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Laa diagrammas suivants illuatrant la mathoda. 1 2 3 1 2 3 4 5 6 MtaOCOfY RCSOIUTION TIST CHAtT (ANSI ond ISO TEST CHART No 2) •d APPLIED IIVV1GE In, 165 J Eoat Moir Sire. 4^^- THE INDUSTRIAL FUTURE OF CANADA B. E. WALKER ■Q cr\ r r f " V^sl lA THE INDUSTRIAL FUTURE OF CANADA Ai)DRi:ss iiv B, E. Walker, at the I IDtii Anmal J.'AN^UET op The Chamkkk *>p Cummrkck of ihk State op New York, IIIth Novkmhek, liios. As aCanatiian, gratt'ful for what I Irariictl (hirin;.; several years spent in \e\v York in the serviee of the Hank i>f wliieli I am now tlie President, I thank tl.i' Clian;l)tr of Co^miieree of the Statu of New York, amf)n^ tlie nienif)ers of whuli I recognize many old friends, for the graceful eomplinient they are paying to Canada, and I am also deeply sensible (if the very great honour conferred upon myself in being asked to speak for my country on this occasion. Just about one hundred years ago you had a population of seven million people. To-day in Canaila we have a ] Ji>ula- tion of seven million peoj)le. and yet the first settlements in Nova Scotia and (Juebec were made practically at the same time as the first settlements in M.issachusetts. New York and Virginia. It is true that nature, except perhajis in New England, presented a much sterner front of opposition to the settler in Canada than in this country, and it is also true that the British races cf)ming to Anterica were bent on securing immeiliate results from trade and agriculture while the Frencli Hvrc liriailiinn nl v:i>t ilnl.iTV altll(nit;li .Umn liltlr lo scilirc or til jiiiipl, it ; liui ilif chief iVMM.ii iiir llu rxtninpliiiary ililliriimi ]M till- poimlatiun of tlic twn inunlncs ilocs not lie mainly In tlu'si' fads, vital as tluy w.ti'. The .linct result was that when French Cana.la passcl into tiic possession of the Hritisli tlure uer, ahout lurty Hritisli colonists in Xorth America to m,, I niicli ci.Ioiiisi, ami altniist all the British colonists were in that part which eventually he-ame the L'niteil States. Tie i'tiport iiit lait, however, was Mie forming of one nation oin of Mie thirteen eolonies, the first great act of fi lera 'nn l-i the newer parts of the worM. The thirteen separate.l inms w'lh their rivalries, even animos- ities, miKht have reliellcl successfully aKainst (Ireat Urituin but they would have Kiven ,, very ilim'rent account of them- selves had it not been for the great act of federation. In twenty years by the l.onisinna purchase you had .stretched to the I'.iciHc, this anil aiiotlier event in Canada ending all hope of French ICmpire in America, and by the middle of the last century you had secured the entire area out of which the present forty-six States have Iiccn created. Vour new nation had for its leaders in public ojiinion some of the greatest states- men Ame-ica has ever produced, and in that generation when the cry of the French Revolution for liberty and eciuality was ringing throngh many countries you openeil the doors of a great section of the Temperate Zone to the distressed peoples of Europe. I. nmi, 'ration may have seemed slow to the new republic at first, jut b,- l&iO there had set in that extraordinary tide of humanity moving steadily in ever-increasing numbers to the United States which, however you may now value it, is not likely to .stop. Turning to iny own country, eighty yeais after you had cnmmcncf.l yiinrixporiment tlicn' wiTr (uf si-paralr stniR- giiiiK ciilnnies cast of Lake SupiTiur, t'ach a conii'tctc ficvcrn- ment in itself. The only attempt at union had iiren made hy U pi r and Lower Canada, liut this had not Ijcen successful. There were on thi f'acilic coa.st two eoloniis, mere remote and somewhat forlorn outposls of the Hritisli Empire and not in '.ouili 'vith the eastern .-oliinies. Between, that is from Like Superior to the coast, lay wliat has been called the Creat l.one Land, those mighty stretclies of prairie and mountain wdiich arc now attracting the notice of the world, but which were at this time held absolutely beyimil the control of the settled Provinces by the Hudson Bay Company. And if the political difTiculiies in the way oi union were great the geographical ditKculties seemed greater. These were the days when you were anxiously examining the reports of the engineers, surveyors and naturalists wlio hn ! searched your plains and mountains for a route for your first transcontinental railroad. How were we to imagine a con- nection between Upper Canada and the prairies tlirough whf.t we then thought was a hopeless wilderness of rock north of Lake Superior, and how cross, beyond the ,irairies. that Province which in derision had been described as ,i sea of mountains? But the whole land from the .Atlantic to the I>acilic was British, and we did not even then lack' men with vision who dreamed of a British nation to be made out of what had been sa, d in North America. As early as 17Sn that intrepid opponent of the Huil- jn Bay Company, Alexander .Mackenzie, had made his canoe journey from Montreal to Lake Athabaska. and from there down to Arctic waters and back up the great river \vhich bears his n.-me, and in 17»;J, after travels in the Peacu River country, he l,a,l n'm- .,n ov.t thr n»,untains nn.l 'lown the rivrrs nf HritisI ('..Inmliia unlil, r.acliinK tin- watiTS nf the I>,-iri(K' hi' |.aim.'.| .,„ a r.n k that, to iis, immortal si'iitcnoi': ".M.xan.liT Mackc-iizir l,.mi Cana^la l,y land, tlio twi-nty-sfc„n.l of July, orir tliousan.l MV.'ti luin.lrcl and ninety three." When in his retirement Sir .\lexan<l<r Mackenzie wrote his hook, he tol.l En^lap.! t., ImiM a tra.le route throuwh British .\orth .\merica to the I'aeule an.l to take eare nf her trade on the North I'aeihc, otherwise Russia and tlu^ United States would own the whole coast. And there were not wanting' many others, (;reat citizen! suchas Josei.h Howe, who told his sceptical fellow-countrymen in Nova Scotia in the fifties that some of them would hear the whistle of the locomotive in the Kooky Mountains, and would go to the Kioific from Halifax in five or six days and would som day trade with China and Japan ; or travellers like Professor Hind, who also in the .ifties presented to eastern eyes the vision of a great city on the Red River where Winnipeg now stands, and who jaw in imagination the white cloud of the locomotive as he looked down from the hills upon the beautiful valley of the Qu'Appelle. There must naturally have been those, also, who thought the racial difficulties quite as great as the political and geographical difficulties. Could we make a Bntish nation with so large an admixture of people of French origin? The Canadians of British descent, many of whom have since learned the French history of their own country from your Parkman, did not know how passionately the Canr.dian of French descent loves Canada, how proud he is of its wonder- fully romantic past, ur how thoroughly his thoughtful leaders have recognized that, being cut ofT forever from France, with which he is now scarcely even in harmony, he confides abso- lutcly in hisriKhts ui„Irr th, li -iIiHti irown lur tliat lull ni.asur.- of tivil iin.l reliKidus lil,. rty iin.ssary i,, I, is pri-s.'tit happinoss and his future pn.sp, rity Uliin «.■ ioiisi.l.rcd the <,th.T Canadians wo fouiil ,!„■ lliKlilan.lcr in Neva Sc.tia. in UppiT C.-.tiada and in isi.lattd 5p.,ts in tlii' fur-trading wvst, diuKint; as liu ,],„■. still in Cap,. Br.inn an.l „n thr St. i-awn-nif in Ontarici t<, I la.lic spcfi-ii and his Hi^hlani' . <i„nis. until we sa> that wi- ar< iii.,ri- llijjhland in sunir p;. ••. , Can- ada than in l!ic hills ..i S.mland. and the oilier Canadian Sco' 'inien who were everywhere and who , ven ,i,nv in Oniariu need not lose the hreadth of aee. nt for want of a fellow Stot to crack a joke with; an.l the Hnjilish Canadians also everywhere, particularly in far liritish Columbia and Vancouver Island ; in,l the Irish ami Welsh in lesser nuniliers, and some of Gc lan an.l other descent but all strongly British in sentin ..,; and foremost of all the United Empire Loyalists, t'le ilescen.iants of the men who jjave up everything for their King and, leaving your land, s.iught homes in the unbroken forests of Upper Car an.l Xova Scotia, .Now that their praises have been sunj .,y an American historian I need not hesitate to mention them with honour merely because they .lifltered from the other greatdieaned colonists who also took their lives in their han.ls for what they .leemed the best cause. We hail no dark-skinned people or subject races, except the few Indians whom we understoo.l ami wh.ise claims we have always respected. After all, this was not l.a.l material out of which to buil.l a nation, and whatever the future might have in store for thein, it was a vain imagination to think that they could ever be anything but British. We had watched you keenly and surely often with an envious eye, recognizing the enormous value of your federation, but concluding i that in some details we, if we could do it at all, would do it differently. And so the Fathers met and the plan for the federation of Canada inside the British Empire came about in I8G7. We concluded to give certain more or less deHnite but restricted powers to the Provinces, placing the residuum of power in the federal government, and thus reversing your system. In this way Banking, to which I shall refer, is controlled entirely by the Dominion Government . The British North American Provinces then existing, except Newfound- land, all came into the Confederation within a few years, and in 1870, but not until then, we at last secured the great prairies of the west from the Hudson Bay Company. Under the agreement made when British Columbia came into Confederation we were to build a trans-continent. d railway connecting the Atlantic with the PaciHc, and some of you know the trials and tribulations we experienced before the great enterprise was finished in 1880. Xeariy twenty years had elapsed after the Act of Confederation before we were ready to ask tlie foreigner to come and spy out the land of the West an<i, if it seemed good, to stay. Settlement was slow at first, but the sons of Ontario farmers and many from the Maritime Provinces began to take up the land, and tales of its wonderful fertility began to receive a tardy acceptance from a critical worid. Some of us ventured to say before 1890 that the first great movement of the land seeker into that coun- try would take place in the United States. It seemed that they alone would understand as quickly as our Eastern Canadians the value of the country (and as it now turns out they understand it much better); that at the moment when the pressure of eighty or ninety millions of people caused the price of farm lands to go beyond the possibilities of ownership for the men without capital, and the American farmer, used to owning his land, must in many cases be only a tenant or a renter, they, the American people of the West, would begin to go into our country. All the forces of nature were on our side, but nature takes her own time. Nature, however, was greatly aided by the high intelligence and great energy of the Hon. Mr. Sifton, one of your gue.sts to-night, who as Minister of the Interior put the facts before your Western people in several campaigns of advertising. The movement lias now begun and into the extensive areas represented by our unoc- cupied lands this great colonizing force will co.ninue to press its way as long as any cheap lands are left. The movement from Great Britain and from European and Asiatic countries is also fully under way, and we liave aIre:Ldy in a small ilegree some of the immigration problems which trouble you. If those here to-night are to understand the responsi- bilities which fall upon the population already in tlie country by the coming of the iimnigrants we must multiply the number of our people by twelve or thirteen in order to make a comparison with your nation of eighty or ninety millions. If we do this we tin.l that our immigration of over 250,000 in the fiscal year 1907-8 is c(|ual in your case to an immi /ration of about .3,000,000 in one year. No proportionate responsibility, therefore, has e\er fallen upon the United States, especially if we consider the exacting demands of the modern immigrant as compared with the land seeker of thirty or forty years ago wlio trekked with a prairie schooner hundreds of miles into the unknown and did not expect much in the way of immediate comfort. The greatest difficulty in all new settlements is of course trans- portation and we are building railroads at the rate of a thousand or more miles per annum, equal, relatively to popu- lation, to twelve or thirteen thousand miles per annum in the United States, but hardly sufficient for our needs, when con- sidered in respect to the great areas being put under settle- ment. In the last ten years our railroad mileage has increased from 1 n.584 in 189,S to 22.4.52 in 1907, All railroad building in the U est ,s being done by three great compa.iies, and in a few years we shall doubtless have three completely equipped transcontinental railroad systems, truly a remarkable aceom- phshment for seven or eight million people. Next to tran,sportation, adequate banking is one of the most im- portant requisites. The number of bank branches in Canada is 1,900. m comparison with about G40 ten years ago, Multiplie.l by twelve this would mean •» gOO banks in the United States, and the fact that we are so abund- antly supplied should check somewhat the silly statement frequently made in the Western States, to the effect that small communities are better serve.! by individual and local banks than by the branches of large banks having their head ofKces m the monetary centres. The growth in railroads and banking wdl suggest without further <letail how great has been the strain of providing new towns, new schools, churches, teach- ers, doctors, lawyers, trading people of all classes, the early stages of manufacturing and all the other accessories of civil- ization. The history of the settlement of your great West shows in a large way what we are doing in a smaller degree. Statistics are wearying things, especially after dinner and in any event there is not time enough at my disposal in which to enter upon the various phases of industrialism which have lately shown surprising growth in Canada ansing largely out of this Western settlement, I can' however, indicate this growth in a few words by the figures' of our foreign trade. In 1899 our imports were S149,346 000 our exports .S1.50.:!2I,000 and our total foreign trade $299.-' 667,000, In 1908 our imports were .5341,931.000. our exports $273,002,000 and our total foreign trade 8614,993,000, a Browth of over 100 per cent, in ten years. For the first five years of the period in ,,uestion our exports moderately exceed- ed our imports. For the last five our imports largely exeee.l our exports. You will understand better than some Euro- peans that we eannot build railroads an,l in a general way put a new country in a condition fit lor settlement without mortgaging the future. And this may be a good time to say a few words without offence, I hope, regarding the relations of the United States to our foreign trade and also to the foreign buying of our securities by which the difference between our imports and our exports must be met. In the last ten years we have bought from Great Britain to the extent of $099,047,000, from the United States Sl,4;iO,S,J2 000 and from other countries 8271,4.30,000, in all $2,:m:.m 000 In the same time we have sold to Great Britain to the extent of $1,174„3S5,000, to the United States $747,290,000 and to other countries .$22.i,o4.5,00U, in all .?2,14,S,22U,000. It use.l to be thought that while nations settle their accounts with bills of exchange and other forms of money, in reality they only exchange goods with each other; and also that if one nation bought from another very largely in excess of its power to pay m goods it must look to the nation it was buying from so largely to buy the securities which must be sold to pay the bal- ance. But apparently we have changed all that Great Britain takes our products far beyond our purchases from her, and buys our securities as well. You sell us 60 per cent of our imports, but buy only li, per cent, of our exports and rarely buy our securities. It is true that we are improving our purchases from England, and that you are improving vour pur- chases from us and even occasionally taking an interest in our secunt.es, but I invite your deepest, most broad-minded and wisest consideration of these most striking figures and I ask you whether you think it is likely that trading relations so one-sided can continue forever. Beyond a peradventure if you do not open your doors a little more liberally to us, so that we can more nearly pay you in fnoris instead of always drawing on London for the purchase price of what she has bought from us in order to pay you, you will leave us no alternative but to keep up our tarifi walls until we can create at home almost every manufactured thing you sell us on the one hand, while on the other we seek trade preferably with any nation which takes pay in goods so as to lessen our payment of actual money to you. Believe me, my dear friends, I am bold enough to say these things because some one should say them and because you of all bodies in the United States are the one to which they should be said. I have already spoken quite too long and I shall trespass further on your patience only for a few minutes. I was particularly requested to say something regarding our banking system, but I have so recently spoken to the American Bankers Associatii-i regarding yours that I hesitate to refer to the subject again, further than to add to my remarks at Denver regarding what Alexander Hamilton had tried to do in banking for the United States, the fact that when you threw his system overboard we picked it up and based our Prst charters largely on the charter of the first United States Bank; and that we ha^■e clung to this, building it up to suit our purposes, until we have a system which, whether suitable for other countries or not, admirably serves our purposes both as to the individual and as to the nation as a whole. The dilTerence between the two countries stated in the smallest compass is that instead of about 17,000 individual banks we have 30 banks with 1900 branches, and these banks being few in number, and each large in capital and importance, they arc. tru.stcl i„ manaRe their own reserves, to issue cre.iit notes to hoW the deposits of the Government-one l^einj; seleeter! as the chief banker for all important Government business- and to open branches even in foreiKn countries, thus .levelop- mg not only a local but a jjreat international force in the finances and trade of the country. And now let me set out in a few words some of the reasons why we have faith in the future of Canada. We have a eountry about the same size as the United States proper that ,s without any of its outside possessions. It used to be thouglit that for all practical purposes much of it was too fns.d to be worth anythmg. just as thirtv vears ago it used to be thouglit. even at Washington, that one-third of the United States was too arid or too bad othenvise for settle- ment. Xeither the one statement nor the other is true What is true is that the world is being startled by cereals grown further an-l further north, which actually seem to impnn-e in quality the further north you go. The prairie provinces as yet produce only about 200 million bushek of cereals, an<I I am not going to be so foolish as to estimate what they will yield in the future, but clearly the quantity will eventually be enormous. Once we should have said that our timber was irexhaustible but now we know that that is true of no country in the world. But this much can be said that, if we are willinK to learn the lessons in forestry now being taught in our Universities and in our forestry journals and by the experience of our lumbermen, there is no reason why we should not have most extensive forested areas from which great national wealth can be drawn for all time. We own more fishing waters than any other nation, although too many of our fnends wish to fish in them. We have iron, nickel, copper and coal enough to rank with the greatest nations in this respect and while we are only about the eighth nation in gold, we begin to look important in silver with the Cobalt camp turning out about $1,000,1)00 a month. The intensive farming in Ontario has resulted in our becoming one of the great dairy countries and our importance in breeding horses, cattle and other domestic animals is well known. In manufacturing, whde our figures are trifling compared with vours. we are making great strides, partly as the result of the naturally enlarged markets in Canada, but also because we are beginning to seek a share, in some branches of manufactures, in those markets which are open to the world's competition. No one can at present estimate the extent in horse power or the value in money of our water powers, which probably in these respects exceed those of any other nation in the world. We have a land most of which receives at least the average rainfall, with a summer climate almost everywhere which would please the most fastidious and a winter climate which to the native-bora at least is a thing of beauty and a joy forever We share with you the great lakes, and we have at least twelve or fifteen great river systems any of which should be remarkable among the river systems of the world, besides unnumbered smaller lakes and rivers. Finally we are a contented people with a f...e birth-rate, with hardly any illiteracy, loving law and order and insisting on it in every mining camp and on the rudest frontier line. We hope to build up a nation as free as any m the world, with our own peculiar institutions with a share of some kind in the British Empire, and with relations with your great country which should through the coming ages be of benefit to both nations materially, intellectually and ethically.