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Les diagrammes suivants illustrent la m6thode. 1 2 3 32X 1 2 3 4 5 6 n Mons^ of Commons Betiate$ FOURTH SESSION-SEVENTH PARLIAMENT SPEECH OF HON. WILFRED LAURIER, M.R ox THE BUDGET OTTAW\, THURSDAY, 12th APRIL, 1894 Mr. LAU&IBR. Mr. Rv 'a^sr, I do not rise OD this occasion with tht hope nor even with the intention of affording anything new to the discussion which has talien place in this House for some two weeks past. My object Is simply to review the arguments which luire been offered from this side of the House against the policy of the Government, and in :his respect, perhaps I might rest content with the effort of an hon. gentleman who does not belong to the Opposition (Mr. Mc- Carthy), who, in what I consider oiio of the most remarkable speeches ever delivered in Parliament since I have been here, has ex- posed what Is, perhaps, the fullest, the most detailed and the most comprehensive arraign- ment of the policy which has been piursued by the (Jovemment for the last fifteen years. With regard to the debaite so far as it has gone up to the present moment, I may be al- lowed to remark, that to the extent that it has been participated in by members and supporters of tlie (Government, It has been charaoterlstio that one and all have expressed their unbounded satisfaction with the proposed amendments to the tariff. It may not be uncharitable to suppose, and perhaps to say, that, If there had been no amendments what- ever, the satisfaction of the supporters of the Government would have been just the same, because all their arguments — we have all heard them--were In support of the tariff as It existed and as if It had not been amended at all. At all events, there is this satisfac- tion *, and to the members of Her Majesty's loyal Opposition it is a satisfaction which might be termed pride: that at last, after many efforts and many assaults, the Government have been forced to capitulate, forced to come down from their position of hide-bound protection, forced to yield to the determined protests and remonstrances of a long- outraged people. Whether the amend- ments proposed to the tai-iff, whether the concessions offered by the Grovernment, are sufficient or insufficient to meet the just ex- pectations of the people, is the question which at present Is the Issue before this House and before the country. Whether the measujre of relief offered by the Government, If Indeed I may use such a dignified expression as " measure of relief "—Is adequate or not ade- quate. Is a question which may be held to de- pend very largely upon the views entertained by those who offered it as to the necessity of any reform at all ; and, judged by that rule, it must be found upon examination that the measure presented by the Government is stamped with the atamp of inadequacy and Insufficiency. Why, Sir, it is within the recollection of evei-y one here, that tlie wholj of the speech of my friend the Finance Minister, wherein he introduced his amend- ments to the tariff, was in favour of the proposition that there was no necessity, and no need for any reform at all. He told us that the formation of the tailff was perfect in itself, that this country was enjoying an unbounded measure of prosperity, and that tfhis was all duo to the principle under- lying the tariff, that is to say, the principle of protection. For three hours, at least, the hon. gentleman piled up facts upon facts with the object of making us believe that the country is prosperous ; for three hours, at least, he wrestled, desperately wrestled, with facts and logic, with the same end In view. Why, Sir, you heard the hon. gentleman driven to the expedient of giving it as an evidence of prosperity, that dmring the last fifteen years which the country has been under a pi'otective regime, the finances of the country balancea year after year by surpluses which now aggregate t)ie enormous sum of $20,000,000. This fact, which I do not hesitate to say to the hon. gentleman. Is nothing short of a disgrace and a shame for the Administration, was treated by him as a boast. I assert that such a condition of things Is a shame and a disgrace to any Gov- ernment. In England the aim and the pur- pose of the Chancellor of the Exchequer is so to calculate the expense and the expendi- ture as to make them balance evenly, and the reputation of the Chancellor of the Ex- clhequer would be lost for ever if, year after year, his calculations were found to be wrong. If, Instead of having just the rev- enue which is wanted to meet the expendl- tm*e, it was found that there was such a dis- crepancy in his calculations as exists In Can- ada, the reputation of the Chancellor of the Exchequer would; I repeat, be lost for ever, unless he were able to show that the discrep- ancy arose from a sudden disturbance In the condition of business. What Is the truth about these surpluses ? Twenty millions of dollars, says the Finance Minister. The truth is, that these surpluses represent $20,000,000 of unjust taxation, which have been wrung by the Government from the consumers of he country ; twenty millions of dollars which would have been left in the pockets of the people for the piu*pose of their own business, for instance, to be applied to the redemption of the mortgages with which the country has been plastered during that term of years. What Is the truth about these surpluses ? If it is an evidence of prosperity that we should have surpluses, why. In the name of common sense, is the hon. gentleman to-day proposing a reduction of duty, which places him, as he says himself, in the face of a deficit ? The truth Is, that if the hon. gentleman is now re- ducing the duty, it is because the people have seen the true inwardness of these surpluses ; it is because the people are in earnest ,; it is because they are determine<l to be relieved of a system of taxation which Indeed produces surpluses in the pockets of the Government. Init which takes millions of money out of their own pockets. But, Sir, even while my hon. friend was indulging In these loud boastings, which constituted— and I say it without offence — the main part of his speecli ; even at the moment while he was exhibiting for the admiring gaze of his friends tliese glowing pictures of prosperity, it was evident that his vision was haunted by a pursuing shadow. Even at the moment wliile he was making use of liis exti'avagant language in en- ' comiums of the National Policy, the thought must have struck him, that It was, after all, a singular thing that one million of Canadians had deserted this land of plenty. The thought must have struck him, because he paused In his laudatory refrain to notice that fact. He tried to explain it away anyhow or some- how, and the explanation whicli he gives, I commend to both friend and foe ; I commend it, not on accotmt of Its novelty, because there was no novelty in it. We have often heard it before ; we have heard It since. The expla- nation was that If, after all, one million of Canadians have ileserted this land of plenty, this prosperous country of om-s, it was not because their native land, wliich God had made fertile, bad been made barren for them by a vicious policy ; it was because the Grits were decrying the country. But, Mr- Speaker, I submit that If the Grits have been decrying the country for the -last fif- teen years, the Tories have not been mute dogs by any means. They were extolling the Naitional Policy to the skies. And yet, in spite of all their assertions, the people rather believed the Grits, who were decry- ing the country, than the Tories, who were proclaiming the country to be prosperous. If I notice an argument of this kind, it is not for the pm-pose of giving any answer to it. It is simply to notice the great com- pliment paid by my hon. friend to the policy of the Liberal party. If my hon. friend and his friends beside him are sincere, if they believe that the country was as pros- perous as they say it was, and if they be- lieve at the same time, that, prosperous as the country was, the people believed the Grits who said it was not prosperous, what a tribute that is to the hold that the Liberal party have upon the people of this country. Why, Sir, I do not wonder that the hon. gentlemen opposite trembled in their boots ast the Idea of the fate that would come to them if only we could meet them at the polls on fair terms, free from the gags of the Geri'ymander Act, and the gags of the Franchise Act, with the people in such a position as to be able to give their opinions at the polls as they have them in their minds and hearts. Let me come to the speech of my hon. friend, after this digression. There was but one logical conclusion to that speech ; it was to maintain in its en- tirety the National Policy, which had i • ^ k. r done 80 much, as ray hou. friend claimed, to pi'omote the prosperity of the country. And yet, strange to say, after having ex- tolled for three lioiu's the National Policy and the principle of protection, my hon. friend concluded by announcing that the Government had determined to lay sacri- legious hands upon that sacred ark; though. It Is true, my hon. friend proceeded at once to give an excuse for such a sacrilege. The excu.so was that since 1878 the conditions of trade had somewhat changed, and it was to meet tlie new conditions now exist- ing that the amendments were offered. But, Sir, I am within the judgment of every man in this House when I assert that in not a single instance, so far as any par- ticular item was concerned, did he say any- thing which would support his contention that the change was necessitated by the altei-ed conditions of. trade. No, Sir ; that is not the true spirit whicli has moved my hon. friend in making these changes. It w^as not because he was convinced that the conditions of trade had changed ; but, as the fear of the Lord is the beginning of wisdom, the fear of the people may be the beginning of some wisdom on the pai't of my hon. friend. It was simply because he had the fear of the people before his eyes that he determined to do something to alleviate their discontent. But, Sir, my hon. friend was between fear and fear— fear of the peojjle on the one side, and fear of the monopolists on the other side. Tossed to and fro by those two conflicting inflnences, thrown on one side and then on the other — on one side to reduce the tariff, and on the other side to maintain and even in- crease it — between those two conflicting in- fluences my hon. friend was not able to come to a decision to propose a substantial measure. He simply proposes a mei-e per- functory measm-e, in which there Is not enough to disturb, but not enough ^to afllord to the people the measure of relief which they had reason to expect at the hands of the Government. But, Sir, I suppose it will be said by hon. gentlemen on the other side, what else are we to expect from the Opposition ? We could not expect that they would be satisfied ; and they are naturally playing their own role in expressing their dissatisfaction. I will presume, for the mo- ment, Mr. Speaker,— though, perhaps I shall not be pardoned for taking such a liberty— to speak not as a member of the Opposition, but I will endeavom" to place myself in the position of those who, in 1878, were of opinion that a change was necessary, and that i)rotection should be ^ven a trial. Placing myself in that position, I say that if there were, in 1878, reasons for trying the system of protection, there are now overwhelming reasons why the policy then adopted should be abolished— not changed or altered, more or less partially, but abol- ished in toto, and the principle thereof wholly rooted out of the tariff. My hon. friend, in the course of his speech, stated i that the conditions of trade had changed ; since a878 ; but, so far as 1 remember, he specified no such conditions in his comments I on the alterations. But I will point out an I alteration which has taken place since 1878 ^ in the trade and production of the country j —an alter.itlon of the gi'eatest consequence, I which, in my judgment at least, is nothing I short of an absolute revolution in the history I of political economy. I refer to the enor- I mous decline which 1ms taken place In the \ price of wheat, and In the price of all cereals i and agricultural products, since 1878. In 1878, and for some time afterwards, the price of wheat was about ii!1.20 a bushel. Of course, there were fluctuations and variations, the price being sometimes above and sometimes beJow that flgiu*e, but never ! very far from it. What is the price of wheat to-day ? About 55 cents a bushel. There have been jumps up and down, but from year to year the price has shown a steady decline until It has reached that low figuie. Nor is it certain that it has yet touched bottom, though there may be reason to suppose that for some years to come the present value will remain the standard value. Now, before I proceed any fm-ther I must remind the hon. gentlemen on the other side that one of their objects in adopting the protective system in 1878 was to Increase the price •f wheat, and the price of cereals generally. It was con- tended at that time that the cultivation of wheat was not profitable, even at the price which then ruled ; and it was their boast that by the adoption of protection the price would be increased to the producers. It Is true, Mr. Speaker, that hon. gentlemen opposite have chosen to forget that page of history ; but, if they forget it, it only proves that, apart from their other falliu*es, they are afllicted also with a very deficient mem- ory ; and you will find a deficiency of mem- ory, even in quarters where you might least expect it. There is my hon. friend from West Assiniboia (Mr. Davin) whose bril- liant gifts we all admire. It is sad to re- flect that those eminent gifts of his are marred by an absolute want of memory. The hon. gentleman looks at me with aston- ishment. I was no less astonished when I read the other day in the Montreal ' Star,' an interview with him, in the com-se of which he makes use of the following language :— In that year we never did what Sir Richard Cart- wriglit on Friday night accused us of doing — say that by duties we could raise the price of wheat in a depressed market. Wliy, it is true that In 1878 my hon. friend from Western Assiniboia (Mr. Davln) was not a member of this House, but he was then, as he is to-day, a distinguished mem- ber of his party. He defended its caUse with pen and tongue ; he defended it in the press and on the hustings. He was even a candl- i date, though an unfortunate one, in 1878. 1 The position the hon. gentleman then took he has since forgotten. He nas forgotten the arguments which, I will not say Le made use of, but which certainly he must have heard In the mouths of his friends. Has he forgotten that at that time it was pre- dicted—probably by himself-thait if we had a protective system, the land would he dot- ted with tall chimneys, there would be labour for the sons and daughters of Canada, and not only that, but for the large Immigration which would pour into our land from abroad ? And t' .t the increase of labour would bo mand un lnci*efl8ed production of food, and that the price of wheat would be incroaaed axjcordingly. If my hon. friend has forgotten these arguments, I must conclude that, as it is natural to man to readily believe what he desires, it may be natural for him also to forget what is unpleasant. AVhy, Sir, I had the curiosity some few days ago to look over the debates which took place at that time, and I found a speech delivered then by a gentleman who represented one of the Hurons (Mr. Farrow), who repeated the story told year after year in 1876, 1877 and 1878, that the price of wheat would be in- creased by protection and dimlnislied by free trade. And this sentence I found in one of his speeches : The following figures would sliow the relative prines obtained under protection and fiee trade. From 1849 to 1S61 — !i free inide period compara- tively — the farmer obtained .§1.20 per bushel for his wheat ; from !S()2 to 1874, a period under pro- tection, he got an average of .§1.37 Jter bushel. "H "Hiat was given as an evidence that if we had protection, the price of wheat would be increased. Well, shortly after the adoption of the National Policy, the price of wheat jaiaped from $1.20 to $1.40 per bushel. In those days Mr. Rufus Stephenson repre- sented the county of Kent, but has been taken since to his reward— and in saying that, do not imagine that I say he has been taken to another world. On the contrary, he has re- ceived the reward which very often awaits a good supporter of th.. Government. He has been provided with a good berth iu the Civil SeiTlce. But Mr. Stephenson, finding that the price of wheat liad Jumped from $1.20 to $1.40, gave that as an evidence that tlie National Policy had increased the price. And in one famous speech which he delivered in the province of Ontario, looking back to what he had predicted and at the exlsnini; facts, he imagined that he had been more u prophet than he intended, more of a political economist than he supposed ; and in a mo- ment of exultant triumph, he exclaimed : I am going to vote for the Govwnment which has brought up the price of wheat' to $1.40. Now, If Mr. Stephenson had not been taken to his re,«vard, if he were still a member of this House, with a parity of knowledge he would have to say : I am going to vote a^inst the Government which has lowered llie price of wheat to 55 cents. I doubt very iDuoh that he wotild do so. Perhaps, like the hon. member for As.siniboia (Mr. Davin), ; he would rather take refugo against his fonner record In the vacuum of his memory. ' But what is the cause of thia decline la the price of wheat ? In the days of old, when I Imperial Pome had a population of four mil- lion souls, when it held sway over tlie whole : then known unlvense, when It was not only I the political, but the commercial centre of ' the world, It drew Its food supply from the t lands washed by the basin of the Minllter- I ranean, from Spain, Egypt, Sicily and even that part of Africa now known as Timisia and Algeria— lands which have long ago ceased to be wheat-growing countries. In the present day, England Is the great com- mercial centre of the world, and llk(^ Rome she cannot produce wheat enough for her own consumption. She has to import It from abroad, and for many years, apart from what she got from her own territory, what she wanted was obtained from tlie continent of North America. But of late years, with the facilities of transportation, to these for- mer sources of supply have been added others— chiefly the vast plains of southern Russia, the numerous valleys of India, and even the valley of the Plata River in South America. Now, having so many sources to draw from, It is not perhaps surprising that wheat should have reached in England a lower price than at any period Imown to history. And at last we have the acknow- ledgment— we had it even yesterday from the hon. member for Centre Toronto (Mr. Cockbum)— that the price of wheat In Can- ada is regulated by the demand in England. How often have I heard that proposition contested in the days of old by the advocates of the National Policy ? How often have I heard it stated that the Government would not be flies on the wheel, but would by their policy, increase the price of wheat to the consumers. Now, at last they are forced to acknoy^ledge that all their pretensions were pretensions only, that it Is not in their power to increase the price of wheat, that the price is regulated by the demand in the English market. What is true of wheat is also tnie of all other agricultural products, with the exception, perhaps, of cheese and butter. What is the conclusion we must arrive at ? It la this, that to-day the price of wheat and other cereals h;is been decreased to tlie far- mer almost one-half, and that his profit has been decreased to one-half what it was in 1878. Such being the case with regard to tlie position of the farmer, his income being diminished by more than one-half, how is it with what he has to buy ? Hon. gentlemen opposite are strong i'l denial, but they will not longer deny, that the primary object of protection was to increase the price of commodities— to increase the profits to the manufacturers on the articles tlie farmer has to buy. It is true that the farmer was pro- mised that he would be recouped, even if he had to pay a little more for his commodities, by the Increased price of wheat. But such has not been the case, the tariff has not in- <i .^k « t i ■ '*-••.'-■ •r,-,, ^ f?^ iT.'T^'^'^'' " t i oroasGtl the price of wheat and other cereals, because Canada produces a surplus of agi"i- cultural prodttcts, and the price Is regulated by the Eaf^llsh market. Xot so, however, with manufactured goods. Though I admit that the price of manufactured goods, even la tills country, must be the price in England, still to this muBt always be added the cost of trauspoi'tatlon, which Is imavoidable, and the amount of duty which Is avoidable. Mr. FOSTER. All avoidable ? ^Iv. LAURIER. Yes, when it is ralsml, as you gentlemen are raising it, not for revenue, but simply to favour special Interests. &£r. FOSTER. Then It is not all avoidable. Mr. LAURIER. But a protection tariff is avoidable. Cf course there Is a limit, and that Is the neot^ssity of the revenue. That, however, is not the limit set by the hon. gentleman. But we are told also that the prices of manx^factured goods are being decreased. I have no hesitation in ad- mitting that the prices of manufactured jioods have decreased ; but, even ?_ the lines in which they have most decreased, the cost of transportation and the amount of the duty cause them to be, as I have stated, from 30 to 40 per cent more than the price of these goods In England. Now, Sir, If the tariff had operated the same all round; if it had affected the prices of agi-lcultural products and manufacturing products alike; If It had either increased or decreased the prices of both, the position of the farmer would be better than it Is. But, It Is not so, as I have ah'eady said. The produce of the farmer has been driven to the lowest point, but what he has to buy Is sold to him at an Increased price as compared with the price In England. What Is the lesson to be deduced from this state of things. It is this: (and this Is the proposition we rely upon on this side of the House) as the price of agricultural products has been reduced to the lowest point, it should be the aim of the tariff to reduce the prices of manu- factured goods also to the lowest point. The farmer is bound by his circumstances to sell In the freest and cheapest market; so also ought he to be privileged to buy In the cheapest market consistent only with the Imposition of such duties as are neces- sary for raising the revenue of the country. That Is the proposition on which we stand, and it Is a proposition perfectly fair, per- fectly just, perfectly equitable— so fair, so just, so reasonable and so equitable, that the Government dare not attack It openly. And yet they cannot adopt it. Why? Be- cause they are chained and yoked to a sys- tem which is the reverse of just and fair and equitable. Why, Sir, I will take the policy of my hon. friend the Minister of Finance as set forth by himself. He. said there were three methods of raising revenue: _^Oue is to have simple fi-c<; trade, iiiuler whicli you have no oustoms imposts at ail. the revenue iieeeHS.iiy foi [tlie ct>uiitry lieing raLseil by direct taxntiiiii. We had supi)osed up to the time the hon. gentleman spoke that this was the English system. We supposed this upon the author- ity of Sir Robert Peel. Richard Oolxlen. Bright and Gladstone. But, my hon. friend says, all these authorities are in error, that they have not free trade In England— that they have what he calls a revenue tariSf. I shall not discuss that with my hon. friend. I shall accept the opinion of the English people that they have free ti'ade. But, whatever system they have In England, whether It Is free trade or revenue tariff, my hon. friend and the Government will have none of It. And why? They give us reasons. One of their reasons Is that Eng- land Is going down all the time under such a system. The hon. Minister of Marine and Finance gave his reasons. I hope his opin- ions are not shared by all the gentlemen on the other side, but. If they agree with him, I do not wonder that they say we should not imitate the example of England. He gave his reasons In plain language. He toM. us that the British nation under free trade Is no longer able to compete with the civil- ized nations of Europe, but that she is driven to spend raillions upon her army and her navy in order to force her trade upon un- willing savages in the uncivilized countries of the world. Some hon. MEMBERS. Oh, oh. Mr. LAURIER. Yes ; here is the language used by the hon. gentleman : Driven from the eivilizod markets of tlie world, steadily and every year finding tlieir output to those markets decreasing, tlicy spend millions on their navy, and millions on tlieir army, to force then- wares, and tlieir goods, and tlieir merchandise, into the uncivilized markets of tlie world. Sir, I never yet heard the fair name of the great nation so slandered and insulted. At least I never heard the name of England so insulted by a man of English blood. The charge was not new to me; I had read it in the pages of continental pamphleteers; but I am stu'e we were not prepared to hear it from the mouth of a man of English blood. And such a man! A Conservatiye; a Tory; a member of the Imperial Federation League; a member of the Canadian Privy Council; an aspirant, perhaps, to the British Privy Council; a K.C.M.G.. and a preacher of loy- alty in season and out of season ! And is this really the estimate of hon. gentlemen on the othar side, is this really what they believe to be the commercial condition of England? Po they really believe, as stated by the hon. Mlruster, that England is no longer able to hold her own with the civilized nations of the earth? Do they believe that the soldiers and the sailors of England, whose banners bear the proud inscriptions of Malplaquet and Ramilles, Aboukh* and Tra- falgar, the Noldiers who once met the steel of the mo8t fainuuin troops of the v/orld, under the greatest general of modern times, perhaps the Toatoat general of all times, are now employed in forcing upon helploss l)ar- barlaus the wares and products of Sbeflield and Mnnctiuster. It is a slander. There was a time indeLHl when England, then having a higli tariff, found closoil against her trade, by the power of Napoleon, the hai'bours of France, Spain, Italy, Belgium, Holland, and even of a part of Germany. These harbours she opened by the strength Of her arms. And the hon. gentleman would tell us now tliat the great nation whose motto in the modern world seems to have been borrowed from that of the ancient Romans— "Debellare suporbos" — nmst retire before the competition of other nations and use her army and her navy to force an undosirod trade upon helpless savages and inferior races. I say that to- day England is armed to fight the liostile tariffs of Europe. She has a weapon more potent by far than tlie weapons of her most valiant warriors. That weapon Is the prin- ciple of freedom of trade, which enables her to manufacture at a cheaper rate than any nation In the world, and to overcome all the diiSculties tliat are placed in her way. The hon. gentleman spoke of Prince Bis- marck and said that Bismarck, having the choice between the English system and the American system, chose the American sys- tem of protection. So he did, and a great service he rendered to his counti'y In doing •so ! Look at Germany to-day, torn by the factions of Socialism, which Is the direct outcome of protection. It Is true, I admit, that some industries In England have at times been injured by the hostility of foreign tarlflfe. But the Injury aimed at England redounded with ten-fold force upon the nations which inflicted it. You have spoken of Bismarck. Yes; we have greater Blsmarcks and smaller Blsraarcks in this world. Prince Bismarck wanted to create for Germany a national Industry, a special Industry, that of beet-root sugar. He com- menced to do what was done by gentlemen opposite— he placed an enormous customs duty on foreign sugar; and. not satisfied with that, he Induced the German Parlia- ment to vote considerable export boimtles upon German sugar. And thus, one day, the English market was flooded with Ger- man sugar, which was sold there at a price lower than the English refiners could pro- duce It for. There wa.s naturally some commotion among the English refiners. They went to see the Government and represented that It was impossible for them to compete with the German refiners, fed as these were by boimtles. If the Government In England had been composed of the school of hon. gentlemen opposite they would have said: What! German sugar coming to Eng- land! Englishmen are too patriotic to eat German sugar. England for the English- men! We will have none of It! But they said nothing of the kind. On the contrary. ' they said: Well, if the German Government is willing to tax the (Jerman people in order to supply the British people with sugar at a dumper rate than it can bo produced for Ijerc, we cannot see that it Is a very great injury to the English people. If the Ger- innns are foolisli enough to prefer such an arrangement, why should we complain? The refiners were not daunted. Tljey pur- chased all the German sugar that was in tho market, they converte<l it into Jam, into jelly and Into preserves, wlilch they sent back to the Germans at an increased profit; and it has been proved that there were nu)re people employed In England in pro- ducing jams, jelly and preserves than there had been in refining sugar. The hon. gen- tleman tells us that he wants neither a revenue tariff nor a free trade policy, but that he wants a protective tariff. Let me again quote his language : The other ami third luetliotl is tiie protective tiiri6F, l)y which yon select a certain list of articles and y)lace upon them certain rates of impost with a \ iew to raiding a certain amount of money for tiie services of the co\intry, but nmro especially with this view, that whilst you raise the amount of money that is necessary for the country, you sliall stimulate the <levelopment of the resources of tiie country, you shall nuike ito industrial life liroad and diversitieil, and progressive. Sir, this sounds very well, and as a mere assemblage of words It can hardly be ex- celled. If the object of the hon. gentleman Is to develop the Industries of the country by a policy which will give favour to no one and which will hinder no one, I am with him with all my heart, but that is not the policy of the hon. gentleman. He wants to develop the industries of the coun- try, but In what way? By Increasing the cost of commodities, by compelling tlie peo- ple to purchase at a higher price at home than they could obtain the same goods elsewhere. Well, I admit that with such a system he might develop special indus- tries, but I assert that he will stlfie the growth of the country. What has been the experience of oiu* north-west country? Surely no one will pretend that Manitoba and the North-west Territories have realized that amount of prosperity which was expect- ed for them at one time. It was expected that In the year 1894 Manitoba and the North-west Territories would have a popula- tion of 600,000 souls at least, and you know what a beggarly number were found there at the last census. More than that, you have developed the east at the expense of the west. Why Is It that the growth of that country has been stunted? It Is simply be- cause In order to favom: certain industries In the east you have prevented the people In that country from acquiring their goods at as cheap a rate as they could get them under a freer system of trade. But there Is another objection to the system of the hon. gentleman, and perhaps a more serious objection In a certain way. One of the most serious objections to the protective sys- tem followed by the hon. gentleman is this: that It Induces the investmont of capital in industries wliich are not congenial to the soil, whicli cannot stand by themselves, which have to be sripported at all times out of the taxes of the people. I can point out to the hon. gentleman a number of instances of that kind ; T will only take one or two. Take, for instance, the coal oil Industry. Coal oil is taxed in this ooim- 1 try 7Vi cents a gallon. Last year we im- 1 ported $430,000 worth, and we paid just as i much In duty as the value of the goods, that Is to say, we paid a duty of 100 per cent. ; Well, as a revenue tariff, this would be out- rageous; in fact, If the duty were decreased ! by one-half or two-thirds, we would have i more revenue than we have now on coal j oil. This Is not, therefore, a revenue tarifl". It has been Imposed altogether for protection, i and for nothing else. Even yet, though ; there is a duty of 100 per cent on that } article, that Is not all. Other obstacles j have been put In the way of the Importation i of coal oil, amounting to as much, perhaps, i as the present tariff. It is calculated upon | good authority, that the protection afforded to coal oil Is 200 per cent, at least. Well, Sir, It is a fact well kno^vn, that Canadian oil cannot be produced as cheaply as Am- erican oil. But what has been the effect of all this? Why, that by the protection which has been given against foreign oil, you have Induced the Investment in the oil regions of a million dollars In capital, and now It Is said that you cannot remove that protection because that capital will be wiped out. That may be true, but If It be true that Canadian coal oil cannot maintain itself against American competition without pro- tection, I say it Is all the more an. evidence of the pernicious effect of a protective sys- tem; the pernicious effect is this, that you cannot remdve the protection without, to some extent, endangering a large portion of the capital of the country. Well, I admit that is always a gi-ave Issue, and a thing which has to be carefully considered. I am clear upon one thing, and that is that such protection, such taxation as this. Is unjust; but, at the same time, I am also free to say that, though the tariff in this respect has to be reformed, it has to be reformed cautiously, so as to effect the minimum of injury, and, if possible, no injm'y at all. I would not be the man to say, much as I deprecate the protective system, much as I believe It to be injurious to the well-being of the country— I would not be the man to say that It should be wiped out at one fell swoop. Some hon. MEMBERS. Hear, hear. Mr. LAURIER. I am surprised at these exclamations. I say that protection should not be removed at one fell swoop ; but the difference between the hon. gentleman and myself Is that they are not prepared to re- move it even at a gradual swoop. I would have no fault to find with these amendments to the tariff so far as they go ; I would have no fault to Ilnd if the Government did not toll us that they are going to main- tain the principle of protection. If they were proposing gradually to remove -or abolish the principle of protection, I would be wltli tliem, but that Is not their policy. As the hon. member for West Assiniboia (Mr. Davln) knows very well, this is not a system of scientific protection, it is protection without any science In it at all. Vvhat I say about coal oil I also say about the Iron duty. How many years Is It now? Six or seven years, since the Iron duties were remodelled, remodelled to be Increased by 50, 60 and sometimes 100 per cent. Now, with what object ? With the object of develop- ing in this country the manufacture of pig iron and of bar Iron. No one has forgotten, I am sure, the great floiirlsh of trumpets with whloh those duties were heralded into the world; no one has forgotten, I am sure, the language of Sir John A. Macdonald and Sir Charles Tapper on that occasion. We know how Sir Charles Tupper rolled flgm'es off his tongue, but he never rolled them off as he did on that occasion. Why, we almost heard the roar of the smelting fui-naces, we almost smelt the smoke of the charcoal that was to be used In them. There were to be 200,000 men employed in that industry. Well, after six or seven years, what has been the result? The same company who received that amount of protection are again com- ing to the Government, and, like Oliver Twist, they are asking for more. It has only whetted their appetite. If you in- crease the tariff, as I hope it will not be In- creased, the consequence will be that in a few days, in a lew years, you will have more capital invested In this industry, and you will not be able to remove that protection, because they will come here and say: Don't touch us ; if you do, you will wipe away all the capital we invested in these industries. Now, I want to prevent these consequences to om-selves. I say that a system is false which can produce such results as these. But that is not all. There is something worse than all that in a protective tariff. We charge upon the protective tariff— and no one knows it better than the hon. the Minis- ter of Finance— that It Is base and degrading. Under such a system the Government de- liver themselves into the hands of masters who are stronger than they, and who hold them fast in submission ; and whenever the Government moke, some attempt at re- bellion, Immediately their masters take them by the throat and force them back into bond- age; and then when they have been forced back into bondage, covered with confusion and shame, they wotild have the people believe that their attempts at freedom were not genuine, not sin- 8 ^ core, but mere "clorlwil crroi-H." Cleri- cal «>rror. forHooth V I tell the hon. guntlcniiin that the country rn'os throiiKli the pbrnao. uiitl will not ucoept tiio bus*' ix- plnnntlon and tlie fri.'tleHs huinllintlon. Cleri- cal error I Wuh It a clerical cr^jr wlilrli lii- dncod tho hon. ^eutlcman Hume iVw tlays ago to reduce the duty on denuKTiitlc wajfous from !15 per cent to 2.') per cent V 'I'hat re- duction In tho duty waH pn>i)oHed in a iiii»- ment, not of weakneHS, but of fairness ; but Immediately he lienrd the eraek of the min- isterial whip over hfS head the riiiance Min- ister was forced Into the humiliating c(»ndl- tlon of condnjr hack and placiu); a«aln on the farmers' HhoiUders the duty which he Intended to remove. WaH It a clerical error also In regard to teu, I want to know, or what Is It ? The hon. jjentlenmn the other day brotJKht down his tariff respiK'ting tea in such a ndld and xmobtruslve manner that no one uotlcetl the departure from the old policy. For the last twenty years tea and co£Fee have been fi-ee, with the exception that when Imported from tho UnJtetl States they have been subject to a duty of 10 per cent, and from the manner In which the hon. gentleman made the announcement I, for my part, supnose<l he was re-enactlnj,' the old policy without any chanpe. ,But what are the facts ? As the tariff Is now constituted, It Is Intended to levy a tax uf 10 per cent on the tea and coffee which oom^s from Eu};land. For what object, 1 want to know ? According to the figures of last year's importations, such a duty col< lected on tea and coffee would yield a re- venue of over $140,000. Is that the object, or is it not ? We have been told by some of the ministerial organs that the object is not to levy a duty on tea coming from England, but that the object is simply to build up a trade with the east, to import om* tea direct from Ghlna and Japan. I want to know, I ask the Finance Minister, or any man in his senses, what object can we in th^s coun- try have In destroying an industi'y only to build up another, to prevent a man from bringing in tea from England and compel him to buy it in China or Japan. What ob- ject can we have In compelling our tea to be purchased in the east or rather the west. I very much suspect that there is a nigger in the fence, and that he will be discoveretl. The Finance Minister has taken some pride, and I do not blame him, for he has been showered with compliments, for having re- moved specific duties. I do not think, how- ever, he deserves all of them. I confess that the hon. gentleman has removed the most iniquitous duties, the infamous duties upon woollen and cotton goods ; but the hon. gentleman has still left in the tariff that iniquity called a specific duty. He has, moreover, introduced in the tariff some of specific duties, which he passed over very gently, but which I suspect will press with tb.e greatest weight on the consuming class. ITiere was a duty on syrup last year of 1% cents per gallon on the lower grade, which Is worth 10 centH a gnllon. this duty amount- 1 Ing to ahotit l'» i>er cent. N«)W the duty on Hyrup Is placed at Vj a cent \h;v pound, not per gallon. I want to know what Is the rtMiHOii that has induced the (Jovernmmt lo chaime till' specUlc duty from gallon to potuul V What is concealed underneath V In a gallon there are 14 pounds, and at % a ! cent per pound the duty will bo equal t«i ' 7 cents |)er gallon, and on syrup worth 10 cents per gallon this will be equivalent to a duty of 70 per cent, which the poon-r classes of tho consumers will have to pay. i So I say that though we are removing a good Ideal of the anomaly connected with the ; specific duties, yet there Is a great deal yet to be removed, and which I ho|)e will be re- moved before we have concluded the re- vision of this tariff. But I am aakeil per- haps, what is your own policy on all these matters, what Is the policy of the Liberal party ? The policy of the lilberal party Is not ft'c(? trado absolutely, as In England, I am sorry to say. This Is the Ideal, this Is the goal which we will reach some day. u long time perhaps, but towards which we are turning our eyes and are directed at the present time. Itut while we must for a giKul many years still continue to levy revenue by customs duties, I say even at this moment while levying duties fi-om customs. It Is pos- sible to do so upon the principle of free- dom of trade. I challenge, we challenge, as completely and absolutely false and vic- ious, the prlncii)le adopted by hon. gentle- men opposite, that duties should be levied, not for revenue, but simply to favour special Interests. Om- policy is to levy duties, not for special interests, but for the general good of the community. I say this, that under such a tariff even mantifactm*ers will have a better field than under the present .system. "\\'Tien manufacturers know tiiat duties are Imposed for revenue and are not therefore raised oh revenue at the caprice of tiie Gov- ernment, and are not liable to be removed from one day to another, they will have a sta- bility In business which they have not un- der the policy pm-sued to-day. Take, for example, the agricultural Implement manu- facturer. He has his protective duty ; he knows what it is. He knows what the cost of production will be, but a man comes to the Finance Minister and says : Mr. Fin- ance Minister, I want to establish a special industry, to develop a great trade, and 1 de- sire to have a duty on a certain article. We all know the ordinary phrases used. I will employ so many hands, give increased em- ployment, develop the resources of the coun- try. The result may be that the duty is increased, and 40, 50, or 100 industries are thereby placed in Jeopardy, When we have a tariff for revenue only there will be, as I have said, a security which does not exist at the present moment under the policy of the hon, gentlemen opposite, I desire to re- fer for a short time to the hon. member for West AsslniboUi (Mr, Davin), who the oiber day in his speech fired a shot at me, by i)MHi>rtlux Unit utice upon ii tinio aH a yoiuiK iniiu I hud iH'en a i)rote(!tl(>nlHt. Well, I niu iilwnyM uverMo to (lIsfUHHluK my owu persoutil oplnlous or my |)(>rMoiml iiffiilrH on thu Hour of riirllunu'iit, but I havo too much roHpcct for the word8 of tlie hon. nicmbi'r not to KlTo nil niiHWor to which ho In t'lititliHl ut uiy hitiuls. Let mo suy ut once th:it I iiin Bomcwhiit Hui'prlHed to hcu tlie hon. Kenlle- iniin iu hl8 prc'Bent position. Only a few numtliH uKo my hon. friend announced to thu world that be wnti entering Into a cini- Hude In favour of tariff reform, his objeet beluK to Hecuro sclentlllo protection. IIus he found it ? The hon. Kcntlcman did not tell us HO the other day, ho foimd protection, but uo science In chauging the tariff. The hon. Keutleman only shows after uU tliat a man may be great In learning In certain direc- tions, Imt his heart may fall him when he comes to curry out his projects. The hon. gentleman also shows that a man may be good at preaching and poor at practising. He Is the Teter the Hermit of the new crusade. Peter the Hermit aroused the whole of Western Europe against the east, and raised an army to accompany him to rescue the holy sopulchre. But he weakened before he reached the goal. After leaving the con- fines of Europe, when his army was In straightened circumstances, and suffering from famine, he lost his head, he grew faint at heart, and deserted the camp and sought a hiding-place. The crusaders followed him and brought him back to camp, and made him swear not to desert the cause he had preached. Shall we not bring the hon, gen- tleman back into camp and make him swear he will not again offend V I am afraid, how- ever, we shall have to perform the duty without him. The hon. gentleman has made the charge against me, that in my young days I was a protectionist, a charge as to which I have to offer neither denial, nor defence, nor justification. If it be a crime as you advance in life to think and reflect, and by thought and reflection to review the ideas of younger age, and to substitute for the Inexperienced views of youth the more calm and more deliberate opinions of mature a'j;e, I have to plead guilty of many crimes of that kind ; because apart fi'om political economy many are the subjects as to which I do not hold now the views which I held twenty-flve yea re ago ; and if I had to commence ray career anew, In the light of the experience which I have acquired many I hope are the mistakes I would avoid. I have to say to my hon. friend from West Asslnibola (Mr. Davin), that if In this respect he has beeJi more fortunate than I have been, I do not envy his good fortune at all, but I hold that I have not grown older in vain, and that I am wiser to-day than I was twenty-flve years ago. If I wanted to Justify myself there are the moat illustrious names of the world that would come to my lips : the name of Robert Peel, the name of Gladstone, and what more could I want. But, Sir, 1 do not stand upon this ground at all. I stand upon w L 2 the gnnmd of principle and the condition of tlie eoiuitry. What in It that Is wanto«l to-<lay 111 Canada to develop Oanada as she ought to l)t> develiiprd ? It h iiojiulaiion and nothing elHc. Then* liav(> Iteen a Herlen of letters published In the Ijoiuloti 'Times,' which perhaps members (»f this House have all H(H.'n, but ther(> Is u H(«ntenc(> to which I shall specially call their attention. Speaking of Canada It says : Hor u(iuiim)(<nt for intorniil dovcloptncnt U ox- culluiit, lint I thu greati'Mt wiiiit tthu liiut in luck rtf population. Population is our greatest lack ; what we want Is population. And, Sir. when I con- sider that once I was a protectlunlst In ray younger days, and when 1 coiislder that during a decade from 1871 to 18SI under n revenue tariff the incrwise of population In Canada was 1.3 per cent, and that during the decade from 1881 to 18))l undc'r u protective tariff, this increase of population fell down from 13 to per cent ; I also remember the fatuous words of Victor Hugo, when he said : The absurd man Is ho who never chang<?s ; and I leave it to gentlemen on the other sliie of the I f ouse to remain, protectionist In the fsice of these facts. Mr. DAVIN. My hon. friend has not met my charge. Mr. DEVLIN. Your charge is discharged. Mr. LAURn<]R. Mr, Speaker, the hon. gentleman also stated that in 1872 Mr. .DAVIN. Mr. Speaker, may I rise to onler ? Some hon. MEMBERS. Order. Mr. DAVTN. I am In perfect order. Tlio hon. gentleman professed to state a charge that I made against him. If he will permit me to say so— of course it was unintentional on his part—he has not stated ray charge, and I think it is in perfect order that I should say what the charge was, ITie charge was not that in the course of twenty years he changed his mind ; but that a few years after proclaiming himself a protectionist ami in favour of a number of other thlu'-^s, he went into Mr, Mackenzie's Government and was as silent as that desk. Mr. LANDERKIN. It would bi> a ble8.««ed thing if you could got into some place like that. Mr. LAURIER. Well, Sir, I am sorry to say that there Is not anything more to the charge as amended, than as it was preferred before. The hon. gentleman (Air. Davin) stated that in 1872, the Liberals of liower Canada while they were assembled in Mont- real laid down a platform and adopted as a basis of that platform the policy of protec- tion. I deny the charge in toto. I deny the charge wholly. I am sure my hon. friend has nrtt gone into the records. He must have it from the pickings of newspapers in Lower 10 Oanada, but be never found it amon^' the real faots. On ihe oonti'ai7, the Liberals of the district of Quebec bave always been in favour of free trade, and as far back as 1847 the Liberal Association, which at that time wns presided over by a gentleman who left an honoured name among us, Hon. B6n6 Garou, afterwards Lieutenant tJovei-- nor of Quebec, issued a manifesto in whlcii I read this : What tli^ firmnew and wifidom of tiie Liberal party liave accomplished wi.,h regard to these matters, as well as tlie adinissinn of the respon- sibility of the executive advisers, must he for all L'ljerals an indication of what they will be able to achieve through a more active organization and a more vigorous expression of public opinion in favour of these reforms now required by the pre- sent condition of affairs. And the third article of the maulfeeto was this: Free trade with all the world and the free navi- gation of the St. Lawrence. This manifesto was issued by the Liberals of Quebec, who were of the school of Mr. Lafontaine. I am free to admit that in the district of Montraal the ideas of Mr. Papl- neau prevailed, and there was a marked tendency In favour of protection, and In so far as I am concerned, I admit that I have been brought up in the school of Mr. Papl- neau, but time and again for twenty years at least I have declared in Lower Oanada that I was a disciple of Mr. Lafontalue. Why should I not hear the whole truth as to this. The hon. gentleman (Mr. Davln) ac- cuses me of having changed my views upon protection. He said a moment ago that 1 wi.>te protection in the newspaper 'Le De- f rieheur.' I never wr. ; a word about pro- tection In 'Le Defrioneur,' but I made :« speech once, I remember, in 1871 in the L - glslature of Quebec. That was the only speech which I ever made upon that ques- tion in which I brought up the views held by Mr. Paplneau and wLlch I had derived from him ; and I am surprised, I must say, that the loyaJ gentlemen who support the Government should reproach me for not now holding the views which I held then. Sir, it Is a well-known fact in Lower Canada, and to those who know anything of the history of Canada : that Mr. Paplneau. prior to the rebellion of 1837, laid down as his doctrine that we should buy nothing from England. And when I spoke in the Legis- lature of Quebec, coming flush with youth and victory, I stated that at that time there was as much reason to adhere to the policy of Mr. Paplneau as in the yt«ar 1837. But, Mr. Speaker, what did I find ? When I went to th: ff.cts I found that Mi-. Paplneau had not introduced that doctrine for any reason of political economy, but simply for political reasons to fight the British Oovernment and to force them to give us that protection for our liberties which we required, or else to force the country into independence. Shall I read the resolution moved at the famous meeting held on the 7th of May, 1837 ; a re- solution which was not moved by a French- man, but by an Englishman, Dr. Wilfred Nelson. It was as follows :— That the measure of Lord John Rur-iftcll, which takes away from the Asaembly all conti'4)l over tliis revenue, is a flagrant violation of all the rights granted to Lower Canada by the capitulation and the trt ! ty. That he Government which can adopt such violent measures and thus destroy right, by force and violence, is a contemptible Government un- worthy of respect and even of allegiance. That the people of Lower Canada will refrain as much as possible from the consumption of imported articles, and will make use of products manufac- tured in the country so as to deprive the Govern- ment of the revenue which it is its hope to obtain by collecting the duties imposed on foreign goods. Now, Sir, that was a political object as I said, and not an object of political economy, and now that we have obtained all the Uber- tles which we were striving for then, I leave it to gentlemen on the other side of the House to pursue the policy of buying nothing from England, a policy which to-day they are pursuing with a vengeance. Hlrher- to their policy has been, not to buy any- thing from England ; and their defence h is been : that they applied this policy only to such goods as we p'-oduced In this coun- try In order to force their production hei'e. But to-day they have gone a step further, and when they tax tea, it Is not for the purpose of promoting the growth of that article. This is the defence which I have to make on that point. Now, Sir, I have only this more to say : Speaking here in the maturity of my years and in the maturity of my convictions, formed, as I hope, by deep reflection and thought, I say this— and in sayhig it I am voicing the sentiments of all the Liberals in this coimtry— that what- ever may be our future relations with Eng- land—whether wo remain as we are to-day, or whether the bond between us becomes closer or looser— it shall always be our aim and pm-pose to cultivate and maintain and promote, not only the most friendly senti- ments, but also the most ample business re- lations with the great nation which, not- withstanding all that may be said by hon. gentlemen opposite to the contrary, is to-day by all odds the foremost commercial power that the world has ever seen.