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As it is a question of groat moment to all, the writer hopes that many Canadians will read it throU},'h, and then hand it to their neighbors. The reader may hnd the study of facts and liguros dry, but he is asked to inform iiimself of the contents nevertheless, as on the success or failure of these arguments, and such as these, to induce proper legishition on the subject, depends the prosperity or poverty of his country, and probably of himself. THE COUNTRY EXCLUSIVELY FARMING. Let us consider the state of one country whore farming is the sole business and of another whore manufacturing is also carried on. It is plain that the farming country must be very thinly populated. For its farmers, buying their manufactures abroad, must send farm produce to pay for them — mu.st, as it is called, farm for export. Now, farming thus, they can grow but what will bear long carriage, namely, the hard grains such as wheat, corn, barley, peas and oats ; or cattle, the salted Uesh of which they can send. The distant transport of live cattle is tried, but not with great success. These, with some butter and cheese, comprise the principal dependence of the exporting farmer. To raise these, needs but one or two men to the hundred acres, and, if the country have much cftony, swampy, or poor land, there may be but one or two men to two or three hundred acres. As they will not keep many cattle, there will be little work in feeding in the winter, and men will only be nired for the summer months. One or two cities on the border to act as ports or outlets for their produce and inlets for the manufactures they buy, and a few villages as distributing points through the country inland, will be all they will need. It would be a poor country, as its people will necessarily be widely scattered. Such a people, too, grow poorer, for they must break a natural law. They cannot return manure to the soil. At first, while the land is new, they grow wheat after wheat. The result is well known. The potash and phosphates are drawn from the soil till the best wheat will grow no more. Then poorer kinds are tried, and then barley, with a result shown by Johnson in his notes on North America, thus : " When the wheat fell off, barley, which had at first yielded fifty or sixty bushels, was raised year after year, till the laud fell away from this too, and becaiiR' full of weeds." The country will now grow poorer, until about this stage it needs more manu- factures than it can grow food to pay for. It commences to send year by year less to the manufacturing countries where it buys its manufactures than it brings back of their goods. This is what is known as the balance of trade being against it. What is it to do 1 It finds rich people in the manufacturing lands, and it borrows of them, and pays year by year the balance against it with borrowed money. Finally it sinks into utter weakness, and is conquered by some powerful neighbor. This must be the fate of a farming people depending on the export of farming produce alone. THH FARMING COUNTRY WHICH MANUFACTURES ALSO. Let us now glance at the country which has introduced manufacturing. By the side of its rivers, where the first would have but pasture, this will use the water-power for cotton mills and woollen manufactories, for cutlery, for tool- making, for flax and worsted mills, for all the varied forms of manufacture the water-wheel can aid. Its mines of iron, of copper, of lead, of coal, above which our first described &iends would have had some few sheep grazing among the stoneK, will each be the centre of a number of villap^es, and the source ot material for the workmen of a town. Hero and there, all over the land, will bo largo citioa, where foundries, factories, and workshops have formed the centre to which population has flocked. The farmers here will find themselves in a ditferent ard better positiou than did our first foreigner-depending friends. These will have iiiarkots close at hand. They will save the cost of sending their produce thousands of miles, and of bringing back goods the same distance. They will be able to work their land to aer, felt bats of wool, ' gunii, rifleH piHtoU, unibrellaa and paraMolH S'i There is no possibility of better times if our present course be persisted in, and for this reason. In the States and elsewhere are competitors who can grow and export certain produce cheaper than our farmere can.* This will always keep our farmers down to the lowest point in what little they have to sell abroad. More- over they are deprived of their own market at home, because opposite to them ia the immense tract of the States, commanding theirs by railroad at all points Now, as at one point the States can grow cheaper wheat, at another cheaper com, at another cheaper oats, at others has cheaper manufactures and cheaper coal, it follows that all Canadians are undersold and kept at the lowest prices in their own market. The farmers in Canada are deprived of their natural market — the towns — by the same means. All our manufacturing people are in process of being driven to the States by our foolish regulations, where the States farmers feed them. Ours cannot, for the U. S. tariff prevents. To show the natural number of people who should form a home market: — In the States in 1870 there were engaged in occupations twelve millions of people. Six millions were farmers, a million in trade, two ana a-half millions in professional and per- sonal services, and two and a-half in manufacture. As the States export far more farm products than manufactures, and import a good deal of the latter, it follows that about one-third farmers is, in America, the correct proportion to population, and it will be found that this calculation proves itself both ways, i.e. by comparing numbers, cost of living and amount of products. But in Canada we have actually twice as many farmers as others — and this in a country liable to be undersold in farm produce ! It is plain that, by the absence of towns,manufac- tures, and home markets which of rightbelongtous, — and of which some others in some parts of the world have unfairly our share — our farmers and our whole coHntry are kept poor, our best men le.';ve yearly for the States, and our balance of trade — buying manufactures from foreigners we cannot pay for — is always heavy against us, and our debt more and more each year. Mistaken people whom we carelessly allow to get office here, go round telling us that this is all right. Mr. Mackenzie and Mr. Millh, for instance, tell us that this importing more than we export is merely showing a large profit on our goods. These gen- tlemen must have studied commerce from Robinson Crusoe. It is true that, two centuries ago, when voyages took years, goods, as old records tell, " v/hen well bought in Lond'^r sell at 150 to 200 per cent profit." But noiv let the writer give the general course of Canadian trade. Take the British, our chief trade, and a fair average instance. Whether it be grain, flour, meal, ashes, butter, cheese, or pork, it is bought by a Canadian buyer, y/ho holds it till he gets a telegram from a British buyer in Liverpool, telling him the British buyer will give a certain price, which is to cover freight and exchange. For his trouble the Canadian buyer charges a commission — very low, — from ^ to 2 per cent. This is done with British capital — the actual buyer is British, and he it is who receives any profit the voyage may give the article — i.e., if the price rise before he gets it, and, of course, what more he can get for it after. This is also done in the lumber trade, though commissions are rather larger. So much for what we sell. Now how do we buy 1 Some of our / t What the famierR lose by one-sided tariff arranKements is beyond computation. A lumberer said to the writer, " I used to feed forty teams with oats I raised ; but United States oats enterinjc free, I found I waa loeinK by farming, gave it up, and bought United Statee oats." There is no (arm in Canada but is losing by the United States tariff. As to the hope of lowering it— of reciprocity— it is utter folly. The States cannot, with their obligations— grant reciprocity. Their tariff will not be lowered. But we can heighten ours, and our farmers will make what theirs are making. Who will object?— our cities are the consumers — give their workmen the wages Protection will give them, and not a man of them will ask cheap United States oata, flour, or pork. When did farmers get such poor prices for all produce as since our Free Trade Qovemnient got in T Bgga butter, beef, mutton, are a drug in our cities- our operatives are gone, or are too poor to buy them. Aa for shipping cattle, Ireland tried that long enough with twice our chance. Did it enrich her? wholesale tmdera are merely direct agents of foreign houses. Many more of them work their business on British capitnl represented by goods given them oq long credit, and to that extent are mere agents of British houses also. The reader from this will clearly see that in both buying and selling the ])roHt of the trade with Canada is principally monopolized by Great Britain, and can see the folly of those who go round telling us the balance against us is the protit wo make. Particular instances may vary, but the mass of trade is done tlius. Be- tween the grower of food and the maker of goods are many middlemen, and the more roads and oceans between the more middlemen. By the time the stuff is through the gauntlet it has to run, there is little goods to come to the farmer, little food to come to the workman. The true ren)edy is protection, which slmts out foreign goods, brings the workshup close to the farm, and does away with the need for the army of buyers, agents, and dealers who now stand between. TUK POLICY OF BKITAIN. The policy ol' Britain had never been free trade.* For oentiirieM slie liad pro- tected her industries by very hi^h tariffs. Her i.solated situation, thi' courajje of her sons, their genius and their industry, gave a further prottction. The wars wliieh successively desolated every other scene of European industry but brou^^ht fresh em- ployment to her manufactories. Improvement succeeded improvement, till her prices were far below those of her rivals. Tuey neither did nor could send their goods to her ports. Before what was called free trade was intro76 ; sugar, £5,123,986 ; molasses, £193,646 ; tallow, 206,464 ; tea, £3,978,518 ; tobacco, £3,- 680,164 ; wines, £1,800,128 ; miscellaneous, £2,098.208. The " miscellaneous" was little but raw material. It is plain from this that when Britain, thirty yeais ago, abolished her duties, she had no cause to fear importations. Under the various prDtective inl'ueuces stated above, most of her liome-made productions had become th« cheapest in tlie world. Had it not been so, in a short time the imports from foreign factories would have closed liiosc of Britain. There was no fear of that. The plan of the Enj, lish free traders was as follows : They wished to make England what Venice and Holland had successively been the warehouse and carrier ot the world. To do this, they sacrificed all ti) cheapness. The navigation law.s — which had produced the British sailor— they repealed, and mi.\ed their crews with the half-paid lazzaroni of every foreign port. They could, as stated above, dispense with most duties without fear, and they did so, thus making ingress and egress to their ports unimpeded and free. They knew that, could they make their country the mar- ket-place of the world, in that market-place the agriculturist of every nation, and the raw material of every land, would display their productions, and strive to undersell each other. They thus secured to their workshops the cheapest food, the cheapest material of the world ; and but for Trades' Unions — the confusing spirits which thwart modern Babel-buiKiers — would have had the cheapest labour, for the free trade plan included free trade in workmen as in sailors, and would have, if unchecked, brought labour there from every land U> com- pete and underbid the workmen of the soil. Yot, in sjiite of this, the three great elements, cheap ships, food, and material, made England for twenty years supreme in manufacture. All countries paid her tribute of raw material, and bought it back manufactured at tpiad- nipled prices. To use a rude metaphor, they .sold her the hide for sixpviice and bought back the tail for a shilling. Her free trade league u.sed every effort to maintain their position. They found many advocates ; they were able to pay many, their influence seduced more. British noblemen thought it not incorrect to advocate schemes innately most nefarious, that the infant manufactures of foreign lands migl t be crushed to bring Bri aiii wealth ; and writers of high scientific eminence were not ashamed to allow the j)ul)lication of editions shorn of the passages in which they had formerly advocated protective measures -psissages in the truth of which they still believed. But all has been in vain. Euroi)e, .\sia, and America have alike observed that poverty follows the nations which import manufactures, and have resolved to make their own. ** Great Britain prohibited, on penalty of outlawry, her artiflcers from teaching; their trade abroad, and prohibited the export of tools or engrines used in manufacture, under penalty af flue and iinpriiioniuent t^ shippers, capt&ins and customs ufiicers. She prohibited the uulunies from nianufaclurinijf, by reiiderini; il- l^al the carriage of such Koods from province to province, and by renderiuj^ punishable the working uf ore beyond Its running into pig iron. To this day the old hidden furnaces -the traces of evasion— are found iu the Alleghanies. It is curious to follow her protection of the home production of iron. In 1(579 she imposed lOs. per ton ; in 1716. £2 lOs ; in 1782, £2 IBs ; in 1796, £3 10s ; iu 180S, £4 4s , in 1813, £U !)s. This gave her the complete control of her home market, and the competition therein made her iroii the chea|>et;t In the world, as may be seen by these prices in 1825 :— France, £26 10s ; Sweden, £13 13s ; Belgium, £1U 148 ; Russia, £13 138 ; Germany, £16 14s ; England, £10. England also protected her shipping by the Navi- gation Laws (which first transferred naval supremacy from Holland to Britain). These provided that no goods should land in Britain but from British ships, or ships of the country producing, or ships of the country where shipped. People who talk of Protection injuriug American naval trreatnesu, should remem- ber that the United States protects none but their coasting trade. The foreign is open to the world. Pro- tection {i.e. , a Navigation La^ m ab*TV,) would WQure it to themselves ; but they thinkMt better to .employ foreign nations as carriers. THB RRA1TLT TO BRITAIN. Tbnugli the inniinf.irtnrinf( and carrying trade of MritHin prfw enomonaljr at first and* the frei' triidi' jMili'^j, and is .v«'t vrry large, for her tradp to nation* leiM adranced io know- ledge ia irnnK'nHf, yet it is dmihtfiil whether the resulta to Britain have been really advan- tageoUH. i'oHaeasiiig, heraelf, the moat wealthy, luxurioiia and expeiiaive population, and the chief carryiiig trade in the world, the abiliiy to take a hack cargo, either for home aseor for that trade, HecureR hern nmrket with Boine nntinnn. Her great money-lending influenea heljiH her to influence the tariff ayatem of others. Her armed force has compelled noma nations to do her l)i(iding, and hope of her assistance in war has induced othera commercially to fiiVDur her (us in the case of Napoleon 111). For all theae reasona it has followed, that though other goods mny now be — as many are- cheaper and better than hera, their intro- duction into the iiinrkets Britain sujiplies is a work of time, and thna we often observe that a foreit(n nation can undersell Britain in British cities, but cannot at once take her foreign miirk iidering India contented and prosperoas, aiid Australia and Canada ttie populous and powerful communities they should rightly be. Britain woald lose nothing — she would gain much. What manufacturing power left her shores, weald simply be transferred to her colonies. Now Britain iss;.' ^g, bat the colonies very weak — 1 ndiu through disaffection — CanadH and Australia by size ot territo y and lack of peo^^ile. At any moment Britain may be plunged into war, in which to defend them she must doable her debt, aud sue her merchant marine transferred to neutral fligs, with ruinous results, in 'these days of sharp national competition, to her industries, ft is extrene folly to riak this, merely that wealth and population may chi<^fly remain in the central point. But let turitifs transfer their share oi manufactures to tiie coloniea- -population and wealth will follow, and the great British Empire will soon be strong, popnlous, loyal, and defensible at every point. THE B7FS0T OV PROTEOTIOir ItT THX STATES. As the reader is aware, the Southern States opposed protection. The slaveholder had only slave labour, too rude, dull and spiritless for aught but coarse field work. H'f cared but to grow cotton and tobacco for Britain till his fields were ran out, leave them to weeds, and move to richer soil. He did not wish the North, either, to grow too powerful aad rich by manufacturing, doubting the end when it should grow too strong for the South. Rat the North knew well the road to national wealth, and strove hard for protection Th'? result was alternate periods of low and high tariffs, as North aud South ruled. At last the Soath drew the sword. The North won, and in 1861 established the present high tariffs on manu- factures. The average States tariffs of this century, as stated by the N^. Y. MerthanU Magazine, 1861, are: Date 1821-24. 1324-28. 1828-82. 1882-41. 1841 1848-46. 1846-67. 18S7-60. 1861 AverH;«(lutr.. 84^881 41^ Sli S^ 88 24^ 20i Greatly In«fwas4 The effect of these tariffs in the States has been to bring there the manafaotaree which would else have staid in Europe. The European capitalists fought hard against it. In 1848, when a tariff dii^cussion was expected, English manufacturers obtained a room in the Washington capitol, where they displayed large quantities of goods, ticketed with the pricdi at which they could send them to the States if the tariff were lowered. They lobbied, the^ bribed, they persuaded — they even established their own newspapers to puff their goods. (R might be well to consider n hether we have not such in Canada.) It was all in vain. The Americans, of all people, are commercially wise. The vast commercial, nunufaotoring and farming prosperity which has followed is unprecedeutod. Some of the nsalta willnow be given. -. '^ 8 h IMPORTS. KXPOBTS. IMPORTS. BXPORTS. IMPORTS. BXP0RT8, 1861- 14274,000,000 ^204,000,000 1867- 381,000.000 277,000,000 1873-- 624,000,000 506.000,000 1862- 178.000,000 17i),00u,u00 1868— 344,000,000 209,000,000 1874- 550.000,000 569,000,000 1863- 225,000;000 168,000,000 1869— 406.000,000 275,000,000 1875- 518,000,000 499,000,000 1864— 801,000,000 143,000,000 1870- 419,000,000 370.000,080 1876- 439,000,000 526,000,000 1865- 209,000,000 136,000.000 1871- 505.000,000 428,000.000 1877— 492,000,000 058,000,000 1866— 423,000,000 337,000,000 1872— 610,000,000 428,000,000 In 1861 their production of pig iron was 731,000 tons; by 1874 it had risen to the enoinious quantity of 2,689,000 ton.s, or five times what it had been. Of late it has never sunk to two millions. It must be, remembered that this is not for export. Their protective sypteni secures its use in their own country ; and this vast increase, th?refo"e, shows an equal inc'ca.se in hH their industries, for iron is the base of all. In 1861 they had 31,000 miles of railway ; in 1877, 85,000. It must be noticed that this great addition does not mean lines built — as we in Canada seem to build our principal— to carry our neighbour's goods. The increase of United btates roads means that they have s<> much more of their own pro- duce to transfer. Notwithstanding the over-emigration produced by the vast money infla- tion of the war debt, the How of emigrants to the States continues immense. In 1861 and 1862 they were gi-tting 89,000 yearly ; in 1872-73 it reached nearly half a million yearly ; and even the last year the writer has report of, 1876, 157,000 persons went there (Con- rast this with Canada, In 1876 we paid nearly half-a-million of money to procure 33,000 emigrants, who do not all stay, and in the same year 21,000 Canadians — valuable citizens, many of whom bad been well educated in our schools — went to the United States.) The reader is ]iarticularly asked now to notice the immeii.se increa,se in American trade with other nations since the high protective tariff of 1861, Their imports and exports then and since are as follows : KXPOBTS. , ?204,000,000 I 186 179,00u,u00 186 168,000,000 1.86 143,000,000 187 130,000.000 187 337,000,000 187 It will be seen that before the institution of high protective tarifl's in 1861, the imports were |274,00(),(iOO ; the exitorts $204,1100,000; that is to say, they were buying under their lower tariff more by ^70,000,000 than they were selling, and going i:i debt to that amount . But Protection changed this gradually, till last year the imports were $492,000,000 their exports |658,0(M',O('0, thus showing that not only has their foreign trade nearly trebled under a few years of Protection, but that the enormous sum of $156,000,000 is now on the right side of the ledger instead of $70,000,000 on the wrong— they are selling $156,000,000 worth more than they are buying, all of which, (when it is considered that during that period they endured the most expensive war ever known — a civil war, too, devastating nothing but their own property— and that they have paid off already .seven hundred million dollars of their war debt by heavy taxation) shows an increase of commercial prosperity never before equalled in the history of the world. Now let us glance at the report from the nation mainly affected by this — the nation to whom the States were in " free trade" days the best customer — Britain. As before shown, the States and other nations adopting Protection, are diminishing their purchases of British goods. Britain's exports are consequently le.ss, and her imports are yearly exceeding them to a great extent. Here is how the London (Eng. ) W^or/rf, a fair authority, views the situa- tion : — ■ " The great fact with which we had to deal was that whilethe value of our exjwrts has been diminishing that oi our imports has been increasinpr, and that the excess of imports over exports has grown from £72,000,000 §360,000,000) in 1874 to £142,000,000 (i?710,000,000) in 1877. Malrnia, 81,000 people ; Illinois, l:i:H,iiuO ; Indiana, 76,000 ; Iowa, 47,000; Kansas, 18,000 ; Michigan, 82,000 ; Missouri, 79,000 ; Wisconsin, 68,000 — being 669,000 artisans, giving, as the population of these States then amounted to 10,000,000, or one-fourth of the whole States population — and the whole artizan population of the States being as above 2,223,0' 10 — ^justas many people employed in manufacture in the Western States in proportion to population as in the rest of the Union. ITie western manu- facturing products in 1870 were the vast sum of $857,000,000. It is said that the desire of Protection is to a certain extent stronger in the West than in the East, for the old factories of the East fancy they could stand a tariflF which would kill off some of the Western factories. As much is said of the comparative wages, comfort, and prosperity of the States •nd Canada, it will be well to observe some actual facts. Canadian settlement began in 1606 ; that of the States in 1607. They are now (States' census) 46,000,000 soiUs ; Ca- nada 4,000,000. For fifty years their lowest tariff has been 20 per cent, generally. Ours has been a revenue tariff — a policy of ignorant men, which will be described further >n. In 1870 they had of capital invested in manufactures $2,118,000,000, produeing $4, •2;}-2, 000,000; paying, to 2,223,000 hands as previously mentioned, in that year $800,O00,o00 wages, giv- ing each employee an average of $317. In Canada under our non-protective system we nad $77,000,000 invested, producing $221,000,000, paying 187,<'00 hands $40,000,000— average to each $217. This average of wages is still more in their favour from the fact that we employ far fewer women and children thari they. Their average production was $109 to each in- habitant — ours $63 to each inhabitant. Now let us compare the prosperity of a State which has largely introduced manufacturing — Massachusetts — with our own — ^a State which, too, has to import all its coal, having itselt none. It has 7,800 square miles ; population in 1870, 1,457,000. (Ontario has 107,000 square miles, population 1,620, Oiio ; Quebec 198,000, population 1,191,000, much better average land than theirs.) In 1865 the as- sessed value of their taxable property was $991,000,000 ; by 1874 it was $1,862,000,000, showing average annual increase of $103,000,000, Property exempt $55,000,000. Total returned in 1874, $1,917,000,000, being more than the valuation of all the propi;rty in the Dominion of Canada. When we consider how much land we have to value, how little this State has, the difference shows what a vast amount of wealth manufactures bring in. Under \Uieir Protective system, which some people say is protecting them to death, there was de- posited in the Savings Banks of Massachusetts, at the end of 186^, being earnings and sav- ings of the labouring population, $59,000,000; bv the end of 1874 this had swollen to $217,000,000 ; by that of 1877 to $244,000,000 ; average yearly increase of $14,000,000. Under otir non- protective system, there had been deposited in our Post Office Savings Banks of Canada by June 1874 but $7,210,000; by June 1875 $7,171,000; by June 1876 $7,044,000, showing a decrease here of $166,000, against an increa.se in Massachusetts (same two years) of $26, 000, 000. In 1876, three years after the panic of 1873, the accumulated savings in Canada were decreased by $166,000, and in 1874 (the l«st year reported before) they were decreased by $127,000 ; while at the end of 1877 there has been no decrease since 1873 in Massachusetts, but an increase of $42,000,000. It should be remembered that in Canada, in addition to our Post Office Savings Banks, we have other Saviuijs Banks. These had al- together about five or six million dollars deposited. They likewise show a decrease. In 1876 those of Ontario received $5,604, OOOon deposit, and paid out $6,506,000. To sum up, we have about $13,000,000 deposited, and are decreasini^ it ; they have about $240,000,000, and are rapidly increasing it. With half our population, they are saving twenty times as much. "The reader is asked to observe how this verifies the opening statements. In 1877 over 2,600,000 of the U. S. labouring population hati deposited in Sa^iags Banks $1,377,000,000. Under Protection their 80,OW miles of railways yielded in 1876 a dividend of 3 cents 4 mills per cent, upon the whole capital stock and indebtedness. The dividends were in 1876 $.3,500,000 greater than in 1872, and $11,500,000 greater than in 1871. Under our system no railway in Canada has ever paid auy interest to government, ordinary shareholders, or municipalities. The United States has iestveued its public debt an average of $60,000,000 per annum since the civil^jjb; we have not lessened, bat mooh increased ours. A comparison will now be made of|PH|Dlinirarcial doings ot the two coun- tries. In 1877 the U. S. trailers numbered '652,0007,|P8« of Canada 56,000— in each cass 10 about one in seventy of the people. In 1877 the number of failures in the States was 8,872, or one in every 73 traders ; in Canada it was 1892, or one in every 30 traders, t The same average lias existed for the past five years. Their total amount of lo.«8es by failure, propor- tionally to population, has also been much less than ours. The reader is asked to consider whether, in view of all the facts stated, it is not ]i!ain that the States owe their prosperity simply to their determination to import nothing which they can make. WHAT CANADA IMPORTS, WHICH SHE MIGHT PROFITABLY MAKE. It is known that Canada jiossesses great manufacturing abilities. It has in the Maritime Provinces to the east, fields of bituminous coal (the kind used for manufiu'turing) sufficient to supply the world for centuries ; has large fields in British Coluiiibia, and .still larger ones in the Saskatchewan. It has silver, copper, iron, and lead deposits superiDr in many respects to what can be found elsewhere. Its immense water-communication gives it the power of landing coal cheaply at anj' point. It ha.>* a command of the cheapest force known — water power — which is unequalled elsewhere. It has a people so willing to work at such industries, that many thousands of them go yearly to the States, nor is this thiit there is no market here for goods, for the articles we yearly buy show a very large market indeed ; and it is very jilain that if the peojile who make them were here there would be a much large, market. Of these articles we have lately imported in the way of iron, the vast sum of sixteen millions of dollars worth yearly. Now the iron in our mines is the best in the world ; large orders are sent to us for ore from Pennsylvania, where they have plenty, but none so good. The Swedes at the Philadelphia exhibition owned it better than theirs. We now sell the ore to the States, and they sell it back to us, made into hardware, at a high profitr The writer, who has had much experience in the various farming and otlier industrial arts of Canada, has no doubt that if Canadian iron were used where foreign now is, one-third would be added in wear. American boiler iron, as he is assured by 'i'oronto experts, is superior to Lowmoor. Pennsylvania rails, as letters deposited with him show, test, price for price, better than British. But the fact ifiteresting to Canadians is that over many thousand miles of Canada lie untouched deposits of iron, better than either nation owns. Canada has imported of hardware, cutlery, tools, nails, castings, stoves, engines, machinery, frames, axles, railway work, steel, and tubing, in 73-4-5-'', an average of close on sixteen millions of dollars yearly, counting only such articles as might well be made here. Much of this is our own ore, bought by the United States at $2 per ton, and sold back to us at something more like $2,00(t, to the amusement of our acute neighbours, whose very drummers laugh at us for not doing the paying work ourselves. Of cotton goods we have lately imported a})out ten millions of dollars worth in some years, and of woollens twelve millions of dollars worth, — clotli.s, tweeds, white and unbleached goods, carpets, flannels, merinoes, paramattas, lustres, ginghams, jeans, — and all the innumerable list of textiles the sheej) and the cotton-iield give to man. Cotton can be laid down in Canada as cheaply as in Britain. As for wool, we liave vast sectiims of country which can never be i)rofitable grain farms, but which under mixed husbandry, largely devoted to sheep, will yield excellent returns, and give, both for home use and export, a vast suj)ply, which, of course, for the finer manufactures, needs the mixture of foreign wool. This can be readily imported. No country, it must be remembered, can depend on the home growth of wool ex- clusively for her manufactures. Britain imports most of what she uses. Of linens, silks, and velvets, we have in years past taken four millions' worth ; of glassware a million, of ready-made clothing a million, of manufactured leather a million, of manufactured furs half a million, o<' wooden ware half a million, paper and j)aper-hangings tluee-cpiartera of a million, hats and caps a million, hosiery half a million, flax aud cordage a million, fancy goods two millions, clocks, watches, carriages half a million, sugar five millions, and la vast number of other articles of manufacture, V\ hen it is remembered what sort of a country we inhabit — its numerous water-powers — its possession of, or facilities for obtaining raw materials — when it is remembered that the States are making these icnic articles with great success — it is perfectly plain that, with proper jtrotecticm, they could well be made here. It must be remembered that last year's figures show a falling oH" in these imports — the result ot Mr. Cartwright's great error. Ignorant of commercial history, and unaware that the oj)])osite i fleet had always occurred, he supposed the country of lowest taiifls would become the most prosjjerous, and import most goods. The reverse took place, of course, — repeated deficits marked his budgets, and if our "free trade" continue, Canada will become yearly less and less able to purchase at all. In this connection it may be well to show how much we have lately imported, and how greatly the balance of trade has been against us: — EXPORTS AND IMPORTS, DOMINION OF CANADA. BXPOKTB. IMPORTS. 1868 167,000,000 | 73,000.000 1869 60,000,000 70 000,000 1870 73,000,000 74,000,000 1871 74,000,000 96,000,000 1872 82,000,000 111,000,000 EXPORTS. 1873 189,000,000 1874 89,000,000 1875 77,000,000 1876 80,000,000 1877 76,000,000 IMPORTS. 1128 000,000 128 000,000 123,01)0,000 93,000,000 99,000,000 Authoritius consulted for above,— United States ceiisus 1870-71, States census 1876, Niles* Reizlster, United fitatee Acts, Appleton'a Cycloptudla 1875-6, State ContniUer's Annual Reports, Canada Fiiblic Accounts, United States Railway Magazine, Brydges R.R. Report, to Canadian Ooveniment, Keports of Nova Scotia Board of Trade, and Secretary of Treasury, Canadian Cuntoms aud Eoard of Trade, Dun k Wiinan's, Dun h Barlow's Commercial Agency Mid Brokers, United States Commercial Agency, Census of Canada, United 8Ute« Bureau of Statistics 11 We Me, it will be seen, 1236,000,000 behind in ten years — we have bought that mach more than we have sold. We have, of course, had no other way of paying this sum than by exports. We have not paid it. We have gone in debt for it, as it will be remembered in the opening reniarkH, it was shown that the country depending on others for her manufac- tures must do. All through Canada the progress of the system may be seen. Th* Government borrows in London yearly. Our local Government borrows there. Private individuals borrow from the loan companies which fill our land, which in tarn borrow from Britain. And both from Governments and indivi)wing from abroad would cease ; and aa in the States to-day, the balance of trade would soon turn to the right, instead of the w ong side of our ledger. Some statements, which have been carefully calculated, will now he presented to show the number of people who miglit reasonably he expected to come and carry on their trades in Canada, if a tariflf sufficiently high to [Jievi-nt them sending their productions here from where they now are, be adopted. In the first place the reader will be askcil to remember that manufactures occupy far more people than those engaged merely in the last process. Before the shoemaker can make a shoe, or the joiner a box, a great number of people must have been employed in getting all ready, viz., the leather, the wood, the iiiiils, the thread, the lock and hinges, the handles, the pegs, the various tools, the workshops, the houaes for the two operatives. These are merely what were used for the final operation of what is called nuiking the box and the shoe, but this is only the last operation of many. Think of the number of mines, forges, furnaces, factories, the long succession of workshops neces- sary before the joiner and shoemaker could even begin. It is thus that one manufacture tends to bring many ; and wealth multiplies upon wealtli. So well is this lieginninj^to be under- stood that, Tor the last hundred and fifty years, the civilized nations of the world may be said to have been playing a game with eacli other on a sort of universal i-hecker-board, endeavouring by rules of the game called tariffs to capture and bring within their own borders as many valuable pieces, called maniif ictures, as possible. Agriculture goes every- where. Manufactures only where they are drawn by encour.igenient, because if they be not drawn so to you, the attraction created by some one else, plenty of whom are always busy at it, will draw them from you. The reader will now be asked to follow a few computations, to show the amount of goods which we now import, but might make here. Of the imports stated above, therS is no reasonable doubt, as the author is well assured by practical men in the various branches, we could manufacture $60,000,000 worth. There are some things which cannot be made here as well as in Kurope; there are Irish rivers which prepare flax for linen without chemi- cals, and the moist English climate permits the operative to make the finest cotton thread, which would snaj) if tried in our dry air. But these are few. The calculation is based on the fact that frequently of late we have imported into Canada $60,000,000 yearly of the same kind of goods as are successfully made by our neighbours across the Ijorders whose facilities are no greater than ours. Now, we will enquire what number of people the making of these f[oods hire would bring to reside in Canada. According to the most reliable statistics, the abour of an operative in Britain produces $800 yearly ; in Canada, $1,200 ; in the States, $2,000 ; taking the average of these, or $1,300, it will 'be found that our $6O,0U0,O(iO of im ■ ports,if made here, would occupy 46,000 operatives. But the reader is particularly asked to notice that a vast number of persons are supported by manufactures, in addition to the operatives who turn out the finished fabrics. Some idea of this was given in the cases of the carpenter and shoemaker. The writer will give an example of this from the largest manufacturing business of Britain, the cotton trade, some quotations from which he gave in a Toronto daily last year, but as great errors have been coniinittcd in their repetition since, at Ottawa and elsewhere, he will now give the full statistics. There were employed in 1871, 449,00§ persons. The cost of machinery was $277,000,000, with ;\ floating capital of $150,()0o,000, and there were 4,500,000 persons in all its branches dependent on its prosperity for their livelihood. They i.roduced yarn in 1872 worth $81,000,000 ; calicoes, $286,000,000 ; lace, tc, |21,00o,000 ; total, $383,000,000. The number ol persons dependent are differentlr stated by various authors, but the 4,500,000 now given coincides with most of them, ano is taken from the very exhaustive consular and other reports .sent from Manchester to the Washington Bureau. Taking this as our base, the $GO,0(tO,000 we now import shows that we now support 460,000 people in foreign lands maimfacturing for us.t Let us consider the advantages to our farmera of bringing these to i eside in Canada. From calculations based on returns from one hundred manufacturing towns in the States, it is found the consumption of farm produce for adults and children averages $1 per head weekly. In Canada it is from several returns much the .same. The 460,000 people we tThwe art! roiu.d (l^'ures. but in the main tolerably uucurate. Had buHinew cuntinueii good, the** Impor- Uktionti would have been none too much for us. Say ;j«iO, 000,000— wo nhould have needed it all. But cuppooe wo made it— ihen the half inilliun people needed here tu make it would make near $70,000,000 needed. Thece would need one-ei|fhth more farmers to utow food— now there would be $80,000 000 neeiled. Then tu make $80,0ou,U0O manufaoturod we would need 000,000 people inatead of half-a-milllon -these more fermeni a^ain. Thin Is the arithmetical progreiwion we ought to ii»v« grown in . bni we have worked U »i'kw«rdn— we have '• rt!ver>ed tiie wund." 12 employ elRcwhere would, then, if employed here, give our farmers a market to the extent of $'23,OH0,0{K) jier annum. It is requested that farmers observe that this is as much as or more than t\\f whole amount the Dominion exports of farm produce. Last year we exported $34,- 0()O,0(»0, and imported $20,000,000, leaving the true exports only $14,000,000. The year before we exported $40,000,000, and imported $17,000,000, leaving the true export $23,000,000. THE LCMBEB TRADB. In considering the enormous impetus that this inflow of manufacture would give to Ca- nadian business, it should be stated, with reference to one of our principal industries — the lumber business, which has for years back figured to a large amount in our exports, that the growth of that trade of latp years was very much occasioned by the necessities of the States. During their war they needed much lumber to help the work of destruction ; at its close they needed an immense quantity for repairs and replacements. I'rotection also gave them the n;?ed for a vast number of mills, factories, and so on ; and the influx of people stated above rendered millions of new houses necessary. For all this they drew heavily on Canada for supply. This is now over; they have repaired the war damages: they have mills sufficient, with the aid of their own lumber, to last for years. There is no hope for an im- provement in the British market, as it takes from us now as much as or more than it ever did. The following sliows the amount we have exported of late \ cars : 1868 $18000.000 1869 19,00e,000 1370 20,000.000 1871 $22,000,000 1872 23,000,000 1873 28,000,000 1874 $26,000,000 1875 24,000,006 1876 20,000,000 1877 23,000,000 1873 was the year of the largest sales. We sold then to Britain $13,000,000, and to the States !i] 2,000,000. Then the States demand fell off. Next year we sold them but $9,000,- 000 and to Britain $14,000,000 ; the year after $6,000,000 and to Britain $16,000,000, Last year hardly a million dollars worth out of $23,000,000, sold mostly to Britain. An additional reason why the States no longer buy of us is that the multiplication of railroads to the West, and consequent competition for fieights, has so lowered these that the U. S. lake ports are filled with lumber from Michi^'an chiaper than we can send stuff there, and pay $2 duty. But one thing is plain, neither the States nor British demand is likaly to improve the trade. The following seem to have given its chief value to the trade: 1. The ability to sell in the States lumber unfit for the British trade, thus using two partsof the timber. 2, The ability to sell in Canada lumber unfit for either, thus using the rest of the timber. Every lumber dealer reniemGers that during our "good times " he could sell all his common stuff at $5 — very poor much of it, but fit for many pui jxtses. Now he may sell a little at $2.50 or $3, but most of it is left to rot. 3. The large home demand in Canada for lumber before the depression — «. «., while our manufacturers were yet at work. And la.stly, but not a small item, we have not now first-class timber standing so near to the front to sell them, nor, by late official reports, ▼ery much anywhere else. The writer will now point out when a valuable impetus — valuable to Canada in many ways — may be expected in the lumber traffic. If, by a protective tariff, we bring those half million operatives we emjiloy elsewhere to this country, who make the $60,000,000 manufactures we import, consider what would accompany them. The floating capital required to run their busine.s8 would be, as computed, $30,000,000, besides whicE the first cost of buililiin,'s and machinery would be equal to one year's output, or $60,000,- 000. Of this, considering that wood in our inland towns would precede brick, at leut $20,000,000 would go to buying lumber There would be a hundred thousand houseJi^ largely of wood, required for the operation.s, needing about $16,000,000 worth of lumber. The gennal f'arniinjr prosperity which would follow the opening of near and thriving markets for all purposes, the number of additional farm hands and farm houses required, the additional trading, professional, and other population which always accompany prosperous changes, would swell the amount, beyond any doubt whatever, to at least $50,000,000 worth of lumber required as soon as Canada chooses to do what she should have done long ago— adopt Protective measures. It is not supposed this would all occur at once — the change would be gradual, but every day for the better. It must likewise be remembered that even this large amount would be but the beginning of the demand. Our back country, much of it altogether unfit for export farming, can support an immense home population. Colonies of farniei-s and fresh manufacturing establishments would continually push ont into the still unsettled regions, as they have in the United States. The increase of population, native and foreign, would be continual, and the demand for houses, factories, and mills, necessarily constant. Our forests, which have been wasted with a recklessness and rapacity, both on the part of legislators and lumbermen, which the writer cAuuot too strongly cob- demn, would, it is to be hoped, be better managed. He has seen fifty young trees cut down to get out one pine — and of that one pine half was wasted, there being no mar- ket for the remainder. Enough has now been said to prove thoroughly that Protective tariffs are our only chance of a prosperous lumber trade, one in which the demand would be constant and large, the business profitable, from all the timber being saleable, and above all profitable to the country, for the riches made would stay in the land, and continually increase the prosperity of every farmer and mechanic therein. THE ADVANTAQB OF PROTBOTIOIi TO VILLAOBS, TOWNS, AND OITIIS. To commence, there would be many more of them. As stated at first, the people whe farm exclusively need very few cities, as in the case of th« Southern Statea. When thef 13 mannfantnre, they build many, as in the Nortli. There are few conntrie^ so well provided with water-power u.s onr '>\vn, and it hns, also, the fjreat atlvaiitnj^i' of a long lake and river line, at every point ot which eotil-schooners may leave cnrtjocs. If the country adopt Protection, capitalists will at once come here from the States and Britain, secure the best points in country and city, and commence operations. Numerous villages will at once spring into existence. Towns and cities will double their size. There will he many years ot constant work for all artificers in building, and in making machinery, and ninny thousands of people will find employment in addition to the actual operatives. It is sometimes said by men who have not considered the mattroducc rai>ed on a forpign soil, worked up and manufactured into goods, tlien .sent here for sale. Th's may .seem strange, but is strictly true. 1 def.v contradiction, I challenge investigation. Let gentlemen disposed to contest it select an article of foreign goods— a yard of cloth, a ton of iron, .-i hat, a coat, a pair of shots, anytliiM(j; from a needle to an anchor, examine its constituent )>arts, the raw material, the clothing and subsistence of the labour employed in its manufacture, and it would be discovered that more ilian half, often three-fourths of the whole price, is made up of agricultural i)roduce. I have a,scertuined the fact from m,Y own t)ooks, kept at a furnace, that more than tliree-fourtbs of the |)ricc of every ton of iron sold, was paid to tlie neighbour- ing farmers for their domestic (foods, their meat and flour that cirtthed and fed my hands, for their hay, corn and oats, that sustained my horses, mules and oxen cln|)lo.^ ed about my w orks. Was this system hurtful to agriculture ? Look at the neighliouring irori works of Mount Savage, built up within a few years; the land was bought for two dollais an acre, it is now from twenty to a hundred ; it employs foui or iive thousand men. The high i)rice of neighbouring farms, shows the effect of giving the farmers a market. Manufacturing establishments multiply the value of farms in their vicinity often ten, twenty- and sometimes of mineral lands a hundred fold. Let three or four more such establishments go up in that vicinity, and you would have a demand for three or four times as many hands, and for all sorts of agricultural i)roduce in the same proportion. No American interest is so much benefited by a protective tariff as that of agriculture. To show the effect upon currency as will as agriculture, su))pose the gentle- man from Virginia wants a new coat, he goes to a jjritisli importer anil pays him twenty dollars. Away it goes in quick time. We see no more of it, and as far as circulation is concerned, he gentleman might aW OUTY POLICy. 1847 t 28,747,8«4.M 1848 Sl,7fi7,070.96 !H4it 28.34«,738.82 ISftO 3{),««8.H80.42 ls51 40,017,.1«7.92 iHS'i 47,3;in,;v20.e2 \bM 68,981,806.62 lSr>4 64,224,100.27 lt>.')5 53,0->,'i.794.21 l,S,->6 64 0-22,805.60 1867 63,876,906.06 1868 41,789,020.98 1859 49,5.'i0,416 04 1860 63,187.511.87 lh61 89,582,126.04 nrTKIIK YIAH8 UMDBH VUK HISU OUTY FULICT. 1862 9 49,066,897.«l 1863 09,039,642 4« 1864 102.816,162.»» 1806 84,928,260.00 1806 179,040,«61..8 1867 176,417,810.88 1808 164,464,599.6« 1869 180.048,426.68 1870 . 194,638,374.44 1871 206,270,408 06 1872 21«.370,28«.77 1873 188,089,522.70 1874 1(13,103,833.69 1875 ir)7. 167,722.36 1876 148,071,984.61 Total 1708,007.648.46 Total $2,27'^ .950,074.87 Under high iluties the revenue was three times wliat it had been under lower. We have 'iHcn toll! in ('iinada again and again that this could not be -that protection cannot help but exclude goods — that it' it excludes it will leave nothing to pay duty — no n venue, — that then direct taxation will be nece.ssary. Every reader know.s tiiis to have been declared — it hn.s been prDclainied everywhere by the papers in the importers' interest, and those who am weak enough to believe them. The above are the facts ; there is no doubt about them — under protection a country imports three times as much. People will ask how this is — liow excluding goods seems to bring more in. The answer is the simple truth : Protection never yet failed to make business brisk and people prosperous — they are thus enabled to buy, and they do buy a gieat deal more. The writer challenges any free trader to read the above undoubtetl tiijures, and put any other construction on their meaning. The reason is a very simple one, founded on a principle which seems to be innate in the liuman composition, — tlir ))rineiple that our wants increase with our riches. Many can remember that when p()orer many articles, now seeming necessary to existence, had not even u place in their thoughts, so it is with ])rotectioii tariffs. When properly managed, they have ever created prosperity — have given employiiii I to the idle, money to the poor, riches to indigent communities. With riches new wants have arisen, and a thousand fresh articles are imported — in every case where it has been tried increasing the revenue — -ju.st as, by an opposite course.our Finance >'iuister has every succesaive year decreased ours. ■^ THE M1LLI^Q AND WHEAT INTEREST. As above shown, Canada produces — thanks to the free trade export farming sy.steni, which bu.-), under the kind advice of foreign traders, injured much of our good wheat land, so mat in many places where wo got forty bushels per acre (and with proper rotation could have got it to the end of time) of good Soules wheat, our laud scratching has left us in case, but to get fifteen or so of some variety not at all its equal — well, Canada pro- duces little more than wheat enough for herself. Now, we allow free entrance to the American farmers' wheat. Th* result is that when there is a high price for wheat along our frontier he sends his in. Ours is often not brought to the front, as any farmer knows — it is mo.st ol it ill the granaries, waiting for a fair pri3e. When it is sent down, the Yankee wheat is pouring in also. Then ours, a harder wheat, must go to Britain, and wait four months for a return, while the U. S. man gets the cash at once. As for our getting a better price by sending it to Britain, there is no doubt whatever but that if we had our own market to ourselves, we would get a still better for it here, and our townsmen would be glad to pay, under protection, a better price — first, they would get a much better wheat for their money — next, that they would have good times and be able to raise the money. From cr dozen Hollow casting^a per pound Flat iron " Anvils •■ Nails, Richmond make Saeic Halt rani^ed frotu Ootton Osnabur^hh per yard 8-4 Brown ShirtiiiRH " 4-4 " " " 64 " " " Domestic Priuts 9 85 70 00 90 116 18 1841. ♦70 57 77 81 U 1813. to«76 40 7 12} to 5 to 1.90 to 8 to «i to &i to 11 to 12ito Soto hfsio 't '.» to 3i to 2.26 1 00 to 10 (!| to 8i 4; to 11 to 14i H), to 18 hi to 3iu 4 14 4 j5 14 4 1.05 0; 12 Wood-screws quality to Spades and shovels were 20 ))er cent, and cross-cut saws 124 P«i" cent less. (they too, prohibited by duty) were 20 per cent lower and of a superior those formerly imported. During the year I84U large quantities of Engli.sh j tints vcmh imported that cost from 22 cents to 28 cents per yard. In 184;{ under.the liigh tariflT, prints of as good quality were produced in the States as low as 15 cents per yard, entirely exclu'tiii!,' the former from the market. Irish linens were in 1841 duty free. In 1843, with a duty «>f 26 per cent, they were 20 per cent lower than in 1841. English and French cloths and eassimeres, paying a duty of 38 per cent in 1842 and of 40 per cent in ]«43, had fallen not less than 20 per cent. The reader is asked to observe what took place in bullion. The importations of gold and silver for 1843 were $23,000,000. For the two preceding years they summed up to but $9,000,000. This always takes place under Protection. Under Free Trade the gold current flows, aa stated in opening chapters, to the manufacturing laud. Another American writer publishes, corroborative tables to above, and siiys of another period. "In Vermont, before Protection, i.e., iu 1820 to 1825, a day's labour would not furchase one-half as much cloth, sugar, or store goods generally, as it will now, (1871.)" n flannels, blankets, delaines, aud cloths, a long list is given, all at lower prices in 1809 than 1859 — 1861, having been the year which high tarilfs were last imposed. " The prices," he says, "of home manufactures, estimated in labour or farm products, tend steadily down- wards. A hundred bushels of wheat or corn, a ton of beef or pork, a load of ap[iles or potatoes, will buy far more iron, or cloth, or hardware, than they would iu any anti- Protective era of our country." Another well-known instance of Protection cheapening manufactures is the beet sugar industry in France. For many years its manufacture was declared impossible as a paying speculation, but it was resolved to try what Protection would do, and a duty of 8 cents per pound was imposed, which iu 1810 made raw sugur 12 cents per pound. But the manufacture now paying, many went into it, and the competition lowered the price till it was 6 cents. By 1887 it was so low that the country could afforl to lay an excise tax on the manufacture, still protecting it from without. Since 1860 no foreign sugar has been able to compete with it in France, and it is now sent in large quanti ties to England — in fact has shut up most of the English factories. Germany and Russia have also protected this industry, and in 1868 there were 3,173 factories making it in I'urope. But the thing to be noticed is that without Protection all these countries woultl still ba"e been paying high prices for sugar grown in America, and i)robably refined in Britain, /an- other is a Canadian instance— that of salt. When our salt wells were di.sc«vered, uear Goderich, (in unsuccessful boring for oil) the United States salt, a.i( all will remember, was sold all through Canada, at prices much higher than we now jiay. Hea ng of our discovery the United States makers instantly commenced telling salt at less thau it cost them, to crusli out our wells, intending, as soon as this was done, to sell at the old jtrin-s, which would have kept salt as dear now as it was before we knew we could make it. Tlieir capital wa.«« too large for us to compete with — our factories were closing. But wc- iietitiouetl Parliament 18 and a heavy duty was imposed, shutting out the United States salt. Then many went into the business here, and salt is now cheaper than over — we even send it to the Statea. Another instance is tlie Canadian boot and shoe trade. All old resi.ients remember well that these were higiier before we put on duties. Tariffs were imfiosed, many lactories were established, and m) one can deny that they are made cheaper with the tarid' than they were before. To quot** again from the United States debates (it is well to know tlu-ir reasons, for they are ours) Mr. Stewart said : The pfreat and Icadingf objection to the protective policy is that the dutieo are added to the price, and paid by the conBumer. If thiM l)c unfounded, then op|ioHition would cease. Now, how is tlie fact? What sayi experience? All ex|)erlencc proves that this objection had no existence save in the imaKination of Ihoso who made it. Now, sir, I lay it down as a general proposition, that there never was a hijfli protective dutv itnuosed upon any article, from the foundation of the government to the present day, the price of which article has not been in the end reduced — greatly reduced— in many instance to one-half, one-third or even one-fourth of what it had been Vicfore these protective duties were imposed. This may seem to be a Btron); dtcloration ; hut I iijake It with a full conviction of Its truth. I challenge to disprove it. I defy them to jwint out a single instance to the contrary. Let them examine, and they will liinl that whenever the duties have been the higliest the priceshave ultimately come down the lowest ; and for a very obvioua reason ; high duties promote competition, and competition never fails to bring down the prices. Duties levied on articles we cannot produce (rcve »iue tariff style) increase prices ; duties levied on what we can f)roduce always in the end diminish prices. The truth of both is proved ijy both by all experience. The mmvdiate effect of a high duty for the moment may increase the price and proflt of its manufacture ; but this very increase induces capital to rush in, and tlic competition and increased sujiply bring down prices to the very lowest rates. As thf gentlemen opposite had asserted that duties raised prices, they were bound to prove the truth of their ])ropositlon by stating fact«. The man who asserted a thing to be a fact wa« lK)und to iirove it. Mr. S. challenged any gentleman to put his finger tn one solitary case where thi» assertion wiis true— where one protected article— the product of American sliill .ind industry, had been per- manently raised in price, after duties however high had been imposed for its protection. Mr. S. had challenged gentlemen, one and all, to point out a single article- a itin or a needle-- the price of which had been inciea.sed after the imposition of a protective duty. He had called on tln'm at the commencement of the session to liunt up some article. Nearly six months had elapsed, \et they had failed to find one ; and he now called on gentlemen to |v>int out one if they could. He heard no answer. No article could be found. The duty on coarse cottons had been increased 12.'5 per cent, tlie price had fallen from '26cts. to Beta, per yard, and instead of importing the article we export millions of dollars worth of it. On many grades o( wollens the duty had been increased 100 per cent, and the price had fallen to less than one-half its former amount. Tiie duty on window-glass had ncen increased 100 per cent , the price had fallen from 914 to 94 a box. Yet we are told that the duty is added to tlie price. The duty on cal co is 8Jc. , and we are told that the man who l)uys it at its present price, (jc. , pays the SJc. duty out of the (ic. ! This is but a few out of a cataU>gue Mr. S. held in his hand. In another speech he de.scribe.s-what Canadians would do well to con- sider- a former depression in the States produced as ours has been here. He said : " After the restoration of peace, in 1810, the duties were rediiced one-half, except on a few articles. The country was inundated witn foreign goods ; our manufacturing establishments were destroyed, and the imports became so excessive that the balance of trade against us rose in two years to the enormous sum of 18111,000,000, bringing in its train the desolating scenes of 1818, 181i> and 18'20." After the taritt wa.f re-enacted and heightened, pros- perity returned, and he quotes this :— " He begged leave to mention a single fact, stated by a highly respec- table merchant and manufacturer, then present ; ' Before the manufacture of cottons succeeded here, he sold them to farmers at 40c. per yard and bought the butter at 10c. per pound. Now he sold them better cottons he made himself, for 10c. and gave 20c. for butter.' " Canadian farmers are aslied to observe, that iti our own case, they never got as little for their beef, butter or eggs as since our government have driven many of our manufacturers from Canada. No wonder. People in Canadian cities cannot buy as when they got employment. " Protection," says Carey, " made cottons so cheap in England that her makers drove those of India, who had the world's market not only out of it, but out of their own. Protection to the woollen manufacture made woollens so cheap in England as to forbid conij) etition in tlie distant markets of Russia and Germany, where the wool itself was grown. Protection to the iron had enabled the Bricish lo monopolize almost the iron manufacture of tlit world. Protection to British farmers (i.e. briniiing manufactures therp) had ren- dered them entirely independent of foreign markets, and made them able to buy more with the crop of an acre than could the Russian or German farmer with a dozen. Foreign nations saw thif, and adopted proter- tiou themselves. SEU, IN THE DEARE.ST ; BUY IN THE CHEAPEST MARKET. It is a trick of the trader, which his agents here repeat continually, to tell Canadian farmers that they are doing thi.s, which sounds very well. But the farmer is now asked, — Where do you sell and where do you buy ? Is it not always in your own market ? It is. Tlie farmer may try distant buying, but it never continues a succe.ss for this reason — he cannot go there and stay long enough to buy profitably. As for selling, it never answers. The wiiter, when he hajjpened to grow a large crop of wheat, has loaded cars and sent them to a distance, but found he had better have sold at home. Both in buying and selling, the farmer must sell to the tiader. This little volume cannot spare space to explain his opera- tions. Wherever you find him, he is one of a vast corporation who overspruad sea and land which buys all the farm produce and all the manufactures and sells them again, making the farmers of Russia, India and Calilbruia underbid each other in cheap selling of produce to the trader. Cheap selling means simply to take from him in return less manufactures. And this is steadily done, and to it many a Canadian farmer who has drawn enough from the soil to enrich himself thrice over, owes iiis stiffened limbs and his still narrow means. There is but one remedy — keep foreign work out — make it ar, home. People ask how can the workman make $5 out of the farmer, and the farmer $5 out of the workman ? Nothing is more simple, if they pay to each other in future the surplus they now pay a crowd of people — who in ref;ard of production are but drones — and who now stand between them. In this connection some very foolish pic-nic speeches may be noticed — it is no matter who by — in fact it is charity not to mention the speakers. They told the farmers : — True, we imported a good deal of oats, corn, peas, wheat, flour, etc., which competed with yours. But you know you bought it and sold it at a profit ! Now, every farmer knew well that A« did nothing of the sort. Thew articles simply leave a very small commission in any Canadian hands when pa.s8ing through. The diflference between the Chicago price and the Jjiverpool price the rail- 19 roads and ships toke, and if these ahould make a dividend, it f^oes to the British shareholder All that is Itjft here lu'sidi'H is i\ littlt! iu want's, paid to einployws who under I'rot«'ction would lind much mort' prolitahlf tVci^rht to curry. The produce bougiit and consumetl here yields a profit, of course ; but to the U. H. fiiriiicr, not to ours. ADAM SMITIl'.S I.N«;Al'AnM,ITY. Many ])eople, who have read him, and .some who never have, pin their faith tothis^entle- mnn's siiyinj.;.s. He was a learned man, and a fairly acute rciisoner. IJut his chief weakness —Ills utter incapacity for ^'uiding us in trade — is this : He knev,' nothing about it. A child of ten years now knows more of to-day's trading system than he couhi. Here is his leading icscriiition : "A broiid-whoclod wajfon, attended 'ly two men and drawn !)>■ t\%\\\, horncn, in about six weeks' time carries p,nd l)rin;;.sl)acl\ l)'.'twcL>ii London a d K linl)nru'l) near four tons of ((oods. In tl)u ^an1u liinu a Nhip navi|;ated by Kix or oi^ht men. earries and l>rin)(s liack l)etwuen London and Kdinlxir;;)! '200 tons of ^oodn. Tberefore by land carriage, two liundre(l ton.-t would take ilie liihour and wear ind tear of .50 watfons, lOO men and 400 hontes for throe weekH. .jy water only .six orci({lii men and tlio wo.ir and tear of a small ship." TJiis is Ills weak jioiut — he knew nothing of a railway and therefore argued miic!i to show the advantages of foreign ti'ade — i.e., slii|iping trade. His idea of honu) trade was very narrow — close to a town or two. Hut had he known the valuable ])0.ssibilities of inland trade as developed by railways— tlie thousand profitable interchanges it renders possible, he would have written very differently. As it is he writes in tlie dark, so far as our age is con- cerned, and grown people should know better than to quote him on such subjects. THK MAIMTIMK I'UOVINCEH. It is pitiful to hear the statements made with reference to these. They are far better sitiuvt"d for manufacture than Massachu.setta, being much nearer to tide-water, and having coal in any amount, while the other has none. Tliey have the best harbours in the world! When Massachu.setts began to manufacture largely, the States had but two millions ; we have four. The Maritime Provinces' population i.s so ai)t at manufacture that yearly large numbers leave there for the U. S. factories. Yet we are told that they wish to remain merely a poor fishing colony, and fear a tariff which would raise flour \ cent per pound ! The fact is, as the writer is given to understand by residents, they are very willing, as a rule, to adopt protection, provided their bituminous coal has the Ontario market. This coal is used for factory purposes chiefly. The consumption is exclusively in cities and towns. The writer is certain that there is not in Ontario one city or town that would object to this coal tariff, under a general system of protection ; and this article alone would return to the Maritime Provinces twenty times what they would pay on flour. Hut what they would principally gain by would be the rapid iucrea.se of workshops am( n? th-im. Tlieir population in sliop and in field would double in five years — their wealth qiiadi ic in the same time. THE .SUGAR AND TKA TIIADES. Our government, in their free trade plan, have thought it wisei tliat we should buy otir tea and sugar in the States. Once we could import the first dir ct from China, and the other raw from the West Indies, refining it here. A slight cliin<;e in the tariff would allow us to do so still, but it was not granted, and the resul is we can no longer import tea direct ; our Canada refineries are closed, and we import In.n tea and sugar from the States. From this it follows that as we cannot take a back car^o, we cannot send gooils profit- ably to the West indies, or to Australia on the route tj China. The end is that we have lost the tea trade and the refineries here ; it is d nibtlul whether we got sugar cheaper, it is certain we get worse tea, as the U. S. dealer send ■ us the poorer and keeps the best for the 'States ; and we have lost (what was the object of the States in the whole affair) the direct trade in eacli case, which wouW be very piofitabte. It is a fact, that if you allow your neighbours to trade with you as they like, they will often be able to prevent you from trad- ing profitably with other.s. A remarkable instance has just been given. It appears that our trade with the West Indies decreased nearly 9 per cent, from 1864 to 1874, being only about $6,000,000. The United States trade, in the same time, principally there, but also adding the other South American trade, commenced with $80,000,000, and increased to $145,000,000. The writer has not space to give the computation which suggests itself ; but he has no hesitation in saying that with proper tariffs our trade to those markets would now yearly be half theirs, or $70,000,000. Our free trade may have given us for a time, a cent on the sugar, but we have lost our refineries, which are closed ; lost the wages paid there, the profits made, and the workmen employed there. The loss of others working for those workmen — principally farmers — will quadruple it. And now they have closed our refineries, the States have changed their drawback, and sugar here now is no cheaper than we could make it ourselves. So that it may fairly be considered Mr. Cart Wright's policy may have saved something in the price of sugar, and lost to our farmers and mechanics much more, and to the country the great West Indian and South American trade. THE .ST. LAWRENCE CANALS. In the enlargement of these lies the whole future of Canada. When they are rendered — as they easily can be — fit to pass a thousand ton ves.sel, the problem of communication is solved. Thet ransit of all freight will be rendered much cheaper and easier. Coal can be brought up and flour brought down to much greater advantage than now. There will also be a large direct trade from the lake ports to those of the ocean. In other words, there will be a constant passage and re-passage of large vessels between Chicago, Fort William, &c., and Britain, the Mediterranean, Australia, China, &c. We shall then utilize what we have ever neglected — that la which we excel the world— our inland water-ways of 2,000 miles. 20 liV Objections and obstacles have bcon raised to this, principally from railway peoplft fearing competition, I'mni iiitfniiciliati' ports wish in;,' to reinaiii tin- sfiits nf ii useless tniiisliipineiit ; or from those wlui iiiivc not stiuiied the matter. The writer liiids by tlie iiistury of past times, that siieii trallic is prri'eitly possibh- ami eiisy, ami lie has received the testimony of those in Canada liest (pialilied to ,jud;^e, tliat it is certain, Sdnmr ur later, to lie tlie chief mode of ciirria;,'e lift Weill Canada and llie ou'.side wmid. The Dominion now buys about $2,0('0,(l(Kt worth of liitnminoiiN coal yturly -the Maritime i'rovinees aliout J'J,f)()( ,000 worth of Hour. Willi protection, wc .shouhl use at once more like ten thin two millions of coal, tlie (piantily woulti ever increase, and we should buy tho two articles of each otiier. TIIK CIIY Ol-' lAXATION. Stiitemenis intended to deceive Canadians on tliis subject are too common. For instance, that which calls ail liuill's taxation. l.'ev<'nue tarilf-* -wliieli tax what cannot be iiroibiceil here — are taxes, rroiccuve thrill's do not represent the amnimt ot taxation ; I'ut olteu tho lessening of taxation. 'I'iie ],ouiidc.s and Calhoun 1 uill's, in tiic Slatc.s, put -ID per cent, on cotton. The cll'i ct was so to licl|i IJu- cotton industry that cottons, iielorc 25 cents, were .sold prolitalily at 7 ccnt.s. 'J he chief iree-trade or^ian here — tiie (Jlvbc — has tour times in the hist fi-w months (pioted a speech to the I'ollowiiiij dlect, from .some Illinois politician- thrice in its eililorial columns— wjio says the U. S. farmers' hamnier.s, nails, ploUi,dis, knives, sheets, blankets, sliirl.s, coats, shoes and hats, Uilile.s, carpet <, plates, knives and lork.s, .salt, pepjicr, spice and tobacco iirc taxed oo, f)!*, 7l', ITiO, au'l nii to 37'.> |ier cent., his colfee 47 per cent, anil his tea 78 jur cent. 'I'lie p.ipci' in (piesiion, in ihc.'e lour times, said once that tiie duties had sini;e lieen modilicd, hut always omitted to mention its knowled;.;'? (for the regidations Iiad lieen very generally reporteil) that tea and colfci! have come free into the U. S. ever .since 1872. Kvery Canadian farmer is also well aware that most of these v<'ry articles are now so niui h cheaper in the Slates tiian idhcwliere that we ycai'ly import many of them. The (Hobe was challengeU to name one article protection had rendered clearer in Canada, and could not. It was also jmliliely cliallcngcd by the [iiesent writer, .some months ago, to allow him tlirce letters exiilanatoi'y "f protection, in its columns, (ind could not. As to the prices and coist ot living in llie Slates, they are, considering the amount of actual taxation they voluntary undergo to pay o|f their debt, very low. There is no doubt — no room for dispute — on the matter. In every State, in 1874, most nanute returns of average retail piice.i of laovisions, groceries, clothes, fuel and housereiit, were transmitted to U'ashiiiglon It siu-ms Ironi lin'se that fiiineis, in nio.st parts, got better prices for eggs, butler, cheese and meat, in every town than they were getting here. Cloth und dry goods were no higher — some (dica[ier — than here. Tea was 8Uc. to $1.20; colfee cheaper than here, about '6(tc. Board in the jN'ew England and middle States was about li^4.5U. Wages were miuli higher than here. The returns from lllinoi.s— the State the Oluhc has so paraded — give tea #l.»)(i, colfee 27c., sugar lie, bleached shirtings 10c. , tick- ing 25c., salinels ()5c., prints luc., niousselin-dedaines 15c. What the farmer got was : eggs 20c., milk tiic, potatoes 'Jlc, ciuese ISic butler -8,ic., Hour $7.00, beef 8c. to lie, mutton and pork lie. to 12c. iNow, (1878), board is nuch cheaper there : tea averages 40c. in Chicago, colfee 2Uc. CONCLUSION. The writer wishes to jire.ss these points, in conclusion, on the notice of Canadian farmers and townsmen : — The home demand lor farm pioducts, in Canada, from non-farmers, is now four times wluit we export. The more factories we get, the greater that home demand. People wiio back up the great trading ccnnbination, which under the name ot free trade, is drain- ing the land of itsslrenglh, insist that Liverpool rules our prices. No distant port has any right to rule our prices. None buys trom us to that extent. Secure our farmers their home market, and they will never want good prices nor good crops, for with n near market they can farm well and enrich their land, which now they cannot. Nor will any workman here, getting good wages and full work, as should be the case for many years under Protection, grudge fair prices for all farm produce. Let Indian ryot and Russian peasant raise wheat at famine prices — our farmers have had enough of l)eing made to sell as low as they. Nor is it fair that our woikmen should be ever kept under the grinding ))ressure of foreign importa- tions — the importers of which simply say to the Canadian workman — Work as low as those who make these, or starve. The simple explanation of how both farmers and mechanics can be advantaged is this : Our country is rich enough — we work hard enough — but it is steadily drained of all we make. Take this instance : — If we grow a million worth of barley and sell it for a million dollars and send them to Europe for a million worth of iron, the barley is gone, tlu? money is gone, and in a few years the iron is used up — all is gone. But if we had — as we might — the iron workers here — the barley might be used, the iron used ; but the money would never have left the land— it would by that time have circulated in all directions — would have gone round and round, and given work and ]irolit wherever it went, it is such management alone which can make us a prosjierous nation — it would make us a very prosperous one. Emphatically, our great country, with its vast stretches of medium .soils, can never prosper as a mere exporter of grain and cattle. Do its best, try every expedient — all will be useless. Natural and inexorable laws bar the way. But for the other prospect — that of a great and powerful country depcudeut upon itself alone for its food and mann- * factures — there is no land on eartli better q^ualilied. Tiiat way lies the path to greatness, to wealth, to national honor — broad, clear and open. There is another path — wo are on it — it leads to our becoming a poor, dependent and despised portion of the United States. There is no third course. if i J