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 1 
 
 6 
 
[No. a.] 
 
 h 
 
 E3::TR_A.ca:s 
 
 FROM THE 
 
 BTTDGJJJT SJPJSECII 
 
 OP 
 
 HON. A. W. McLELAN, 
 
 FINANCE MINISTEIl 
 
 soxH nyc .A- :r o n , isee: . 
 
 I WAS very deeply irnpresseci with the explnnation which the 
 hon. iiK'inber for Bothwoll (Mr. Mills) gave a yen. or two ago, of 
 the causes of failures from 1 S74< to 1S7S. He put the whoh^ caso 
 in a nutshell. He saUl that, ** tin' iiicnliaiits fs'lldM! for waut 
 of nistoiiu'r**;'"' aiul I sji}»j)os<' UiriM' woro no <iist<»iii<'rs be- 
 cause there was no eiiijthwiiiieiit for the pe'^ple, aud no 
 money aiit^Mi*^ tlie people to enable them to 'mrehase the 
 merchants* jzoods. Therefore the merchant stood idle at 
 ins routiter, waiMni; in vain for customers hat did not 
 c<»me that coul<l not come -because they h; d no money 
 aiul no emnloyment ; and therefore ruin and bankruptcy 
 fell u|M»n the mercliant, and the oHicial a.s<«j;:nce walkea 
 ilu' land like a pestilence at noonday. Sir, I start from one 
 point — ithenesa of the people, want of eniplcyment. no factoriejB in 
 operati(ni, and consequently no customers for the merchant — and 
 there follow a bankrupt merchant and an empty treasury, I start 
 from the other point — employment for the" peo[)le ; money for the 
 people, money taken by the people to the merchant, the merchant 
 busy, and a full treasury. You start from one point, and you reach 
 the one conclusion absolutely; you start fr<jm the other point and you 
 reach the other conclusion just as certainly. When you have employ- 
 ment for the people, you ha\ not only a l>usy merchant and a full 
 treasury, but you have above ^11 a ',.:ntented nnd happy people. 
 Daniel Webster, the great American statesman, speaking upon thii 
 point, after he had been converted to protective views, said : 
 
**Tlii' ititorests of every l;il»4>iiriii;; nMuniuiiit.v n^qulre 
 divei'shy ol' occiiiDai ion, pursuits and «»'»J«'cts of'iiuhisfry. 
 The more that <li versify is mill I i plied or e^tteiadt^d, the 
 better. To diversity em|»loymeiit Is to euhaiiee wajies. 
 Anil, Sir, take this Kreat tristii, place it on the title pa^e of 
 every book of political ecoiuuiiy iiit(':i<le<l for use, put it on 
 every farmer's almanac ; let it be the headiiij; of every 
 €<dumu in every mechanic^ ma;*a/ine. Proclaim it every- 
 wlh're, and make it a proverb, that where then' is work 
 for the hands of men there will be work for their teeth. 
 Where there is employment there will be bread. It is a 
 
 great blessiuif to the poor to have cheap food ; but j»reat<'r 
 than that, prior to tliat. and of still hi;!;her value, is the 
 blessinsof beiuifable to buy food by honest and respectable 
 
 empl<»yment. flmployment feeds, clothes and instructs; 
 employment j^vcs strength, sobri<'ty and ni4»rals. Tonstant 
 em|doymeut and well paid ^abor produce, in a conntry like 
 ours, {general prosperity, content aiul cheerfulness. Thus 
 liappy have we si'en the country, thus happy may we long 
 couiinue to see iW* 
 
 ♦ ♦»♦♦♦#♦ 
 
 Mr. Speaker, I have detained the house at greater length than I 
 intended, or should have done, and I must apologize for it. But an 
 hon. gentleinnn opposite has said that we have driven more than 40,000 
 people out of the country ; and 1 suppose we shall hear the same 
 thing from the hon. gentleman who is about to address the House 
 on the opposite side. It is true, Sir, wo have not had in the p^ist 
 that great inert a.se of numbers that they have had in the United 
 States. In the IJnitecl States, long previous to the taking of tlie 
 last census, they had a policy of protection to home industry. 
 They had a policy of giving their people employment and high 
 wages, a policy which drew immigrants t,o the United States from 
 n\] f)arts of th*. world. They had also opened for settlement large 
 true ts of prairie country, and the two [>olicies comlnned helped to 
 increase the population of the United States at a greater rate than 
 the increase in the Dominion But, Sir, if we take the American 
 census of 1880 and the Canadian census of 1S81, and if we seh.'ct a 
 nuud'crof the olde: States, which offer a fair ground for comparism 
 with the Dominion of Canada, we will find we have held our own 
 very well. 01" course if you go into the newer States, with attrac- 
 tions (»f new territory and prairie soil, you will find a much larger 
 percerit.age of increase ; but, what I want is to make a comparison 
 with the older strifes. Connecticut, which had 537,000 inhaltitants 
 in 1871, had 622,683 in 1881. Cownecticut, Maine, Massachusetts, 
 New Hampshire, Vermont, Dakota — I put in Dakota as a set-off to 
 Manitoba— -compeuring those states with Prince Edward Island, 
 
Nova Scotia, New Brunswick, Ontario, Qut-hec, Mniiitoluv rui'l 
 J British (^oluiiil)ia, I fiPid tliat the American Statt s incroa.sod IfiOG 
 and the l)*;miriion of Canada increased 17.03 pt-r cent in popnlatiMU 
 according to the last census ; so that when we make a proper cimi- 
 parison between the Dominion and the older and more settled p^r- 
 tious of the T."^iiited States we find we have more than held our own. 
 Now, the complaint has been made that the National Policy htw not 
 done its duty, because times have not been so brisk as they were 
 in 1882-83. But, as I said before, if we compare the pasition of 
 trade in Canada wit)) the position of otlier countries — in the United 
 States, and Great Britain, for instance — we will find tliaL nnr posi- 
 tion is better than theirs, and we caii {gather Upoiii this, tlia( but 
 for the Xationul Policy ruin and lianlirnpfcy would liave 
 Iwen upon us. It is in tinies when there is great depression in sur- 
 rountling countries, wi\en there are over-production and slaughter in 
 prices of goods in tliose countries, that we find the protective policy 
 desirable ami advantageous, and it has proved itself here highly bene- 
 ficial in protecting us from the onslaughts which would have been 
 made upon us by foreign manufacturers. T proposed to deal with 
 this question more fully, but I have occupied so large a share of the 
 pul>lic time that I cannot ;^o into it as fully as I would wish. I 
 wont, however, to give one instance to show how the National 
 Policy is affecting the wage-e arner in this country at present. All 
 that is reqv'red for the pro<uiction of cheap goods in this country, 
 is that tluire shall be a market for those goods, and the larger the 
 market the ch(japer they will be. Our people are as active and as 
 intelligtmt as any others, and when they are forced abroad, as they 
 have been, they mnke as good artisans, with a little experience and 
 training, as are to be found in the world. All that they require to 
 be fit to manufacture everything required in this country, and to 
 manufacture as cheaply as is manufactured in the United States or 
 elsewhere, is that they shall have some training, and this they will 
 obtain by our furnishing them with a market for their goods. 
 Now, the manufacturer or capitali.sD seeks a fair return for his 
 iuvesttmvtit ; he looks into th<> chances existing for placing the 
 products of his investment; and the smaller the output he has, the 
 larger percentage he must put upon that output in order to meet 
 the interest upon his capital and the depreciation of his plant. 
 There is a very familiar illustration of this. You take a blast 
 furnace which requires $80,000 t/) meet the interest upon the capital 
 invested in it and the depreciatitm of the plant If the output of that 
 furnace be 15,000 -ons bf pig inwi, of course there must be $2 a ton 
 put on the iron, in order to pay the interest and the depreciation of 
 the plant. If you increase the output to 20,000 tons, then it only 
 requires SI 50 per ton to pay these charges; if you increase it to 
 
80,000 toTus, you only want Si a ton upon it, to pay a divi(li>n-d and 
 you can soil the \n^ in^n $1 a ton oinuiper. If you run the output ' 
 up to (jO.OOO tons, all you waiit is r»0 cents a ton and you have 
 #.!(>.()()() rais(!<l and the pig iron is $[.50 clieaper than it would he 
 with only lo.OOO tons of outj)ut. The same j»rinci[)h liolds i^ood in 
 all the mat ul'actures in which we are enma«2'(^d. Tlie percentage 
 wliiel) inust he put upon every yard ol:' cloth which comes from the 
 locni deptMids upon the output, in order to rnei-t tlie iiitcresL upon 
 the capital and the di'pn'ciation of the plant. You must have one 
 of two things. Yoli must oillu'r liavo :i Ijirv.o market niu\ a 
 lartro oiit|>(it or yuu iiiiist h:ive a tow ran* of wa<><'s, and 
 iliu) iiH'aii.s a low svnU' of liviiiu and a .siiiail ('.v.M'iidiliire 
 koi' MU' iM'iH'Ui of tl!<^ larun'l'. Alureover, you cannot for any 
 considerable length of time, keep men employed ac a low rnt»; of 
 wages, whilf across the border, in the I'nited Stat<!S, there arc 
 larger wages paid and attractions oHeTcd bO (iraw theui to that 
 country. The intention of the Nati(-nal Policy is that we shall give 
 a lara^e market to our own tnanufacturcrs. W.' liuve not so lar'fe a 
 m.'irket, of course, as thcv luvve in the UnittMJ States, but we can 
 give a pr<)]/(jrtionatv m;irket . one-tenth or one-twelfth in proportion 
 to the population of the other side. David Well's, the American 
 apostle of free trade, has been often quoted in this House, and he 
 says : 
 
 " VVag(;s are labor's sh;ire of product, and in every healthy business 
 are ultimately paid out of product. No employer of lalx^r can con- 
 tinue for i\ny great length of time to pay high wages unless his pro- 
 duct is large. If if. is not ani lie attiMupts, ir is only a question of 
 time when his alfairs will be wound up by the sln'ritl". On the other 
 hainl if a high rate of wngfs is ptu-man?ntly paui in any industry 
 and in any country it is in itself proof positive that the product of 
 labor is large, that the laborfi* is entitled to a generous share of it, 
 and that the empK»yer can atford to give it him." 
 
 Tfial is what we have heen striving; to <io in this t'omitry, 
 and it is what we are aeeoniplisliiii^, wh<Mi we avv <>iviiit; a 
 laruM'r market (o our own nianulaetnivrs, and we liave 
 the result tint a Iar«r4'r, a ynore jtenerous wajje is h<^iiis' 
 paid to the euii>3oyees than previous to the iutroduction or 
 tills poliey. 
 
 A vote for the National Policy means to demand that 
 the products of forcigii pauper labor shall be kept out of 
 Canada ; a vote a.?ainst the National Pohcy means that 
 these products shall come into unrestricted competition 
 with Cfanadian labor. 
 
 Piiblifhed by the Iudu?»trial Lea^e, for gratuitou* diatribution..— FBJtDKBic 
 N'i('H"i,r„s, Secretary, Toronto, Oanada.