^<>^> ^.■1^^ %^ IMAGE EVALUATION TEST TARGET (MT-3) 1.0 1^ I.I If: lio 2.2 11.25 Photcpaphic Sciences Corporation 2.0 1.8 LA. 111.6 23 WEST MAIN STREET WEBSTER, N.Y. 14580 (716) 873-4503 ^v iV <^ 5b \ :\ %\? \ ^ I! ^ "•♦fc.. Sx Ex. Occidanie lux: J^Pcoi Sommep Junp. of Tonanto . VS4 J-RINTED AT INTEl.I.lGENCKR OKKICK. HEI.LEVILLK, ONT. TABLE OF CONTENTS, INTRODUCTION and summary of work accomplished - - Page 9. THE INTER-COLONIAL CONFERENCE of 1887.— First reference by the Queen to a proposed Conference— Extract from letter of invitation by the Secretary of State for the Colonies- Official report of proceedings— Subjects for consideration— List of Representatives present— Addresses by Sir H. Holland— The Mar- quis of Salisbury— Sir Alex. Campbell, of Ontario, on the defences of Canada— Mr. Hofmeyr on Preferential Trade— Closing remaH-s by Sir Samuel Griffith— Extract from the Times on the conclusion of the Conference. - - . . . Page 1 7. THE CHAMBER OF COMMERCE CONGRESS 1892- The President's, Sir John Lubbock, address— The Lord Mayor's welcome — Lord Brassey's Motion— Discussion on Motion for a Commercial Union on a Free Trade basis by Mr. Nevill Lubbock— Mr. R. R. Dobell— Mr. P. H Burton— Sir Charles Tupper's Amend- ment in favor of Preferential Trade— Addresses by Sir Donald A. Smith— Hon. A. T. Wood— Mr. D. Plews— Mr. M. C. Ellis— Mr. J. K. Perrault, Hon. J. Ballantyne and others— The result of the vote— Other matters considered at the Conference - Page 43. THE MISSION TO AUSTRALIA— Extracts from the official report of Sir Mackenzie Bowell— Order in Council authorizing the mission— Visit to Hawaii, Sydney, Queensland, Victoria, South Australia-Proposals for an Inter-Colonial Conference— Extracts from the "Sydney Morning Herald," the "Melbourne Argus," the " Sydney Evening News." --.--. Page 50. 1 THE OTTAWA CONFERENCE— Those who were present —Opening proceedings by Lord Aberdeen— Addresses by Sir John Thompson— The Earl of Jersey— Organization— Debate on resolu- tions brought forward by the Hon. G. E. Foster and Sir Henry Wrixon and the vote thereon — Pacific Cable — Improved Mail Service. I'age 55. VARIOUS PROPOSALS FOR A CUSTOMS UNION FROM "THE STATIST MAGAZINE." - - - Pa^^e 66, ^ i ! Ml THE THIRD CHAMBER OF COMMERCE CONGRESS 1896— Canadian Associations represented— Addresses by the Hon. Joseph Chamberlain — Resolution of the Toronto Board of Trade, moved by Mr. E. B. Osier, M.P., seconded by the Marquis of Londonderry— Amendment by Sir Donald A. Smith — Addresses by Major Gen. Twigge— Mr. Thomas Macfarlane— Mr. W. F. Cockshutt —Mr. J. Castell Hopkins— Sir J. G. Colmer— Mr. Edgar Tripp— Mr. W. H. Mitchell -Mr. F. Arnoldl, Q.C., and others— The vote- Codification of Commercial Law— Resolutions on various subjects — Banquet at the National Club to Toronto's Delegates - - Page 8r. PARLIAMENTARY REPORT ON THE MOST-FAVOR- ED-NATION-CLAUSES IN FOREIGN TREATIES - Page 103. COLONIAL TARIFFS, AND STATISTICS OF SHIPPING, WITH THE UNITED STATES RECIPROCITY CLAUSES. Page 107. FEDERATION BY REPRESENTATION.— The permanent uniiy of the Empire — Lord Beaconsfield — Australian opinions — Sir Oliver Mowat— Sir Wilfrid Laurier — Lord Sherbroke — Sir F. Napier Broom — The Constitutional procedure — French Colonial representa- tion — British approval, Page 116. EXTRACTS from the speech of the Canadian Premier, the Rt. Hon. Sir Wilfrid Laurier, G.C.M.G., at Quebec on his return from the Jubilee celebration in England, August, 1897. INDEX. Aberdeen, the Earl of Adamson, J, • Arbitration Arnoldi, Q. C, Frank • Ashtrn, Ralph S. Australian Confederation '• Delegates Mails . Navy I'AUE. 55. "6 • . 86 - 96 - «3. 91 7«. 75 114 ■ 55 - 19, 3« 19, 28, 29 Egyptian Campaign Ellis M. C. Ballantyne. Hon. W. J. Beaconsfield, the Earl of Beauregard, Ilonore Belleville Delegates - Blake, M. P., Ed. Bowell, Sir Mackenzie Brantford Delegates Brassey, Lord - Brice Q. C, Seward British Empire League " Preferential Tariff 45, 46, Burton P, IL - ".50. 57. 71. 12, 58. II, II. 47 ti8 82 Si - 82 81 81 43 79 15 74 45 Cable Pacific Calgary Delegates Campbell, Sir Alex. Canadian Defences • Mails - Caron, Sir A. P. Chamberlain, The Rt. Hon Christie, Wm. - Cockshutt W. F. - Colmer Sir J, G. Colonial Representation Commercial Law Code • Customs Union • 66 Daly, Hon. T. M. Defence Imperial Denison, Lt. Col. G. 7. Des Voeux, Sir Williaiii De Villiers, Sir Henry - Devonshire. The Duke of Dobell, Hon. R. R. Dufferin, The Marquis of - 59. 60 82 22, 29, 30 29 39 55. 57 Jos. 12, 83 82 - 82, 8S 71, 72.89 79,92, 116 • 95 . 78, 83, 95 • 82 82 - 98 91 55. 62 - 81 II. 44 81 Page. • 9 II, 46 Fitzgerald, Hon. N. • - . 55 Fleming, Sir Sandford 1 1, 22, 38, 40, 55 Food supply • - . . 9 Foster, Hon. G. E. • 55, 60, 6 1 Foreign Treaties - - 105, 106 Forrest Hon. Wm. - . -64 Fort Qu'Appelle Delegates - 82 Fort William Delegates - - 82 Fraser, Hon. Simon - - 5^ Fraserville Delegates • • - 82 Free Trade - . 44, 45, 48, 58,75 Griffith, Sir Samuel - • .41 Guelph Delegates - - • 82 Halifax Delegates - - .82 Hamilton Delegates - - 82 Harris, Loyd - - - . jji Hofmeyr, Hon. J. H. • 11,35,62 Holland, Sir Henry - . 24, 2<; Holland, W. H. - - - 87 Hopkins, J. Castell - . 82. 8b Howland O. A., M. P. P., - - 98 Imperial Federation • - • 116 Jersey, The Earl of - 55, 57, 122 Kavanagh. Joseph • - -82 Knutsford, Rt. Hon. Lord • 81 Laurier, Rt. Hon. Sir Wilfrid - - 14, 122, 123 Lee-Smith, Hon. Alfred • - 55 Lockhart, R. A. - • - 92 London, Delegates - . - 82 Lcrne, The Marquis of - - 81 Lubbock, The Rt. Hon. Sir John ■ 43 Lubbock, Neville- - - -44 M 6 INDEX— (Continued.) McArthur, C • McKee, Nicholas - Mac Far lane, T. • Medley's Motion, G. W. Mills, Hon. Sir Charles • Mitch :1I, W. H. - Montreal Delegates ■ Most-favored-nation-clause Mowat, Sir Oliver ■ Nairn, Stephen • Osborne, J. K. Osier, M.P., E. B. Ottawa Conference Ottawa Delegates Page. 86 82,85 87 • 45 55 I3»9i 82 • 103 118 • 82 82 12,82, 84,99 ■ - 65 - 82 Pacific Cable - - - ■ 60 Parkin, C. M. G., Dr. G. U. - 10 1 Perrault, J. K. . - ■ 46, 82 Playford, Hon. Thomas - -55 Plewes, D. • • • - 46 Preferential Trade - 4S» 46, 74. 75 Prince Consort, H. R. H., The - 15 Queen's Speech Reciprocity Clauses, U. Regina Delegate RoUit, Sir A. K. Rosebery, Lord S. A. • 112 82 • 8t 67 Page. Salisbury, The Marquis of • - 24 Smith, Sir Donald A. - 45, 55, 85 •'Statist, The " Competition - 12, 63 Suttor, Hon. F. B. • • 55. 66 Symonds, Harry . . ■ 82 Tariffs, British - • 13. 74. 75 Tariffs, Colonial • • 13. 'o7 Thompson, Hon. Sir John • 56 Thynne, Hon. A. J. • • 60, 64 " Times, The " extract from • 42 Toronto Delegates - • • 82 Toronto Besolutions, - - 83, 94 Tripp, Edgar - - - 13, 82, 90 Trf^ties, Foreign • - 48, 86 Tupper, Sir Charles - 45, 46, 47 Twigge, Major General John - 82 United States Reciprocity Clauses 112 Vancouver Delegates - ■ 82 Van Sommer, J. • ■ 7i. 78 Villiers, Hon. Sir Henry de 55, 62 Wills. J. P.. Edgar A. - ■ 82 Williams, W. H . • • -9? Willison, J. S. ... 98 Wilson, Prof. ... - 95 Winnipeg Delegates - • 82 Wood, Hon. A. T. - 11, 4Si 82 Wrixon, Sir Henry - - 55 Wyld, Frederick . - - 82 ill H !'|i INTRODUCTION 18 98. N the jubilee year the wish of our Sovereign "of welding into one harmonious and united community " the Empire to which we belong, seemed to be drawing nearer to realization. In the following volume we put on record the part which has been taken towards effecting that object by our Canadian I.eaders and by our Representatives and Delegates at the various Imperial Conferences and Commercial Congresses inaugurated during the past ten years. While Creat Britain and the Colonies are a United Empire, we are not yet united : —Commercially — nor Politicially— nor for purpose of defence, and it is these important matters with all their variations of thought, policy, and feeling, that are referred to when speaking of the closer union of the J>ritis!i Empire. At the close of the session of the Imp^ual Parliament of 1886, the invitation went forth from Her Majesty to the Colonial Govern- ments to meet in Conference at London during the following year, lor the consideration of matters of common interest, and of what was considered most urgent, — organization for military defence. The patriotic action of the Colonies in offering contingents of troops in the Egyptian campaign had impressed the public mind and is given in the Queen's speech as one of the final causes which led to the summoning of the first Inter-Colonial Conference. When we look over the Parliamentary reports of these National Assemblies, we find in them the genesis of the various policies now being pursued, and among the originators of the resolutions there are the names of men well-known in our everyday business, but whose successfui efforts in the early stages of British Union have been mm - - ; I m 10 hidden away under the uncongenial covers of voluminous parlia- mentary blue books and official reports : these we now bring once more before the public noiice. This volume contains references to the subjects brought before these Conferences for consideration, and gives the resolutions that were passed. The chief space is, however, given to the resolutions and discussions on (juestions relating to Canada and the Empire. These Inter-Colonial Conferences have been representative in every respect, men of note and of the highest rank gave their attention to the business on hand and London was proud to entertain the Colonies. We also in turning over the official verbatim reports, forming several lengthy volumes, are also proud to find written in them throughout, the names of Canadian citizens, from Oltav/a, Toronto, Montreal, Quebec, Hamilton, Brantford and many another Canadian city, who took a leading part (we feel inclined to write the leading part) in these able and mos^ influential of debates, conducted with an earnestness and a desire to find out the best way of procedure. At these meetings there were gathered Members o^ the Ministries, Colonial Premiers, and representatives of the industries in Australia, Canada, New Zealand, the South African Colonies, and the Islands of the Seas. Part I. is taken from the Parliamentary Report of tlie great Conference of 1887. Wc note, firstly, in the invitation to the Colonies, the stress laid upon the necessity for a more extended participation in the defence of the I£mpire, and in the report of the conference by the Secretary of State for the Colonies we find it stated that the most valuable decision arrived at, " was that renting to the increase of the Australian squadron for the protection of the floating trade." The address of Sir Henry Holland on page 25 states the case ^/ery fully. One of the interesting periods ot the discussion was the vindication by Sir Alexander Campbell of the part that Canada had taken and the expense she h?.d borne in the defence of her part of the Empire in years gone by. The course of the debates at that Cf nference had a special analytical interest to students of the origin and result of the fai^ a^j-o so that we have lived fully up to our agreement. We have created a Military College for the education of officers. The Royal Military College was the creation of the Government of Mr, Alexander Mackenzie between 1873 ^^^ 1878. I have put in a ropy of the Syllabus of the College and of the rules and regulations. That College is well officered as regards professors ; there are thirteen or fourteen professors, all men of eminence in their departments ; and the result has been to turn out men who have competed on equal terms with the young men who are turned out here at Sandhurst and Woolwich ; and I have no doubt that the various officers who have commanded in Canada, and the various Governors-General who have visited that College, would say that it was a good and well managed institution, and that it has turned out men who are useful to the country. The number of men in our larg;e force who are drilled we can calculate by the number of men between 18 and 55 years of age in a population of five millions. We have had enrolled about 800,000. In addition to that we have 40,000 drilled, Those men are no doubt insufficiently drilled, as I have already said, but they are drilled, and they are very good material for soldiers, and very amenable to discipline, and very willing and ready ; and upon the only occasion upon which they were called into action or use, they showed very considerable and commendable powers of endurance. Of those schools one, I should mention, is for mounted infantry, one for cavalry, tw , are for artillery, and the rest for infantry drill. So that gradually, and as fast as we can reasonably do so, we are spreading through the country what we hope will be a sufficient h 32 knowledge of military matters to enable those who reside in Canada to discharge their duty to their country. After recounting shortly the stirring event of the North West Rebellion, Sir Alexander said, that is the kind of Militia force which has been raised and from which I think an opinion may be formed that the money which we have expended in Canada has been spent usefully and with some judgment. Those are the preparations which I was anxious to state to the Conference have been made in Canada for the purpose of land defence. Those are the military preparations. You all know also that we have made what we consider may be used as other prepara- tions. We have constructed at enormous expense the Canadian Pacific Railway. By means of that railway, and by means of the Intercolonial Railway, which was constructed some years ago under the management of my friend Mr. Fleming, we have extended the possible communication from London to the extreme north-west on the Pacific Ocean, and reduced the time occupied in traversing that distance to a period of a fortnight. So that Her Majesty's Govern- ment could send reinforcements of men and material to Esquimault in 12 or 14 days from this place. To construct a railway which can put such a power in the hands of Her Majesty's Government is undoubtedly a great contribution to the defence of the country. (Hear, hear.) Few things can be more valuable to the defence of a country than the power of ready communication. (Hear, hear.) That has all been done without calling upon the Crown for any money whatever. They have given nothing to Canada for the purpose of building the Canadian Pacific Railway. It might have been very justly said to Her Majesty's Government : " Here is a great work which will be of great use to the Empire ; you ought to contribute to it." But nothing of the kind was said. The Canadian Pacific Railway Comi)any built the road with a contribution from the Government of Canada of $25,000,000 in money and 25,000,000 acres of land and of 627 miles ot railway constructed, or to be constructed by the Government, and costing many millions of dollars more. We afterwards assisted that Company by lending them a considerable sum of money. In reference to other defences which have occupied in a manner so interesting the minds ot the gentlemen from the other Colonies, the naval defences, we set out with that agreement with the Government that they were to undertake the naval defences. It was not at that time a very burdensome undertaking upon them ; I do not think it is so now. They maintain for Imperial purposes, as for other purposes, the North American Scjuadron, and so long as that Squadron is at our doors, Canada does not need any other naval defence. Since that agreement was made by Her Majesty's Govern- ment, the Colony of British Columbia has been added to the 33 Dominion, and therefore there is a coast of Canada now on the Pacific Ocean. That coast is defended for the present by Her Majesty's North Pacific S(juadron, which goes to Es(iuiinault once a year, and is more or less there all the time, as the North American Sciuadron is more or less at Halifax all the time. If our budding ambition had been then encouraged, and we had got anything like a reasonable ship, we should have established a Naval School. We have a large and valuable body of fishermen calculated at 80,000, as good men and probably as fully up in the knowledge of seafaring life as the naval authorities could find. Use might be made of that, and the use that should be made of it would be to have a Naval School, and to give the sons of these fishermen an opportunity of learning ordinary dicipline, and you might then have a very useful addition, I think, to your material for naval purposes. Mr. stanhope. I confess that I entirely agree with Sir Alexander Campbell in saying that it is not possible to exaggerate the advantage from a military point of view which the Empire has gained by the construction of the Canadian Pacific Railway. (Hear, hear.) As regards the Canadian Militia, I am glad to believe also from the reports which reach us that the words of praise that Sir Alexander Campbell has uttered are no more than justified. We had the opportunity last year of conferring here in this country with Sir Adolphe Caron, who was the Minister of Militia in Canada, and from him we obtained particulars which certainly convinced me that in time of need the Canadian Militia would be able to give a very good account of themselves, I lake note also of what we have seen in the papers which have been circulated amongst the members of the Conference as to the efforts which are being made by the Australian Colonies and by New Zealand That I must say came as a surprise upon me. I had no idea, and I do not believe that the people in this country had any idea, of the very large sums of money that have been spent in the Australian Colonies for the purposes of defence, or of the thoroughly efficient manner in which they are endeavoring in so many cases to preserve themselves against hostile attack. I take note also of what is being done at the Cape. The very great internal difficulties that have from time to time arisen at the Cape have occasioned to them a very large military exi)enditure, but we take note with great satisfaction of what they have done with regard to providing a force there, which would be capable, as I believe, of giving a good account of itself in case of need. New I come to the work of the Imperial Government. And here I might say that it is only (juile recently that we here in England have attempted to take a comprehensive view of our Imperial duties in this respect. (Hear, hear.) For a long time we o it 34 Yoted no doubt large sums of money for our Army and Navy, but it is only in recent years, stimulated, I am bound to say, largely by the efforts of the Colonies, that a comprehensive survey has been taken of all that we can accomplish, and of all that we ought to endeavour to accomplish, towards making the Empire secure in time of difficulty. We have now had the opportunity, in various ways, of very carefully considering how we can utilise our existing resources to the utmor' ; how we can protect the main lines of our commerce throughout the world, and in particular provide (I know you will easily guess to what I am specially alluding) alternative routes suitably defended in the event of any one particular route being blocked. We have also endeavoured to take into consideration how far we can improve the telegraphic communication between the different parts of the Empire ; and how we can, by protecting the points at which the cables are landed, add materially to the advant- age which those cables would render in time of war. Much of course, I am aware, remains to be done in all these respects ; and I can only to-day indicate to you, in particular, the efforts which we have made in regard to the coaling stations which have been selected for defence in different parts of the world. But of course it is for the Conference to remember that, in addition to these coaling stations, we undertake the defence of certain Imperial fortresses which have a certain strategic importance in addition to their value as coaling stations ; I refer of course to Malta, Gibraltar, Halifax and Bermuda. Upon the defences of all those fortresses an ernormous sum of money has already been expended ; but the changes of modern armament are causing and will cause a very large additional outlay in this direction. The coaling stations to which I am about to refer are those which were selected by the Royal Commissioners on the defence of British possessions abroad, with only one or two additions. The Royal Commissioners pointed out that of the Admiralty coaling stations outside this country no less than 2 1 are in British territory, and after considering them all in detail they selected certain stations as being indispensable, and they recommended their defence upon an adequate scale Now the only addition to that list to which I would call attention is the case of Esquimault. This has sprung into a sudden prominence, far beyond what was contemplated at the time of the Report of the Royal Commission, owing of course to the completion of the Canadian Pacific Rrilway. The importance of fortifying that position at the western end of that railway would, I think, be admitted by everyone ; and the Imperial Government has accordingly undertaken to provide certain armaments, the Colony constructing the works. 36 Tuesday, May 3rd, J 887. Mr. HOFMEYR. The fourth of the eight subjects proposed to be brought before the Conference by the Cape Delegates in their letter of April the ist reads thus:— "To discuss the feasibility of promoting closer union between the various parts of the British Empire by means of an Imperial Customs Tariff." Now this Conference has devoted a very considerable part of its time to matters of defence, and we have done something ; but I take it upon myself to say that, from an Imperial point of view, the proceedings of the Conference, in connection with the subject of defence, cannot have been perfectly satisfactory. What have we arrived at? Simply this:— that the Australian group of Colonies will pay a certain amount annually towards the support of a few ships in their own waters. But what has the rest of the Colonial Empire done towards the maintenance of the Imperial Navy ? Nothing at all. The Cape has not agreed to do anything : Canada has not agreed to do anything : and none of the other Colonies have agreed to do anything, for reasons which I think are weighty, and which this Conference will not overrule. At the same time it is admitted by some high naval authorities ^although perhai)s not by the author- ities whom we have had before us) that the British Fleet is not quite so strong and powerful as it ought to be, in view of the tremendous interests that it has to jirotect, when compared with the French and German Fleets, and having regard to the limited interests that they have to protect. Supposing that the Imperial Government were to find by and by that it required very considerably greater assistance from the Colonies toward the maintenance of the fleet than it has hitherto obtained. I doubt very much if you would find a system of subsidies answer in the long run. You would in that case find very soon that the principle of representation would be asserted by the Colr>nies. The system of subsidies would practically amount to a tax ai. i where you have a tax the people who bear the tax sooner or later ask to be represented. The Empire should have some other consolidating force than sentiment, it should have the force of self-interest ; greater contri- butions might be required from the Colonies than have been paid hitherto, and then the Colonies might not object to some indirect taxation which practically admitted their right to greater fiscal privileges within the Empire than are accorded to foreign Powers. I i: wr- 36 The scheme which I wish to lay before the Conference is one which would promote a closer fiscal union between the various parts of the Empire and which at the same time would leave the various fiscal tariffs of the different parts of the Empire, of the Colonies, as well as of England, untouched. We have two Republics on oui- borders, the Transvaal and the Orange Free State ; and one of our Customs' Acts has a provision to ihis effect : thrt all South African produce, including produce either <^:om the 'I'ransvaal or from the Orange Free State, with the exception of some articles, such as tobacco, spirits, sugar, and coffee, shall be admitted duty free, and they are admitted duty free. While, for instance, all grain imported into the Cape from Australia has to pay duty to a very considerable amount. Free State and Transvaal grain pays nothing whatever. Moreover, 1 believe that in India a similar practice obtains : that any imports coming overland from the northern border States outside of India are admitted duty free, or at all events not under the same tariff as those which come into India by sea. I5ut if it should after all amount to an infraction of existing treaties, then I should say that it may be as well that for the future I'ingland should take care that when treaties are entered into, the Most Favoured Nation Clause is not applied against its Colonies to tl e same extent and in the same way as if these Colonies were Foreign Powers, instead of being integral parts of the Empire itself. I moreover find that the system of favouring Colonial above foreign trade is one which is adopted by almost every other Colonial I'ower. France adopts it, Spain adopts it, Portugal adopts it. Holland does not adopt the system herself, but she allows her West Indian Colonies to levy a differential duty as against foreign goods, but not as against Dutch goods. We may be told, thirdly, that it means Protection. I aim at soMething that s'lall supply a cohesive force to the Empire, and £ lail at the same lime provide revenue for defensive purposes. It may even be that in the course of years this system, may, instead of proving a protective tariff, lead to absolute F>ee Trade as between the mother country and the Colonies. If the various Representatives of the Colonies and of the Empire jointly should agree that there should be only one tariff, an Imperial tariff, and no local tariffs, you would have a Zollverein which involves perfect Free Trade between the various parts of the F^mpire. We may be told, fourthly, that it would revolutionize the fiscal system of England. England now-a-days obtains a revenue of some 20,000,000/. from customs. But that revenue in 1885 was levied 87 upon imports amounting to only 28,900,000/., whilst articles free of duty were imported to the value of no leas than 342,000,000/. If the plan I have sketched were to work, the bulk of the articles imported into England should be taxed, however low the tax may be. As a fifth difficulty it would probably be advanced, that the food of the poor man in England would be taxed. Now, a tax of two per cent, or thereabouts would not raise the price of the bread of the poor man very much, especially as the poor man would get bread- stuffs duty free from all the Colonies, from Canada, Australia, and India; and the grain-producing power of those and various other Colonies might be developed to an almost unlimited extent, so t'uat ultimately hardly any rise in price would be observed There is another objection which I believe to be of ?. somewhat more vital character. It is this, that the tax would be one upon the raw materials required for Jiritish manufacture. But it would be a lax not on all raw materials, but only on those not coming from the Colonies. The Colonies might develop their producing capacity to such an extent that after the lapse of some years the tax would hardly be felt at all in England. In this respect also the izr. m-jiht be considered less objectionable, if the English people found that ihe chances are that they would be indemnified for any loss they suffered by reason of a tax on raw materia^ by having a better market in the Colonies, than they have under the present system of free competition between foreign goods and their own all over the Empire. Then I have heard it said that an Imperial tariff would lay additional burdens upon the already over-burdened British taxpayer, but that on the contrary it would relieve the British taxpayer of some part of his burdens. The British taxpayer at present has to pay for the maintenance of the army and navy single-handed, alone, by him- self. Under my plan he would share that burden with the Colonies, and he would know at the same time that whilst he contributed something under the heading of a new tax, he at the same time obtained a better market for his industry in the Colonies. Then it is attempted to frighten us with the threat that foreign Powers might retaliate. But how would they retaliate ? They would retaliate, I suppose, by levying duties on British trade ; but they do levy duties upon British trade already (/tear, hear) ; they do levy Protectionist duties on British trade. But if this matter be discussed, and if it be continually borne in mind, it stands to reason that in future treaties which may be entered into between the Imperial Government and foreign countries, the fact that the Colonies are not foreign countries, but are inseparable parts of the i wr 38 IJritish Empire, will be remembered, and the Most Favoured Nation Clause will not be brought to bear against En>^land's own kith and kin. At this moment the scheme may be Utopian, but even as Utopian I venture to lay it before the Conference, I can only regret that it has not been taken up by an abler Delegate than myself, and more especially by a Delegate who is a greater masier of the English language than I am. (Cheers.) Sir SAUL SAMUEL. I s'.iould like to ask Mr. Hofmeyr one question. At present England admits nearly all the products of the Colonies free of Customs duties ; is it likely that in the future Colonies will do the same for England ? Mr. hofmeyr. That is a question which does not effect my proposal in the leas'-. (Hear, hear.) My proposal is an addition of say two per cent, upon all foreign produce imported into the United Kingdom and the Colonies, whatever the fiscal tariff of the kingdom or of each Colony may be. I want to leave the liberty of the British Parliament and of the Colonial Parliaments unfettered in the arrangement of their own Customs. (Hear, hear.) AUSTRALIAN MAILS. Memorandum of Sir Alexander Campbell and Mr. Sandford Fleming, (Canadian Delegates, circulated by them. It is suggested that the subsidy which the Canadian Pacific Railway deem necessary to warrant their establishing the line, should be divided between : — 1. Imperial Government. a. Admiralty— from " Armed Cruiser Fund." i>. Post Office— in proportion to amount now paid for monthly Pacific service, 2. New Zealand. 3. Australia. 4- Canada. It is thought that under this arrangement their service wil' be secured at a positive saving upon existing mail contracts to the Imperial Government, New Zealand, and Australia. ■^?[^ji}'ji^.y*');r,-w/;ercial relations between the various parts of the Empire. These important questions were again discussed yesterday at the meeting convened at the Mansion House by the London Chamber of Commerce. At this meeting Mr. Baden-Powell delivered an address on " The Commercial Relations of the British Empire." " The trade of our Colonies yearly increases in volume. It is manifestly worth our while to make an effort to secure it by all legitimate means. Among these means nothing is more important than the improvement of our postal and telegraph communications." The following day the Colonization Committee of both Houses of Parliament met the Colonial Representatives in the Grand Com- mittee Room to discuss the question of colonization. The points discussed were : — I. How far the Colonial Governments should assist in encourag- ing Colonization. 2. What was the best form of agency to adopt to carry out the work. 3, Whether the Imperial or Colonial Government should take the initiative in carrying out any Colonization scheme. FJb.Ti,T XX. THE Chamber of Commerce Congress J 892. {Extract from the Report issued by the London Chamber of Commerce.) FIRST DAY, Tuesday, June 28th, J 892. The Congress was held in the ancient Hall of the Merchants Taylors' Company. The President the Rt. Hon. Sir John Lubbock, President of the London Chambers of Commerce, after words of warm welcome to the Delegates, outlined the business to be brought before the Congress under the resolutions standing in various names. The first Resolution, one by Lord Brassey in favour of the advant ages of closer commercial union within the Empire. The second resolution was in favour of a free trade basis as tending to be permanent and promote prosperity. And after that there was to be a resolution ' \ respect of the very great and important question as regards the relations between the British Empire as a whole and foreign countries, LORD KNUTSFORD. After referring to the Colonial Con- ference of 1887 spoke of the material prosperity of the Empire depending so largely on her trade and commerce. The lord mayor of LONDON, Sir REGINALD HANSON, also welcomed the Delegates. • LORD BRASSEY moved a moiion in the same form as outlined by the Cnairman. He referred, giving statistics and figures, to the trade of the Empire, and spoke of the essential services tendered the Colonies by the Mother Country in supplying capital ^ !. 11 Id 44 required on terms almost as honourable as the Home G'^verntnent could obtain. In December 1890 the aggregate debt of the Colonies was as follows :— India $1,050,000,000, Australia $900,000, 000, South Africa $140,000,000, Canada '^25,000,000, West Indies $15,000,000. The loans had been raised almos'. exclusively in London. In addition to Government Loans, vast sums had been provided for railways in the Colonies amounting to over $1,500,000, 000. It was possible that further help might be given by liberal subsidies to the great lines of steamshii)s. France and Germany had adopted the pp'xy of subsidies on a lavish scale. British enterprise had suffered severely from competition artificially stimulated by subsidies granted to general trade by Forei5!;n Government. The motion was seconded by Sir Malcolm Eraser, of Western Australia. Mr. NEVILLE LUBBOCK moved that : •' A Commercial Union on the basis of free trade within the Empire would lend to promote its permanence and prosperity." This was proposed as a further step to the resolution just agreed to. If he said we find we could make the whole Empire one as regards Customs surely we have the same right of ZoUverein as Germany has with Bavaria or the United States among themselves. He thought his hearers would admit the right, but how near were they to any exercise of it ? to- Probably Australia and Canada were so far away that they never gave the necessities of the other Colony a thought, but ought they not so to do ? Some sacrifice might be required, but the spealcer though it would be rather a sacrifice of views and predilections than of material interest. If the Colonies are prepared to accept this as a basis, the question may arise of privileged treatment. His confident belief was, that a very limited privilege would have a large influence in maintaining industry in the channels in which all members of the Empire would naturally wish to see it flow, but he expressed an opinion that any privileged treatment to have a chance of acceptance in this country must be within very moderate limits. Hon. R. R. DO BELL ( London, Canada), speaking on behalf of one of the Canadian Chambers, claimed that from their standpoint the influence exercised by Great Britain had not tended towards the advancement of what was predicted by her leading states- men 40 years ago, viz : Universal Free Trade. He claimed by treating free trade and protectionist countries alike, she has placed her followers in a disadvantageous position. For years Canada tried free trade and only imposed a duty which averaged about 7 per cent. ■ 45 The United States in 1864-5 adopted a strictly protective policy. She abrogated the Reciprocity Treaty with Canada in 1868, it was not till 1879 that Canada adopted what is known as the National Policy. He thought it would have been to the benefit of England if she had combated the agressive policy of foreign protection, and would advocate free trade within the Empire. He therefore seconded Mr. Lubbock's amendment. Mr. p. H. burton ( Toronto), thought he could say repre- senting the sentiments of the majority of the Toronto Board of Trade, with their 900 members that there was no prospect of Commercial Union between Great Britain and Her Colonies so far as Canada is concerned on the basi^ of Free Trade at the present time. There is no doubt you have been most liberal to Canada, but the question is, what have you to face to-day ? You have not to face the same conditions that you faced when you adopted Free Trade. You had hardly at that time any source of supply of grain except from Russia ; you had little from America, nor were the United States, Germany, France and Russia competing against you. VVe want to see the British Empire perpetuated and I believe the only way to perpetuate it will be to have a Commercial Union between the different parts of the Empire. A motion for postponement of the resolution was put and agreed to. j i Mr. G. W. medley then moved PATTERSON, of Belfast, secorded. and Mr. R. LLOYD- " That any fiscal union based on Protection would be politically dangerous and economically disastrous, and that the arrangement which more than any other, would conduce to an intimate Commercial Union would be by the self governing Colonies adopting as closely as circumstances will permit, the non-protective policy of the mother country. " Sir CHAS. TUPPER, K. C. M. G. ( High Commissioner for Canada), moved as an amendment : •* That in order to extend the exchange and consumption of the home staple products in every part of the British Empire a slight differential duty should be adopted by the Imperial and Colonial Governments in favour of the home productions against the imported foreign articles." He said this was the view of the Montreal Chamber of Commerce, which had been established by the French Canadians. He expressed his hope that England would abrogate the clauses in the treaties with Germany and Belgium, which he claimed forced Great Britain to treat her Colonies on the same footing as foreigners. He combated the idea that a small duty on grain would increase the cost of bread, actual prices proving the contrary at ^hat very time in Eigland and on ths Continent, and that a 5 per cent, duty on II ^ ! •I I I 46 foreign products would be all that was necessary to vitalize this great Empire, all that would be necessary to build up those outlying portions of her Empire as she is here in the heart of it. Sir DONALD A. SMITH, K. C. M. G. ( Montreal), in supporting this amendment, said : — We may not be loud in our professions of loyalty, but we are loyal to the core and we ask from Great Britain only very little indeed, and that is that we should be put on a fair footing, and that we should have such Fair Trade relations as will enable us to stand together hand in hand and shoulder to shoulder as an Empire even greater than at this moment. Hon. a. T. WOOD ( Hamilton), was thoroughly in accord with the original motion and said that Sir Charles Tupper, with all his eloquence, could not alter facts. He referred to the poverty and distress which over-spread the land under the barbarous age of protection and thought it would be an evil day when Great Britain threw a shadow of a doubt on the policy which had maintained her in the proud position of being the greatest commercial nation. SECOND DAY. Wednesday, June 29th, J 892. Mr. D. P LEWES ( Dominion Millers' Association, Toronto), expressed himself as a Free Trader, but wanted to know what advantage it would be to the British workman to have flour as cheap as might be, if he had not the money to buy it. He strongly advocated a 5 per cent preferential tari"" as being likely to turn the stream of emigration to the British Colonies in preference to foreign ones, where the British manufacturer had no chance of selling. He had also found in his experience that the price of meat in the producing countries was affected by any change in a tariff, and not the bread, in the country of the consumer. Mr. M, C. ELLIS (Toronto), speaking from a merely Can- adian standpoint and expressing the opinion of the commercial centre from which he came, said, in reference to the idea expressed as to retaliation, that Canadians had not been afraid to take their stand for British interest in preference to American. But if the Mother Country continues to treat her Colonists with no better consideration than that of others, how can she expect that the Colonies will remain always in a contented condition ? If an 47 Imperial differential duty should be imposed preferring her Colonies as against foreign nations there is no (juestion of a doubt that the means will have been found to cement the Empire, powerful and enthusiastic, Mr. Medley had stated that the English imports from her Colonies were that of food and raw material. Then all the more reason that Great Britain is in a position to do much for her Colonies. Canada had the land on which to grow the food supplies of the Empire and if a discriminating rate encouraged production, emigration would be attracted thereby. Sir CHAS. TUPPER, by leave of the Congress, altered his amendment so as to read : " That in order to extend the exchange and consumption of the home staple products in every part of the British Empire a slight diflerential duty not exceeding 5 per cent should be adopted by the Imperial and Colonial Governments in favour of certain home productions against the imported foreign articles." Mr. J. X. PERRAULT ( Montreal), said we had come there to express the unanimous opinion of the Dominion that something must be done to improve the circumstances of trade between the Mother Country and her Colonies. We think it hardly fair that we who have to bear the responsibilities of being part of the Empire should meet with unfair rivalry in the home market, and on the other hand we feel the manufacturer of (ireat Britain has a right to belter treatment than a foreigner who comes to the Colony simply to sell his goods in opposition to the Mother Country. We are prepared to give to the working class of Great Britain the preference of our market to that of the other countries. He was surprised in that great commercial centre of the world to hear the question discussed, •' Who pays the duty " ? We know when we send out hay to the States we have to pay $4 a ton to get that hay to the market. We the producers have to pay th&t duty, every cent of it in the States, On Canadian horses, there is a duty imposed of 30 per cent — on oats and barley 40 per cent. We cannot stand in the position in which we are. There is no country to-day in Europe that has not differential tariffs. We alone stand in this position with the Mother Country, who has not given us a single advantage over her bitterest enemy whenever she deals commercially with us. Hon. J. BALLANTYNE, Speaker of the Ontario Legislature and Delegate from Woodstock : I have noticed throughout the whole of the discussion what to my mind was a clear misapi)re- hension, that the people of Canada were unanimously in favour of differential duties, that they were in favour of a prt :ective policy. That is not my opinion. It is not my theory. In the Country of Perth, the North Riding of which was considered for all time a 4S hopelessly protectionist county, we fought out an election on the lines of Free Trade. Posters were put out " Free Trade with Britain" and we carried the election on that issue. (Cheers.) I will only say we want no protection in Canada but whit is required for revenue purposes. There is no evidence that although the Oovernnient of the day are in favour of the tariff, that the peoi)le are in favour of it. We want to increase our productions and their value, and in the town of Woodstock, the County town, which is in the Garden of Canada, where the farmers are best off, three to one are Free Traders. Mr. MEDLEY'S motion was further supported by Mr. John VVaugh of Bradford, Mr.W, H. Williams of London, Mr.W. McMillan of Sydney, Mr. McArthur, Liverpool, Sir Thomas Farrer of England, Mr. \V. Adamson of Singapore, Mr. T. Balleel, Plymouth, Mr. ]. W. Jaggeis of Cape Town, Mr. B. C. Wates of Leicester, Sir John Lubbock of London, Mr. John llorsfall of Keighley, and Mr, T. W. Harding of Leeds. Sir CHARLES TUPPER'S amendment was also supported by Mr. Henry Hibbert of Blackburn, Hon. W. B. Espent of Jamaica, Mr. T. Stiebel of Nottingham, Mr. Touks of Birmingham, and Mr. James Huddart of Melbourne. The amendment was then put and the votes were : For, 34, against, 79. SIR CHAS. TUPPER asked that the vote be taken according to the rules, one vote for each Association represented, and the vote was postponed to the following day. THIRD DAY. Thursday, June ^Cth, 1892. The President stated the practice was to take the vote by show of hands unless the vote by Chambers was claimed in time. That was not done, owing to inadvertence, and he would now take it in that way. A vote was then taken on Sir Charles Tupper's Amendment, and the votes were 33 in favor of the amendment and 58 against. 4y Mr. Medley's resolution was subsequently carried by 47 votes in favor of the motion to 34 against it. After a few short debates the following resolution was passed : •• That this Congress is of opinion that every ellort should he made hy Her Majesty's Government to proinoie closer commt-cial relations between the United Kinjjdom and her Colonies and Dependencies, and to this end desires the abro- yatton of tlie European treaty clauses which at present hinder the same." And immediately after : " That a commercial union with the British Empire on the basis of freer trade would tend to promote its permanence and prosperity." Other resolutions passed at the Congress were in favor of Boards of Conciliation and Arbitration. Codification of Commercial Law. Merchandise marks. Bills of Lading Reform to make each or any of the carriers on a through Bill of Lading responsible to the consignee for damage. Factory Legislation. Commercial Education. Emigration and (Colonization, International Monetary Union. Imperial Penny Postage. Abolition of Light Dues. The Congress concluded with a banque* at St. James' Hall, at which 300 delegates and guests attended. The Chair was taken by the Rt. Hon. Lord Knutsford, G. C. M. G., (Secretary of State for the Colonies). -..^^.^ m 50 IPj^I^T III, :o: EXTRACT FROM REPORT ... ON THE . . . MISSION TO AUSTRALIA, By the Canadian Minister of Trade and Commerce, SIR MACKENZIE BOWELL, K. C M. G. The mission to Australia was und'^'taken under authority of an order in Council dated 7th Septembc 93 and the Report to His Excellency The Right Hon. the of Aberdeen, Governor General of Canada, is dated Ottawa 1st March, 1894. The order in Council was passed on the recommendation of the late Sir John Thompson, then Prime Minister, and was as follows : — '*The Honorable Sir John Thompson, Prime Minister, recommends that the Minister of Trade and Commerce be requested to proceed to Australia as soon ns possible to confer with the several Governments there with a view to promote the extension of trade between Australasia and Canada and also to confer with those Governments on the subject of a telegraph connecting Canada with Australia. The Committee on the same recommendation advise that Your Excellency be pleased to communicate by telegraph with the Governors of the several Colonies of Australasia, announcing the mission of the Minister of Trade and Commerce in order that facilities may be furnished by the respective Governments for forwarding the business with which the Minister is charged." Sir MACKENZIE BOWELL left Ottawa on the 7th Septem- ber and arrived in Vancouver on the 12th following. Meetings were had with the Boards of Trade of Vancouver, New Westminister and Victoria respectively, and the problems of trade with Australia and the islands of the Southern Pacific were carefully discussed. On the morning of the J7th September ht sailed from Victoria on the R. M. S. " Warrimoo " for Sydney, N. S. W. At the commencement of the report we find statistics regarding the Honolulu group of Islands. 61 The population was given at 89,990 ; imports, 1^7,438,582 and ex|)orts $10,707,315, divided between the importing countries as follows : Total. United States (ireat Britain Germany Australia and New Zealand China Japan France British Columbia Islands in the Pacific By whaleship All other Grand Total $ cts. 5,294,278 57 1,201,329 43 3«4.'4S 95 185,156 60 227,392 38 60,563 96 21,665 96 28,464 00 10,168 69 16,825 75 9,49« 9« $7,439.4^2 65 I'er cent. 7116 1615 516 249 305 ■82 •29 •38 •«4 '23 •13 ICO'OO The Hawaiian Treaty with the United Slates and the Hawaiian Customs Tariff are fully set cut. On arrival at Sydney, N. S. W., a cordial welcome was accorded our Minister by the Premier, Sir George Debbs, and several members of his Cabinet, and, in company with Attorney-General Barton and Hon. H. Copeland, Minister of Lands, every opportunity was afforded for seeing and judging of the resources of the Colony. Soon after his arrival Sir Mackenzie Bowell met the Chamber of Commerce of Sidney and discussed with its members the exchange of products between Canada and Australia and expressed his gratification to observe how keenly alive they were to the subject, and subsequently at a luncheon given by the Government, at which some 400 distinguished public and business men sat down. Speeches were made at which the desire for closest possible commercial relations with Canada were clearly stated. Queensland was the next Colony visited and the trip is recorded over the rich tract of country known as the Darling Downs, and through the extensive fruit growing and sheep raising district in this semi-tropical adjunct of our Empire and their Premier Sir Thomas Mcllwraith, the Governor and His Excellency Sir Henry Norman and a large number of members of the Queensland Govern- ment and interested business men afterwards met on board the " Lucinda," when the matter of direct cable communication between Canada and Australia was favourably talked of. I rm 52 In October Melbourne, in the Colony of Victoria, was reached and the Hon. J. B. Patterson, the Premier, evinced the utmost cordiality and gave assurance of his and his Government's sympathy with every reasonable effort to bring Canada and the Australian Colonies into closer trade relationship ; and subsequently the Chamber of Commerce volunteered a hearty and active co-operation in any effort put forward to build up trade between the two countries, which was thought would beet be accomplished by steamers calling at Melbourne, as this would materially affect the trade of Victoria. The enormous wool warehouses and other industries of t e capital were visited. At Adelaide, the capital of South Australia, the distinguished visitor was met by a deputation consisting of the acting Lieutenant Ciovernor, Chief Justice Way, the Premier, Hon. C. C. Kingston, and a large number of citizens, all evincing the intererst they felt in the prospect of closer relations with (^lanada. The report is replete with tables of Exports and Imports, Tariffs, prices of articles, etc., etc. In regard to the proposal for a Conference Sir Mackenzie Bowel 1 said : The proposition for a Conference with delegates from the seven Australasian Colonies arose primarily out of the impossibilty of visiting and holding interviews with the Premiers of the different Colonies, within the time at my disposal. New Zealand was five days' journey by sea from Sydney, Tasmania two, and Western Australia, six. The four principal colonies on the main land had been visited and it would have implied a sojourn abroad for five or six weeks longer if the three other Colonies were to be seen. This fact was realized soon after my arrival at Sydney and suggeat- ions were made to have a Conference at some central point in Australia before my departure. It was found, however, that at least four of the legislatures were in session, and that a meeting of delegates could not be arranged in time. After consultation with the Premiers of New South Wales, Victoria, Queensland and South Australia, respectively, it was deemed advisable that all the colonies should send delegates to Canada for the purpose of a Conference upon matters of joint interest. The two chief subjects were under- stood to be : ist. (Moser trade relations between Canada and the Australasian Colonies ; and 2nd. The laying of a Pacific cable of an exclusively British character, and a proposition was made to the Premier of New Zealand, the Hon. Sir J. B. Thurston, for a Con- ference in Canada for the consideration of these questions. 03 The following extracts from the Australian papers show how the mission was regarded : (^^ The Sydney Moniing Herald" soth November ^ iSg^.) The pleasant "sending-off" given to the Canadian Minister of Trade and Commerce on Saturday, is the close of an interesting mission. The close of the mission, so far as the visit to Australia is concerned, is but the beginning, we cnofidently hope, of a new page in the history of relations between these Colonies and British North America. In several ways Mr. Bowell's coming has been useful It has not only given us a more vivid and a personal interest in Canada, and taught us practically how really desirous the people of that country are to form closer bonds of brotherhood and commercial interchange with us, but the Canadian Minister has furnished a telling object lesson to us on the benefits and possibilities of federation. Mr Bowell has been surprized and puzzled to find everybody every- where in favour of federation of the Colonies, and still we have not federation. It sometimes seems a puzz'e to ourselves, only that we can see from time to time the various little rocks and stumbling blocks that rise up here and there, and temporarily cause a diversion from the track. But we know as truly as the Canadian Minister has found that we are bound for federation. Our visitor exhibited some political shrewdness when he said that perhaps the blocking of federation had come of each one of us being afraid of one man taking the lead and obtaining more kudos then the others. If he had not made a bull's-eye, he has made a a good shot at the truth. But Mr Bowell has dropped on us at a stage when the personal element is fast disappearing from the question, and when, as we believe, nothing i)ut technical steps necessary remain to be taken to give realization to the universal wish. There is no doubt that an encouraging stimulus has been administered in this direction by the presence and words of the Minister from the federated Dominion of Canada, hardly less to be appreciated then the encouragement which has been given by him to the opening up of business relations between the two greatest sections of the British Colonial Empire. We have had a period, extending over several years now in the Australia?, of regulation and control by "Conference." The effect has been in the highest degree efficacious in breaking down the differences, or imagined ditferences. among the Colonies. Now the system had been extended to Canada ; and whether the first Conference, as proposed, is held in Ottawa or Sydney, we may see in it the harbinger of a system that will ultimately work wonders in . e relations between Canada and Australia. ft"" ('" The Argus" MeUwiirnc, Thursday, 2nd Nwember, iSqj.) Mr. Mackenzie Bowell will not be able to show any scalps of Australian Premiers to the Indians of Canada as he passes them on the train journey from Vancouver. All he will be equal to will be to promise that in a few months' time some Australian representatives will follow him over the same line to see what sort of a place Canada really is, what it has to produce that Australia can buy, what it can take of Australian products, and, generally, if its public men are as sincere in desiring union with Australia as they profess. Trobably Mr. Bowell will be satisfied with having done so much. "Things might have been worse," he may say to himself. But for our part we must confess to disappointment that he has not been able to take away something more tangible than o promise to send delegates to a Conference next year. So far as Victoria is concerned it would have been a good thing if the Canarlian representative had been assured, for instance, that we would at once become contributors to the Iluddart service between Vancouver and Sydney as an earnest of our desire for wider trade, and especially trade with our British neighbor — the Canadian Dominion. Ml r^ma 64 A commercial treaty would have been a comparatively easy matter once the subsidy was placed beyond question. But the position is that before venturing upon the expenditure of a few thousands of pounds yearly, the Government will first send delegates to Canada to see if there is the promise of substantial trade. » « • » • » On the Pacific cable question, Mr. Mackenzie Bowell will be able to speak of at least something achieved when he returns. He found the principal Colonies apparently bent upon different schemes for telegraphic connection with Canada, but he leaves them all looking the one way. The Governments which entered into agreements calculated to give the impression that they were pledged to a French cable now aver themselves eager for one that will be British. The future connection will, it is promised, be under British control, which again credit must, to a large extent, be given to Mr. Patterson. for The point has to be discussed as to whether the cable should be owned by the Governments interested or by a subsidized company, and Mr, Sandford Fleming has yet to prove his case that it wonld be better to have state ownership. (" The Evening Haos," oj Sydney, N. S. W., Monday, aoth November, i8gs-) The Hon, Mackenzie Bowell, Minister of Trade and Commerce of the Dominion of Canada, left Sydney on Saturday, on his way to his own country, after one of the most successful visits here ever paid by any " distinguished stranger." »♦»«♦• With Canadian protection Australians have no concern ; they have enough to do to manage their own affairs. lor this reason Mr, Bowell's defence of the tariff system that he administers may be left uncriticised. It is sufficient for people here to know that Canada has a free list that might possibly be enlarged by negotiation to Australia's favor ; that Australia produces many things which Canada does not ; and that the difference in the seasons would enable many Australian products to arrive in Canada at exactly the time when supplies from any part of the nothern hemisphere are most scarce, The mutual advantages which this state of things affords opportunity for securing should render an agree* ment certain. * * * An agreement between Canada and Australia need not interfere with Canadian trade with the mother country, or any of its dependencies. As for the advantages to Australia itself, Canada as a trade ally has this superior recommendation over the United States, that Canada is destitute of all the peculiar products of tropical and sub-tropical lands, as sugar and the more delicate fruits, whereas the United States in their southern region produce all these things in abundance. 55 IV. THE OTTAWA CONFERENCE June, J894» FROM THE OFFICIAL REPORT. Pursuant to an invitation extended by the Government of Canada, and contained in an Order in Council of that (Government, dated 5th of February, 1894, the following delegates presented themselves for conference, namely : — The Right Honourable the Earl of Jersey, P. C, G. C. M. G., representing the Government of Her Majesty ; The Honourable Mackenzie Bowell, P. C, Minister of Trade and Commerce ; the Honourable Sir Adolphe P. Caron, P. C, K. C. M. G., Postmaster-General ; the Honourable George Eulas Foster, P. C, LL. D., Minister of Finance ; and Sanford Fleming, Esq., C. M. G., representing the Government of the Dominion of Canada ; The Honourable F. B. Suttor, M. L. A., Minister of Public Instruction, representing the Government of New South Wales ; The Honourable Nicholas Fitzgerald, M. L. C, representing the Government of Tasmania ; The Honourable Sir Henry de Viiliers, K. C. M. G., and Sir Charles Mills, K. C. M. G., C. B., representmg the Government of the Cape of Good Hope ; The Honourable Thomas Playford, Agent General, representing the Government of South Australia ; A. Lee Smith, Esq., representing the Government of New Zealand ; Sir Henry VVrixon, K. C. M. G., Q. C, Honourable Nicholas Fitzgerald, M. L. C, and Honourable Simon Eraser, M. L. C, representing the Covernment of Victoria ; r ' ' I < t i,i • 66 The Honourable A. J. Thynne, M. L. C, Member of the Executive Council, and Honourable William Forrest, M. L. C, representing the Government of Queensland ; Mr. Theo. H. Davies, representing the Chamber of Commerce, Honolulu, Hawaii. The proceedings of the day were" open to the public and were presided over by His Excellency the Earl of Aberdeen, the Governor General of Canada, who delivered an address of welcome. The Right Honourable Sir John Thompson, K. C. M. G., Premier of Canada, also delivered an address of welcome, and addresses, in reply, were delivered in the following order ;— Imperial Government. — The Earl of Jersey. Tasmania. — Hon. N. Fitzgerald. New South Wales.— Hon. F. B. Suitor. Cape of Good Hope.~Sir Henry de Villiers. South Australia. — Hon. Thomas Playford. New Zealand, — Mr. Alfred Lee Smith. Victori.T. — Hon. Simon Fraser. Queensland. — Hon. A. J. Thynne. Sir JOHN THOMPSON. After the address which Your Excellency has made, little remains for me but to express, in a few vords, the heartiest of welcomes to the delegates assembled, on behalf of the Canadian Government, the Canadian Parliament and the people of this Dominion. (Applause.) Your Excellency, I can asssure the delegates who are assembled, that the Canadian people, filled with zeal for the greatness and development of their own country, and for the strengthening of the Empire are delighted to see the kindlings of the same ambition in the sister Colonies throughout the world. (Applause.) We realize fully that the questions which jou shall have to deliberate upon are questions requiring the greatest care and the closest examination of details. When we are to consider questions relating to the promotion of trade between the different Colonies, trade with the mother country, the facilities of communication throughout the different portions of the Empire, we realize that while there is ample field for patriotism and loyalty, methods of business have to be followed. Matters connected with trade, with tariffs, with steamboats, and with telegraphs, will require the most practical as well as the most patriotic deliberations of the gentlemen who are assembled to-day. That they may be guided to useful conclusions with regard to all these matters is the great m- 57 ambition today of every portion of the Canadian people among whom they are assembled. The great object of our hope is that as a result of the deliberations of the Conference, the ocean which divides the Colonies shall become the highway for their people and their products. (Applause.) On this happy occasion these delegates assemble, after long years of self-government in their countries, of greater progress and development than the Colonies of any Empi.-e have ever seen in the past, not to consider the prospects of separation from the mother country but to plight our faith anew to each other as brethren and to plight anew, with the mother land, that faith that has never yet been broken or tarnished. (Loud applause.) The right HONOURABLE, The EARL of JERSEY. During that last Conference many questions of importance were mooted and discussed, but were not brought to any determination or solution ; but during those seven years these questions have not been allowed to sleep by those who have been deeply interested in them. My friend Sir Charles Tupper, in London, has always shown himself ready to meet any opponent and to point out his weak points whenever he thought he could advance the interests of Canada, (Applause.) looking upon Canada as part of this great Empire and not in any selfish spirit. Then we also know that Mr. Sanford Fleming has never hesitated (Applause) to press his views with a considerable amount of success. And I cannot pass by the visit, to which His Excellency has referred, of the Honourable Sir Mackenzie Jjowell to Australia. He undertook a great pilgrimage and he has had the satisfaction of making many converts. In fact, any one who will read his valuable and interesting report will soon see how he has stirred men's minds upon this point, and how gradually those minds are ripening to a solution. I should like also to express thanks to Sir John Thompson (Applause) for having had the boldness and the fore-sight to call this Conference together in order to bring these subjects within the range of practicable consideration. We who are the representatives of various parts of a world-wide Empire may well feel proud of the privilege which has been intrusted to us — for there can be no greater privilege intrusted to any body of men than to try and bring various countries, various Colonies, together for the purpose of increasing the happiness and prosperity of all. (Hear, hear.) The business sessions of the Conference v.'ere held in the office of the Minister of Trade and Commerce. Sir Mackenzie liowell was appointed President and Sir Adolphe Caron Vice-President, and, on recpest, Mr. VV. H. Mercer, of the Imperial Colonial Office, was given permission to be present. i 58 Lord Rosebery cabled the President his interest in the Confer- ence, " which should be of such happy augury for the future of the Empire." The Edinburgh Imperial Federationist also wired its congratu- lations and expressed the hope that the " great question of naval ** defence will also be considered and Imperial unity consolidated." June 30th, J 894. SIR HENY WRIXON moved, and Hon. W. Suttor seconded the following resolution : "That provision should be made by imperial legislation enabling the dependencies of the Empire to enter into agreements of commercial reciprocity, including the power of making difU'erential tarifTi with Great Britain or with one another, without foreign nations being entitled to share therein." During the debate one set of opinions numerously supported throughout the Empire was urged by Hon. Mr. Eraser, who said: " I would fondly look forward to the day when the Colonies, including " Australia, could have one customs tariff. I would hear with great pleasure of " the consummation of such a customs union with the other Colonies. I think it " would be one of the wisest steps that we in Australia could take if we could " receive the goods of Canada and the Cape free and vice versa," The objection to the motion came very clearly from Mr. Forrest : " The consideration of this question should 'give us pause.' I will mention "two facts in regard to Queensland. In 1892 we exported over $45,000,000 " worth of our products. In that year Great Britain's foreign trade (exclusive of "the United States) amounted to $1,000,000,000. Now England does not " produce wool to any great extent, but she is a large exporter of woollen goods, " which are manufactured chiefly from Australian wool. Therefore, by England's " assistance, Australia fmds a market for her products in foreign countries, and " that is why I say we must be careful not to do anything that might interfere " with or limit or cripple her trade with foreign nations." The motion finally carried as follows : " Moved by Sir Henry Wrixoii, seconded by Mr. Suttor, That provision should be made by imperial legislation enabling the dependencies of the Empire to enter into agreements of commercial reciprocity, including power of making differential tariff with Great Britain or with one another." 09 July 2nd, J 894 MR. SANDFORD FLEMING presented an able and masterly statement in regard to the proposed Pacific cable, illustrated by plans and replete with information and statistics, and, after discussion, the meeting adjourned, and on the following day consideration of the matter was continued and assented to under a motion by Mr. \V. Suttor : '• That in the opinion of this Conference immediate steps should be taken to provide telegraphic ccmmunication bv cable, under sole British control, between the Dominion of Canada and Australasia." 1 j.fj. COMMERCIAL RECIPROCITY. This disscussion was brought forward by Sir Henry d'Villiers, and a subsequent proposal by Hon. Wm. Suttor in the following form met with unaminious approval : " That this Conference is of opinion that any provisions in existing treaties between Great Britain and any foreign jiower, which prevent the self-governing dependencies of the Empire from entering into agreements of commercial reciprocity with each other, or with Great Britain, should be removed." r4 THE PACIFC CABLE. This discussion was again taken up, competing companies, future competition, the necessary Imperial and Colonial aid, and points of connection after leaving Vancouver were all factors some- times difficult to decide on or reconcile, and the resolution was finally passed in the shortened and abstract form, *' That in the opinion of this Conference immediate steps should be taken to " provide telegraphic communication by cable free from foreign control between " the Dominion of Canada and Australasia. ! 1 I CABLE EXTENSION TO THE CAPE. Sir CHARLES MILLS considered that it was for the interest of the Empire that in case of the construction of a cable between Canada and Australasia such cable should be extended from Australasia to the Cape of Good Hope, and for that purpose arrangements should be made between the Imperial and South African Governments for a survey of the latter route, and received permission to bring the subject forward as a substantial motion. 60 THE CABLE AS A NATIONAL WORK. Hon. Mr. THYNNE brought forward a resolution expressing the desirabiUty that the construction and maintenance of the cable from Vancouver should be undertaken as a joint national and public work by (ireat IJritain, Canada and the Australasian Colonies, and the opinion of the ('onference was expressed thereon in a resolution submitted by Hon. C. E. Foster and passed as follows : — That the Imperial Government be respectfully requested to undertake at the earliest possil)le moment, and to prosecute with all possible speed, a thorough survey of the proposed cable route between Canada and Australia ; the expense to be borne in equal proportion by Great Britain, Canada and the Australasian Colonies. CABLE EXTENSION TO THE CAPE. The following motion was submitted to the Conference and passed on the motion of Sir Charles Mills, seconded by Sir Henry de Villiers : " That it is for the interest of the Empire that, in case of the cor.struriiion of a cable between Canada and Australasia, such cable should be extended from Australasia to the Cape of (iood Hope ; and that for that purpose arrangementi should be made between the Imperial and South African Governments for a surve;/ uf the latter route. July 5th, 1894, The Hon. G. E. Foster introduced the following resolutions, seconded by Sir Henry Wrixon : " Whereas : The stability and progress of the British Empire can be best assured by drawing continually closer the bonds that unite the colonies with the mother country, and by the continuous growth of a practical sympathy and co- operation in all that pertains to the common welfare ; ^* Ami whereas : This co-operation and unity can in no way be more effectually promoted than by the cultivation and extension of the mutual and profitable interchange of their products ; *' Therefore Kesoheti : That this Conference records its belief n the advis- ability and practical possibility of a customs arrangement between G.eat Britain and her colonics by which ira.le within the Empire may be placed on a more favourable footing than that which is carried on with foreign countries. *' And ftni/ier liesolved ; That, pending the assent of the mother country to such an arrangement, in which she shall be included, it is desirable that the colonies of (ircat Britain, or such of them as ..lay be disposed to accede to this view, take immediate steps to place e.ich other's products, in whole or in part, on a more favoured customs basis than is accorded to the like products of foreign countries." 61 The debate that followed may be characterized as the debate of the Conference. Mr. foster, after a few preliminary, remarks, said : — The flag is a bond without doubt from what it typifies, the Queen is a bond because of her position, because also of her estimable (jualities, because she has lived the whole life of the present, and almost of a past generation, and because the feeling or the sentiments which exist towards a ruler are made stronger and deeper because of the affections which centre about her personally, considered as the Queen of our great Dominions. The constitution of Great Britain, wide and elastic as it is, is a bond ; the institutions which,'in common with the mother country we possess, are bonds, on account of their strength, on account of their freedom, on account of their beneficient character. The army and navy, which embody the defence of the Empire, both at home, at its heart and centre, and in its outlyir parts, is also a bond of unity, and a bond of strength ; but underneaili all this there is one thing which is stronger, in its way, than any other, and which is, to my mind, essentially necessary in order that that unity shall be preserved between parts of an Empire so far removed from each other, and, in some respects, with such divergent interests. I refer, gentlemen, to the common blood of trade and commerce which flows from the heart of the Empire out into the limbs of the dependencies, and back again with its strength, and vivifying influence, to the heart of the Empire. Trade and commerce carry with them knowledge and sympathy. It is impos- sible for the commercial community of Great Britain to have to do with the commercial interests, with the trade interests of any country, especially with the trade interests of the parts of the Empire, without getting a large knowledge of the resources, the capabilities of these different j)arts, and without, having bound up with that a material, and if you wish, a selfish interest, and the powerful and common bonds of a material and social interest are continually forwarded, contmually widened, and continually strength- ened. And, this is, to my mind, the guarantee of the future unity, the future siibility, and the future prosperity of the great British Empire. When in Great Britain a year or so ago, I was often met by this statement : — Well, but you in Canada have free entry to our markets, everything comes in free, and you put a duty upon goods which we send back to you. Are you treating us right in that respect ? That is a point of argument which is often brought up, and which is specious m its way, but there is this reply to that : True, you give an open market to the goods of Canada, but you give an equally open market to every competitor of Canada, and, conse- quetly, you are doing no favour to Canada for which you can ask a favour in return. But, again coming to the point, is there any theoretical reason why she should not treat her own colonies better then foreign countries ? 62 A Colonial consumer is worth to the British producer more than six European consumers. So that every colonial dependency that she possesses has become her customer and her commerce could never have expanded as it has if it had not been for these dependencies. Put a cordon around England for 24 days and her people will starve. That cordon could be pretty nearly as effectual if it were 500 or 1000 miles away from England. Canada, Australia and Africa can easily supply all the food that Great Britain needs. The resolution does not include all produ< ts, the only thing to affirm is that more favourable trade arrangements be given to the colonies than is given to foreign countries. My wish is that the colonies m?y commence now to enter into some arrangements by which their trade shall be developed. It may be done in two ways : A small differential rate would give the advantage. Utilize "'hat we have done in steamship subvention and vhat we propose to do in cable communication. It was moved in amendment by Hon. Mr. Hofmeyr, seconded by Sir Henry de Villiers ; " That this Conference, in view of the resolution on commercial reciprocity unanimously adopted on the 30lh of June, deems it desirable, for the present, to leave the practical initiation of reciprocal customs arrangements to separate agree- ments between the colonies and Great liritain or any of them." All &i Delegates took part, although Lord Jersey, while not wishing to be counted as expressing an opinion, read the figures from Sir Ramson Ramson's reports for 1890 and 1893 as to the percentage of trade between the Colonies and Great Britain and said that England would have to consider what effect any gieat change in her fiscal policy would have on her enormous trade, over 85 per cent, which she carries on with the wo. Id, and, as had been pointed out a good deal of that trade consists of articles which are manufactured from the raw products of the Colonies. Hon. Mr. HOFMEYR expressed his hope that the Orange Free State and the South African Republic would be admitted into any British commercial union. 63 July 6th, J 894. The following portion of the discussion illustrates one of the points of difference : Hon. Mr. SUTTOR. V'ith re>;ard to the proposition sub- mitted by Mr, Foster, I think the objection is this : Wc ask England to be good enough to assist the trade between the colonies and England, to enlarge and increase the trade between the colonies and the mother country by putting duty on foreign goods. For the sake of argument, we will say that England proposes to put a duty of lo per cent, on foreign goods received into England, and allows the colonial goods to go in as at present, under no duty at all. The position would surely be this : England would say to her Clolonies : — " We have now handicapped the foreign trade in favour of you, to the extent of lo per cent. ; we will allow your goods, as we always have done, to come in free ; are you prepared to reciprocate and allow all our goods to come into your territories free ? " Hon. Mr. FOSTER. That would be most unfair. Hon. Mr. SUTTOR. Why ? Hon. Mr. FOSTER. We have 30 per cent, on woollen goods; if England gives us on equal volumes of trade a differentiation of 5 per cent., is she so unfair that she would ask us to give her a differentiation of 30 or 40 per cent. ? Hon. Mr. SUTTOR. But if we are going to enter into such an arrangement as this, that she is going to check the introduction of foreign goods to assist her colonies, in order to increase the volume of trade between the colonies and herself, she may fairly ask us to reciprocate and allow her to send her manufactured goods on the same terms that she receives our products. I want to ask my fellow delegates if they are prepared to pledge their governments to that extent, that in the event of England allowing our goods to go in that way, and taxing the foreign goods, we are prepared to reciprocate and allow the manufactured goods of England to come into our ports free ? I for one, must say that I am not prepared to do that. Hon. Mr. FOSTER. I must projest that that is not a fair statement of the case, No man carrying on business with a business man would attempt for a moment to do business in that way. When two business men come together to talk about business, they are supposed to ask only fair advantages of either side, and one man does not say to the other " You give me p^io and I will give you 64 jQi" Neither would Hrituin or oilier commercial communities make such re(iuests. If Great liritain ^;ives us to-day no advantage over another nation, we j^ive Great Britain no advantage over another; and if Great Ikitain comes and says, " We will give you 5 per cent, over another," will she ask us to give her 35 or 40 per cent, advantage ? That would not he fair ; it is not contemplated. \V»: send wheat to Great iiritain, and get woollen goods from Great Britain. What is ihe volume of the wheat trade sent to (jreat Britain ? What is the volume of the woollen trade they send here ? If they give us 5 per cent, on the goods we send there, we will five them 5 i)er cent, on the same volume. That would be fair. But would not it be unfair to say, " We will give you 10 p(^r cent, advan- tage on a million bushels of wheat, and we will ask you to give us 35 per cent, advantage on a million dollars worth of goods in return ?" That is not a fair retiucst. It is not a business statement of the case. It is not in the resolution, and it is not fair to the deleuates to base an opposition to the resolution on a statement like that. Let us vole on this as it is ; but do not let us vote on an up.fair slalement of the case, and I nmst contend that is not a fair statement of the case. Hon. Mr. KORRHST. I think in this particular case that probably (ireat Britain would say : " Doubtless you have a duly of 35 per cent, but we never admitted that the duty was a fair thing to start with." And I would ask members of the Conference this <|uestion : Where does the fairness or unfairness come in ? Is it in (ireat Britain admitting our goods free ; or is il in the Australian or Canadian colonies charging a duty of 35 per cent ? You see, from a free trader's point of view, there is a strong ar};ument on the other side. 'Ion. Mr. FOSTER. Yes, on the principle. Hon. Mr. FORREST. The mother country might also fairly say : *' If you, say on a 30 per cent, duty, will only allow us 5 per cent., what is to prevent you putting on 60 per cent., and saying we wilt only give you 5 per cent, on that?" And the principle would apply just as well. I think it is necessary for us to consider the matter, and ascertain where the unfairness is. Hon. Mr. THYNNE. I think it would be well to define our terms. If 10 percent were allowed off some article in Canada, 10 per cent would have to be put on in Great Britain. I think that must be a mistake. I think Mr. Foster meant that the total value, in money, of reduction of the receipts of Canada on the particular goods was the amount for which Canada would seek from Great Britain a similar concession ; that is, that they would impose such a duty on goods coming in as would amount to a preference, an encouragement to Canadian material to the extent to which Canada is reducing the duty on the other goods. w 66 Hon. Mk. foster. 'I'hat tniyht be one way. Mu. HOFMKYR subseciiienlly willidrew his atnendment. Tilt; debale having ct)ntinuci], it was suggested and agreed that in the submission uf Hon. Mr. Foster's resolutions as then amended should be voted upon sirinlim. , The following was thtn moved ijy Hon. Mr. Foster, seconded by Sir Henry VVrixon : " KcsolvcJ : That lliis Conference recurds its belief in the advisahilily (if a customs arrangement between (ireat liritain and her colonies by which trade with- in the Kmpire may be |)laced on a more favourable footing than that which is carried on with foreign countries." This reailution, having been submitted, was adopted on the following division : J t'able that, when empower- ed so to do, the colonies of Great Britain, or such of them as may be disposed to accede to this view, take steps to •, lace each other's products, in whole or in part, on a more favoured customs basis than is accorded to the like products of foreign countries." " And further resolved: That for the purposes of this resolution the South African Customs Union be considered as part of the territory capable of being brought within the scope of the contemplated trade arrangements." I' 66 i^j^i^/T : "v. -:o:- THE STATIST COMPETITION It was shortly after the close of the Ottawa Conference that the proprietors of the Statist, we were told, had long considered the question of Imperial Federation as " the really vital one before the British Statesmen, and they held so strongly that it was desirable to bring this about that they offered a prize of $5000 for the best scheme for removing what seemed to be the main obstacle in the way of Federation. The attainment of this ultimate object, they believed, should be a guiding prmciple in evolving a scheme for a Customs Union. It "Jioiild be specially remarked that in the above offer, the scheme to bfj evolved was not put forward as a condition precedent to Imperial or Representative Union. A Customs Union miy be the chief reason for it or it may not. A defensive alliance may be a reason of more paramount self-interest. But given a prar tical scheme for an Inter-Imjjerial Commercial Union and you immediately have a sufficiently attractive programme to make the necessity of Imperial Federation apparent and pressing. The writer has always held ihat the only way to arrive at an Inter-Colonial agreement on commercial matters is through an Imperial Representative Union. This view has been held by many parliamentary leaders during the past 50 years, as more fully shown in Part IX. LORD ROSEBERY addressing a Trade Conference in July, 1884, said : " In England in this 19th century there were two things absolutely necessary to any scheme of administrative reform, the first was that, // should be preceded by enquiry^ and the second that /*/ should be tentative." The form of official enquiry is a Parliamentary Committee, and such a form of enquiry for solving the problems of Imperial Federation and Commercial Union might most appropriately come before an Inter-Parliamentary Committee, which would in itself be a tentative form of Colonial representation. 67 The more the varieties of suggestion, the financial needs of each separate Colonial Government, the historic proclivities and tastes of their respective people and the maintenance of the present channels of business are considered, the more I am sure will the Empire in general come to the conclusion that these matters can only be adequately considered and adjusted through the means of popular representation. All these diversities of question were fully considerec' in the 136 essays contributed in this competition and those that obtained recognition were printed in the Statist from May to July, 11S96. In the different Imperial policies put forwarr' thi r. is no thoueht of in any way diminishing or narrowing the le; Jaiiv! functions in any Colony. The constitutional powers will rci. ain tntacl, in fact they will be augmented by the power of consent in .mperial affairs. Mr. Chamberlain put forward his plan in the opening speech at the Congress of 1896 on the ground that it would insure the more extended use of the financial p'wer accumulating in one part of the Empire in the development of the natural resources which form the wealth of the Colonies and Mr. Colmer sums up the advantages in the '•' conclusion " of his essay as follows : — " It may be asked what advantages would the Mother Country on the one hand and the Colonies and possessions on the other derive from Commercial Confederation ? It would bring the Mother Country into closer union with the Colonies. IJy giving preferential treatment, on a modified scale, to British trade within the limits of the Empire the bond of unity would be material as well as sentiment- al. By such preference the doctrines of free trade, more than at |)resent, would be made possible with the Empire. On the other hand the British manufacturer would retain control of the rapidly increasing colonial markets. There would be a unity of defence of the outlying parts of the Empire and a Colonial Council for mutual consultation on matters of general interest. Greater attention than ever would be attracted to the Colonies. Emigration would flow in larger numbers to their shores. The powers of production would be increased and the United Kingdom would year by year depend less upon fcrjign source for her food supplies. Such advantages would seem to open up a profitable field of questions for our younger traders and an enlarged scope of business for our larger traders." Then again there would be new openings in the political and official field for those among us whose ability is political, either executive or legislative. The Civil, Indian, and Consular services of the Empire might well be open to all British subjects, and with advantage, in stimulating the interest of our schoolboys in the management of the Empire they will some day share in ruling. ; t t S 68 The main points which the writers of these essays had to consider were : — 1. The form of Colonial representation in EngUnd. 2. The Trade Policy. 3. Proposals as to defence. The variations on these will be found to be somewhat on the following lines : 1. (a.) Colonial representation by popular election. {^.) Or by an elective Council. {c.) Chosen by the Colonial Parliaments. (d.) Or by the Colonial Electorates. (e.) Through a committee of the Privy Council corres- ponding to the existing Judicial Committee. (/.) Advisory only. (^.) Or advisory and partly administrative. (/?.) By an elective Imperial Senate. (/) By a council partly elected and partly nominated, and ex-offico. fj J By an Inter-Parliamentary Committee appointed from all the Parliaments within the Empire (as a tentative measure) to formulate the scheme. 2. (a.) Free trade thoroughout the Empire. (d.) Free trade within the Empire. (c.) Discrimination on foreign goods and Preferential tariffs for British goods. (d.) A Preferential tariff in Great Britain on Colonial produce, and (e.) As to what the Colonies should offer in return. 3. (a.) How the fund or contributions should be raised for the purpose of defence. 69 {d.) How it should be used. (r.) Where it should be used. (d.) By whom it should be administered. {e.) Whether it should ht per capita. (f.) A percentage on the Exports. {g. ) Or on the Revenue. (/i.) Or a direct tax levied on imports for the special purpose. (The Statist, London, Saturday, February 2, iSgs.) COMMERCIAL FEDERATION of the EMPIRE PRIZE OF J, 000 GUINEAS. The proprietors of The Statist offer a prize of i,ooo guineas for the best scheme of an Imperial Customs Union. Lord Salisbury nominated Lord Lome to act as judge in tlie Competition. Lord Rosebery nominated Lord Playfair. Both nominees kindly consented to act. CONDITIONS OF THE COMPETITION. The conditions of the competition were as under : — 1. An endeavour should be made to show that the scheme proposed will maintain the integrity and strengthen the defence of the Empire, and that it is permanently advantageous to the various interests whose consent is requisite to its adoption, 2. The possibility of practical application without long delay is an important element of merit, but the judges have been instructed that obstacles in the way of immediate adoption should not bar success in the competition. It' it if If 70 (The Statist, London, Saturday, April 25th, iSgd.) CUSTOMS UNION PRIZE. AWARD OF THE JUDGES. i We have carefully read and considered the 136 essays sent in competition for the Statist Prize. We selected eight which appeared to us to be clearly superior in merit to the others, and we then divided them into groups according to their economic views. The first group contained essays which approached the subject under migiving as to whether it was ripe for speedy adoption. They propose cotmcils and conferences — to improve telegraphic communication, to increase the facilties for and the speed of trans- portation of commodities, to increase postal services and to enact uniform commercial laws. Two essays based on these laws deserve special commendation. Their mottoes are: — "Libra," (T. B. Browning, England.) " Pontcanna Leckwith," (H. Read, Wales.) The second group of essays, which propose various modes of taxing foreign imports in order that colonial imports of a like kind may have a preference in the home and colonial markets. These essays were written with ability and care. The mottoes named in alphabetical order are : " Amalgam " (T H. Haynes, Eng- land) ; " Defence not Defiance," (J. G. Colmer, C. M. G., now Sir Joseph (i. Colmer, Acting High Commissioner for Canada, Nova Scotia, Canada) ; " Ex Occidente Lux," (J. Van Sommer, Ontario, Canada) ; " The thoughts of men are widened by the process of the Sun," (Seward Brice, Q. C, England.) The third group, written with care and knowledge, is based on Free Trade, which the authors consider necessary for the continued prosperity of the United Kingdom. The mottoes are: "Nee Temere, Nee Timide," (Joseph Wrigley, England) ; " Scrutator," (Ralph S. Ashton, England.) 71 We had no difficulty as Judges in selecting these eight essays for their conspicuous ability, but we were unable to agree as to which essay should receive the prize. One of us was named as a judge by Lord Salisbury and the other by Lord Rosebery, for our economical views were known to be different when we were appointed and it is natural that we should differ as to the lines of policy which would be most advantageous for a fiscal union of the Empire. We propose, therefore, that the prize of looo guineas should be divided into two equal parts of 500 guineas. The majority of the self-governing colonies have been in favor of placing differential duties on foreign goods, and we both agree that the essay best deserving the prize for this policy of fiscal union is: Defence not Defiance." Legislation in the United Kingdom, on the other hand, is now based on the system of free trade and does not tax foreign imports of food and raw material, in favor oi a free importation of like articles from the colonies. The most able essay representing the policy of free trade is that with the motto " Scrutator " and we both agree that this essay should have the other prize. LORNE. Playfair. Sir J. G. COLMER'S SUGGESTIONS WERE : 1. That an import duty of 3% ad valorem should be placed on certain articles (specified), received from foreign countries in the ports of Great Britain, thus giving a preference to similar articles from the Colonies. 2. A contribution by the Colonies of 2% from their revenues to an Imperial Defence fund. 3. The creation of a Colonial Council appointed by the Crown and the Govenor Generals of the Colonies for consultative purposes and to administer the Defence Fund. ! f.'< • : (i) That Great Britain should extend to the Colonies and India preferential treatment in the matter of customs. (2) It might be provided in any Bill submitted to Parliament that its provisions be applied after a given date by Order in Council to any of the Colonies or Possessions of the Empire. This is to provide that the arrangement should only come into operation when the Colonies or Possessions had agrted to extend to British imports a quid pro quo, as might be agreed upon. (3) The establishment of the Colonial Council might not necessarily require legislation, although it would be desirable. So far as regards the United Kingdom, the fund to be administered by the Council would be provided for annually in the estimates, and the same course would probably obtain in the Colonies. (4) As a preamble to any Bill, the following resolutions of the Ottawa Conference, altered to suit the occasion, might be utilized : " Whereas the stability and progress of the British Empire can he best assured by drawing continually closer the bandn 'hat unite the Colonies with the Mother Country, and the continuous growth of a practical sympathy and co-operation in all that pertains to the common welfare : " And whereas this co-operation and unity can in no way be more effectually promoted than by the cultivation and extension of the mutual and profitable inter- change of their products : " Therefore resolved : That this Conference records its belief in the advisa- bility of a customs arrangement between Great Britain and her Colonies, by which trade within the Empire may be placed on a more favourable footing than that which is carried on with foreign countries." 74 APPENDICES Giving Various Statistical Tables. APPENDIX K. Prior to 1842 many articles of Colonial production enjoyed preferential treatment in Great Britain. Some instances are given in the following table of duties : — Articles. Arrowroot Ashes (pearl and pot. Bark Cocoa Coflee Furs (undressed) Hides (untanned) Hides (tanned) Molasses Rice Sugar Timber Tobacco (unmanufactured) Whale fins Wines Wool British Possessions. I,f. per cwl. I'ree lU. percwt. 2(/. per Ih. 6(/. per lb. About 100 per cent, less than foreign countries. /is • 7^' 6 /. per cent. 3(/. to 4iy be determined. (f) The Secretary of State for the Colonies shall be ex officio President of the Council. (/) The summoning of the Council shall rest with the Presi- dent as he thinks fit, or at the recjuest of a certain num!)er of the elected members of the Council. 4. The powers of the Council shall be : {a) To take cognisance of the system of excise and customs adopted by the members of the Union, with power to call for papers and information from the various Treasurers, and to advise the various Governments. (b) To receive every month accounts of the receipts from excise and customs. {c) To advise on matters of Imperial defence. {d) To determine at the end of each financial year the re- spective amounts of debits and credits belonging to each constituent of the Fiscal Union. {e) To give sanctions, with Imperial guarantee, to loans to the colonies, borrowed for purposes of Imperial defence, and to sanction payments of instalments of the loans as the work is done. (/) To advise on the subject of strategic railways, steamship lines, and sub-marine telegraphs, with a view of an Imperial contri- bution to existing or future undertakings of this nature, in return for special rights and control in times of war. 78 hi Mr. J. VAN SOMMER'S ESSAY WAS FOR: 1. A preferential rate to be given Colonial produce coming in competition in the English markets with foreign goods of a like nature from protectionist countries. 2. Contribution towards Imperial defence. 3. The calling of an Inter-Parliamentary Council to consider and report on the method most in accord with the Home and Colonial wishes. The essay was divided into two parts. Part I. '• As to the policy to be acted upon." Part II. " As to the Executive to be formed." Part I. contained the history from 1847 oi the movement for closer political and commercial union. The Colonial powers of self-government and how they were derived. Requisites in forming a Customs Union tending to Freer Trade within the Empire. Part II. Policy proposed. Procedure for the formation of an Imperial Assembly as an Inter-Parliamentary Committee. Objections to an Imperial Council. Examples of Foreign Parliamentary representation. Ifi SUMMARY OF PROPOSALS. 1. That resolutions should be introduced into both Houses of Parliament at Westminster for the appointment of a joint committee to report upon a Customs Union within the Empire and matters con- nected therewith. 2. That the Colonial Governments be invited to appoint similar committees for the purpose of a joint conference and report with the committee of the Imperial Parliament. 79 Matters for consideration in committee : (a) Amendment to the Australian Constitutional Acts. (/^) A Draft Bill in respect of the bonus towards an accelerated Atlantic service. (c) A Draft Bill for divisions of the expense of survey for a Pacific Cable. (d) Recommendation and Draft Bill to amend British Cus- toms Act for the purpose of placing a revenue import tax on certain I)roducts to be named therein. Preparation of schedule in proposed Inter-British Customs Tariff. {e) Report as to Colonial contributions towards the Imperial Navy. (/) Consideration and report as to what, if any, alteration should be proposed in existing foreign treaties, (g) Recommendation in regard to Colonial representation in the Imperial Parliament. Mr. SEWARD BRICE'S essay commences with reference to the various tariffs of the United Kingdom and the Colonies and gives statistics of exi)orts and imports. The author says under Part II. : There can be no reasonable doubt that there is no alternative between (i) A Union more or less closely assuming the form of Federation, and (2) A breaking up of the Anglo-Saxon dominion. To write an epitome of Mr. Seward Brice's essay shorter than the 7 pages in The Statist, May 1896, p, 675, is inadequate. The essay is written after months of thought and elaboration to detail, historical, legislative and as to organization which a knowledge of the Colonial history and constitutional law can produce. There is however, wanting an acquaintance with the self-reliant spirit of the colonists, and the character of the Customs Union propounded in tnis essay always reminds me whenever read of the character of the king in Samuel's answer to the appeal of the Children of Israel. 80 A Council is proposed in which the people have no direct voice, and which is to have the collection, disbursement and legislative authority over all the Imperial Customs, free from any veto from the Sovereign or other governing body. Such Council to consist of 107 members, partly elected by the different Houses of Parliament and partly nominated by the Secretary for the Colonies, and of 10 co-opted members specially chosen by the elected members for their expert knowledge of trade and commerce. It would be impossible to have such a Commercial Council with unbiased political feeling on the two great and divergent ([uestions of Free Trade and Protection, and if the party feeling was etiually divided, I am sure the election of the 10 co-opted members would be on their expert knowledu;e as a ceitificate of candidature but on their political bias as the ground for their selection. The Council, after organi/.atioii, was to have administrative powers for the first three years. Partly legislative and administra- tive for a following period, and during this second period any part of the Empire aggrieved or damaged in business or trade by the new regulation of tariff rates would be entitled to compensation. The final period of existence would commence on a special resolution by the Council to that effect and then the levying and distributing of duties would come completely into their hands, and all customs dues carried to a general fund. The essay is divided into seven parts. I. Introductory. II. The constitution of the self-governing colonies. III. Essentials of an Imperial Customs Union. IV. The Crown colonies. V. The Council of the Union, VI. The constitution of the Union. VII. The Act of Union (being a draft in outline of a proposed Act). ■M 81 THIRD CONGRESS OF THE Chambers of Commerce OF THE EMPIRE. June 9th -12th, 1896. LONDON, ENGLAND. The Third Congress of Chambers of Commerce of the Empire, for which the invitations were sent out by the London Chamber of Commerce in May, 1895, was inagurated in the hall of the Grocers. Company on June gth, and continued to June 12th. OFFICERS OF AND DELEGATES TO THE CONGRESS. Hon. President, the Rt. Hon. Joseph Chamt-erlain, M. P., Secretary of State for the Colonies, President Sir Albert Kaye Rollet, M.P., President of the London Chambers of Commerce. Among the Honorary Vice-Presi- dents there were : Sydney C. Buxton. M.P., Late Under Secretary of State for the Colonies^ His Grace the Duke of Devonshire, His Excellency the Marquis of Dufferin, the Earl of Jersey, the Right Hon. Viscount Knutsford, late Secretary of State for the Colonies, the Marquis of Lorne, the Hon. Sir Donald A. Smith, the Rt. Hon. Sir Chas, Tupper, Mr. R. R. Dohell, representing the interests of Canada. List of Canadian Associations which appointed delegates from Canada : Belleville, the Hon. S^r. Mackenzie Bowell, K.CM.G. *S?51^ V2 - -^ ^1^ y # % y J 4V> s IMAGE EVALUATION TEST TARGET {MT-3) A < ^ L^ * f/O fA Photographic Sciences Coiporation 23 WEST MAIN STREET WEBSTER, N.Y. 14580 (716) 873-4503 1.0 If 1^ 11^ ^^^^ 1.1 l.-^iis '•25 1 U II 1,6 1 iL" ^ 6^ \- "W 92 that principle that you extend it. I do object to the terms upon which some of the speakers have alluded to the thin end of the wedge. You have introduced it yourselves, in fact you have never rid yourselves of it ; all we want is for you to pu!" it in a little deeper. But at any rate, gentlemen, effectuate and implement the terms of the resolution in any way which may meet the wishes of all. Mr. R. a. LOCKHART (Edinburgh) proposed to move as a further amendment, when the one before the meeting was disposed of, a motion lookmg towards political as well as commercial union. The resolution being as follows : •* That, in the opinion of this Congress, it is the duty of the Government to Like immediate steps for the attainment of a closer political and commeicial union between the Mother Country rnd the Colonies ; and that a copy of this resolution he sent to the Prime Minister and the Secretary of State for the Colonies." tl Mr. JOHN W. WILLIAMS, J. P. (Leeds) : I have always understood that it is well to distinguish between patriotism and the practical work of Commerce. So I think we had better begin by clearing our minds of this confusion between what is patriotism and what is commerce. By all means let us do all we can to unite ourselves as one Empire — a grand Imperial Federation — but do not let us confuse the practical work of commerce with the ideal work of an Imperial Federation. I so identify the Colonists with ourselves that I find it difficult to separate them from ourselves in such a matter of discussion as this. All those proposals of preferential duties are but different de- grees of the system of protection, all shades of it, whether preferential or diffeiential duties, I distrust. It is injurious to those who adopt it and one of the most fruitful sources of international jealousies and hatred. Hon. W. p. REEVES (Agent General for New Zealand) : I rise to call the attention of the Congress to the great value of the speech made by a delegate representing Leeds, not because I agree with it, for I disagree with almost every word the speaker utiered, but it brings us face to face with the real issue. The question now before us is whether we are prepared to consider the taking of any such step at all, or whether we think the whole proposal a mistake, and one that ought to be opposed. As to the question, " Why mix up Imperial Federation with commerce?" If this great question is to be faced at all it can only be approached by some great step, as has been hinted at to-day. I do not believe the Colonies of Australia as a whole are prepared to iiii 93 ^o any further than at present, but I do believe that if the case were fairly put to the masses of the people they would say, " This is a question for our most earnest and careful consideration." If there is one thing that the self-goveming Colonies would be reluctant to do, it would be to commit themselves to heavy burdens now undetermined for Imperial defence without some kind of quid pro quo. Mr. JONATHAN PEATE (Leeds) ; Considering certain re- ferences made to Leeds, I must say, in dealing and considering the Toronto Resolution, the Leeds Chamber came to a practically unan imous decision in its favor. The discussion was taken part in by Mr. S. T. Mander, VVolver- hamption ; Mr. Sydney Buxton, M.P. ; Mr. Thomas, Morgan, South- ampton ; Hon. R. Reed, Victoria; Mr. James Huddart, Melbourne ; Mr. R. D. Burnie, Swansea ; Col. Howard Vincent, M.P.; Mr. Thos. H. Haynes, London ; Mr. A. M. Mond, Notthwick ; Mr. C I. Dunn, Cork : Mr. G. P. iirown, Plymouth , Col. Robson, Sunderland ; Mr. H, T. Hibbert, Blackburn ; Mr. B. F. Stibel, Nottingham ; Mr. E. Helm, Manchester ; Sir Frederick Young, K.C.M.G., South Africa ; Hon. John Henry, Hobart ; Mr. R. L, Patterson, Belfast ; Sir G. W. De Voex, Sir C. F. Blaine, Mr. W. H. Mitchell, Bedford ; Mr. W. T. Appleton, W. Firth. London ; Mr. John Ross, Dunedin ; Mr. John W. Williams, Leeds ; Mr. W. Field, M.P., Mr. R. A. Lockhart, Edinburgh ; Mr. Frederick Ellis, Danesbury ; VV. R. Grigg, Middlesborough ; W. E. Rider Cook, West Ham. The PRESIDENT : Gentlemen,— Before I put the resolution I may be allowed one or two remarks with a view of attaining what has been desired by so many members of the Congress, viz., the means of some general agreement. We have had a long and able and exhaustive debate. The sympathy and regard of the English members of the Congress to our Colonial friends is of the very deepest and if they may be unable to completely agree with them, it will be from no want of desire on our part, but because of the regard and respect which we are bound to pay to the truth and sincerity of our connections. (Cheers.) As the result of the interchange ot friendly though firm opinions, I may be able to suggest some resolutions which will carry the respect of the Congress generally The result is one of enormous consequence for what you determine should be the basis of action of those who should be in even more responsible positions, What do we find especially distinctive of this Congress? We find a senti- ment which excites the deepest enthusiasm on the part of all British people. Commercial union is a splendid ideal if, practicable. We «l^iP'^9in 94 have heard it spoken of as a dream. 1 would rather say that the time has come when you have the realization of that splendid poetic dream of Miton when he said of his country : 'i •' She stands with all her daughter lands about her, Mistress of the Seas and heiress ol the lands beyond the seas." Let me remind you that the unity of which we are speaking has a political aspect in the widest and last sense of the word " politics," I mean in its ancient connection, *' the welfare of the State." The very basis of our Commerce is the exchange of our manufac- tures and food, and our people under all circumstances of peace and war should be assured of the food and raw material on which they rely. I believe that end would be greatly conduced to by such means as commercial union and by united Colonial and Im|:2rial Defence. There is one thing on which we are all agreed, and that is that this matter shall be considered and the statesman who has charge of the Colonial interests has come among us and invited us to help him and his colleagues in the ministry in the solution of this important question. It is with this object that, in concert with many who have taken different views, I have endeavoured to frame a resolution expressive of your points of agreement and indicative of the course that you think would be most likely to lead to their fulfilment. The resolu- tion is this : "That this Congress of Chambers of Commerce of the Empire is of the opinion that the establishment of closer commercial relations between the United Kingdom and the Colonies and Dependencies is an object which deserves and demands prompt and careful consideration. The Congress therefore respectfully represents to Her Majesty's Government that if the suggestion should be made on behalf of the Colonies or some of them, it would be right and expedient to promote such consideration and the formation of some practical plan by summon- ing an Imperial Conference fully representative of the interests involved or by such other means as Her Majesty may be advised to adopt. That copies of this resolution be forwarded to the President, to the Prime Minister, the P'irst Lord of the Treasury, The Secretary of State for the Colonies, the leaders of the opposition in both Houses, the High Commissioner for Canada, and the Agents General for the other Colonies." The Montreal amendment was then withdrawn. The Toronto Board also withdrew their motion. The Fort Qu'Appelle and Montreal Chambers of Commerce accepted the resolution and the Edinburgh Chamber of Commerce withdrew their amendment, reserving the right to again bring it forward. 95 The Presidert then moved the resolution from the chair and Mr. E, B. Osier seconded the motion. After Mr. W. H. Williams, Chairman of the Council of the London Chambers, had spoken (at the reciuest of the President) and who had been instrumental in getting the resolution into the form in which it could be agreed to unanimously, the leave of the Congress was given'for the withdrawal of the original motion and amendments and the resolution, as proposed, was carried unanimously amid loud cheers. The following subjects and matter for consideration was brought before this Congress : By Mr. \V. J. TONKS and Mr. T. J. WALSH, of Birming- ham : " That, as a first step towards Imperial Federation, it is desirable that a con- sultive Imperial Council should be formed and that, this Council should consist of members elected by every self-governing Colony. -:o: ■ THIRD DAY. Thursday, June J Uh. PROFESSOR DAVE WILSON, of Aberdeen, and Mr. JOHN MACDONALD, LL.D., London : •' That it is highly expedient that the commercial law of the whole British Empire shouldjnow be embodied in a code and for the appointment of an Inter-Im- perial Commissioner summarising the contents of this code, the chapters would fall into the following groups : {a) Partnerships. (/>) Companies. {c) Agency. ((f) Sale. (e) Lien. (/) Contract of Guarantee. , Ig) Insurance. {/i) Merchant Shipping (/■) Carriers by Land. (/) Shipping. (/•) Bills of Exchange. {/; Bankruptcy By Mr. R. F. DALY, London, and Mr. JAMES ANDERSON, Edmburgh : " That the Law of Copyright should be uniform throughout the Empire." FW f! ■'' 96 By J. X. PERRAULT, Montreal, and the Hon. ROBT. REID, Victoria : " For an alternate and direct line of communication between Australia and Canada without further delay, and for Imperial and Colonial Government aid." And a further motion subsequently moved by Mr. PER- RAULT, and Mr. K. N. McFEE, Montreal : " For a reduction in the rates of postage." By Rt. Hon. Sir JOHN LUBBOCK, Bart., M. P, and Mr. W. garland SOPER, Capetown : " In favor of universal arbitration." By Mr. S. P. BOULTON, Chairman of the London Labour Conciliation and Arbitration Board, and Mr. B. F. STIEBEL, Nottingham : In satisfaction of the principle of arbitration in Labour Disputes and in favour of the extension of the movement. FOURTH DAY» Friday, June J 2th. a Motions made by Mr. E. T. DOXAT, Sydney, and Mr. JOHN C:00KE, Melbourne : " In disapproval of the method adopted in Bills of Lading of inserting clauses contracting ship-owners practically out of all liability." By Mr. Charles McARTHUR, Liverpool, and Mr. A. SCHOFIELD, Newcastle : " Against proposed new sound signals at sea." By Mr. B.PLUMMER, Newcastle, and Sir DONALD SMITH : " Against the levying of Light dues of shipping and charging the maintenance of Lighthouses, Buoys etc., to the consolidated fund." By Mr. J. CARLICK, Capetown, and Mr. W. GARLAND SOPER : " In respect to obtaining lower freights to South Africa and enable shippers to compete against (German subsidies. fi 97 Bv Mr. JOHN W. WILLANS, Leeds, and Mr. H. F. HIBBERT, Blackburn : *• For railroad conneclions in Burmah and China." By Hon. T. M. DALV, Winnipeg, and W. STEPHEN NAIRN, Winnipeg : " For the encouragement of emigration to the Colonies." By Mr. FRANCIS HART, Perth, Western Australia, and Mr. J AS. HUD DART, Melbourne : " In favor of emigration to Western Australia." By Mr. J. X. PERRAULT, and Mr. H. HARRISON, Handsworth : " In favor of the decimal system for weights, measures and currency." A valuable resolution was handed in too late for consideration by the Halifax Board of Trade through Mr. Millar, which the Pres- ident read. The resolution was to further the appointment of a Committee to prepare a scheme according to the suggestions of the Secretary of State for the Colonies and as much as possible in accordance with the resolution of the Toronto Board of Trade. After the usual resolution of thanks to the President and Chairman the third Congress of Chambers of Commerce of the Empire came to a close with the singing of the National Anthem. i*t rr^w 98 BANQUET AT THE NATIONAL CLUB, TORONTO. The appreciation with which Toronto viewed tlie part taken by the delegates from their city was shown by a complimentary ban- quet tendered the delegates at The National Club. A large number of representative men gathered in the rooms of the Club. The delegates, who were the guests of the Club, were Mr. E. B. Osier, M. P., President of the Toronto Board of Trade ; Mr. Frank Arnoldi, Q. C, IMr. William Christie, Mr. J Kerr Osborne, Mr. Fredei 'ck Wyld, Mr. W. F. Cockshutt, of the Bo^rd of Trade, Mr. Edgar A. Wills, Secretary of the Board of Trade, and Mr. J. Castell Hopkins, who represented the Canadian Manufacturer's Association at the Conference. Lientenant-Colonel G. T. Denison, President of the British Empire League in Canada, presided. To his right sat Mr. E. B. Osier, M. P. for West Toronto, Mr. Frank Arnoldi, Q. C, President of the Club, Mr. W. F. Cockshutt, (Brantford), Mr. J. Kerr Osborne, Mr. Edgar A. Wills and Mr. J. S. Willison, Editor of the Globe, whilst to the left of the Chairman were Mr. Faithful Begg, M. P., Glasgow ; Mr. W. Christie, Mr. D. R. Wilkie, Mr. F. Wyld and Dr. Parkin; and Mr. Hugh Blain, Mr. O. A. Howland, M. P.P., and Mr. W. K. NcNaught occupied the vice chairs. COLONEL DENISON'S SPEECH. In proposing the toast of " Our Guests " Lieut.-Col. Denison said that the occasion which had caused the gathering, namely, the Conference of the Chamber of Commerce, was one of the most important events in the history of the Colonies and the Empire. The meeting in London was specially interesting because it was opened by the most prominent statesman who had ever held the Colonial Department in the British Government. The Rt. Hon. Joseph Chamberlain was a man of the greatest administrative ability, and one who was in the foremost rank of the statesmen of the Empire. II 90 Canada, the fifth maritime country in the world, did not pay a cent for her naval defence. It was necessary to make arrangements for the consolidation of the Empire, we should move from one step to another, and the first and most important point was a scheme for a commercial ZoUverein which would unite the Empire by the bonds of trade. This was the principal question which the delegates had to bring before the Conference in London. There was no need to say a word in favour of preferential trade. The advantage to be obtain- ed by such a system would turn the whole tide of British emigration and wealth into the Colonies instead of having these forces used to build up foreign countries. England consumed 29,000,000 cjuarters of wheat, of which 4,000,000 were grown in the country and 8,000,- 000 imported from the Colonies. If, for instance, there was war with Russia, the latter country would place an embargo upon giain, and England's magnificent army and navy would be of no a- lil if the food supply was cut off. Therefore, it was for the advantage of both England and Canada to have preferential trade, because the Colonies would then be filled with British settlers, who on British soil v.ould grow food to feed British people. (Cheers.) At the Conference Mr. Chamberlain threw out a suggestion that England would meet the Colonies in a friendly spirit in regard to any proposition seeking this end, and the idea was endorsed by the Conference. Therefore it only remained for the Colonies to act. Mr. E. B. OSLER, M. P., thanked his friends for the magni- ficent reception given to him and to the other representatives of Canada at the Congress. At the opening of the Congress two or three delegates expressed themselves strongly on one side or another ; but before the end of the Congress arrived almost every man felt that a scheme could be devised for preferential trade in England without interfering with the shibboleth of free trade. We in Canada have in our hands the power to set the ball of preferential trade rolling. It did not enter his mind that there was a possibility of Canada ever becoming a part of the nation to the south. (Applause.) He had every desire to see the continued existence of the closest possible friendship between the two countries. (" That's right," and " hear hear.") But he would not like to see them add their little— or their much— to the problems of their friends to the south. Those problems were connected more with the conditions arising from vastness, and greatness of population, than with anything else. Canada had to work out her own destiny. He believed it was in her interest to work it out on the broad principle of being an import- i' 100 ant member of a great empire, the empire that, if the dream of the Imperial Federationists takes place, has only begun her march to greatness. (Applause.) Since confederation they had completed the consolidation of Provinces that reach from sea to sea They had complet::d the greatest railway commercial undertaking of the continent. Despite the doubts and forebodings of a large portion of their own people, they had carried out successfully one of the greatest commercial and financial undertakings of the world. PROGRESS OF THE NORTHWEST. It has over and over been said that there has not been the progress made in nlling up the Northwest which had been expected. There had not been the progress. That, however, was due to other causes, causes not under their control. Yet, in spite of all, he asserted that no more prosperous body of people existed on the earth than the farmers who went to Manitoba at the first. Despite a hard struggle, he thought them the best-off farmers on the continent. He knew of instances where from the crop of this year farmers had paid the entire price of their land. il: He believed that we were now beginning r» period of prosperity, such as no part of this continent has ever seen. (Hear, hear.) They had opened up the mountains of British Columbia, which at one time were such a bugaboo, and from one end of that country to another, two thousand miles, they found everywhere enormous mineral wealth. The hills were tilled with mineral wealth, the valleys were filled with fertile soil, on the mountain sides were stores of wood and water ; there was going to be the greatest developement in British Columbia. The result of mining was to benefit agricul- ture, and the developement of the mineral resources of the country would assist the Manitoba producers, and would cause the prairies to rapidly fill with settlers. He would say in conclusion that ihey had in England the sympathy of all the leading minds there. If their Government quietly took hold of it, and gave here and there a little preferential trade to England and the Colonies against those discriminating against them, it would very soon set the ball rolling. ! BtT 'Si' Mr. faithful BEGG, M. P., member of the British House of Commons for one of the divisions of the City of Glasgow, said he was here somewhat under compulsion, as he was near the completion of a long journey, and had only been prevailed upon to remain in order to be present at this affatr. He felt rewarded for having remained by the unanimity of opinion here expressed. Opinion 101 on this subject in the Uuited Kingdom is rapidly ripening, and the ('obden Club, notwithstanding the condition of the United Empire propaganda, is improving. Irately many men of prominence have come out into the open, and perhaps nothing has so consoHdated public opinion on the matter as the recent Conference of the Cham- bers of Commerce, which proved that there is a definite policy of trade between the Kingdom and the Provinces. This is something larger than a Canadian question. Up to now we have had a gigantic Empire, but the parts have not been welded together. Now we are fmding more and more every day that the resources of this Empire are practically limitless. There are enormous coal fields in all parts of ]{ritish territory, and the traditions dependent upon those mighty deposits are part of the marvellous history of Great Britain. Now we have gold prospects which constitute an almost new resource. In West Australia, in New Zealand, in South Africa, in British ('olumbia, in Ontario, immense developement is going forward. Coal supply means the command of the sea; gold supply means command of the sinews ci war, because it is the one metal which must always be the only measure of value. Now, it should not be forgotten that there is a double point of view on this question. We have to look not only to the zollverein, but to the kriegsverem, for so soon as trade relations are satisfactorily arranged we shall have to arrange the military part. The Duke of Devonshire is the titular head of the Unionist party, and it contains many of the brightest minds of public men in the Empire, men who represent influence impossible to estimate without intimate know- ledge of the home politics. I would very strongly advise that great attention be given to the words of the Duke of Devonshire. It is a happiness to know that the British Empire League is the body responsible for this statement of the Duke of Devonshire. I should like to refer to a recent statement of the Lord Mayor of London, that no more fitting tribute could be offered her Majesty than such a scheme of British unity as this. Dr. PARKIN'S opening words described the subject as one of the greatest and grandest which had ever occurred to the human mind. Dr Parkin made a rapid survey of the field of Imperial fed- eralism, remarking that the innumerable meetings all over the Em- pire on the subject were a sign of life and movement. This awaken- ing, he said, was the result of the earnest labors of a band of men, who, as the editor of the London Times had remarked to him just before he came out to Canada, " had shifted England." Another sign of the amazing progress was the men who in Britain were turning to this policy. Lord Rosebery had taken a journey around the world and come back with enthusiasm on the I; i' 102 subject. Mr. Chamberlain, a man of keen, incisive mind, had seen that the main current was setting in that direction and had thrown himself into it. Day by day and hour by hour the ICm;)ire was becoming more in a position to maintain and to feed itself. Whilst we wanted to throw ourselves open to the whole world, we did not want to be de- pendent upon the whole world. In the past we had been a poor people, and as such we had de- veloped a steadfastness of purpose which would make us one of the strong northern nations of the world. A Conference was sitting in London discussing the question of laying a cable across the Pacific, the country was to have a system of cold storage, whilst in the west enormous mineral deposits had been discovered which were going to strike the imagination of the whole world, and which would bring an immense population to British Columbia. This large population would have to be fed, the crops of the prairies would thus be turned westward instead of eastward. When Canada looked at the Empire, and its constitution, and compared this with the reeling < hariot of State in the great republic to the south, it must think Ihat there was some difference in the constitution which wrought this great distinc- tion. There was not a single man who did not believe it would be great danger for this country to be closely connected with that republic. I Canada should look to the British idea of national honor, and should consolidate with the Empire, by doing which it would carve out for itself a greater sphere and ensure itself a nobler destiny than by any other means. * 103 I^JLI^T VII. ;o: PARLIAMENTARY REPORTS. COMMERCIAL No. 17, (1893.) . . . Return of . « • Most Favored Nation Clause In cxistmg Treaties of Commerce and Navigation between Great Britain and Foreign Powers. Stating the Period when terminable, and showing whether they apply to the British Colonies. In Force on the 1st August, 1893. Presented to both Houses of Parliament by command of Her Majesty, December, J 893. The object of these Treaties known under the designation of Foreign Treaties of Commerce and Navigation, is to afford equal rights to the countries and colonies of each of the contracting parties. There are two special Treaties regulating such reciprocal treat- ment, namely, Treaty with Belgium, 23 July, 1862, and Treaty with the ZoUverein, 30th May, 1865. Article XV. of the Treaty with Belgium is as follows : " Articles, the produce of manufacturers of Belgium, shall not be subject in the British Colonies to other or higher duties than those which are imposed upon sinilar articles of British origin." This Treaty is terminable in 12 month's notice. 29fl m 104 Article VII. in the Treaty with the Zoilverein is : The stipula- tions of the preceding articles therein to VI. shall also be applied to the Colonies and foreign possessions of Her Britannic Majerty. In those Colonies and possessions the produce of the States of the Zoil- verein shall not be subject to any higher or other import duties than the produce of the United Kingdom or any other country of the like kind nor shall the exportations from these Colonics or possessions to the Zoilverein be subject to any higher or other duties than the ex- portation from the United Kingdom. This treaty is terminable on 12 month's notice. While these two Treaties remain in force the express stipula- tions above quoted are extended to all countries whose commercial treaties with Great Britain contain a '• most-favored-nation clause and they apply to the British Colonies." It has been decided by the authorities in England that there is nothing in the above Treaties that precludes the United Kingdom from making any preferential arrangements with the Colonies. The report, of the Earl of Jersey on the Ottawa Conference states, under the authority of the legal advisers to the Crown, that these Treaties do not preclude the Colonial Governments from mak- ing preferential arrangements among themselves, but the United Kingdom is precluded from receiving better terms in the Colonies than other countries who could claim the same rights under the most favoured-nation clause in their Treaty with Great Britain. The Colonies can give each other any preference they wish. For some years the practice has been to insert a clause in the Treaties that they shall not bind the Colonies unless their assent is given to them within a certain time. The following table shows in which of the Treaties the Colonies are included and specifies whether Great Britain included them in the Treaty, or if liberty was given them to assent or decline, which coursv^ they adopted. The Treaties afreet 752,000,000, providing for reciprocfty of trade on the most advantageous terms ofTered by any one nation to any other. 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V •i b 5 c Q.>i * * * *! 9 :£ "? n 9-rt «j i) u 3 - - o n u.a ^> we go u O ,- >. o I p C f~ u * 00 0^ O 00 C — ho *" • - « - *^ c V e V c3 .s o O O 4) u - •5 a X S * u •- £'>>^--t/2 si So oS ' 107 -:o:- COLONIAL TARIFFS. a - per cent. i /> b - lb. ^ <« cS c - loolbs. >, c B ^ TJ "(5 .2 d • bu B 01 _« J3 E T3 ■.-» 2 e - barl. 75 'C •0 B 3 13 l3 C4 S nS ■i- ts f - free R - gal. h - ton rt •a d C a U 1; 0. n S B 2: 3 2: •73 >5 2; a <3 *-» S s f2 .2 1 Agricultural 20 h F F •s Implemenfs to 35 a to loa F Sa b to 30 a h to •sa «S a to 25 a 5 a 20 a sa Notes, Beef d d 2 b F 5a sa s 4/c F I a b d 1 b 10 a d I b s 7c d lib Boots Sl Shoes 25 a 74 12a F 5a 25 a F 20a *ss 8 to 22 to 33 20a 30 to 60 s s loto "•per a dozen pair. • Books b& 20 a F F F F F F F F F F 35 a b t( •5 a Cambrics 21; r. 12a F 5a sa 25 a F loa 5 a 15 a 20a F lo a ' Carpets 25 12a F 5a 5a 25 a F iSa '5 a •5 a 20a 20 a 10 a Cheese (^ b 12a F 5a d s F 15a d 'S d d d~ 2 b 3/c d 4b a 2 b 2 b 3 b China ;o a 'S a I2i t-' ^1 sa S3/C P 20a 25 a '5 a I2ii> 15 a to '5 a Clothing &d i2a h' sa 'Sa 30 a F 2Sa 25 a 25 a 20 a 10 a 2^ 1. 50 a Cloth ,50 a 12a F 5a 5a 30 a F 20a 15 a F 20 a ^5 ^ •5 ' Coal Oil U s F d d F d d F T" d kerosene) 2i ■/K 'K 6g 6g dg g 6g 6g - 4i g 'I aiin.T Coffee (raw) 10 a S12 /6 c SI4 /c 5a d ij? d 2^ b F d 3j d 10 a d 3b F d I b Cotton Goods 20 J' to .^O a 12a F sa sa 25 a F lOa 15 a F 20 a F 10 i 2j a Earthenware 30 a 1 2a F sa 5a 25 a F.a 20a to 25 a 15 a I2^a u 8* 's;a ■ per cubic ft Electroplate 30 d 12a F sa S"a" 27"a F 201] 25 a 25 a 20 a 20 a •5 a Fish (dried or in barrels) dib to d 1 b F F 5a 5a 25 a F d b 10 c s 2/- d I b d I b Q 2 b d lb per do/ lbs. Flonr 2C a s S/c F sa 5a s 16 c F s i/c S 20 a 10 a 2 c d 2b 1 10 h Furniture 3t) a 12a F sa 5a 25 a F.a 25a 25 a 25 a I2.)a 40 £ 20 n Hardware JO a 121 F 5a sa 25 a F 2ca 15 a 10 a 10 al F 15 -1 fPius I per cent, primage. 108 a • per cent. 1) - lb. c - loo lbs. >, c (It en 'a << d - bu. e - barl. f - free 01 c c "o U is Horses 2o a 12 a F S a F S25* F F ss* fai /:2* f,i 1 sioh 10 d F 1 a F F F 10 F IS» F " each Iron I a F »^" ; b Iron Rails jO a F F I a 1 a F F lOa F loa F F hh Nails to 35_a (2 a !<' I a I a F !•' loa s 2 c •*3c s2 6c s7 6c sa Lead IS a to lo a (2 n F Sa sa 2Sa F F F <2 6c 10 a s2 6c s2 6c d^b sa Leather to r2 a F Sa Sa 20 a b' to d4b «Sa loa d6b to 23 d 6 b 1 'Sa Lumber (rough) F (o d to 30 d 2 a F F 5a sa sa F s 2 6 to 10 10 a Fa F S 2 20 a s I 6 7 F F to 25 a lOa F sa F Machinery outfits sa 3Sa* * many excep- tions. O.its 15b S 2/c F sa sa d2ib 1-' dgc d8c s 2 c si 6c S ■^ r d4l) Paper (O n 12a F sa F — 25 a F 15a < 2 c F to Sa F sa F 10 s 6 c K tii sa Paints to f2 a F 5a Sa 2Sa I'SC to s3c s4c dib s 40 h 10 a ^5 a S4r Pork li b 2 b s"37 6c F sa d2b d 7c Fd2 d2bd3l) d4b dab d2b a 20 Kice i b F sa S I c I2ia F s s6c dib S3C d lb s 6 c S2C Salt 7i+ cts a *5l' F X sa d 10 h s h < 10 h F S 2S h SI 6c s 20 h s 20 h Sugar (refined) lib •63c V sa di b SI4C F S c d i b i s6 8c S3C s6c s 3 c S4C Sugar Silk 30 a 10 a 12 a dTi. F d4l- 5? sa sa d6b 25 a d3b Fa F 2 sal ^6^, iSa d6b 10 a 10 a 20a 25 a d3b a 3h i Silk Tea d4b Tin I- 5 a F sa sa F F F F" F F F sa Tinned meat 25 P d2b F S a sa 25 a F 20 a d4b 10 a 10 a d2b [l34b Vegetables (in tins) lA b d2b F sa sa 25 a Fd 20 a i s 16 lOa F s6* [0 a •per do pir.'ts Wheat 6Jr IS a s 2 c F sa sa F Fd rlgc d4c F SI 6c S 2 II c sa Wooden ware •to 12 a F sa sa 30 a F rsa 'Sa 21; a 20 a 3Sa 15a 17.^3 Wool lUb I2a F sa sa F F F 'Sa (oa F iSa Woolen goods 35 r. 12 a F _5_^_ J_a_ 25 a F I 15 a «Sa 15a 20^2 40 a iSa tfreefroni British possession. lI 109 A lesson we can learn from the history of the tariffs is the extreme difficulty of steming the natural tendency of a tariff to extend and become higher when once it is formed for the protec- tion of traders more than for revenue. GREAT BRITAIN, or the United Kingdom as it is usually referred to, is in a very different position from the remainder of the Empire, her trade largely consisting of receiving and again distribut- ing ; hence her disinclination to any policy liable to restrict this trade. The imports are reckoned at ;,^4o8,5o5,ooo. The Customs revenue for 1895 ^20,010,000. The total Public Income being estimated at ^94,175,000. Population 38,000,000. THE CANADIAN TARIFF ACT of 1897 has four points of special note : The first is the preferential rates on British goods. The second is that fish direct from Newfoundland are free, in comparison with duties from, i ct. per lb. to 25 p.c. from foreign countries. The third. — Salt imported from the United Kingdom or any British possession is free in comparison with duties at the rate of 7^ cts. per 100 lbs on foreign salt. The fourth — Tea and green coffee imported direct from the"" country of production or purchased in bond in the U.K. is free, in comparison with a 10 p.c. duty on other importations. Revenue $37,809,000. Imports .iii93,ooo,ooo. Exports $123,000,000. Population 6,000,000. no M ^ THE NEW CANADIAN TARIFF OF J 897, Extract /torn the Glol/e, Toronto, Canada. % The cardinal feature of the tariff is the 25 per cent, reduction on British goods and on those of other countries which open their markets to Canadian products. Protection shall be removed from or lowered, by order in Council, upon industries in which there are trusts or combinations to increase prices. Iron and steel duties are reduced by from $1 to $i 50 a ton and the bounty is increased by $£ a ton. All machinery exclusively used in mining enterprises is put on the free list. Manufactures will be benefitted by cheaper iron and other raw materials. The general effect is to remove specific and substitute ad val- orem duties. Classifications are very much reduced and simplified. Duties on spirituous liquors are increased by fifteen cents per gallon. Rice uncleaned, unhuUed or paddy, is increased, while the cleaned is],left*asjt was. The wheat is reduced from fifteen cents to twelve cents a bushel, and the duty on wheat flour is reduced from 75 cents to 60 cents per^barrel. Coal oil is cut from six cents a gallon to five cents ; fuel oil from three centsko 2 1-2'cents. Duty on refined sugar is reduced equal to about 22 per cent, on the former protection. The main body of the tariff as it affects foreign countries is not materially disturbed. In some cases the duties are actually increas- ed as against foreign countries. Ill THE CAPE OF GOOD HOPE under Act i of 1889 levied a duty of 12 per cent, upon all unenumerated articles. The schedule of specific articles is small, but it contains nearly all the staple articles of food on which the duties are high as shown in the above table The Customs duties form the larger portion of the Govern- ment revenue. The trade is chiefly with the U. K. The Imports were ;^i 1,364,836. The duties received, £\,- 495,882. The population 1,526,739. THE INDIAN TARIFF Act— No. 8 of 1894 presents us with Act for Revenue only. A glance at the table shows that a 5 per cent, ad valorem duty is levied on Imports, There are but a very few exceptions. Populations 290,000,000. We would call special attention to this Act as forming a model that might well be adopted by other Governments, perhaps partially by the Empire for a Customs Union. The general rate imposed of 5 per cent, places trade on an equal footing, and gives no favoritism to special dealers. It is an Act easily understood, impossible to avoid, or one likely to lead to different treatment of the same goods under different names or ports, and it cannot be charged with ex- clusiveness. We believe it to be a correct principle for a fiscal policy carried into practice. NATAL.- revenue only. -Customs Tariffs, 1886-9-90-92-93. The Tariff is for The value of imports by sea was ;^2,236,738. Its revenue for Customs, ^i95,888"o"7. Total revenue, ^909.866. Popula- tion, 600,000. A registration fee is charged of 2s per ton or 6d per package Nearly all the exports and imports are with the United Kingdom. NEWFOUNDLAND.— The Customs return for the year 1893 shows a high rate of duty. The Tariff Laws No. 2 of 1887, No. i of 1 888,' No. 2 of 1889 and No. 2 of 1890. The imports from the U. K. and the Colonies were ;^ 1,2 10,000 and from foreign countries ;^367,40o. Dutiable articles to the value of ;^7 20,000 were im- ported, paying ^338,045 duty. In these Customs Acts there is again a special feature and one to bear in mind in connection with the present subject. It is this clause : The following additional duties shall be imposed on goods, etc., hereinafter mentioned imported from countries, the fishermen of which have the privilege of taking fish on all parts of the coast of w M .'. 112 Newfoundland and its dependencies, and in which countries duties are or shall be imi)osed upon fish and the produce of the fisheries exported from the Colony and its dependencies to such countries : Flour the brl. Pork IJutter loo lbs. Tobacco " Kerosene per gal. Cornmeal the brl. ^0.3.0 Hay the ton ^i.o.o 0.3.0 Oats the bu. 0.0.5 0.30 Potatoes *' o.i.o 1. 0.0 Cabbage per doz. 0.1.8 0.0.2/ Vegetables 0.0.3 0.1.3 Here we have a selection of articles on which additional duties are imposed, and the " selection " discriminates against certain of the countries which Newfoundland considers do not reciprocate the ad- vantages they enjoy in her territorial waters, but without naming them. NEW SOUTH WALES —The Tariff Act of 1895 came into force ist January, 1896, and abolished all import duties exce|)t on spirits, wine, beer and tobacco, which remained as before. Even before this time N, S. W. had admitted all articles similar to those of exportation duty free, and under this policy received large cjuanti- ties of goods of use or export from neighbouring countries. NEW ZEALAND presents a well drawn Schedule under the Customs and Excise Acts of 1888 and 1891. The duties are be- coming protective. The imports were valued at ^6,943,056. The Customs receipts were ^r,65s, 503, out of a total of ^'4,653,038. Population 744,- 528. Two-thirds of the imports were from the U. K, the remaining trade being chiefly with Australia. The custom form over one-third of the revenue, which fact would make the adoption of free trade within the Empire a matter of financial difficulty for this and some of the other Colonies. QUEENSLAND, under Act No. 14, assented to Oct. 4, 1892, has a fairly long list of articles on which specific duties are charged, a second moderate one on exempted goods, chiefly materials suited for fabrication within the Colony. There are also a third and a fourth schedule of goods charged with ad valorem duties of 5% and 15%. Articles not mentioned in these four schedules are admitted at 25%. Customs revenue p{^ 1,035,638. Total revenue ^3,343,069. Population 346,874. SOUTH AUSTRALIA Tariff Act 45 of 1887, gives us five schedules— Specific duties, 25% ad valorem, 20%, 15% and free. 113 m Customs revenue/' 331,298. Total revenue ^68 1,246, Pop- ulation 65,064. VICTORIA, as shown hy the Tariff corrected to 1893, has a long list of specific duties. A good plan is adopted of numbering the definite articles and their ecjuivalents. There are 301 articles items numbered, with duties ranging up to 40% ad valorem, for the purpose of protecting home manufacturers, who are said to employ about 40,000 men. Customs revenue ;^i,7i6,788. Total revenue ^6,719,623. Population 1,274,022. TASMANIA. The Customs Duty Act for 1894 has a distinct policy of its ^,vn. Manufactured goods imported are taxed 20 per cent., on food products produced within the Colony, there is a pro- tective duty, other food products, raw materials and manufactured goods not produced in the Colony are free. The former Act of 1890 levied a 121^ per cent, duty, where the present Act levies 20. Customs Revenue ;!^285,456. Total Revenue ^704,641. Population 154,664. THE UNITED STATES RECIPROCITY CLAUSE. In the United States the following clauses are what are so often heard of as '* The Reciprocity Clauses." The Act is designated " An Act to provide revenue for the Government and to encourage the industries of the United States." Section 4. That whenever the President of the United States by and with the advice and consent of the Senate, with a view to secure reciprocal trade with foreign countries, shall, within the period of two years from and after the passage of this Act, enter into com- mercial treaty or treaties with any other country or countries concern- ing the admission into any such country or countries of the goods, wares, and merchandise of the United States and their use and disposition therein, deemed to be for the interests of the United States, and in such treaty or treaties, in consideration of the advan- tages accuring to the United States therefrom, shall provide for the reduction during a specified period, not exceeding five years, of the duties imposed by this Act, to the extent of not more than twenty per centum thereof, upon such goods, wares, or merchandise as may be designated therein of the country or countries with v^hich such treaty or treaties shall be made as in this section provided lor ; or shall provide for the transfer during such period from the dutiable list of this Act to the free list thereof such goods, wares and merchant disc, being the natural products of such foreign country or countries It' I* ' V ' li * 111 114 and not of the United States ; or shall |)rovide for the retention up- on the free list of this Act during a specified period, not exceeding five years, of such goods, wares and merchandise now included in said free list as may be designated therein ; and when any such treaty shall have been duly ratified by the Senate and approved by Congress, and public proclamation made accordingly, then and there- after the duties which shall be collected by the United States upon any of the designated goods, wares and merchandise from the foreign country with which such treaty has been made shall, during the period provided for, be the duties specified and provided for in such treaty, and none other. Section 5. That whenever any country, dependency or Colony snail pay or bestow, directly or indirectly, any bounty or grant upon the exportation of any article or merchandise from such country, dependency or Colony, and such article or merchandise is dutiable under the provisions of this Act, then upon the importation of any such article or merchandise into the United States, whether the same shall be imported directly from the country of production or other- wise, and whether such article or merchandise is imported in the same condition as when exported from the country of production or has been changed in condition by remanufacture or otherwise, there shall be levied and paid, in all such cases, in addition to the duties otherwise imposed by this Act, an additional duty equal to the net amount of such bounty or grant, however the same be paid or be- stowed. The net amount of all such bounties or grants shall be from time to time ascertained, determined, and declared by the Secretary of the Treasury, who shall make all needful regulations for the identification of such articles and merchandise and for the as- sessment and collection of such additional duties. The following statistics are necessary to form an estimate, and to measure the effect of a Customs Union on the Home and Coloni- al trade : The total import trade of the United Kingdom was lately reck- oned at somewhat over ;^4oo,ooo,ooo, of which ;!£"3 2 0,000,000 worth was received from foreign parts, and ;^8o,ooo,ooo worth from the Colonies. The proportion being 85 per cent, foreign and 15 per cent from Colonies. The total trade between the U. K. and Australasia is given as follows : . Total trade to and from Australasia , .... ^S 2,045,290 Percentage to trade of U. K. with other British pos- sessions 29. 1 Percentage to trade with Foreign Countries 7.3 115 Total trade of U. K. with Canada J^ 23,09^,986 S- Africa ^ 14,058,112 I"dia 59.560,393 United States 1 49.560,391 ^>ance 66,856,480 (lermany 55,368,552 lielgium 29,827,272 The Imports into Australia from other British Ports were last stated to be 28,568,7 10 And trom Foreign Parts 6,004^ 1 5 1 The Imports into Canada from other British Ports 9io38,'ooo And from Foreign Parts 15,125,000 The population of the Empire is reckoned as follows : United Kingdom 38,000,000 India, Burmah, etc 290,000,000 Other Eastern Possessions 4,000,000 Australia 4,200,000 Canada 5,500,000 Other American Possessions 2,000,000 South African Possessions 4,000,000 Total 347,700,000 The pojjulation of the world is reckoned at 1,900,000,000, Looking at the variations in the above tariffs we cannot but remember what a " casus belli " each one has been, how the Parlia- mentary conflicts of a Cobden and a Peel have been re-fought by a Macdonald in Canada and a Parkes in Australia. What we look for now is some common ground for agreement within the Empire and the contemplated Federation of the Australian Colonies is a great step in advance to that end. All Inter-Australian Colonial Tariffs are to end in two years, except that Western Australia is allowed five years. Five-sixths of the imports into the Colonial Markets are from British sources and ]i from foreign parts, with the exception of Canada, where they are about equally divided. The large volume of foreign trade which Great Britain transacts with -every portion of the globe, makes her interest of paramount im- portance, and leaves her with no commercial reason for placing any restriction on her trade with foreign nations, except in return for some advantage that will counterbalance in an equal degree any dis- advantage, such, for instance, as some contribution to the Imperial Defence. Her desire has been for unrestricted trade, or general reciprocity with the 1,900,000,000 inhabitants of the world. iir> I^-AuI^T IX. — :o:- Federation by Representation. ' In the multitude of counsellors there is s&{s. LORD ABERDEEN said, in the opening address at the Ot- tawa Conference, that the purpose of the Conference was " for de- veloping and increasing the trade within the Empire, and to con- sider the means which could be taken to carry out such an extension." These two propositions of * what we have to do,' and ' how we should do it * are naturally always connected and yet exact very distinct consideration. To determine on the means that should be taken, re(|uires that the procedure to be adopted should be settled upon, and we con- stantly find expressed in the thoughts of one speaker and another that this coming plan, whatever it may be, should be of much more extended and continuing use than for the temporary purpose of effecting the commercial programme in hand. We often find run- ning through what is being said this idea, namely, of 'the permanent unity,' and of • the maintenance of the Empire." The wish is older than the tower of Babel, as old as the human mind itself, a desire for the permanency of the work that is to be accomplished. This thought of the future becomes the vital part of Ihe structure around which is woven the varying expressions of many a public speaker on British Union. It is on account of the desire among our leaders to be sure of their ground that causes deliberation, the desire to find that ' there is safety ' in the next step to be taken that makes men cautious while seeking for some permanent bond of cohesion and formulating a plan of united action for acting in common. As to what it is that embodies within itself the genius of co- hesion in our nation, which is separated by Local Government but ■.■J:-'i!iff 117 joined by constitutional rule, we can find many examples in tlif history of the Anglo Haxon race at the dilTerent periods of union in (Ireat liritain ; we can find it also in dermany, in Austria, in Hwit/erland and in the Netherlands, and in the extended union of the Hanseatic League, and the modern example of the United States. It is the union of the i cople by their represcntalives, it is the united exercise of our constitutional powers. A union of rci)resentativ«.s is the one recourse that has always been adopted in forming a closer union, and it is the course that has been tried, trusted and proved. There is no other lasting union known in the political world except the union of representatives. * Popular representation ' is an incantation to conjure with in politics. The past history of England will bear an important part in guiding the future organization of the Empire. The same spirit that founded the Saxon Heptarchy, and the union of England and Scot- land, and Great Britan and Ireland, is yet the ruling influence in our people at home and over the seas. It is hereditary in our race, a living factor now in this very commercial controversy. At the time of the discussion in Australia on the separation of Victoria in 1845 as tending to begin the disintegration of thf^ Empire, Lord Sherbroke, then editing " The Atlas " newspaper in Sydney, elicited in a series of articles a policy for the permanent union of the Empire of which the foundation principles were : 1. Local self-government. 2. Representation of the Colonies in the Imperial Parliament. Sir F. Napier Broom, Governor of one of the West India Islands, in a letter to the Times, wrote, "If the mother country can offer the Colonies a place in parliament with its share of the executive power, that will be Imperial Federation and may attract them." Abraham Lincoln recognized this political fact when he closed hostile feeling by issuing writs for the return of the members of the Southern States to Congress. The loss of the British vote may be more of a factor than many might think to an intending emigrant, and our policy at the present time is to encourage emigration. We certainly have history and authority in support of this proposition. 118 Lord Beaconsfield once remarked as one of the causes that would tend to and had caused separation, the want of Colonial representation in the Imperial Parliament. It was a matter which, at some future time, he said, " would have to be rectified if the Empire was to keep together." He also stated that the Colonial policy of Great Britain should be, " To develop and consolidate our Colonial Empire, that we should stimulate not only their interests but their sympathies, ' and that thus treated ' they would prove a source of strength and splendor to the Empire." The leaders in Nova Scotia at the time of Canadian Federation wished to have representation in the Imperial Parliament. In South Africa the feehng is vciv strongly in favor of this, especially in Natal. The Hon. Simon Eraser from Victoria said, after the Ottawa Conference, " that as for Imperial Federation they were ripe for it." The Hon. A. J. Thynne of Queensland,, at the Toronto Board of Trade banquet to the Ottawa delegates, is on record as saymg that he was firmly convinced, " that the welfare of all colonists would be promoted by the establishment of a central parliament to which they could elect representatives." New Zealand and Tasmania echoed the same thought through their representatives. Sir Oliver Mowat, then Premier of Ontario, said, at that ban- quet, " All they have said I entirely agree with, and it has given Canadians great joy to hear the sentiments expressed by them." On the same occasion the expression by Hon. W. Laurier that "he looked forward to the time when delegates from all the Colonies might assemble at London in a received with marked approval. federated British Parliament " was It has been asked as Lord Melbourne would say "why not let this matter stand for the present ?" but on looking back over this small volume the reader will find many matters of much moment that never materialized. The leading purposes of the Inter-Colonial Con- ferences have been fully accomplished, these were so well expressed by Mr. Chamberlain when he said, " insensibly the bonds between us are strengthening, your claims, your wishes, the resources of your separate countries are becoming as familiar to us as if we were all provinces in r)ne great Kingdom." In regard, however, to the claims and wishes expressed by resolution at the Conferences, it would be 119 difficult to find one that has already been carried into effect. We are not yet enjoying the fruit of all the thought, time and expense of these consultations. The tree of knowledge nurtured by them is still in leaf and flower at the Colonial Office. It is for the purpose of effectuating what is proposed., of institut- ing the necessary executive machinery that representation of the Colonies in the Imperial Parliament is required, as it is there that we find the centre of Imperial faction. Take for instance the quest'on of the trade within the Empire. A policy for a preferential trade was brought forward but not taken up at the Conference of 1887. In 1892 the resolution passed by the Congress of that year was to emphasize the danger of any departure from free trade and against an amendment for a preferential duty in favour of Colonial produce. At the Ottawa Conference the Colonies were divided 5 to 3 in favour of a Preferential Policy, while at the Congress of 1896 the Toronto resolution on the same lines and the amendments were withdrawn and a substituted motion passed for the future consideration of the question. What the voice of the Colonial electorate would be on this policy is still an open question. The other matters relating to Commerce, cables, and legislation on matters of common interest are in the same position. We however, in addition to those matters requiring adjustment, anticipate difler- ent times than these in the future, when it may be that the blasts of war will drive over the sea, or commercial stress break men's hopes. It is to avoid such times we are preparing, or if they come we shall require to be in a position for prompt action, and the united support of a nation. It must be recognized that the Ministry in London is much more dependent in its action on the previously expressed will of the electorate than is a Colonial Ministry in introducing new measures. It would seem to be irreconcilable with any former precedent for the Colonial Office to take the initiative in submitting any such change m the fiscal policy to the House. The constitutional course would be for the Colonial Office to be placed in a position to act, by the wish of any Colony being ex- pressed through its own House of Parliament, after a majority of the constituencies had expressed themselves in favor of the policy proposed. It is this that we should now seek to lead up to. The present legislative practice is to consider questions legislation by a committee, and extending this well recognized method on the same lines of action in continuity of the present of ^^iVB^H 120 practice to meet an enlarged sphere cf operations^ we should have these Inter-Imperial questions submitted to an Inter-Parliamentary Committee. ! i This would be a constitutional movement in the direction we are trying to go. The various Parliaments would come in touch with one another through this joint Committee and by their united action they could construct a definite plan. Such a Committee could best evolve the policy approved by the Colonial Governments and the British Ministry could intimate how far they could "neet their wishes in regard to Inter-Imperial trade and other matters that any of the Colonies might advocate. The formation of such an Inter-Imperial committee either ap- pointed or chosen by the various Parliaments and confirmed by a Royal Commission would meet the essential requirements of modern changes. It would be a safe step to take ; it 'vould be experimental ; it would be non-comittal, and a tentative move in the initial work and would at the same time be both preparing and proving the scheme for British union. The recjuest for such a joint Parliamentary committee and sug- gestions for the proposals to be considered by it, could form a portion of the work of any future Conference to be called as asked for by the Congress of i8g6. FRENCH COLONIAL REPRESENTATION. The chief Colonies of France are represented at Paris, and this certainly seems to be a bond of strength in their Republic. French Colonial representatives are in all respects on an equal footing with their metropolitan confreres as regards election, eligibility to office and voting power on all questions relating to revenue, taxation and expenditure. The French Colonies do not contribute to the cost of national defence. Cochin China is probably the only French Colony in a position to pay a subsidy to the Imperial Exchequer. A French citizen residing in a French Colony is not only eligible for a commission in the National army, but is called upon to serve his country exactly as he would be if iesident in France. He is also eligible to appointments in the civil service. " L'Organisation des Colonies Francaises," by Edouard Petit (Berger, Levrault & Cie of Paris editors) gives full details on the above matters. 121 The following list shows 7 Senators and 16 Depuiies in the French Parliament representing her Colonies : Algeria returns 3 Senators and 6 Deputies Martinique I (( 2 Guadeloupe I (i 2 Reunion T <( 2 French India I u I Cochin China I French Ciuiana I Senagal I The French Colonies have a right to impose import duties sub- ject to the approval of the " Conseil d'Etat." The fact that Colonial representation is in effect in Paris should dispose of the plea in abeyance to this proposition sometimes put forward that Colonial representation is impracticable. As these members at the Palais Bourbon and the Luxembourg are on an equal footing with their confreres it makes it seem an unnecessary suggestion that M.P's. from the Colonies at Westminster should be under certain limitations. It was a^ter the union with Ireland that Pitt, Castlereagh and Wellesiey became the young British lions that defended the shores of England from the power of Napoleon. The coming policy should be the settlement, '' development and consolidation " of the large areas now acquired and surely w^are more fitted for carrying out an active Colonization policy than Colonial pioneers themselves, and the interests and sympathies of the British people will be best stimulated by taking a part in it all, and having a share, a promoter's share, in building up the " strength and splendour of the Empire." The only alternative that has been proposed is a Colonial Council, but the suggestion seems inadmisssable in many ways. There is no precedent in English history for such an irresponsible body, and it is difficult to believe that the British Parliament would ever organize an outside council of advice to itself or to the Crown. It would also look as if a Colonial Council was an unnecessary addition to the Privy Council and the two Houses of Parliament. It would be a council of uncertainty, and giauitous and inopportune advice from any body without powoi to carry out its own opinions, or responsible for their result to the Crown or an electorate, would embarass a government and must be a source of weakness and a council of confusion. We should certainly eliminate all foreseen possibility of internal dissension. Two such bodies for advice to the Crown as a parliament and a Colonial Council constitute such a I • * i rw ;< , 'I' 122 foreseen possibility (see pages 7,^, 77, 79 and 80.) The creation of a council in London with executive powers which was not elected by the people, and not subject to dismissal by the Crown would be an anomaly in Great Britain. We believe the construction of a council is a danger to be avoided, and in contrast we have presented as a preliminary and straightforward step for the consideration of mem- bers of Boards of Trade, The British Empire League and otiiers interested in these n:atters, the very simple and constitutional l)roposal for the formation of the comrrittee suggested on the previous page. There is, as Lord Jersey has said at Ottawa, in regard to the question as a whole, " an impatience for action." Progress has generally to be made in the line of least resistance, and the welcome given by the English people to the suggestion of the Canadian Premier at Liverpool in June, 1897, would seem to intimate the way and an opf^n door whenever we knock. Sir WILFRID LAURIER said, " A picture which has long been familiar wherever the English language is spoken, or wherever English literature is appreciated, is the one drawn of the traveller from New Zealand taking his seat upon a broken arch of London Bridge or in the ruins of St. Paul's. But so far as our experience is concerned those melancholy forebodings have not been realized. The traveller from New Zealand we have here to-day. He is here among us not to gaze upon a spectacle of desolation but to be a witness himself, in his own person, of the development of British power, and the time may come when a New Zealander may stand at the door of Westminister Palace asking for admission into that his toric Hall. (Loud and continuous cheers.) 123 EXTRACTS FROM THE SPEECH OF THE CANADIAN PREMIER, The Rt Hon. Sir WiHrid Laurier, G. C. M. G., AT QUEBEC, On his return from England, August, J 897, after the Jubilee Celebration. Sir Wilfrid said, " lei tne say something regarding the jubilee procession. Throughout it was a wonderful sight, and T think the most impressive portion of it was the service at St. Paul's. I think it was at once an index to the English character and a credit to the English nation that the consummating ceremony of that day should have been the public thanksgiving to Almighty God for the prosper- ity of the Empire. It was truly a great spectacle to see Queen Victoria, the dignitaries of State, the representatives of the army and navy and the great men of the nation all there under the canopy of heaven, in the face of that grand cathedral, offering their thanks to the Creator for His mercies. The naval review was a spectacle of an altogether different character, and yet it was also most impressive to see all the strength of the greatest navy in the world displayed, from the biggest man-of-war to the tiniest torpedo boat. It was a sight never to be forgotten, and made one feel that if there is any one thing more than another that exhibits the strength of the British Empire it is a marine display with all the sea forces exhibited in this manner. " (Canada is now beginning an entirely new career, not only in England but in Europe. The denunciation of the German and Bel- gian treaties at the request of Canada has created a prefound impres- sion all over Europe. Without exaggeration I can say that Canada is thus recognized as among the nations. The feeling in England is very friendly towards Canada, and if my anticipations are not deceiv- ed we shall see a great flow of capital and population to Canada in the next few years." " I have every reason to believe that the Canadian Atlantic fast steamship service is absolutely assured, and that it will be in operation before two years from now. 124 " The French i)cople have always been very friendly in their disposition toward Canadians, and they are now still more so ; but I am sorry to say that C-anada is not as well known to Frenchmen as it ought to be, and perhaps I may cherish the hope that my visit to France may have dispelled a few of the false impressions which may have existed prior to that time." " Every country has a history. Wc also have a histo/y. The volume of our history is not as campact as theirs, but page for page it is as well filled, and, further, if these countries have a history, if they have the past, we have the future, and it is towards the future that my soul, that all my faculties, are directed, and it was always with my eyes fixed on the future, it was always with my eyes fixed on Canada, that each time that I opened my mouth in England or in France, I sought, I found my inspiration. I am not of those who believe that Providence united us here, men of every race, to con- tinue the fights of our fathers ; I am one of those who believe it is necessary to be inspired by the past m order to find there the source of national unity. I have the pride of my origin, I have proclaimed it a hundred times ; 1 have the pride of my civic status as a British citizen, and particularly I have the pride of the aspirations which I entertain for the future of Canada, our common country. I have defended its cause as best I could. I have pleaded its cause with the Imperial authorities. T assuredly do not attribute to myself the victory, but I say that victory crowned our efforts. We did not have commercial liberty as complete as we ought to have it ; there were treaties which spoiled our efforts, treaties which prevented us from making the arrangements and treaties of commerce which we wished ; there was the treaty with Cermany and the treaty with Belgium, the denunciation of which we asked for years and years. These treaties were useful to England, and England hesitated to denounce them, because in denouncing them, in doing away with them, England made a sacrifice of its commercial interests. Well, gentlemen, at our request, at our insistence, England consented to make that sacrifice. It ga"e up its own interests to preserve those of Canada. We must march onward, now that we have this complete commercial liberty. I come back here to my country with a programme that is not new, but a programme which I am bound to afifirm once more. The only programme which we have now is to develop the prosperity of this country. Whatever may be the struggle, and whatever may be the ground on which politicians can make war upon the present Govern- ment, as for us, we have only one struggle to make, and^we have only one ground on which to fight ; we want one thing and one thmg only : that is to develop the resources of this country, to mak'^ its prosperity more complete than it is at present. - - 125 " There was, gentlemen, one question which agitated for a lone time pubhc opinion in this country. That was the question of the rapid hne. You have heard it spoken of for a long time. Promises were not wanting, but nothing was done. Well, I believe that I can say, I believe that I can assure you, that at the present hour the rapid line is a certainty. I believe I can tell you that within two years there will come from England vessels of a speed equal to that of any other fleet whatever now on the ocean. I believe I can tell you that within two years we shall have here ships which in comfort and in beauty will be the equals, if not the superiors, of everything/ which floats to-day on any sea in the world. I have reason to be- lieve that, though Mr. Petersen, with whom we contracted, met with considerable obstacles, yet at the present time the success of his enterprise is not the least in doubt. I have this certainty, and I give It, gentlemen, to the electors for what it is worth, and I believe that you will see that my words are not belied by facts. (Applause.) Gentlemen, that is not all; we have in the northwest, on the slopes of British Columbia, mining lands, considerable gold mines which will attract the emigration of the whole world. The eyes of Europe to-day are turned perhaps for the first lime on Canada." t— ,» BRITAIN AND PEOPLE. AN INITIATORY AND HISTORICAL WORK ON THE SUBJECT OF BRITISH UNION, BY J. Van Sommer, jr., ILLUSTRATED WITH ENGRAVINGS, Showing Views in Canada, ^!> ^i^Australia and The Cape, -AND MAPS OF THE ATLANTIC, and CANADA as the connecting: Commercial Highway between Europe and Asia. PUBLISHED BY WILLIAM BRIGGS, 39 Richmond Street, W., TORONTO. PRICE, 50 CENTS.