1^ IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I y^llB |2.5 :^ lis iiiiiM 1.8 1.25 1.4 |i> ^ 6" — ► Photographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. 14580 (716) 872-4503 s. mi <^ ^> c^ ■ «Wj^w»a ^ ■g;1^^f^'*^i5%l>'' CIHM/ICMH Microfiche CIHM/ICMH Collection de microfiches. Canadian Institute for Historical Microreproductions / Instltut Canadian de microreproductions historiq ues ■■'■r^^ Technical and Bibliographic Not^s/Notes technlquss et bibliographic. The Institute has attempted to obtain the best • ',; original copy available for filming. Features of this copy which may be bibliographlcally unique, which may alter any of the imeges iti the reproduction, or which may significantly change the usual method of filming, are checited below. L'Institut a microfilm* le meilleuF fxemplaire qu'il lui a ^t6 possible de se procurer. Las details de cet exemplaire qui sont peut-Atre uniques du point de vue bibliographique, qui peuvent madifieir une image reproduite, ou qui peuvent exiger une modification dans la m6thode normale de filmage sont indiqu6s ci-dessous. Coloured covers/ Couverture de couleur Covers damaged/ Couverture endommag^e D D D I — I Coloured maps/ Covers restored and/or laminated/ Couverture restaur^ et/ou pellicul6e Cover title missing/ Le titre de couverture manque D D D D D D Cartes giographiques en couleur Coloured ink (i.e. other than blue or black)/ Encre de couleur (i.e. autre que bleue ou noire) Coloured plates and/or illustrations/ Planches et/ou illustrations en couleur Bound with other material/ Reli6 avec d'autres documents Tight binding may cause shadows or distortion along interior margin/ La reliure serr^e peut causer de S'ombre ou de la distortion le long de la marge int*rieure Blank leaves added during restorction may appear within the text. Whenever possible, these have been omitted from filming/ II se peut que certaines pages blanches ajouties lors d'une restauration apparaissent dans le texte, mais. lorsque cela 6tait possible, ces pages n'ont pas 6t6 filmies. Additional comments:/ Commentaires supplimentaires: □ Coloured pages/ Pages de couleur □ Pages damaged/ Pages endommag^es □ Pages restored and/or laminated/ Pages restauries et/ou pellicul6es I — I Pages discoloured, stained or foxed/ Pages d6color6es. tachetdes ou piqu6es Pages detached/ Pages d6tach6es I — I Showthrough/ Transparence □ Quality of print varies/ Quality in^gaie de I'impression I — I Includes supplementary material/ D Comprend du materiel suppi^mentaire Only edition available/ Seule Mition disponible Pages wholly or partially obscured by errata slips, tissues, etc.. have been refilmed to ensure the best possible image/ Les pages totalement ou partiellement obscurcies par un feuillet d'errata, une pelure. etc.. ont 6t6 film6es A nouveau de fa^on d obtenir la meilleure image possible. This Item is filmed at the reduction ratio checked below/ Ce document est film* au taux de reduction indiqu« ci-dessous. 10X 14X 18X 22X 12X 16X 20X 3 24X 26X 30X 28X 32X as du modiifief Br une filmage ies The copy filmed here has been reproduced thanks to the generosity of: Library of Congress Photoduplication Service The images appearing here are the best quality possible considering the condition and legibility of the original copy and in keeping with the filming contract specifications. Original copies in printed paper covers are filmed beginning with the front cover and ending on the last page with a printed or illustrated impres- sion, or the back cover when appropriate. All other original copies are filmed beginning on the first page with a printed or illustrated impres- sion, and ending on the last page with a printed or illustrated impression. The last recorded frame on each microfiche shall contain the symbol -♦► (meaning "CON- TINUED"), or the symbol V (meaning "END"), whichever applies. Maps, plates, charts, etc., may be filmed at different reduction ratios. Those too large to be entirely included in one exposure are filmed beginning in the uppor left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: re L'exemplaire filmA fut reproduit grdce d la gAnArositA de: Library of Congress Photoduplication Service Les images suivantes ont 6t6 re-- oduites avec le plus grand soin, compte tenu de la condition et de la nettet6 de l'exemplaire film6, et en conformity avec les conditions du contrat de filmage. Les exemplaires originaux dont la couverture en papier est imprim6e sont film6s en commenpant par le premier plat et en terminant soit par la dernidre page qui comporte une empreinte d'impression ou d'illustration, soit par le second plat, salon le cas. Tous les autres exemplaires originaux sont film6s en commen^ant par la premiere page qui comporte une empreinte d'impression ou d'illustration et en terminant par la derniftre page qui comporte une telle empreinte. Un das symboles suivants apparaitra sur la dernidre image de cheque microfiche, selon le cas: le symbole —^ signifie "A SUIVRE ", le symbole V signifie "FIN ". Les cartes, planches, tableaux, etc., peuvent dtre film6s d das taux de reduction diffdrents. Lorsque le document est trop grand pour dtre reproduit en un seul clich6, il est filmd & partir de i'angle supArieur gauche, de gauche d droite, et de haut en bas, en prenant le nombre d'images nicessaire. Les diagrammes suivants illustrent la m^thode. f y errata id to nt ne pel u re, ifon A 1 2 3 4 5 6 32X THE NATIONAL POLICY OF ENGLAND. AN UMPUBLISnED LETTER ADDRESSED TO THE EDITOR OF THE " TIMES," rnECEDED IIY PREFATORY REMARKS ADDRESSED TO THE PITBLIC. ST KU KLOS, p^^eud . ci ^oh n h<^''' r. 5 LONDON : PUBLISHED BY JOHN HARRIS. PRINTED BY WERTHEIMER, LEA & CO., CIllCUS PLACE, riNSBUHY CIKCUS, 0/ whom Copies maij be obtained. Apeil, 1878. Price Threepence. A ^t^ < ■0 V V X .< V t ^ < PEEFATOEY EEMAEKS ADDEESSED TO THE PUBLIC. Shut out apparently from communicating with our fellow countrymen in the more usual manner, through the medium of the daily journals, or other periodicals, we again have recourse to the less usual^method of directly addressing the pubhc, in a publication of our own. " But why are you shut out from the more usual and convenient medium ?" some one asks ; " there must be some reason." The reason, so far as we know, and to the best of our belief, is simply this :— That the public critics do not like to be criticized, and that the public teachers do not like their doctrines and theories to be examined or called in question. This, we suppose, is our offence, and the cause why our communicatioas to the public are to be ignored if possible. Some time since, for reasons duly set forth, we cited the " Saturday Review " before the bar of public opinion, for judgment, on a charge of literary injustice to ourself Is it because we had the effrontery to convict one public reviewer of dereliction of duty in his important office, that we are to forego our right to speak to the public on matters of public interest ? 6 PREFATORY REMARKS. It would take much to convince us tliat the public so vicwcl the case, even if our own right only were in question ; bv.t there is much more than our own right to induce us to speak, for we have a messar^e to those whom it may con- cern ; and, " whether they will hoar or whether they will forbear," we shall persist in the endeavour to make known to tiiem what we have to say. With regard to the letter published herein, addressed to the Editor of the •' Times," the subject of that letter belongs to Commercial and Industrial Economy, a subject to which we have given especial attention, and on which, as the Editor of the " Times " is, or should be, well aware, we had previously written, advocatin;^, on the one hand, and condemning, on the other, certain doctrines. It may be naid very justly, the Editor of the " Times " has a great number of letters addressed to him, and, on any subject of interest, a selection has to be made, only those being ad- mitted to the columns of the journal which, by their fitness are best adapted to inform the reader. As to which are best adapted, the Editor must exercise his judgment and decide accordingly. To all this we quite agree, but whether it be the "Times," or any other journal, the Editor is niorally bound to exercise his discretionary power by rile, and *X) be as fair and consistent as his judgment may enable him to be. The present case, accordinf to our view, is this: — The "Times" advocates at the ] -resent time very strongly, as it has done for many years past, that s^'^stem of economical policy termed Fh'ee Trade. On March the 7th appeared in the "Times" a letter from Lord Bateman, PREFATORY REMARKS. blic so vicwc'l |uestion ; bv.t induce us to 1 it may con- her they will make known addressed to letter belongs ject to which vhich, as the ware, we had e hand, and It may bo ' has a gieat -ny subject of ose being ad- y their fitness to which are udgment and !, but whether ,he Editor is lower by rde, it may enable our view, is at time very /hat s^'^stem of [arch the 7th ord Bateman, entitled "The Six Millions and how to raise them," which letter had for its purpose to commend the re-imposition of a toll or duty on certain imports, primarily as a means of furnishing the six millions granted by Parliament to tao Government. The letter, well written and lucidly setting forth the views of the writer, app 3arcd to us to be weak in argument, and based on a very evident fallacy, which rendered nugatory the proposal made by it. Now, if the letter emj,nating from Lord Bateman, as a known professed '••pponent to the Free Trade system, were alloweil to stand uncorrected by any other opponent of that system, it would probably be inferred by many persons that the arguments set forth in that letter were endorsed and concurred in by others who also condemned the Free Trade system. Had the Editor published any other letter from our side of the question, correcting that of Lord Bateman, and putting the issues satisfactorily before the reader, we should have made no complaint about our letter not appearing, although we had some claim to precedence. But neither ours nor any oth<}r letter, replying to Lord Bateman, ap- peared, nor was any notice whatever of our exposition vouchsafed. We speak of having some claim to precedence on the subject ; it is briefly in this wise :— The objections to the so-celled Free Trade system, which had remained so long dormant that many supposed them to have ceased to exist, became reanimated only a few months since, and seemed to spriiig almost suddenly into vigorous vitality. The earliest of recent publications in this country, expres.sly and pro- 8 TREFATORY REMARKS. fcHHedly oppo.sing tlio established commercial policy, was, HO far as wo know, our essay published nearly three years since, entitled " The Failure of Free Trade and the Cobden Club." This was followed, not long after, by another essay entitled " The Present Dci)ression of Trade, its Cause and the Remedy." Subsequently, less than six months since, appeared, as a first letter to the public, our " Commercial Policy of England in the year 1877." Soon after the publi- cation of this last, the first letter of Lord Bateman was published in the " Times " and almost simultaneously (piite a number of writers took vi]) the subject on independent grounds, without apparent concert or strict agreement in the views advocated by them, beyond their unanimous dis- satisfaction with the (so-called) Free Trade system, and per- ception of the ill-consequences which are manifesting them- selves as the outcome of that economic policy. Enough, however, has now been said on our part ; we are not desirous to blame the "Times" on any merely pei-sonal grounds. The Editor and sub-Editors of the " Times" are, presumably, very busy men, and, like other men, liable to commit errors of judgment. Let the omission of our letter pass as an error of judgment ; only 'that, in this instance, as in the case of the " Saturday Review," we must insist on 2mncix>le that the public journalist or reviewer is morally responsible to the public for the equitable and impartial fulfilment of the important public duties which as such he takes upon himself. Since writing the letter in reply to Lord Bateman's, we find ourselves at issue with the " Times " on a question of im I'KEFATOHY REMAUKS. e al policy, was, •ly three years nd the Cobden ^ another essay its Cause and months since, ■ " Commercial ifter the publi- Bateman was ancously quite a independent agreement in unanimous dis- 'stem, and per- lifesting them- licy. Enough, ; we are not erely personal i " Times" are, men, liable to a of our letter this instance, must insist on wer is morally and impartial which as such Bateman's, we 1 a question of Colonial commercial policy, which, in part, belongs directly to the same subject, and in part is only indirectly connected therewith. Appended to this publication, wo reproduce, for the purpose of review, the last of the leading articles published in the '• Times " of March lUth. The present commercial policy of Canada is its general subject, and, as will be seen by reference to it, the news of the rejection of a Protectionist readjustment of the Canadian tariff by the Dominion Parliament, constitutes the ♦.ext of the article. In a somewhat ex cathedra stylo the writer la3's down the precise policy which Canadians ought to follow, forbearing fi'om laug'ing at their ignorance and folly only because it is on a par with that which prevailed in this country and elsewhere until about thirty years ago, when wisdum was first discovered, a discovery which, of course, wjis imme- diately followed by the inauguration of the great and im- mortal Free Trade system. " J/ we tccro credulous enough to suppose that educated Englishmen must be able to discern their own interests and pursue them, we should marvel that there could be in Canada any Protectionist at all. The case of Free Trade is there so simple and obvious ; the advantages of an unrestricted commerce seem palpable. A huge market lies at the door of Canada, and though its neighbours are unwise enough to throw obstacles in the way of the importation of Canadian produce, the advantages of receiving it are too great to allow the trade to be destroyed. T/te true function of Canada is to pour over its borders into the United States the agricultural commodities it can send into the market under such favourable conditions, receiving back in 10 PREFATORY REMARKS. exchange those other commouities which, as the prices of the mavKet show, its neighiours can produce more easily than itself. A division of labour would thus be established beneficial to both, and the populations of both countries would be developed, and their well-being increased in con- sequence." This Htateineiit includes moro than may, for the moment, appear to the uninlbnned reader, because we are bound to assume the writer to reason logically, and that his statement is an inference from facts known or presumed. The statement, therefore, includes inferentially that of the facts which only will relate to it as a reasonable basis. The writer of the article evidently supposes Canada to be characteristically a corn and wheat-growing country ; a vast natural farm, blest throughout with a rich fertile soil and with a climate such as to relieve the agriculturist from the cai-es and anxieties to which in other countries ho is unfortunately subject. Whilst the sterile soil and unpro- pitious climate of Canada's neighbour, the United States, obliges the inhabitants of that unproductive country to employ themselves wholly in manufactures and handicraft industries, for which their natural qualifications especially adapt them. Thus appears the absurdity of Canada com- mercially shutting the door against the manufactures of the United States, which she so much needs, and which she can buy so advantageously with the grain which the people of the adjacent republic are equally in want of Wo are strongly of opinion that, on more particular en- quiry, the author of the article in the " Times " will find that he has been greatly misled as to the facts. Certainly, rUEFATOKY IIKMAUKM. 11 prices of the re easily than be established both countries reased in con- than may, for because we are y, and that his I or preaumed. ly that of the bio basis. The Canada to be 3g country ; a rich fertile soil riculturist from jountries he is oil and unpro- United States, ive country to and handicraft iions especially •f Canada com- ufactures of the I which she can h the people of 1 particular en- imes " will find ,cts. Certainly, the territory of the Dominion of Canada includos much very good farm land, but the whole of the Dominion covers an immense area, somewhat greater tlian the M'holo of tlie United States. Canada i)roper, namely, tlit! provinces of Quebec and Ontario together, iloes not possess tlioso very great natural advantages for the cultivation of the cereals which the imagination of the " Time3 " has led it to suppose. In Western Canada there is a good deal of cultivated land- and the produce, wheat, corn, and barley, is usually some- what superior in quality to that of the neighbouring States of the Republic. But Lower Canada can scarcely be con. sidered at the present time an agricultural country, or to be very well adapted fen- agricultural pursuits, although, if Canadians were to make agriculture their sole occupa- tion, and adopt a more costly system of cultivation, like that of Belgium or Scotland, supported with sufHcient capital, they might be able to export a much larger quantity of produce. But why should they do so, rather than give a part of their attention to manufactures? They have to compete with their neighbours of the United States in either case, quite as much in respect to the agricultural produce as to the manufactures. For the United States territory is not the barren sterile region which the " Times " article assumes it to be. It possesses, as every one should know, immense districts of rich fertile soil not yet utilized by the agriculturist ; and, at the present time, besides being able to feed its own population without the assistance of Canada, sends a very large suiplus to Europe. The United States farmer does not desire the competition of his I' 12 PREFATORY REMARKS. Canadian neighbour, and, therefore, takes measures to pre- vent it. He much prefers to supply the Canadian market with his grain whenever the price in Canada is sufficiently remunerative. The argument of the " Times " would have had more force if applied to the commercial relationship of the United States and Great Britain about forty years ago, for then the manufactures of America were quite in embryo. Great Britain actually wanted their agricultural produce, and was quite prepared to supply them abundantly with her manufactures in exchange. But Columbia wished to have manufactures of her own. She wished to clothe as well as feed her own people, and wished to find employ- ment for a large population. All this has been done and much more, for, notwithstanding a great advantage in the abundance and cheapness of capital, and some advantage in cheaper labour, in favour of Great Britain, yet, in conse- quence of the superiority of the commercial policy adopted by the United States, not only have their manufactures been established, but they have succeeded in turning the tables, and are now actually taking away our manufactures from us, whilst we look on astonished but helpless ; they ar^ now sending us their manufactured goods in very large quan- tity as well as their grain, so that instead of buying the grain with our products, we now have to pay for both. No : If the Canadians were so insane as to adopt and persist in the policy recommended to them by the " Times," it would not result in the prosperity of Canada, but would soon put an end to the progress and development of the Dominion, After a time the inhabitants would become few in number, 3a.sures to pre- ,nadian market I is sufficiently i" would have relationship of "orty years ago, uite in embryo. Itural produce, undantly with ubia wished to ed to clothe as find employ- been done and Ivantage in the ae advantage in , yet, in conse- [ policy adopted .nufactures been ning the tables, • manufactures ilpless ; they ar3 v^ery large quan- Duying the grain both. No: If ad persist in the 8," it would not uld soon put an f the Dominion, 1 few in number, PREFATORY REMARKS. 13 and consist mainly of farm -owners, farm -labourers, agricul- turists, and shepherds, linder the actual circumstances, however, the foolish experiment would soon tci-minate by Canada becoming a part of the United States. Would such a termination be, to the mind of the " Times," " a consum- mation devoutly to be wished " ? We would not gratuitously nor readily put that construction on the meaning of the present article ; Tint we are mindful that not nearly so much as thirty years has elapsed since influential writers and politicians of reputation told Canada plainly and undis- guisedly to be gone, as well as gave hor to understand by sarcasm and covert irony, that England no longer desired to be troubled with the care of Colonies. Canadians were told in so many words : — " We no longer want you. Put your loyalty in your pockets, and take yourselves off, like sensiltle folk. Probably the best thing you can do is to join the United States. They seem to want you, and arc quite welcome to your company so far as we are concei-ncd. Or, if you don't like that, why not s. t up for yourselves as an independent State ? That, surely, would be very nice ! anything you please, gentlciiion, so that only y(ju relieve us from all future responsibility about your affairs."* * Is it not somewhat strange that, espodally in the passage just quoted, but in some degree throughout the article, the "Times" overlooks the connection of Canada, as a colony, with Great Britain? If it were Canada's wisest policy to make it her sole function '• to pour agricultural commodities over her borders in cxcha.igo for manufactured goods," why not pour them across the Atlantic, and take British manufactures in c.Kchangc? It can be done quite an cheaply as transporting them to distant towns in the States, and at 14 PREFATORY REMARKS. " Canadians themselves see the force of these truths, when they contemplate trade hetiveen the province oj Quebec ind the jrrovince of Nova Scotia, or between New Brunsn'ick and Prince Edward Island, or between Ontario and all the rest. Inter-provincial Free Trade is good for all. In the same fashion the citizens of the Oreat Republic ivould refuse to erect Custom-house barriers between Massachusetts and Netv York, or to establish a Customs line between Penn- sylvania and Ohio. Why is it foolish to cripple trade between Bostov and Chicago, and wise to cripple it between Boston and Montreal ? Why encourage the traffic between St. John and Halifax, and discourage it between Toronto and Buffalo?" The ~'c,asonwhy is this: — Chicago and Boston belong to the same nation ; Boston and Montreal belong to two different nations: St. John and Halifax have the same nationality, and both are subject to the same government ; Toronto and Buffalo have different nationalities. The one is under the government of the Dominion of Canada, and belongs to the British Empire ; the other under the govern- ment of the United States, of which Republic it constitutes a part. The writer in the " Times " has taken ground on one extreme, the opposite to which is occupied by the Home lluler of Ireland. Neither of them has gone, as yet, quite so far from the reasonable mean as it is theoretically pos- the same time benefit and support the steamships and other vessels, owned partly in Canada and partly in Great Britain, which now in themselves constitute an interest worth giving some considera- tion to. jsf truths, when 3 oj Quebec ind ' Bi'unsu'ick and and all the rest. I. In the same ivould refuse to ssachusetts and between Penn- cripple trade 3 to cripple it urage the traffic (rage it between Joston belong to belong to two have the same me government ; tlities. The one of Canada, and nder the govem- ilic it constitutes n ground on one d by the Home one, as yet, quite heoretically pos- 3 and other vessels, itain, which now in [jf some considera- PREFATORY REMARKS. 15 sible to do. The principle herein advocated by the " Times " is a sort of international communism. Why not cosmopoli- tanizc the civilized world ? Why have moi*e than one parliament in Europe? for example. Berlin is nearly central, and the parliament there might consent to legislate for the whole of Europe. Yet even that arrangement might be theoretically simplified still further perhaps ; the Czar of Russia might be not unwilling to govern the whole of Europe himself, without the complication and trouble of any parliament or parliaments. Would this be going too far for the writer in the " Times " ? If so, where would ho draw the line : and why ? On the other hand, what would the Home Ruler, assum- ing Dublin to be in favour of a limited monarchy, and a parliament of its own, say to Waterford preferring an autocratic government, with an emperor or dictator ; whilst Cork decided to establish a municipal republic ? Edin- burgh might like to try an oligarchic form of government, and Glasgow choose to adopt Socialism. Why, indeed, should Cork submit to be legislated for by a parliament meeting at Dublin ? Or why should not Glasgow scornfully repudiate laws made at Edinburgh or elsewhere ? Supposing, however, these towns all to agree to choose a limited monarchy as the most preferable form of government, and each of them merely to insist on having its own supreme parliament, and legislating for itself as a sovereign and inde- pendent town. Would not some practical objections suggest themselves even to the Home Ruler, such as would cause - r '•'^i 16 PREFATORY REMARKS. him to hesitate and, perhaps, to exclaim : " No, no ; that would be going too far !" " The United States and the Dominion have suffered from great deprcsdon of trade ever nince the autumn of 1873 ; andj it is to i"ti.«» greit depre/^i^ion across the Atlantic that we owe the had years xve have experienced contemporanC' ously. The depression originated there, and we must look for a revival of our trade to a new impulse of prosperity in the North American Continent!' Is there not some- thing of the marvellous in this statement ? How immense must be the proportions of the trade of the United States and the Dominion, and how dependent must the commerce of Great Britain be upon that of the North American Conti- nent, for a depression of trade in the latter to cause a similar effect in the former. For the moment we will merely suggest that it does not quite necessarily follow, because a trans-Atlantic depression of trade preceded the depression which we have experienced on this side, that therefore the depression with us was caused by the other ; for there is at least a possibility that oui-s might arise from an independent and distinct cause. And there is no small degi-ee of probability that both might have a cause in com- mon, but which commenced to operate at a somewhat earlier period in the one case than in the other. " The truth is that our heyday and riotous time immedi- ately in-eceding lS7^—tvhen commerce advanced by 'leaps and hounds'— depended on the activity of the commerce of the United States, stimulated as that was by an excessive expenditure ofcnpltal on enterprises {hat proved to be an- No, no ; that c suffered from itnin of 1873 ; ! Atlantic that contemporane- I we must look z of 2^vosperity ere not some- How immense United States the commerce mcrican Conti- ter to cause a oment we will essarily follow, ! preceded the this side, that by the other ; ight arise froni lere is no small n cause incom- t a somewhat J other. 8 thiDie imvicdi- nced by ' leaps he commerce of >y an excessive roved to bo un- TREFATORY REMARKS. 17 remunerative." The statement that " excessive expenditure on unremunerative enterprises stimulates commerce " challenges remark. Strict criticism might object that any expenditure on unremunerative enterprise is excessive, but the meaning is, if we apprehend aright, very groat expen- diture. "Unremunerative enterprises " is somewhat ambig- uous, for we are not informed whether they were of a kind to be ultimately unremunerative, or whether they were merely unremunerative for a time — whether they were un- remunerative in a general sense or in a particular sense. A railway running through a new and almost unsettled country may be unremunerative for many years and ulti- mately become highly remunerative. It may be unremu- nerative to the shareholders for a very long time, and at the same time benefit the country through which it passes from the very first. The Grand Trunk Railway of Canada may be mentioned as an example. Now the enterprises spoken of may have been of this kind, or may have been foolish undertakings in which the capital was virtually squandered and lost. Let us amend the proposition accord- ingly — " a very great expenditure of capital, even on enter- prises of an unremunerative cfiaracter, has the effect of greatly stimulating commerce." We are somewhat doubt- ful whether this proposition be wholly consistent Avith the commercial doctrines usually upheld by the " Times," but, for ourselves, we agree and accept it as correct ; and, moreover, we request the reader to carefully take note of , for it is notcworth}^ " All ivcnt ^vell until it teas found that tJte capital which B 18 PREFATORY REMARKf? should continue free to awpport lahoin had been fixed in loorthleaa uvdertakinga, and there waa at once a cessation of prosperity in the United States, vjhich was coninmni' catcd after a very short interval to Canada and to ourscivcs." We are not sure that this belongs " to the clear thought expressed, in simple language" which the writer of the article calls for in othere. Let us again take a railway to illustrate the case, and suppose a railway constructed in a locality where it is not wanted, nor likely to be wanted. A railway previously constructed, we will suppose, in the same locality, is able to fully satisfy all the requirements of the country traveled by both of them, and the new line is conseii'.iently quite superfluous. This -would be a worth- less undertaking. But, observe, a considerable part of the outlay upon it has been in the payment of labourers em- ployed in the construction of the railway ; another part has been expended in the purchase of rolling-stock, which has employed labour in various workshops ; another part in buying the rails, and so on. The capital has therefore passed out of the possession of the promoters of the new railway Into thtt of the labourers. How then can it have become yiicefZ t The labourers havd paid it away cs soon as it came into theii possession, and it has been distributed amongst a great number of tradesmen. " But the labour has been employed in a useless undertaking and lost." Just so, but then if the capital had been locked up in a safe, or in the vaults of a bank, and the labourers had been unem- ployed, the labour would also have been lost, and more completely lost, for the useless railway may, in some un- PREFATORY REMARKS. 19 •I been fixed in mce a ccHsation iffw comviiini' nd to ourscivcs." £ clear thouglit 3 writer of the ike a railway to jonstructed in a f to be wanted, suppose, in the requirements of I the new line is dd be a worth- ible part of the " labourers em- inother part has bock, which has another part in d has therefore ters of the new hen can it have away as soon as )een distributed ,t the labour has vud lost." Just . up in a safe, or lad been unem- lost, and more i,y, in some un- expected manner, turn out to bo worth something, and in the other ca^e the railway would not have been constructed — there would be nothing ; no railway nor any other product. In either case the capital remains, and its utility in the hands of a number of tradesmen is likely to be at least as great as in the hands or in thj strong box of the capitalist. The capital, therefore, could not have become fixed in the worthless undertaking. Evidently the writer of the article has failed to appreciate the important economical propo- sition — that noteworthy proposition enunciated by himself — which immediately precedes this last statement. To rightly and fully appreciate the causes of th ; de- pi-ession of trade we must go back, not only to the time immediately preceding the commencement of the depres- sion, but also attentively regard that earlier period when the gradual development and slow growth with which our forefathers on both sides of the Atlantic were well satisfied, and which was supposea by them to be much dependent on frugality and financial caution in the administration of national affairs, became con/erted with almost magical suddenness into a commercial and industrial expansion, augmenting yearly with increasing rapidity. It has been stated, we believe on the best authority, that the national debt of the United States, which in the year 1861 was about 18 million pounds, increased, in the four following years of war, to upwards of SCO millions. This means, in the first place, that about 550 million pounds, in addition to its ordinary expenditure, was expended by the United States Government in four years. In what manner ^mesrn BiSSKk 0^ 20 rREFATOUY REMARKS. was it expondod, and for what purpose ? Was it invested in public works devised and destined tc pro.aote the trade and commerce of the nation ? No: It was in part paid to men engaged, not in work of a commercially remunerative character, but engaged in slaying and endeavouring to slay each other. Much of the other part was paid for war- viatdrid, and therefore servrd to directly benefit those brauehes of manufacture which supplied that materiel. Of the remainder, some part of it was said to have passed into the hands of those M'ho, coveting its possession, did not scruple to adopt illegitimate meaas to obtain it for themselves. A considerable j)ortion of this large total was con- tributed by foreign countries, and became an addition to tlie capitalized wealth of the United States nation. And with regard to the other portion, contributed by the nation itself, much of that, it should be observeu, vras wealth previously donnant, which being then capitalized became, as capital, activ ; a,nd potential. The coin cur- rency, for example, was almost wholly capitalized, and the purciiasing power of the capital, thus obtained, imme- diately utilized.* In other words, the metallic instruments of currency were sold and the proceeds made available by the United States Government as part of its monetary resources. ♦ We art ^ot sure whether the capitalized coin, although expended by the Government, was included in the present estimato as a part of the nationiil indebteducsp. We inrline to the suppo«:ition that it was not included, and to the opinion t) ".t it ought to have been ; for the instruments of currency have been borrowed, financially, by the nation, and will have to be restored, if specie payments are to be resumed. ' I'llEFATORY REMARKS. 21 Was it invested roiaote the trade s in part paid to Uy remunerative endeavouring to vas paid for war- ily benefit those d that mcd^i'iel. d to have passed 3 possession, did to obtain it for total was con- amc an addition Eites nation. And tributed by the be observeu, vras then capitalized I. The coin cur- capitalized, and i obtained, imme- tallic instruments aade available by of its monetary 3, although expended estimate as a part of ippo«:ition that it was 3 have been ; for the ncially, by the nation, are to be resumed. ' Practically the oft'ect must have boon noarly the same as if 550 millions, or a larj,'o part thoreof, had been presented to the Qovemmont of the United States by some other nation, and then paid by that Government to those who would bo most certain to utilize its pur- chasing capacity, and in so doing, would stimulate trade Heroin, then, wo have a particular and very intelligible cause of the very active state of trade during the period almost immediately preceding the depression. But, why did the commencement of the epoch of the deprcosion of trade in America precede its commencement in Europe ? Two distinct causes may be assigned for the commencement of the depression in America sooner than in Europe, both of which may probably have acted in coiijunction. The one was, that the subjects of the United States, having ended the war, and dissipated much of the wealth brought to them from other countries, found "■^cmselves face to face with an enormous national debt . . an actual debt owing by the nation, and on which, as the bon*ower, it was bound to pay interest annually until the principal itself should bo repaid_ The other cause was the lesser quantity, compared with England, of reserve capital actually invested in productive industrial enterprise ; and also the comparative scarcity and deamess of capital. Consequently when, from causes we are about to state, an epoch of depression of trade was about to set in, prudence and almost necessity required the American manufacturers and tradesmen to reduce their expenditure and restrict their business, thus at once un- 23 PREFATOKY REMARKS. skiug, and oven incrcaainj?, the unfavourable symptoms, whoroaw in England the nianufuctuier or other capita'ist engaged in industrial operations, would, in the tbnd expec- tation of an early revival of prosperity, endeavour to avoid any diminution in the (piantity of his production. He, for instance, Avith his cheaper capital, and larger re- serve of it, would keep his factory at full time under cir- cumstances which rendered it almost compulsory on tho American manufacturer to shorten his work -day con- siderably. After a time, of course, as warehouses became filled and markets overstocked, the English manufacturer would be also compelled to assimilate the rate of his production to the diminution in the demand for his pro- duct.* We have elsewhere t drawn attention to tho arbitrary and illogical character of that inference, which, because a long period of unprecedented commercial prosperity suc- ceeded the adoption of the (so-called) Free Trade system by <* It may be said very justly that the depression in trade generally must have existed for some time before even the American manu- facturer could be affected by it ; and that the depression was not a depression applying only to manufacturers. But what we have said above as to the relative capabilities of the British and the American manufacturer to withstand the immediate effects of a sudden diminu- tion in the demand for his goods, applies also to the wholesale dealer and, in some measure, to tho retail tradesman. The abundance and cheapness of capital enables, and sometimes may justify, the English trader io hold a large stock of goods, or even to stock heavily in the face of a failing demand. Hence the depression (being mistaken for a temporary dulness) would naturally take longer to declare itself on our side of the Atlantii;. t In " The Commercial Policy of England," and in " The Present Depression of Trade," etc. able symptoms, other capita' ist the fond expoc- , endeavour to liis production, and larger re- time under cir- ipulsory on tho work -day cou- ehouses became h manufacturer he rate of his md for his pro- tho arbitrary hich, because a prosperity suc- \ade system by in trade generally ) American manu- roBBion wuh not a rbat we have said and the American : a Budden diminu- e wholesale dealer he abundance and istify, the English bock heavily in the 1 (being mistaken longer to declare I in " The Present TREFATOKY KEMAUK8. 28 Engluiul, concludes, in positive fashion, that the prosperity waH mused by the operation of that system. We have carefully explained tho reason why such inference is illo- gical ; namely, that a certain other antecedent satisfactorily accounts, as a cause, for tho effect, and is fully suHicient of itself alone to have had tho whole effect as its con- Boquent ; anil, moreover, putting the facts refeiTe«l to (which, we allege, constitute the true antecedent cause), as an antecedent cause, philosophical consideration of all the circumstances, as connected and correlated, makes ap- parent that the eH'ect to be accounted for is just such as might liave been reasonably expected to follow as tho conseciucnt thereof. What, then, was this cause, alleged by us to be tho true antecedent ? The question may bo answered bricHy and genemlly in these words: tho application of tho discoveries of steam navigatif and railway transport. But observe that tho primary •, onsequents immediately combine with the primary antecedents to constitute a secondary antecedent ; for as soon as the railway train and the steam ship had connected distant towns and coun- tries with each other, greatly facilitating the intercom- munication between them and diminishing the expense, the dormant wealth, which, in the most advanced countries, and especif ily in England, had accumulated to a very great amount, suddenly found employment as active capital. An immensely increased area soon became available for the operations of the capitalist. Railway communication between some towns, suggested and demonstrated the ad- IT 24 PREFATORY REMARKS. vantogcH ohtainablt! l»y railway coiuiminication Itctwocn other towns. Steam navigation, rendering distant lands accessible, and moving emigrants in much greatt^r niunlters and far more conveniently, noon hccamo the occasion of very much Iniilding, existing towns having to be enlarged and many additional towns to bo built to accommodate populations rapidly increasing in munbei-s and wealth. In calling attention to this part of the subject on a former occasion, wo did not, perhaps, give sufficient prominence to the work of construction as in itself an abundan' cause of commercial and industrial prosperity. For it is to this cause, or this part of the compound cause (although, as wo shall presently take occasion to point out, less perma- nent in its character), that the suddenness as well as the great volume of that conmiercial expansion, so strangely attributed to the supposed magical effects of the Free-Trade system, has been mainly due. If this should not be at once evident to him, let us remind the reader of that proposition enunciated by the writer in the " Times," to which wo particularly called his attention as noteworthy; namely, that capital expended on even unremunerative labour (enterprises) stimulates commerce. It cannot, surely, be less true that capital ex- pended on remunerative labour stimulates commerce. Let the reader bring his mind to collect together and contem- plate, seve rally and collectively, some of the principal of those forms in which construction on a gigantic scale during the thirty years, from 1840 to 1870, was carried on The network of railways over the greater part of ,mmm»*»S>e'y^ieMie«Aiaist0a»'. -°!iteVi| PREFATORY REMARKU. 25 cation lictwocn f (liKtant lam Is ;ivat(!r iiumln'i-s tho occa.sion of r to bo enlarged ,0 aceonnnodato IS and wealtli. ject on a fonner ent promincnco abundan''. causo For it is to this although, as wo »ut, less pernia- as well as tho m, so strangely f the Free-Trade to him, let us undated by the ularly called his ipital expended ises) stimulates that capital ex- commerce. Let her and contem- the principal of I, gigantic scale ^70, was carried greater part of Euriipo and Anu'rioa, for instanct!: what an imiiieiiHo amount of work is ropri'sontcd in that alone. And thfn tho adjuncts belonging thereto, tho rolling-stock, loco- motivi'H antl carriages, tho stations and the workshops, the bridges and viaducts. Steam ships of nil kinds nn Be it observed that this question, which we here suppose asked by au objector, is an arbitrary assumption, as known to be true, of that which is in. fact untrue. Quito frequently met with, it, at the present time, constitutes the substratum of much fallacy on the subject. It is not true that the labourer is willing to work at the conventional wages-rate. He has no option. He must work at that rate or starve. Ho does not even appear to give assent by silence, for every strike is a protest and a renewal of his claim to the just consideration of his fellow-men. This is one of the grand and glorious harmonies of the great Free Trade doctrine, namely, that a labourer must, because he is a labourer, work for the lowest rate of remune- ration which will enable him to keep himself and family from actual starvation. " Is it true that there is a natural lan< which requires this ? " Xo : it is false. PREFATORY REMARKS. 29 180 we propose nv^h an agency ming one '. To T alaniiing. In effect Oil such a t of four million be quite enough lie inferences of " Labour is a i market value the to interfere arii. telling what the ational exchequer, js never heard of •e willing to work distinctly a time of the " Times ' here suppose asked own to be true, of ly met with, it, at much fallacy on the lliug to work at the must work at that e assent by silence, tis claim to the just ! grand and glorious ely, that a labourer 2st rate of remune- family from actual Zaw which requires newspaper were filled, column after colunm, with the advertisements of new companies . . mostly but not all railway companies . . each with its hopeful prospectus, its list of directors, and the amount of its capital * We do not know whether anyone had the curiosity to add up and ascertain the aggregate amount of capital which it was thus proposed to invest.f and very much of which was subsequently invested in the manner proposed. We re- member how the " Times " editorially shook its experienced head, and, in tones weighty and grave, cautioned the unwary as to the consequences of reckless speculation, prospectively lamenting the results which this wide-spread mania for the investment of capital in atmospheric archi- tecture would inevitably bring upon the nation. And not only the experienced journalist, but many an elderly experienced man of business, after contemplating the broadsheet, filled on both sides with the prospectuses of these new companies, would raise his spectacles, and, with a shudder, wonder how far the ill-consequences of all this wild speculation would extend. Perhaps the idea of history repeating itself may have suggested itself to him : " The time of the great South Sea Bubble h ? returned to us" he may have said to himself; "again the City of London will ° If wo recollect aright, the whole of a supplement and a page or two besides of the "Times "was, during some weeks, entirely de- voted to the advertisements of the new companies and projected enterprises. f We mean tlie aggregate amount of the capital of taoso pro- jected joint-stock enterprises advertised within a certain time, (say) during one month, or during three months. md 30 PREFATORY REMARKS. become a city of bankrupt and ruined victims, and again the people of England will awaken from their intoxication ofcovetors- ness, with a howl of vexation and shame over their foHtj and disgrace." " Were they right ? Were the fearful anticipations of those experienced minds fulfilled eventually ? " Well ; they were most certainly in the right with regard to the usual consequences of reckless and illegitimate speculation; and very many of those individuals who, eager to win, and regardless of risk, put their money into one or the other of those companies, found reason to wish they had listened to the cautions of prudent monitors. " But the general consequences to the nation, to which expe- rienced men of business had looked forward with so much anxiety and dread, in what form did they, when their time came, mani- fest themselves ?" Commerce and trade advanced by leaps and bounds ! And, as year succeeded year, trade bounded higher and commerce leapt further, until the sober facts of the reality far surpassed and transcended the dreamy expectations of the most sanguing enthusiast. How, then, are we to account for the amazing difference between the results of conduct, apparently quite similar and of the same character, on the part of the educated and wealth-possessing class of the English nation, on the two occasions respectively, at the time of the South Sea Bubble (of 1720) and the Railway Company mania (of 1842) ? Did the parties concerned act badly on the earlier occasion and well on the later. Shall we term the motive which , and again the Hon of CQvetors- thcir foHy and potions of those ht with regard 1(1 illegitimate dividiials who, eir money into reason to wish monitors. ;, to which expe- so much anxiety ime came, mani- s and bounds ! led higher and s of the reality y expectations kzing difference / quite similar le educated and on, on the two nth Sea Bubble nia (of 1842) ? earlier occasion 3 motive which X rendered people intensely eager to inscribe their names as stockholders in the South Sea scheme, the frenzy of a gambling fever, and call the motive which rendered tlieir descendants, on the more recent occasion, no less eager to secure allotments in some one of the railway projects, by another name ? Judging by the eventual result, shall wo say : The first were victims to their own folly and to illu- sions engendei'cd by their greed for unearned wealth ; and the subscribei"3 on the later occasion were endowed, in a high degree, with commercial sagacity and foresight ? No : the conduct of t]u> reckless speculators on the last occasion was even more disgraceful in its vicious folly than that of their predecessors ; for the gamblers in railway shares had more of the light of education to show them the real character of the game in which they were invitee' to take a hand. "But what, then, constituted the actual difference V The South Sea scheme had, at the first, an impracticable visionary enter rise for its professed purpose, and soon became, to a great extent, a mere deception on the part of its promoters . . a huge swindling operation, which ended in, and could only end in, the loss of their contri- butions by the dupes. The railway project had a very practical purpose as a real and rational foundation \ipon which it actually rested. This, which, to the great majority of the speculators at that time, was a mere accident . . a circumstance of which they were virtually ignoi'ant, en- tirely changed the character of the result. What really happened on the last occasion was this: in the frenzy 32 PREFATOltY REMARKS. of tlie gaiuljling mania, ordinary considerations of safety were disregarded ; the voice of prudence fell on inattentive ears; no longer guarded by the strong arms of caution, the national treasure-house was forced open ; its hoarded wealth was dragged forth, and, in reckless haste, cast hither and thither on the waters of industry. Then the slight loss of the comparatively few became the great gain of the many ; for the wealth was not lost . . but transferred, and converted from unutilized dormant wealth into active potential capital. Afloat upon those wonder working waters, the commercial f>t<(ff of life was carried into the realms of labour and through the busy precincts of human industry. Into the hands of the railway contractor, of the ma- chinist, of the engineer, of the master builder, did that pre- viously unemployed wealth first find its way. From the railway contractor to his army of labourers ; from the machinist and from the engineer to the artizans and me- chanics; from the master builder to the masons. And then, from the labourers and the artizans to the retail traders ; from these to the wholesale storekeepers ; and, lastly, to the manufacturers, and to the agriculturists. On all these, exerting its vivifying influence, the active capital made its way unwearied, inspiring the well-nigh hopeless labourer with renewed life and vigour ; bringing a large increase in the number of his customers to the trader, and furnishing him with the means of purchasing goods in larger quantity . supplying the manufacturer with larger buildings and im- proved machinery ; and yet, after accomplishing all this^ '^^^i^i&Ji^ ations of safety 11 on inattentive inns of caution, en; its hoarded dcss haste, cast '•y- ely few became h was not lost . . utilized dormant 3, the commercial ,s of labour and istry. ctor, of the ma- ler, did that pre- way. From the mrers ; from the artizans and me- asons. And then, le retail traders ; 8 ; and, lastly, to ts. On all these, ivo capital made hopeless labourer , large increase in jr, and furnishing a larger quantity . buildings and im- iplishing all this^ PREFATORY REMARKS. 33 not weary, nor worn out, nor less potential than at first, but augmented in quantity, and ready at any moment to renew the circuit, and again perfoi-m its beneficent func- tions. Would it not be well for our politicians and public men to study somewhat more carefully those useful lessons, taught by the experience of the past, which rest on the facts of history, instead of staking the prosperity and ulti- mate safety of the nation upon vague artificial dogmas, generated in the human imagination, having no funda- mental truth to support them, nor any intelligible basis to rest upon. We have found fault with much of this article on Canada's commercial policy in the course of our examina- tion of it. It is, indeed, because our views differ much from those of the writer of the article that we have thought it would be useful to submit both together to the considera- tion of the public. The faults we have found hitherto, if they be faults, as we allege, are errors of judgment ; we do not for a moment suppose the writer of the article to be insincere in the exposition of his opinions. We are con- vinced that when writing the article he actually believed in the existence of a reasonable economic doctrine which he calls Free Trade, and really felt.the confidence in it which he expresses. But the las*< paragraph of the article is, in our opinion, faulty in a distinct and worse sense than the other parts of it ; and of this last paragraph, the last few sentences are the worst. For the article, we are sorry to say, ends by making a very grave charge against a prominent public man ; against an eminent statesman, who c 34 PKEFATOKY UEMAKKS. has, in Canada, lendcrotl the Imperial State, as well as the Dominion, highly important and long continued service. " Sir John A. Macdonald has seized the opportunity of such a juncture to raise the cry of a modification of the tariff, in the hope of rallying around him all who have any Protectionist lean- ings. It is not believed that he shai-es their errors himself— this would b« inconsistent with much of his past career, and, indeed, his intelligence would not permit him to be deceived by the fal- lacies he may countenance — but he is confident that he can play with these allies for a time, and he would get rid of them some- how if he cgain became Minister of the Crown. Thus the statesman named is charged on suspicion with falsifying his public hfe — of practising treachery and de- ceit. The reasons directly given for this suspicion we, of course, do not consider worth a straw. The insinuation of something very blameablo in Sir John's past career is, wc think, unjust to him, and also unfair to the public of the British Empire, which is much interested in the unsullied reputation of its most eminent ministers. It is, we believe, true that Sir John A. Macdonald's last Ministry fell be- cause it was considered by those who were detennined to give no encouragement to poUtical corruption in any quar- ter, that he had not succeeded in satisfactorily explaining a circumstance wliich appeared to connect him, as Minister, with some bribery transactions set on foot by others. But this, we believe the only instance of any charge of the kind against him or his Govemment, does not justify the de- scription of him as " distressingly careless as to the means of retaining poicer^ and cynically negligent of purity of adminis- PKEFATORY KEMAltKS. 35 , as well as the lucd service. ortunity of such he tariff, in the rotedionist lean- ors himself — this eer, and, indeed, eived by the fal- thathe can play d of them some- n. suspicion with •achory and de- suspicion we, of e insinuation of tst career is, we lie public of the n the unsullied It is, wc believe, Ministry fell be- e detennined to ion in any quar- ;orily explaining liini, as Minister, by others. But largc of the kind ; justify the de- w to the means of mrity of adminis- tration." It is probable that very many of his old followers who regretfully decided that under the circumstances it was better that ho should quit office, came to that conclu- sion because of the great confidence they had previously placed in the purity of his administration, as well as in the sterling loyalty of the statesman himself. If we put aside this entirely gratuitous charge of false- hood and premeditated treachery, there remains the signi- ficant fact that one of the moat eminent and experienced of British statesmen now living has deliberately condemned the (so-called ) Free Trade system, and has actively opposed himself to it. Whether the rejection of the motion for readjusting the tariff in such a way as to give more pro- tection to the Canadian producer, has that mild kind of significance, even, which the " Times " claims for it, we are not prepared to say. It must be remembered that, sup- posing Canada at the present time greatly desires to protect her incipient manufactures, through the tender ago of childhood, from the overwhelming competition of the British manufacturer on the one hand and of the United States manufacturer on the other, her political guides have lo consider very carefully how far they can go in that direc- tion without offending England. It may be that the majority of the Canadian House of Commons were apprehensive that if the motion were car- ried, the news of it would be received here with a howl of indignation, and expressions of strong displeasure. More- over, there is the American party, not willing to do any- 36 PREFATORY REMARKS ir thing prejudicial to the trade with the United States. And again, it must be considered that the importers and agfats of foreign manufactures form a strong and influential party, which will naturally do its utmost to defend its vested interests in the present stato of tilings. When due weight is given to these considerations, it may be understood that a great majority of native Cana- dians, and of those who, believing in a great future for Canada, desire to see a policy adopted by her statesmen calculated to prepare the firm foundation of future nation- ality, may be very much in favour of affording a larger measure of protection to Canadian industry, and yet unable for the time to overcome the difficulties opposed by the various interests of outsiders and foreigners. The persistence of the " Times," and othera influential in the counsels of the nation, in closing their eyes and refusing to hear, suggests the expediency of again adverting to a certain prominent and most interesting fact, although we have quite recently dwelt upon it with much earnestness and emphasis. It is, indeed, very pertinent to the present observations, and may bo strictly considered to belong to them. The United States and Great Britain have sufiered, and are both suffering, from the depression of trade. " Are both suffering alike ? " Well, not exactly : there is this differ- ence : — In the year 1865, England imported, from the United States, manufactured goods to the value of $84,700,000, and exported to the United States to the value of rUEFATOKY KEMAUKS. V cil Stetcs. And rtors and agt'.its nfluential party, ufcnd its vested ansidcrations, it of native Cana- jreat future for Y her statesmen f future nation- fording a larger , and yet unable opposed by the srs influential in yes and refusing 1 adverting to a ,ot, although wo uch eaiiiestnesa it to the present 3d to belong to ,ve sufiered, and ade. " Are both e is this differ- 'om the United of 184,700.000, I the value of $122,000,000. The balance, therefore, of $37,300,000 being in favour of England. In the year 1877, England imported from the Un-tcd States to the value of |3G7,35 2,000, and exported to the United States to the value of |9H,000,0()0. The balance, therefore, of $269,352,000 being against England.* The change brought about in the twelve years, is the loss by England (in favour of the United States), and a gain to the United States (at the expense of England) of export trade to the amount of about 400 million dollars ^^c annum. The fact is indisputable, for the amounts are those officially returned by the Boards of Trade. "Will the '' Times " in the simple language which expresses clear thought, explain in what manner the fact here noted illustrates the soundness of the (so-called) Free Trade doctrine ? Supplementary Note. — The notable circumstance appears as yet to have escaped the obsorvations of the "Times" and of others, that in Literature, the economic co-relations of Great Britain and the United States, are, at the present time, precisely the reverse of those which prevail in Commerce. For, in Literature, Great Britain is firm in upholding the principle of protection to authors, and conservation of the international rights of property ; whilst the United States are persistent in ignoring these, and in adhering to the system of Fne Trade deliberately adopted by their nation as its economic policy in literature, many years since. There is indeed this diifcrenco . . that whereas the United States benefits greatly by the Free Trade commercial policy of Great Britain, • •* " We have now reached the anomalous position of buying from foreigners exactly twice as much as wo sell them." — The Daili/ Tele- graph of October 17th, 1877. 38 PKKFATORY REMAKK8. it cannot bo arguod that Oroat Britain bpnefitu l>y tho Free Trade policy of thu United Htatunin regard to literature. But, with thiH exception, the effect i8 very Himilar. Great Britain, in itn anxiety to buy foreign pr a stranger, in whoso national education and intel- lectual development they have personally but little concem ; and they to her are as foreigners, near to her in bodily kinsmanship, indeed, but, intellectually, far removed and distant. If this bo bo, what gain can compensate tho people of the United States for so great a national loss ? CANAD.V'IS flOMMERCIAL POLICY. 30 Frco Trade policy tvith thiH excuptioit, «ioty to buy foroi^n I'ificoH tlio iiuhiHtriul iliir iiitcrostft of tlio nation. Just ho, liuy EnKlinh littra- coH tlio cdiicationni iular intorcHtH of itH ly nut 1)0, |H3rliai)H, atosaro injured by yright which iH ho f that policy iH to xposiug it in early progrcBH, and Hcarco ritcrs of emiuenco countrj', who may as belonging to tho any geographically have any national characteristics nro ^[lish, they are, for y tho teachers of h soil, and, as ex- itual characteristics ngers. The conse- 1 highest grade, do lults, which, given kinsman by one of ;h respect, and, per- f or, to her greatest iucation and intol- concem ; and they asmanship, indeed, is bo so, what gain 08 for so great a Article from the "Times" of March lJ)//<, 1H78, referred to and criticized in the forajoinij pre- fatory remarks : — "Ix thoso days, when so many nro drawn away from tho ripfht ftiith, it is a matter of BatiHfttction to find that a motion in favour of ro-adjustiuB tho (^Janadian tarilf in a rrotootionist HonsoliaH boon rejected by tlio Dominion llouso of Commons. Wo foar we cannot say that tho (Janadians aro Frootradors. Thoy are, like their neighbours across tho lino, uninstructod in tho truo doctrino, and their delusions ha\o boon oncourugod by immigrants from England whoso education ought to have prosorvod them from such bnckslidings ; but if they aro not Freetraders, neither aro they dovotod Protectionists. Like many other mon, they think thoy show their political sagacity by holding what aro called moderate viows. They aro not in favour of any prohibitivo mcuHures — this is tho way thoy speak of themselves — neither would they sanction tho unrestricted importation of tho cheap products of European industry so as to drive colonial manufac- tures out of tho market. So thoy approve a tariff including a selected, though largp, list of articles, and imposing upon them duties which are substantial without being overwli-^lming. In this way they demonstrate their moderation, and escape, as they believe, the falsehood of extremes. We ought not to laugh at them too much because in economical knowledge they are just where wo ourselves were thirty years ago, and are content to remain in a backward stage to which so many of our country- men at home are not indisposed to retrograde. Let us rather give thanks that, if they do not soe their way to shaking them- selves free from old errors, they refuse to commit themselves more deeply to them. The motion in favour of stricter Pro- tection has been rejected, and the majority against it was exactly half as much again as the minority in ita favour, 40 Canada's commerciai. policy. " The Canadian House of Commons has declined to approve Sir John A, Macdonald's motion in favour of a re-adjustment of the Canadian tariff. If we were credulous enough to f up- pose that educated Englidhmea must be able to discern their own interests and pursue them, we should marvel that there could be in Canada any Protectionist at all. The case of Free Trade is there so simple and obvious ; the advantages of an un- restricted commerce seem palpable. A huge market lies a-, the door of Canada, and, though its neighbours are unwise enough to throw obstacles in the way of the importation of Canadian produce, the advantages of receiving it are too great to allow the trade to be destroyed. The true function of Canada is to pour over its borders into the United States the agricultural commodities it can send into the market under such favourable conditions, receiving back in exchange those other commodities which, as the prices of the market show, its neighbours can produce more easily than itself. A division of labour would thus be established beneficial to both, and the populations of both countries would be developed, and their well-being in- creased in consequence. Canadians themselves see the force of these truths when they contemplate trade between the province of Quebec and the province o^ Nova Scotia, or between New Brunswick and Prince Edward Island, or between Ontario and all the rest. Inter-provincial Free Trade is good for all. In the same fashion the citizens of the Great Eepublic would re- fuse to erect Custom-house barriers between Massachusetts and New York, or to establish a Customs line between Pennsylvania and Ohio. Why is it foolish to cripple trade between Boston and Chicago, and wise to cripple it between Boston and Mon- treal ? Why encourage the traffic between St. John and Hali- fax, and discourage it between Toronto and Buffalo ? If any Canadian or New Euglander could ask himself those simple questions, ho could scarcely refrain from seeing that interna- tional tariffs are as prejudicial to the interests of those they separate as inter-provincial tariffs would he to the citizens of the same Dominion or Federation ; but simple language is the expression of clear thought, and it appears to be easier to lose :y. Canada's commercial tolicy. 41 ined to approve a re-adjustment enough to fup- to discern their irvol that there le case of Free itagea of an uu- arket lies a. the I unwise enough on of Canadian great to allow jf Canada is to ;he agricultural such favourable ler commodities neighbours can at labour would B populations of r well-being in- see the force of sen the province r between New )en Ontario and ood for all. In lublic would re- ;ssachusetts and Bn Pennsylvania between Boston )ston and Mon- John and Hali- uffalo? If any )lf those simple g that interna- its of those they lie citizens of the anguage is the e easier to lose " oneself in a cloud of words of no definite meaning. We ma}', however, hope that the Canadians are really getting somewhat nearer the truth, as we believe the inhabitants of the United States are, despite unfavourable appearances suggesting retro- gression. The United States and the Dominion havo sufi'erod from groat depression of trade ever since the autumn of 187;1, and it is to this great depression across the Atlantic that wo owe the bad years we have experienced contemporaneously. The depression originated there, and we must look for a revival of our trade to a new impulse of prosperity in the North Ameri- can Continent. The truth is that our heyday and riotous time immediately preceding 1873 — when commerce advanced by ' leaps and bounds '—depended on the activity of the commerce of the United States, stimulated as that was by an excessive expenditure of capital on enterprises that proved to be unremu- nerative. All went well until it was found that the capital which should continue free to support labour had been fixed in worthless undertakings, and there was at once a cessation of prosperity in the United States, which was communicated after a very short interval to Canada and to ourselves. The four years and a half which have since elapsed have undoubtedly been years of trial for Free Trede. Men who had accepted its dictates on trust, without knowing the principles upon whicli they are founded, accused Free Trade as the cause of a depres- sion of commerce which would have been much more sharp and severe had not Free Trade opened up to us other markets to compensate for the partial loss of North American custom. Protection, disguised under the name of Eeciprocity, found advocates here, and inspired its advocates in Canada and the United States with fresh energy to propagate its fallacies among people who were disposed, by a very practical sense that they were in a.n evil economical condition, to accept any plau- sible explanption of their distress. But tho reaction is not alarming, and, if the happy signs we see around us of a revival of trade are realised, it will disappear. In tho United States there is a distinct movement towards a relaxation and simplification of the existing tariff; and the Canadian House 42 Canada's commercial policy. "of Commons have refused to sauction a Protectionist ra-adjust- ment of the tariff of the Dominion. " The worst sjrmptom of the movement in Canada in favor.r of increased protective duties is that Sir Joun A. Macdonald has put himself at the head of it. We do not for a moment sup- pose that he can give it success, but his action is much to be regretted in the interest of a reputation that requires rather careful handling. The career of Sir John A. Maodonald has now been for many years a part of the history of Canada, and when ho quitted offico some years since it was observed with satis- faction that he remained the leader of the Opposi'Jon. He had shown a somewhat distressing carelessness as to the means of retaining power ; but, though cynically negligent of purity of administration, he had kept himself free from the imputation of graver faults. The chance was left open to him of recon- structing his shattered party, and of returning at some future time to power. The temptation to anticipate this future seems to have been too strong for him. Bad times, an inelastic revenue, restricted trade, and unremunorative industry are all favourable to an Opposition. In some way or other th i Government are held responsible for every evil that happens, and the Opposition gain support through mere vague discontent. Sir John A. Macdonald has seized the opportunity of such a juncture to raise the cry of a modification of the tariff, in the hope of rally- ing around him all who have any Protectionist leanings. It is not believed that he shares their errors himself,— this would be inconsistent with much of his past career, and, indeed, his intelligence would not permit him to be deceived by the falla- cies he may countenance, — but he is confident that he can play with these allies for a time, and he would get rid of them somehow if he again became Minister of the Oroww." !Y. itionistro-adjust- aada in faTor.r of Macdonald has a moment sup- L is much to be requires rather moNALD has now iuada, and when 3rved with satis- Opposi'Jon. He I as to the means jligent of purity n the imputation to him of recon- ; at some future ;his future seems inelastic revenue, Eire all favourable Government are id the Opposition it. Sir John A. ich a juncture to ;he hope of rally- ; leanings. It is iself,— this would , and, indeed, his red by the falla- ; that he can play get rid of them THE SIX MILLIONS-HOW TO EAISE THEM. First Letter. To THE Editor of the " Times." Sir, In Lord Bateman's letter, published in the " Times" of Monday last, it is proposed to raise the six millions by making the merchants of cer- tain foreign countries pay it. Wo are asked, " What more legitimate means of relief can be de- vised than to make the too-intelligent foreigner contribute as a toll or octroi on his imports to this country, his quota to our already enormous taxa- tion ? " The reply is . . that we are quite unable to do what Lord Bateman proposes. We cannot make the foreigner contribute to our taxes in such a manner. The effect would be that the purchasers and consumers of the imports upon which the toll or duty was levied, would be substituted for the general body of taxpayers, and made to bear alone the burden of the additional tax. It is quite true that the import duty would protect our own manu- facturer, and in benefiting him, would benefit the labourer. And, moreover, that within certain limits it would be more fair and more just to the general 44 THE SIX MILLIONS — IJOW TO RAISE THEM. interests of the community than the present system, which sacrifices our own producer and gives our home market to the foreigner. There arc, how- ever, three independent practical objections which your correspondent appears to have overlooked : — (1) The difficulty of determining and defining u limit. It will here suffice to point out that the pure theoretical application of the principle of pro- tection must entirely exclude all foreign products (manufactures) which can or could be carried on profitably in our own country if relieved from foreign competition. Hence, since even the most ardent Protectionist would draw back in alarm if required to commit himself to a national policy of exclusion, the difficulty of determining a limit becomes ma- nifest. (2) The gain, direct and indirect, is attended by a loss, direct and indirect ; and the beneficial influence is counteracted by a prejudicial influence, which, in some cases, may more than counter- balance the former. Let us take an example, parti}'' hypothetical, and suppose that the hairs and bristles imported from Russia, used in the manu- facture of painters' and plasterers' brushes, are much superior in quality and are supplied at a con- siderably lower price than those procurable else- where. The eflcct of levying an import duty of ten or twenty per cent, ad val. on tlis article would be to tax the painters and plasterers to that extent. It would bo also prejudicial to the interests of the home brush manufacturer. If the duty were put lIse them. present system, and gives our liere are, liow- ijections wliicli overlooked : — and defining a b out that the rinciplo of pro- •rcign products be carried on ved from foreign most ardent irm if required ;y of exclusion, t becomes ma- st, is attended the beneficial licial influence, than counter- 5 an example, t the hairs and in the manu- ishes, are much ied at a con- rocurablc clsc- import duty of :s article would to that extent, nterests of the duty were put THE SIX MILLIONS — HOW TO RAISE THEM. 45 upon imported wheat and other grain (as a per- manent impost), the Freetrader's old argument would, as a practical objection, again present itself as indisputable, namely that such a tax is unequal, bearing most heavily upon the day-labourer and the least wealthy members of the community, and necessarily increases in severity in those in- auspicious seasons when a scant harvest renders the poorer taxpayer least a' lo to meet its demands. (3) The articles especially indicated as suitable for the application of a fiscal duty, namely, tobacco, wine, and foreign spirits, are already subject to an import duty. Now it has been ascertained experi- mentally, and is considered established aa an axiom in political economy, that the imposition of too high a duty on imported goods defeats its own object, by rendering the profits on smuggling so great as to induce many persons to risk the con- sequences of evading, or more directly breaking, the law.* I will, in a second letter, if your columns are open to me for that purpose, point out that a very important consideration, belonging essentially to the subject of it, is unnoticed in Lord Bateman's letter; and will then endeavour to show that the * To this may be added the remark that to heavily tax tobacco and wine has, to say the least, a tendency to increase drunkenness, and to promote tho use of things deleterious and harmful even when \ised with moderation. 46 THE SIX MILLIONS — HOW TO RAISE TIIEM. an specified objections to the method of Icvyin import duty, may be entirely avoided by the far more beneficial system recently introduced to the notice of the public, as a National Economic Policy, under the title " The Promotion of Home Industry." Your obedient Servant, KUKLOS. March Uth, 1878. mum 8E TIIEM. of levying an ed by the far •oduced to the nal Economic >tion of Home Jervant, KUKLOS. THE SIX MILLIONS-HOW TO RAISE THEM. Secmd Letter. To THE Editor of the " Times." Sir, The letter of Lord Batcman commences by his noting the circumstance that " the country has granted the Six Millions Credit lequired by Her Majesty's Government." And then he asks, "How are we to find the money ? Out of whose pocket is it ultimately to come?" This commencement at once suggests a doubt as to whether the depend- ence of the question he asks upon the manner of utilizing the credit granted to the Chancellor of the Exchequer, is apprehended; or, if apprehended, whether it has not been overlooked by his lordship. Taking the letter as a whole, it seems evident that the writer of it has inferred from the first that the Government intends to take Six Millions of the National Wealth and pay ic away to foreigners, or expend it in foreign territory. In a case of this kind, where the Government asks for a credit with a view to military preparations and precautionary measures, it would be impracticable for the minister to state precisely in what manner the whole credit 48 THE SIX MILLIONS — HOW TO RAISE THEM. will bo used, for ho docs not himself know boforehund which, of the many things suggest-ng themselves as desirable to bo done or to be acquired, may be eventually selected by himself and his colleagues. And, even if he supposed he know this, it would obviously bo inexpedient for the Govern- ment, under such circumstances, to make public its plans and intentions, or to bind and fetter itself in its prosj^ectivo action by promises, as to the mode of expenditure, made to Parliament in advance. The distinction we wish to point out, may be most readily shown by an example of each case. Let us first suppose that the Government, has decided to raise an army of a hundred thousand men, additional to the present organized force, to be composed exclusively of natives of England, Scotland, and Ireland, now living in the home country, and, in order to expedite the business and facilitate the enrolment of men of superior size and physical doveloi^ment, to offer a bounty to those enlisting of £10 (to each). Thus, we should have One million out of the Six Millions disposed of. " But, would the country be aijy the poorer in con- sequence of this expenditure ? Would it have paid away any of its wealth?" No: none at all. What would have actually taken place would be a transfer of some of the nation's wealth to certain of the less wealthy constituents of the nation. Practically the effect would be very nearly the same as if the nation had received a donation of a million pounds. For, if the tax, called for and rendered necessary by the wmmm MM 8E THEM. umsclf know gs suggest'Dfj; to be acquirod, iself and his he knew this, r the Govern- lake public its fetter itself in to the mode of .dvance. out, may be of each case, vremment, has ired thousand nized force, to } of England, in the home e business and perior size and (unty to those e should have IS disposed of. poorer in con- id it have paid ! at all. What d be a transfer ;ain of the less Practically the IS if the nation pounds. For, cessary by the THE SIX MILLIONS — HOW TO RAISE TH1:M. 49 credit, wore judiciously levied and the payment of the whole amount spread over several yearn, it would be scarcely felt by the taxpayer: whereas the expenditure even of the One million pounds by the recipients of it from the Government, might, in consequence of the advantageous manner in which that expenditure would take place, very sensibly affect the business of the whole nation by its stinm- lating influence on the internal trade of the country.* Next, let us suppose another One million to bo expended in tho purchase of military and naval * An argument for or against a large army of regulars (pro- fessional soldiers) is outsido the purpose of the present letter. But to the minds of many persons the mere supposition, as an example, will at once suggest the argument, and call up opi- nions either in favour of, or in opposition to, an increase of the present army. We are desirous, therefore, to make here a few remarks on certain opinions now very prevalent which appear to be one-sided and erroneous. It is quite commonly inferred that the men composing the army represent so much labour* power or productive capacity diverted from industrial employ- ment, and hence constitute, practically, a national loss of wealth. A little cai.-eful consideration will show that such in- ference can only apply where the aggregate labour capacity does not exceed the work to be done. In Great Britain the number of labourers has, for a long time past, been much in excess of the quantity of labour oflfering itself for their employ- ment. Consequently, there is not only no diversion of labour, but employment ia found for those who otherwise would be P 60 TnE SIX MILLIONS— now TO RAISE THEM. storoH — iirms, ammunition nnd clothinj^, all of wliidli aro products of native industry and tlio property of unemployed.* The nrguniont is, therefore, narrowed to the good or bad effect of nailitary employment on men in the eervico, and to the utility or tlio harmfulnoss of maintaining a, largo army. As to the utility of an army, if used for its military purpose only, that utility must be, in a considerable measure, dependent upon the circumstances of the nation. The value of a well- founded fooling of security, whether on the part of an individuH or of a nation, should not be lightly esteemed. The difforenoo between a nation . . feeling, on the one hand, that all muy he safe, and that, even if certain untoward eventualities should place it in apparent jeopardy, good fortune and able manage* raent might suffice to carry it through perils which have proved disastrous and fatal to others . . and feeling, on the other hand, that by the completeness of its preparations and fullness of its defensive power, it is practically secured from serious danger, however suddenly and unexpectedly the necessity for the exer- cise of defensive power may arise, is very great. A nation in a chronic state of incertitude as to its ability to do, and of unreadiness to do at the right time, that which it feels and knows that it ought to do, is, to say the very least, not in a condition of robust health : and, should there bo, behind this, any degree of fear or nervous apprehension as to the con- sequences of endeavouring to fulfil its duties and maintain its * That is to say: the number of the unemployed is di- minished by the number of the additional soldiers. : TIIEM. ■, all of wliioh property of arrowed to tho on mon in the f maintaining a, military purpose isure, dependent value of a well- of an individua The difforenoo [, that all may be itualities should id able manage* lichhavo proved tho other hand, id fullness of its serious danger, jity for the oxer- ^eat. A nation dlity to do, and it which it feels ry least, not in a bo, behind this, as to the con- and maintain its lomployod is di- ers. THE SIX MILLIONS— now TO RAISE TIIEM. ol our own countrymen. Hero again wo lind wunply a transfer of wealth, leaving tho country no jjoorer honour, then, indeed, tho condition of the nation is that of siukucsa and ill-lioaltb. With roforonco to tho effect of military employment on tho mon engaged iu it, there aro persons who regard it as, on tho wholo, demoralizing in its influouce. Now, it is true that tho stildier's life in a time of peace, compared with that of tho orJiuary labourer, is not so conducive to habits of steody in- dustry. But this comparison supposes the labourer to havo regular employment which an overcrowded labour market may not afford him ; and, on tho other hand, there does not appear any necessity wliy the soldier, in times of peace, should bo made to pass much of his time in enforced idleness. A fre- quent, perhaps the most frequent effect of military service, may bo thus described. A young man enters the army. lie is what is termed a clodhopper. Awkward and uncouth ; his faculties seem to bo little more than rudimentary. lie appears to bo almost hopelessly stupid; slow in manner and un- tidy in dress ; he seems to havo scarcely wit enough to caro what others t'link of him. After a few years' service the young man leaves tho army, or obtains leave of absence, and appears amongst his old friends metamorpJwsed. Neat in his dross now, quick in manner, intelligent, and, comparatively speaking, well informed, tho chango wrought in him by military disci- pline and tho educational process to which ho has been subjected is marvellous to his old friends. We are of opinion that tho educational process, which is better than it has been in former times, is not so good as it may bo rendered j but, taking tho 62 IHE SIX MILLIONH — HOW TO KAIHK TIlKXf. in a direct hcuso, and occasioninj^ indirectly tlio Htiniulatinfj: effect on trade already alludinl to, only in this case- less general in its influence than in the former, because mainly confined to those particular branches of industry whose products formed a part of the purchase?. Wo will now p^o to our Indian Empire for an example, and ima<,^ine that the Government has determined to raise an additional Indian army of two hundred thousand natives of India, and, as an inducement to enlist, gives to each suitable man who proffers himself a bounty equal to fifty shil- lin^^s. The half million thus invested is ecpiivalent to 80 much wealth gone from the home country, which, taken nlone, would bo so much the poorer, but as both tho home country and India belong to tho British Empire, the direct benefit and gain to India constitutes an indirect benefit and gain to the homo country. And to India itself, it would bo similar average soldier at the present time, after a few years of military service, and comparing him with tho raw recruit, is not tho eoldier worth more to tho nation to which ho belongs than tho untrained man ? If it bo allowed that tho trained soldier is of more value than the recruit, it must be admitted that tho iu- ci*easo in value, whatever it may bo, is a product of tho military service. So much increased value per man, multiplied by tho number of the men in tho army, will then give an item of gross profit or gain to the nation, as a aet-off to the oxponso of that army's maintonancoi » IHK Til KM. indirectly tlio lludoil to, only ICO than in tlio lOHC particular I formed a part l*inil)iro for an )Voriuncnt lin.s ndian army of [lia, and, as an I suitable man il to fifty shil- is equivalent to jountry, which, poorer, but as belong to the 1 gain to India lin to the homo uld bo similar V years of military recruit, is not the I belongs than the rained soldier is of aitted that tho in- uct of the military multipliod by tho TO an item of gross le expense of that Tin: HIX MILLIONS— HOW TO UAISI", TIIHM. M in its eflc'ct to a donation of half a million expended in that country in tlie most useful manner. IJut now let us imagine that our Govermuent is impressed with the imi)ortance, in tho event of war, of Austria being well prepared to act in military concert with this country, and, finding that tho Austrian Goveriunent is desirous to d(j so, but is prevented or impeded in its action by want of lunds, decides to give Austria a subsidy of three millions. Evidently, in this instance, it would bo just so much actually paid away by tho British nation, and invested in a polilical speculation (so to speak). Tho investment might bo a good and judicious one, or the reverse, according to tho circumstances and tho interest of the nation ; but tho three millions, and the potentiality belonging to it as capital; would bo gone from our territory and out of our possession. Comparing these three cases together, tho dependence of the answer to tho second part of Lord IJateman's question upon tho numncr of tho expenditure becomes evident; for in tho first example it is merely a transfer of property from certain of tho constituents of tho nation to certain others of them which takes placo. Tho expenses of tho nation are not increased by the transaction, nor are its resources diminished thereby. The amount expended by the Government passes into the hands of certain of its own subjects, and, being employed by them, yields them interest. Lot us suppose they pay that interest annually to 64 THE SIX MILLIONS — HOW TO RAISE THEM. the Government, and that the Government, having borrowed the money in tlio first instance, pays interest annually on the loan. Since the Govern- ment would then receive interest and pay interest on the same sum, it becomes evident that the nation has suffered no loss of wealth by tlie internal transferrence, nor can it be held, in a reasonable sense, to have expended any part of its wealth. In the second example, there is an actual trans- ferrence of wealth from Great JJritain proper to ladia ; and a correct answer to the question whether the nation has expended a part of its wealth, must bo dependent on the moaning attached by tho enquirer to the expression nation : whether by it he means to include or to exclude the inhabitants of India. In the third example, the nation utilities a portion of its wealth, speculatively, in tho endeavour by in- fluencing the course of events outside its own terri- tory . . to bring about or to determine a certain future event favourably to its own interest. In this case, therefore, the nation, which buys an event pre- sumptively beneficial, actually expends a part of its wealth as tho purchase-money. Your obedient servant, K UK LOS. LoNDox, March ICM, 1878. *»». «H, 3E Til KM. iment, having iistancc, pays 3 the Goverii- 1 pay interest hat the nation the internal a reasonable ;» wealth. actual trans- lin proper to 3stIon whether wealth, must iclied by the k^hother by it inhabitants of \hcs a portion leavour by in- its owntcrri- certain future In tills case, n event pre- s a part of its irvant, K UK LOS. APPENDIX A. — ILLUSTRATIONS. Advertisements from the " Times" Newspaper of March 20th, 1878, illustrating a certain part of our anjument (see "Industrial Policy," {Note) pages 96 to 99). And also, the Second Letter addressed to the "Times." HUNGARIAN GOVEENMENT FIVE per CENT. LOAN, 1871.— Tho COUrONS duo 1st April noxl will be I'AID on or after tbat (lute, being previously left seven duys for e.\amination. H. UAPIIAEL ana SONS. Ac. 2o, rbrogmorton-gtreet, London, E.G., 18th March, 1878. IQUIQUE and La NORIA, TISAGUA, and SAL do OBISPO and JUiVCTIOX EAILWAYS, Peru.-The Trustee* beg to inform tho Bondholders that they have received advice that tho gross earnings of the Railways for the month of January last have been as follows, viz. :— Iquinue Section.— Solos 167,112 .55. I'isagim Section.— Soles 50,948 13. CARL EGUERT, for Self and Co-Trustee of Itniiquc, &c.. Railway, London, 18th March, 1878. ' ROUMANIAN LOAN.— The holders of BONDS of tho TAYMEN r ol tho COLl'ON due Ist April, 1878, will take place onnnd after the Ist Apnl next, m Pans, at tho offices of the Socioto Goncralepour Favoriser le Duveloppement du Commerce et de I'lndustrio en France, 64, Rue de Pro- vence, from 10 till 4 o'clock, and in London, at tho Agency of tho Societo Gencrale, 38, Lombard-street. Tho Manager of the Socioto Gonorale, E. IIUARD. BOSTON CITY STERLING FIVE per CENT. BONDS x\EW RRUiVSWICK SIX per CEx\T. BOXDS. C.ANAD V FIVE ner CRXT. BONDS, CANADA FOUR per CENT. GUARANTEED BOxNDS and RUPERT'S LAND FOUR per d'ENT. GUARANTEED BONDS -The DIVIDEND WARRANTS falling due on tho Ist April next on these Bonds will be PAID on that or any succeeding day (Tuesday and Friday excepted) between the hours of 10 and 2 (Saturday 10 and 1), at the counting-house oi' Banng Brothers and Co., 8, Bishopsgate-street Within, where lists may as usual be obtained. B Bonds UENOS AYRES SIX por CENT. LOAN of 1873 —The . "lyiDEND AVARRANTS falling duo on tho 1st April next "on these ds will bo PAID on that or any succeeding day (Tuesdav and Fridav ev- by tho same firm. Lists for both Bonds und Coupons' may be obtainod"at"No! 8, Bishopsgate-street Within. QT. PETERSBURG RUSSIAN CONSOLIDATED RML~ O WAY OHLIGATIONS, FIVE per CENT., SECOND EMISSION - Iho Commission Irapcrmle d Amortissemont notittes to the public that on the 17th F ibruary (1st March) 1878, the drawing of the Obligations was effected according to the lableau d'Araortissement printed on the back of each Oblisa- tion. The following NUMBERS of the OBLIGATIONS were DR VWN •- At £1,000 sterling, etc., etc., etc. APPENDIX A. — ILLUSTRATIONS. EMriRE OF I3RAZIL. — SAN PAULO and EIO de JANEIRO SIX per CENT. DEBENTURE BONDS for £600,000, secured by tho gunranteo of the Provinces of San Panic, and of the Imperinl IJrazilinn" Government.— Notico is hereby given, that tho HALF-YEARLY INTEREST, duo 1st April next on tho above IJonds, will bo PAID on that or any succeeding day, at tho offices of the undersigned, 31, Thrograorton-street, E.C., where forms for listing the coupons can bo obtained. The coupons must he loft three dear days for examination, and will neither be received nor paid on Saturdays. LOUIS COHEN and SONS. 18th March, 1878, 31, Throgmorton-strcot, E.C. RUSSIAN ANGLO-DUTCH FIVE per CENT. LOANS of 18G4 and 18G6.— The DIVIDEND WARRANTS falling due on the lit Apiil next on these Bonds will be PAID on that or any succeeding day (Tuesday and Friday excepted), between the hours of 10 and 2 (Saturday 10 and 1), at the counting-house of Paring Brothers and Co. ; and the 1,208 Bonds ofthelioan of 1864 (being 860 Bonds of £84 158., and 348 Bonds of £100 each), drawn in St. Petersburg on tho 2nd (14th) December, 1877, for payment on tho 1st April next, the particulars of which wero advertised in The Times of the 9th January, 1878, will also bo Paid by the same firm between the 1st April and tho 30th May, 1878. The Bonds not presented during that time will only bo paid at tho subsequent periods of the payments of the half-yearly interest. Lists for' botli Bonds and Coupons may bo obtained on application at the rounting-houso of Baring Brothers and Co., No. 8, Biahopsgato-street Within, E.C. ExrLAXATOiiY Note.— Tho phase of our argument to which these illustra. tions apply may bo also hre briefly indicated. Wo are not by any means desirous that England's wealth should be kept exclusively for her own use ; nor yet that tho enterprise of Englishmen should be artificially (unnaturally) restricted from a liberal promotion of the interests of other countries. But we are very earnestly desirous of drawing attention to tho fact that, whilst Englishmen for many years past have been investing wealth in foreign interests, in such a manner and in such amount, that we can scarcely avoid employing tho terms "lavis/iint; and squandering tho national wealth" in speaking of it, there are national interests of tho highest importance languish- ing, and now suffering most grievously, for want of tho aid and support which can be (and might have boon) rendered by tho judicious employment at home of tho very wealth which wc arc now in such haste to throw out of our Imnds, JS. 3 and EIO de iNDS for £600,000, and of the Imperinl JO IIALF-YEAULY I bo I'AID on that or , Thrograorton-street, . The coupons must be received nor paid OIIEN and SONS. SNT. LOANS of S falling duo on the IT any succeeding day and 2 (Saturday 10 1 Co. ; and the 1,208 a., and 348 Bonds of December, 1877, for h wero advertised in aid by the same firm B Bonds not presented Dds of the payments on application at the 8, Bishopsgato-street wliieh these illustra- re not by any means voly for her own use ; tificially (unnaturally) ler countries. But we the fact that, whilst ng wealth in foreign we can scarcely avoid national wealth" in k importance languish- aid and support which s employment at home to throw out of our «'■-