FC 518 T3 C6 C.2 \dDED an open letter from MR. COLBY AND THE AMENDMENT MOVED BY I JOHN MACDONi^lLD -adjustment of the. (Dominion Tariff With the Division Thereon. SOMS^Lli^lBNTS OF C. H. MACKINTOSH, :r i. " C^IZEir," dTTAWA, ex- CANADA NATIONAL LIBRARY BIBLIOTHEQUE NATIONALE OPiEN LETTER FROM MR. C. C. COLBY, M.P. -♦«^«- Mr. 0. H. MACKINTOSH, Editor Ottawa Citizen : — My Dear Sir, — Bollovo mo, I appreciate your kind and complimen- tary letter, more particularly as I fully estimate the etioits your journal has put forth in advocacy of a National Fiscal Policy. The speech upon Tariff Revision, lately delivered by me, in the House of Commons, you are quite at liberty to use in any way you deem proper. Had I antici- pated the extensive publication you propose giving it, I should have arranged it with greater care. You will recollect, I entered the field of debate as a tardy gleaner, having little reason to expect that I would bo able to gather even a respectable sheaf. As the Tariff question must exercise a largo influence at the coming election, I think it important that there should be an accurate de- finition of respective party beliefs. No one of the Conservative party having dissented from ary exposition of its platform, and the Finance Minister and ihe Hon. Mr. Mills having manifested their assent, as, step, by step, I laid down what I understood to bo the Ministerial planks, the country may,jl think, accept my definition as substantially cor- rect. I endeavored to prove that the declaration of Hon. Mr. Mackenzie, •' that it a particular trade or industry were to be protected it could only be done at the expense of some other trade or industry " is historically, and in fact, untrue. The above declaration is the major premises of the Free Trade arguments, as applied in Canada. If it fails, the superstructure must fall. ^ ' I endeavored to show that the carefully stated announcement by tho Finance Minister, in his Budget speech, of the mode of taxation, in vindica- tion of which he and his associates are "prepared to fight to tho death" is, when analysed, 'I a pointed and emphatic declaration that even the mildest form of Incidental Protection is " legalised robbery." Neither the Finance Minister, tho Hon. Mr. Mills nor any other member of tho Governmont, although cliallongcd, prosumod to deny that the following dictum ot John Stuart Mill, is a true exposition of the mode of taxation for the adoption of which the Government is " prepared to fight to the death." Mr. Mill eays : — " Custom duties are, ca?^ens T^aniw.s, much loss objectionable than excise, but they must be laid only on things which either cannot, or at least, will not, be produced in the country itf elf, or else their production there must be prohibited (as in England is the case with tobacco) or subjected to an excise duty of an equivalent amount." I pointed out that there is nothing to prevent the adoption in Canada of this mode of raising revenue — if Ministers are retained in power and have the courage of their declared convictions — but that its adoj)tion would cause the immediate overthrow of nearly all the manufacturing industries. I endeavored to show that the vaunted Free-Trade jDolicy of England, is a novel and most ingenious form of Protection, and that it was so intended, and that it was given to English manufacturers at a time when (they having entire control of the home market) protective duties were nuga- tory, and when the removal of duties from raw material and breadstuffs afforded them the most efficient aid and protection that Parliament had power to give. I endeavored to prove, that the labored statistics of Mr. Charlton are utterly valueless as evidence, either of the actual condition of our own manufactures, or of the true results of a Protective Policy in the United States. I endeavored to show, that an attempt to build up King Wheat in Ontario on Free-Trade foundations would be as futile and disastrous as was a similar effect to build up King Cotton in the Southern States, and that the true interests of the farmers would not be served by breaking down their best market, diminishing the number of consumers and increasing the number of producers of farm products. I pointed to the serious loss occasioned by the inactivity of the Gov- ernment in 187^ in the matter of Petroleum duties, and the inconsis- tency and " legalised robbery" involved in their legislation of ISTT. I endeavored to show, that we strenghten the hands of our enemies and weaken the hands of our friends in the United States on the Recipro- city question, so long as we tolerate the existence of trade relations which have the effect — 1st. To diminish our trade with England ; 2nd. To diminish the ratio of exports to imports in our trade with the United States ; 3rd. To add 30 per cent, in three years to the value of our imports of manufactured goods from the United States, in the face of diminished exports and diminishing cost of goods. Huch is iho exhibit shown in tho Trade and Navi<^ation Koturns this year. AVith tliat exhibit in hand, ovoiy foe to Reciprocity living in tho United States will successfully urge that " this condition is better than lloci- procity, we have our own and half tho Canadian market, while tho C!ana- dian has only half his own, and no portion of our market. Wo have only to wait a little until Free-Trade principles take root there, and we will wholly occupy the Canadian market as well as our own." Lumbermen should make a note of this. I believe, sir, that Canada can thrive under fair reciprocity with the United States. It did thrive under that system for eleven years. I further believe, that Canada can thrive under such a National Policy as would give our own markets to our own workers. Wo had experience of that from 1862 to 1872 — during the period when Americans were so occupied in supplying their homo demand that wo had possession of our own markets — an abnormal condition, equivalent in its practical effect upon us, to a high" protective tariff. I believe also, that if hostile ingenuity were to contrive a system for us under which we could not be expected to prosper, it would very nearly resemble tho unequal and unfair one which now subsists between us and our neighbors, to which the present administration seems devotedly attached. The conditions in 1878, are so different from the conditions which existed in 1868, that a judicious readjustment of the tariff seems to be a most pressing necessity. It was my purpose to touch some other points involved in this great question, but I could not presume further upon the indulgence of the House at a very late hour. It was my purpose to consider tho laisser faire, " fly on the wheel " policy, or no policy, so frequently^avowed by Ministers, and to show its inapplicability to a new and growing country like ours. The idea that trade should be as free as the air, is captivating to many ; but other analo- gies are suggestive of great truths. The wise father does not give license to the exuberant energies of his son, but strives rather to educate, restrain and guide. Liberty is wisely fettered and its choicest blessings are secured Dy the restraints of wholesome law. The husbandman restrains the wild luxuriance of his vines and fruit troes and attains the best results by training, pruning, grafting, fostering and enriching them — in short, by adopting a moderately protective policy. I intended, also, to consider what I deem a grand Free Trade fallacy, namely, that moderate protection invariably enhances the cost of goods to the consumer, and to show that, in mo.st instances, home competition sufficiently reduces prices, and that, were it otherwise, the numerous indirect benefits of home manufactures and h3me markets would com- pensate for a very considerable enhancement of price. Who, for instance, can cstimiito tho bonotit to the farmer, that ho has at his door manufactories of boots and shoes, clothing, furniture, foundry-goods and implomonts, whore tho products are procurable without tho agency ot Tiumerous middlemen and whqro they are all adapted to his special needs? "Why is it^ that the farmers of tho Western States, where harvest labor is two to three dollars per day, are abli' to produce wheat, transport it u thousand miles by rail and throe thousand miles by sea and compete in i'iUropo with iho water freighted wheat of Russia, Avhere harvest labor is |)rocurable at ten cents per day? The perfection and infinite variety of labor saving machinery, which are thedirectresult of mechanical skill, invention and opportunity stimulated and developed by protected manu- facture in the country, (the condition and needs of the farmer being thoroughly understood by tho mechanic who serves him) largely con- tribute to the American and Canadian farmer's ability to compete in <'ereals with the cheap farm labor of Europe. If the farmer complains that he pays a profit on tho needed implements, ho should also recollect that, but for the system of which I speak, tho implements might not have been produced or Ijo procurable at any price. Hon. Mr. Mills, at Fergus, and Mr. Charlton in tho House of Com- mons, liavo attempted to make Canadian farmers happy by the idea that tho American consumer pays the duties ujjon farm products exported to tho United States. They marshal a long array of figures, borrowed from United States Custom House returns, which, if correct, show a very con- siderable advance in the prices of horses, liorned cattle, sheep, wheat, wool, barley, ryo and other cereals, from tho abrogation of tho Treaty down to tho present time. One fact is clearly established, but it is not the one they aim at, namely, that during the period of high protection in the United States, the prices of those articles in the United States markets have very materially advanced — indeed that they have advanced more than thirty j)or cent, as w^ill appear by adding the United States Customs duties to the prices at which these articles are entered. That the American farmer has had tho full advantage of this re- markable increase of price, is not to bo disputed. But that the Canadian exporter has had a similar advantage, is by no means established. On tho contrary, the Eastern Townships farmer knows that v-hen an American drover j^ays to his neighbor living across the line, tv> o aundred dollars for a pair of oxen and pays him only one hundred and sixty- seven dollars for a pair of similar size, condition and quality, that the il, and the wealth above the soil, in our lumber. We should also consider the resources of the country with reference to its capability of becoming a successful manufacturing nation; and more than that, we should consider the capacity and aptitude of the people, and aim at framing the tariff so as, m the largest degree, to develope the varied powers of all the people, and give them an opportunity of engaging in that calling or department of business to which they may have special aptitude or inclination. We do not believe in the views propounded by gentlemen opposite, that it is not the business of Government to care for any of these things, that Government is a mere taxation and revenue distributing machine, which should move according to certain fixed laws and ulti- mate principles. The supporters of this amendment claim, on the contrary, that the financial policy of a country should not be based on any ultimate principle of free trade or protection, but that it should be specially adaptive to the conditions of the country to which it is applied. A True National Policy Defined by Mr. Charlton in 1S7C. We believe that every customs tariff should have a distinct and definite purpose and intelligent aim ; that it should be based upon a correct estimate and appreciation of all the varied resources and capabilities of the country, and should shape them in the direc- tion of their best possible development. The general view* affirmed in this amendment, have been more than once stated in this House, by many able and thoughtful members, clearly and distinctly ; yet the House will pardon me for stating that the exposition of my honorable friend the member for North Norfolk (Mr. Charlton) in 1876, then a Protectionist but now an avowed Free Tiader, was the clearest and best that has been given, I do not purpose troubling the House 10 with a recital of the lion, gentleman's speech, but will submit an analysis of its main propositions in their consecutive order. I aim at perfect fairness, and beg the hon. gentleman to correct me if I make a misstatement. This reference to the speech is not made for the pur- pose of placing my hon. friend at any disadvantage, or because he has since changed his opinions ; but because it is the most careful, the best considered, the most clear and concise statement of the views now held by the Opposition, that has yet been given on this much debated subject. The hon. gentleman laid down as his first proposition (1) that a Government could be paternal and yet be free. In this he directly controverted the position taken by his leader, the Final, ce Minister, in his Budget speech last year, and vindicated one of the car- dinal planks in the platform of the Opposition. His next proposi- tion (2) was, that no nation had attained to greatness in manufactures or commerce without having imposed exactions and restrictions. This was a plain statement of an historical fact, upon v/hich the Opposition lay great stress, and its truthfulness was clearly demonstrated by the hon. gentleman in his speech on the subject. The next proposition (3) was, that protection was especially necessary in a new country — and ours is a new country — to enable it to compete with countries where manufactures are established. The hon. member recognized in his speech the fact that the cheap money, the acquired skill, and the prestige of older manii-» facturing countries would take the lead in the race, and, as ad- mitted by John Stuart Mill and other Free Traders, the country that had the lead, all things being equal, would keep it ; he held that this advantage an old manufacturing country had, must be counteracted by restrictions in order to enable the new country to get a start in. these industries. The next proposition of the hon. gentleman (4) was that judicious protection benefitted the nation at large, and especially the farming interest ; that it created for the farmer a home market, and that the purchasing power of labour was increased. The Opposition believed equally with the hon. gentleman that protection did benefit the agricultural interest, and they believed also that the purchasing power of the farmer's labour would be vastly enhanced by the creation and proximity of home markets, as was clearly stated by that hon. gentleman. Again, he laid down the proposition, (5) that the experi- ence of the United States, under a protective policy, was a clear and marked illustration of the benefits of protection. If this was true when the hon. gentleman so stated it, it is equally true now ; and before I sit down I will adduce a few facts in corroboration The hon. gentle- man next said (6) that the tendency of protection was not to increase, but cheapen prices to the consumer. This is an incontrovertible pro- position. Protection is merely a defence of the markets of a nation to the people of that nation. It simply gave a fair field to competitive skill, industry, and capital, where the highest prizes are for those who produce the best and sell the cheapest products. The hon. member for North Norfolk cited the iron and cotton manufactures of the 11 United States as indisputable proof of the fact that the tendency of prot(> ^tion is to cheapen prices. And he went further even than the amendment. He stated the fact, which I think he was justified in stating, that protection had been beneficial to the shipping interest of the United States as well; so. that he covered the whole range of industries which come under the tariti:', and he stated so emphatically, lucidly and concisely thractical opposition to the policy of the hon. tho Premier himself which ho hai carried out iluriniL,' tlie whole perioraj^' ; it means nothing; if it doks moan anything they would out down by one fell blow every indu.stry which lias any^Htart in this country. Otherwise it is mere buncombe. Free Trade NtiU bat a Tlicorv* I do them the credit of believing that the lion, the Minister of the Interior is an honest a free trailer as ever broke the bread of life — from John Stuart Mill, or any other sound authority on that doctrine. The hon. gentleman believes the doctrine, an)ecome cheaper; and to that fostering policy lier manufacturers were indebhed for their present position. I maintain that the removal of duties from raw material, and the im- position of customs duties upon manufactured products, are equally measures of ])rotoction. When the protectionists were ask- ing the Finance Minister to protect the sugar interest in this country, — when they represented that it was on the verge of peril, unless the Government did something for its relief, they told the Government that this might be done in one of two ways, either by a higher duty on refined sugar, or by reJucing the duty on the raw material. Either of those means was protective, ai d tli^ latter method would have given that industry tho greatest advan- tage it could have it competition with tho markets of the world. The great object should bo to foster and protect our industries, and to give them every advantage which the legislature of the country could possibly afford them. ■ ■. > •'. -^ England's Policy designed to Foster aiid Protect Manufactures and Commerce. Tho vaunted free trade policy of England is essentially a selfish policy. I do not say that offensively, but it is a national policy in the interests of the nation and designed to give her supremacy in manufactures and commerce all over the world— desierned to i foster and protect and build the great dominant industry of the world. The legislature did all that it could do. They did not say that legislatures wore helpless, that they could not do anything to help them, that they were flies on the wheel, but they met the condition squarely in the face and said that by legislation they could help this industry, give it an advantage in the world and lighten the burdens tkat rested on it. That was what England, in her wisdom, had done from national considerations; trom the same principles that prompted 22 us to endeavor to build up our industries by legislation. Those interested in the sugar trade would have been content if the Finance Minister had taken a lesson in protection from England's policy, and lessened the duties on their raw materials, and thereby saved them and the country from the loss of an important industry. Sugar refining is the key to a trade with the West Indies in our manufactures, lumber, and farm products, and the blow which struck it down inflicted a serious injury upon these other interests as well. When England adopted this policy of so-called free trade, she had already gone as far as she could in the other direction. We know that before 1842 the policy of England had been a most rigidly protective one. She had even gone the length of prohibiting the exportation of machinery. Pro- hibition of machinery for the manufacture of flax had been continued long after the passage of the free trade Acts. I said it was not in the power of England to assist those industries by the imposition of duties, because she already had control of her own markets. In 1842, the date of the first tariff" reform measure, the total amount of customs revenue derived from articles manufactured in England was less than seven and a half per cent, of the total duties levied hj customs, so that the importation of articles coming into competition with English manufactures in the home market was practically of no consequence whatever to the English manufacturers, as a class. I except the duties upon silk goods, concerning which I will speak in a moment. The imposition ot higher customs duties would there- fore have done the manufacturers very little good, even if duties had been prohibitory. The first of the so-called Free Trade Acts was that of Sir Robei-fc Peel, in 1842. It was followed by further legislation in 1845 and 1846, and again by Mr. Gladstone in 1853. Was England a Free Trade nation, influenced by Free Trade consiaerations ? In 1853^ Mr. Gladstone continues Protection to Silk Manufactures. As late as 1853, eleven years after the countiy was supposed to have embarked on a Free Trade policy, Mr. Gladstone refused to take off" the duties on silk, because he would not cause distress among the operatives in the silk industry. There was a howl all over the world. England was preachinjj Free Trade for the United States, and France, and those countries asked why, if Free Trade was so a wise policy, the English Government retained a duty ot 15 per cent, on silk. But they adhered to it even after they had been derided by the world; Mr. Gladstone adhered to it in 1853, audit was not until later that England took the duty from the only article really protected by her tariff*, namely silk. This was the only article in which English manufacturers had competition. The effect of the removal of the duties on silk was that while the importations in 1860 were 16 millions; in 1861 they ran up to 28 millions, and have since reached 60 millions yearly. The removal of the duties brought disaster. The home market was flooded with 23 foreign silks, numerous manufacturers of silk failed, thousands of silk operatives were thrown out of employment, and that once pros- perous industry was largely prostrated. That was the record of England as a Free Trade country. Mr. Charlton's Change ot Opinions. Having spoken of England, I desire to say a few words regarding ourneighbors across the line and the policy they have adopted. But before doing so, I will take the opportunity of referring to some observa- tions that have been made by the hon. member for North Norfolk (Mr. Chariton). In 1876 that hon. gentleman made a speech in the House on the Tariff question, and it is no flattery to the hon. member to say ttrnt no member has given to that important question more careful study than the hon. gentleman, and that no hon. member, either us a special student of the subject or as a practical business man is more competent to arrive at a correct conclusion. The propositions laid down by him in that address, were the result of thought and study, and they were, I believe, the honest conclusions of that hon. member at that time. We have the best reason to think they were bis honest and deliberate opinions, for in expressing them he placed himself in antagonism to the Government which he supported. In 1877 that hon. gentle- man made another speech from directly the opposite standpoint. The speech to which the House had listened this session was not the first Free Trade speech which the hon. member has made. In an address last session, he expressed practically the same views which he enunciated and expounded with such ability a few evenings since. Between the sessions of 1876 and 1877 that gentleman's views upon a question with which he had been familiar for many years, and which he had made a special study, changed to the right about, and from being an intelligent Protectionist, as he was in 1876, he became an ardent Free Trader in 1877. I would be the last to question any one's undoubted right to change his opinions upon any question, however much he might have considered it. The hon. member for North Norfolk justified his change of position by a comparison which hon. members who heard it, would remember. The hon. gentleman said the child was told by its nurse that the moon is made of green cheese and believed it, that when the child grew to be a man he knew the moon was not made of green cheese, for he judged for himself. If that illustration has any point or meaning, the hon. member desired the House to believe that in 187G he was in the green cheese period and in 1877 the maggot in the cheese had by some miracle changed into a butterfly, that was ranging the heavens ; that the scales dropped from his eyes between 1876 and 1877, whether on his way to Damascus or not we are not informed, and what had appeared to be green cheese in 1876 he could discern clearly by a different \ision to be the moon, in 1877. He could not only tell us the moon was not made of green cheese, but ho could count the inhabitants, and give us statistical data 24 ooncerniug the industries, trades, occupations, an 1 all the domestic afiaiiw in that distant planet. That being the hon. gentleman's explanation, I suppose the House will, in a Parliament.'uy sense, be bound to accept it, and to believe that he was under lunar influence when he favored us with that formidable array of figures. But I will not so far dis- parage the intelilgence of the hon. member as to think that he desired the House to believe that in so short a period of time, from a well- grounded and thorough Protectionist, he had entirely changed his whole views and become a settled and confirmed Free Trader. I am sure the hon. member would not desire that the House should have such a con- temptible opinion of his judgment, as to suppose that in that short space of time he had entirely changed the settled opinions and. convic- tions which had grown with his growth and strengthened with his strength, and which were honestly entertained when he made his speech in 1876. The hon. gentleman was not a silent Protectionist then. There was no one so active in promulgating his views, none so active in promoting the committee relating to depressed industries moved by the hon. member for Hamilton (Mr. Wood) and making it a success. Hon. members can not show such contempt for his judgment as to suppose that in such short time, whether by miracle or otherwise, that the scales fell from his eyes so that he saw things entirely different from what he had done betore that date. The hon. member found himself placed in the same position in which other men had ioimd themselves before to-day. He was in the position of Alexander H. Stephens, when in 1S61 in Georgia, he made that very memorable and eloquent speech denounc- ing secession and brought the whole weight of his ability and eloquence upon the people of his State, to keep them from joining the secession movement; but the moment that movement was determined upon, he, who had fought so strenuously against secession, felt it to be his duty to the party of secession to draw the sword in favor of the party and against tha country, to accept the Vice-Presi- dency of the Confederacy, and to give all the weight of his eloquence and influence to a cause which he had just previously denounced. It is a bad position for the hon. member from North Norfolk to occupy, yet bad as it is, self-condemnatory as it is, it is a position he has deliberately chosen, as did the distinguished gentleman referred to. The honorable member, no doubt, felt, although his action was grossly inconsistent, it was still preferablf to the unenviable position occupied by the hon, members from Hamilton and othor protectionist supporters of the Government, from whom he felt it at that time his duty to sever himself If he was to serve his party at all hazards, he determined he would serve it in the livery of his party, and that he would sail under his true colors, and take the consequences of that first break ; and he has done so. Mr. Charlton's Special Pleading. The hon. member having accepted that position, wo might expect from him that extraordinary zeal and fervour usually 25 cliaracteristic of new converts ; and he has given marked evidences of it. I do not desire, and would not if I could, follow that hon. gentle- nip.n through the mass of figures which he prepared with such •aie and labour, during many weeks and months of industry, to ili.^strate the point he desired to make, but will say, if there ever was 0, specious, ingenious and laborious piece of special pleading, the figures which that hon. member had massed together and directed to a particular end, was a most noticeable instance. What was the character of the figures which the bon. member for North Norfolk gave to the House ? I assume for the moment that the figures are all correct. The hon. gentleman, although he told the House in 1870 that protection was beneficial to a whole country, and especially to the agricultural interests, found it necessary, inasmuch as that was a very potent interest, to reconsider and reverse his views upon that question. The hon. gentleman attempted to convince the House aud the country that agriculture had been unprosperous in the United States by reason of the high protective duties which had been adopted there. And how did he test it ? That is one of the points respect- ing which I will show that the hon. member by the sj'stem of special pleading which he adopted, had attempted, I will not say unfairly, but ingeniously, to steal a favourable verdict from the House and country. How did he attempt to make the point that the farmers had been injured by the protective policy of the United States ? Did he give instances of sales of farm products during that period? No. He made the quantity of products exported from the country a test of the prosperity within the country, not stating any particulars as to the prices, — a factor which he seems to think is of no importance. What period did the hon. member select in order to convince the House and the country that agri- culturists had been unprosperous in the United States, for the reason that their exports were less during the protection than during the free trade period ? He sslected the period from 1860 to 1870. Has hon. members no recollection of what occurred in the United States from 1860 to 1870 ? Does the hon. gentleman think that hon. members in the House and the people in the country have forgotten that during that decade there had been a civil war in the United States ? Does he think they have forgotten that during part of that period the cotton export, which formed the principal article of general export, had been almost nil ? Does he forget there was a desolate South, and that instead of billions of pounds of cotton being exported, only six million pounds were exported, for instance, in the year 1863, and that it dropped to an infinitesimal amount ? Does he forget that for years and yeai-s the great productive region for exports par excellence, the exporting region of the entire Union, was desolate and blotted out entirely, as an exporting section ? Does he forget further, that not only did the exports of the great staple cotton practically cease, but when the war terminated there was a desolate country in the South, and that for years afterwards the 26 agricultural products of the West* the wheat and Indian com of the Western States, had to be sent into that poverty-stricken and starving country to feed the people.and that much of thecorn which, in its natunu course, would seek the European market, was taken down to feed the South ? Does the hon. member forget tlie great waste and destruction of war, and the destitution caused by one million men being taken from the industries of the country ? Does the hon. gentleman forget that during that period the waste was far in excess of the actual consumption ? And yet he attempts to make the House and the country believe that the decline of exports during that decade showed the extent to which agriculture has been injured in the United States by protection. The honorable gentleman was fully aware when giving those figures to the House that if he had taken another decade, reaching past some of those disastrous years, it would have told an entirely different story. He well kn)w that in 1867 the exports of the United States were $41,046,034, and ran up in the following nine years of the protectionist period, until it reached $75,899,008 in 1876, and that the imports of British home produce into the United States decreased from $21,825,703 in 1867 to $16,833,517 in 1876. Did he not know that during the whole decennial period from 1867 to 1870, the exports from the United States to Great Britain increased at the rate of 85 per cent, while the imports of British home produce to the United States, though never above half the value of the exports, decreased at the rate of 25 per cent ? These are facts which should fairly have been stated, if the exports were to be considered a test. Yet the hon. member for North Norfolk desired to steal a favorable verdict from the House by entirely ignoring those facts and returns, and simply stating the ordinary statis- tics ior the decade from 1860 to 1870, without calling attention to the abnormal condition of that period. If the returns proved anything it was that the exports had increased 85 per cent and the imports dimin- ished 25 per cent, during ten years of high protection. This is the logic of facts, but it does not suit the hon. member for North Norfolk. The hon. member tor Centre Toronto (Mr. Macdonald) in a speech which was very much admired for the clearness with which lie made his points, declared that Canadians were suffering from depression in consequence of the diminution of the circulation. That because the discounts had diminished in two or three years 10 ppi- cent., this shrinkage of cuirency pro- duced such a startlinsr effect on the country as to .account, in the hon. member's mind, for much of the depression. But did hon. gentlemen, when considering the question of Protection across the lines, speak in that manner ? Did they attribute the present condition of the United States to the expansion of circulation and discounts, the creation of an irredeemable currency, the era of infla- tion and high prices and of speculation, of madness, I might say, the direct result of that most inordinate overissue and the consequent depression that must naturally be felt in returning to the nor- 27 inal condition ? All the ills thnt liave befallen Canada could be accounted for on that theory, but when they come tu consider the troubles that have befallen the United States, it was Pro- tection alone that had brought all ills upon that country ! Speaking of the United States, we have heard highly colored accounts from several hon. gentlemen as to the condition of the industries of that country. The hon. the Finance Minister read to the House the other day from a document signed by the Governor of the State of New York about the great distress ; it was full of glittering generalities. Now, if I did not think I was able to throw some light on the condition of the industries of the United States, by reading what I am about to read, I would not trouble the House to listen, but I have information from a source which all will recognise aa trubtworthy. Goreruor Rice upon tlie Industries of Massachuetts. Massachussetts is the leading manufacturing State in that country, and the highest functionary in that State, Governor Rice, in his official address to the Legislature of that State, last month, gave an explanation concerning the condition of manufactures based upon official returns. We have heard of the depression in that country, of the wild lawlessness, ^f the lurid fires of Pittsburg ; jind an hon, gentleman has described a [)andemonium and pictured hell cm the four walls of this building for our edification, as illustrating the condition of the United States. But what said this sober-minded Governor concerning the actual condition of the manufacturing industries of his State ? This i.« not a highly-colored picture, but a statement of pure facts. The Governor said: — " By the result of an investigation just closed, undertaken by the Bureau of Statistic of Labour in cities and towns producing cighty-si.K percent, of the whole products o the State, we are able to make an excellent comparison of the condition of our large indnstries in 1877 with that of 1875. In all, there has been a decrease of an average of about nino per cent, in the wages paid ; but there has been nn increase of working time in days. The paper made, shows an increase of nineteen days over the working time in 1875 ; the manufacture ot worsted goods, twenty-seven days ; and in the manu- facture of cordage, cotton goods, carriages, straw goods, carpetings aud wool hats, an increase of working time has been made ; while in boots and shoes, leather and agricul- tural implements, there has been neither improvement nor decrease. In the manufacture of machinery, whips, musical instruihents, and woollen goods, a slight decrease in work- ing time is reported. The great industries of carpetings, paper, woollen goods, worsted goods, cigars, boots and shoes, cotton goods, leather and metallic goods, report an increase of the number of hands employed, ranging from one to thirty-five per cent, over the number of 1875 ; while a few of the establishments report a slight falling off in the number of persons employed. On a gold basis, the value of prorotection. Mr. Charlton's Statistics utterly Valueless. If wo accept that proposition, we would wipe out the results of all the labour and industry which the hon. gentleman (Mr. Chailton) ha.n put forth in order to make out his little special case before this House. If we accept that proposition, the hon. gentleman's papers are utterly valueless, they are just so much waste paper, and the days and nights he expended in accummu- lating them have been in vain. I do not expect the House to receive this propo.sition upon my individual dictum, but I have a high authority to support it. I give as an authority the name of J. E. Cairnes, iM.A., late Professor of Political Economy iii University College, London, who, although seeking to establish by his book the i)rinciples of free trade, disdained to make use of arguments similar to those the hon. gentleman uses, and he repudiated their use most emphatically. The Professor said : — - " And here wc are confronted at once Avith the difficulty of interpreting an indus- trial experiment. The system of American Protection, in its present exaggerated form, may be regarded as dating from 18G1, when the Morrill tariff became law. It' all the other conditions of the case had i-emained substantially the same since thai time, we might now, by a mere inspection of results, pronounce without hesitation on the effect of the policy then inaugurated ; but instead of this observe how the facts stand. In the same year the great Civil War commenced, in the course of which the destruction of human life and of wealth in every form probably exceeded any thing which had before occurred within the same time in the history of human affairs, Tliis wiis soon followed by the creation of an immense national debt, entailing a large permanent increase of taxation, and by tlie issue of an incontrovertible paper currency, circulat- ing throughout the Union, and affecting alike prices and wages in every branch of trade. On the other hand, occurrences of a very different kind marked the course of the period under review, mineral resources were discovered which are now yielding vast wealth, and oil springs which have become the source of an entirely new and rapidly increas- ing trade. Railway enterprise, again, during the same time appears to have taken on. a new activity, whilst the progress of invention in the mechanical arts has never for a moment flagged. In presence of influences so niimerous, so novel, and so vast, each affecting industry in its own fashion so powerfully, who shall say what portion of what we now find existing can properly be attributed to any one of them ? The problem, in its mere statement, brings into striking relief the tetter futility of that so-ccMed ' inductive method ' which some writers hold to be the proper one in social and economic enquiries — the method, that is to say, which would proceed by drawing general con- clusions as to the operation of paiticulur causes from the summarised results of ttatis- iical tables." The professor protested against the fallacy of the method used by my hon. friend because there were so many conditions to derange it. The propositions my hon. friend (Mr. Charlton) has adopted here, 29 and just put before the House he (Cairnes) declares to be entirely fallacious and unreliable as arguments. He went on to say : — " For, aasuminp: that we have taken accurate stock of the present industrial con- dition of the United States, as well as of that which was in existence previous to 1861. So long as we confine our view to the mere statiitical aspect of the caiie, what warrant have we for atlribntiiuj any portion qf the change that has taken place to one cauu rather than to another. Mani/estlt/ we have none." The ingenious compilation of my lion, friend, docs not prove a single point which he desires to prove. His statistical data, according to the high authority of Professor Cairnes, were unquestionably not entitled to weight. We may attempt to measure and weigh and estimate the forces which have been at work in the United States since 1801, but if we arc catidid wo will confess that they are so conflicting, diverse and varying that no human mind can grasp them all and extract a satisfactory conclusion. According to this high free trade authority, Professor Cairnes, my hon. friend's (Mr. Charlton's) summarized statistical data are not entitled to any weight whatever, as tending to prove what he, in his new born zeal, desires to prove. It is impossible to attribute the condition of that country to any one cause. Thus much concerning the hon. gentleman's statistics taken from the United States. Mr. Charlion^s unfairness respecting Canadian Industries. If the House will bear wfth me I will show equal ground of complaint as to his unfairness in dealing with Canadian statistics. The hon. gentleman came before us with a budget of letters, which he did not read, except two — the contents of which we have not se^tn — but the substance of which the hon. gen- tleman might have fairly stated. The hon, gentleman said he had written a number of letters to manufacturers enquiring what they thought of the state of trade, and he had twenty-one answers. He also informed us that he had written a number of letters to -which he had received no reply. Well, on a pjint of this kind, the man who.se business is unjirosperous, would not bo likely to reply and expose the condition of that business, and the hon. gentleipan might have calculated u})on this in sending out the letters. Not every man cares to expose the state of his business in these critical times, and tor aught the hon. gentleman has told us, he might have sent three or four hundred letters to which he had received no replies. He did not state that any one of these letters had been sent to the Province of Quebec. I do not Icnow any manufacturer in that Province who could have given information that either he or any of his neighbours are in a prosperous condition. There might be such a rara avift there, but I would not know where to look for him. Agrlcultni-al Implement Manufactures. I notice that about half of these replies sent to the hon. gentleman were from manufacturers of agricultural implements. Just look at the unfairness of liis conclusions and see how protection was illustrated in 30 the condition of tho ajjfiioultural imj)leniont manufactures of Western Canada. What is protection / It is merely the preservation of the home market for the homo manufacturer. Now, protection, that is the pre- Hcrvation of the home market to the homo manufacturer, may bo tl»o result of tariff legislation, or it may bo tho result of any accidental cause which produces the same practical effect. Wo had pretty fair ])rotection, as against tho American manufacturer from 1862 to 1872, owing entirely to unusual causes, with which tho tariff had nothing to do. I believe my hon. friend Is acquainted with the fact that the over-production in American manufactures has not occurred in tho agri- cultural implement branch. I am sure tho House will be surprised to learn that a leadini^ American manufacturer has stated that no less than 100,000 new harvesting machines per year are reijuired to re- place old wo''n-()ut machines. There have been such great improve- ments in reapers and liarvesting machines of late that new machines are purchased before tlio old ones are worn out. There is a ma- nufactory in the State of New York, not very far from Upper Canada, where something like :i5,000 machines are made a year ; and another manufactory in wliicli 15,000 are made a year ; and others in which 10,000, 12,000 and 15,000 are made each year, and yet alto- gether they have not boon able to keep up with the demand in the home market for the.se implements. They did not send their machines to Canada, and why ? because they had better markets there and their own prices. Thus the agricultural implement manufacturers liere are in a situation ])reciHely similar to that which existed dur- ing the American war in regard to all our manufactures. Theee manufacturers, and certain foundrymen, from several of whom replies had been read, had n de facto protection in Canada, because their rivaLi in the United States at present have an ample field in their own market and in new markets which have been established in England and on the continent of Europe for a certain class of reapers and mowers that are made in the United States. I can tell my hon. friend this — that whenever the consumption overtakes the production in th^ United States, Mr. Noxon, had better look out for his business ! That gentleman would not be coming to this Legislature and saying he had protection enough whbn implements made by the manufacturer in the United States, who made 25,000 machines a year, and who had systematized his business by a division of labor so that he could make these machines at the slightest possible cost, giving to every man a particular department of work to do, came in here to compete with him (Mr. Noxon) in Canada in this class of implements. Ho would then find that a protection of 17| per cent, was no where ; and that the United States manufacturer with his larger capital, larger eAperience, his more skilled hands, with all the facilities he has for manufacturing, and for doing a larger business, would over-ride a 17^ per cent duty as if there were no duty. It would then require 30 or 33 per cent to protect this happy Mr. Noxon, who now is contentedly enjoying his little pa- 31 radiso up at Oxford, Imvinj^ it all to himself, and contentod now because ho lias no competition. To select that cIohs of indus- hies to make out a case, that there are no suffering induHtries in Canada, is unfair. There are suliering industries in Ca- nada ; industries that the hon. the Finance Minister once liad the power to protect and the pow '" to save from destruction, and from boing overwlielmed by the unfau competition, by the unjust com- petition, by , the slaughter prices whinh have been systemati- cally thrust upon us from the United States ; and the fact that the agricultural iniplement business and a few foundrymcn in Upper Canada, who have written like letters, have not been so overwhelmed, results from reasons I have just explained, i.e., that in the United States the production has not, as yet, exceeded the consumption in that particu- lar line or department. When the hon. gentleman selected his men to write about an industry which he knew was prosperous, and an industry which had to-day an adequate de facto pro- tection, although not a legal protection, and desired this House and this country to draw the inference that the manufacturers of Canada were in a happy or ])ros])erous or even a tolera- ble condition — he attempted {; most deliberate fallacy. It was an attempt to prove what did not exist by a condi- tion of aftairs that does not truly represent or by any means re- present, the general condition. Protection and Free Trade in tlie United States. I have not yet got through with the United States. While persisting in the statement 1 first made, corroborated by the extract read from Prof. Caimes, — that reliable results could not bo arrived at from these statistical compilations, there are yet general facts connected with the condition of affairs in the United States that have some bearing on the question we are discussing. I believe it is an historical fact that the earliest protectionists in the States were from the South — that the cotton interest and the sugar interest of the Southern States believed that their in- dustiies would be benefitted by the imposition of duties upon cotton and upon sugar; that the effect would be the creation of manu- factories in the United States which would consume those raw products, and that the earliest efforts made in the direction of protection in the United States, emanated from the Southern States. What was the result ? The same social repulsion which has always existed between the two sections of that great country existed as far back as that period. The same jealousy of the JNorth against the South and of the South against the North then existed. What was the result of the protective policy thus inaugurated by the South ? The expected result was that tht? North would be their spinners and their weavers ; and that the growing trade of the North, the commerce of the North, would be injuriously sheeted ; that this commerce would be transferred to the South, and that the agricultural industries of the South would be built 82 up. But what was tlu^ actual effect ? A few years' experience .sliowcd tlieni very inuch to their astonisliment, lus well as to the aHtoniHhincnt of the wlioh; country, that the North waw grow- ing out of all proportion in. wealth, in strength an«l in population, (rompared with tiie South ; that it was rapidly outgrowing tlio South ; that njanufacturcs ^Vere sju'inging u}), that towns were be- coming cities and that cities' were becoming very nnv^h larger, and more wealthy, so that some cities in the North were more wealthy than some States in the South. From that moment, the South changed its policy. When they discovered this, ))arties changed sides on that question, and thonceforwanl, the North and New England were steadily i'avoui'ablo to protection — I am now speaking broadly — while the South has l»oen steadily op])osed to it. These two ideas of free trade and ])rotection had a full exem])litication in that country. It is true that the same tarill has governed both section.s, but it is also true that the South has been impressed all nlong with the eorrectnesa of free trade ideas ; that it has slmjied its policy on free trade dogmas, and that it carried into eftect its free trade beliefs ; wliilo the North, on the other hand, has been ])rotectionist in sentiment, has believed that the creation of great industries would directly benefit the Eastern States, anort yours ; that we ahull be left free to stll and buy w/ieriver our inUreit hadi it»." King Cotton and King Wheat. Thi.-. was tho foundation stone upon which tho monai'chv of Kiny (.'olton routed. Thoy holiovod in King Cotton. Thoy bolioved in the potency of that great agricultural Ntaplo. Thoy holioved in cotton and sugar, ihcir great ox]>orts; they uelieved in free trade ns the truo liscal policy; and this* very same doctriuo which had been preached, and which led to tho delu.sion of the South, to tho destruction of tho South, and to tho ruin of tho South, is now being preached to tho farmers of Ontario, who are invited to idolize King Wheat as the men of tho South worshipped Jving Cotton. Tho free traders of this country arc j)roaching to tho furmors of Ontario that thoy could place their dcpeiidcnco upon tho export of wheat and of agricultural i>ro- ducts sent to foreign markets. Ontario farmers are being told tho same sweet talc, that the orators of the South told to the growers of tho sugar and the cotton in Iho Southern States. This was history repeating itself. Witness tho dC'iolation of tho South, the inability of the South to copo with tho Xorth in tho great war, and the collapse of tho South ; and, on tho othor liand, tho immense resources and wealth of the Nortli, and SCO how unequal the fight was. lion, members should look on that picture to-day; one section of iho country rich, one section of the country prosperous, one section of the country triumphant, while tho other section of tho country is blighted, tho other section of tho country is down-fallen and prostrate and under foot, — just by ndheronco to that free trade dogma, and carry- ing into practice the belief that they might depend on those great staples of export, cotton and sugar, the same as the farmers jf Ontario are now being taught that they should place their sole reliance in their wheat, in their barley, and in what they exported ; and buy goods where thoy could buy them in the cheapest market ! It is truo that Now England did make money — did accum- ulate Avoalth by its industries. Gentlemen in this House dig- cussed this question as if every dollar taken by the manufacturer was s^ much lost and sunk in the sea, as if every dollar of profit made by tho manufacturer was something to bo mourned over by the rest of the community, something out of Which thtf whole community had been robbed, and as if it ought to be regretted if the manufacturers were prosperous and making their 10, 15 or 20 per cent. But what have the manufacturers of New England done ? The prosperity of the United States to-day resulted largely from the fact that these manufacturers had accumu- lated wealth and had judiciously invested it. Look at the magnificent schools of the North ; look at the young men these schools have educated and sent abroad into the Union, active, intelligent and practical youHg men, brought up in these training schools of Now England ; look C S4 at th« wealth that had gone to rebuild the desolate and oumed Chicago; look at iho woalth that had gono to tho West to build its railroads. Look at tlio woallh that wa.s going down South, now, to build milU and factories, to biiild up that btrickcn South, that poor poverty Hiriekon South, which bolieved in its two goU— King Cotton and Froc-Trado. Those wore tho two Kings which tho South had deified, and see whore that idolatry oCand that devotion to a I'ullacy. had led them It had lured them to destruction. Tho Now KoHrhiiul Pollcj, tho Troe rolioy lor Canada. Tho Opposition wanted to see tho people of Canada have among themselves, for tho devclopoment of hor resources, Helf- reliant men, brought up in tho schools of toil, brought up to dignify labor, and to honor lal)or in themselves and others. This ])olicy had produced a community, than which perhaps tho world to-dny had no superior, tho people of tho Now I'jiigland States. The policy which I would like to see introduced into Canada, and which I believe is tho true policy for Canada, is to mako this section of the country which wo now occupy on this Continent, tho Now Ecigland of Canada, and to plant hero those same institutions which have boon tho harbitigers ot success in tho noigiiboring States across tho line. Our conditions are precisely the same as theirs. Wo have tho samo soil, wo have the same facilities for manufacturing, wo have all tho conditions that aro kindred to theirs, and wo are shortly to have what they now have, a great North-west open- ing be^'ond and boundle-s, which is yet to be itduibited by millions of people. 1 (le>iio to say to the farmers of Ontario — hoio is a lesson for you, consider it. Year after year, you are impoverishing your faims b}' growing your wheat and hcnding it to England. Ycir after year tho facilities for entering tho Northwest and bringing its pro- ducts down to tho t-eaboaid, are increasing; year afier year in tho futuro there is going to be a steadily increasing agricultural jwpulation in the West, who aro to be your rivals in tho markets of tho world. While your lands arc being gradually worn out and impoverished, those fields aro being brought under cultivation. There is to bo tho groat granary of the continent. Can we believe that 25 or 30 years hence tho farmer of Ontaiio would bo able go on competing with liio farmer of Saskatchewan in tho raising of wheat or those products which liad to go to a foreign market? The condition of the Ontario iarmer is giowing woise year by yeai', and tho condition of tho Western farmer is being bettorod in tho same ratio. Tho contest is an unequal ono and tho Ontario farmer will probably find himself in tho long run in tho same position as those w'io relied on Carolina cotton. For tho Ontaiio farmer to raise his wheat, to ship it to England and to buy his goods in tho cheapest market, would just bo to kill the gooso that laid the golden egg. I welcome tho day when the West will bo opened up, and when Ontario and Quebec will occupy tho sam.o posi- tion relatively to that country, that New England does to the great Western Srates. The Finance Minister opposed to the Growth of Towns and Cities. I have been amazed to hoar the Hon. tho Finance Min- ister, not only in his budget speeches, but also on the stump in Ontario, preaching the doctrine that tho aggregation' of people in great cities i» 86 injurious to a country. How, I would asic, could agricultural comma* nitios ho injured hy iho formation ot' lar^o towns 1 It is in sucli that fai^iors find ihoir host market. If fnrtnorM laho an intylligont view, tiiey ^nn^t 80o that their Nnct'osf< greatly depondH on the /,nowlh ot largo citioH. When Montreal hecunie us largo \\^ Now York, unJ Toronto as hirgo as rhilailolphl:!, and when other largo eitios have orison amongst us, would it not l>j nil tho hotter for tho farming conimunities all round ahout thoin ? Would it not onhanco tho value ot farms and tho I)ri('o (»r farm j>roduc'ts ? It is true, as has heen indicated In' tho *'inanco Minister, that in great centres of population is to bo found a great deal of wickedness, a groat deal that is wrong, hut tniich also lha» is good and boneticent. Ikit if these great C(Mitr'os wore broken down auU the pop'jiation thereof disperse I ammg tho agricidlural pop ilations with whom they would enter into competition, the cot)»umitig population would bo so much decrease I, Jin I the j)rodu('iiig popuiaiion so iiuudi in- creased, that the farmer would hustuin a twodold injury. There i", I believe, a necessity for urban populations, and no class of men hud a greater interest in tho extension of those, than farmers. PotroloiiiH Diitios. lioforo sitting down, T wish to make reference to a mnttcr with which my name has been a.^sociatcd in this lloiiso — that is, tho action of tho Govcrnmont on the petroleum duties. The late (iovornmont, in tix- ing the taritV of tho Dominion in 1H(J8, thought it wise to phico what seemed to ho a very high duty on oil — 15 cents por gallon, ■with 5 cents excise duty. I do not think that was objectod to at tho timo by any person in tho House; but some time Hubscquently, new and oxtensivo discoveries in oil were made, bettor means for extracting it wore also adoptc J, and tho price hud undergone a change since tho time the duty was imposed, and that duty, which hud f )rmorly been a very ftiir one, afterwards became a \Qvy onerous one. Whether the Government at that timo acted wisely or unwisely, 1 do not propose to discuss, but would merely state the fact. Inaction of Iho GoToruincnt in 1870. In 1870, I felt it my duty to propo-;o a reduction of tho duty on coal oil from 13 cents per gallon to 7i cents, leaving tho excise tax exactly as before. Tho pioposition, as made and explained by mo, was intendod to give protection of fiom 20 to 25 per cent, upon oil, according to tho current prices at that timo. It had been stated hv an honourable member, in reply to my remarks that thoro wu "^nother charge of a cent which ought to bo added. On calling at ti office of tho Inland Revenue, however, I found that my hon. Iriond was mistaken. Tho proposition to adjust the tariti' was made by me A ^ith a sincere desire to obtain results — not for any honour which might attach to myself. I desired that members supporting the Govornmont, should uso all their influence to have tho reduction quietly made, and offered to drop my resolution and leave the matter with them, if they could obtain the consent of the Government. I introduced my proposition to the House on the 3rd day of March, but I Icfc it alone till the 31st, a period of four weeks, in order that every member might have an opportunity of investigating the matter. 1 certainly did not bring it forward with any desire to ttmbftrrass the Government, or to plaoe th« Goveramant at a diiadvaa- 36 age; but 1 told them that thin high duty had had the effect of creating a ring who controlled all oil wollg and xcfinerios, and stcppctl between the producer and consumer ; who dictated what the price |ihould bo and compelled the consumer in Canada to pay just what American oil would cost, with the duty added. It was said by a gentleman on the other side of the House the other night that those who advocated a protective j)olicy were inconsistent, but the want of consistency, I fear, belongs to the other side. AVe who entertain protectionist principles hold that the ordinary effect of protection would not ultimately enhance the price of goodw to the consumer. And why ? Because, when an industry is protected, those engaged in that industry had an opportunity of making money, and the result was that others finding an industry to be a ])rotltable one would embark their capital thereiti ; thus, competition would regulate prices. In this way rings could not ba formed. AVhy is it tliat a ring can not be formed in the boot and shoo trade ? Because leather, which is the raw material from which boots and shoes are made is pro- curable everywhere ; consequently'' prices are reasonable. AVhy conld no( a ring be formed by those engaged in the manufacture of furniture ? Be- cause the material can bo got all over the land and because competition rdgulates the prices. It is indeed impossible to get up monopolies in such manufacturers as those of boots and shoes, furniture and agricultural implements. But if there was an exceptional industry to wliicli the pro- tective system did not safely apply, and which was monopolised by a ring, then protectionists would demand that protection bo reduced on tiiat industry to a point where competition Avould fairh' regulate prices ; to tolerate rings and monopolies is a blot, a stain on the national character, and protectionists are the first to decry it. Of all the indus- tries in Canada, the production and refining of oil is perhaps tho only one in which a monopolj'- is possible — and that is simply because tho area of production is limited, and may, by finesse, be brought under ono control. There was therefore no inconsistency in thoir urging the Government to make this reduction. The Government is responsible for the interests of the country, the guardianship of which is commit- ted to it. It is bound to repress injustice and rectify a])uses, and it was the duty of the Government, in that instance, to make the reduc- tion sought. I claimed that the country was suffering loss to the extent of 81,200,000 per year. I clearly demonstrated that by retaining the excise duty there would be no diminution of revenue in consequence of the change I proposed. My argument and proofs were incontrovertible ; no one attempted to deny a single position taken by mo except an hon. gentleman who spoke in the interest of the ring. The sentiment of the whole House was with me, and yet the Hon. Finance Minister, while admitting all I claimed, declined to act. And why? Because, forsooth, as he deigned to explain last year, it might have given rise to trouble — some motions. Mr. Cartwrlght admits $2,000,000 loss to the Couutry. Since ho has i*educed the duty and taken all tho credit of it. The Finance Minister asserts that tho country saves two million dollars per year by the reduction ! So it has como to this ! In order that this Government may not be disturbed, in order to prevent motions that might be tronblegome, they, with a majority of 60 in tho Houee, able o 7 lo open and shut iho door as Llioy please, refuse to lift a tinger, to waste a day, in order to save the country two millions of dollars, as they them- selves estimate. Bid they think tliat their devoted followers, who backed their refusal to take off the duty, would have hesitated to vote a reduction of the duty ? They could not waste a day of their precious time in order to save country from a loss which was equal to the entire cost of leijfisla- tion for the whole four years they had hccn in power. Five hundred thousand dollars a year about covers the cost of running both Houses of Parliament an entire session. Yet tliey could not waste a day of tiiat time to save the country two millions. Mr. CAETWRIGIIT— How mucii must have been lost by hon. gentlemen opposite ? Mr. ('OLBY — Some thiidc they can see all about the condition cf a country by looking at columns of figures ; but there are conditions working to the good or ill of the country which the Public Accounts and Trade Returns do not show. Crreat leakages and losses sometimes occur through the acts or omission of Governments, of which the Blue Book makes no mention. Blue books and statistical tables are not infallible. So much for the action or inaction of the Government in the session of 1870'. Legislature of 1S77, "Legalised Robbery." If they are satisfied with the course they took they arc quite welcome to all the comfort they can find in it. At a cost of $2,000,000, this government had taken a year's respite, in order to consider, as they said, and bring in a bill to meet the entire conditions of the case. They brought in a bill which embodied their own views. They were not tramelled by anything, but commenced de nov), and remodelled the whole thing. If r am rightly informed, the oil production of Canada is wholly within the constituencies of the Hon. the First Minister and the Hon. the Minister of the Interior, so they had all the knowledge necessary to guide them to the right conclusion the following- session. And what did they do ? — with all this knowledge, with this year's respite and leisure to frame an Act to meet the conditions of the case, purchased as they told them at a cost of $2,000,000 ? What was this bill ? It was a free trade bill Avhich imposed ujion this article a customs duty of from 50 to GO per cent., while no other article is protected more than lY^ per cent. This Free Trade Government put on this exceptioial article in this exceptional part of Canada — this article which was the only one which could be abused by rings and combinations — a duty of from 50 to GO per cent. AYhen they put on the duty of G cents a gallon, oil was Avorth 10 cents a gallon ; they swept away the whole excise duty and recouped the country by putting it on tea ; but to favour this industry, the only one which could be abused by protection, they levied a customs duty of from 50 to 60 per cent., making, according to their theory, the consumers of oil, which is ma<:le in Canada, pay, not to the Government bat to the manufacturer, six cents additional for every gallon, or an additioual profit of GO per cent. Was that legalized rob1)ery, or was it not ? In whose interest was that f)ei*petrated ? Mr. CAETWEIGHT — It was a revenue tax and a proper one. Fetrolenm Ring Re -organise. Mr. COLBY — When it was understood that the tax was to be taken »ff, thtre was no longer an oil ring until the Finance Minister dettrmiied I upon tho policy ho waste pursue, and thon tho organizers re-organized in Ontario, and an oil ring moro dangeroup, because more comprehensive than the old one, has grown up uuder the legislation they had passed in consonance with their Free Trade ideas. That was an illustration of the views of those gentlemen, and of their idea as to what a revenue taritfought to be. Did it put every dollar of* the revenue into the Treasury ? Did they not know that every gallon boughtof a Canadian refiner had paid him, not the Treasury, an additional hx cents? Did they not know that t\yo-thir{|H of the oil consumed is manufactured in Canada, and that every gallon paid Bix cents more than it ought to pay in consequence of tho policy of tho Government? If they are proud of their inaction in 1876 and of Ihoir legislation in 18T7, they are welcome to anj' e^atisfaction which they can derive from the conteniplaiion of it. So much for the oil question. Reciprocity with the United Slates. There is only one other subject to which I desire to allude. I should not bo doing justice to my own convictions of what my duty is in addressing tho House upon this question, if I did not make reference to the following proposition contained in the amendment: "And moving, as it ought to do, in the direction of Reciprocity of Tariffs with onr neighbors, so far as tho varied interests of Canada may demand, will greatly tend to procure for this country eventually, a reciprocity of trade." If every Other member of this House should go back on tho proposal contained in this amendment of tho right hon. member for King- ston, I certainly could not do so, without vory glaring incon- sistenc}*. On the first occasion that it was my privilege to address this Parliament as a new member, as early as 18t8, tho doctrine which is there announced was urged by mo upon the attention of tho Government of which that right hon. gentleman was then the head, and upon Parliament, for consideration. I urged that a duty of 5 cents a pound should bo placed upon hops. I pointed out that while tho American hop growor had free access to our market, the Canadian hop- grower had to moot a five cent duty in tho United States; and asked the House on every consideration of fair play to grant the imposi- tion of 5 cents a pound on hops. It is not done at that session, but it was at a subsequent session, and it is now on the Statute Book. I know something about the Americans, have lived among them a gootl deal, was educated among them, aiid have always lived near them. I, at that time, e.\prest>od my settled bclii'f, though it had not then the weight with tho leader of the Goverrim.ont that I had hoped it would have, that just so long as we were prepared to permit this unequal system by which we were excluded from the American markets, while the Americans had access to ours, they would consider it better than reciprocity and would not give us reciprocity. That was the view I then took and still hold, and I then made use of the expression which had been so much lauded and so much abused — '• reciprocity of tariffs, if not reciprocit}'' in trade." I believe the re.isons I then urged were sound. I believe one need only know tho American character, their shrewdness, their practical way of treating su«-.h sub- jects, to be convinced that so long as they have freo access to our markets, and we are excluded from theirs, they will consider that they have the best of the bargain. I desire to draw attention to one thought which seems to me to boar strongly on this question. Reciprocal Dallei ar« defoneo-notRttaliAtlan. X know tho idea that we can coerce the Amopicans, that four millions of people can coerce 40 millions, is often sneered at, and likened "to tho tail wagging tho dog." Tho Americans had found it necessary for tho u.aintuinenco of their credit to put on high duties. That imposes upon us a corresponding necessity to piotoct our manufucturora and farmei's, eo long as thiss unfortunate state of things exists on tho other eldo. Thero is no necessity for irritation. It will not bo considered a retaliatory policy. I think it might safei, lie said that to two-thirds, or three-fourths, of the people of tho lj..itcd States, this question of reciprocity is today a matter of total inditference. If we went below the northern tier of States, probably if wo went to the Middle States, certainly if wo went to the S)uthern, tho Soulhwestern, or tho Pacific States, if wo aslod any man except a public man, what were tho relations between Canada and the United States, he could not tell whether reciprocity or unequal tariff existed. It does not afreet tho mass of tho people of the United States, who are neutral in regard to this matter. But wo have active interests working against us in tho States of Maine, Vermont and Xow York, in those sections along our frontier whoso interests are agricultural, and who would be injured if our butter, beef, wool, horses, potatoe."), &c., went to their markets. On that account they are intensely hostile to reciprocity. They want to keep Nova Scotia potatoes and Prince Edward Island oat- out of the Boston market, and Eastern town- ships beef out of the the Brighton market. They desire to keep up the monopoly of tho home market, which alone makes agriculture possible in ban en New Enjrland. That active influence working upon the inert and indifferent mass of tho nation is what we have to contend against. Wc have to countervail that influence, wo have to create an in- fluence against that. Does the House believe that bO long as it could be shown that year b}' year we are taking more and more of their manu- factured products, the manufacturers of New England are going to join us in the desire for a renewal of reciprocity, when it is shown that from 1873 to 1877, while prices had fallen, while imports from England had fallen, the only thing that had increased had been the amount of manulactured goods which wo bought fr<»ni the States — an increase of some 30 percent.? Does tho House believe that under that state of things wo will get their co-operation ? Let them, however, feel themselves excluded and embarrassed in getting to that market which they had heretofore used as their own market, and then wo would find that they liave a little feeling in favor of reciprocity. So long as tho Americans continue to possess all the advantages they now enjoy, they will not give us reciprocity of trade. Tho sound and poliiic course then, to adopt, is. to put up our duties to whore they were before the lleciprocily Treaty was fiaiucd ; to put ourselves back to where wo woio then, to place ourselves in a position whore wo can pinch some classes in the United States and deprive them of some of tho'^ advantages which tliey now so freely enjoy. I thank the Houae for the indulgence extended to me, and beg to apologize for this abrupt termination ol my ("Speech, a circumstance which is due to tho latenosa of the hour. [The honorable gentleman resumed bis seat amid pro- longed applause.] THE VOTE. The followin',' Momi)Crs voted FOU the Amendment : — Yeas : . Messieurs -Baby, Flesher, JMousseau, Benoil, Fraser, Orton, Blanchct, (libbs (Ontario North), Ouiraet, Bolduc, (ribbs, (Ontario South'), Palmer, Bouil)Gau, dill, ' . Pinsonneaull, Bowell, Ilaggart, . \ ' Piatt, Brooks, JIarwood, Plumb, Brown, llurtoau, . . Pope, (Compton), Bunster, Jones, (Leeds), Vo^e, (Queens, P. EJ.) Cameron, Kirkpatrick, Eobillard, Caron, Langevin, Robinson, " ' Ciraon, Lanthier, llobitaille, Colby, Little, Eochestei', Costi^an, Macdonaltl (Cornivall) Eouleau, Coupal, Macdonald (Kingston), Roy, Currier, McDonald (Caj^e Breton) , llyan, Cuthbert, McDougall (Three Rivers), , Schultz, Daoust, 3IcKay (Colchester), Short, DeCosmos, Macmillan, Stephenson, Desjardins, McCallum, Thompson (Cariboo), Devvdncj', McCarthy, T upper. Domville, McQuade, AYade, Donahue, Masson, AVallace (Norfolk), Bugas, Mcthot, Wright (Ottawa), Farrow, Mouteith, Wright (Pontiac).—Ti Ferguson, Montplaisii', The following Members voted AGAINST the Nays : Meesiours ! Amendment : — Appleby) Fleuiiug) Mclutyre) Archibald, Flynu) HIcTaaaC) Aylmcry ForbcS) McNab, 41 Daln, BartliC} Bechard) Bemlerf Bertram} Blggar) Blain, Bordeii) Borroii) Bonraaaa^ Bofvman) Boyery Bronsef Bnelli Bnrk, Bnrpee (Sti John)) Biu-pce (Simbiiry)} Carmichaely Cartivright) Casey} Caagralii) Charltoiif Cheval) Chrlatle, Church) Coekbiuii) Cotntkf Cook) DavIeS) Da^vaou) Dc St. GeorgcSf DeV^ber) Dymoiul) Ferriay Flaet, KATg: MeisUari. Frechette) Galbralth) OeoA-lonf GIbaoii) onut», OUIaior) GondgC) Greenway) Gnthrle) HaddoiT) Ilagar) Hall) Hlglnbothaiii) lloltoii) llortou) Huntlngtoii) Irving) Jotte) Jonea (Halifax}) Kerr) KiUaiU) Kirk) Laflamme) liaJoiO) Iianderkiii) Langlola) Lanrlcr) - Macdonald (Toronto) * BlacDonnell (Inverness]) Macdougall (Blgin)) HIcDougall (Renfreiv)) AfacKay (Cape Breton}) MackcnEle) MoCraney) McGregor) Maloiibi) Metcalfe) MillS) NorrlS) Oliver) PatersoH) Perry) PetteS) Fickard) ~ « Poullot) * Power) Ray) Richard) RoscoC) Ross (Durham)) Ross (Middlesex)) Ross (Prince EdMaid)) R ymal) Scatcherd) Scriver) Shibley) Sinclair) Skinner) Smith (Peel)) Smith (Westmoreland)) Snider) St. JeaU) TasehereaU) Thonipaon (Haldimand)) Thompson (AVclIand)) Tro'iV) W^allacc (Albert)) IVood) TeO) Young.— 114, The following members "paired " : — For Amendment :— Againit Amendment :— White (Bonfrew), Hon. P. Mitchell, White (Hastings). Delorme (St Hyacinthe), D. A. Smith (Selkirk), Hon. B. Blako (S. Bruce). 42 Th« following mtmbers wero absent: — Ontario : Messrs. Blako, J. Whito, P. White, .Tun., R. Blackburn 4 Quebec : Messrs. McGreovy, Workmtin, Devlin, L. Dolorme 4 Nova Scotia : Mr. C. Campbell 1 Manitoba : Messrs. Smith, Banalyno 2 New Brunswick : H»n. P. Mitchell, Mr. McLcod, lion. T. Anglin (Speaker, no vote) 3 British Columbia: Mr. Cunninocham 1 SUMMAEY. For. Against Ontario 28 56 Quebec 35 26 Nova Scotia 4 16 New Brunswick 3 10 British Columbia 4 1 Manitoba 2 Prince Edward Island 1 6 Ti 114 Government majority 37 1ft . , , MAJOEITIES BY PEOVINCES :~ Against. Foi'. ' Ontario 28 maj. • <. Quebec 9 .<•/,,* Nova Scotia 12 " , ,. New Brunswick T " British Columbia 3 Manitoba 2 Prince Edward Island 4 " Mr. McGreevy, M.P., for Quebec West, was in favor ot the Amend- ment ; but his " pair" lapsed before the vote was taken. Messrs. Devlin and Workman, of Montreal, were absent — the great Commercial City of Montreal being thus virtually unrepresented — Mr. Jette, M.P., for the Eastern Division, voting against the Amendment. Messrs. Wood and Irving, of the great Manufacturing City of Hamilton, also voted against the Amendment, 43 Tlio National policy, as proclaimed by Sir John A. Macdonald (t) — New party issues in Canada (8) — Nature of Sir John A. Macdonald's motion (8)— Revenue not the flolo object of a tariif (9) — National policy, as defined by Mr. Charlton in 18*70 (9) — Ministerial policy, Free Trade declared to be the policy of the "Reform" Party, by Mr. Dymond in 18*76 (11) — The Free Trade corner-stone of the Premier, and his declara- tion of the evils of Protection (12) — Bonjamin Franklin's remarks on the necessity of Protection in a young country (12) — The Premier's assump- tions historically untrue (13) — History of Protection and its results :n England and France (13) — Statistics of the sugar industry in Europe? statement of 3Ir. J. R. McCuUoch (14) — Manufacture of boots and shoes in Canada, its successful growth- under protection (10) — The Premier's present attitude and past history (17) — The Canadian Public Works pol- icy virtually protective (17) — Incidental protection declared by the Finance Minister to bo "legalised robbery" (18) — John Stuart Mill's defi- nition of incidental protection (18) — His views endorsed by the Finance Afinister (18) — Free trade is still but a theory (20) — Froo Trade in England ia protection in disguise (20) — Proi ective policy fosters Ui^nu- factures and commerce (21) — The first Free Trade Act in England, 1842 (22) — In 1853, Mr. Gladstone refused to reduce silk duties (22) — Mr. Charlton's change of opinions since 1876 (23) — His special plead- ing and arguments respecting United States refuted (24) — Mr. John Macdonald on Canadian depression (26) — Governor Rice upon the indus- tries of Massachusetts (27)— Mr. Charlton'g statistics valueless (28) — Professor Cairnes' comments on protection in U. S. (28) — Mr. < arlton's unfairness respecting Canadian industries (29) — Agricultural implements, no competition from XJ. S. manufacturers, their home demand exceeding supply (29) — Protection the preservation of home market for home manufactures (30) — History of protection in the U. S., North and South, cotton and sugar interests, why the Southern States favor Free Trade (31) — Comparison with Canadian situation, " King Cotton " and " King Wheat" (33)— The prosperous manufactures of the North beneficial to the whole Republic (33) — The policy of New England the true policy for Canada (34)— The farmers of Ontario, future competition of the North- West (34) — The Finance Minister's opposition to growth of cities (34) — Growing cities enhance the value of farming districts (35) — Coal oil, refusal of Government to reduce duty in 1876 (35)— Lobs of 82,000,000 to the country (36) — Legislation of 1877, legalised robbery (37)— Petroleum rings reorganized (37) — Remarks on Reciprocity, defense not retaliation, Reciprocal trade or Reciprocal, tariff (38—9.) INDEX AenrcDLTCRi : — In United States — Mr. Charlton refuted,. . . . , , 25 Implements of — No competition from U. 8. manufacturers, from excess of their home demand 29 Ontario^Future competition of North-west , 34 Growth of cities enhances value of farming districts , 35 But SuaAU : — History of the industry in Europe U Boots and Shois : — Manufacture, growth in Canada under protcctiom 10 Cairnks, Prof. :— Comments on protection in U. S , 28 Canada's PoMOY : — ' Should be prisent New England policy 34 Cartwright, Ho;f. Mr. : — See " Finance Minister," CiiARLTOX, Mr., M. p. : — National policy, as defined in 187« 9 Change of opinions since 1876 23 His special pleading refuted 24 Arguments respecting V. 8 . fallacious 25 His statistics proved to be valueless 28 His unfairness respecting Canadian industries 29 CiTucs : — Growth of enhances value of farming districts , 35 Coal Oil: — See "Oil" Colby, Mb., M. P. :— Letter to Editor of "Citiaen," 1 Speech on Sir John A. Macdonald's amendment , , 7 Cotton :— Interests in the Southern States , , 31 " King Cotton " and « Kiag Wheat " 33 Cl'stous: — Sm «« Tariff" 45 » Dtmoxd, Mr., M. P. :— Declaration of Free Trado Policy, 1876 11 I England : — History of Protection in 13 Free Trade in, iu virtually protection 20 Excise : — • J. Stuart Mill on customs and excise 19 Duty on coal oil, 18C8, 18T0, 1877 35-7 Fahms: — See " Agriculture " FiNANCK MiNISTEB : — Incidental protection deiined as " legalised robbery " 18 Endorses views of Jolm Stuart Mill 18 Ills opposition to the growth of cities 34 Refuses reduction of coal oil duty, 1876 35 Admits $2,000,000 loss to the country 30 Legislation of 1877, legalised robbery 37 4 FuANCB : — Results of protection in 13 Statistics of Sugar Manufacture 14 Franklin, B. : — . , Necessity of protection in a young country 12 Free Trade : — Declared the Reform policy, (Dymond, 1876) 11 The Premier's corner stone 12 Is still but a theory 20 lu England, is protection in disguise , 20 In England, first Free Trade Act, in 1842 22 Why the Southern States favor it 32 Views of Mr. Qarnett, of Virginia 3 <> Garnett, Mr. : — Of Virginia, his views on Free Trade 32 Gladstone, Mb. : — Refusal to remove silk duties in 1853 22 Government :— See " Finance Minister " and " Premier " Implements : — Agricultural, U. S. manufacturers do not compete with Canadian. Reason . . 29 McCuLLOOH, J. R.: — Statistics of sugar industry in Europe 14 Production of cotton and sugar by slave labor 32 Macdonald, Sn Joh> A . :— . Tariff amendment resolution, 1878 7 Tariff amendment— natur* of. t 46 llACDOMALD, JoHir, M. p.;— His reasons for depression in CAnnda 20 Maciinzii, Hon. A.:— Sec •« Premier." MAMUrACTDRKS :— > Of Massachusetts, Oovornor Rice on 27 Of agricultural implcmentB, Canadian, no competition from U. S 29 U. 8., success beneficial to whole Republic -JS Of oil, formation of "Rings." 30 Ordinary manufactures, " Rings " ijnpossiblc , . , 30 Massachusctts :— Governor Rice's report on industries of . , , , , 27 Mill, J. Stuart ; — Definition of incidental protection 18 Views on Excise and Customs Revenue , ] National : — Policy— See " Policy." ' Oil, Coal : — Duties — Action of late Government — Comments , . . 35 Refusal of Government to reduce duty in 1876 35 Facilities for formation of oil " rings " 36 Loss of $2,000,000 to the country 36 Legislation of 1877, legalized robbery 37 Petroleum, " rings " now re-organised 37 Ontario; — • Farmer's— future competition of North-west , 34 Party Issues : — New, in Canada • • • • 8 Pktrolkum : — See « Oil " PoLicv, National : — Of Sir John Macdonald 7 Defined by Mr. Charlton in 1870 9 Policy, Hinistibial — As defined by Mr. Dymond in 1876 11 Policy, N«w Enoland : — The true policy for Canada . . 34 Policy, Rkoifrocity :— Reciprocal Ti'ade or Reciprocal Tariff 38 Prkuibr, Tbi :— The Free Trade corner stone of l2 His oflBumptions historically untrue 1 3 Hi« present attitude and past history , , l7 47 pROTiOTioir : — TnrifT, Sir John Mncdnnftld'g motion 7 KvilH of, n8 declared by the Premier 12 Nccosity of, in a yoimg country (Franklin) 12 Of the sugar industry in Europe 14 Of boot nnd shoe manufacture in Canada 10 Public Works, policy is protective 17 Policy of, fosters manufactures and commerce .... 21 1842, the flrst English Free Trade Act 22 1853, Olndstono still protected silk interest 22 In United States, Prof, Cairncs's comments ••• 28 Is preserving homo market for homo manufacturer 30 Results of, in United States, North and South 31 POBLIO WOHKB : — Canadian, policy of^ is protective * 17 Rbciprocitt : — With U. S., remarks respecting , 38 Reciprocal Trade or Reciprocal Tariff 38 Reciprocal duties arc not retaliation , 39 Revxnuk :^ Not the sole object of tariff 9 Rick, Govibkor : — Report on industries of Massachusetts 27 Shoes and Boots :— Manufecture, success in Canada, under protection 16 StjaAR, Bott : — History of the Industry in Europe 14 Sugar Ihtirbbt : — In the Southern States 31 TAriFF : — Readjustment — Sir John A. MacdonaKl's motion 7 Nature of the motion , 8 Oil, action of late Government, comments 35 Oil, Gtovt. refuse to reduce, jn 1876 35 Legislation of 1877, legalized robbery 37 Reciprocal, is defense, not retaliation , 38 Unitbo States: — Mr. Charlton's arguments respecting, refuted 25 Gov. Rice upon Massachusetts industries « 27 Protection in, comments on 28 Agricultural implement manufacturers do not compete with Canadian 29 Protection and Free Trade, North and South :; ! " King Cotton » and " King Wheat," 33 New England policy true policy for Canada , 34 Reciprocity with, in Trade or in Tariff 38 Reciprocity, U. S. have no desire, while unequal tariffs favor them 39 Wheat : — " King Cotton" and King Wheat," * 33 NO ONE SHOULD BE WITHOUT IT ! THE PARlIAMiTARV Price, SI. 50. H'hat the Pvess Says : The Parllnmentury Conipftnion Is tin indispcnHublo viuU viecum for everj stiulont of Ciinndimi politics. — Toronto Globe. More useful than ever as u liandbook of rcforencc— /,o«'/o« AdL'trtiier. It is far superior to the fild Companion in the extent of its information. — Kingston Whir/. No man who wishes to have a correct knowledge of public men and public proceeding, can do so, _ thoroughly, without a copy of thia ' invaluable work. 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