a •••■« *••■•««•« •• a^lS' ■■•— W—— ^afcaM«^«i A PROTEST AOAIN3T THE I INCREASED TAXATION ADVOCATED BY THE CANADIAN OPPOSITION AS I THEIR NATIONAL POLICY, i BEING AN I ADDRESS TO THE ELECTORS OF MONCK. [I i^ ■ BY J. D. EDGAR. THE GLOBE PRINTING AND PUBLISHING COMPANY. 1878. I a m ^ • Jr / . :'. t .^f, \- A, vjt:r yh^d^..^ (3f^<.^ CONTENTS. PAOC Adiiress to the Electors of Monck -*..., 5 Protection in the United States - - . . . ^ .7 The Interests op the Mother Country 10 Duty on Barley \\ Duty on Oats 12 Duty on Whkat I4 Duty ox Cop^x ]4 Duty on Wool 15 Chances for Agricultural I'RjrRcTioN I5 Who Pays the Dutifs ? i; Effect of American Dutifs on Pricks in Cavauv - - - 17 Our Trade Relations with the Unitko S.ates - - - - 17 Opposition Policy Interpreted 18 Balance of Traoe 18 Duty on Coal 20 Protection for Manufaoturkls 21 Conclusion - -' - 33 v.-/ r. i -s f^ ^' 1 ■ A<-8J TO THE ELECTORS OF MONCK. Gentlemen : — At the unaninioiis call of the Reform Convention of your County, I have taken the field as Candidate for the House of Commons. In this contest a new issue has been raised, and the Country is asked to adopt what the Opposition call a *' National Policy," and to send Sir John A. Macdonald back into power to carry it out. My opponent has published, and distributed amongst you, a reprint of several speeches Avhich he has delivered in Parlia- ment, mainly discussing the "National Policy." Although no one in the House seems to have felt it necessary to reply to them, still by answering them, I am given a convenient opportunity of laying before you the views Avhich I think ought to prevail upon this question, especially so far as it embraces what is called Protection for the Farmer. The general management of affairs by Mr. Mac- kenzie's Administration I am prepared to defend in public against all-comers during the canvass, and in these pages it Avill not be dealt with. At this sea.«:.on you are all busy gathering a most bountiful harvest, and have but little time to go out to political meetings ; yet you are asked by the Opposition to cast your vote at the coming Election to turn out the Government upon this question of Protec. tion, without a fair opportunity of hearing it dismss^d. They say that you are deeply interested in it, and I admit that you are. Taxation touclics your pocket, and the Tariff closely affects your prosperity. You are told that you must submit to more taxes for your own good, and I ask you not to believe it. I also ask every Conservative elector to study this question before going blindly to vote to increase his taxes. In the following pages an effort 6 has been made to discuss, plainly and briefly, Jhe chief points of the " National Policy," and if the elector will sit down and read, with an honest desire to understand what is most to their own in- terest, I have no fear of the result. The conclusion they will inevitably draw is, that to increase taxation is no way to get richer, and that this '' National Policy " means National Ruin. Your obedient servant, J. D. EDGAIl. July 15th, 1S78. : ' ' • • ' . ' .;■ ■ , . - - f . ■ ■■ A PROTEST AGAINST THE INCREASED TAXATION ADVOCATED BY THE CANADIAN OPPOSITION, AS THEIR NATIONAL POLICY. Protection in the United States. There are many things about the United States and their people, which we can admire ; and that their experience should be fruitful of lessons to us I am prepared to admit. I can go still further, and agree with Mr. McCallnm in thinking that we may learn much from their experience of a protective tariff. The deplorable results of their ex- periment of protection might well cause all patriotic Canadians to dread the advent to power of a lyaxty in our midst pledged at all hazards to try the same rash experiment upon us. ^Ir. McCallum devotes jnuch of his eloquence to praising the American high tariff, which he claims to have produced the following results : (1) A rapid increase in popula- tu,n ; (2) Extraordinary manufacturing pro8]jerity ; (3) Great commer- cial success. I will briefly notice these points in their order, and endeavor to ascertain if we have any good reason to envy our neighbours, or to imitate their example. As to increase of population, it is undoubtedly true that the United States as a whole has largely increased, but where has that increase been ? It has been chiefly in the broad plains of the Western States, wkich opened their arms to receive the surplus popu- lation of ohter countries, and offered them the cheajjest and richest lands to be had in the world. The New England States forced a pro- tective tariff u[)on the country, and enjoyed its benefits to the fullest extent, yet they have furnished abo\it (500,000 emigrants to other States of the Union, and in many localities the'- population is absolutely decreasing. Then, as to the manufacturing industries of the United States. It i^ among them, the highly protected and therefore fortunate class, that we should surely find unmistakable signs of prosperity. As to their condition, I propose to give you, first, as an authority, the famous New England Protectionist, General Ben. Butler ; and secondly, the recent proprietor and present correspondent of the Toronto Mail, the pro- tectionist organ in Canada, and then some leading Americans. And here is what Gen. l^utler, a protectionist, and hailing from the large manufacturing State of Massachusetts, had to say at the last session of Congress Ho was appealinj^ to have tlie (loverninont pro- vide money to settle tlie distio-jiiud urtizaus of the cities oji fariu lands and said : " There is no fact more patent, no mncti more ])ortcntous and alarmin/j "to all who carefully cxaiiiiiie the stiitc of the country than tho ifreai J^fr cities of the West. *' By industrial classes, I mean those who .support themselves hy >vage8 for "their labor, whether skilled or unskilled. " All classes of employers of every branch of bu.siness have been rcduc'ni'j *' tlip wimbcr of their cmiilojiecH and tlir ratvs of vtujis within the strietest "and sternest pos.^ible limits, until hmidn'ds (if ihnnKdud-t of indn.strinas *^ mi' n and women and their fa inilien, iiiko hnvr. lnriUfore lived from, wagcM, *^ are reduced to the point of starvation furfhevuiidot einpfoi/iiicid,, or are *' barely eking out existence upon the too ineof/re returns from their labor, 'i'lie " state of things has come while bountiful harvests have been gathered in " year after year, and the granaries of the West are bursting with breatl- " stutts ; her plains and meadows teeming with cattle, sheep, and swine " for meat, and all this in aut himself at the head of it. We do not for a moment suppose that he can give it success, but hia action is much to be regretted in the interest of a reputation that requires rather careful handling. '^■^****** The chance was left open to him of reconstructing his shattered party and of returning at some future time to powei. The temptation to anti- cipate this future seems to have been too strong for him. Bad times, an inelastic revenue, restricted trade, and unremunerative industry are all fav- ourable to an Opposition. In some way or other the Government are held responsible for every evil that happens, and the Opposition gain support through mere vague discontent. 8ir 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 hini 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 fallacies 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 Crown." Surely if any politicians deserve to be pitied they are Sir John and his followers. If Mr. MoCallum be a reliable authority upon any sub- ject, it is upon the policy of the Opposition, and we learn from him that their national policy was to be "framed in the interests of the mother country." The moment it became known in England it was repudiated antl denounced, and they paid Sir John the doubtful com- pliment of believing that he used the cry while he had no faith in its wisdom, and w^ould " get rid of it somehow if he became Minister of the Crown." They praised his intelligence at the expense of his honesty, if Mr. McCallum be really in earnest, I am afr.aid we can only admit his honesty of purpose at the expense of his intelligence. Duty on Barley. ..., , ,, , . ^^r,. It is claimed by the Opposition, or the "Taxationists," as they should be properly called, that the Canadian farmer would be benefited by putting a duty on barley that is imported into Canada. Now there are several reasons why that course could do us no good in the world. We raise a great deal more barley than we require for our own use, and therefore we have a large surplus to sell out of Canaay toll to our people c»n its way to Europe. And because the foolish Americans have injured themselves by putting a duty on wheat, we are asked to do the same, and thereby destroy all our valuable handling of their grain. Duty on Corn. Mr. McCalliim and the Opposition generally advocate a duty on com to prevent its coming in from the L^nited States. We will, therefore, con- sider whether Canadians generally, and Canadian farmers in particular, are the losers by the present state of aJQTairs. It must be perfectly ap- parent that all who desire to purchase Indian meal as a cheap and whole- some article of food, when wheat flour is often too dear for them, would not submit to have its price raised by a heavy duty. How would it then affect the farmer ( A large portion of the Indian corn imported is pur- chased by the farmers ; and is it likely they would buy it unless it were profitable for them to do so ? It is very evident why it is a profitable transaction. Taking the returns for the last five years it will be found 15 that at the average prices a fanuer could buy nearly two busheis of com for one bushel of peas or barley. Did it not, therefore, pay him well to buy corn for feed, and to raise peas and barley to sell, instead of using those articles for feed ? Sometimes a farmer may not raise enough wheat for flour for his family, or perhaps he may have sold too much and not kept enough, is he not, in such cases, glad of the chance to buy the cheap American Indian meal ( L'y reference to the Cus- toms Returns it will be seen that in the Spring of 1877 there were im- ported at Dunnville, from the United States, 10,470 bushels of com at an average of 52 cents per bushel, and 200 barrels of Indian meal at $2 per barrel. It was all sold in the village of Dunnville, and chiefly to farmers. Would those who purchased it ^esire to be prevented from doing so again by high duties ? Duty on Wool. The prices obtainable for wool this season have been unusually low, and it has been suggested that if we only had Sir John Macdonald in power again, the price of wool would at once go up. Let us see if this be not an audacious attempt to pull their own wool over the farmers' eyes for political purposes. The simple point to be inquired about is, Have we a sufficient demand in Canada for our own wool, so that the price would go up if the American wool were kept out ? There are large quantities of woollen tweeds manufactured in Canfwla, but they do not manufacture tweed from our wool at all, because it is not suit- able. If our farmers chose to abandon the raising of Liecester and- Cotswo.d, and other long-woolled sheep, and introduced Merino and flne-woolled varieties, they might supply our home demand. It is open to them to do so, but 1 am much mistaken if they desire to be forced to do so by politicians. I am told thsit long-woolled sheep are more Ignited to our climate, mature sooner, have a more valuable carcase, and produce more wool. Therefore it is to the advantage of the Canmlian farmer to raise that kind of wool, even if the Canadian manufacturer does not want it, and has to buy the sort he requires from the Ameri- cans. Surely it would be tolly for us to put a duty on the foreign wool, the raw materials which our manufacturers have to buy, when we cannot undertake to supply it to them ourselves. Yet this is one of the changes which the Opposition are advocating so loudly. Chances for Agricultural Protection. There arc always some people guided by mistaken ideas, and per- haps there are a few Conservative farmers who have been persuaded by i their leaders that agricultural protection, in the shape of high duties upon the products of the farui, would be a good thing for them. To such men I would say — " Sir John Macdonald knows you can never " have agricultural protection. He was in power for many years, and *' he abandoned the idea, and last session showed that he could not get *' the Conservatives from any other Province to vote with him in its "favour." In 1868 Sir John had a large majority at his back, and repealed the duty on flour. He said on that occasion : " The flour tax I " had been imposed as an assei'tion of the independence of the country I " against American exclusive legislation. It had been maintained in " this view until it had been found to work oppressively on certain '* sections of the coiinminity, and so now it was repealed as a step in '' the right direction.'" It seems that to-dpy he is promising the farmers and millers to take " a step in the wrong direction." In 1870 Sir John's government did introduce a tax upon grain, flour, and meal, and the Toronto Leader thought they were wrong, and that they knew them- selves that they were wrong. In 1871, the House, in which Sir John had a large majority, deliberately repealed these duties, and thereupon the Leader rejoiced in these words : '* We must, therefore, exjtress our " unfeigned satisfaction that the sense of the House has been so unmis- " takably pronounced in favour of the abolition of duties, and that " the exploded theory of protection, receives such little favour ui the High *' Court of Parliament." It .appears, then, that according to the chief organ of the Conservative party at that time, the thetjry of i)rotection Avas "exploded" in 1871 ; yet the whole party, big guns and little guns, are trying to fire it oft' again in 1878 I But let us see what happened in the very last sessicm at Ottawa. On the 8th April, 1878, Sir John Macdonald sui)ported and voted for the following resolution: " Whereas a large quantity of wheat and "j flour has been imported into Canada within the last few years, this *' House is of opinion that the interests of Canadian farmers would be " promoted by the imposition of a laced upon iniported goods by consumers, I wonder M". IMcCallum has not hit upon a simple but efficient plan of making the Chinese pay all cmr revenue. They certaiidy are the producers of tea, and we .are the consumers : what could be simiiler than raising the duty on tea as higli as necessary to meet the revenue required by us, and of course the Chinese would have to pay it ! Does not this example show how \itterly childish is all that array of figures based upon that silly theory ? And yet you cannot read or listen to an opi)08ition orator who does not start oiit with assuming that if we put duties on foreign goods tiic foreigners will i)ay them. Effect of American Duties on Prices in Canada. From the brief consideration already given to the question of the tffcct t)f American duties upon certain grains, it has become evident that in those cases, at least, their duty is far more onerous upami)hlet, at page 12, I find he gives the balance of trade against us in 1872, when business was flourishing, as $28,701,019 ; while in the hard times of 1870 it is given as only $i;J,8(K),783 ? I only need appeal to any candid, sensible man, and ask him if it is not evi- dence of a very poor side in ])olitics when the figures given in Mr. McCallum's own speeches prove the utter weakness of his arguments. Fancy asking you to believe that times were worse in 1872 than in 1870, because the balance of trade was more than twice as much against us in 1872 as in 1870. How is it, too, that Sir John is not blamed for allowing the balance of trade to be more than double as nuich against us under his government as under the present administration ? I do not pretend to say that a country may not be injured by over importation of manufactured goods, just as it may be injured by over manufacture of goods at homo. Bolh are mistakes, and, of the two, over i)roduction is the more injurious, because then all the loss falls on our own people, but those who over import (m credit often fail to pay the foreign creditor, who is thus made to share in the losses. Duty on Coal. On page Mr. McCallum proposes to benefit the mining classes by taking the duty olF Tea and putting it on Coal. He says " By trans- " f erring the duty from tea to coal a great stimulus would be given to *' the mining interests, and no hardship would be imposed on any "class." Before making this statement he certainly should have as- certained whether the mining interests desired or required a duty to be placed upon ccal or iron ore. He had no doubt heard some con- servative politician say so, and that was enough for his purposes ; but I propose to call as a witness Mr. Myles, the owner of the Snowdon Iron Mines, in the County of Victoria, in this Province, Avho is going heartily into the working of them. Shortly after the announcement of Sir John Macdonald's National Policy last session, Mr. Myles was formally asked his opinion of it. I give the question and answer. Question. — " What etlect would Sir John Macdonald's national poliey have on the iron ore bus^iuess and that of smeltiuL^ works ? " Answer by Mr. Myles. — "/< would utterly ruin them. The very agita- tion of this 'uatiooal policy' scheme is calculated to upset all my plans. In the first place, I would require 28,000 tons of coal a year, and a duty of seventy-five cents or a dollar on that would put an end to the smelting business. I must send iron ore to the States to bring back coal, and the agitation of the national policy has already had the eU'ect of producing a similar agitation in the States. I was over there the other day and called on a gentleman in the business, who showed me a letter he was writing to Washington urging that the American Government put a duty of one dol- lar a ton on Canadian iron ore. Just see how 1 would be ruined between these two fires. I want no* protection. Some Conservativfe^ in Toronto came to me a few days ago, and said, ' Mr. Myles, the elections are soon ! 21 cniiiiiig ofl", and wo w()\il(l like your assistanci!. You wnnt protection, don't h'lU, for your iron ore?' I told them : ' No, gentlemen, no protection for Jiiie. It would ruin nie. Just leave that question alone, if you please.' " Most manufacturers use coal as a motive power and, if it l)c made to cost more, they must raise the price of all the articles they sell to the farmers. The castiufrs of all A^'ricultural Machinery would he raised in price, andconseciuently the machines , so would carriages and waggons, and particularly stoves. And recollect, you are asked to pay these ad- return to power on this'hollow cry they would be found igno-niiiiously sneaking out of the fulfilment of the pnmiises they have so lavishly and boldly maile. Let us .shako ofi' the fit of tha blues, that the Opposition orators are giving us by their incessant whining over our condition. Let us awake from the nightmare of hard times and increased taxation, to look at the brightening prospects that surround us to-day. Tho uni" versal wave of business depression, which has swept across the world, has touched us more lightly than any other civilized ct)untry ; and Providence has made our land to ?milo with a rich and bounteous harvest. Is this a timo to try experiments with our tariff, and ti> im- pose taxes that are not required for revenue ? On the contrary, wo should avoid all rash changes that unsettle the trade of a country, and should aim rather to lighten than to increase the burden of taxation. Our natural resources are unsurpassed, our people are thrifty and in- telligent, and it requires but our own honest industry to start us again on a bright career of happiness and prosperity. I ■i