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IV. :^ THE TARIFF HISTORY OF CANADA BY ^3) SIMON J JvrrT.F.AM,,, R A , Mackenzie Fellow in Political Science, University of Toronto, WITH A PREFACE BT I'rofeisor of Puliticil Eoonomi) and CunHtitutional Uistnri/, Unticrsitif of Toronto, Formerly Profettor of Political Economy and Statistics, St. Mango's College, Glasgow. HF 1763 ^il. -.2 ■v^- TORONTO: , ^.WARWICK BEOS, h RUTTER, Pri>jthb9 Ac, 08 Asn 70 Fbont Strkkt WksT. ^j:^ 18116. #! H': *-ve ■ t «^J» I'l' Nalioiial Library Bibliotheque Rationale of Canada du Canada - -.-^ j*T TORONTO |-NI\KI;sir^' STflUK IX :p c^ J-; I T I c .^ iL s c X -it. isr c E3 \Mi:s M.W Ml; HMit .r No. I \' THE TARIFF HISTORY OF CANADA BV SIMOX f. M, Li:.\.\, I!. A. Mackenzio Ftllaw in Political Scienc-e. i'liiri rxttit III T'lruiit-i. \\ I 1 il \ IK I I \i I BY JAlvIES IvI^V^OR I'rufis^'ir (>f Puhticil Ec-iii mil mrl c..,i.. \. N". ill. " Fi iii.ilo !,.ili"r in t )'it.iriii. liv .Icnii siiulaii, I". A . .lA.MKS .\I.\V()|;. ivlit.ii. Nm. i\' ■''I'l;.' Taiiir llist• fitl rt iin i, I I'nr "/,/.(/■((/, Tnmntii. TAIiLi; u|. Cc)\H;\Ts ^'"^'■^•^- VA,n<. .■'"""■' '"- ••■'^-f 'I- i:. ,,..,.,.,.,. ■,,„„.. •••• 7 "'••''""•■'"■ 'I'':.I7;, |.t. o.nt. Tariir 10 l^;!'^'!--' IN-. Tho «,.,,s K.a.iiMu up to ,1.,. x., i. :,;,,' ,.;,;';.: i" •''■■'1""N. Tlu. .\a,i„nall',.li,.v ^ I'J ^•i''p"- VI. The i^..iH„iH.s ,, .■•nuiirK.f:,,, ,;■;;;, ;;;;;;;.;■■ — •••••• -■ Ai'i'iMix _ ■"■ • ■• ^4 ■'^TATIvl I, s ; Cana.lian S,,u„U..s,K.aIi,„.v,rhtl„. Cusr,,-.,,. T.M.L ^>-i-an,lp....e.,.a...s,,fd.u•o,Mh.M:^::;::u '' ;'"'"• '•■-"'"^-'''lutyont,„ali,„,„„.,. . ^7 I' •• HI. S,„a,. ..„te.v.l f„r Hn,„e C..,.,„n,.,.,n, 1^71.,,. ■a,',:!'.;" j;',; "^^ I eimtu Canada fur H,nneOm.s,nn|,no„.lS(;y.S7 jy NoTK UN l>K„n:,T„.v vKi;>,s Fk,:k Tuai.,: ' o2 I'IM:!'.\< K I 'A. a.;. 10 k; 21 •M 47 4r 48 48 4y Tlic Toront') I'liixi'isity Stiiilii- iii iNlitical Scifiico wcvr iii-t ilntfil \liril in tint -riifs, I'iirli of tlii-'iu liriu^ a valualili' >tU'l_v in Caiiailiati cCwiKiiiiic ui' (.'uii-t iiuliMnal history. 'rill' |M'i'-i'iit i<>iii' O'lii^i^t-. m!' a lli-'ii'iy "I tlic < aiiailian Taiill, I'V Mr. Simon .1. .McL"aii, U.A , MacUi'n/ic I-'illuw in I'olitical Sciciici'. Tliis iii(iniiL;ia]']i is f\)i milcil !Vi)ni a |ia]MT wiilti'ii in cniniMti' iiai I'nr the i>anki'i>' Srlu'lai-liip in 1S'.»I. Mr. .Mcl-r.in ili\ i'lril tiir pri/. with M r. .1 l> riiiliip-, r..A.. tlic i.a|M'is of tlicsc Iwii C'lUipft ilors I'linn' rcuanl.'l a- iipial Altlioiii;li tlic tarill anil it-- ]ii»t'My iiiNnlvc many |H,Iiiical as wrll as fCOiiomic con-tatcmi'nt nf tln-i- !■- nut ra-y witlmut ilisclDsinij a liins tuwai'iK on'' lU' tlic nthfi' nf ilu- poliliual jiartir^. an attrmjit lias boon mailc in the t'ollowiiiu iiai;o- to yivr an iinpartial accmint oF the hi^C'iy ul' the taritl. .\cailcniif! tiratnirnt ol' pruMiiii- that aif alway- in thr nu'ltin'i l>"t nl' imli- tical coiitrovcrsv, must ni'('i---aiily a|i]irai' taiiH- and hjihl ln'^iilr thr rhi'tmif uF |iartisans ; hnt its valur twr tlir --tn Iriit i- nnni' tin- Irs- mi tliat acrDiint. < 'Irar .stati'nu'iil nf till' liry hiini'> i- an iiiili^|ii'n-al''<- preliminary (<> the i'nrmalimi ul' rrliahli' conciirsioiis ; and it ipi'oaiv- ti> me that Mr. McLean ha^ .--U(.-cc^--hilly accomplished tin-. Mr. ^^■L(■an has liiuii^ht t'lu'ether fur tlir tir-t time the elemiiit- which coii- trilitited hi)th liel'iiiv anii after cMnfediralinii tnwurd- the making- of th.' taiill' as it now is, lie lias shewn that one of the main re,,-oii- tor confederation wa> the •'commercial ni.ioii " of the province-, lie ha- -hewn, al-o, that althou-h the jn'ovincial tarills prior to I So7 were Vi'vy \aried, tiny were in the main low tarirts for revenue rather than Vd^h taritl- for la'otectioii. This i'eat nre of the provincial tarills, e-p;'ciall\- tlio-e of the Maiitimc Provinces, practieally deter- mined the clKiraeter of the hoiniidon taritf when confed. -ration hrouuht the provinces together. .Mr. Mel. "an ha- al-o ^lu-wn how aftei- the early days (jf confederation were over, the coiuitrs'. under the mud.nice of Sir John Macdoiiald, ••iiil.;irk.M| ii|.,,ii tlir Nutiojiiil |'olic\ a p.,|irv ..M.-iniitinu.slv piotoctive. TIm- lut.T liistuiy Mf tlir Ml ill iiM,|,.r tlif Niitioniil I'olicv is .sli^'wri t.. Ik- i-Iiaraftfiiz.'.| l.y cffuiis uuu-v ur l( ^s (•oi,iiMii..us u, ivmnv.- tli-^ cniilitii-s nn>\ iii>M|imliti.'s oF thf railitT |)Il;.^,-, (.f Ihr tlllili Hll-I li\ rir.Mls t> lllu, | i ly tlln>r ilii|„,,N W ll icll , wll 1 If protcctiiii,' (»ii( clavs nf iiiaiiiirnctiuvrs sicinrd tu iiijiiiv i.thns 'ril.'OsoiliatiMlls hctW.Mll ihr |i..|i(.y ..f llii]insiiio ^prrilic ainl that Ml' ilnpoHllj^r (i<( 'ulorn,, duties aiv \r\y intcitst in- t,, t't.ll.)V\ in . I, tail a> alv. thr icinlfni'los to inciviisc liiitirs upon spirits an. I upon m.hi,. liiNiui.-. on -roiintls partly •'(•ononiifal ami partl\- itliiral. Tlif liistoiy ol' till' Cnna.lian laiilf m, it.., Icuisldtivc siilr liavin.-- lu'cn cum- pclcntly snninmii;',..i, tliciv ivmaius (h, nioiv liilicnlt la-k oi' .NaniininL; tiit.' course of prices in r,ina.|a, alike of luanut'aciured n-oo.U and oi a.uriculi ural pro- ducts aJid of estinialin-- tin' ellect of tarilV elian;,'es upon tli (iii'l llii' aiii'iiint i.i' intcr- coloiiinl iiitiiciiinsi' iiiwl cDiiiiin'rco was luit .small. Kacli |iro\iiir.' wcntDii ils own way ill iiiattris iMi'tainiir:^ \n tniill" It viNJatinii, i'ni|i';!\ .n in,' tn ^f iiil- it^ K.-i \nv it^ .-w ii iiihiifijiatu waiitv, Imiit it> litti.' Cliitir^.' wall aiouinl its .)wii tVuni i.r ainl ta\>.| tlic iiiaim- factni'('.>i 111' a >i-irr pi'DV iiicc jiv icailily a- iIkim' oI iJii>>ia i»r tla- I'liittil Statf.H.'* 'riu' itir\ital.|(> it'-u'it ^ of llii-> |iiir-iiii oi' iiii|i\ jclnal jiioviin'ial int'Tfst.s, woro ('oiillicts of tuiill's ami coiisraiit lia!ii["'iiii'^ ol'tru'liv in Nova, Scotia tin' '/fncial laiitl' rale was |() per Cfnt.-I- Altli'aiuli sonio favor is .sliowii in this tai-ill" to tlir iiiaiiufactui'is ]ho\\^ the somi-- whaf, iiudi' natuiv of this tarill' ; foi- s|i(.cilic duties, imu-e t>j)t'cially in coiuitrif^ which have n.it reached a hi^h stat.' oj conunticial di\''!ojan( nt , havi; a tendcuey {<> 1... applicl in a loiinh and rea tixed sjiccitie duty the rtsult i^ often ine(|iiiialil>. ; for the |iro)ioiiion ..r dutv-cliar., aie plaet.d at a .lis,id\ an'a.^c. 'J'ju' ad riilon'iii duties coin])rise three scheilide>. \i/.: 20 |h i cciii., 1.") ji.t ei.nt..anil 'j jiei cent. The '2i) jier cent, rate i- impo-e.| on luxuries and the hnei- clus-cs of manu- iaet nred ii'oods. .Mtlujuyh, in ^-eneral outlitie. the tarill of N.'W r>rnnswi(d< | h.-ai- much rescndilane-' to tliat of Xo\ a Scotiii, yi.t in .air particular tln'iv i- a dill't-r.-nce. In the No\a. .'^eotian taiili the fi'c,. li^t hail '.■■en nuele u-e ,,f in ni<\,-\- to extend indueenientv ti niatuifaei ui'eis ; I ui in the taritl of N.w lii'unswiek lhi■^ feature is ahscnt. The general late, in-liM'tl, i-, hravier, liif the dili'iTi-nee in rate is attrihiital'le to a greater n.;ed toi' reveinn,- lle|-,., ;i>iu the Xova Scot ian tnriM", tin' specific late ofeliar-'e is faxoriMl. Luxnii.'s, to^.'ther with ino-t .if the commodi- ties in connnon use, have a spi'cilic duty imposod upon th.'ni. In thr ■■:i>r of wine tliert; is a compound diity.!:j Tliis is a ileparturti from the u^ual practice of tlics(! early taritl's for, in gonoral, simple (hities w. ie pivfcrr.'d. The n'l rain-i m ;.'oods "Cray..^ History ..f C..iifiM|friUi..ii, v., I. 1, p. fj. +C:i|i. S, Ri'vi-i'il Stiituti-i ..f N.«v,i Scitii, l.Stlt. X' Vict. N.li. is.-.lt. S-B, G(l. unit IL", p. r cut. Tli(> skillfil :m I liiiiilly a.lvict' an'l iiitici-.ni nf Pr..t..-i'ii of luatiTiai ail tn iiie in tlic it\isioiuif my (■^^ay. It atlord-* iinj iiukIi pleamire t tiiuf. was alMHit 11 per cent.; wliilf in \('\vt'oinitll;iii on (lie ;iv('i'a'j,'t' 10 ]" r t\'iiL.+ TIk' taiill ol' tlh' ]iio\iiicc i/t' (111 CaiKula was tin- outcome of sjn-cial ('ir(ann- stiiiK.'i-'s; on account of tlic inlaii'l position of tlic provini-r, and tlit- L;'r('a,ti'r cliarijos incurj'ei,! in tlic Imiliiin-' of puMic u orks, anil y-cni'ial int'iaial ili'\ clopmcnt it was foiinil necessary to impose rab's (*f diity lu'a\ier tlian those ini)io-,uil iiy tlio provinces liy the sea. In these eailier ilays the nieims of internal taxation were ])ractically in theii' infancy, and hence the ( ios einmeni was foiced to rely in 'j[reat di'^ri'e ,ipon the cn>tonis dnties. The two Acts of ( Hd t 'anada which are of impoitanee in this eoiniection are tho-,e of ISo!!' jmd iSG'ijij Tlie hitter liow- .'vei', is the .\et wliicji outlined the tarilf of the new l)o:iiinion and may. tliere- fore, Iti' more adx'antaiieously eon.-idered in another (•■ imection. Although the general rate on yoods N. ( ). \\ was I't) prrceiit.. the duty in the case of spccitir i eommoditii's was, in mtniy instances. )iiueh hi::her. 'Die lates of char^'e \ary from !(<'() prr cent, in the ease of lii|Uois. to 10 p:'i cent., in the ease of iron and steel and their mannfael ures. The rate of duty on luxuries and ipiasiduxuries is, in '_;-enei'al, hi^■h. .\n attiMupt is made, however, to aci'ommodate the tax to the dilierent ipialities cif the counuodit\' : foi- instance, tliei-e is a tax on -iiL^'ars according- to (jUality, of from lo pei- ci nt. tn 4i) ];er ei'Ui. The tax on li'jUtas is exeeedinu'ly hi^h ; in the tarilf lei;islatiMn "f ('anada. as in tltat 'd' ni i>t, eisili/.'Ml e.mntries, rhere apjiears. on the wleii,', a uniform tcndeney to i', crease the iluiies on s|»irits, hut this rate of l.S'ilt wa-- hi^h hey. .nil precedent. The reasons which led to the adoption of thi- rati' were piartly economic and paitly ethical. The I'^iiiauce .Ministei- liad projio-ed. in the tariff resolutiotrs, a .")0 per cent, tax'' ; lait it was I'epre-eiited to him tlnvt such a " low rate of duty would eijeoura-e iiitemper.iuce, ' hence the iiicroasetem of .lories l,..ldiiiu' only a sul)sidiary ])lace. in the <",inadian tarilf the conditions are alto^'ethei' .iillerent, tor, with a few minor exceptions, the ilntie< are ('/ '•:ilnrcm. 'i'he priuciple of suh~,titutin'.^ ml i;ilnr('iii i'ny sp'citie duties ha.l h'eii a loptcl when a new a.lmin- ist ration was foi-med in Ino"^; the ch■ln^■e was advocated h'JcausiMt was considered that it w>)uM ensure a m.>re ei]uira'>h' pressui'e of ('ustoms duties iijion all. 'J'he •proposed reconstruction of the tai'itl'on an <('/ vulon m hasis was outlined in th.' *Tlu> (Mist )it.s coiiti'acti.'ii X. v.. .S. sif,'iiitifs ''tini .•lsi\vliri-i> si)('i.-itli",l," : X. • >. 1'. in-am " ivt otliiT- .vi.se priiviijiii f. ir. " K' .nf.-.l. , ,iti..n l^.'l.u.^ p. IH. S|....'ch ..t ilnii. I».\.icy M.iii'i'. !22 Vict.,("ap, 2. .529-SO Vx't., Cai). <), l:Bast,-il)l.> riihlir ionaii.c, in.. r.C.i.l. "'Till' .■>0 piT I'l'iil. I'iiU' \\\A li.i.'ii th'. light i.f lii'cuujp a similar rat.- wa^ innp. .if..! in the amt'ivlfil tariff if Ihi' I iiitt'.i Stivte.s. Till' sigiiitiraii..'!' ..f ihi-j :eiil .similar f.ii'ts will lie c.iii.-ii'li'rH.I in the .ViipfuJix. Sue ■' Th.' Inllii'^iice cxf-rti-il up m th- ('.ina.lian Tarilf li.v t!:" Tarilf "t the I'liit.'.l States." II liuilKi't Speech. Marcli 7th, 'S."i!t. l"l all f. ctl ail \\| 1"| tir tal ai w ^Si¥mm^' ■m »*::■■•; ' ^^Wiw""'*^'*- .f I Thi Spcicli fi'oiii till' Tliiniic, iiiiil (ic-piti.' >.iiiiili-y nlijertioiis tli;it, it wouM pi'ovo pre- judicial to till,' iiiti'iestM)!:' rjtpci- Canadfi, wliicli iiiipdrtcd iiud-c uxtfiisivoly tlinii l-iowi'i' (Jarifula, tlu- new tariU'was cari'icil into cHect. The rates in tiiis i!vriii'+ arc mncli liii^lier tlian tliose in vii;^nic in tlie Maritime proviiicos. The yeai's I.S57-H had lieen soniewliat disiistrous in financial circles, and tlie I'anadian (l(n-oinnirni lindino- its(df nmcli sti-.utened ior i'.'\iiini\ was l-'orced to raise the taritl : an Act of iSjShad increased th(.' ifeni'i'al late to 1 •") per ct^nt.: in iSoO it was Ntili Fnrthei' incrrased to l'() pi.r <-ent. Ihit thei'e was also an avowed protective intent presmt in the tarill. Winn bh^ larilT \ct-> ol' Is-'N-!) wi're ])assed the(')h>nial Sccietary, the Duke nf Newcastle, piMte>t'Ml against the protective features of this h'L;i- endeavor to aeonnuodui' tliese v.arriii'^' intere-^Ls a protective i)o!icy was cleemed to 1m_' uf sei'x'ii'p. A liiief tahular vuinmary will sei've to indicate the war e,f tie- tariffs. For tins jiurpo-i' the folliiwini:' conniioditie^ nia\' lie eho>eii ; spirits, tea, >un'ars, toliaeeos, a ultuval product-, iron and ii> manutactures. N'>v;i ScMti:i New r.! iiii~WH:k. f 'uTU'.iia. :5t>irits Siit'cilicavcraije rale 70c. per | ^'iilli'ii I .Sin't;itic. a\ri\i(,'c ratt" ?s. ;i.|. I I'Hi' >.'alli>n Of/ V ''•■I-' ,11 \00 fi'v uvut. Teas (I,/ /.(/.,,■.,( lOiH'rc.'iU 1 Spccilic, iM. jMTJh ,/,/ i„l..r. >u :> pt-r n'l.l. to 15 per , cent. acciiriliriK to ipialiiy, isuffar.i if'l ,ii.,r, i„ -20 \vrcvni SpecHie, from /./l. to l.'.d. per 'h. acooriiing tu'i(ua!itj' ml ntlmi in ID percent, to 40 I percent, .iccnlin^' to (puility I anil linene.^Js. Toltacco,-. -e/ iv//./r<;/i 20 percent ... I Specilio. IM. per Ih .ei' r-/. iv ;„, mixed tel.aecos .'iO Aj,'ricii)tiiral I «■/ ra/o/Y/.i, meat ami pouUr.v j (ler cent . cigars -10 iier cent. proiiuct>..J 10 per cent | Krco I'lee. otlier iirodncts I'n c j , ^ . . . ..,,,., Iron and its | , , - . I , , ,. , , -^ manul'act'r'.s. I "ili"'"'''"i a percent i wl ro/,,ri m 1;. p.^r cent ./■/ i "/evw/i 10 per cent. That eonllict of tarilf- wa- one elemrut in th'^ plexus of cau'-'v^ wdiich iirouLjht ahout Confederation i- exideiit in eoiiti'inpoi-arv speeches and new.-p;ipei>. [n tlie meetiiiu-s of the dele-\ite> at Chai lottetown " the detrimental way in which the conllictiiiu- lariH- opei'aied to each other- di->advant;iL;","\^ was referred to. rii.' Hon. (ieo. lli'uwn, in a >;)eech at the time, said : " lait far in ad\anc(! (jf all other advantages would lu; this tliat the union of all the pro\inces would hreak ilowii all trade harriei'. lietwei'n u-. and throw o[ien at onc'' to all a comlaned market of foui- millions of people." The speeche- of Cartier and other delei;att;s wi're ill the same >ti.nn. The position taken hy the merchants is. howexiM', more imjtoi-tant in that it inry of UonfeJerati'.n, vol. 1, p. ;U. ///(■/. p. 41'. 10 ;,q\cti til I'lif ■ li'li u'aLi'-- i'l <,Miclii'(' iiiurli >t|i'-^ UiH l.ii'l, liv (^Mii-lirc iiii'i'cliulits, uii tlir r.'ii.'i tliiu 'III' il'iiit'.;- ii\v;i\- \s itli Iii'stili.' tiiriti'-^ wiiiiM 111' III' iiincli aihuiitjige to ti'iiilr. At a liatiijtii'1, Mivi.'ii liy tlir (,inil)r(' Huaril ul' Tiiiile. Mr. .losrpli" said ; '■ wr lii^iio that till' ii!ii'i|tinl aiul Inistilr tarill'^ of tlir sm'oiiil ])ro\ iin'cs ^liould (lisaiipcar, \vi' wan! mu- taritl in-ariul ul tivt;."* Tu alli^Li'c tliat f(!i,iiiiiiiic Motives alntn' linini;!!t a'liinil Cuiii'i'ilrratioii wniilii In' in ^n tun tar: lail luuie tlu' less is it ti'iii' thai mil' imtiiciiiati.' uilvantaLir tiiat was I' xjn'cLril t'i'Diii L'oiift-'ik'iatiun \\a-. a laiili wliich woujil f.ni'vci' do away witii the constant friction that liad hillli'ltii I'Xistnl. Jt was in'ct^sai y toolilain a nnilni'm taritl. 'I'ln- Maiilinic iI('lri';nti'S Iiad in'cii nccn>toni''i| in a coiii|iai'ativrly Inw rati- i>t' dniii's. ainI ci»nsi'i|nrnt'\' liny olijrcted till' lii-li tarili III' ( 'aiiail.i. ( )ni' i F tlic \\v~.\ tl.inu- to In' lioiii' thru, In rou' t (in- IVdi'i-atinn cniiM ln'cimu' |ii'acticalih', was the rmiMulation uf a tariil' whirh should appri'simatt; to the lower latcs ul" (hitics chai'^cd hv the .Nhiiitiino ]ii'')\ incr.s. II, Till-: iM^-> (M Tui: 1-1 I'Ki; ('i:\t t.mmi i\ \su7-7i ml tal inl ml f>' (', I 'I'lie dclv'-;it<'.s oi' the Maiitinir i'l'Dxiiiccs had made no s.ci'il nf tlicir disliki tor till' hi^h ta fill' id" ( anada. and >o an anprDxmiatinn tn thr Maiiiiim- taiit! I'ati', which w;i> on the avria;;'!- \-\ ]>r\- eeiit., had to hr i |}cet. d, Ac('ordin;^'ly t\n' Taiitl Art which wa-. |ias,,.d was intended as a coni)>t iiiHi--e. Tlie duty i.itc on i^onds N. O. r. \\;is reduced to 1'- per rent., the -enii.-il late uj' thr ta'iti ol' liS.'iN Iii'Iiil: thus arcrpteil. As conti"isti.d \\ ith till' autr-< 'nnl'i dri.'itmii tioiii-, thi> taii!l ol' the wrw h-aiiinion hiais the luaik of coin]iriiiMise, I'luii i- the tarili's uf the .Maiitinii.' I'iia mee.-. the duties hail heen foi- the np'st ]iait spreilie ; tind"r tlie (.'aiiadian taiill' uf h'S.'^iit the duties weie, with mie exception. */(/ r.ilnrtn, ; in the taiill of iMii'i ur lindan atli nipt iit a I'l-coiiciliation nf these di\ei'ren<, tendencies. In addition to the speeilie dutiis in the new t.U'iti wr tind three rtites of (/(/ ro/iw //t diitiis, \ i/. : li-i, l')aiid 10 per cent. 'I"he "J-'J ]ier crtit. -chediile niav he desciilird as a l.nx en IiixiD'ie--. Thr 1,") p,-r ci III. -1-liediilr is thi uiiist iiii]»i)itant. It was from this list thai thr iiulk of the ie\eniir \\a-- expceted. and it \v,i- fnan this list that tin.' hulk of the revenue was dlitainnl. 'I'he intluenee nf tin' sea-coast taiilis is sreti in thr ..uh-.titut icn nf spieihcfnr many nf thr u,! i,ilo,-rm duties hitherti) in Ineer. .-^,\er.d instancrs nf this may he cited, '["he Canadian duty nu .-pirits had lii'eii an aliimst ]trnhil'it^)iy ml m}- orciii oiir ; liir specilic wlirre the I'l/ riilonia duty was alsn irpi;, red hy a sperilic rale. the rate in this eas ' also heiuL;' higher than the correspmidinr' one in thr Maritime taiilis. In the < 'anadian tariM' nf IS.V.', ;:s in th.it n't New IJrunswiek there had np)ieared isniated instances of mmpound iintir>. It can unt hr .s;dd that any rral endeavor towards compound duties is manifrste'd in thr "urill' of I SGli, although there is a tentative attempt in this direction in tlie tax m\ tea '--an exprriment •rreuiiient r]A\- said : i<.;cs ^lioulfl lif iiiotivt's It' the Ifss 'ti'icnition I tliut liad wliich jviis I'lii'tli.^r i'olluw.'il .mt in tlir impn-it ion df m ci ,iii]> iim.l .!ut \ ' on tobacco HI lS(i7. riiiM-c aie t'fWL-r nnnnniMniti'.l -uu,,]^ in tlii- taiiti than'in llic carln r taiili;. A ea-,.' in point is tlir tullnw in^- :' ;,|..,)liolii; )M'it'iiine> had l.c.-n include. I in tiio gviirral lyir ,,n sjiirituou- liipiois: now tliry ui-.- da. .'d -.eparatdv and aic made tliu >ui.iect of a sprciii,- fax ■'" 'I'lus tendency to\vard> L;ieaier .l.liniten.ss in p-int of enrmieiation, conies as a eon-cpirnee of llie development of liu- taiiti' and tlir more tlioiun^li 'leiinaintaiice on tlic part of tiie lr-islature witli tin- various fonii> I if laxal'le coinneHiit \ . I'he niMiv d. ■Unite adoption arr included c-oiors wleai imporieil \\>y thi' ii>e (if wall pa'per manufacturers I lehi Schedule K j.rovision is made for recip|-oca! trade with the I'nitcd St.it.vs in a-rieidtural products fish anlecti..n in ISTo; this lariti' wa-, t hroii-iiMiir a i .'Vi'MUc one.' TIl- dictum of one ..f " the fatlcTs i> of imi)ortaiice, liiu, it mav i>r i.o^>iM,. to dis- cover ill the faril! itself, as we'd as in the views n\' tlio-.e wlii; had to do with its I'litorcemi-nt, s.-iur concludoii> ilia' run cmniter to such a pli'a. \\ e -hai: tir^t examine the internal evidence. It ha- heen noted that the I'o per cent. Mdiedule i.. piacticallv a luxury tax. 'I'lii- tax mav Ke |ook,.d upon '■'■^ •■' leiic of (he ..Id i.jea that taxes -hoiiM p!v~,s eiost heavily on ai tides of '"'''">■ '''" e\i.|en.-eof liisioiy warrants the com-hision that taxes pntakin- of t'le ii-auiv. ,tf sumptuary h^^jshitiou ;u-o not hi-hlv succe-sful. either in afcoiu- ph-huiL; their m.)iv liiiue-diai.' intention or in the secondary and m..re p/o-.-oc one ol raisin-' ivvenu,.. The more specializ-d .•vidence of iinan'eial hi-torv aho alhuds exidmeeof the t ruih of Miis.;$ Th,. n-ason of tlii> is not far to seek. "The Kinanco .Miiii-ter lia> primai-ily ;.. cond.h r the (pii>stion of I'aisim; re\-enue— alth.ou-h the uiatter of nK^idence has ul.so [o he home in mind— and he liiid- t hai . unfortu- iiat"!y, a^ is the n.'ce.ssities of life -Adiich, under normal condition^, furnish t.ho I'uik of ilie ro\-''niie. Luxuries are of lIuctuatinL;- demand; .'.e d.'mand for the ' s-aii'-.if li;,. i> |,.-> suhje-n to dtai,i;v. 'I'lie fact- oft 'ana lian tiiiaii. iai history -hoA that ihe receipts from tlu> l'o per cent, list Were iait small. \pail fioTu mere ahstract .piestioiis of finance the di-cu-sion of this sui.ifct is ol" imp .ftance in til:'; it throws s.a.ie li--ht on the inienlion- of the frainer^ of the tar.'if. The <'tliico-econo:,ii,' \ i,.w- shewn i-i this attenij.ted control of luxiiry iv-ult from the pitermdistic concepiion- \v\\'\v\\ ar.- assodattjl with thr the..i\- oi' prot.'cLion. Atiotier ],ai-t of the int.'rnal evid.'uce is to i„; haiiid lu the iV. e list and •'^'''";'''''''' }■'■ ''''"■ _f'i"'''' !i-t stales that iron, when in par.ial manuf.u-ture, is ;idiintt.Ml free, the intention hein- to heiielit Cana.liaii in^n maiiui'aclur. r-. A still iiioi-e important clause in the i'vw list is ' ciLiis udieii imporod for the use of wa I paper manufaeturers -^ultramariiii', umhcr, lilue-hljiek. Paris ereen, su--arof lead, .■tc.." shall he admitted free. There is laav e\ id.'iil a d.-hv to' henetit the home manufacturer hy means of tin- frc li>t. The pi,,\Kion made foi jedprocity witli the riiited" States is in itsdf an e\ idei;ee of protective int. ait. f.ir -iicli ■/ n ',,1 j,,;, i/uu transactions ar.' as a nil.- pr.itective. 5 |icr cent, uiul lye. iifr ixiuiel. K?1.20 per gi\l|..i,. ; V.y tli>' iiii|.i.>iti'.n ..f .lutifs mi hivailstuir. an.l C'>.il. ?IJ;i>t..l)Ic'< Pul.lic I'iiianc.', ;.]). 110 an. 1 till 12 Xhw witli icL:Mril id the I'xtfnial cv iilfiicc, lliis is to lie fduiid in tlic s|ic('olies (if llir tiiinnci' iiiiiii'-trrs dI' tin.' priMdil lSti7-74,* wlid, wlicii iiiiuc I'lntcctinn wa^ «l<'ni)iiiil('il tti wliri) till' ( iovfniiiiont .iiil imr mc lit lo innit dutii's, liel'ciulcil i1;l' jiosition taken nil llic ^roiiini iliat tlic tariti' in \m._;iu' lui'l piottctinn in its nature, tliat ill sliort it was n //I'/f'u/iw/ i„,li''/. l)i->'jriiiiiiiati(in lu'tweeii ■ luntectioii " ati'l " incideiital iiinteetiiin " is at liesta vain Miio, t'orall ilo iint see eye tn eyi' dii t lii^ i|iie-t idii. t bi'ii liein^' ii>) lixed standards l)y wliicli till' lilies iif deiiiai'catidii may in dett-riuiiied. Sutlicieiit, liowmei', lias lieeii adduceil, Imll' n\' internal and extenial evideiu-e. to -Imv. tliat soniewliat of proti'ctiiin was ]ire--i iit in iliiv inritl'. Tiiie, it wa^ iioi |.Mtectiiin in a> lii^li ile;iree as ai'ierw ai d-- a])iMared. Init none the less was it |irntectiiiii. (>ne eaiinot AVt'll leave out <>!' fi)iisi(|t'raf lull the Tree !i-t and elaiiii that i'ecaii-e the duties ;iiv, )V)t on the face ot" them highly protective, tlieielofe the taiill is not {H'otectix f. As it .ill'e.'ts ;i p;ii'tieidar indiistiy the-etircts are, in the main, snmewhi'.t similar whether a tax is iini-osed to iioiietit a "TovviiiL;' indiistiv ()rary expedient iiit(Mid(nl to tidi/ ovi-r the intiM vonini; time until the Dominion Parliament should meet. When l'arli;imeiit net representation- wore madt^ h\' the ( 'ommittec of Way- and Means which wei-e incorporated in the Tariti" Act id' the yeai,s} 'I'Ih; section which has --pecially to i|o with this neuter is section l!> — So much of any Act of tlie Lt L;i-lature of the late I'losinccof <.'anada or of either of the I'roviiices of .\o\a Scotia or Now iirunswick as imposes anv di)t\ of cuvioms or makes any provision in any matter proviiled for Ky this Act or is inconsistent with thi* Act is herehy irpeahd, ' Thus was a L,"eneial tariti' applied to ( 'aiiadji. Although tiie hominion Parliament had thus h.'^islatdl and had put in fotco ;i L;'ener,nl taiitl it- miuht, at liist glance, vi'cm that it had tacitly ahnei^ateil some of its sovereign power to levy customs rnns\\ick to levy exjiort duties on loi^s is still preserved. This wouM ap|)etr a si'i'iou- \'iolation of tiie section of the ('ustonis Act alicady (piofcd. Tlie provi- sion coiitaiicd in tlie l>, N, A. owes its presence to peculiai' circumstances. The oxpoj't tax, so-cailcil, on lo^- was really anahiLi'ous t> eidleis' dins ; it had been imposed in the form ol'aii export rax hecause of the diiliculfy experienced in col- lecting' it in the form of ^nuiipiLie duties,"''^ The tax+-'- on lo;js coiititiut'd in force until I'^Tl. When the Wa-hiiiL;toii Treaty was siL^ned.in that year, il was found thai lie eontinuancf of the duties would run counter i o the treat v ohliLTations 111 ill I'm tij ill til ml a f.i te| 111 •), ';?»<• ll'.Ol'H I'sprciully H'lhxtl'l Ui Is7!. Tl'f c('H'.-.-<'. the (lis'.ni l>itUT ' ll''tts i.f thtMiiiiic^iti'm of ;i nou- t:i\ u il! lime to Ix- ri'iiifiiiln'ri.'il ii. liiiiita iti.ui lit this. lArticlf 12:^ H,N..\., ^;u Vn't.. Ctip. 7. B.N. A., .\iticl.- fJl '*>■>./( (Iray'^ Hi-' ry ..|' ('..nfi'it, •ration, vol. 1., p, (ki. ' iThis i'\j' lit .luty on l.>t,'- M pr^ \ iiieJ for in (.'iKiptiT lo, Title '.\. K. S. of X, 1',, i;j '10 SllCCfllC'S L'ctiiiii was it-s iiatiii'o, s at lifst a .stfui(Iai(l.s \{'\r\\ lias M'wliar of II a-> liiMl, IK' (.'aniKit lie (hitirs ii'otec(i\'e. ■joiiiewliat liiT a tax III I fact lire 't several that the tiTfil liv Is ^illl|l|\• intil t,li"i' on., were il in the is ni:ii(rr ivincc of iii|i(jses '.V this I '^'I'lifial in foico I SCIIH- (if of N I • w ■ ipjii'ir a u pi'ovi- The ui hccn in col- ill force s fiiinid iiratioiis Ml liitiita incurrcil, antl the export >e(l pr>>v\-l- in.; fur coni[)ensation to New Urnnswick. The ( "ii-toi"is A't which had hccn pis^nl in JMei wa> adopted in ImJT l'ytli«> lir^t- ParliaiD'iit of the himinion. 'Two Acts wcri- pa>>"d oii the -^ul'iict : tlit» Mrsff di'tinini;' in creator den'reti the dutiahh' foiins of s|iii it«, ; t he Nccmd', impos- ing the new taritl. Section li>, (drcady (piotcd, iiiipMscd, Nulijcct tn Artich' 124 of the l).N. A. ft L^eiieral taritl' upon the dominion. ( )iif i,r two minor change- nve made in this Act ascoiiipared with that of Isiii'i, The Tarill' Act of iMii! imposetl a Compound duty of 7e. aiicl 15 pn' ccni. nn tea. Thrrf i^ a ditliM-iit iation, for on Mack tea their i.- imp'/sed a duty nf '•'»■. and 1 ') per ciiit. wliih' on meeiv tea tlierc i- a rate of 7c. and lo per ci'iit. < >ii toliaccoyj th^rc i> a tax of Inc. and o per cent. In the cn^e of the compwiind duties imposcil under this Act there arc undiiuhtedly two I'li.'iiients pre>eni. Ut. ihi' desin" to pie\,ni uiider-valuatioii, 2nd, the desire to ohiain reveiiui;, tlio hittiT iieini: piohalily the mure im)iort!iiit The policy i.f impo^in^- .such a hea\y tax on tea, an ai'Licle whicli, ahh(.iiiu'h osteii- silily A luxury, is almo.st a iie^'osity to the imorer •last's, is open to ■|Uestiori — especiall}' when the i'ate.s on liipioix weii' juw. 'i'he clau-.e of the l!iiti>h North Anieiioa Act which reserved to New Hiiin^u ick the ii_dit to impose •txporl' duties on loi^^s i^ave ri-e to a >iinilar claim on the pari of i intarii > and (^»ue|,t>c ; and thus we liinl that in the recoinmi'udation !'ro!ii the ( 'oinmitt f Ways and. Means a pro\ i^ion was made for a duty on lo^s, etc., when expoi'ted liom Ontarii and '.Juehec. The >ame i-elative justiliention for tlu' impo.>iti(jn "f such iluties: liid not exi.^t, in thi»case.n-, in the case of New llnin-wiek, iiud sMwith ih'' 1'',l\"c of the House the motion ua-~ diupjied. Tlie changes uf jNtjN hail to d" with details Tiie ^pi-eilii' li>t was altered iu a few particulars — animals were added, whih' ales, lieer and win. wei'i; moved to thi' compound list. The fice list was.aU'i e\teiideen varied from i.-^l in the ca-i' of pine to S- per thousand iu the case of oak In the pre\ iou> se^.-^iou a tax of |0 prr cent, uu lnead-t utts ha'i heeu imposed; tliiswa- found towuik in;; way detianaaital tn the interest of tlu- Maritime I'rovinces and it was leinoxeil. -'--'- I'.y this time the < "ana liaii tariff' ha 1 lie.ii snlliciiiitly Ion- in operation to all'ord some statistics with repaid to tic pri'-.-uie if cii^tom^ duties. .V com|)ari- son (jf the trade atid navigation return-. i<>y the year iMis with the returns ccm- tained in the sessiomd papers uf later ye.-n--. uivo the followin.;- le-u't^. The diU y on the total impotts, hoti, dutaihie and free i.> 12 pei' cent , nn tiie dutial'le L,'oods alone the axera^e rate is 'Jo.-J^ pei cent. In order to e.stimate tiie pit-s- sure of taxation, lioth specific ami «'•/ rn^itrcm, .>ome detaiU may lie eiven. ( )n molasses the rate of taxation was. mi the averaui-, 4(1. !I4 per cent ; on su;^rar of all kinds, on the a\ ei'aL^'e. 4-' J. Is per cent : mi 1 1 our an 1 ncal, s "i-l per cent., and on ii'on, 1").01 [)ei' cent. l''iom this it may lie .--een that the aserai^e rati- of duty (jii hread-tufls wa> low. The year iStJit was not .li.stin-uislied hy taiiti ehan^es. In the ytaii 1>S70 advanta<"'e was taken of the i)ower L;i\cn in iMi'.tSS to imiio.'^r draw hacks. "^ 'Clu' \W Vict., Ca]'. 4. t3l Vict., Cii)!. t!. X-\\ Vict., C.vp. 7. iiClKara i\c>|itc,l. The pro]i inailr use nl' in an r^iK'!i\' 'i' to incira^i' tli«' nnni'iiT ol" sliil» liiiilt t'oi' fXjiorl ; 'm particulnr a tlrawliack \\a> alluwi'd oii imii used in tlic nifiMiiFuL'tiiic of coniiiositf ships I'or ospoit.' 'l'hi■^. in thr rarlii-i- yrai'- oi' its workin;^-, was tli(Miiaiii usr niaili; of thi- jirovisiuu. JnilLjeil IVoin tln'tl rrtiu statnlpiiiiit, iliawliacks mav lu' charactA-ri/iMl as a ' liarkin:; liaci< tn nn'irantil- isiii."!* Their ii-lativo justiticatiijii, so far as a ]i:irticulai' nation is foiiccrnoil, niHiii thi; estimation in wliich tlii" oxport trade is held I'V that nation. I 'iider |irot('Ction tlio <'X|>()ft ti'ade is made miicli of. 'I Ih; h'ei>lation on taiilT ijuestions, in 1^7". hi^'ars mai'ks of tcntativono-vs and li('sitanc> -a tentatix I'lU'ss and hesitaiicy whicli is chaiacteristii* of the snccctMlint,^ year. Tlie Act phicinL^f animals mi th(> s|ieiihe list in iMl"^, i- n'.w icpeaicd. anil animals are a^ain placed on the nd ciilnnin list. In this yeaf, as in 1^71.'' jndniiie' fi'om the evideiii-i' of J/dnsaril and tlK^jonrnals, the ( JoxLTntUL'nt, instead of leading', was < 'i'lie necessity for increased revonnos l>roni;1it ahont some taritl" chanu'fs- The dnty on sjiiiits was increased from 70 to SS cents per i^'allon. An increase was also made in the ca.se of the dnties on wheat hreadstuli's and e(Kil. in these latter duties ihe desire for I'evenue is not the most important caiisi?: tlie motive cause was more jn'ohaMy the idea that liy tliis means ^reater pi'esMn'c could he liroUn'ht to hear on the Uniteii States ( iovc'rnment, so that more, fax'oralile terms cou'd he ohtaiiH'd in the Washington tieaty. These modifications whicli have hei'n spoken of had to do \vith internal cliane'es in the Act : section I 1 of tlie C'nstoms .Act of this vear ma\- he said to have etlected an external chaiiL;'e. This .section provides f jr an increase nl' y ]>er cent, on all the dutial)le yoods ; that is, the duty leviable on an article was to he increased iiy the addition thereto of .') yi-r cent, of the amuunt of duty picviously imposed on saiil articK'. It miifht lie lu d that this addition to the duties imposed by till! general tariff is sntlicient to constitute this year a new larill epoch. ; but as the increase of duty amounted to only •; per cent. — the duties now standincj on i^'ood.s X. (). V. at l.'i'i' per cent. — it is well to consider it as an intcLi'ral portiim of the 15 per cent, tariff; the more so as tlu' iucri-ase was rif ^^hort duration. It wa.s expected that, from the minor cliani;-es in the taritt and the ; per cent, increase, there would result an increase in the revenue of .*:?")7-'), ()()(). The retaliatory duties which had been ini))(>seil by the ( lovernmeiit upon coal and breadstuH's were imt widci)me to the evneral community; neither was the ] per cent, addition. The Boiird of Trade of Montreal, as well as other representa- tives of local interests, petilioiUMl against these increases. The feelinL,'' which had been shown in the session of lS7(),did not lessen in the session of 1871. .\ll throu^di these.ssion petitions aiul ipieslioiis wei'e directeilat the (Jovermuent ; ihe i^ist of the general demand was that the obnoxious duties, of the pn^vioiH session, should be either reduced or repealed. To cit(> imt one of the many jietitions which were presented, it may be noted that on March 2"_'nd. lion. .Mr. Workman presented a petition from the Montreal (Jorn Exchange a^'ainst the trniin and tlour duties, settinj.^ forth " the propriety of throwing otl' the duties on the necessaries of life in order to render this country a cheaper one to live in."** The cross-tiring on this (piestion t(jok up much of the session. During this discussion an ex[)ression was employed which is important in the later tariff history of Canada. Against the pro- *33 Vict., Cap. 0, sec. 13. t Vide article on Drawbacks in Palgrave's Dictionary of Political Economy. \"ol. I. + With reference Ui the duties on coal and l)r«ftd«tutf!f. §Tlu' debates and jovtrnals of the years 18701 are somewhat unsatisfactory ; it is altU'Ht imposiibla to discover in them any wt»lldetined principle of prooedurti\ nic-vs ariil II' •-iiC'('c('(|ii-io' "w ivpi.al,.,'!. a'< in Js7I, ii''iif in>inaii atiLTcs, The inci-f as,. w;js 1 tlirs,. lattl'f ii'itive cause Ills coiili! l,e iili iiitmial I'c sail! to ase III' I jii.r ^ was to li(> I'lvviiill.sjy ■ie.s imposed <'p(>cll ; lint \' staii'linor i';il piirtidn atii.ri. It ,' I'i'i' cent. iipnn coal WAS till' j •I't'esfnta- "liicli luid tlllOUl^rll uist of the -should ho lioh were esetited a !!■ duties, of life in ',:,' on this •^siori was t the pni- i Iiiisal to remit tin- duties it was olijeoted liy the Finance Minister. Sir Fiancis llincks, tluvt the aeiion III' the ( nivernmeiit in impn^iii'^r thes.' duties, wms in acci>rdaiiet!iy of note, in th.at tliey estaMished pi-ecei|ents, which have \<'-f\\ more or h'ss lolloweil e\er ^inct;. Section 4 jirovides that upon the authorization of tin.' ( iovei-nor in ( 'ouncil machinery, tlie like of which is not manufactur"d in t'anada' may In- aduntted fri'e. Section .'J provides that the ( !o\enioi' in t'ouncil may fiom tini'' to time transfer to the free li-t, ai ticles u>ed in coui-,e of ( 'aiiadian mauufaetinx s. The discrc.'tionary power of tin- (Joveninr in t ouncil, manifested in th>'.^e si'Cti'iiis instead of (iiminishin:.^ increases; the tariU Act of I Mt-J- cKpressly state> that the power exists unchanLi,vd and unimpaired. In the year Is?- the eli,in_;e^ madi- had to do with tlic duties on tea and cotl'ee. It was not so much the advi-nhility of lii;hteninn- tln' [ires-iue of ta.xation, tluit intlueiii-eil the ( loNO'iimeiit . as the lacl that it wa- I'orcd into s leli u Imo of action liy tlie tarili' ieyislation of tlie rnile^l States. \\ nmy riii di-in- ■4eiiuous to take .such a view of i]ie ( }o\ frnment s action, hut the woiif, ,,\' .Sir Francis llincks hardly admit of any other construction heim^ phiced upon tle'in.! lie said in suhstance on May "ilst, is72 'rha.t it s\ m-> exp.dien! that all thediities of customs whether lo/ riilm-iui. or sp^'eilie now jiayahle (ai t'-aaiel i'-howed how tic national pow>r was hi'iiijLf extemled, for the tariff of the JJominion is hut einhl..iuatic of the power of fhe I'ominioii. The year iN"-) witnessed a further extension of tin.' territory over whiidi the national tariti' iiad force, for in this year it '.ras ]iro\ ideil tfi it on and aft«r the 17th of May, IS7.">, there should licthe same customs duti's for .Manilolia as fi>r the rest of the I )oiiiin!on.'' The year 1S7.'> is the eu'l ol this period. In this the la-t year of the opi.^ra- tion of the old t.iritf the duties remained at thi^ir normal level Some chaiiL,^''9 were made in the duties on ale. sU'.;iir and tohaccci. Thes,- ehau^aiB indicate a further takiiiLf into favor of the principle of compoui'il duties. The policy wiUi reference to the iron industry remains unchanged, the same encoura^'i'uient hidiin' extendo'l as heretofore; i. (\ tie' iron Lj'iods on the free list are in a less advanced steite of manufacture than tho>e on the live per cent. list. During' this whole pei-iod the duty mi j^oods N. E. .S. was j." per cent. +■'■ liut in order U) apprei'iate tlie pressiue of dutie« on all diitiahle ^-oods, wdiether under specific or ad rdlnrcm rates, the returns of the Dejiartmeiit of ( 'ustonis must be referred to ' | During the years lS(j.S-7+, a period of seven years inclu'^ive. the average rate of duty on all tlntinblt' goods was I'.t.iiO jier cent. nponible to ':i\ Vict., Caji. 10. +/'.(t/. I I'iile Hiin.firil a.w\ .Iii\ini;ils nf Hmise ii lli:\ i:m!: < tvi.v. Tlic ri'sult> of tlic stormy ]iolilic> "f In7-') wlT'' tli'- sulistit'itioti of a Lilirrul ailiniiii^tratioii t'ni a (.'oiis(jrvat,i\r oiir ; ami tin' li('L;iiiniiiL; of a lu-w rpocli of taritr I Mil icy. 'rill' ]icrioil 1S74-7'S was oiit.' »)f iHliiciiky in rniaiiciiil circk's. 'I'lu.- woild- Avi'li' ii('|)ri's-ion lia'l its iiilliifiu't' in ('anaila. .'^o clo-cly IiuuihI tom'tlirr arc tlic. nations tlinl constitiitt' tln' " lu 'ini I il ic uf ( '.ininierfo,' tliiit tln' jmuic and iltjuc-sion wliicli iitli'ct one soetion oj' tlic world, .altcct also ulj oilici )piiits of tlic coni- niLM'ciai I'oniinnnity. Siicli (•(aiditioiis as ilic-c ma'lc tlic t;\~\< of tlic Kinaiicf' Minislcr a ditliciilt one. Wliatcscr ilic aliility nf n. tinancicr may lie, tlic otlucts of a lniin-coiitinucd dc|iics>i(in. which V(.',Uicc> ilic noIhhk; of ti'adc and so lessens tlic means for tlic raising of rcs'cinn.', miist nf necessity, '^ivc rix'tocnii- ditious, ilic rojiti'ol of wliisli is, in L;rcat dcn-rcc, hcyoiid liis jiowcr. 'I'lic ]>iilicy now adopted was avowedly one " for rcxcniie only.' 'i'lu new administration hail paid miicli att"iition to the five trade arijiiments of ("oKlen and i!i'!:;ht-, aiwl had iitd'oic its t'yi-<, as a conscious ideal the .xamplc of Kiii^land. J)ot!t r'l iiii'i i'< adherence to a policy which should issue in free trnde couiiled with tlic dcprcssi(;ii thai ])i'cvailcd did much to hrine- ahout the snli>ci|Ucnt downfall of the Ministry : tor, at the time when the Governm nt wasdc\oted to Uxv tratle, there \\as also a. popnlar demand for protection. The eeiicvid rate of duty was lixt'd at 17'. per ci'nt ; this was an lolvance of -l ptM' cent, on tlie ccneral rate of the foi'iiicr tai ill'. iUit it was not so innch the increase as the ]inr]'ose underlyine' it that agitated the ])opular mind. On the whole, duiin^' this period there wa> a sli^^dit iucicasi' in taxation. In the period I ^l(i^-74 the axcrage rate imposed had heeii ]!<.."() per cent.; umler the tariff of lN74-7^ the average I'ate of duty was liU.+.'G per cent. Thus it can he seen that the ])rcssure of ta.xation was hut slie-htly increased; the way in which it was increased ami the ])rinei])le that actuated such increase is to he t'ound in the taritl itself. The Tarill Act of l.s74 was passed in amenihiieiit v^ the Taritl Aets pre- viously in force. 'i4ie tax ili\i-ion> of the old tai'it't' were in the main retained. The 15 ])er cent, li-^t was chane(Ml to 17'. ]ier cent. ■'' and a liO p( r c( lit. list wa.s also added. The 17.1 jier cent, list wa.- intcndeil to contain the articles with which the home mnniiractures came into competition- -to this extent tlure was incidental pr>itection. liefore dealim; in fuller iletail with the itcm> of the tarill". ir may he well to show fiom the statistical returns for the year, the relative importance of the diflerent rates o|' duty ami also the prior importance of the 17.' per cent. duty. The total amount of dutx' ohtained in this year is divided as follows ; Total specific 2.S,()(JJ^ dS 2.") per cent, duty 2S'2.il7il "x; " 17.'. " '.•,;■) l!t,(i(iS (il " U)" '■ 2s:}.242 !)."■> " " 292.8:U 2.S *37 \ ict.. Cap. r(. " "" "^ ~'^ " " ' ^ 1 111 this Ci'inu'ctiiPii it in uditliy nf remark that \\\r ivto nnifii'l.i i in frien liir C niiinitti i' (if Ways aiul Means— i((/' .Icurnal.^ of llmis. — r'»'f,d<; "..Ml pouts N. O. I'. . . , :.li,.ill li,' diar^'o! witli in-: \,eT cent.,' while si ctiim 1 of the Cust .ns .Vet reads, " All gio l.s N. K. S. shall l>i' liatili.' to I'i \ivr oi'iit." 11 C(| .l| III oj A el Sll 17 ■\V r|i.i(,-|, ()1* 'I'lli' WdlM- ln r aif the- 't" tile Ciiin- li'' I' iii.'iiici' iiy lie. tlu- traili' and I i-^f to con- Tlii iii'W (if ( 'nil W-n 'i' Kn-laii.l. iilil.-d with t down fall IVcf ttailf. aihaiun.' of t so llilicll iiiiiil. < )n 1. In tlie miiiii^' more revenue lirou^ht ahoul tliis ehaiiyc ; it was .stiemionsiy oppOM'd in eonmiittee. The constant tendency oF the duties uri tohaecos and spirits to incri'ase is nianih.'st here. Cij^'ais are now taxed 7()c. per pound; spirits enuin(»rated are taxed SI. 00 per i^alioii, an ineieascoi" 1 'Jc, wddleoii nnftnuiieiated spirits there is an increase of .'iOc. per i^alloir There is no \ryy jiei'ceptilile te?i- dency to inerease tlie minilier of j^oods paying couipound duties. The duty on tohacco and snuff, wdiich had hitherto heen I '>c. and "• percent., was now inereascd to 12o pel' cent, and i'u'.. whde the duty on suyar wa,> fixed at ::") per cent, and IJ.c. This latter item is an addition to the compoinid li>t. 'l"o come now to the oil mlnri ni, list, in addition to tlir 2'> pir cent, li-t, there a]ipears a 20 per Cent, list which may Ik; con-'ideied a conqilenn'iitaiy " luxury tax." 'I"he ;L,'oods taxeil unih-r this new list are silk>, satins, vtdvets, ^old, silver or plated ware and fancy ;,'o')ds. To the ID per ct-nt. list are added locon.otive en^'ines and their jiai'ts, and machinery for mills and I'actories. which i.'^ not manufactured in ( "aiiada. This list also iiududes cattle, ijreen fruit, .seeds and vegetahles. The proti'ctioii i'ornierly exti'uded, ly means of tin- free list, to jiartially maiHif'actured forms of iron is ikiw taken awav and a "> pi^r cent, tax is im])ii->('c|. In the tt'iith section of tln' Act,* however, tiieic apjieaix a departure from tlie purely " K"\eniie Taiilf staiid[iiiint. i'lie [irox ision in <|Uestion, vi/ : " That the (lov-rnor in ('ouncil in, ly admit free n\ dnty, until Im7-t, machinery to he usi'd in L'anadian maniifactuio tin- like of wdiich is not made in Canada,' is undoiditedly, on ihi- face of it, a concession to protec- tion. This provision had first lieeu enacted in Is" I. and had since then continueil in force. To apjireeiate its iieariiii;-, in the present Act, it must lie iiad in connection with the 10 )ier cent, list, which ])rovide- for the imposition of a 10 per cent. piiin of dut\'. is the repealiiiL;' ol' the expiirt duty nn --tave l.nit-aiid oak lo^>. The yca.r ls7<' witiic-s-d an iniT'MSf in t !ie exple.•^.■^ed doirc i'oi- jiiotectioii. 'I'he disciisvioii of this t'^ndeie-y lowar !■- protectioiiisni, a^ manifested in the popular mind and in the e\pie.--ions df ihe railiameiitarv i'i'iin-M'ntati\e>. eonics u]) more tittinifly in Connect ion with the taiitf of l.s7y. Siitlice it to say that during' the yea,rs ls7o-S t'lr deliates in railiament on the relative merits of Protection and Free Trade as jiolicies for ( '.inad.i. wer.' mori' and more minierous. The administration w.is nnich exercised over the continued ilepre>sion ; and a eonmiittee was appoint"d to investigate the ('auses of the depression, inter- esting;' as the depression is, from the statid]) )int of neneral financial histoi-y, it is still more interestimf in the hearini,' that it had on the moi-e s!ieciali/,e(l (piestion of Canadian Taiili iiistory. Under the tariff of i.s74' more than half the revenue was rai.sed from the 17! percent list. The effects of the contimied depic-sion wero .seen in a reduction of the volume of ti'ade. In the 17;l per cent, list alone there was, in the six months etidini,' December, l!S75, a decrease in the importa- *37 Vict., Cap. tj. VAS Vict., Cup. X-, 2 T.ll. 18 tiiiMs (if !*1 0,700 ,()()(). 00 : us a ir.siilt of this tlicio was in tliis pnidil ii "lucicaso of !?l,S()0,000.00 in tlic rrvfiuic ulitain(!il I'roiii the sfVentfen an"l a lialf per cents. SiK'li a condition of t^)ul(^ accounts, in ^rcat ilci^ri'c, foi tin- ir'r to l<('c|i tlie liurden of taxation fron» helun' unduly .L,'reat. Tiiu^ wr tind tli;ii tlir |irti-ci|('nni duty, which had Keen l.')c. per ;;allon, was ic(hiced to ('n.'. per i^'idlon. Tlir evident intention lieiuu' to lesscMi tiie pressure of taxation on what was now a necessity. This beiiclit was, liowever, niininii/.ed hy an increase of twn eints pel' pound in tlie tax on tea. 'i'his was intended to counterlialancr the diminution in revenue fnjm coal oil. The a'lvisahiiitv of taxini,^ so lieavily anotiu'i- necosity is at hest (pies- tioiialilf. The tax o!i malt was increased t(j 2.1 rents p.-r po\uid. Tliis would mean an incrcasetl tax of ahout ;') cents pel- gallon on lirciv-'- 'j'he treneral taxes on spirits were not raiseil, jind it mitdit he suL;L;"esteil tliat. e(aiipai'ini,' the com- pai'ativeiy low level at whicli thr spirit tax stoml, vi/, , .'\\k and liiirii thread ; tlicsi- had heeii on tho 10 jier cent. list. Tuiies and pipini; were taken from the frre list and addiid to tlie 10 per cent. list. The duties, thus increased, were intended to iiK-reasi.' the revenue hy !?'»00,- 000 00. Although these amendments ^ave an increase, they hy no means solved the dillictilty. The deticitfur the year precedini,^ was ?sl ,U01,0iMi.00 ; it can readil\^ be seen that, if the deticit were to lie avt;rted, ami the evil etl'ects of the depres- sion ovcreome by t'lritt'chaui^es, then the amemhnents of this session were not sulHcienth'' drastic. The etl'ects of the financial depression were still felt^j for the iKM'mal customs revenue had decreased by 88,00(),0()(*.00. 'J'he imports liad ilecreased one-third in value. The reiinction of imports, iwr cdjula, was from ^•■i.".2o to 82.'). .50. Althoui,di the revenue was in this stiite yet there were some siu^ns of bcjtterinj^' conditions, for, in the seven montlis endin a drliiiiti- popular ;id')|ition l>y tlie Dominion of ( 'aiinda nf the polii-y ol' protijction ; simi' tlieii ( 'iiii ida lia> eontimu'd undir the siuur policy. Melon' discnssiiiL;- the policy itself, it will li" wdl to look somewhat at the history of the oi'i'^in and L,'i'owth of the protect ioiiist movement in ( 'anadii a movement which culminati'd in the policy jidopted in isT!). In order (o trace this devehjpment it will In' neei's.saiy to ipiote.sonicwhal copiously from the deliates of the House of Commons, anil tlie newspaper files of tlie time. The petitions which were sent in diiriiiLj this period wei'e maiiv, and the ends aimed at were ili\erse. lU'LcimiinL; with the year IST'I we Hud expi-essions with reference to protection. Hull. .\lr. L'urrier* presented ,i petition from the (Ittawa llojird of 'i'rade prayin;,' "that a duty lie im])osi d on coal, salt and ))etio|eiim, and on all mannfactmcN imported from the I'nited States, and tliat a duty he imposed on iill articles im[iorted into ( 'anada I'roiu the United States, the same as similar articles were charged there." The ohj(.'ct aimeil at in this petition was a composite one: it aimed at liotli protection and retaliation. ,Mi'. M. C r'ameron' presented a nnmher of jjetitions from tlu' farnieis of Huron and {jruci? jirayinn" for pr.'ti.'etion to ('anadian produetion and manufactures, .Mr. (Jodin- asked for increased protection for (."anadian tohacco -this to he olitained hy means of the imposition of a hinher rate of duty. A petition was also received-' from the .Montre;d IJoard of Trade the janjiort of which wa.s distinctly counter to that of the jietition ol" the Ottawa lioai'd of Trade, Mr, Maijill i)resenti'd' a numlier of petitions for protection of ('anadian product.s. In the session of l!S7l petitions on the suhject of protection were received — - hut these were all in favor of the remission of the proti'ctive duties on hread- stutfs and coal. Sir I'Vancis Hincks opposed such remission, claiminL;', in the course of his arirumeiit, that the duties were necessary to a " National I'olicv." The use of the term "National Policy" on this occasion is perhajis the first a]»peai'- ance of this term. It shows that, cN'en at this time, a more purely protective policy was commeiicinL;' to meet with favor on the part of administratoi-s. In the session of 1.^7- the petitions for [jrotection wen; continued. Petitions Were received"' from S. ])a\id and otliers applyint;' for more protection in connec- tion with the cii;ar in lustrv. The memher for hei'ds and (ireiiville, during;' this .session, moved that a committee " ix- ap])oiiiteil in order to eonsiiler the advisa- hiliiy of protecting- the tarme'r, chietlv hy a protecti\e tarifl mi aL;ri('ultui'al products cominn' in from the United States." Later on" a pi.'tition was received from the Council of A<.(riculture of (.^'uehuc, askiti;:;' for "a reajilustmeiit of the tai'irt so as to eiicoura<,'e the cultivation of sue;ar, heet root, tohaccn and other useful plants . . . and also that a duty he imposed on forcii^-n a^^-ricultiiral products." *0n February 28th. 1. On Fel)ruary 28tli, 1870. 3. On March lltli, 5 On April '-Mth, 1872. 2. /i.i'l. 4, Ou March oOtli. 6. On Marcti ;U»c, lft7.i. to Tlio riiiimciiil (Ifprc'sHion which I'xistud thiriii^' the Macken/ic rt'^fiiiic iiitoiiMi- fictl tlu' ititcri'st ill |)r()t('<;ti(»ii, and it is diiriii;,' this |H'ii()«i thiit we find it dflinitivt'ly acccptt'd as a party policy. In \x7ii wIhmi Ihm. Mr. ( 'nrtwri^'ht had niovt'd tliat thi- llniisc yo into ( 'inuiiiittfr of Supply, lloii. Mr. Woikiuan" iiiost'd ill aini'iidmcnt " that tht> House di'fply iv^^rots to learn tliat the ( lovi'minciit has not pi'opost'd n policy oi' protfcijon and that tin' lar;,'!' ainonnt of ca])!- tal now invested in indiistrii's, and tlu-ir pirscnt dcprt'sscd condition icndtir such a policy lUici'ssary to restore them to a condition o|' prosperity.' Sir .foliii A, Macdonald also moved, duiiiin this M'ssimi, an ameiidiiient on the same lines as that of Mr. Workman, \>\\i hoth ameiidii'eiits were defeated. In this year a C(jiiimittt!(!, which had heeii iippointed hy the iiiiinufacturers to sec to the C(tnsor- vation of their interests, reporteil that they wero in liivorolthe existilin" I7A per cent, tiiritr heinif rt'placeii iiy a 'jIO.I per cent. one. I)uiinif the session of 1S77 discussions, with jJi-otection fi>r a text, wert.' nnnioroiis. Sir John .\. Macdonald moved*!* " that tlie tnrill' should lie adjusted NO MS to hcnelit tlie ;inricultuiiil, miniiiLf and ninnufactuiiii!^ interests of the Doiidnion." Mr. Wood also pinposed that the general taritl' rate he raised tf Canada re(|uires the adoption of a national liiiaiicial policy which li\ a judicious reailiustmeiit of the taritl' \\*ill heiieiit and foster the agricultural, miuiiin' and inanufacturiiiL;' interests of tlie Domiiiinn. '2. 'I'hat no such ivadjustiiu'iit will he satisfacttay to the interests alh'Cted, ... to the c(aintry, if adopted as a provisional means only to meet a temporaiy enier<;ency, or to su|)ply a temporary delicit, nor unless it is made and carried out as a National Policy. 8. That until recipi'ocity is estahlisjied with our iieij^hhors, Canada .should move ill the direction of a reciprocity of taritl's so far as the varieil interests may demand. Ill the House the matter was also dealt with .Sir .lolin A. .Macdonald moved,5} in ameiuhnont to the' motion of the Kinance .Minister to i^'o into com- mittee, "That . . . tliis House is of opinion that the welfare of Caiuida re(|uires the achiption of ;i Nalioiial I'olicy which hy a judicious readjustment of the taritl' will heiielit and foster the aLfrieulture. the mining;' and other interests of til"' hominion . . and nioviuL;' (as it oui^dit to do) in the direction of reciprocity of tarill" with our nei:^hliors as far as the varied interests of Canada may (.lemaiid, will L^reatly tend to procure for this country eventually a recipro- city of trade." This amendment was dtd'eated. N'arious other recommendations were made, <-.//., in favor of a protecti\e duty on thair and wheat, in favor of a duty of 7") cents per ton on im[)orted coal, lait the voice of the House was anaiiist protection. Then came the general election, the way in whieli the popular vote pronounced is matter of history. te or *A few years earliei tlic .n (»r II I' til rid" w'ill ■rests of tlio sts (ifi't-ptcd, ti.'iiipiiinry 'iinl fJinicil liidn should Icrcsts may MiicdonaM > into coin- <»i' (.'iiiKidii tistiiiunt of r intnvsts lircctiori of >f Ciuuida a iccipio- it'iidations i'tivor of a lis against pnlar vote ISHJOtl (if tllC !' thf House and in |Mipiil;ir upiiiioii throiii^rhout the coiintiy. Thi-M- faets may now ht; phiceil in nmro Hy.stt'iiiuf i/ei| lurm. To sum up : 1. Tlie ilesire foi |ir()te(!tioii was ;,'eneml and populnr, 2. Tlie iiiiiniiliK'tMiinu intorest.s and tlie fiiriinis wen dt'simui of protection.* .*{. I'i'oteci ion had, a.s otic main e'lid.in the first plaer, ilic olitiiiniiei nt' reeipm- city. 4. Thr ( 'iiiiservative pnrty hud n pdliey at h;iiid, lendy iii.'idc ; t'nr liotli the name, " Natiunal I'oHcy.'and tlie rate, L'O per eent . of diitirs liad laU<'n li^ld linth of the .lldU^" and ochs in ('anailiaii taritl" history. The protectionist leanings, evi- denced in earlier tarill's, had not heen so pronounced : althoui,'h the taritl" of I.SliT-TJ-, had liecn protectionist in sympathies, yet tlu^ duties had lieeii kept fit a compara- tively low level owiuf,' to the known opposition of the Maritime I'rovinciv- to luLfh rates. To have impioscd a fully ])rotective ])olicy at the time, would hii\c necessitated increased rates of duty, hut, as the linanciersof the time had the fenr of the .Maiitimo Provinces hefoie their eyes, nothini;' of the kind was then attempted. 'I'o attempt to trace chanLjes in taritl' ]ioIicy to single coiicifte inlhiences, is a hazardous ex(iciimunt. It is |)rolia.lile, howexcr, that the hi'^hly protectionist taritl of the I'nited States hail some inlluencc; in moulding popular opinion. It would he venturing; further into the tield of conjecture to assume that the "National Spirit" inculcated hy hist, liad influenci! in connection with the National I'olicy. It is certain that the \ lews ot" List had thi> in common with the principles of the National I'olicy, that much -.tn.'^s was laid upon the importance of the (levi'lopujeiit of home mamifactureis and the liuildiii'.;' up of the National idea. N'arious reasons co-operateil to L;i\e the Natioii.il Policy a L;ieat vo'^oie ut the time. The policy of the .\Iackeii/ie administration had 1 n eminently cautious, to some it seemeil cautiiais to the vei^c ot timidily. TUe dilliculties in linancial cii'cles reiuli^rt'd the task of the .idministration especially hard, and the people liecame weary of tlu- seeiuinn' lack (jf success of the " l!e\cnue Taritl'" policy. They wislu'd for hiitter times, they hlaiued the (u)vernment for not lirin^'iiin' tlieiii ahont. Then there is also in a neweountrv a desire for ipiick ile\el(»pmciit and I'apid. expansion, lail the Goxei'imieiit did not seem to lie in sympathy with these a>pirations. There was n'rowini,' up in ( 'anada a !iew national spirit; the s|)irit of independence, which promitted .>ir A. 'i'. (jialt, in IS.'jS, to state that "In earlier yc.irs it had been claimed ttiat tlie Cunaut the leJii'T in such panaceas is widespi'ead. I'.y the Customs Act of ls7!'*the new tai'itfwas ])Ut in ioi'ct,', and all previous Act^ runniuL;' counter to the ]iro\i-iiins of this Act were re])raled. Much interest had lieen taken in the proposed chanijes, and consei|Uti!tly, when Sir iiconard Tilley maile his Ihni^et speech, in wliicli tlie detailed elianL,''es were stati'd, tlie puhlic interest was excileil. The policy of the ( Joxcinmciit was, in general terms, stat"d hy the; Kinanee Ministei' to lie " To select for a hii^her rate of duty thu>e artieli's whicli are manufai't ured or can he manufactured in the countiy, and to have those that ai'e neither made nor are lik'dv to he made in the country at a lower rate." 'i'his is a frank statement of the policy of prctection. The Finance Minister stated tluit tliei'e had heen a ileticit of S500,0()0.()() in the pi'eviou-> year. It was necessary to receive an increased revenue of S2.t)0(),- 0(H),(K). "and in ai-rauLfint;' for tlie levying; of the additional duties, he would ask the llou.se to coir-^ider how it nii'_:'ht lie imposed so as to ^i\i' prori'ction to home industrii's." In tlie duties there is a ;4enei'al increase. The .somewhat elahorate schedul- ing' ai'ranixenu'Uts which had hitlierto heen in voniieare departi.'d from and a moi'e sini|)l(.' .system adojiteil. '{"he .system of arrani,dnn i^oods under cei'tain ]ieadinL;'s, e.(/., 25 ])er cent.. 171 per cent., 10 ])er cent., etc., is now ijiven up and many dilferinL;' stauilards are chosen. The tendency towarils compound duties is now more mai'ked. lender the " Revenue Tai-ilf" the duty on j^'oods N. (). I'., liad heen 17! ]H'r Cent. : under tlie new taritfit was ti.xed at 20 per cent. However, tht; real weight of customs taxation is not evident from this alone : the total duty, specitic, ('om]iound and (kI I'lilnrcni. nuist he looked at in order to show what the real pressuie was. It will he found m may he more readily apjireciated. Speciric duties, which had heen iiut sparingly used in the oltl tariff, are now employed in greatei' degree To cite the tariti' changes in detail wouh! demand too much space. It will he .sntlicient to choitse some iteuis ; in tins way the general sjiirit, which actuated the tariff', may he as well gatheiH d as if more copious citation were indulged in. On two hundred and forty-tivt> dutiahle articles the average nd ralorcm duty was 2*2. 2(i per cent. ; in addition to this thei'e is, on some of these articles, a speci- tic n hreadstuli's pi-otective iluties were imposed. In ls7>S the hreadstutf duties had hi'i'ii imposed in orcler to ohtain hetter terms from the Americans ; now the duties were im[)ose(l in order to protect the Caiuadian farmer : these duties on the main hieadstuH's are us follows : liarley, 15 cents per husliel ; huckwheat. 10 itents per liushel : Imlian e^rn, 7j cents per hushel ; oats, 10 cents per bushel; rice. 1 cent per iiound : rye, 10 cents ])er hnshel ; wheat, 15 cents per hushel; pias, 10 cent.'-' pi'r l.'Uslud ; hoans, l."i cents per hushel : huckwheat flour, j cent per pound: coi'iniieal, 40 cents per barrel; oatmeal, .', cent per pound; rice and sago tlour, 2 cent.s per pcunil. 01 Oil n] \\| iiJ 11 til til wl ill d iri oil CO n 12 Vict. Clip. 1." 23 ■^il'^o present "''i'-fJiutional || ; the n-rcat ■'licli Would i'"ial Policy '•itiKj imich u'idt'spi-ead. '>" pi'sivioiis ucli interest Mr licoiifu'i] ■ -stated, the in .^'cneral •ati' i,{ d„ry "■ country, li'' coiintrv O.OOO.OO in "f ><2,()0(),- \\"iild jislv '" ti> lioine tu .schedid- ■'1(1 a iiioi'o headiui^-.s, I'ld many <-^s is now ■ Iiad liren ■\'^\er, the "^•d duty, what tho time, the with the ^ niay l)e are' now It wiJl actuated 'il,i;e'd in. em duty a speci- • T cnt. H" duties flow the itii's on On oatmeal, riee and sa^o thf duties were comparatix cly hi-h : the duty on oatmeal was e(|ual to ahout '20.()'\ per cent., while that on rice and .sa:;'o Hour is iiearK' oO per cent. Under the former prices of wlu.'at the duty rate in 1S70 would bo aliont 1.') per cent. <)n coal, both Itituminous and anthi'acite, a duty of •'(> Cfiits per ton was imposed. ( )n cottons, when unmade, there was a compound duty of •"! cents and lo percent.; wln-n made U]) tliei'e was an "'/ I'dlurrni duty whii-ii amounti.l. on the a\erai;'e, to iT.I'l pel' cent. With reference to the irmi industry, altlpMiLjh the rates are soiuewhal hiii,her than formerly, it i-annot lie said thai thr duty was slroni;'ly ]>rot('ctive. So far as avoweij intention of fostrriuL;' tie iron industry by means 1 if prorectis r dot irs is cunciTned, the adoption of proti'Ctiou dati's fi'om 1 SnT. I'lnler the taritl' of IN?!' there are some iliiriy-si\ artielt-s of iron enumerati'il in the taxini; schfdule. On some of these the duties arespecilic, on some com])ouud, l>ut taken as ;i whole there is an axeraije, duty of M.IT per cent., a slieht increase as compai'e(l with the formei' rate (jf duty. ( )f sii^;ir ;ind molasses there ai'e some twelve enumer;'.tions se\-en oH the forms so eninneraleil liear a compound dr.ty. The averaL;'^ "// duties inijiosed. The avera^'e duty on woollens was about i.S.'iT per eriit. At the time an objection was made to the new t;i\e-~ on woollens ; it was claimed thai the pressure (jf ta.xation on the pooi'ei' ipialities of woolli.'iis, useil liv the poorer class-s. would be altout ."><> per cent. 'I'lie Idu'liest (ul rdlorem duty present is in the ease of patent me(li('ine~. which are taxe<| .')() per cent. Tobaccos are elriri;ed with a eomi)iainil duty. The duties on spirits are for the most part sjtecitie ; althout:'h in th».> case of wines and colo^'iie a compound duty is impos.il. In the ease of cologne the ml rnlit/rni rate is.|.0])er cent The free list contains some :i2(j articles. There is an exideiit intention, in the use made of it, to furtluu' the development of Canadian manufactures. Thus the increased rates of duty and the free list are complementary elements in the pro- tective' policy. The power of the ( lovernor-in-( 'oiineil to tran-^fei- dntiabh' i^oods to the free list i.s still recoj^'iiized. The policy of allowii^^ drawbacks which had been sanctioned in i ailier Arts,' aLiaiii received Parliamentary sanction : for, in this year, it was )iro[)osed that a drawback, on tlie duties paid upon all articles enteriiiL,' into the manufacture of exported Canadian ijoods, should be allov/ed In order to ibster the shipimild- iiiij; industry, a drawback was a\osinLr retaliatory duties on teas and eoliees imported from the United States was still retained : for in this session a duly of 10 per ct'ut. was imposed on teas so imported. One statement in the iJudu'et Speech is sii,'nilieant. and that is with reference- to the intentittns of the ( luvernmeiit towards the United States. ()ne leading ar'.^ument in favor of the National Policy had been th.it it wnidd place ('anada in a position of advantage witii reference to the United States, so that thereby recipivjcal trade privili'U'es mij.,dit be oljtained. 1'lie Tariff .Vet of this year pro- vided that, with reference to the natural prinluets of ith countnes2 if the United States r eliea l.'.l tl leir duties, ni whole or in ])art. tlie Can- adian ( loverniuent wa- prepared to meet them with eipial eonces-ions. .Mtbouijh the Government tl lU- madi' a statutory oiler of reci[iroeity, ii had tired ol the paciric attempts which had lu'en u.sed in the past. It is therefore of importance 1. ;(•-' Vi(:t. C;il). t, .«. 10. 2. Incluilint,' I'lnili'T. •2+ to iiotr tliJit tlie KinaiiCf .Ministor said tluit witli ret'tn'onci.- to the Uniteil Suites, ■' tlif < lovrriununl intondoil to impose duties on ii ^reat iiifuiy iU'ticlfs imported FiMin til. 'It,' wliicli had liueii left on the free Hit sinee IS"") in the vuin hope of indiicinn" our iu'l^'hliors to renew the Reci[»rocity Treaty. This intention is seen in the faet that the averii<;e diitv on Ameriean ■'•oods undrr chis tariff was -5 iier cent. Tile theory ol' tlic lialance of trade was employed to justify, on economic ifrcunds, tht! National Policy. Sii- Leonard 'I'illey seemed over to have present with him as one of his Hnaneial ma.xims tin- idea tliat an adverse halance of trade .>h luM he overcome. llr sei-nicd to hfliev(; that a favorahle halance of trade wa- the md of all tariU' leL^'islation. In his I'.udnet Sprecii in IcS7D, \\r stated his eonviction ■ that the lar^e lialaiiee of trade against ns ever since <-'onfr'di,>ration was one of the main causes of our ditliculties," In INN."), in iiiakinn" a comparison lietween the excess of im])orts o\er exports durine' tlie period, 1^74-7'.', a> contrasted with the exce>s in the ])eriod 1S7!)-<'S-}', he pointed out that during;- the foi'mer period tlie excess had heen SlO-'i, 11 1,070.00, while durine-tht! latter jieriorj it had heen only 8>i2,0;)0.o(i.S.()0 ; he then said " as to the halance of trade I ^ive the figures to show that the N.l'. IkhI the practical effect of kee|)iiii;' tin; difference hetween the imports ami exports in a much more favorafile condition than than it wouM otherwise have heen.' '^ It is evident from this that he thought that one main advantage of the National Policy was that it tt nded to liriiie' about a favorahle halance of trade.- Tho i/eneral etl'ect of tlie amemlments which were made in ISSO-^ was to incicase the duty : for example, on eigiit aiticles, including demijohns, artificial feathers, hilliard tahles, organs, pianos, slates, trunks and watches, there is an avei'- age increase of .");• pijr cent. In the case ef pianos and organs a !■") percent. <"' ''ul- orini on, he considered as an oliservance of the letter hut a violation of the spirit. The other noteworthy instance^ of' an increase is in the case of Coal. Coal, both bituminous and anthracite, which IkuI been taxed .")() cents per ton under the .\r! of 1.S7II, now had the duty increased to (iO cents per ton. riiis tax illustrate^ well the ))eculiar contlicts and complicating tendencies of local interests under a pn^tective system, as> well as the lai'ge amount of super- vision which is iiecessarw The exniaiiation given in the House with reference 1. Sfi' l'iiiil(,'ft .■>!" '■(.■li. 2. In the notf in tli<' I til \\| h all ail Ci.1 til eel \\| v; Ci discussion of the rnvhinri' ;ipi)lv the themy in actual |ii\uti>,'e in Canaiia, a. in Viut,, Cap apiieniii'v nil " Prntection n /•"n-t Free Trade," there will Vie fiumd a short if Pi-aiii' Theur' iri' esiH'cially witii reference tn the I'esult of the attcMUpt to 4. Budget .Speecii for 1880. 25 ted Stfitcs, 's imported till li()j)e ol' tion is. seen was 25 ])er I cc()ii() Ills per li'ucies siipor- ft' re 11 CO a .-liort t''lll|it to to this tax was " that the increase of 10 cents per ton on cool, as compared with the .50 cents at wliii'li it liad stood liefore, was imposed with the idcn tliat this woulil carry Nova Scotia coal as far west as Hamilloii : at .)() cents prr ton it hai-v cent., checked winceys pay a compound duty. Some eighteen articles charu'ealile with an ad valorem d.iity are' inchidetl in tlie chanL;'es maiie. 'i'he duty varies from 5 per cent, in the case of ]iaints, to .'{O per cent, in the cas^ of cartridges. 'I'he averai:;o tul idlorcni duty charged upon these eiL^hteon articles is 21.!)4 per cent. The ilutial)le rate (ai spirits and stroui; waters varies IVom ■-^I.:)2j '■^ to Sl.DO^ per -al Ion. Sugars lietweeti \o. !» ami No. 14- \).SJ' are chart;'ed Ic. and 3.3 per cent. : lielow No. 'J D.S. le. and 30 per cent.'' in liS!S2 the (Opposition attacked the duties on coal and hreailst nils, eiideaxor- iiiLf, without success, to have them repealed. The amount of duty ohtaiued from this source durinej the [)recedinif year was ;:?l,100,OUU.OO. An Act ' in amend- ment to prior cust(aus acts was also jiassed in this year. \]y the Act of the previous year the period duriuL;- which steel rails, tish plates, etc., could be imported free of duty had heeii extended; liy this Act the period was still further extenile |i<'r Cfiit. as fdriiu'rly. 10. Thf rate now standing at 81. HU ami 20 pci' ctiit. 11. ;)ii {wv cent, sulistitiiti'd (or !."> jut cent. 12. FiMin lMi7-71 thi sr had been on the frre list. 2(i of iiTie of tliosc articles, the i)r('C'e(k'iit, of imposinif a 'lnty on cans containin^r free fish, is folhjwed, for lierc tlierc is a (hity of 2.") per cent, on batjs containing" ireo salt. The specilic rates on fruit are increascMl. It was ari,aieil at the time tliat the ihictnatiiii,' value (if tliese articles rendered the specific ihity preferaltle. It nia3' he adniitt.'d that from the standpoint nf the custmris oHicer tlie specific duty was prcl'eialilf. in tliat it facilitated his wni'k : liowever, the very fact that these ai'ticlt's were suliject to sudden tlnctuatii)ns in valiir rciideriMl it all the more prolialilf that tlic sjiceilic duty would entail an inei|uital'le ))ressure U]ion the impoi'ti'i'. In the tree list soini' twenty-two clianL;es ai'c made 'Plir main tendency manifested is towards rendering' free, articles which are of use in (connection with mining' |)roee.sses, i .(j . iiuicksilver and chlorides. Avery important addition to the fi'ee list is the ileiii which inclmles coH'ee and tea. In the case of cotre(i, however, the statute only pi-ovides for the free adniission of ijrecn cotlee. On tea — hiack', u'reen and .lai)an — tlie duties were ivmitted. Tlius the custom of the latei' ]»i'iiod of the I'l {)er cent, tarill' was icLiain I'ollowcd. The retaliatory duty on teas imported from the I'liited States was still ii'tained. The yeai- ISN.") saw still further clian^cs in the Taritf. The Customs Acts were anu'ndeil a.nd consolidated.^ and the duties wiiv latei- on still further amended.- Although the National Policy had as one of the most important of its com]ioneiit elements the pi'otective feature, yet the revenue element was of much im])ortance. Of course the Tarill" was not canieil to the io<^ical e.Ktent demanded hy e ti'eme ])rotection, had it lieen so, it would have been destruc- tive of revenue. The endeavor to pi'otect Canadian industi'v liad lieen made in a somewhat liurrird and unsystematic way : and this accounts foi' the fact tluit altliouuh a sui'plns of S4,4()0,0iHi liud hcen counted on, the total surplus really an>()unted to S(),(i2r),()00.00. Thus, from the revenue standpoint, the Tariff had been even too successful. The fact that the estimates provided, in the first place, foi- so Jar^e a surplus as S4',00O,0()0.()() was evidence of unskilful linancine-; for close tinaneiiiL;- or even tinaneiny involving' a small deficit is lietter foi' the country tlian a svsteni whicli takes out of the pockets of tlie citizens a sum larLi,ely in excess of what is really neechul.-^ The fact tliat the real sur|»ln;-j exceeded tlu' esti- mated surplus l>y about 32,000,000.00 slujws. in still stronejei' lie-]it, the crude financial leoislation of the time. Tlu' (Jovei-nment was now confronteil witli the question what should be done witli the surplus ; unless thi'y desired to connnit theni.selves to the Prussian " war-cliest " policy, the only meaiLs availai)le was to remit taxation. Accordini^ly taxation was remitted to the extent of Sl.l2r),000. In the amendments that were made it cannot l)e said that any well-defined principle is appait^it. There is manifest a very slii,dit tendency to increa.se the nundier of siieeifically dutiable ai'ticles. Playing" cards which had In'cn taxed oO per cent, were now taxed Oc. [ler pack. In acids tliere is a slight increase of duty. A de.sire is evident to build up, in tlie country, the manufacture of i-ailway cars, bun-eies, wae-e-ons, etc., for the duty on railway cars is now fixed at 80 per cent., while on buiTi'-ies and wa<:iJons the rate is 8.") tier cent. In the case of manu- facturei] tobacct) and smitf there is a reiluction of ■")(•. per pound, the duty now standiuLC ^it 20c. and 12J, per cent. In the case of lubricatiiiL;; oils the tend- ency to ditlerentiation, whieli is evidenced in the ilevelojanent of taritf leeislation, is manifested. Hitherto all lubricating- oils had been taxed 2.") ]iei' eent. ; now the followini;- division is made : Oil costinjf over 80 cents per gallon 2') per cent.; oil costiiiL;' under 80 cents I lergalloji 7 I -•"> cents. ar o\ 4c eel dil foi bil d.i inl 1" be Wi 1. 4(5 Vict. Cap. 12. •2. 40 Vict. Cap. i;<. ;i 17./. Achuns' Tiililic Debts pp. SO-;-!. 27 tainiiiir tree iiiiiiiii;- i'roQ u time tliat 'eruljlo. ft ecitie duty that these I the iiioi'e U|M)ii the tt'iiih'iicy ctii)?i with liditidii to of coffee, •tiee. On i^Ustoill of etaliiitory oins Acts II further )')i'tant of lit was of ■al extent • Icstruc- iiade in a fact that his I'cally arifi' )ui(l I'st phice, •in^-; foi- > country ar^ely in th<' esti- lu' crude with the I commit e was to .125,000. [-defined ease the 'd 80 per jf duty, ay cars, iv cent., manu- re duty le tend- islation, (low tlio 'Ut. ; oil i In tlie (hitiahle list a iiumlicr of chanties arr inadc : iiiiiiiefii t)f these are cil '•(donuu. tiud upon these there is an avera^je duty of -llAi^ per rent. On three items there is aspecitic iluty iiiiposeil viz : .lellies and jams .')c., vaseline 4c., and steel 8.') per ton. As far as the itcnis added to the dutial>h' Hst aiv con- eortied there is shown a slii;-ht tendency to fa\-oi- the |)rinciple of ml r,ihirf,,i duties. Tlie ai-ticles added illasti'?ite the tendency still fiirfiier to se;u'(;li out foi'uis of taxable commodity, 'i'he duty on a;j;'i'ieultiiral implements uhieh iiad hithi-rto stood at 2.") {)er rent, was now increased to 'A') percent. The rates of duties on minerals and their manufacture- weic also incre.ised : fnr examph', on iron pumps the duties are lixi'l at :!.') per cent., on tiles and rasp> at .").') per rent. This e\-idences the increased interest taken in the iron iidustry. It had heen pro\i ta.\- al)le with a duty of S.5 pel- ton' in the free li>t tlhie are snni.' 2') addition.-, ; the.se include iron, and coi)per wire, aiiil lieams. On the whole it may li;' s.iid that the Actof this ye-ir had Imt little elfei't on the Tariri. There are .Muuesli^hl reductions, as for instance, in the tax on manu- factured tohacco and snutl which stands at 2()c. and 12^ per cent., as contested with 2.")C. ami I2.\ per cent., which was the former dn'y. lint such slight deci'eases are more !lian counter-halanceil ii\- incirasi's on otlK^r lines of y-oods. .V slis^dit tendency to favor (td ralorem tlutie.s is manifesteil ; but additions are als(j made to the list ofi^oods paying;' speciti'- duties, as well a- to those iiayim;' com- pound duties. In an earlier part of this essay the intention wa- stated of makini;' acompari- .son between the resjiective rates of duty under the " rieveiiue Tarill', ' and under the " National Policy."' For this purpose the total amount (jf duty -specilii-, compound and ad '■n/orrui — durino- the " Ileveiiue Tarill"' pei'iod as well as the total amount of iluty duriiiL;' the lirst five vears of the " Xational Policy" has been col- lated from the statistical pa[)ers.- Then the total amount of L;oods entered for home consumption, less the amount of free goods has been taken, and the per- centae-e of iluty calculated thereon with the following;- restdts : lli:\ EXiE T.Miiif Phiiiod. Durinrj 1874 the rate of duty on all dutiable goods was on tin. " ' 1S75 " ' " " 1877 " " " 1878 An average rate during this period of 187!)— 188.S. Dai'ing l87n the rate of dutv on all dutiable goods was on tin " ' 1880 " "^ '■ ' •' 1881 " " " 1882 " " I88;i An averaiie rate durinu' this period of Per a\era''e Per average cent. 19.:^2. 1 !•..');!. 21.:!(). 20.03. 21.(10. 2u.4.")G. cent. ■I'AM. 20.11. 24..-) 1. 20.40. 25.:iii. 2.). 148. 1. I'nder thf Act of 1871* it had been taxed at 10 |)er cent, « stl un,i;ly ■ duties, are ■ jirot I'ctivi; • awl v\\ aid rill n mdili- icirs : here , to 111 ' used V 111' calli'd ■iillon. 20 a (I'lffcirnfiatid duty.' The avei'ai,'e rate on dutiahle aiticles cliari^ealile with an ail I'ldnrna rate under thi.s A'^tis •I'i.S per cent. On tlio wliolo ii per LTailoii, on lu'andy S2.00 per oallon. In the matter, (d' the spirit duties, there is slmun variaMe legis- lation, in l.s,S2 a conipoiuid duty had Keen imposed,' here we lind the speeitic duty ai^ain taken intofa\i>r. ( )n toliacco and siiutf tliere is an increase ot 10 cents )ier ))ound. The duties on lish are for the most part speeitic; except in the case of tish oils and fish preserved in oils wdiere the ml culoirni d.uty averaifes Lio )ier cent. In ISStj the control of the Tarilf was under the hands of the new Kinanci,' Minister, Hon, Mr, MeLellan. The Act ' of this year provides for ftnther anieiiil- ments of tile alroaiiy much amended Ciisti mis Act. Some ()'■) changes are made in Schedule A: tojudne hy ]ii'o]tortions specific duties were sunn what favored in this year for, in fourteen iiistanci's, specific duties are sulistituted for the duties hitherto in force. Seven articles ai'c taxed with a compound duty. The aNeraLje pressure of customs duties is somewhat hin'her than formerly ; as eom])ari'd with the rates of the [irevious year the averane duties stand 27, .")2 percent and 2(J.ll per cent, respeetivtdy. In i,'enert\l the sjiirit duties are unchanged ; in the ca.se of colo,une, however, the ml '•(dorem duty is increased hy 10 per cmt. The highest (kI i-dldmii duty imposed is in tlie ca^-e of colors which are ta.xcd -'lo per cent. The couise of action pui'sued with reference to two classes of articles is worthy of note ; these ai'ticles are iron and sunar. In this year, as in the years that precede, there is evident a n'l'iiwini;' sense of the imjiortaiice of the iron industry, and consi'i|Ui'ntly attempts wire madi' from time to time to mani|)ulati' the pro- tective duties in such a way as to lu'iietit the iron industrj'. Jn the cast' of inii nut>. holts, washers and ri\ets, the ])riit('ctive duty is increased and made com- pound.' in the case of liarhed wire there is a change from <(il '■(d-irrm to speeitic, the dtity also heini;' increased. The rate on carriage hardware is iticna-^ed liv •" per cent. ; on scythes thert; is also an increase in the specific duties. In addition to this a lioiius of ."^l,.')!) per toji on ])iL;- iron is provided for,' In 1SS+ a new method of arrangements had heen introduced in the su^ar schedule, whrriliv a 21 per "cnt. advantage had liedi L;'i\en to the direct importfr, .\o\v a chanL;'<' is made with the further intention of di'Xrlojiini;' the retiniiiL;' industry. It was jirovidi'd that sun'ar inider Nn. 14 Diitcl: Standai-d, wlim inteiidi'd \'n- ri'liiiiiii; |iurpiise^, should lie taxed at I cmt. Insu^'.irs not inteiidi'd for reliiiiiiL;- tlcre are some changes ci/. su„af under No. 14 D.S., not foi relininl,^ is taXi'd at I cent ami 'Ul per cent, --this i> an increase of | ol' a cent |>i'r pound: sii'^ars aliovi' No, 14 1),S. are taxed \ a Cent and W ])er cent, ( )n these two elas-es thi'ie is thus, over all, an increasr of \ of a cent per pound. Schedule ('. of the .\ct of hsTi' had prosided for the U'^-r eiitrv into ( 'an.ula from Newtoutidland of tish, tish oils and ti--h jn-oducts. This pri\ ile^e had 1 een abrogated hy the .Vet of IN.s."), which contained a pi'o\ ision with reference' to the duties on tish, tish oils and fisli products. The Act of this year also contains a 1. The linty \ ;irit's froiii r> to !l cents piT .■;i|uurf fn^it uccordint? t^' thi' imiiiluT of s(|u;iiv fi et in tiif HJlft't. '1. This is iin iiicrt-a.'^i' nf (iO ccnt-i yn- |i(niiiil as cciiitrasteii with tin- rate of IsSl. :\. •'*l.'.Mi anil 2(1 per cent. \. -4',) Vi.', ( 'ap. \\'. T>. Before tliis it liail been 30 per cent, 'c' c'l/nron. (i, 4'.) Vic. Ca|i, 38. .so pi'ovision with rt'ffrciice to this. In tlif niiitttn" |)(!i' cent. It is, howcNcr, jii'ividcd, in tlic thin! section of th(! Act, tliiit tlic tish ami tish ])ro(hicts liotii of NcwrounillfUid aiul the I'nitcd Stiitfs uiny hf impoitcil into Ciinuda on reciprocal terms. In the export duties nn increase of .')() cents per curd nw shingle liohs and ^*1 per t]i(;\isaiid on pine li is made. Provision is also nifidf for Inrtlu'r incroast', sncii inci'eiise lieniL( l>roiiL;ht into existe-nce on the d iscreti'in ol the ( lovernor-in- t,"ouncil. This discretionarv |M)\ver is uranteil in section :^»l'.) of the Taiill' wiiieh r(.'Mds, witli r(d't.'rcnc(! to export duties " provided that the jiowcrs vesteil in the ( lo\i'rnor-in-( 'onncil hy si'ction !>7 of this Act sliali extend and apply in all re- spects to the aljove nami'd articles, ami that the ( iovcrnor may increase the export dutirs on |»in(,' lo;,'s to s:> per .M." I'lver since confederation there had heen eontained in tlu' ditleront Ini'itis a schedule of prohiliited ifoods ; the imjiortatioii of such ujoods ontailinn' u])o!> the importer, hy way of jtenalty, a heavy tin 1 liese gooils comprise III general terms, liooks, documents, etc,, of a treasonahle, seditious or immoral nature ; and countei'feit coin.' Somewhat of a ileparture in jiolicy is now made, in that oleo- mai'Liarine is iiieluiied in the list ot prohiliited eoods.iiy this means more proteo tion was extended to the Imtter manufacturers. The protective nature thus heeonies more noticealiK' in Schedule C. ; hitherto this teatuie had Keen ahsent in this vehedule. The years ! ,SS7-S were characterized hy an insistence U])oii one featuit; of the National Policy, to which, for some time, tiieie hail n<)\ heen much attention pai(i. It will he rememhere(l that the increased ability to oVitain reeiproeal trade with the I'liiteil States was one of the ad\antaL;'es which, it was assumed, would lie conse<|uent upon tlie aut now more attention was paid to the suhject and reci|iidcity had a momentary popularity. The Turitl" Amendment Act,- of KSST, made some very imiiortant chauL^es. ' The i;eneral eli'ect of the chane'es made was in the direction of increasiniij the rate of duties. 'I'here is not manifested any marked preference for any one class of duties. The increasiMl pressure of customs duties may he seen from the fact that the avt'raye rati' duriii;^' this year, was :!() [ler cent, as contrasted with 27. '')2 per cent, the precedinj,' year. In the somewhat complex arran'.^ement of speciiic, c*/ '•nlnrciit and compound duties on hujf^ies and wagons, there is a conscientious eiideavoi- to reach the vari- ous forms of taxahle enmmodity.' P>ut the specific tax heiiiLj ini])iised on the lowest priced waeoiis and hiiifi^ies ensured that while, from the standpoint of the tax i,'atlierer, there was a moderate advantaj^e, from the standpoint of the con- sumer there was a pronounced disailvant'ii;'e. On some items oi" cotton, namely, jeans, coiitilles, printed and dyed cottons, there is a general increase of 5 per \ ail ml 1. Since ilieii " re] irint.s if (Canadian copyright works, anil reprints of Britisii copyright works wliicli liave b en alwo copyrighteii in Canada ' have Ween added. 2. 50-1 Vic. Cap. 39. 3. From this year onwards the jierusal of the Budget Speech is more advantageous to the student than hittierto. Tliere is sonirwlial more of deKnite iilan evident. 4The following is the arrangement : On tho.-e under *50.00 a speoitic duty of JglOOO. On those between .•?u0.00 and SIOO.OO, $15.00 and 20 per cent. On tliose costing .^siOO.CO and over, 35 per cent. :!l there is a ^fctioii of III' I'll! ted Its UIllI 81 iiieiease, ^'crnoi-in- iir wliich 'il ill the ill all re- he export t'li'ifis a 'ipMii the I <4eiieial lire ; and hat oleo- e [Motec- :ure thus II alisent eatiiie of attention eal trade 'd, wmild 11 made, te much fity had line \ci'y ii'eetion id'erciK'e may he cent, as iijinund le vari- iin the of the le con- laiiiely, ') per kn which Htudent I cent. On cii^'ars and ciijarettes the coiiipoiuid rate is incrt-aseil, a rate of S2.()() and 2.") i)er eeiit. heiiiL;- suli->titute'l for the former rate of SI. 20 and 2') per cent. The protective teatures of these amendments all'ect the f.iniiiiii;- chis^es al.so. Tliis may be .seen in the foih)\vini,' chaiiL;es: on potatoes the former rate of Id cents per luisliel i>. rephiced liy a new rate of 1.5 cents; tomatoes are taxed at .'}() cents and 1" percent, in place of the old rate of 10 per cent.; on \ ei,'etables, in t^feneral, tiiere is an increase of .S per cent. The eiianues with referi'iiee to the imn imhistr}- are the iuo>t iiuport;iiit. In makin'4 these clianges Sir ( 'liarles Tiijpp.'r proceeded i>u the piiniiple that the I'uties were to lie projioitioiied to tile ivmouiit of lalictr expended on the industrv. The duties Were lia.M'd on the .Viiiericaii duties on iron and steel, the proportion lieiiiLf two-tliirds to one. ■ Koi' ;i hain' lime the free list had Ihmmi utilix((d to enhance the growth of the ('anmlian iron industry ; duties of varyiiii;' magnitude had liei'ii imposed on various forms of iron ; hut the question of' protection was suhordinateil to tlie (juestion of revenue. It was in this year that the(ioveni- nient saw tit to (h.-vote more .systematic attention to the (Uixehipmeiit of tli" iron industry. If protection is heiieticial, and if it should be extended to industries, then it lon'ically i■ollow-^ that it should be extended to the iiiiportaiii industry of iron. In En^'Iand during' the earlier period of the de\-elopiiient of the iron imhis- try a protective imlicy prevailed ; it may safely be conceded that this policy luid much to do with tile (levelepmeiit of tlie lMiL,dish iron industry; it wouhl. how- ever, be unsafe to suppose that to tins phase of policy alone, is tracealile the dilli'reiitial a\i. 2;i-24. tSijf Toronto Lauhr for March 30tli, lsi!8, IThis Jiad Ix'i'n [iroposed in 1807, but had not been enactod. Hee Toronto Liadcr for March .'iOth 1868. ii.See Mn,utar. rollcil iir liniiiiiiiTrd 17l " Uiiilp.ii.lnuU 15' " fish pliitew 17'. I'.iind 1(11(1 hoop V2\ " lri>ii .'iml stci'l wirn l."> '" St'.V.'M, ft,- ( la^i pipi'H, etc fur wliffls and iislis liiiUcil lh;iiii-<, cliarinclH, t'tc Iron liiidt'crt and structural iron work Irni and .--tiel I'lixinRM Locomot 1 \ es l)raun hnilcr tiibinjf SUatc'S 'I'inni'd and cnauii'llcd ware HiiildiTs' lianlwari' r.iills, rivets, etc lliirsisliiics and liorHHshoi' nails. Iron wire nail- Scales, lialaiices, etc 15 25 •JO 115 10 •.M\ •-'5 :to ;{o :fO HO I'vate of 1HM7, ?! 1 per tnii. .•^ !l .•SlH .■? (1 ijilli !?i;< '«'5 per cent, per ton. sWi per ton Imt not less liian !)0 per cent. .si'.' •• 'X, " .Sill •■ X> " .'ic. per III. and 10 per cent. 1 Ic. per It), but not less than 35 ] I'.c " 35 H(» per cent ; if over 1! tons specitic iluty of .■:<2,000. 1.") Jjer lent. i-'Oc. per pair and 30 per cent. 30 |>er cent. 35 l.U'. per 111 and 30 per cent lAc. peril), liut not less tlian 3.") per cent. l/,c. •• 35 35 pir cent. I percent, shall i)ay Nails and spiUes (cut) he. per 11). and 10 per cent. le. per 11). ami 2.") per ci'ut " ipresiii'dl ^'c. " " I'.c. iier lb. l)\it nut less than 35 ptT cent. .\dzes. haiuniev^, etc 30 i)er cent | 35 per cent, Shovels and spades '30 " 35 " Wlifii tlir ii'Dii i;itt!s of lS7n 1111(1 iNST iiiv coinjiarcil il is xcn at (Hicc tliat tip' TariH" ot ^S7'.> wa.s (.■.sci't'iliiiL'-ly .simple in form. In INN? lioweviT, the con- ditions ai'o t'haiiui'd : but few nd ralorrni (Intie.-i appear, theii' place lioin;^- taken 1)\' specitic or ctimpouml dnties. Some of tlie s|)eeitic ilutics are simple, others are i/iore complex aipl partake of what mit,dit he ealieil a '//'('.sw' tiil rdlunnn nature.* rnder the Taritl' Act of LS?'' the general I'ate on iron an(l steel manu- facture- N. ( ). P. had heen the same as the ijeneral tarilV rate, naiiiely, 20 ])er cent.; Imt in the Act of 1.SS7 the L;'eiieral rate on iron and stet.'l m;inulactiii-es N. O. P. is oO per cent, hurini;' the [)eriod, I.S7'.'- per cent. Jji order to compari' with rliis the opeiation of the 'ron dnties of I.SN7, the average prcssun; dnrinn' ISSS-!).') may he taken. In liS,s7 the aver.i^e rate of charge had heen 22.1") per cent.; in ISSN it at oiiee rose to ."SO. 0(3 l)or Cent. ; from then to iMIo it Ihictnated somt^what, hut the iioi'mal rati,' through- out this period was 2S.,s,S percent. The avora<;v rate of IS87 is thus at least ."S per edit, higher than the average rate of lM7.'."f' The year LSSS is, in many w;iys, tlie complement of 1.SS7. In this session the chief Tarilf (juestio?)s di.scu.ssed centred around recijtrocity and the export duties.t */;. fi. s\ich a duty as " l.\ cents per pound, but not less than 35 per cent." tin the calculation of the averapre duties, the percentatfe of duty on the dutiable goods has been calcu- lated. For dutiabks g(.ods and amounts of duty paid see the trade and navigation tables for the years in (inection. *51 Vict. Cap. 15. ail MO per cent. I. nil H5 per cent. I'liM .-^liall jiay I, cut. It an .'),") percent. ;i6 m 'S'l per cent. (illC<' tliat th(- con- Hi;' taken othc'i's ll"t'<'lU <-'! iiiiinu- pi'i' cent.; O. P. is :i() steel wn.s readied, tlie 'I'on I.S.S7 the to ;'.().()(! tlir(iui;li- t least « ( IS session le export been ealcu- le years in x\ Kinni the lieniniiiiii; of the ( 'aimiliiiii TmiHH the only cnnniioility upi'ii which nn export diity had liccii imposed uiis tiinlier, in its roiiLjIier l"ol•lll^. There \va>. a pnpuhir (ipiiiioM that it would lie to the adviiiitiii;e o|'( "aiiada to have the niiuiu- t'aetiire of this tinilier, into the fine)' ifraih^s, carried oti in ( 'anada I'ather than in another country. The I'oreiLfii purcha.ser hail lieon in thi? haliit o| nianuiaetuiini; this tinilier, into till' tiller Lfrailcs. ill his own country; it wu^ Niipposcd that tin- iiiijiosition ot' tlii'x' (hities would coiupcl liini to carry on the iiianut'aci uic in ( 'an- ada. These duties had Hot the anticipated etlect. The uiiioinit ot duty |)rodiici'd was not li'reat, and tin- tax liad had a prejudi(;ial rtl'cct u|ion the Canadian tiiidier trade. .\ feilin'^f in I'avor of the alpoliiion of tlpM- duti<> liad eoiiiiiii'iieed toinani- fest itself; and thus a resolution was jiassi'd in eoiiiniittee ,yi\ iiii; thr (Juvernor- ( Jrneral-in-Couneil power to nduee the duties "entirely or in part, .\ltlioii-h powi-r was t^iNcii to reduce these dmies, yet the ( lovernor-( Jeneial-in-( 'oiin- ciP made u.se of the powei' conferred in terms of a prior statu te-|* to increase the duty on pine loj^s to ,'*.'l per thousand. Siieh contradictory policy ajipears, on tin' face of it, somewhat strani,^'. Ihit it is piohali'e that it wa- intendeil, liy this action, to lirin^' jiressure to hear upon the I'nited .*>tates (ioveriuiient, ami so to ensure a mote faxorahle lie;uiii<^f of the statutory jiroposals with relVrenee to reei- ]iroeity eontaiiied in the .\ct of this vear.| 'i'lie jiro\ isioii, with refeicnce to n-ci- nroeitv, is. in the main, the same as that contained in the Act of LSTK ; there are, 1 */ ' however, some minor ditlei-eiices. The .\et of IS"'.' ineliidtid tiee-^, coal, coke, sliruhs and wheat; these are not contained in the statutory "Her of this year. But the otl'er of this year coiitain.s several item-^ which are not included in the earlier Act, vi/... wood pulp, .>tone or marlile in the roui;li, tisli oil and tish pro- duets. Tiie most sijfiiiticant change in the statutory oiler i> in the omi->sion of wheat, Xo chan'^'e of importance was made in I S.sH. i)iirin^ the se-~sioii vaiiou-> ((uestions with reference to the poi-k duties came up. The lessiiiinn' of the duties on mess polk was asked for;!;jhut as the tarilt'had heeii amended >o n,>cently the Ciovernnieiit di per ceni. uas impn-eil ni\ linth iiie->>;•''"'"■' i"'<>'<'f'ti<>M ; Imt it is not to he iinajjfiiii'd that tiic priii- ciplf of piotcdioii is (i('|),utr(l Irom, for, in soiiio casus, tliu duties arc aitttiiilly raised : y<'t the tendencies of the tinii', the attcrnj)ts to conihine tho niaxiniuni of protection witii the niininiinii of pressin'e, thr choice of forms of ilnly wliose pies- Huro is supposed to lie uioif i't|uit al Je, the siniplilieat ii >n in point of eiunuciation — arr all indieali\i' of .1 hri^'innini,' of reform. Then, in .idditioii, there is a more d»'ti lite |)lan apparent. <)\\inL;' t'» tlie undue application of ihc pi'oti'ctive pi'inci|ilc in the earliei- years, tlie National Policy disipiieted the linanciers hy the presence nf ii'ouhlesouie suiplu>i's. In process of time tlie appli- cation proceeded on a more definite plan . and tliis is most markedly shown in the pii'sent period.' Mithei'to also, in the confcrrinif of protection, it was, in the main the producer who had I.een considered; there is now a tendency to pay more attention to the consumer. It nd'j;ht he acnued tliat the rednctinns in tnxation wlueh book plan' in earlier yeai'swereindical i\ cot the lieyiiuiin'^s of a |)erioil of Tarill' ilefurm -as fcr exam pie the reunssion of the te;i duty, or till' phu'inn' of aid-hi'aciti' coal on the free list These reuussions, however, Wire spasmodic and did nut proceed from a well dedned ])lan of chanLje. I'.ei,dnnint( with the yi'ar IM'O, there appears a mon; udeipiate' apperception of the fact that the tendency shoidd Ik; towards the mini- iiuzini;' of duties. Although there exists, on the part of tlie Finance Department, tliis tendency towards .•>y>heniati/atio?i and ',qadual reductiiai of tlie Taritf Duties, it must he conce-iled that the' reconciliation I'f the conllictiie^f claims of ilith'rinijj inthistrial interests, has soniewhar retarded the currying iutu action of the jilans of 'I'ai'iff Reform formulated. The year IMIO may he taken aN the liet^iuuin:^' of tlie period of Tariff Reform. The Act of this year- pio\id\^i| toi- aiueieinient in tl e Taiilf. It is not only in the Act itselt' 1 ut also in the statena'nts of the Finance Minister tliat we have to look fiT ili; ]iur|..»e t',;it iie"ua'el the eluue^es. -^ In introdncinLj the ehan^es h.' tool-; ui.'e,,si'>ii t, . .ie;iiii' Llie reasons that liad caused the introduction of till' .\ ..eud-n ■n' .\"r. !!• said tint, the purposes of till' anicnihueut were : 1, l^xplanatory — tliere lia I Icen (M'ifa>i n in llie headini,;s. 2. To reduce in some i:i-tauce- existing d ities. whicli clianged conditions ha\ e I'eiideifd higher than tley sjioidd lie. or dntir's upon articles winch failin<^ to li( nianufacturefl in this c lUiil v dmuld lieu- a Revenue Tariff and a Revenue TarilVouly. ;{. To put on t In free list articles which either servo as raw materials for manufacture-, or m idcli would I'V their admission help to develop tho lesuuices of the country. 4. To readjust certain duties. 1 . In till' iici.'(ini|)!i-'i..iii'ii'. .if tlit'.se changes much u.se is iniulc nf llic hri- Ii In the list of dnliahle .,'0.. Is thero an! "lonie '2i7 (iliannes. In Scheihile A the avera'/H "*/ rnlnrim duty on I Ht arti('l(!s is 2'). I '2 jicr cent.: on some of these articles the duty is componnd. There are ti'» articles on wliich there is eithitr u specilic duty alone or a compound diitv ( "hanycs are also made in the free list, The export duties on iijn,. i;,i|^ .,,,",1 sj)r)ice loe;s and sliini,dt! aiul stave liolts were removed i)v oriler in ( 'o mcil -this cliani^e is a fnrther e\idence of the systematiziiii;' tendencies of the period . these duties had Jiot etl'ected the einl for which they mid I.een enacted. -f- In virtue of the power to confer ilraw l>ael\s, a drawhack of !»() percent is alloweil on imporleil Indian eorn [ Spirituous Ij.piors are cliar^e(| ou the aver- age SI pel' -iiillon ; on six kimU of li(piors iheie is in aihlition an avera-v of :H) |ier cent, ml rnlorcfU. The chief li(piors ehar;;ed with a compound diityTire those which are partly alcoholic in their natuie, would ^^ive a duly of attout '\i).'t'A pel cent, while on rasps it would he almut ."l.lli pi'r cent. ( ),, slu'.vels and spades the specilii- duties remain iiiicliiu-ed, uhile the er vvwt. iiicn.'as' on Idiilders* and harness- maker's h!i,rdwaie. In these dauiffes there is on the whole, a tendencv to iirefer (III riilnri'iii to specilic iluties. In the year ISOI some imiwu'tant chan-^es^^ took placi' in the Tarill, chiefly with reference to sni;ars, spirits and tohacco. It has heeii se(!n, in the act.s of pre- vioiLs years, that protective measures hud heeii plentifully iippjie,| to the sier.ir industi-y. Tt had l»e 'Ji attempted in increase the direct import trade, and hiter on th" sui^ar reliiier ha'' I'eeii ;;iv(,'n an aeai of the duties on raw su^ar, there is also a lessening- of (ii,, ,•..,(,. s on the refined sULj;ar. Su-ars aliovc 14 D.S. and all lehne,! ,hu-,iis are ta.ved .S-jQe. per pound ;*i on molasses the duty was lixed at \\ cents per ;.;allon. The Act passed*'^ later on •l.'ith Octolii.T, l.SilO. tKroiu th.' stin.l|.)int i.l n'vciiu.- tht.y ii v.i l)p.«n -.f littlo \ .ilu.v |),iiinK ISilS',):! thr iivfra^e vparlv . r.'veniic from thi.s source wa8 only S20,s;W.OO. riW- TaM ■ f. iti appendix. >ti.iKe>eany ;•■ Kilti dried, and grounil into meal for human food. ' i;!54-.'"pr) Vict., Cap. H. !;ri(ic Table III. in aiipendi.x. •Under the Act of 188tJ tliet^e hud been charged .ic. and 30 per cent. **54-5 Vict., Ca).. 31. :;g in tlie siissioii, |inivi(lini,' for the |i(iyinent Mf a Itfxmty (;t'8l \»'V liimdred weit^ht on licf't-roiit sujfar " prniluccd in Caniuiii wholly from lict'ts proiluciMl tluu'cin " is to l)u taken as u conipleniontiiiy piU't of the Tai ill' legislation of tho yonr ; it serves to attract Jittciition to the fact that the protcctix !■ phase was hy no means lost si^ht of amid tlie vai ions aineiulments. As a conse(|iienee of the remission of ori tolmcco au'' spirits. X'iewed fi'om tlie standpoint of expedieiicv, and leaving out of consideration all (piestions of ethics, such ta.\es are excellent liecause the (iov- erniiient is sure of a t'airly steady revenui^ from thtnn. < )n malt the duty was placed at 2 cents perpountl', oi' almut •"> (-ents per ifallon on lieer ; Uoiw this source there was expected a revenue of i?.jO(),Oi)0 ; an excise duty of :::() cents per •/allon was imposed ,)ii distilled spiiit>- this wa>expectiMl to increase tlie rexcnue by ahout S(jii(),(l()() : on M^liucco an iiicreasi; in duty of (i cents per pound was expected to ;4'ive an iner.'ase in revenue of almiit S4()() OOO. 'fhus tlie total increa>e in ie\(;nue expe-teM,o()(),()()0 leavine" a net reduction in customs rat»^s of .*?2.0()(),()()0. Tlie axera^e speeitic duty on spirituous liijuors now stood at S~.12J, per i^'allon — an increase of 12.', cMits par i^allon. It will li',' seen that these increases affected, partly the excise, partly the customs."!* There was no yeneral Tarilf amendment in lN()2. The duties whicli had, since iSSd, lireti imposed on fish and lish pi'oducts im[).)i'ted into Canada from New- foundland were row remitted.' The customs rates were made to press iiKjre heavily on tohacco and iiiolase(! on e^n's was retaliatoiw. The drafters of the MeJvinlev Tarill' had imposed a duty upon eL,fi^s 'J'his was met, on the jiart of the (.'anadian Goveiiiment, ly the impositi of a. tax of ') ci'iits per do/en on egos : this would, on the ave|■a^•e amount to •'' per cent. t )n toliaccos the chief chaniics were as follows: SJ Ml ei| in UTl thi nil atl I I th itat.' of 18112. Kate I. f IXitl. ( 'ill tdharco I "iri cents and 1.5 piT cent . .1 tO cents anil iL'.l prr cent. Manufactured tobacco and snuff. . . 1 4.") cents aiul !:"> |>er cent 3j cents and 12.^ (ier cent. The two elements present in the pi'ovisions with refei'cnce to the siii^-ar indus- try, are retaliatory duties and paternalistic protection. It is ]iro\ ided that in case a country which expcn-ts .sugar to Canada, discriminates against Canada that the ( lovernor-l leneral-in-( 'outicil may ^usp^Mid the ordinary re filiation s an 1 apply tlie I'ollowing rates on : Sugai' helow 1 4 I >.S. I cent per pound and for e\'ery f This would vary from 2.'» additional degree or fraction thereof '.V.v. per ewt. I per cent, to M.'< '. ]>eree)it. " riiis made the malt anl luer duty in Canad.i 7 cents, a.s c uniiared with 4 cents in Great Hritain, and 3|", cents in the I'uited States, '('lie malt dtity \v:is in IS'.tl .lucicased tn 1.', cents iier pound ; [irior to ISiU it had stood at Ic. per jiound. • In addiiion to these chaicjres a liuty ot o cent-, p t hundred wi'i.^lit \va- imposed on cii;ir,ecu protected : now the foPiu of l)rotection was somewhat changed and degras and oleostearine, wliich are used in the procesB of manufacture, were placed on the free list. Jrod weiifht therein " is ir ; it .serves means lost t' liail to 1)0 vliich plays I' (liiti('> (»ii leaviiiu out S(,' the (Jov- fluty was : i'roni this Cunts j)i'i- hi- rexfiuii' pound was the total total ifiDs.s nis latcs of 1 fit S:i.l2i 'liat th(rse 1 had, since Voin New- ness IIKJlc the niann- 'les Used in tei's of the ■jai't of the 1 on rij-Ms ■ Su'Mr al)ove 14 D.S., , , ( 1 his would varv troni M.ti) per cent. t( I'c. tier pound. - ,_ ,,- ,• * ' ' > 4 /.O.I per cent. :(3nt. N'llt. /U' indus- it in case lliat the pply the fi'oni 2.'i per eoit. Britain, .imi ■i'lr- to l,S!il lit. it chiiiigcil I'ci' list. ., , -.^ . J his would varv tioiii lOc. to 12,,c. per iral- Molasses, 2.'j per cent , ,. •■ ,., - ' ' I Inn, accovdiiii;- to ipiality. 'I'here i< a sun'Ltc^tion of patt'rnalisni in tin,' prohihitory provision with infer- ence to the lower grades of niolasst/;, TIk! ( iDverimii'iit stated its inteiitinii of iiiiposiiiLf a prohil)itoiy duty on molasses which did not show mon' than '20 or •''0 of saccharine material. It was hehl that such inferior grades of molasses were unfit for use. .\ceordiii"l\- the folhjwiii"' .snlidix ision was niaile with reference to the duties. 'Jdie oriL,dnal rate for all molasses had lieeii \\ cents per ij;allon ; under the new arran^^eiiieiit molasses hetween 40 and .'>0 were still taxiMl at the old rate, while, on molasses under 40 , the ('Id rate was still imposed |)lus I cent per ijallon for each de^•ree or fraction of a ileoree less than 40 and hesides this 2!, c(!nts per uallon when not imported diri'ct. In ISHO' in order to extend protection to tin home industry, a duty of 2') per cent, had hcen imposed on all grades of nii:''iii'_; twine. This ta.\ pressed heavily on the farmitiL;' classes and raised much popuhir discontent : accordin^'ly in ISIKS the .\ct was a.'icnded and a reduction made in the late of duty. The tinished article wa.^ iiow taxeil at 12.1 ])er eent., while tlie untinisheil, when imported to lie further manufactured, was taxed at !'• pt.-r cent."'" The only other change made in this \'ear was the extension of the ])eriod during wliieli miniuL' machinerv of a kind not manufactured in Canada eoul imported fiee of duty.; l^rior to the amendment of the Taritl', in 1MI4. an atteiuj)f was made to a.-^certain what ehanees weie desired liy the peo]i|e ; with this I'lid in \ lew, the re|)]esentati\-es of the leading iuilustries throuehmit the country were intersiewed hy tilt.' ('omj)tro!lei's of Customs and Inland l!e\ciiue and ot^ier meiuliers n\' the aws that it must In' higher in its inception than as the years grailually pass, when industries have heconie e^talilished ami when the industiial development of the country grows apace."** The facts of history W(>uld hardly justify the conclusion that, in the earlier days of the National I'olicy, tho>e entrusted with the manage- ment of the Tariff, were well awsire of the limitations ti I • placvil upon a Protect- ive I'olicy or were jjossessed of .systematic views on the process through vvi e-h, as tinu' went on. a Protective Policy should iia-s. The application of protectioti to the various industries hardly pretended to ]u-oceed on any scientific principle ; coii- sitlerations of the present rather than the ultimate gain exen ised most iniliieiice. *.")8 Vict., Cap. 1!0, .Sec. Id, it. in 1.S4. fad \'ict., Cap. 10. Sec, 10, item 184. , My the .Act of 1S!)() (."iH Virt.. (':ip, 'JO, Sfc. 11, itpiii 2!M ) provisinii liail lipcn iiuuIh fur tlip impcirta- tion of t-ucli inacliiiiiTV fi'-'' "f iftity liuriiiH a p'TJeii .f tliiff yf'iU'.'^. 15y tii< .\ct of tlm yar tlii>. tcnn i.s .■vtf'niiiMl until July It'ith, iMir.. >;Sucli a pcriiiatptic ~y-'triii nf invcstJ^,Mtinii, (111 til" fai:'- of it at Ir 1st, woulil .Mirrn ln-ttiT lit^l'il to th'' umi ill vii'w tliaii that adiptt-d at Washiu^jtoa in the hit" Taiill .euisioii. TIuti', when tlie Wil-ou Hill w.i- hciii^; (liafti'd. ivpri'si'iitiUives of tlie various iti(iuly li" elaimed tliat the sy.stem of iiivestijjfation adopted iu Cunaila ^ave more opportunity for the cluiim ot the smaller imiustries bsinx heard. Hon. O. v., l''ost('i. "'IJudKet Speecll. ;;s The ^t.iit,(,MiiL'iit of the Kinunct; Miui>ter illnstniU'.^ his own views of tlio jn'ocess of tJD'ili' cVdlntion, Miiijci' a protective system. It \v;is staleil in the l)Uiltatemi'id. sulislantiates what lias h(«>ii said, in an eailirr part of this e>>ay. namely that duiini;- the earlier period of the enforeement of llu' National Policy the needs (d' the producer were closely looked to, hut that during- this later period luore attention was paid to the consumer. This is shown in the followim;-: ' :,'The prime (dijeet in \Iew h;is heen to cheaiien tin. eost of mamifactui'es in this countiy, to clieajien the cost at which tlie l;-ooi1s issue from tliti factory itself.'' It is eliai'acleristic of t li e earlici ■^ta-^-e- )i'otectioni.st moNcinent tlia,l, most attention is paid to tin; maimi'aclurei', in fact it is of tlie essence of the movement that the eoiisumi'i' should he willinLj to put up with a temj)oi'ary inc(jn\enience, in tirder that the iioiue manui'actnre should he laiilt \\]>. When the inx'ds of the consumer appear to the .Minister, \uidei' a ri'gime of piotection, to demand attention it is sufiicient evidence, that lo him, at least,, the day of hi^h pro- tection is passini; anil that tlie- manufactures of the country are hecomiiiL;- able to stand alone. Holh the (Canadian and the American Taritl revisions of this year suffered considerahle change in their proj^i'ess throueh the legislative chandlers. The Wilson JVdl, as at first dral'ted, althouuli it retained protective features, was yet a miivemeiit towards Tariff Ileform. When it lelt the House of Representatives it practically ex]iressed the will of the a.dminisirati(r.;'ent interests wldch are so luimerous anil clam- orous under a pi'oteeti\e s\-stem. It was calculated that, as a conseipu'nci' of the clianee in the Tariff, the uni- form pressure of taxation oxci' all would l)e 2!S per cent. — a reduction of 2 per cent, as compared with the averaiL,fe rate of ISD.'?. It was estimated that this reduction would throw off from .^i,.)()0,0()0 to ?e found lid, in an 1 of the ier w't'fe tion wa.s iiM' oltjoct conntry, V itself'." that most lovoiicnt in'rncii', in Is of tlio dc!na?id linli j no- li n(ime thiiiy <'hanL;es fi-nm specific or componnd duties to '/'/ i-illni-i III. SoinethinL;' iias been Sidd .vith i'ef"ren(!e !■• the t iMid'iicii's app-ivnt in the rarill, as al>o with reference to the estimati.'il pi'essure of custoic- tlulies "'^■'''' ''''■'• '-I'ids will indicate tlie general tendency. for |)urposes ,,f more detaile,! investigation it will .serv^- if a fairly tepivseiuativ.' list is chos-n and a com])anson institut.'d b,.twen the rates ..f bSD-J. and those ^,f former yeais. The followin-j; articles will be taken ba- this j.urpo^e : Spirits, t)bacco, agricultural inipli uieiits, aL!-ricultural produce, cotton, wool, iron and st.'el. sugar, leather and claiiiicals. >^/'irilf. The rate remains unchaiiged. Toliiirros. The duties aie unelianged. Af/rictil/iirii/ proil.vxis. H.-re tiie ciianges weic only in a few of the arti- cles. Thiswas in keeping with the general plan, h.v it was svattd that •' it is not the policy ui the Uoveriujient to (iecrease in any material degree the ])rotec- tion at present afforded to tlu' agricultural interests of the cauitry. " The b)ilow- ing table gives tlie chief chaives : A^(;I•;lg^■ cliaiit(e. 2 ci-nt.^ pel II) 5 to 8 pt;r ct. r--duc'.ioii. 3 " |l(it<. 17.1 •' " .1 per ci'lit. 1 " !Slight incrcast', Live \\\)^H •Salt liieiits Lar'i v,T Tjillow 20 Apples, l)eans, tiuckwlient, peas, [lotatcies and ryct . . Unchanged riicliunKed . I IJarley ami Imliaii corni:....: '• I " i OatiiienI,.. 50 cts. per Iml.s |.', cent per 11) . 10.11 per ct reduction. Live animals 20 per cent 125 per cent .^peref. re-lmtioii. ^.'"'i'^'*'' |20cts. and 10 [.er cent ..l.'Wctsaud 10 per cent. 10 ct,. macldiei nes, gooselierries, | , raspberries etc |2cts. (aliMut :w.:i perct.) Sets, (ahout aS.Oti per ct. 1 V.KAb per ct. reilu.tn.n. Aaricidfaral implemnih. A I'eduction of lo per cnt. was made in the rate ; a duty of iO per cent, being std.stitided for tlie former rate of ;{.") per cent' The duty on smaller imj.lements foi' faiiu u.se. rtj. .scvthes. hayknives, forks, rakes and Ihjcs, i-eniained at 85 per cent. 'Biidxet speech, tTliere is a provision for a statutory oHer of reciprocity. iThere is a statutory offer of reciprocit\ . In the case of Indian corn tliere i.s a diawliack of \M per ct. SAbmit 10.52 per cent. Tlie average percentu^e cliarere is ca'eulated on the basis of a wholesale trade list. li About 20. tW per ceni. 40 Cotton. As lias hccn iiH'ntioneil, cliaiiLfL's t'loiii CDiiipouiid to ail f.i,U,ri'ia "lutios took pliice in tliis list. TIh' Ibllowini;' talilo eotUaiii^ tlit> articles upim which a (.'ompomiij iiity is i-e|ila('('d hy anotliiT rati- of duty : (i! " '• •• ,'i '• If) grey (unblHaciied) 1 ct. pfr h(| 1 1.''-'.', 'I'll |J( !• cent. , 22.', . 22.', 22.', '.\'£' '25 lilf ached collais c.itf.-- . shirts. . yd. and 15 ]ier ct 25 '' .1 " " ,:'0 " i21 ct«. pfr lio/. and lid per ct. 24 cts and 2.) piu- cent. ., 1 " ■• , I " wi'liViing (nun clastic) cordage •■?! t( i( ;}() per cent, when under .$3. 00 per do/. When over SS.OO per do/., .*<1.00 per doz and 25 per cent. 2 cts. and 15 per ceni 25 per cent. 1.1 • 10 '■ ti 'rherc arc twt.'lvc •irticlcs on whicli ad ritli^i'em rates art; cliai'L;cil liotl> in the old 'J'aritt'and the new. The average charge on these under the oltrati's this sut).stitution : < )lii rate. New rate, Woolen yarn llO cents and 20 per cent Wool cloth il0 " Dress Roods jlO " Knitted goorls .10 " " C.ari.ets HO " Ch-thin^,' lie " 27i per cent. 80 i.)01 .1 85 32i This change means at the same time, on the whole, a reduction in duty. Take for example woolen yarn; t.aking the average value as ."?! per pound, this ehange would mean a reduction of 2^. per cent. The nioi'e equitable pressure has also to he rememheri'd. The change in woolens is especially noticeal)le as the compound duties had lieen unich in favor on this item. li'oit and >Ueil. In the Tariil' list of 18!(4 therc^ are some sixty items under this heading. Tiiis does not mean, however, that only sixty articles of iron and 'The article in i|UPstion is velvet and xcheteens. The duty was now placed at 20 per cent. 41 ;(/ valovt'm ides upjn latp. r cent. niin.ierS.'lOO ■II ovt-r SS.OO ) \ne provisit^n tliat is present in the ohl Act, in several instance^, is al.M) present hei'e, naineiy, a pro- vision that the specitic duty iniposeil sliall he e(|uivah;nt to at least a cei-tain pei- centa^'i'. For exam])le, if a specific duty of 810 per ton is im})osed on an ■irticle, then thiMe is occasionally a proviso that this shall he e(|Uai to at h'a^t 'M ]ier cent, or Mo ]ier cent.,* as the case may. The estimated reduction of duii''- on metals and manufactui'es was ahoiit ^.SoO,!)!)!'. It has lieeii conten ceitaiidy a weakness in the prot(^ctive {)olicy and went tar to nullify the |)rolcctive intent, in the nianiirac- tuie of l)i(r iron, either puddleil har or >crap iron may lie used. J'he puddled hai- i.>> the product of pie- iron. It was the intention of the ( Jovernnient, when im- }io- per ton witli the intention of securing the market to the home jirodiict. (Jwiny' ti.' the low rate of duty imposed on scra]i iron, those eneai^fed in the manufacture of bar ii'on found it more to their advantage to im|iort scrap. As a conse(jiience of this practically no bar ii'oii was manufactured from puddleij bars, and so the, (iovern- metit policy, instead of ensuriiiL;' the de\elopment ot the hiiflier branches of the iron tiade, luul a directly opposite etrect. This state of ati'airs had continued from liSST to liSy+. A chanee was now made. The .'-^•2 duty already imposed was forthwith increased to S^i, aniis is 35 piT cent. Tlu' evident iat'-ntion is in cnniliinH in its opt'r.atinii till' aiiv.iutaa^''.-- of hotli spcjiti'' iillil H'/ niLiri in ilutii'.s. If the sjipcitir ciiar;^t! fell l)el'iw tiie ro|niieil i»rcent:i(,'i', it woiilil have to Ije ailapti'il to the altered ennditionf. The develij|iiiiei!t of indiHtiy and the fjraliuil t'hea|iininti of industrial iiroi'osses, ensure that, on the a\era?e, the Hpecitic ehar^o will he more than the pKipoition rfiiuired. H'iil( Till fr^'H liiiJt.slrii, p. 24. Tiiis is a iianiphiet whjoii \\:i> read In fori' iho Min:n^' A'-sun.ition of 'ihiebec, by Mr. (I. E. Drunini md. Vice-president of the Association. !"l'nder that duty it is siipposi d that not a very ;!reat deal I'f foiiitrn scrap will he itnpiMted. Our object is to induce the niannfacluie of har iron from tie' iron of the r uiiitry -from pu Idl'Ml bars." Budgtit Speech, reply of Hon. .Mr. Foster t > 'pn ^tion of Sir Kiehar.l Cartwriglit. iJDuring the fiscal year \H'Xi- 1 this bnunty was paid on 18,000 tons. This was mo\ed on July isth, ISIU. It is to hold until March 2iith, 1S!(4. In the case of toundries started after the jiresent but hefore the dtimate date, the bounty is to liold for tivt- years from time of starting. 42 The ^'ont'i'nl rutr on iinii L;(i<>iis not i'>|)eciiilly |)n)vi(lcil i'nr is icducctl to -71 jici" cent., a rcdnct.ion oF '2!. per eeiit. as conipareil with tiic i';ite of ls,S7. Tlie following lalih' ^ives the elian^es of iiuportMUee. Uiniert iid>' (.f ls>, '_(; ... !;:iilw.'iy r.iils liaiiw.iy tish pLuis . . I'';itiil ,111(1 liudji ill))) . Slovi .-. ^mil c-u.-ititiKs . fiDii liridgcH, etc fioC'iiriotivt'H Di'Mwn lioii'T I'.iliiiip !''uiliif'i\s" hi'.: Ivii- llult.i, wnsl ' , e, Tafl<,'<. ..f. Morsc^lidc atifi li " i-f- Irun win- nails S;'al(-;' iikI lialaii"»-, . A(izf^, hatchet-. Half i)f 1n'<7. si |ilT slO ci'lU ISO . : ;fo ii r ton. [MM- ccnr. |";r tun. l.s. m " ;ir, 7.', " :v2.', •• \c, anil 20 i ii Ic. per 1,000. IiO |)Pi' cent, . I'c. ]KT lb. . , . no I'l'T cent. . (■t'lit. .S2i Nil V2y. 812 " 8t;i " Nil) '■ IpUt lUit 1 i(,'. \>rv lb,, '•10 lif'T (.'tilt. 1;-) " sr« " .',(!. ami ;*0 piT cent. 2c. i.Hp 1,000. I.'.c. piT II)., but mil Uc. " Ho per cent. :(5 Ics„ tliaii SO pt r cent. than '•)."> 35 ji-r ccnl. A e(iiii|iai'ison of the ir m '^ihmIs ehai'i;c.ilih' with " under lioth Actsni\('s the following ic.sult ; Average dntiesou ^-oiiiUcliai-ucalih' witli ml rulufi ni (hities in old list ;10,4') pei' cent. .■\veraoe diitifs on same ifood,s cliargeahle with (((/ ■ralorcii duties in new list '1\.~\ " l*i'o,ss tendencies are sluiwn in riie ^'oods suhjeet to coiuixaniil ihities. For example, on wroni>ht iron tuliiui,' and i)ipes the specitie com]ionent of the com- pound duty is increa.scd 4-l()c. : on wrought iron or steel rivets the (ul rdforciih element i.s dei'reasec. This illustrates the somewhat ei-ratic nature of the chanj^es in the compound dutie.'S. t)n the whole there is a icdiiction. Tile action oi' the free list must, as usual, he t.d jicr. 8- 10c. '' Steel cieam geparatoLs are added to the free li-it. t The raising of the ntandard from No. 14 U.S. to No. llJ D,S. admitted free angar. fitted for culinary and tal)le purpose.s. isl iff a^ ■'i 43 l»v a ('li('iiLical.H. Ill the C!ist> of acetic uciil uikI [)yroli,i;iic()iis ucid I'ur dyuis, the (liitv is chaiiifod tVoiii Ic. and 20 ])er cent, to 2-') per cent. On the whole there is ii, di'creuse hotli in tlir .s|>ecilic and ml raiircm lates, /.(iitlnr. Oil leather hoard ami leathri-oid ai) ii,<{ rii.lorr))) rate of 20 ])er cent. is suhstituled I'm tie' t'onuei' spi.'citic ehai'ne ol Mc. per ixmiiil. On eii;ht Dther items, which lie.ir an C'/ ''r//iy/v//( duty, under lioth the old Act and the new, the a\fraL;(' new duly is 17.^2.") jn-r cent, as ('ompaiXMl with the foi-ne'r iiver.iLi'e iMteut' 20.<;-J.') per cent. In the di.scussiun ol" the |)res>urr ofdiitiis upon a;^i'icultnr.il proilucr the reci- procity cluusi' has ah'eaijy hcen rei'cuw.'d to. This clause didi'is in ■j^yrnt dcLjree tVdui till' recipi'ocity provision^ of earlier year>, in that it is not so coniprcdieiisive. Il has til d(i with a^-iicultural products, hut it does not contain a ci>nipieliensive list ol' the.^e. Till' imports into ("aiiada of the viirious ai'tiele.s provided fur iin hi^ more exact, to Sliii.iiL'l. The most imiiortant items are apples, of which SsO,."jtJ7 Were impiirted, and piitatoe<, of whieli there was an im[)orl nf S}-.S,2S7.'' 'i'iie nii»i impoi'lani changes in the fi'ee list are with rcfer'iice to acids, chcuucals and lundier. 'i'lie )Hilic\- pinsiied l>y the (lo\crnmenl in iilacin'^r acids (jii the fi'(,'e list may hest he indicated h\' (pKjtiiiij the worils of the Kinanee Min- i.itei': " CJenei'ally, 1 may say that all a.ci(ls, dru^s, dye->tutis, ex'rythini;; which is necessary for tanniu'i, in the niainifacturini,^ processes and the like;, have heen taken Iroin the dutialile list and [^aced on the fret- list.''| The (jrov<;rnnient in\ estimations, prior to the amejidment of the Tarilf, showc'd tltat the hnnliei- eom- iiines exercised consideralile pressure on the people, esiiecially in the Northwest. Theie tlu' rouLjher n'tades of lumher were in much demand foi' use in the construc- tion of farm dwelliuLjs, and the settlers were practically at the mercy of the com- liine. '!"() redress this Ljrievance lumlier was placed on th.e free list. Siuidry chaiiLjes, in this direction, had, from time to time, lieeii made; hut the amendment of this year wa^. more comprehensive in that sipiared linnhei-, slnnu'les and. in general, the I'ou^hei' Lira les of timber used in huuse-huilditii;' were placeil on tlie i'wr list. The average rate nf charge on these had heen aliout 20 |ier ce?it. Although this chanj.je was mad . it is to hi' home in mind tliat the Tai'itf Act ii'posed in the hands of the Governor-Oeneral-in-Council power to impose export duties on the articles inchuh'd in the lundier scheduh' in case any duties were im})osed on them hy forein'n c<»untries.!:< The amendments to the Tariti'in its way throui^'h committi'e were numirous.|| In so far as there is any appreciahle prmciple shown it is tutake speeitic iluties into fa\()r once more. On the whole there is a ttiiidency towards an increased rate of duty, i.e., as compared with the l)udi(et ratt's. • Vi'lr Statistical Year P.(iok for 1K'.»2, p. 248. t Thoarticli's uliicli, in terms of tlii' statutory prns ision, are admitted fro- of duty on rcciiirocal terms are apples, licaiis, buckwheat, peas, potatoes, rye, lia.\-, ve^etaliles and barley, and, as has ah>'ady lieen lndicatertatiiin of corn, free of duty, on reciprocal terms In I.S'.I2 the imports of corn aniounted to .'?8()2,45r), while the e.\ ports only amounted to .^222. (p|). 348-it Statistical Year llixjk for 181)2.) X Viilv Budget Speech. Jj I'he provision is as follows : " Proviiled that if any country shall impose a duty upon the articles in the Mcheilulo enumerated, or any of these, when imported into such country from Canada it shall lie law- ful for the ( Jovernor-deneral-iieCoancil, from time to time by proclamation [lulilished in Thi >'iniiii/a (Jnytti , to declare that the following exi^irt duties, or any of them shall be chargeidile upon logs exported into such co\uitry from Canada, viz., pine, Douglas tir, spruce, fir, balsam, cedar and hemlock logs, nut exceeding three dollars per thousand feet, board measure." II There were one hundred and twenty changes. ■i\- In tlio iron list vui-ious ehanyes, wliicli du nut {>i'o(;ocm1 on niiy \vi'll-ik'lino(l system, are nmdo. In sonic instances the (ul ludorem rate is increased ; in others a s^d'citic rat(! is snlistitut('(| i'oi- it, and in f)tli(;rs a ijnns't ml iHibivcm duty is imposed.' On tlie wliuletiu! tendency is to impose a duty wlncli, while lieavier tlian tlie lind^et rat(\ is sti'l lower tlian that in force in lS92-i. The various chanL,M's and crtjss teiuh-ncies, as well as the relative favor sliown to \arious forms of duties, may he seen from the followinn' taMe, wliich contains th(( chaiiLfes of importance. |{:ul\vay tisli iilatt'n Iliinil illlll llniip < 'ar wheels iiiul axles linlled, heiillis, cliii?lliels, litc Ire 111 iiiiil stei'l Ini'^iiigH TiiiiiL'il :ni(l enamelled wnres HiiHk, waslnTK, etc Iron wire nails Nuts, etc Ailzps, hatchets, etc . . . .Shiivels and Hjiades. ... T.ickc, etc lUidtret rate. Tariff as enacted. HO |)er cent S<10 |iei' tun. .-) " ,flO 'X\ " 820 '■ Imt not less than Hj per cent. 12.'i " 'X\ ]ier eeiit., lint nut less than SIO per tun. H5" " 'A:> " " -Sir) " 30 " 3") Ic. j)er Ul., and 20 per cent. lo. per 11)., and 'Ih per rent. ,'c. per lb ,1c. per IW. Ic. peril),, and 20 per cent. I Ic. per lb., and 2."> per cent. : nut to be less 1 than HO per cent. HO |ier cent | H.'i per cent 86 " I .")0c. per dozen, and 2.") per cent. Ic. iM-r lb j l.Jc. per lb. The I'ate en oatmeal had lieeii cliani;i'il : a specific charj^'e of M) cents per liari'el liavin;;- l>een sulwtituted for the former charge of I cent, per pound. .\n ml i-nlorcrn ilnty of 20 per cent, is now imposed, wliich almost whully neutrali/es the t'ormer reihiction. Taking; the value of a liarrel y)^ oatmeal as ??4.7"), then the old rate of \ cent per pound on 100 pounds would give an avei-age dnt}' of 20.iJ:i pLU' cent. ; the |}udL;et rate of .'lO cents perliarrel would give a duty of 10..^2 i)er cent, while tlie new duty is L'O ))er cent. 'J'hus, as conti'astt.-il with the budget rate,' there is an increase of '.•.4S jier cent., while as contrasted with the rate of I SfKi there is an infinitesimal reduction of .08 per cent. In the duties on woolens the old rates had heen wholly comjiound ; when the Tariff changes were tir.^^t formulated these compound duties wei'i' for the most part feplaceil hy wl I'dlorcm rates. Now there is another change, and in five instances f/(i v.'(i/o*r//t. rates are replaced by compound. When tliese compound rates are contrasted with the compound rates in existence in KS!).'}. it is seen, however, that there is somewhat of ;i change. The specific com[)onent of the compounil duty is les.sened, while at the same time the ml raloreni element is increased. On five items, on which the ad rdlorcm duties of the budget give way to the compound duties of the Bill, there is an average rate of .") .S-."ic. and 2S per cent., as contrastetl with the former average compound duty of i)c. and 21 jier cent. In one case the (id valorem rate is I'edueed by 7i per cent.-f- A i'ew other changes may be indicated. Cleaned rice is I'cstored to the old rate of l]c. per pound; the budget rate was le. On uncleaiied rice the rate is lowered by ] of a cent. Photographers' suj)plies received an increased protection * K.ij., the duty of 3n per cent, imposed, by tlie budget, on iron and steel forgingois replaced by a y tlii; Miidi^ct. In the c!ise of tin- liner ;,nu(les of IcjitliiT the rate is ineii'used liy '21, per eent. The . 20 " I H;") per eent. 20 " 25 " 4c. per 11) 4c. per lb. lie. " I 3c. " VC •• I tc. " ;-iO Jier cent | 30 per cent. .% per ton Sr. |ier 111 . . . 20c. per bush . 20e. " l.-.c. " ler (lo/en $2 per ton • >C. per II). 25 per cent. 10c. per l>M>li. I I.-ic. 2(t ))er cent I 40c. per blil. ] .'.e . per lb I 2.") per cent. 20 " 20 20 " 20 Free Free .~i('. per (lo/en. Caiuiila lias o-one through \arious sta^'es of Tarill ])olii'y, from low revenue tarill' to com[) iratively hiL;h protection, and toi- all tie- diti'erin^ Tarith there is found a iclative justitication in the conditions of the time. The National I'olie^' was ori^in-dly nitended to develop CJanadian industries, obtain r'eei^irocity with the I'nited States, and relieve Canada fi'om the elfectsof tinaneial depression. The reci|>rocity iiiea, however, wa.s oidy the ' ruse of war " of slui'wd j)oliticians. The laiildini^up of the national industries, and the conseipient increase in revtnui; to he olitainecl from the heinhteneil impoi't diities were what those in power laid most stress u[)i)n. For the time the consumer nas willing to put uj) with the * Son e (liscnssion of this will be founil in the notp. in tiie appendix " The, intbienee of the Tariff legi> lation of the L'niteil Statoa ue<>ii the Canadian Tariff." 40 fiiliaticctl cDst ill r)r(i('r to Iniild nj) lidtiic iiuuinfMctiii-fs. As tiinc went on ho t'outnl tlic piv.ssure iiiori; ami iiiort' irk.soinc, ainl Mic 'I'liriH' aiiii'n4 reptesoiitH in somk! ilc^nio jui atttMupt to meet the nerds of tin; consmnors. Despite tin; fact tluit uniciidments liavo from, time to time, taUen platte.tlio avera<,;(' nitv of (Inty in tlie latei' periods of ttie operation of the National Policy is iimch lii^dier* than in the earlier years. Ihit in tpialitication ol this it must he renitun- hered that the varions forms of taxahle commodity havn heon mon^ tlioron^hly sonj^dit out than formerly, and tliat thonnh arhitrary pressui-e is pi-ohahly ins''))- arahle from a protective system, yet the pressure is not (piite so arl»itrary as it once wa.s. 'I'he popular desii'e for 'I'ariH' llefoiMii niftkes tlio amendment of 1 SO-j' especiallv interestint;. in earlier years the Finance Ministeivs were, to a Lfi'cut t'xteiit, under the control of the protectiid interests. Nowaday.s tlus Finance Department sliows more ceediuffly ditlicult for the ( iovei'iuaent, (Ml account of the pressnix- lirought to hear upon it liy tin; pro- tected interests, to readjust the 'Parili'. in Canada the prot(cti\e jiolicy in \();^nie co-operates with the peculiar juisition of tin; country to render Taritl' reform an exccH'dinirly u'radnal matter. The greater part of tlie revenue of tht; l)oininioji is ohtained from the custouis duties ;-f- and the increasiii'^ demands for (lovernnient e.\p(Miditure cause the administration to look with favor — from the linancial standpoint, if from no other— upon tl>e continuance of tlie present .system, which insures a comparatively stalile revenue. When this dependence, ujton the cus- toms duties is coupled with the clamoioiis inlhunce Inoiinht to Ix'ar oy the jirotected classes, the task of the (lovernnient when iindeitakiiin' a revision of the Tarilf is a ditlicult one . and the revision itself must of neces-ity ]»roceed vvvy uraduady. Ileasoninn' fi'om the ct)iiditions of the past to the prohahilities of the future it may safely lie concluded that Taritl Keform in tJanada will he achieved, not hy a sudden reduction, hut only liy very i^-radual steps. * St'c Tabic- I. in Aii|iuidi\. I' Dui'ltit; the yt':irs ISIiSllH, 7 I ]M>r cent, 'il tlie wIidU- iuiinnnt cif taMitiim wa-- lierivrd frmii ni-l 'in- . I.s7(i--N<» Act. I S77 —40 Vict. cap. 1 ; 40 Vict . cap. 1 1 . In7s -No Act. iNTli— 42 Vict, cap. I.'). IS^O 4:; \ict , cap. IN, I.NJSl 44 \'ict.. cap. 10. 1MS2— 4.') Vict, cap. (i. lSs.S--4(iVict,,cup. 12; 4li \'ict.,cap. I:{. |.SS^ 47Vict.,cap.2!»; 47 Vict , cm p. SO. I.SM.") — l.,S Vict., cap. 01. psKil— 40 Vict., cap. :{2; 4!t Vici , caj*. M7 ; 4!» \'ici., cap ;}S 1S.S7 -•)()- 1 Vict., cap. :i!>. INNS-.")! Vict., cap. 14: .".1 Vict . cap. 1.'. |s,S!» ,')2 V id,, c.ip 14. i 1S!)0 - •):; \'ict.. cap. 20; .').'{ \ict., cap. •>1 I ISOI -r)4-.') N'ict, c;ip U ; .'.4-.') \'i Vict., cap. .SI. IS! 1 2 -.").')-(; Vict,ca|.. 21. l,si»:{_.-,(; Vict..cai). l-» s S a o S S e k« X' : e IStJS lSt)',t l«7a. 1.S71 . 1.S72 ls7:^ 1N74 187.'). 1S7(). 1«77. l.S7cS. 1N7'.). IS.'^O. 18,S1. 1882. 188,H 1884 188.-) 188(1 1887. 1888. 188!» I8!t0 18!)] 18i»2. 18!t3. !S c. I r.7..M)7,,s88 (K): lid, (71,781 00 7;<,.')7:(, r.io oo 71,17:f,iil8 act 8L',t);v.t,t;h:< mi 8;i,78:t,'.i2'J oil s:i,;i.")),'.ij.s (ij 77,8-iij.!)7'.i 00, so.'.iin>,4;ci 00 1 7.'i.8;5,;'.:i:i uO 7!i.:i-':!,ilii7 00 71, 1 01, 2.").") OC 87,011 ,4.")8 00, !)S,200,8'j;< aj 102,lS7,20:i 00 !I8,I)S."),801 00 01,4011, 1'.ii; 00 ,so,2:-!8.;i()i 00 .s,-..2.M.:U4 00 8ii,f)ir>,8ii Oil !)0,_'nn,000 Oo 80,180,107 00 0(1,740,140 00 08,4i7.20(; 00 ii3,oc;<,:{7.-) 00 118,564,352 00 S C.I 7:!. I.')0,(i44 01 7i>, H."i, !(>.') 00 7l,8li.:«o 00 in,oo.'.!)7i oj in.4:!u,r.27 oo !2S,011,2S1 (ij f_'S,2l:).,">s2 00 12H,01ii,2s:< III) on.2io.:itii 00 oo,:ii'7,oiiJ 00 o:i08!.7s7 Oit 81.0(;4, 127 Oil 811,480,747 00 liri.3;;o,.s4o oj 110,410,.-)00 00 i;f2,2,")l,02-' (III ll(),:<',)7.04:i (i> 108,7,(i03 (IJ st),!i47, 182 oo 1(17,7(10,1 l(i 00 i2r,r)ii,;.oi im 127,4(11,100 II) no,(ii8,(;,")7 00 !I4.7:«,218 0(1 oi;,3(ii), I8;i' 00 '.ii.iO'.',ri77 oo so, ;u 1,10.- 00 71,872,310 00 01,01 l.ilOl 0(1 112,i;i.s,027 00 !2;f.i;H7,oio 00 108,180,044 0) 102,710.010 oo; o'.i,-:02,(ioi 00' 10,'j,(;30.428 00: 102.847,100 00 100,073,017 00 112,7(M,."i84 (K) 113,34,M21 0(1 110,078,043 OO 121,70.-),0:)0 00 ~'"?.B ■-.- t. 3 - J, * /, ^ &. i S 5 S Z L. ■y. — c. U^ K 8 .■* c. 1).T )* c. 1 *-■'■'"• s,Mo,4:il (13 2S,320,(.10 (Ki 20.22 17,08(1 00 8,208,'.)00 71 2(),2.i2,'.l2S (HI 20.18 11,102 00 0,402,010 14 2(1,11(1,181 00 20.05 37,012 OO n,84:(,(;.V) 1 ■'> 2(1,8,5:;, i;i(i 00 10.70 3(1, OiK. 0(t 13,01."), 103 50 30,l)i,3,;H08 00 10.03 21,,S00 ()0 13.017.7;!(» 17 5tl,105,:ill8 (i;i 17.11 20,152 00 Il,12l,«,s2 (17 51,l(18,.-iltl 00 1!).:12 I l,.5(15 00 ir>.H(;i,;!,s2 12 41,177.220 (10 io.5:< 7,213 00 12.s:i:!,ili 4s 34,480,,S72 00 21 ,3(1 1,5(K) oO 12,."iis,4.")l (It 35,:!h0,523 00 20,(13 4,io;i 00 12.7'.C),i;:i3 17 ;!l,t22,0,s«; 0(t 21. 50 1.1 111 Oi> 12,037,.M0 (ii; 24,011.50(1 01) 23.35 4,272 OO 14,l;i8,8l'.l 22 17,50.l,;-182 00 2C. 11 8,,^'Otl OO 18, .-.00,285 07 10,01t(i,.s7il (X) 2)..5il «,ll(t 00 21,70.S„'<37 i:; 2(1,^01,401 m 20.40 .■^,s|0 (,(t 23,172,:<0s •') 31,5l8,tl,S0 00 25.32 0,755 0(t 20,1(11,003 37 2S, 170. 14(1 00 25,20 .^,510 Oil 1 o,l:!3,. -)r)8 00 20,110,401 (JO 2(1.11 12,:!05 m 10,148,123 70 2s',043,,S75 00 27.. 52 20,72(1 W) 23, 170,71 1.-> 8:( 27,5i.\717 00 ;w.oo 31, .107 OO 22.200.(101 53 31.()2.5,.s04 00 31,04 21,772 00 •1,3,78 1„523 23 34,(123,057 00 ;!0.31 42,207 GO 21,014,008 07 35,(150,208 00 31.03, 03,074 00 23,4S1,0(10 13 3.S,.S00.08,s It) .'jl ,10 (14,803 00 20,1^0,581 53 47,.sl8,20(l 00 20.75 108 OO 21. 1.51,171 00 51, S3 1,4.50 00 30.281 4s Tai!I.i-: II. — PcM-ffiitii'^c ol'.liity on total iiiiiM.rt.s -.lutiiihl.. ami l'n;o. Y»-.ir. I'irci'iii. l«ti.S ., 12.00 WW i),7H 1.^70 12. (;r, l'^71 i2.;;-.' 1«72 11.70 1W7H 10.17 \m 11, ar. iN'rT) 12. IS l«7t: i;i.7(; YiMP. I'fl Cfllt. 1H77 12.(13 1H7.S , .. i;«,7i IH7!» ir..7H IXHO 1(1. ;«t IhMI 17. Ml 1«S'J Id. IN 1sh;( 17,;VJ HN4 17. H2 iHH.-p 17. .Vi N'-!IO, and iliitv tlicrciin. y.-ar. i.Mi.tnrit.v. isVO ....I loit.lti:!, IKW I IKi.siT. l««l 1 i;i(i,l(t(), 1882 1 i;ir),;i2:t, 1H8U... I ir.2,V2!i, IHHI 17;t,7»'J, l.SS,^ I 200,(111, ISHd I 177.;ilt,-, IS-^? I L'OO. 1(1(1, 18HS 201, SHi), IKMi) I 22H.S41, IHW I 174.07ri, fis. jiiri 0(» OM) (10 1 r,i;t 00 (l!t7 00 rid'j no 1 177 00 .-.11 w j 7;ir. 00 ; 07li 00 ! 821 00 1 171 (10 1 720 00 Vul. I'lity, liiiti' |ii t cent. •l,lS(i,22(l 00 2,;">l),"i,ori oO "> ;).'.toi,L'.s7 00 ■J.02(1,(10'J 00 ■■',ll((,!l!t:i 00 •-', iriii,ii2 oo -. .jO l,M(l,0(l(l 00 ■J,'.t|(!»,7(ll 00 ■»7.rio r>,oiii,,i"i;io uo li, 017,7:10 00 IS. 00 •"i.riOlt, 12!" oo 2.i>0!».riO!l 00 47.;«i r>.ioo.i7s 00 •J.MJ.'.iJo 00 •lOOO i,r)7:i..".7i 00 2,:ion,;i!t7 00 fiO.liO 4,S(12,01-_' 00 ;i,i(i7,:ii.'s 00 or.. 20 Mr.i.i in (JO n, in;!.:i;!i 00 ()l.f)0 r),.s;i7.s!tr) oo :\(17"',7l.'l (30 uk>i| inuili ti* the iiiiliitMiil miiI iini'Ht n t'jicl whicli is illiistratt'd ill tlic |in|»iil;ir iiaiin' n|' ihc ( 'iiiiiuliiiii |irot''i'li\ »• jiolicy. I''i'fi' tiiiili', 1)11 llu; ullirr lliinii. IS llinrt' <'i»MiMi|iii|it;il| jtl IdIhv Tllr fl'i'i' tr I'lc ip|\ ucilli' li('|i('\TS in a pnift'ss of cvuliitjun wliicli will (•n>iiir thr -\' ' tin' litlf>i;" tin' j»ri)tf;'tioiii--t on llic ntlicr li;i,iiil, \vi>li<;-. to '4i\i' till' lioiiic iii.lii^try aii .'iilviiiitiini' lit least I'or tlir tiiiir Ipciii.;' ami in- may lon|< I'oi'wanl lo a tiinr when tlir ilillcr- (^ntiai udvajita^'o altonjril Ky a pioti'divt' ■liity will In' ituiovciI. KiTi! trudi! ailvocatrs liavn at times made tlnir ;^enerali/.aiions too luird and fast; and coiisiMjih ntly it was soinewliat of a shock to die orthodox fret; ti'ader* wiieii .John Stiiail Mill niiide liis famous statement that, in the ea^e of a voiiiil; iiatioji protective duties were del'eiisilile.i on |irinci[tles of |i'.litical eionomy. when they Were im|iosed " in hopes ol natiiiiilizinn' a forei'/'n industry in :t>elf pei iVctly siiitalile to tile circunisl;inee> of the eoiiiitry." lie went on to say that liie diti'ei- ential ad\aiita^e which one iiaLioii has nver another in imiiit of |iriii|i|(tii>ii is often owiii;;' to the fact that "it had he^iin it >ooner. ihit in inikiii;;' this statement Mill also saiil that such duties should he temporal v. The whole (|Uestion of the applicahility, in a particular nation, of Ine t laile n\- proteitioii, must lit! stuilied out in accordance with the facts of tlm case. 'i'lie framers of the National Policy did not ailvocate it on the ground of eco- iiouiic tlieory. 'I'hiiy acted entirely fi"iii the standpoint nf practical expeilieiiey. Tiiey wei'e desirous oi" liiiiidiie^- Up the Imiiie iiulustries, and the popiiLu -eiiti- meiit of the time was willing; to make any saei dice tn accomjili^h this ei,d. '{'here was also a feel iiii;' that the adopiitjn ot a National I'lilicy would maki; ( 'aiiada independent of the t rade deprcissious that atlected otlar coiintiies. Ihitapro- tiictivi; policy, liy nmliily i'acilitalinir e nicentiatii^n, and at times coU'^estion, of industry, may acceiiluate rather than minimize trade disti uliaiiees. The idea that pnjtection entailed an immediate enhanced eist iipiai t he e iiisunier which, however, min'ht, in time, lie repaid to him in ( heapi'i '^ood^ did not have much stress laid U])oii it. It was the producer, not the. cousuiium', v. hi was thou^'ht of. 'IMiere was, howevei', soaie recognition of the fact that a peiin.iiieiit condition nf jirotection was not. desirahle : for .Sir ( 'hai'le^ Tiip[)er con -Idered that tifteeii years would lie amply siiHicient to place the ( 'an.idiaii inanufiict ureis in a pii-.it ii a i of inde- peuilelice so that they could compete with i'oiei^n maiiufactiireis. The lii'teeii yoai's liave come ami ;.;(»ne, and the 'infant induct lies ' are imi yet w illini;' to stand alone. 'I'his iilii.ir.ates the fact iliat when uiice piuteetioii i. a lopted, in a c(.'iintry where a representative .^y. stem pie\ails. it i., exceediiii;ly hard to re- move it. S(,ime ailvoi^ates of [irotection arn'iie thai, an iiiriva-.,..! import duty is a matter of niiiior importance; iK'cause if foreij,ii <^ Is are imported it will he the foreign merchants ujion whom, accnrdiiin' to their liypotlii'>is, the ta\ uili fall. The advocates of Free Trade , ire, on the other hind, pruie to elai a tiiit in all cases the consumer pays the tax.*" The disputed ipiestion is as to the etl'ect of the tax upcMi |)nce. If it raises the price in the importing' country, the resuh wiil *TI)e (lixunssiori is lU'Of.Hs.irily a iiiiTe outline. .Ml tii.it is tli'.^irt.il, i- I" tlnow hoiiic ligiit, fii.ni tiio tlieorctic .stamiiiniut, iipini uarlitT Canaiiian protfL'tioii. 17-'.;/., Tlii)ri)l(l Roucrs, Political EcoiKniiy, p. 'S,<'> . tmiVn I'linciplfs, Vo\. II., I.. 5;iS. SAlthiHigli Adam Smith had stated this. " ft was laid down liy Sir Charles Tujip'T tliat fifteen ye ir< 7,hnii!d In- snllicj.'ut lenptii nf lime to f,'iv« the manufacturers an o|i|port\init.y of gettiiitr im|iioved ptints, skilltij workoien, and e<;,il)lisliiil channels of trade." .Speech of IJ'Alton McCarthy. .M.I'., at l!,irrie, .lamiiuy lltli, isi),). **E,ij. McCuUoch's " Principles of I'olitical tkonomy." Part II., cli. V'. •i T.ll. T-^ 50 lie that iKit (jiilv will tliL- i;'i'(.'atiM' ))iirt dI' the tax lie hoiiu' \>y tlii' n)iisiiiiiei', but iImtc will also lie [iaint. Notwithstanding this tlie im])orts of iron a,nd steel werr. in i Mlo, .;>.S42,oi»S, lea\ iiiL'' lor home consumption ^^Tl'), !»:;:!. j:j It will, at this rate, take a lon^' time to secuie tlie (/ana.dian marki t to the Canadian iron mas- ter ;|| it will take a much longer time to hrinn' aixjut the condition in which the coirsiuner will lie re|iaid liy cheapened ])ioduction for any sa<-ritices he may liave made. .\side from the advanta^^'es conferred liy '■ a sia.rt,' it is undouhtedly true that certain localities, and certain nations, ni'e pei uliai'ly suited for (•(■itain indus- tries. Hut this consideration is apt to he ovei looked, and the adva,ntaL;-e tlio older nation has attiiliuted solely to its "stai-t."** W'lieii protecli'iu is imposerl it means that a, patenmlistic sijprrxision of industr\' lias to lie attempted : the ( lovernuieiit, in detei'ininini;- which industries are suited to the cnuntry, which industries should recei\e protecion, is nuich atl'ected hv the ileir.ands of the uiaimf.acturej's ; and conseipient ly industries are, from time to time, aided-the success a)id ad\ ;!lU,a^•es of which are, at hest, prohlematical. ( hie ti.ore ipiestion demaml.'^ a passinnconsiileratio)!, and that is tlie Balance of Tiade theory. Sir Leonard TiUey was an a)-dt;nt heliever in liiis thi'oiy ; to him it was the scientihc huckler which servtid to co\ ci' ;!ll the cruditii's of the Nati(nial Policv. 'I'he Balance of 'Trade theory enmes down to us fioni the days of the .\h'rcantilists. Many protectioiusts have .liscurded the theory, Init in Canada it has, at times, exerted coiisideralile inliueiice. To tiie popular mind the theory seems i-onclusi\ I' : h\' reasoning' from t he analo'^\' nf the individual income and ■■<, '/. Till' McKiiili'y Taiili tuvcriil llii- ]pi'ii'>' ^i ( 'amiiliaii hay. i An alili' t.icutiii'>iit. Ill tills siilijccl will lir loimil in I'n.f. Ivlin wurlhV :irti,-li' on " Tin' Plipory .'f Iiiti'rnutiniril \'ahi(s." in tli'- i:,-"ii'iiiu<.hiiinuil fm- March. IS'.H, i>|i. t! V. I.Si'c lalili' I \' , in a|i|ii(iih\. SThi' Statistical Year limik lS!t;l, cliaii. .\. Tlu' S'l av UnuU ijncs nut ^'i\.' ditail-.j :l.it.a a.s tn the tmal value (it the inin ami .-(tccl inanut'actnrcs of Canada : licnci.' tin' liffuic-; uscij in this ennni'ctiiin, aw. at licst, a|i|ir can -land alniie. N"t\vit'istandinK the fact that |ii^' ii'in is pi'dteeted liy a duty .and a Imiinty, which in the .i:,'t,'re;Mte .iiii'iunt to aliieist 100 per cent. — liiu' ii'"" can !ie dlitained in Alali inia for .Sti.yri per tun (Jaiiadiaii manutacturt^rs are olit.iinint; their [lij,' iron troiu tiie. .Southern States. ( I'ldi speech Litiili'^ a t'avdr.ililc Wabnice nf trad''. The itupnssiliility i)F ])crpetiiallv iiiaintainiiiL;' a t'a\ nraMe halaiicnr nl" traih,' wa'^ •I'Miiunsd'ati'il l.y liumc. 'I'lle excess nl' expnlls (lueslpit I'f necessity C'lUsrir lite ;i i';i Viil a'lile ->iL:ll, for it may liajipi'ii that, in a conntiy where the exiinrts exceed tlie impuris, as in the ease nF Jnili:i, tliis excess iiielude- ,-i hirje amount sent alu'o.id in settlcr- meiit of (hdits. A"'ain, tlie lial.-iiii" uF trade theorv n(.'L!-h_'ci-> the • in\-i-.il'!e export" oF triinsportatioii clia!'L;es -an export wliich is \-ery niipMit.nt to a. carryine- nation, sucli as l"]n^land.+ 'i'he seeinini;' ex;ii,'s- is hir^'ely due \u tlie fact that llie imports are usii;i,liy v,-due,| at the place of tlieii- ;irri\al, ;i!id heiir.' the vahie inchide.-^ transportation char^i . wh'de ilie exports liein^' r iteo at the ])ort of ex[)ort are rated oniy at their market \;due tiieie. lUit the L;reate.>t ohjection to tlii.-< theory is that it a-^siiii!'- that .ire setth^d directly hetween diditor and creditor. In practice it i^l'ianid tliat ile'd'htoi- nation has trade dealing's with other nati.m,-. ; and tlie deliit- and eieihts are •settled in tlio majority of cases, not liy direct payment^ wt '^old, Imt hy hilK u[ion the countries wdiich are indehfed to tin' debtor natiiai.; In iss:. Sir Lei.iiard Tilley contended tliat the National i'olicy had temled to lessen the diliirence lietweeii the imports and the exji irts. We have already indicated tlie importance, from the re'\eime standjioitit , or' the inqjort dnii's; it mi'j;lit seem, theri, a sdineudiat stranj^e ciaiise nT pi'Mcecliire, mi the part wt the tinanciers of tlie earlier [lerioi! of the National Policy to de.sire to diminisli the imports and im'rease the cxiioris fur h\' so doiiiLf tlie\- would at the sami! tiim^ tend to decMeuse the re\enue tandin,Li' the efforts made to redress the ■' uii!';i\uralile Kalanci' of ti'adi; the lut;'ic oi tacts sliows how futile Were tin/ attiaiijits iif the lie!i.\ ei'.s ill ihisthi'orv 'or, e\eii when the National l'olic\' was heinu,' cMui^ratulated for its success in this ])'-irticul.'ir, we find that on!\' durini^' une year, I sNO, did the expoi'ts excied the imports, ,'ind tiieii onl\' hy a million and a half, while during' the jieriod |n7!'-!''{ the imports ha\'e excet>ded the export- hy S2!) l-,Ni("il as 't may sreiii, tile iliipcirts cif tlie worl'l ►■.\eiM-(l its expcirts liy .SSQl 1.000,01 Ml inniiallv. Fln' exiilaiiatinu nf this laet i.s Kiven tlii\ms,'liiiiit the i)arapra|ili. Thi' liansfereiiee ul imietneiliie^- in rrspeel. ..;/., of the raisini^r and repayment nf loans, \i an impurtaiit element in the s>'ttlement nf inl 'i:aini\,il lialaiu'c ;|:See ]ii-eface to " l'",viryliody's <,»uestion," i>i). o-7. This is a pamphlet Ky Mr. <;. II. Ch.amln'rs, Chair man of the London andSt. Katliaiiiir 1 inek^ (',ini|iaiiy ifjond..!). 1S7;i, Milin^rli-un Wils.'ii pulir.l. SSee Tahle I. in ap)ietidix. ^rr- TIIK INKM'!':\('h KXKin'KI) IM'ON 'I'lIK CANADIAN TAIMKF iiV THIi 'iWKII-'K OF TIIK HNITKl) STA'I'KS It i- ili!liciill (ii ,nt'i\ r ;il, ;i ciiiicliHiiiii on tliis (jiicst i the (lUrsliun iii;iy In' fdiiiiil in the Tnrid' Ilistoi'V ol" (.'aiiada. T(j '^i) hack til tlic (lays ])r('(.'cilin'4' ( 'DiilVdcration, we Hud, in 1N.")!>, tlial IIm' netidii of tlir AiiHridiu ('diil'IV' s in aildjitinL;' a 'A) \>rr cent, rate on spirits cause.] till' iii--e: tiuu dl" a .')() jier cilit, liiti' oil >j)irits in llie ( 'anadian Tarilt" Itcsolutions. ' liatcr we liiid that tlic action oi' tlie ( "aiiailinii ( io\ eriiiiient,iii 1 n72, in removing; tile dutii's on tea ;iiid cofi'ee was. so tar as ajipears, can-^cd solely !>y tlic ante- cedent iictioii ol' tile 1 'niti'd Slates, -f- The events ol' this year I'lirnish a still further (!xaiii])I(! ol this inliueiice. it was discovered later on in the .session that the (Jniteil States intendi'd to disci'iniinatc adversely ai;'ainst " teas an the most conclusive reconiiitiou of the inliiieuce of the' Ameri- can T.iritl" legislation is seen ill l>S!)4. It was .;omewhat late in t lie session hefoi'e till' ('anadian Tmitl .\et was hron^ht down ; and this was widely understood to he owin:;" to a desire to await de\ elopmeiits in the American Tarilf. In addition to tliis there is seen, in the ( "anadiau Taiiri itseli', much evidence of the fact tliat the Aiiieiiean Taritl liad heeii elosely studied. Some examples of the appi'oximatiiiii in point of Tiirilt rate on particular items may ho seen in tlie comparatiiv e tnhle ^ivi'ii in a former portion of this essay. !!});; Another example nuiy he cited. Winn the Finance .Minister was speaking- with reference to the rate on live aniin;ils. he ^iiid : ' Live iinimals . . have heeii reduced to 20 *Sni! 'I'hi T^Tniiii, Lui'lir, thf (!. Mtirmi, fur Mardi 7tli, ISiW. Will, tititi. |i. If). ;:).■) \ict., t'ai'. !•-'. iViid . 15. A'. '/., tlic iM'ovi.sinii fnr liii e\|iiir't duty "ii liiiiilMr jii tin' T;ii'ill' Act ni l.'^'.ll. **Sw HanHiinl l>eliati'> of Mmi-cIi 7tli,' IS?'^. ill "/( (,,ih, p. '20. .', I ri'/' "/■^, p. ;-tl. ^iViiic itiili , ill comparalivt' tiitili' of ('aiiailiim ami Aniciican iliitii'S, p. 15. 53 per cent., wliidi is the lu^i-ccntaye placed upon live uniinals \>y tlio Wilson Bill and thr JUll as einanatiiii,' from the Senate Comiuittee so far its it has j^one/'* The facts that C'atiada and the United Statt s have coinmon trade inter- ests— that the TTnited States stanc's first on (Vmada's ti-ade lists ;t that th(> territories are adjiicent and that one is in a hii,di staije of industrial drvelop- meiit while the "other is less hiddv developed industrially, would lead one to conelude that the Tarill Polic} ..r the llnited States must exert an iini)ort:iut intluenee upon the Taritfof Canada. *namar SlOS.'.ISS.Soti. V. stood sBCond with a trade of §107,385,71«. (Statistical Year Book, 18IW, i.. [m.) Kiipland I