada, or give them capital, or send a manager there, or give them the
benefit of his experience He would much rather keep all these things to him-
self, make the machines at home, export them to Canada, compelling Canadian
farmers to pay the freight, as he does with the farmers of England, France, and
other countries.

Home manufactures have a very beneficial effect on the currency of a
country. Panics in the money market are seldom, if ever, caused by them.
Importations have a different effect. They often cause panics, and a severe
stringency in the money market. Suppose, for example, that a bank lends a
manufacturer ten thousand dollars : he pays a large portion of this to his work
people ; they pay a large part of what they get for provisions, or village lots, or
building houses. Some of what they get may go directly for sugar or tea
to the importer ; but the most part circulates round the immediate neighbour-
hood, and returns, to the bank. Such loans, while they aid production im-
mensely, do not diminish bank funds very much. It is a very small portion of
them for which gold is asked, while the balance — much larger portion — returns
to the bank in a short time, and is again available for new advances. The
twenty-Jive hundred Champion Reapers, to be made in Oshawa this year, will
not diminish the loanable funds of Canadian banks to any appreciable extent ;
whereas, if made in Ohio, they would diminish those funds to the full extent of
the price paid for them.

It is highly important that banks should always have an abundant supply
of money, at certain seasons of the year, and this can never be the case, till
home manufactures become developed. A scarcity of money, caused by im-
portations, when the crops require to be moved to market, is always a serious
loss and inconvenience to the agricultural community. This is a side of the

^jm

([uestion never presented to fanners by Free-Traders. They tell them ihu
keciprocity means tucnty rent;, a bushel on barley, which is not true,
^^iajlev \^\s I'^en as >(ood a i)rice since 1864 as durinj,' the ten years of
I^Pl|Wllity. Fi.c-Traders do not tell farmers that Keciprocity means a scarcity
of money when their produce is beinj; moved to market. When a bank lenils
an importer ten tiiousand dollars, he takes it in \!,o\A, and the loanable funds
of the Ijank are diminished '.o that extent at once, and during the continuance
of the loan.

Suppiisin}^ \.\\c t'uH'iity-five hiindri'd Champion Rcupeis wanted were mailc in
the States. When a farmer l)ou<(ht one, the bills which he paid for it are taken to
a hank and exchan;j;ed for .;oid, wliich is taken immediately out of the country.
Even where a farmer gives his nuie for a machine, the note is discounted, and
the gold is exported precisely as before, (iold is the basis of our currency, and
every dollar exporteil dimiviishes the currency to two or three times that amount.

As shown, with ro;4aril to the reapers, it is doubtful whether farmers would
gain in any i)articular ])>• '.<eciprocit\, while it is certain they would lose heavily
on their ;.;rain by a scarcity of money at certain seasons.

Free-Tratlers continually assert that duty necessarily increases the cost of
an article. I think I have, in tiu case of these machine^;, shown that it does
not, and why it does not. The Free-Trade argument addressed to farmers is :
Why should Canadian manufacturers be enriched at your expense .'' This is ,1
powerful argunient, when thus slated, aiid apjilied to the sehish side of human
nature, without a jn-oper knowledge of all the facts.

A farmer goes to Hall v!t Co.'s shop lo buy a re.rpcr ; he takes a look about
the establishment, tiiinks he sees a great many evidences of wealth ; conclude^,,
for certain, that Hall iS; Co. arc getting rich at his expense, and decides to vote
for the P'ree-Trade candidate at the next election. This is the effect of Free-
Trade fallacies and lectures on him.

Messrs. Whitley, Fassler & Keily, of Springfield, Ohio, have an establish-
ment many times as large as Hall & Co.'s. They export reapers to this country ;
that farmers buy from them without ever appearing to suspect that lliey aif
^ettitii^ rich at his nxpciise. The Free-Traders never told him so, and the
idea has not occured to his own mind. He envies tha moderate wealth of
the Home Manufacturer, while the much greater wealth of foreign manufac-
turers does not move his envy at all. This is one of the pernicious effects of
Free-Trade agitation.

They are not good men who see4c oftice by arraying class against class,—
telling one that others are getting rich at its expense ; or instilling such
principles as the foregoing into tht public mind. Our interests arc all
identical. As well might the hand say to the foot : " I can do without you," as
for Candian farmers to say : " We can do without Home Manufacturers,""
without very great loss and inconvenience.

W. DEWART.

Fenelon Falls.

Jin

tell them ihu
rue.

i ton years of
cans a scarcity
a b.ink lends
oanabie funds
le continuance

were made in
it are taken to
jf the country,
iscountcd, and
currency, and
s that amount,
farmers woidd
d lose heavily

:es the cost of
n that it does
to farmers i.s ;
e ? TliLs is ,1
idi- of human

1 a look about
h ; concIude:>,.
^cides to vo'.e
ffect of Free-

an establish-
this country ;
that /Ary utir
so. and the
tc wealth of
^ni manufac-
)us effects of

linst class,
tillinjj such
sts arc all
lout you," as
nufacturers,""

ART.

Letter 7.
FREE TRADE AND ARBITRATION

From the Canadian Illustrated News, June 27

Free- Trade can hardly ever become universal or continuous. It is opposed
to the inevitable necessities of national prosperity. Every time two great nations
become involved in war their whole commercial policies with other nations
require changes. In some cases the effects of these changes are felt severely
in very remote places. The trade relations between England and the Slates
were totally changed by the late civil war. The commercial treaty between
England and France was swept away by the late French and Prussian war.
This is the fate of every treaty, sooner or later ; and such a fate is always disas-
trous to trade. Permanent, steady prosperity cannot be secured ivitlwut a lari^e
development of home manufactures. If Canada now enters into trade relations
with the States, to the injury of home manufactures, a war between the East
and West, of which there is some real danger, will again find us without manu-
factures of our own, and compelled to pay war prices for everything we import.
Duties and taxes are, and will always be, the only means of paying war debts.
Nations, not having home manufactures, are constantly assisting to pay the
debts of other nations. An shown in a former letter, England built up home
manufactures by protection ; till now, nearly every nation in the world is con-
tributing toward the payment of her national debt. Protection is what makes
Free-Trade ultimately profitable. Free-Trade, however, can never be profitable
for all. It is only so for those who possess natural or acquired advantages.

It is no use to preach Free-Trade to a nation in the present position of
France, or in that of the States immediately after the civil war. Adversity
teaches those people to reject such nonsense. True economy is learned in adversity.
It is only in prosperous times that false theories like Free-Trade take root. In
every financial embarrassment nations have to flee to protection ; and if people
would not forget the arts by which they surmount difficulties, they would make
fewer mistakes. The way to pay debts and the way to make money is the same.
Nations pay debts by duties and protection to home manufactures ; to continue
prosperous, it is necessary to continue this policy. The conditions that might
possibly make Free-Trade safe and profitable do not exist, and are never'Jikely to
exist. For example, the idea that international disputes are about to be gen-
erally settled by arbitration is nonsense. Such men as Emperor William and
Bismarck, backed by immense resources, after enormous expenditures in mili
tary preparations, feeling strong and confident of victory, will never submit a
weighty matter to arbitration where the decision of such a tribunal is at ail
doubtful. Military men have no faith in such a prediction. Krupp, the great
cannon manufacturer in Prussia, is putting $7,500,000 of new capital into his
work. All these things point to a continuance of war, as usual, and the unfitness
of Free-Trade theories at present. Capitalists are as willing as ever to furnish
money to carry on war, and invest money in the manufacture of arms. The
most gigantic warlike preparations are going on on every side. England, where
the doctrine of arbitration finds its chief support, is building as many ships of
war as ever. It was by war she won her vast dominions, though peace would
suit her best now ; but younger nations arc not yet satisfied to give the game up.
For those who give attention to the subject, there is more to be gained yet by
war than by arbitration. The age is still far off when war will cease to be the
principal arbiter between nations. There are too many barbarous and semi-
barbarous nations still in the world for civilized man to lay down the only means
of defence which holds such people in awe. As the pugilist requires the blows of a
training master to prepare him for the real conflict, so one civilized nation still

requires to come into collision with another to prepare them for a conflict with
t he barb aro itf jutjo ns by which a grea^ {-"ortion of the earth is still inhabited. If
^iM^^iiMMHMRstbr of the world, at the present day, it is his superiority in
arms^^ich has made him so. Uur intercourse with half the world and a large
majority of the human race is prescrsed only by our superiority in the use of
arms. If Kurope and America abandoned warlike preparations, and adopted
rules for settling international dis|)utes by arbitration, both countries would be
conquered by the barbarous antl semi-barbarous hordes of Asia and Africa
withm two centuries. To civilized man, war is an evil ; but the abandonment of
the art, as advocated by the arbitration movement, would be a greater evil. In
wars between civilized nations, civilization suffers little in comparison with what
it suffers when a civilized nation is conquered by a barbarous one. This is
where the screw is loose in the Free-Trade movement. Free-traders think that
arbitration as a means of settling nearly all international disputes is an accom-
plished fact ; and that any policy which the present civilized nations think
proper to adopt will control the destinies of mankind in all time to come. This
kind of egotism is common in all ages. Oreece, Rome, Persia, Assyria, and all
the nations of antiquity, thought the same thing of themselves. They never
dreamed that the seat of power would be in Western Europe some day ; just as
the free-traders of Western Europe now think it will never remove to any place
else hereafter.

Should any considerable declension take place in the military art in Western
Europe, the IJritish army might probably be driven out of India within fifty
years. Were it not for modern improvement in the manufiicture of fire-arms, 1
doubt if the (iovernment could hold India even now. With the old musket,
IJritish soldiers could hardly succeed in expeditions even against such enemies
as the Abyssinians or Ashantees ; and repulses in cases of this kind might lead
to the invasi i of Europe by Asia or Africa once more. However improbable
this may apf ar at present, it might be rendered quite practicable by the opera-
tion of such principles as Free-Trade and the settlement of international disputes
by arbitration.

The arbitration and Free-Trade doctrines emanate from the same source.
Free-Trade economists are the blindest of all politicians, and those who elevate
such men arc the blindest of all electors. They remind one of the man who in
lopping the branches off a tree cut the one on which he was standing. The
declension of the military art, likely to arise from arbitration, would efface
civiHzation on two continents, and exclude the manufactures of Western Europe
from half of the human race.

To each civilized nation individually there is no more important question
than protection to home manufactures ; and to all civilized nations collectively
there is nothing of greater consequence than progress in the art of war. While
the former confines the evil effects of war pretty much to its immediate locality,
the latter is required to push forward civilization in barbarous countries. Dis-
arming civilized nations is equivalent to arming barbarous ones. But the
practice of modern philanthropists is to disarm everything good and leave
everything bad armed to the teeth. They are silly enough to suppose that if the
saint lays down his sword Satan will follow the example. The ballot bill just
passed is a corresponding principle, liy it, law and public opinion, the highest
emanations of public virtue, are totally disarmed, while every elector is placed in
a position to bribe .or be bribed with impunity.

W. DEWART.

FENhLON Falls.

I conflict with
1 iiihiibitcd. If

superiority in
rid and a lari,'e

in the use of
;, find adopted
tries would be
;ia and Africa
oandonment of
cater evil. In
ison with what

one. This is
dcrs think that

is an accom-

nations think
o come. This
ssyria, and all
. They never
e day ; just as
'e to any place

art in Western
lia within fifty
of fire-arms, 1
le old musket,
such enemies
nd might lead
:er improbable
; by the opera-
itional disputes

; same source,
se who elevate
le man who in
tanding. The
would efface
estern Europe

irtant question
ins collectively
f war. While
ediate locality,
)untries. Dis-
les. But the
ood and leave
)ose that if the
ballot bill just
in, the highest
or is placed in

EWART.

" PROTECTION IS

Letter 8.

THE FOLLY OF A.SKING A MAN
ALL HIS OWN CLOTHES."

MAKE

From the Canadian Illustrated News, yati. 2, 1875.

The foregoing ciuot.ition is one of the many sophisms employed by Free-
Tradcrs. It is the style of argument used by all that class, from Mr. Bright to his
humblest followers. Professor I'ricc, who is claimed as an advocate of Free-
Trade, is reported to have said in one of his lectures, " Protection is the folly of
asking a man to make all his own clothes." This is a misrepresentation.
Neither Horace (Jreeley, Morrill, nor any living protectionist writer, ever asked
a man, or even a nation, to do any such thing. Again, the Professor says, "It
is folly to foster ' home industry,' by requiring the people of the country to pro-
duce everything they want." This statement is worse, if anything, than the
other. It means that protectionists recommend producing their own silk, tea,
sugar, spices, and so forth, in whatever climate they live. I would like to know
where the Professor met with men advocating these opinions. Further on he
says : " Nations, like individuals, have special facilities, faculties and aptitudes,
with respect to production." This is what we perceive, and we ask nations to
produce those things for whicii they have " special facilities and aptitudes,"
instead of importing them from other countries.

Again, " nobody ventures to maintain that the people of Maine should not
trade freely with the people of Texas ; the people of New York with the people
of California." He gives this as his ro-.^un why there should be Free-Trade
between Canada and the States. The Professor appears to forget one thing,
and, forgetting this, he falls into a very grave error. The relations of Maine,
California, Texas and New York to each other are different from the relations of
Canada to any of them. Canada is under a different government, and has dif-
ferent interest, both commercially and politically. For Maine to be dependent
on California, or California on Maine, does not affect the safety of either, for
each is pledged to the defence of the other ; but for Canada to be dependent on
either is perilous, neither being pledged to her defence, but occupying the atti-
tude of interested enemies. One quotation more from the Professor, " The
folly of compelling everybody to make all his own clothes will soon be relegated
to the shadcj that envelope the old Navigation Act of Great Britain." There is
more sound than sense in this quotation. The Professor is a very ignerant man
if he does not know that his recommendation has been adopted, by Protec-
tionists as well as free-traders, long before the repeal of the Navigation Act.

Nothing leads to more frequent errors in reasoning than comparing things
whicli are not comparable. The Professor asserts something of a man which is
strictly true, so long as affirmed of a man, but utterly erroneous when applied to
a nation. The acceptance of Free-Trade principles by the public depends
entirely on the capacity of the leaders to mix, confuse and mystify the matter.
They require to be kept to the point, like the Professor. When they make
unquestioned assertions, don't allow them to transfer or apply the conclusions to
something dissimilar.

The moment free-traders state the exact idea intended their arguments
lose force. Had the Professor said, "It is a folly to ask a nation to produce
everything it requires, for which it has natural facilities," he would have stated
the negative of protection fairly and clearly. But the other form of expression,
till questioned, answers his purpose better. J. S. Mill admits all that protec-
tionists affirm, when be says that " any country having natural facilities for any

particular manufiicture is justified in adopting protection for a time to give the
start whicli otherwise individual enterprise alone would not be able to make."

'*• *' The start" above referred to is all that Canadian manufacturers ask. But
free-traders are too cosmopolitan in their ideas to give their own countrymen
even this small preference over foreigners. They contend that if a country has
natural facilities its manufactures need no start. Mill thinks otherwise ; he
recommends protection /^r a time, even where the facilities exist.

W. DEWART.

Fenelon Falls.

Letter 9.

"A MARKET OF FORTY MILLIONS."

From the Canadian Illustrated News, Jan.% 1875.

The foregoing quotation is one of the cunningly devised fallacies of free-
traders in behalf of Reciprocity. It would be to the States, in many respects, a
market of four millions, but never to Canada "a market of forty." In propor-
tion to the population, the Americans are our customers to a limited extent,
but our competitors to a larcje extent. The same rule holds good regarding their
trade with England ; while becoming less valuable customers, they are becoming
more formidable competitors.

As shown by Mr. Mathews, in his work on " Imperial Federation," the
imports of the States, from England, have been decreasing ever since their inde-
])endence. While colonists they imported goods to the amount of £1 per head
per annum ; nnmediately after independence the rate declined to i6s. per head
per annum ; and in 1861 it was no more than 5s. gd. per head per annum. This
change was affected by the adoption of a protectionist policy after separation.
American manufacturers have now not only excluded English goods, in a great
measure, from their markets, but are supplying Canada with many articles
formerly imported from England. Had the American manufacturers not been
protected thus they could never have attained this position. Protection has
made them tl.e most formidable rivals Englands has, or is likely to have, in the
future. It is only by accepting a theory without examining the facts, that a
person can arrive at a different conclusion from the above.

To the States bordering on Lake Ontario and the St. Lawrence our exports
may be considerable, but to the ffreat majority of the forty millions we would
never sell an article, for the simple reason that they produce and manufacture
the same kind of commodities as we do. What do the Southern States want
of Canada ? They don't want our manufactures, because they can be supplied
more cheaply and conveniently by the intervening States. It is not possible that
they can become great customers of ours.

They don't vant our lumber. There is more and better lumber in the
Southern StcTs than there is in Quebec or Ontario. It is distance, absence of
railways, canals and navigable rivers which prevent the Eastern States from
getting Southern lumber now. The unsettled state of the country is retarding
the construction of railwaysi and canals, The rivers run in the wrong direction

■ne to give the
le to make."
irers ask. But
vn countrymen
a country has
otherwise ; he

•EWART.

875.

illacies of free-
lany respects, a
y." In propor-
limited extent,
regarding their
y are becoming

ederation," the
since their inde-
of £1 per head

1 6s. per head
r annum. This
ifter separation,
oods, in a great

1 many articles
:turers not been

Protection has

to have, in the

he facts, that a

:nce our exports
f/ions we would
id manufacture
;rn States want
can be supplied
ot possible that

■ lumber in the
nee, absence of
:rn States from
try is retarding
vrong direction

for this pii
Canadian^
settled liM

may become,
The South was
.kman was the

West Virgioia has th« largest and moat
valuable body of timber of any State in the
Union. Prof. Fontaine estiipates that the
area still covered by forests is between
9,000,000 aud 10,000,000 acres, and that the
vivliio of the surplus ""exportable timber is
fully $70,000,000 as it stands in the forests.
The oak, walnut, cherry, ash, ^plar, maple,
elm, sycamore, and locust attain a size there
not surpassed on the American continent.

ideal of every southern planter.

Twenty thousand acres of forest, with two or three thousand acres of a
cleared farm was the style. A planter's farm was like a small village. Pass one,
and you usually travel through miles of unbroken forest before coming to another
human habitation. The Southern States will have plenty of timber long after
Quebec or Ontario has a stick to export. Thus we see no market in the South
tor Canadian lumber, neither is there any in the West. Parts of Ontario
import lumber from the States ; and about one-half of the lumber made in
Michigan finds a market in New York.

Thus we see this " market of forty millions " dwindle down to the partial
supply of a narrow strip of country south of Lake Ontario and the St.
Lawrence. The privilege is entirely overrated by the advocates of Reciprocity.
It is not worth the Fisheries by any means. Persons who forget that the
Americans are our competitors, in a much greater degree than our customers,
fall into many mistakes. As a market for our wheat, this part of the argument
is easily disposed of. Much of the wheat exported to the States does Canada
an ultimate injury.

For example, it is ground with their dark wheat, and the flour thus made
comes into competition with our wheat and flour in the English market. Were
they not to get our wheat for this purpose, their wheat would be unfit for export,
or have to be exported at a reduced rate. The Americans produce much more
wheat than they consume, and imports from this country simply swell their
exports in precisely the same ratio. If my competitor ordr^s an article from me
for a person who is occasionally my customer as well as his, 1 am no better off
than if he had allowed the customer to have come to me directly for the article
himself. In fact, I am worse ofT; persons who buy to sell again are accustomed
to a margin called trade discount. Selling direct to the consumer is like buying
direct from the manufacturer ; these are the transactions in which there is most
profit. England is our chief customer for wheat, and seeing this, direct exports
secure the largest ultimate profit.

To place our commerce on a profitable and durable basis, we must resort to
direct trade by outlets of our own. The proposed Reciprocity Treaty would be
an entangling alliance, which might lead to very undesirable results. With
Canada, free trade is the forerunner of annexation. It is said that the treaty
of 1854 did not lead to this. There was a go i reason for it. The South
seceded in time to check the demand and prevent the catastrophe. Another
secession might not occur, at the proper time, to save us from similar danger.

The termination of a treaty is a delicate question, when the notice proceeds
fiom the weaker party. Had Canada been obliged to give the notice in 1864, in
the temper of the American people at that time, it might have led to hostilities.
Here then is the danger. If a treaty is objectionable to the States, they can
withdraw at its expiration without ceremony or fear. On the other hand, if it
is objectionable to us, withdrawing may be made an excuse for retaliatory
measures of some kind, A smr^ll nation like Canada must not reject overtures
from a large one like the States.

Belligerent demagogues might make it a pretext fo.- forcible annexation.
But, say the free-traders, England would not allow any such proceeding. My
answer is this : if the treaty is adopted before its expiration, England will have
little reason to care what becomes of this country. For all practical purposes,
Canada will be to England a separate, or part of a separate nation. Had there
been no secession of the South, no war, no war debt or termination of the treaty
of 1854, British influence and British manufactures would be nearly extinct here
by this time.

The proposed treaty meets with about as much opposition in the States as
Canada, This is accepted, by free-traders, as a proof that the treaty is advan-

I i

particular manufacture is justified in adopting protection for a time to give the
start whicli otherwise jr.dividual enterprise alone would not be able to make."

♦"* The start" above referred to is all that Canadian manufacturers ask. But
free-traders are too cosmopolitan in their ideas to give their own countrymen
even this small preference over foreigners. They contend that if a country has
natural facilities its manufactures need no start. Mill thinks otherwise ; he
recommends protection yi'/' a time, even where the faciUties exist.

W. DEWART.

Fenelon Falls.

Letter 9.

"A MARKET OF FORTY MILLIONS."

From the Canadian Illustrated News, 7(*fi-9f '875.

The foregoing quotation is one of the cunningly devised fallacies of free-
traders in behalf of Reciprocity. It would be to the States, in many respects, a
market of four millions, but never to Canada "a market of forty." In propor-
tion to the population, the Americans are our customers to a limited extent,
but our competitors to a large extent. The same rule holds good regarding their
trade with England ; while becoming less valuable customers, they are becoming
more formidable competitors.

As shown by Mr. VTathews, in his work on " Imperial Federation," the
imports of the States, from England, have been decreasing ever since their inde-
pendence. While colonists they imported goods to the amount of £1 per head
per annum ; immediately after independence the rate declined to i6s. per head
per annum ; and in 1861 it was no more than ss. gd. per head per annum. This
change was affected by the adoption of a protectionist policy after separation,
American manufacturers have now not only excluded English goods, in a great
measure, from their markets, but are supplying Canada with many articles
formerly imported from England. Had the American manufacturers not been
protected thus they could never have attained this position. Protection has
made them the most formidable rivals Englands has, or is likely to have, in the
future. It is only by accepting a theory without examining the facts, that a
person can arrive at a different conclusion from the above.

To the States bordering on Lake Ontario and the St. Lawrence our exports
may b"" considerable, but to the great majority of the forty millions we would
never sell an article, for the simple reason that they produce and manufacture
the same kind of commodities as we do. What do the Southern States want
of Canada ? They don't want our manufactures, because they can be supplied
mere cheaply and conveniently by the intervening States. It is not possible that
they can become great customers of ours.

They don't want our lumber. There is more and better lumber in the
Southern States than there is in Quebec or Ontario. It is distance, absence of
rail.vays, canals and navigable rivers which prevent the Eastern States from
getting Southern lumber now. The unsettled state of the country is retarding
the construction of railwsiys and canals, The rivers run in the wrong direction

HMi

to give the

to make."

rs ask. But

countrymen

country has

herwise ; he

WART.

acies of free-
ny respects, a
In propor-
mited extent,
Bgarding their
are becoming

deration," the
ice their inde-
£i per head
1 6s. per head
innum. This
er separation.
)ds, in a great
many articles
irers not been
'rotection has
3 have, in the
; facts, that a

ce our exports
o>ts we would
manufacture
1 States want
in be supplied
: possible that

umber in the
:e, absence of
1 States from
f is retarding
ong direction

naoAV toeaiB-uaanb g» '^«ll«a "O 'S

* ^ -ailjAHJO 1 -aogqca

SflB^uBois -J,

f«» 'WWMOia -v "O

t -^ ^_^^f 'oaooHi -H 'M.

for this purpose. However prosperous or populous the country may become,
Canadian lumber will not be required in the Southern States. The South was
settled like no other portion of North America. An English nobleman was the
ideal of every southern planter.

Twenty thousand acres of forest, with two or three thousand acres of a
cleared farm was the style. A planter's farm was like a small village. Pass one,
and you usually travel through miles of unbroken forest before coming to another
human habitation. The Southern States will have plenty of timber long after
Quebec or Ontario has a stick to export. Thus we, see no market in the South
for Canadian lumber, neither is there any in the West. Parts of Ontario
import lumber from the States ; and about one-half of the lumber made in
Michigan finds a market in New York.

For example, it is ground with their dark wheat, and the flour thus made
comes into competition with our wheat and flour in the English market. Were
they not to get our wheat for this purpose, their wheat would be unfit for export,
or have to be exported at a reduced rate. The Americans produce much more
wheat than they consume, and imports from this country simply swell their
exports in precisely the same ratio. If my competitor orders an article from me
for a person who is occasionally my customer as well as his, I am no better off
than if he had allowed the customer to have come to me directly for the article
himself. In fact, I am worse off; persons who buy to sell again are accustomed
to a margin called trade discount. Selling direct to the consumer is like buying
direct from the manufacturer ; these are the transactions in which there is most
profit. England is our chief customer for wheat, and seeing this, direct exports
secure the largest ultimate profit.

To place our commerce on a profitable and durable basis, we must resort to
direct trade by outlets of our own. The proposed Reciprocity Treaty would be
an entangling alliance, which might lead to very undesirable results. With
Canada, free trade is the forerunner of annexation. It is said that the treaty
of 1854 did not lead to this. There was a good reason for it. The South
seceded in time to check the demand and prevent the catastrophe. Another
secession might not occur, at the proper time, to save us from similar danger.

The termination of a treaty is a delicate question, when the notice proceeds
from the weaker party. Had Canada been obliged to give the notice in 1864, in
the temper of the American people at that time, it might have led to hostilities.
Here then is the danger. If a treaty is objectionable to the States, they can
withdraw at its expiration without ceremony or fear. On the other hand, if it
is objectionable to us, withdrawing may be made an excuse for retaliatory
measures of some kind. A small nation like Canada must not reject overtures
from a large one like the States.

Belligerent demagogues might make it a pretext for forcible annexation.
But, say the free-traders, England would not allow any such proceeding. My
answer is this : if the treaty is adopted before its expiration, England will have
little reason to care what becomes of this country. For all practical purposes,
Canada will be to England a separate, or part of a separate nation. Had there
been no secession of the South, no war, no war debt or termination of the treaty
of 1854, British influence and British manufactures would be nearly extinct here
by this time.

The proposed treaty meets with about as much opposition in the States as
Canada, This is accepted, by free-traders, as a proof that the treaty is advan-

*.!•

i! •

tngcous to us. It is no proof at all. The treaty might be a positive injury to
both countries. If A says to B, do my work and I will do yours, the propo-
sition, if carried into effect, might result in large loss to both. This is just my
view of the treaty. It might be injurious to both countries. Hence the oppo-
sition from both sides.

W. DEWART.

Fenelon Falls.

Letter 10.

From the Canadian Illustrated News, March 6, 1875.

Reciprocity. — Reciprocity being rejected by the United States Senate,
it may be thought by some that further discussion on the subject is unnecessary.
Reciprocity is not, however, a dead issue. The question is sure to come up
again. It may be om turn to reject it the next time, and public opinion requires
to be ready for the event. Free Trade policy is to let the question alone at
present ; Protectionists policy is to keep it agitated. If carried at all. Reciprocity
must be introduced and passed in hajte. There is no doubt, therefore, that the
Free Trade party will remain quite for a while, eagerly watching opportunities
for future negotiation. Their's is a policy of surprise. Mr. Brown's mission to
Washington was a surprise to the public. His party had always maintained
that Canada should not be the first to open negotiations on the subject.

However, following the example of the Liberals in England, whose example
they seem anxious to follow in all things, they embraced the first chance of
attempting to pass a free-trade treaty by surprise. Even where Acts are
good in themselves, this principle of surprise is wrong. Politics should be public
and dehberate. Acts affecting the public should be done openly and after full
deliberation. The storming parties have been repulsed, but the siege has not
been yet raised. The Free Traders will renew their assaults a.nd surprises at no
distant day. Protectionists, now is your lime for sorties. Put the besiegers to
flight. While they are unable to attack you is the time to attack them. In every
age there is a liberal hobby. Free Trade is the hobby now. The leaders are a
kind of enthusiasts. They have unbounded faith in their theories. They need
no one to proclaim them infallible. They proclaim their own infallibility.
They are men of few ideas. These ideas being once attained, they have to
"step down and out," as Mr. Beecher would say. See Mr. Bright and Mr.
Gladstone, for example. As soon as they cease to raise " burning questions,"
they loose their influence over the masses. Does it pay a nation to be agitated
by " burning questions " all the time, in order that certain men may rule ? The
effect is obvious. The nation has little confidence in such men after all. Though
it allows them to storm the works, it does not give them the fort when won.
They are accounted active, but not steady.

Hence, whatever credit they derive for enlarging human liberty, the preser-
vation of liberty is intrusted to others. Mr. Vernon Harcourt, in touching on
this subject, supplies us with the best definition I have heard — " parties of
sensation and politics of surprise." Radicalism is its own worst enemy. We
have hardly any Reforni CrOvernrnQnt, properly called. We have RadicjU

ve injury to
, the propo-
; is just my
e the oppo-

VART.

75-

ates Senate,
innecessary.

to come up
jion requires
ion alone at
, Reciprocity
ore, that the
jpportunities
's mission to
1 maintained
ect.

lose example
it chance of
;re Acts are
uld be public
ind after full
ege has not
rprises at no
besiegers to
m. In every
leaders are a
They need

infallibility,
hey have to
^ht and Mr.
;j questions,"
be agitated
^ rule .'' The
all. Though
rt when won.

■, the preser-
i touching on
-" parties of
enemy. We
irvve Radica,l

governments much oftener. These hold office just as long as they can stir up
" burning questions " to divert public attention from other defects.

It is curious how some journals, once delighted with the prospect of Reci-
procity, have changed their tune. It cannot be on account of the terms. The
terms were the same at first as last. But the contempt of the American Senate,
after such humiliating concessions by this country, has " raised their dander,"
and made them quite national. After leading the Canadian Free Trade party
into so bad a trap, it seems ungrateful of the Senate to desert it at the last
moment. The terms were almost as good as annexation. After this, it is
doubtful if the Americans would admit us into the Union without ,\ bonus. Says
one journal : " Nothing now remains to us but to shape our own policy in our
own way. Since it cannot be, in any degree, North American, it must be distinc-
tively Canadian." This was the proper course from the first. " We cannot
shift the wind," the opinions or prejudices of foreign governments, or people ;
but we can " shift the sail," " shape our own policy in our own way."

The "almighty dollar" is said to govern the States, but something more
than dollars entered into their calculations in this case. Canada offered to
become annexed in almost everything except the name ; but, understanding their
dignity, they agreed among themselves to forego these advantages, and thus treat
Canada with contempt.

The time has not yet arrived to get good terms from the States. It may not
arrive for a generation. It will be brought about by events over which we have
no control. One of these events may occur at any time. Should a civil war
again arise ; should the South or West secede, then our friendship, our neutrality,
and our trade will be appreciated. The Eastern and Northern States are
threatened both by the South and West. Should splits of this kind occur, our
intercourse with the Eastern States may become intimate and profitable. As
the Union stands at present there is little chance of either an honourable
or profitable treaty. If we ever get Reciprocity on a fair basis, in my
opinion, it will be with the Eastern and Northwestern States as a separate
nation. These States and Canada have many interest in common. They
are bound together by the great lakes and the St. Lawrence. They are
interested in each other as neighbours. But the other sections, namely : the
South and Far- West, while filled with all the prejudices of foreigners, have no
neighbourly sympathies for us at all. What sympathy have we for Mexico .'
Texas or California cannot have more for us. Besides, there is a great contest
commencing between civilization and barbarism. The heathen Chinese will
complete the degradation begun by universal suffrage and the enfranchisement
of the negroes. Not all the religious, intellectual, and moral agencies in the
Union can civilize the huge stream of Chinese immigration pouring into the
country. The Golhs did not give Italy more trouble than the Chinese may give
the States. Immigration is overdone. Too much attention is paid to the
quantity and too little to the quality. There is too much undesirable immigra-
tion. They invite the refuse of all countries, thinking to make themselves
formidable among nations. That refuse has become formidable to themselves.

W. DEWART.

Fenelon Falls.

NoTK.— Siitco wrlUHg the foregoing letter-;, especi.illy lliosc in
that Free-Trade Uoes not suit eVen in Knaland.

1S74, I have come to the conclusion

■•!d » fHtod to M. Trilcn, reornily, "hM no
itti roof In tbe ointitr}, M>d If, wiitoh Ood
f.rbM, Ik ihonld we? »tt»ln po*e» " —
" Titp," r«p)««« 11 ^TbleM, "UwonWn't
Jirtlprjf, foriu p'»ll'!o8 «■ In grurnn*!' the
rtdlo*) la •IwD) » n*ar \\m tormlnfttion.'"

1,1

'ARD OK TIIAUK Rr.TLUNS.

ii Board o( Trade returiiH for IJecci
. on ■'■a 8tli Ir- ■*. • and t'l > roduUs , ■ ,

"• ' ..'oo .;

Letter 11.

i/..A

i.'j{l'.'

ENGLAND'S FOREIGN TRADE.
From the Canadian Illustrated News.

The bad effects of Free-Trade on England's commerce is past concealment.
The harvest of her foreign trade is evidently over. Free-traders can no longer
mislead public opinion with regard to the present depression. The Board of
Trade returns for October are about the worst ever issued. England has deluged
the world with her manufactures, and the cause of her depression is that the
demand for them is on the decline. This decline is not a temporary thing, either.
English capital and labour have been largely diverted into unproductive chan-
nels by the advocacy of Free-Trade principles. England will, in the end, pay
dear for any temporary advantages derived from it. Free-Trade in England is
not only the cause of depression there, but of the depression which now exists in
many other countries. The London Telegraph says the case is " of a nature to
make the most determined optimist admit the fact of declining commerce and
industry." Her exports were less in 1874 than 1873, and less in 1875 than 1874.

England has invested enormous sums in ships and factories, but the facto-
ries are nearly idle and the ships have little to do ; but the people want bread,
and those who have bread want little, if any, of her manufactures, so the bread has
to be paid for with gold. The product of English capital and labour is depreciat-
ing. This is what is the matter with England. She has been prodticing articles
for '■luhich an effective profitable demand has nearly ceased. England gained a
temporary advantage by having these things in advance of other nations, but the
advantage is ceasing. The silk manufacturers were ruined by Free-Trade, and
the machinery for that purpose became of little value. The manufacture of glass
is also nearly driven from the country. American cotton manufacturers are even
now sending cotton to England. English manufacturers cannot continue to
import raw cotton and export manufactured cotton back to compete with Ameri-
can manufacturers in their own market. Hence a great part of the fixed capital
of English manufacturers will be rendered unproductive.

England has great facilities for manufacturing, but trade being gone, the
capital expended in creating these will be partially wasted. The time is coming
when English manufacturers will be able to do no more than hold their home
market in cotton goods. This will render a great deal of machinery unproduc-
tive ; and many ships now employed in the cotton trade will have to find other
employment. Her woollen manufactures will probably hold out longer. She is
a great wool producing country ; but other countries are also becoming great
wool producers, and so soon as they become able to manufacture their own wool
they will need English goods no longer. Canada is importing less woollen goods
every year. Our own manufacturers are rapidly superseding all others, notwith-
standmg all the disadvantages under which they are placed. The one thing
which gives them the advantage is their better judgment regarding the class of
goods required. Great fears are entertained about the coal mines of England
becoming exhausted ; but there is a much more immediate danger than this.
The foreign demand for English goods will cease long before her supply of coal.

The abolition of the Corn Laws was part of the Free-Trade policy. It was
opposed by the nobility, though it was the one thing which has prevented reforms
in the tenure of land. Had the Corn Laws not been abolished, all or nearly all the
large estates would have been divided up, sold, and under cultivation now. This
is what would have been done to keep down the price of food. Laws would have
been passed allowing the partition and sale of entailed estates. Food might not
have risen much in price, for more land would have been cultivated.

RNS.

'DM (ur Decpi
•' «roault«,'

ij;'j{i? ''

lUit the impDrtiiiion of cheap food leiulercd aj^ricultiire unnecessary. E

nir

oncealment.

n no longer

le Board of

has deluged

is that the

thing, either.

uctive chan-

the end, pay

1 England is

now exists in

if a nature to

>minerce and

'5 than 1874.

ut the facto-

! want bread,

he bread has

■ is depreciat-

tcing articles

ind gained a

tions, but the

;-Trade, and

cture of glass

irers are even

continue to

: with Aineri-

fixed capital

ng gone, the
me is coming
i their home
ry unproduc-
to find other
nger. She is
coming great
leir own wool
ifoollen goods
lers, notwith-
'he one thing
the class of
i of England
er than this,
ipply of coal,
licy. It was
:nted reforms
nearly all the
I HOW. This
3 would have
od might not

lish farms were depreciated in \ alue Ijy competition witli cheap lands cvcrywlierl'.
J'/iiis Frcc-'J'rihii- in co)n lias prevented J-'ree-'l 1 tu/e in land. This caused a
;(rcat emii,^ralioa of agricultural labourers. This emigration was just in propor-
tion to the imports of food. England's farms are in foreign countries, and her
.i.!,n-icultura] labourers have had to yo to them. Had her farms been at home,
iier people mij^lu also ha-e stayed at home.

Tht

tlierefc

En>dand cont;i

ih land to feed all her

questu

people. 1 think tliere is enoui^h, or nearly. England and Wales contain
;^5, 264,000 acres of land. Out of this there are 31,003,000 tit for cultivation. It
used to be reckoned that one-eighth was unlit for cultivation. But recent experi-
ments in pumping and draining marshes ha\e reduced this proportion materially,
and one-twelfth would now be nearer the mark. This, therefore, would lea^'C
32,324,334 acres fit for cultivation. But, then, there is the land occupied by
buildiui^s, roads, and railways. Allow 1,325,334 acres for these, though I consider
this an excessive estimate, being over twenty-six times the area of London.
We'l, now, what proportion of this land is cultivated ? In England and Wales
there were this year 3,342,388 acres of wheat, 2,509,598 acres of barley, and
2,664,048 acres of oats. These are the principal crops, and, 'taking due allow-
ance for all other crops, it is evident that between the land that is partially
cultivated and that which is uncultivated there is room for a vast extension of
agriculture. In his Principles of Political Econom>, page 166, J. S. Mill shows
that in Flanders two and a half acres of land raise food for a man, his wife, and
three children. He also shows that this is inferior sandy soil, originally reclaimed
from the sea, not to be compared with land in England. At this rate, England
and Wales have land enough to feed sixty-two millions of people. If we include
Ireland and .Scotland, where there is a much larger proportion of uncultivated
land, it will make my argument much stronger. Thus England is drawing food
from the ends of the earth, often at famine prices, while the best agricultural
land in the world is lying waste at home. And the labour expended on the
manufactures exchanged for this far exceeds the labour required to extract it
from her own soil. To this extent, therefore, Free-Trade has diverted English
labour into unprofitable channels. If one-third of the capital invested in
merchants' ships and manufacturing machinery was employed in agriculture, it
would cause a much larger and better distribution of wealth and comfort and
refinement than at present. England's wealth is badly distributed, and this is
mainly due to Free-Trade. There is no nation in the world, there never was
one, in which the distribution of wealth was more unequal. And this unequal
distribution is one of the great questions of the day, and one of the great dangers
of society. By discouraging agriculture, Free-Trade has kept the large estates
undivided and perpetuated the rule of the aristocracy, and in commerce it has
laised up a class of merchant princes and manufacturers. It did the same thing,
rong ago, in Rome. After the people admitted corn free, and neglected their
own agriculture, the inequality of wealth increased steadily. The time is near
when men will cease to point to England in vindication of Free-Trade principles.

The Neiu York Shipping List, a very ably conducted journal, alludes to the
present depression in the following terms : " Many of England's best foreign
customers for iron, coal, machinery, and various manufactures, are said to have
become independent of her." Are the ships and machinery employed in foreign
trade worth as much as her land would be if cultivated ? I think not.

There are two causes which may lead to the extension of agriculture in
England. One is a duty on corn as formerly. This is not likely. It is more
likely to result from a decreasing foreign demand for English goods. Some
foreign manufacturers are now not only underselling but excelling English manu-
facturers in the quality of their goods. This being the case, the purchasing
power of English manufactures is becoming inadequate to supply the nation with
imported food, its manufactures are not purchasing its breadstuffs at the present
time. For the last lew years, large balances have had to be paid for in gold.

■^-■A

i-.

%-&.!

/ i'

„ < OaPRBHAION IX

This is what bankers call a forei;;n drain. A rise in the rate ofthe Bank of
England is the expedient used to check a foreign drain. It checks the e.xpcrta-
tion of money. It means this, "If you leave your money with us a while longer
you may have higher interest." These factories and their products will depreciate
in value, and what should have been done at first will have to be done at last,
namely, develope the agricultural resources of the country.

England protected her manufactures till they became developed. This was
right. But she withdrew all protection from agriculture. This was wrong. Ker
manufactures are now a drug in the market, while she pays the highest prices in
the world for food. Thus we see she buys dear and sells cheap. This is burning
the candlf* at both ends. She can do this at present just because London is the
great money market of the world Money is sent to London from all parts of
the world for investment. Hence there is always a great floating capital there.
This deceives people. The capital is always there, but it is not the same capital,
and it is not all owned there. This is more particularly the case since the late
French and German war. Before that time Paris was a great money market.
The German Government has large sums of money in London. Nearly all the
French indemnity was paid in London, and a great part is still there. It is this
floating capital that enables England to go on, year after year, importing food
and paying for a great part of it in gold. England, with all her ships and facto-
ries, should be able to pay for her food with her manufactures, and that she
cannot do so proves that her labour is unproductive. Free-Trade is the cause.

If the demand for English manufactures was not on the decline, it might be
safe to go on depending on imported food . But, as I have shown, England's
best customers for coal, iron, machinery, and other goods, are now nearly inde-
pendent of her. To hold her trade in future, wages will have to come down;
and reduced wages m^ans diminished comforts for her labouring classes. The
real problem is, how will the price of wages come down while the price of food
goes on increasing, as it is sure to do while the greater part of it has to be
imported. Free-Trade was intended to elevate the labourer, but for the fore-
going reasons it is sure to injure him.

I have said that England does not produce near all her own food, and that
from the diminishing demand for her manufactures they have become insufficient
to purchase it. Now, it remains to be shown how England pays for the excess of
imports over exports. London is the world's banker. For example, it is said
that Brigham ^'oung has nine million dollars there on deposit. From all parts
of the world money is sent to London. It is curious that money should be sent
from countries where interest is high to a country where interest is low ; but it is
the case, nevertheless. This is the reason. One can get more money in London
on demand than in any other place, because the bank that has the largest
deposits can furnish the largest loans on call. It need not be the bank that has
the largest capital of its own, either. English bankers lend these deposits to the
British Government, to foreign governments, and to all parts of the world ; and
it is out of its profits as a banker in this way that it pays Jor the excess of imports
over exports.

Suppose, for example, that Brigham Young has nine million dollars on deposit
with some English bankers. This may be part of the money which is paying for
the Suez Canal.

Whatever England makes in this way by being the world's banker, we know
that her losses are also enormous. Take' the Turkish bondholders, for example.
It is not long since an association of foreign bondholders was formed, and the
published statement revealed enormous losses. As I have shown, these losses
are not all out of English capital. As yet, it is foreigners that are defaulters to
English capitalists, but if the losses continue, English capitalists may yet become
defaulters to foreign depositors. It is impossible to determine England's finan-
cial standing. As yet, she is the world's banker, and handles much more money
than any other nation ; but if a bank's deposits are numerous enough and large
enough, it can go on doing business long after its own capital is all gone. Free-

-.int>A

le Hank of

r.e expcita-

[hile longer

depreciate

|ne at last,

This was
ong. Ker
t prices in
is burning
don is the
11 parts of
ital there.
|me capital,
e the late
ey market.
|rlv all the
It is this
)rting food
and facto-
id that she
le cause.
t might be
England's
jarly inde-
)me down ;
sses. The
ce of food
has to be
the fore-

1, and that
insufficient
le excess of

it is said
1 all parts
lid be sent

; but it is
in London
he largest
: that has
sits to the
orld ; and
of imports

on deposit
3aying for

we know

example.
, and the
ese losses
aulters to
!t become
I's finan-
re money
md large
J. Free-

iO 111

V.,:

«.t

Trade is lilkely to turn out a very unprofitable esperiment for England. England
has discouraged her agriculture, and turned most of her lal)our to mnnufactules.
These have so depreciated in value as not to purchase food enough, and she lias
to fall back on the precarious profits of banking to make up the deficiency.
A great war might, and probably would, deprive England of this business, and
break up this centre of capital, or transfer it to some other place. It would hurt
her in two ways. First, it would make food scarce and dear by interrupting its
importation. Secondly, it would deprive her of her banking business, out of
which she now makes much of the money with which she pays for the food
imported. This is a very sensitive and artificial state of industry. If England
was engaged in a great war, capitalists would not have the same confidence in
English bankers that they have now. Hut war is a thing which free-traders
refuse to consider in questions of this kind. They tell us that arbitration is going
to supersede war in future. It is, however, my opinion that the nations which
neglect to consider this question will soon have to consider the questions of
foreign intervention and servitude.

England is protecting her manufacturers, all the time, on a most gigantic
scale, though free-traders do not appear to know it. She is keeping up naval
stations out of the public purse to keep the way open for manufactures all over
the world. She goes to war with China, and compels that nation to open her
ports. She keeps an army in India to protect her trade. If India afforded
English manufacturers no market, would the Crovernment risk a war for that
country ? If it is not for its trade, India is of no use to England. She paid the
Al.abama claims for the privilege of allowing her people to sell the Southerner
ships and munitions of war during the rebellion. She has just paid the Khedive
of Egypt twenty millions of dollars for the Suez Canal, to keep the way for her
manufactures open to the East. This is protection to home manufactures, no
matter under what name it ^s^oes. But it is a kind of protection rendered necessary
by the evil effects ->{ Free-Trade. The misapplication of English labour, caused
by Free-Trade, has created a vast amount of fixed capital, which must be wasted
unless things like these are done ; and, no matter whether free-traders o>- pro-
tectionists rule, this policy is now forced upon them.

The London correspondent of the G/o^e says with regard to the Suez Canal.
"The bargain is a wise one, whatever may happen, though, pecuniarily, it is a
losing transaction. We shall lose the interest of ^4,000,000 for some forty years.'"
Hut " so important is the friendliness of Egypt to us that, no matter at what cost,
it must be secured."

Now, England is paying all this to protect her manufactures. She has ceased
to confine the circle to her own shores, but there is, nevertheless, a circle within
which she employs protective measures. She is paying for this protection just
as surely as when she levied duties on imports.

The time it paid England to protect her manufacturers was while they were
striving to supply the home market.

When the manufacturers become able to hold the home market against all
comers, they need, and out(ht to have, no more protection. Further protection only
creates an artificial state of industry.

Measured in labour, England is paying much higher prices for food than any
other nation ; and, measured by the same rule, she is getting much lower prices
for her manufactures. This is the reason. Food is nowhere so cheap as where
producers and consumers deal direct. But England is fed by a lot of dealers and
middlemen. Thus the people pay dear for food and get httle for manufactures.
When we add the losses arising from bad debts on goods exported, it is apparent
that great quantities of labour go for small quantities of food.

The net cash proceeds of her exports do not buy near so much food as the
gross cash value of those exports would take out of her own soil, if employed in
agriculture.

When one subject cheats another, it is an individual but not a national loss ;
but where a foreign merchant cheats a British manufacturer, it is both an indi-

^m\

r\.

44 ^

viuM.il .iiul 11. limn. il lo-i-i. It diminishes ihc annuiil value of the land and labour
(it a country to tliat extent.

What Knj^land lias to sell is now ncaily always a drug in tlic market, and
what she wants to buy is a prime necessary of life. It is bad to be dependinj,' on
fi)rei;^'n manutiu tures. but worse to l)c dependent on foreign food.

,\nil no nation in the worlil can adopt Kree-Trade wilhoi't soon Iiecomin;^^
dependent on one ur oilier of these.

The jjrice of food rises much faster than tiie price of manufactures when there
i> ,iny fear of a scarcit)'.

\Vhen one goes to buy mamif.ictured goods he cm wait and Iiiggie w ithoiit
serious d.mger, but when a scarcity of food is feared, produce dealers have to bid
the prices at once that will fetch it.

It is lis Tivw/;,' /(' ini(Hn t food, tiiat may In luii'iiiitii^roi'sly fn luiucid at lu>iiu\
as nianulaituies ; it is as widHi^ to crush Jioiiir iii^rii nil lire as /lo/iir inaiiiijai.tiircs,
III Jiiiji^iaiid, I'rii:-7'raiii- Lriisiiis ainitiiitiiri' ; in Caiiaaa, it looiild ci iisii iiiaiiit-
/aJiircs. This shows it iioesn"t suit in either place.

In France, agriculture and manufactures run in parallci lines, as it were,
lioth are et|ually jirotected. 'I'he consei(uence is that 1' ranee is one of the greatest
w heat growing countries in the world, and an exporter of food as well as manu-
lactures. lier protection to agriculture has led to the partition, sale and cultiva-
tion of all the large estates, till there are now six millions of land owners in
France. French economy would receive r.iore notice if Irench politics were more
settled. But, well or ill governed, France's wealth increases enormously. At the
end of the late war the greatest rinanciers of the world had no conception of her
resources, and she is recovering strength at a rate that no other nation could,
and this is because her iiulustry is protective. Fiance has few drugs m the
market. There is a market for all, and a protit on all her products.

Fk.nelon Falls, Oni.

\V. UEVVAKT.

JDce t

r.t\ti">

.<rr»i*^!i&-fnii.»ri» ..

we are now than *•

a ago. Then the debt wim. '-
.ue-third of the whole property m^,i
u ito security; now it ii^o..:.'.

/87^

/ /.

ul I.

LDonr

rket, and
lulinL' on

KMi there
' without

VC to 1)1(1

at hoinCy
if tU tit lis,
li iiiiuin-

it were.
: greatest
IS nianu-
1 ciiliua-
luners in
ere more
. At the
n of her
jn could,
;s in ilie

RT,

ihan '»
lebt Wi«, \
roperfcy no ii
V it is^o.^.'..