House of Commons ® abates FOURTH SESSION-SEVENTH PARLIAMENT SPEECH OF DR. R W. BORDEN, MR ON THE BUDGET OTTAWA, FRIDAY, 6th APRIL, 1894 Mr. BORDEN. The hon. gentleman began his speech by chiding the hon. member for Queen's (Mr. Davies), for having failed to discuss the question before the House, the Budget brought down by the hon. Finance Minister. I appeal to you, Mr. Speaker, and to this House whether the hon. Minister of Marine has set hon. members who may come after him the good example of having himself followed the course which he said should have been followed by the hon. member for Queen's (Mr. Davies). That hon. gentleman certainly discussed the public questions of the country and those bearing on the tariff and the trade relations of the country fully, so far as they affect us in our relations with other countries. Every- body knows that when the Budget is under discussion the fullest liberty is accorded to every hon. member to discuss the condition of the country and its trade relations with other counftries. This is the first time I have ever known a serious question of this kind to be approached with a scrap-book of I extracts, cut out from speeches made ten i or fifteen yv^ars ago, and extracts from par- tisan newspapers, which it was \iseless for ' my hon. friend to contradict, though he did so over and over again, be«i\ise no sooner would he contradict the truth of an extract than the Minister proceeded to re-read I the same extract or to , quote an- i other extract from the same paper. The speech of the hon. Minister reminded I me of a story. He has treated the House i to several stories, and perhaps the House j will suffer me also to tell a story which, I : think, illustrates the manner of the Minis- I ter's speech. Once upon a time, in a coun- j try where there was a poor congregation- it could not nave been in Canada, it must I have been In free trade England, and I ; think it was— the congregation was in want of a new set of hymn books. The old hymn books weare worn out, and an enterprising member of the congregation had somewhere read an advertisement by a vendor of patent medicines, to the effect that he would sup- ply free bj.^" h"ok<« to any congregation provided that he vvould have an opportunity of inserting here and there an advertise- ment of his nostrums. The congregation was made happy and adopted the scheme, and on the eve of Christmas Day they were furnished with brand new hymn booiss, and on the next morning when the service began, the clergyman pointed to them with pride, took up the new hymn booli and said it was unnecessary to read the hymn, as it was known to every member of the cou- gi'egation. The congregation stood up and began to sing, never having examined the books they were to sing from, and this is what tliey sang : Harlj tlie herald angels singi Beechain's Pills are just the thing Peace on earth anntlemen opposite to charge this party with having no policy ; but I fancy that that charge will scarcely be made again, because it is owing to the fact that the Liberal party of Canada have a policy, and that that policy is commend- ing itself to the people of Canada, that we are here to-day to consider the resolutions which the hon. Minister of Finance has been forced to bring down in deference to the public opinion which has been created by the Liberal party. But the hon. gentleman has charged us with inconsistency. He says on one occasion we are in favour of xm- restricted reciprocity, on another in favour of commercial union, on another it is a revenue tariff, and on another something else. Well, Sir, I have been a member of this House most of the time for twenty years, and during that time I have followed very closely the debates in this Chamber and have read very carefully the statements of public men with reference to the policies of the two parties, and I do not think it lies in the mouths of hon. gentlemen opposite to charge the Liberal party of Canada with inconsistency or with any material varia- tion in their policy from the time they be- came a party since confederation down to the present moment. What was the posi- tion of the Liberal party in 1874 ? Its policy then was its policy of to-day— that the taxation of the people of Canada should be for revenue only, or for revenue chiefly ; that it is wrong to take one dollar of taxes out of the pockets of the people more than is required to carry on the government of the country. That has been the main plank in the platform of the Liberal party from 1874 down to the present time. With refer- ence to reciprocity, it was the policy of the Liberal party in 1874 to obtain reciprocity if possible ; and, as the hon. Minister has shown, the late Hon. Oeorge Brown was sent to Washington for the purpose of en- deavouring to negotiate a treaty of recipro- city. But the hon. gentleman says that the I.iiberal party have failed, and that after having failed they did not make any further attempt to obtain a reciprocity treaty, but had taken the independent position which tho Government are now taking, and which he commends, of trying to buJd up the trade of Canada independently of trade with the Un'ted States. That is true. Nevertheless, efforts were made to ob- tain that reciprocity, and the hon. Min- ister and the House must bear in mind that the Hon. George Brown went to Wash- ington at a time when the people of the United Sta/tes were irritated against the peo- ple of Canada in respect of matters whicli had grown out of the war that had closed I only a few years before. That irritation for-^ tunately, has passed away, and an entirely different condition of things exists now, and has existed since the time the first offer of re- ciprocity was made by the Goverument now in power — or the pretended offer which was made in 1891. But, I say that the policy of the Liberal party has been mainly revenue tariff, though there have been ttaies when the policy of reciprocity, which was always the poUcy of the Liberal party, which is their policy to-day, has been put forward more boldly and more prominently than at other times ; and why should that not be so? In 1888, 11- hoc. member for South Oxford (Sir Rit^ ^irtwright) moved cer- tain resolutions House, and the mo- ment was oppor >r him to do so, and why ? Because .- larles Tupper had re- ceived a letter fro Ir. Bayard, then Sec- retary of State of th. United States, offering to give this country a reciprocity treaty. That was a favourable moment for any party in Canada to give to the Canadian people the opporttmity of expressing their opinion on the question of reciprocity, and it was at that moment that the Liberal party placed their policy of reciprocity more prominently be- fore the people. But the attempt has been made to fasten upon this party a policy which they " have never entertained as a party— the policy of commercial union with the Un'ted States. No matter how many / contradictious are made, no matter how often gentlemen who have been charged with having expressed themselves In favour of commercial union deny the charge, back como the old quotations. It seems to be essential to the arguments of hon. gentle- men opposite to misrepresent their oppon- ents, and if possible to place them in an improper light before the country. The hou. gentleman knows— he must know, be- cause he has been in Parliament dm'iug the whole time that this discussion has gone on--that never, by any resolution, or by any speech of any of the acknowledged lead- ers of the Liy ivsd party in this House, has the doctrine of commercial union been put forth as a part of the policy of the Liberal party of Canada. I am surprised that the hon. gentleman shoula be so persistent in making these charges. Does he not know that the late chieftain of the Conservative party, Sir John Macdonald, was prepared to enter into an arrang* ^ent for commercial union with the United fe.ates in 1869 V That la a matter of history. That was perfectly proper, perfectly loyal on his part ; but if any member of the Liberal pai'ty, speak- ing, not for the Liberal party, but for him- self, happens to have made an observation that commercial union would be a good tJiing for this country, then at once the party Is chargetl with disloyalty. I do not tliink lliat it lies in the mouth of hon. gentlemen opposite to charge' the Liberal party with inconsistency with reference to its policy. But whac shall we say of the hon. gent'emen opposite ? I have just told you, that in 1809 the gi'eat leader of the Conserv- tive party of that day was prepared to go to Washington and arrange for a common taiiff between the 'wo countries. That is a matter of history. I remember well sitting in this House in 1876, and hearing Sir Charles Tup- per, when the lion, member, for outh Oxford had increased his tariff from l-« to 17% per cent, in oi*der to meet the obligations which had been left upon this country by lion, gen- tlemen opposite before tlicy went out of office— I remember well Sir Charles Tupper then charging the hon. member for South Ox- ford with entering the thin edge of the wedge of protection. And this is the consistent party ! Commercial union in 1869, a charge against the liberal party of entertng the thin edge of protection in 1876— and wh.nt happen- ed in 1878 ? Because tlie hard times which ex- isted, all ov2r the world, were acutely felt in Canada, as elsewhere, hon. gentlemen oppo- site saw an opportunity of taking advantage of their opponents and putting the Govern- ment out of power. And. althougli their financial critic of tliat day (Sir Charles Tup- per) came down with a speech prepared to denoimce the Mackenzie Government for in- creasing the tariff, at the importunate re- quests of the manufacturers— because he sup- posed the hon. member for Soutli Oxford (Sir Richard Cartwright) was going to adopt that policy, yet, when he found that the Lib- eral party remained true to their pr'nciplea, he turued round and denounced thorn for not having increased tlie tariff ; and it was then that the yoUcy of protection was adopted by the hon. gentlemen. But, in adopting that policy, they did so very carefully and ginger- ly. What was the resolution moved by hon. gentlemen opposite prior to the elections of 1878 ? It was : That this policy, called the National Policy, of imposing higher rates of duties should be adopted— for what purpose ? Fur the pm-pose of protection ? Not entire- ly—but for the purpose of forcing the United States to come to our terms and make a re- ciprocity treaty with us. TLey dared not go to the covmtry at that time upon any plat- form which did not include reciprocity. But they went to the country and carried the election ; and in 1882 they became bolder. But when they came to the Maritime Provin- ces, even in 1882, we find Sir Charles Tupper telling the people of Prince Edward Island, at Charlottetown, knowing how anxious tney as well as the other Maritime Provinces were to have reciprocity—" Stick to us and our policy of high tariffs, and in two years, 1 promise you, you shall have what you want, reciprocity with the United States." The elections of 1887 then came. Their policy still was the National Policy, but in the Mar- itime Provinces there was a good spice of re- ciprocity thrown ?n, for the Government dar- ed not go down there without s.^ime promise of reciprocity. And then we come on to the elections of 1891. What happened ? Where was the National Policy then ? The hon. gentlemen came down and told the country, that they had an offer of reciprocity from the United States and wanted a new House, com- posed of new men, to consider this question. We are a moribund House, they said, and we want a new House to take up this new boon of reciprocity which we will obtain for you. And these are the hon. gentlemen who charge the Liberal party with inconsist- ency ! It you can find any more sudden turns, any more variegated policy, in the short space of twenty years, I would like to know where. You certainly cannot liml it in the record of the Liberal party. Now. I would like, if time permitted, to discuss a little more fuUy what has happened. I have got up now to the year 1891, and it is just as well that we should refresh our memories as to what happen .d in that memorable year. We were all more or less taken by siu-prise at the sud- den appeal to the country tlien. But we were certainly taken more by surprise at the ques- tion upon which the appeal was made. Why was that appeal made at that time ? Why, because the gentlemen opposite, wise in their day and generation, saw that the policy which the Liberal party had put forward in 1888 was becoming popular and carrying the coun- try. They saw us and went one better. They said : We wiU get the start of the Lib- erals and go to the country ; we will go on reciprocity ; we will take the wind out of their sails. And how did they do it ? They did it by an outrageous abuse of their au- thority. They did it by misrepresentation of the grossest kind. They put forward the statement that the United States had made au offer of reciprocity to tliis country. They said : .*Sir .Joliii Macdonald's Government not lonj{ ago made a definite proposal to the Wasliiiigton authori- ties for a settlement of all existing differences be- tween tlie two countries on a basis of an extension of the trade Ijetween the two countries- It involves partial reciprocity, the enumerated articles to include quite a nunil«;r of natural products, Imt the proposition discards any idea of conmiercial union or unrestricted reciprocity. Moreover, these jjrn- pof itions were invited and suggested by the Wash- ington authorities. Commissioners from Canada and (jJreat Britain will start for Washington on 4th March, on the opening of the new Congress. The result of the Canadian elections will be known on ()th March, the day the commissioners reach Wash- ington. In order that this Commission may have no uucertain sound, Sir John :»Iucdoiiald has decided to appeal to the country and ask for judgment on these proposals of his to the Wash- ington authorities. He does not want the endorsa- tion of a Parliament in its last session, but the freshly expressed opinion of the people of Canada, and for tliis reason lie has ad\ised a dissolution. But it turned out laier on that, instead Of the invitation or the suggestion coaling from Washington, it came from Ottawa, and that Sir Julian Pauncefote was requested by the Ottawa GoTenun(?nt to sound the Ad- ministration at Washington, In order to see whether it would be prepared to consider a reciprocity treaty between the United States and this country. And we find, more thiin that. Sir, that what was agreed to — and it was agreed to on 2nd January, 1891— between Blaine jn ore side and Sir Julian Pauncefote on the other, was, not that any ti'eatj- should be consider- ed, but that Mr. Blaine should receive re- presentatives from the Government at Ot- tawa, and privately discuss the question of whether a basis could be laid down for an agreement of a r-^ciprocity tretity. And this was the ground upon which the hon. gen- tleman, as it tu''.!'.^! cut, went to the country in 1891. But, Sir. we come now to the present time. Is this a change of policy, or is this the same policy ? At any rate we have a very seriotis departure from the tariff which we have been told here, year in and year out, was simijly the acme of per- fection. And even now the Minister of Finance spent two hours and a half of the time occupied by his Budget speech in prov- ing the absolute perfection of the National Policy, and then he spent two hours and a half in showing how completely he could tear it to pieces. Now, Sir, to return to some of the observations which the hon. Minister has made in his criticisms of my hon. friend from Prince El ward Island (Mr. Davies). He stated that that hon. gentle- man had made a speech in which he had de- clared that the manufactiu'ers were losing money, and that he made another speech In whioh he said that they were making large sums of money, and the hon. Minister claimed that these two speeches were in- consistent. I have not read the speech of the hon. gentleman from Prince Edward Island (Mr. Davies), but, so far as I could gather from the remarks of the hon. Minis- ter, it was a speech made in 1885. In that speech, as I uiiden^tand it, the hon. gentle- man statwl that tliere were three stagos in the history of manufactures imder protec- tion. Beginning under the stimulus of the protective system, there would be erhanced pri-ces and profitable returns. Then came over-production, and then it was that those eugage any proposal to in- clude miuiufiLctures. That policy is carried out now in tills vei^ tariff reform which the Minister of Finance has presenetd to this House. What do we find? We find in that an offer of reciprocity in certain natiu-al products, but when it comes to anything like a manul'actiu*ed article, when it comes to agricvdtm'al implements, in respect of which the United States are making an offer of reciprocity to this country, we find the hon. gentlemen turning their faces the other way, and utterly refusing to co-operate with the United States. We may lay it down as their fixed poUc.v that they will not make a ti-eaty with the United States which in- cludes manufact'U'ed articles, knowing full well, as they do, and as their old leader. Sir John A. Macdonald, frequently stated in this House, and cut of it that it is impos- sible to get from the United States a treaty which does not include manufactiu'ed articles. Consequently I say it is fair to assume from the hon. gentleman's conduct, no matter what thf>y may say with their lips; that they are apposed to the policy of reciprocity I am sorry that the hon. mem- ber for Kent, N.B. (Mr. Mclnemey), is not in his place, because I think it would be a comfort to him to hear these words of mine. That hon. gentleman spoke some minutes the other night in proving to his satisfaction that this Gove-nment had done everything In their power to obtain reciprocity for this country; and then he spent about the same length of time, or more, in proving to his satisfaction that reciprocity would be an un- mixed evil to this country. Yet the hon. gentleman has left the Liberal party— or at any rate he is no longer an Independent— and he is going to support the Government of hon. gentlemen opposite because they want to do a thing which he has said is the greatest evil that could happen to this coun- try. Sir, I tliink almost the only article of the tariff to which the hon. Minister refers, is the article of coal oil, and in that he thought he saw an opportunity to make an attack npon the Liberal party. He said that the ' Liberal party was responsible for the present condition of the coal oil question. Now, Mr. Speaker, let me give you the facts with re- ference to coal oil. Before 1877 there was a customs duty of 15 cents pe- gallon and an excise duty on petroleum. In 1877 Mr I ^Mackenzie reduced the customs duty to 6 [ cents pf»p gallon, a reduction of !» cents, and I took off the excise dtity. At that time I the same qu.ality of American oil. which is now imported, was selUu'-' at 20 cents : per gallon. When this change was made I in the interest of the people of Cannda. ' there was a reduction of from 15 cents down I to 5, a reduction of from 90 per cent 1 down to 30 per cent upon American coal I oil. What is the case to-day? The duty upon the same quality of oil comiii;: into Oiinada to-day is tbout 130 per cent, in some cases more. In some cases less, but In no case less than 100 per cent. But how does this operate? It operates with special hardship upon the people of the Maritime Provinces. The people of the Maritime Pro- vinces, let me tell the Minister, if he doea not know it, buy and import from the Unite8 to 1877, increased 130 per | cent, or 14i^ peir cent per year, and under | the 15 years of the protective policy, from 1879 to 1894, the deposits in the charttTed banks increased 165 per cent, or 11 per cent per year, Ju.st 3% per cent loss than dm-lng the period of the revenue tariff. I find that life insurance increased in volume from 1872 to 1877— the hon. member for South Oxford (Sir Rlchaiti Cartwrlght) did not go back further thfin 1872, but these are the flgm*es quoi,xxi by the Controller of Customs —Increased 240 per cent during these 5 years, or ;an average of 48 per cent per annum, while under the 15 years of the National Policy, from 1879 to 1894, life in- sm-ance increased 300 per cent, or 20 per cent per year, less than half the increase imder the revenue tarilf period. I find that tlie savings btinks deposits increased in the 9 years of revenue tariff from 18r>8 to 1877, 400 per oant, or 44 and 4-lOths per cent per year ; but under the 14 years of the National Policy period, from 1879 to 1893, they only increasetl 350 per cent, or 25 per cent per annum, as against 44 and 4-lOths per cent per annum under the revenue tariff period. The Junior member for St. John (Mr. Hazfn) referring to the rate of taxation on tlio p(;ople of this country says that in 1878 it was $4.37 per head, and that in 1892 it was $5.81 per head, an increase, he says, of " only " $1.44 per head, or $7.uO per family per year, and the hon. gentleman seems to tliink that this Is a very trifling increase ! Well, Sir, we woidd not think so veiy much of that increase were it not for the circum- stances attending it. All of the $4.37 per head of taxation in 1S78 under a rev- enue tariff policy, went into the trea- sury, and it was expended for the benefit of oiu: people ; but what happens under the policy of 1892, when the rate of taxation is aUege-d to be $5.81 per head ? We have in the latter year a policy stated to be ex- pressly for the protection of the industries of this country, and which by the admis- sions of the Finance Minister, now increases the prices of the home products to the con- sumers. The $5.81 taxation in 1892 does not represent one-half of the tux which is taken oat of the pockets of the people imder the National Policy. That tax of $5.81 went into the treasury, but what is the amount of the tax that went out of the pockets of the consumers and into the pockets of the gentlemen who are manufacturing for the consumers ? It was at least double that amount, so that for every $5 of taxation, which goes into the treasury, $10 are given to emich manufacturers at the expense of somelx)dy else. That is the protective principle. The Grovernment now propose to adhere to this policy of protection, but I' w B 2 they are going to retluce the revenue. The Minister of Finance stated— although he waa contradicted by the Minister of Marine— that they were going to retluco the revenue, and therefore they coidd not aftonl, and did not Intend to proceple and In favour of the classes, legis- lation whit ; . according to the Minister of Finance', is a policy of d» velopnient. The Minister e of everything you have to consume. And now they go back upon themselves in one short year, and propose to reduce these very taxes which have been so benefiting the people. When were these gentlemen right and when wrong? Are they right now? Then, what arrant humbugs have they been from 1878 down to the present time, in going before the people and telling them that theh* high taxation poUcy has had the effect of cheap- ening goods. Let them take whichever horn of the dilemma they like. But they say the circumstances are changfed, changed circum- stances are their exciise for reducinr; this tariff. How have the circumstances changed since last year? Wherein has been this ex- traordinary change of circumstances by which that which reduced the price of goods last year increases the price of goods this yeai- ? I will tell you, Sir, wherein the changed circumstances are ; they are in the fact that hon. gentiemen are in danger of being tm-ned out of office. The changed circumstances are in the fact that the people of Canada are getting their eyes opened as I a result of the sound knowledge that has j been disseminated by the Liber ^ party i throughout this country with reft ence to 10 fiscal questions and political ecoi )m.v. The I)eoi)le are learning that taxation does in- crease tlie price of goods. They have learned it so effectually that they have instUled it even into tne mind of the Finance Minister; and he comes down tliis year, abandoning all the past professions of his colleagues and his supporters, and puts them in the awlc- ward dilemnia of having to say that no longer does taxation lower, but it increases the price of goods. T have shown the hon. gentlemen their changes in rioliey. They have been in favour of commeicial union; they have been in favour of reciprocity; they have been in favoiu* of protection; some of them have been in favour of annexation. They have changed their policy as many times as there are days in the week. But there is one thing in regard to which these hon. gentlemen never ''hange their policy; that is, in their desire to stick to office. They win do anything if they can only find out what the people want. Whichever way the v'nd is blowing, their sails are always set in that direction. No one could more readily face north by south, which is what they are doing to-day. Their tariff increases the price of goods and their tariff does not in- crease prices. These hon. gentlemen will do anything in order to maintain themselves in office. But they are a little too late. The people have caught on, and imderstand that In making th 'se reductions in taxation, these hon. gentlemen are not stacere, and that their motive in making them is simply to endeavour ♦^o keep the votes of the people. ^ The Finaact; Minister put this new tariff forward as a farmers' tariff particularly, and he laboiu-ed with a long argument to prove that the farmers have been enormous- ly benefited by the National Policy. In his Budget speech be quoted some figiu*es in the attempt to prove that the National Policy, by excluding animals and their products and agricultural products from this counti-y, and reducing the imports of that class of goods, has materially helped the farmer. These are his words :— I wisli to adduce some figures to show wliat has been done for the agricultural interests of this country. In 1877, the people of this country con- sumed, of agricultural products, animals and their prochuts ; from Great Britain, $56,588 worth ; from the United States, .^'16,066,963 worth ; from other countr'es, .$7,798 worth, making a total of $16,1.31,349 worth. in 1878 these imports for home consumption amounted to $15,050,9.30. and in 1879 to $10,420,.S44. The National Policy did its work, and the result w.is that the impot tation of these products fell to 84,240,849 in 1891, to $3,092,452 in 1892, and to §2,741,7.33 in 1893. In other words, in the three years, 1877, 1878 and 1879, there was an average annual import of these products for consumptitm of 813,867,541, wliereas m the last tln-ee years there was an average annual import of the same materials for home consumption of 13,358,344. Mr. CAMERON. That is the best part of your speech. Mr. BORDEN. If the hon. gentleman who interrupts me Is capable of being con- vinced, I will endeavour to convince him. I am quite confident of my ability to con- vince the Finance Mimster of the utter and absolute fallacio'^sness of those figures. I find, in the Trade and Navigation Returns, that the total imports in 1878 were $99,327,- 962, and the imports for home consumption .'i;96,.S00,483, leaving, as the amount entered not for home consumption, $3,027,479. I presume that the hon. gentleman basefl his conclusion upon these figures. But if he had taken the trouble to turn to the exports, he would have found that the total exports for that year were $72,975,988, and the total exports the produce of Canada were $65,- 864,880, leaving the exports not the produce of Canada at $7,111,108. Now, if the hon, gentleman will deduct from this amount of $7,111,108. the $3,027,479 worth of goods entered and not for home consumption, he will find that he has made an error in the amoimt entered for home consumption of $4,- 083,629. If the hon. gentleman will go to the year 1878, he will find, in the same way, that there is an error of $9,282,668. And if he will take the year 1879, he wiU find that there is an error of $6,732,825. Now, the hon. gentleman has added those three years together and made his calculation ; and he says there is an average of $13,867,541 wortli of animals and their products and agi-icul- tural products imported into Canada in those years, 1877, 1878, and 1879 ; and he says that he reduced them, by means of the National Policy, in the last three years, 1891, 1892, and 1893, to an average of $3,358,344. That is, he gave to the farmers of Canada a mar- ket of $10,500,000. But let us take thp flgm'es and look at these errors. I find that the hon. gentleman included in his calcidation for the years 1877, 1878, and 1879, $20,097,122 of products which were not the products of Canada, or an average error of $6,699,709 for each of those three years. In order to make it more clear to hon. gentle- men, I submit the following statement : — 1878. Total imports $ 99,327,962 Entered for home consumption 96,300,483 Not for home consumption S 3,027,479 Total exports $ 75,875,393 Produce of Canada 68,764,285 Not produce of Canada $ 7,111,108 Deduct 3,027,479 Error — Entered as for home con- sumption $ 4,083,629 11 1878. Total imports 8 93,081,787 Entered for home conaumiition 91,l!t9,.577 Not for home consumption S 1,882,210 Total exports $ 79,323,667 Produce of Canada 68,158,789 Not produce of Canada $ 11,164,878 Deduct 1,882,-'10 Error— Ent'd for as home con. . . S 9,282,6.58 1879. Total imiwrts .' S 81,964,327 Entered for consumption 80,341,608 Not for home consumption § 1,()22,719 Total exiwrts S 71,491,25.5 Produce of Canada 63,i;%,611 Not produce of Canada S 8,351,644 Deduct 1,622,719 Error Ent'd as for home con .. 8 6,732,925 Error, 1877 -S 4,083.629 do 1878 9,282,668 do 1879 6,732,925 Total S 20,09it,222 Average error for 3 years 6,699,740 Now, I challenge the hon. gentleman to verify the figures I have given. And I asli what is to be thought of a gentleman oc- cupying the high position of Minister of Finance, who comes down to Parliament, af- ter carefully preparing his speech, and makes statements of that liind. I do not believe that he made these errors wilfully, but that simply he did not take the trouble of veri- fying the figm-es, so anxious was he to come to the conclusion that his National Policy has been productive of this immense advant- age to the farmers of Canada, Let us go on a little further. The average error In each of these three years was $6,G99,707 ; and we know that all these goods must have come from the United States. Taking the other side of the accoimt, and looldng to the de- tails of the imports, to find where the mis- take has arisen, what do we find ? Take the year 1878. The imports of wheat in that year amounted to $6,510,131 in value, an amovmt almost exactly corresponding to the hon. gentleman's error. The wheat which was brought into Canada, handled by Cana- dian merchants, and exported at Montreal, giving work to our shipping, is included in the reductions the hon. gentleman claims credit for. In shutting out this export of 16,500,000 of wheat which came Into Canada and did not enter into competition with Canadian produce at all, he therefore claims that his National Policy gave a market to that extent to our Canadian farmer. I have given $6,699,000 as accounted for out of this $13,800,000, which still leaves about four millions to be accoimted for, before I get down to the sum he says he has succeeded in reducing the trade of Canada to in these particxilar lines— tl at is $3,358,000. TVTiere do I find the explanation of that ? I look up again to 1878 to find the exports and im- ports of Canada in these articles. I find that Canada exported to the United States barley, beans, and peas to the value of $4,401,104, and brought back, with the money that resulted from their sale, corn and corn- meal to the value of $4,153,281. Now, I think I have reduced the amount down to the point to which the hon. gentleman says the National Policy reduced it. This $6,- 500,000 worth of wheat, which came in and gave work to the people of Camida and put money in their pockets, this $4,000,000 worth of bii.iey, which was profitably exported to the United States and paid for by the corn and commeal which Canadians, wanted or they would not have purchased it— that is the profitable ti-ade to the country which he, on this side, and McKinley on the other side, shaking hands together, have succeeded in taking from the Dominion and the United States. But the hon. gentleman is respon- sible for the larger part. He is responsible for the $6,510,131 worth of wheat which was exported through this country and which, by his policy, he has shut out. The hon. gentle- man proposes to protect the farmers. How does he propose to protect them ? Is it by making their litem ^ire cheaper. Our farm- ers like to read, in these days there are cheap publications of all the great works, of all the classical works, which have hither- to come into this country at a certain rate of duty. And the 1 on. gentleman proposes to help to develop the agricultural interesta of this country by taxing this literature double w^iat it was taxed before. And so, in this way, everji;h{ng that the farmer uses is taxed from 20 to 80 per cent, and, as I have already pointed out, his flour, corn, cxjrn- meal, and coal oil are taxed. I have pointed out already the hardships suffered by the people in the Maritime Provinces in these matters. The hon. member for Queen's (Mr. Davies) has pointed out a special grievance with reference to fertilizers. He claims— and I repeat the claim— that the farmers of the Maritime Provinces should have every encouragement possible. The hon. gentle- men might well, therefore, reduce his tariff and make fertilizers free in order to en- courage agriculture, which is severely handi- capped by the want of profltjible markets, and consequently low prices. But the hon. gentleman retains 10 per cent, and the manufacturers as well as the farmers complain of this. And I will teU the hon. gentleman, who seems Inclined to treat this matter rather lightly, that both the farmers and the manufactm^rs complain that he has not put artificial fertilizers on the free list. I have had letters from manu- facturers in the Maritime Provinces— which 12 I would read to the House if time permitted —complaining that while their profit has been reduced by taking off one-half of the protection given them, the duty on the raw materials they use has scarcely been re- duced at all. And what do these manufac- turers say ? They say : We do not want any protection ; we go with the farmers for free fertilizers, if the Government will give us free sulphuric acid. The duty has been reduced from five-tenths of a cent to four- tenths of a cent, scarcely any reduction at all. "VMiy do not the Government abolish the duty on sulphuric acid ? It is not be- cause they get any revenue from it, for I have looked carefully over the returns and find that the revenue collected last year was a paltry $800. I ask therefore that the hon. gentleman will consider this, because it is an important question. And when tlie manu- facturers of these fertilizers say they are willing to have free trade, in hea ^ en's name let the hon. gentleman come down and give fair play to both the manufacturers and the farmers, by making raw material free. A special reason is suggested here to-day — and that same reason has been suggested to me in letters which I have now in my hand — that there are people beh-"" 1 the Cabinet, and very near the Cabinet, who have an interest in the manufactory at Capleton, and that the Government will not reduce the duty upon sulphuric acid because this manu- factory at Capleton is able to make its own acid and to export it. Of course the hon. gentleman is not aware of it, but I -would ask him to look into that question and ascer- tain why the rest of the people of this coim- try shOTild be taxed in order to support a small industry in a remote part of the prov- ince of Quebec. Now, Sir, I think I have got pretty weU to the end, and I have no doubt thait you, and the members of the House are very glad to hear me say so. One word, Sir, in conclusion. Hon. gentlemen opposite have come down now with a definite state- ment of their policy. They have thrown down the gauntlet and declared that they will fight it out on the question of protec- tion or revenue tariff. We join issue with them and we are happy to have the oppor- tunity of fighting that issue out before the peopl'\ Whether they will stick to it, or whe er before the elections they will fly some r ew kite, as they did in 1891, I do not know. But of this I am certain, that if they will stick manfully to what they say now is their fiscal policy, and will go to the people upon that issue, Liberals need have no fear of the result The people are beginning to understand, Mr. Speaker, what the word " protection " means. The great mass of the consimiiers have learned from the mouth of the Finance Minister himself, by his own admission, that taxation increases the price of commodities. Then, Sir, protection is taxation ; taxation of the most obnoxious kind. Taxation means increase of the prices of commodities to +be masses, the taking of the wealth of the many for the benefit of ttie few. It means, as we have seen in tliis country, the building up of " monopoly ; it means a blow at the liberty of the subject. And what is the policy on this side of the House ? That policy is revenue tariff, a policy under which not one dollar of money shall be taken from the pockets of the people more than goes into the treasury, not more drawn into the treasury than is ne- cessary to carry on the Government econo- mically and honestly. Mr. Speaker, I have no hesitation, so far as T am concerned, In awaiting the issue when it shall be tried out before the people of this country. i (