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^ coM3e**xa.

/ OUR INTERPROVINCIAL TRADE.

A HISTORY OF CANADA'S PROGRESS.

The V:ist DeveloDment of Commerce Between the Provinces of Canada— A Comparison
of the Figures Prior to Confederation and at the Present Time Shows AmaiinR
Results— What Is Yet Needed is Faith In Our Country and United Worit tor Its Prosress.

[Prom The Empire, December 28th. 1889.}

pjurly in the twentifcs a trio of remarkable
men — Chief .(uHtice Sowell, Rev. John
Strachau cud Hon. J. B. Robinaon — pre-
pared and presented to the Colonial Minister
a plan for the union of tlie Tiritiah commu-
uities in North America. The Under-Sec-
retary of State for the Colonies referred tiiat
plan to James Stuart, another remarkaole
son of Canada, afterwards created the first
Canadian Imronot in recognition of his labors
in the pieparatioii of the Union Act of 1841.
Mr. Stuart reported against tiie idea of a
generfkl union, ciiiefiy on the ground that
there was scarcely any trade between tlie
Canadas and the Maritime Provinces. In
describing tiie condition of things then ex-
isting he says : " There is absohuely .'no
intercourse whatever l)et\veen ^he Canadas
and New Brunswick. An iiniucnse wild-
erness separates the inhabite<i ^j-.rts ol both,
and they have no intercliangeable commodities
admitting of any trade between tliem by sea.
Nova Scotia is remote, is only acce.ssible from
the Canadaaby land through New Brunswick,
and keeps up a small trade with Lower Can-
ada by the Gulf of St. Lawrence, in produc-
tions of the West Indies. Between Lower
'Canada and Prince Edward Island there is
hardly any communication vhatever. "

The First Effort at Trade.
This was in lf-V24 The very next year,
probably at the instance of Chief Justice
Sewell. the legislature of Lower Canada made
the first legislative effort to promote inter-
provincial trade. It authorized the (ioveru-
nu'ut to offer the sun) "' 'vl.oOO a year as a
subsidy for a steam sci ..:<' to develop trade
between Cjuebec and Halita.x. The Nova
iScotiau Legi.dature piomptly iosponded hv
voting £750 a year " as a ptttuium forasteamer
' ot notless than oUU toils burthen. Stiuiidatedhy
rluse olfeis, a joint st»)ck company at once
laid the keel of a steamer of 1,.'J70 tons bur-
then, wliich when completed (by the way,
hull built in Quebec ; inacliinery all made in
Montreal), cost f 1(5,000. Siie was called the
Royal William, and was placed upon the
route in 183'2, idying l.etween the ports dur-
ing that and the fcdlowine season of 18.33, but
then withdrawn "because of insulficiency of
business."

It may be of interflst to note that imme-
diately unon being withdrawn she coaled at
Pictou, Ji^oya Scotia, wkpd was seat to Eng-

land.tb as becoming the first steam-driven ves-
sel'that ever crossed the Atlantic. She made
the voyage in 23 days. It was from this
steamer's success in crossing the Atlantic
that Samuel Cunard first had lodged in his
busy brain the idea of the ocean steamship
service, which became an accomplished fact
in 1840.

^ The grant of the Canadian and Nova
Scotian . legislatures produced great results,
but not in the special direction intended. The
ex))fcrience of the owners of the Royal Wil-
liam proves that 'nterprovincial trade m
1833 was a very small affair. Thus discour-
aged the promoters made no further at-
tempts.

The LIhoral Idea of 1859.

In 1859 the Liberal party of Upper Canada
held a convention in Toronto to do some
Cabinet work in the way of manufacturing a
platform upon which all sections of that
party could stand together with comfort to
their political consciences. The union of the
British provinces of " the greater half of the
continent " had been adopted by the Conser-
vativis party as their policy and Mr. (now
Sir) A. T Gait taken into the Cabinet as the
exponent of thit idea. In dealing with the
question thus forced upon them, the
Liberals, as the result of their
deliberations, concluded to oppose the
union policy of their political opponents,
and did so chiefly on the old Stuart ground
of 1824 ; viz., that the trade between the
Canadas and the Maritime Provinces was so
small that union, frtin an Upper Canadian
point of view, was not worth having.

An Effect of ReciDrocltv.

During the remaining years of the Reci-
procity Treaty of 1854, we may be sure that
tiie trade of an interprovincial character did
not grow any larger ; for the great and over-
fbndowing fact of that treaty is, as the late
\V. J. Patterson, of Montreal, abundantly
proved, that it transferred to the nyerchant's
and traders of the United States a large pro-
portion of a'I'growing direct trade be-
tween the provinces, which had existed
prior to 1854— the value of the I
trade in 18G5 being less by half
a million of dollars tlinn the value of the
trade in 1853 -a fact that should be borne in
mind, in all efforts to make freer than they
are the trade relations of the Dominion with

the United States. In our iliscuasiona about
<.haui,'C!a in the trade relations of the country,
too much in»portanoc cannot b*^ attached to
the fact tliat duriutr the twelve ycara of the
continuance of the treaty of 1854 inter-
provincial trade went swiftly "to the dogs.''

From the trade retu Ills of 1861^ and U,l.)
we can ascertain the inierprovincial exchange
that took jjla'je after tlie t'.eaty of 18.51: had
had for several years a stfanfrling hand upon
it. Without ,!j;oini.' into details (for which
Thk KiMPiBfc on the piesent occaaion doi.vs not
allow nie space), I find that this tjade aver-
agetl for tiie two years, in round numliers,
i!I,900,0{M> - rcpresendi!;^ the total trade in
products of the provinces,and in imports from
other countries lenhipped. Aiakint,' allowance
for goods, tile pro. luceof the pro* incas, shipped
tiirouirh the United States, and entered in
the trade returns of the several provinces as
imi^orted or exjiortid by the United States —
thoutrh really bclongini; to tiie trade of the
pr()vince8 wiili eiich oth'>t — the total trade
between the Maritime Provinces and tlie
(.'anadas averaged not more than two nullioa
dollars a year.

The Crnnd Trunk's Effort.

During the sunuiier of 186G— after tiie
rtpeal of the Recipr<.city Treaty by the
United States — the Grand Trunk Railway
Company, with commendable enierpii^t;.
nought to develop inierprovincial trade l>y
means of 8teamei» ;)lying between St. John
and Halifiix and Portland in connection with
their railway, havinj^ its terminus at the
latter pert.

A considerable trade rewarde.! their ener-
getic action, the trade in flour alone increas-
iuR from 80,000 barrels (the average of 18t)4
and ISOo) to 1.52,000 barrels in 18<5H.

The couiedoracy, hov ever, was formed in
18t»7 with what, after all these etl'orta, was
but a small inierprovincial trade in exis-
tence : not enough, as one laading opponent
of ttie Union said, to pay for axle grease for
the Intercolonial. Moreover that little was
largely done through a channel by no means
satisfactory, the l>ulk of it lieing done via
United States seaports under the bonding
Hvstem, which imp.ised expenses uddivig to
the cost of transport.

trade at ConfedeM»tion.

Our statistics vere then, and, for that
matter, are yet, lamentably dehcient in siicii
details as are necessary for an accurate btate-
ment of the dimensions of the interptovincial
tup.de carrieil on between the Mari-
time Provinces and the St. Law-
rence river provinces'. We know
that in 1867 a fortnightly steam service be-
tween Montreal and the gulf ports of New
lirunswick and Is ova Scotia was maintained,
the steamer, however, having a <,'ap;u'ity of
only 800 barrels. Besides i his, there were
tbo "coasters.' We have also to aid us the
transit^rade returns of the United States. I
have niiKle an analybisof tlie last named, iMid

find that in 1868 the interprovincial trade
done via the United States was equal in
value to !ii;.S..')00.000. Add to this the
value of the goodi* exch mged via the ;^ulf
steam and sail coaster^ - the goods from
Quebec (92 per cent, of which was liour)
amounting to half a million dollars, and the
return cargo to loss than §1 00,000-- ;ind tor
the first year of our confe<ierated life we
arrive at an internrovincial traile in this
direCvion equal in value to somewhat over
lour million dollars.

The trade between the North-west and the
two St. Lawrence river provinces was prac-
tically rdl.

The interprovincial traile between Ontario
and Quebec is very large, but it is iiot
brought into consideration, the two pro-
vinces, for the purposes of this investigation,
bei ig considered as one division of the Do-
minion. In the same way the interfiro-
vinoial trade between the Maritime Pro-
vinces themselves is very great, but in the
present paper those pi evinces have been
treated :»s one division.

What Has Been Done Since.

What has bcf.n done since 1867 in the way
of developing interprovincial tiade ?

1. As to the etioris made to overcome
the difhculties h) the way of interprovincial
trade.

Mouc 1876 we have had -m addition to the
channels of intercomu.anication in the inter-
colonial railway opened that year. Tlu.re have
also been during the present year additional
cliannels iu the Canadian Pacific railway,
whose cars ent<!red Halifax for the first time
early in June last, ami in the Temiscoiiata
railway, opjcning direct comnouiication be-
tween tlie St. Lawrence river ami the north-
western counties 4)f New Brunswick. We
have hail the conqdetion of the {,'anadian
Pacific wcstwanl, liidving Manitoba, the
North-wesi and l>ritisli Columbia with llie
other provinces. Desides these great arteries
we have had the National Policy. We have
had a special coMiinitree of the House of
Commons (1883) lo assist, by its suggestioiiK,
in the de\elo))meiit of interprovincial trade.
We have ha^il Montreal maue ])racticalij' a
free port through the assiim]Kioa of tire
Lake St. Peter's channel debt by the Central
Government, nnd ihrough the removal of
wharf dues on steamers and sailing vessels.
Finally, we have had toe al)ro<.'ation (188,5)
by the United States of the fisheries clauses
of thf" Washiimton treaty, the etl'ect of which
abrogatioii iuis been largely to increase the
direct business in fisli from the Maritime
Provinces wcMtward.

Tha results.

2. As to results : What have these eflorta
accomplished ?

Well, iu the first place, we may attempt-
to obtain a general view. Before coiife<tera-
tion, as all the provinces stood to each other
in tne relation of outside countries, ^he re-

turns of importH and exports from and to
each other were noted in the lUstomB
statistics. An aniilysis of these returns
shows that in 186t) the Maritime Provinces of
Is'ew I'runswiek, Nova Scotia and P. E.
Island imported i,'ood9 r,o the value of $10 per
head cf then- population. Allowing for the
incroasoof wealth in tho.se provinccssince 18(56,
and })laciiig tiie value of their importations at
!$4l pyr head, we have an import which would
be now equal to $4(.',000,000 if those com-
munities li id continued in tlieir pre-confed-
eration status. (Per parenthcHis, 1 may re-
mark that in England tiio value of imports is
placed at .§.")() per head, in Belgium at SG2
and in Australia at §100.) A.s, however, the
actual imports of tlio .Maiitime Pi'ovinces
now are only isJiS.'JnOjOOO, there remains the
sum of ,«!27,00(),0()O to represent : first, the
extent to whitli thoy provide tor their t)wn
wants ihrcugli the growtli of their manufac-
turing indu.-3ti ie«, and second, the amount
they procure from tl:e St. Lawrence river
provinces in the way of interprovincial
trade. (Jne detail will hav.' to sutfice in
respect to this cast-bcnuid interprovin-
cial trade. If we take the annual
consuniption of flour, meal and coarse grains
in the three .Maritime J'rovinces at two
barrels per heaci ot the population — and this
is iiOt too i'ligh au average, because tlic fisher-
men con::<ume moie flour than any other
class — we have an annual oon.snni))tion of
two million barrels. Tlie imports of these
articles avei'age 0.5,000 barrels a year, leaving
l,9Hi5,000 barrels to be supplied by the mill-
era of Ontario. One witness before the Com-
mons' iutcrpiovincia! trade committee esti-
mated ti>e consumption at 2,.")00,0()0 barrels,
liut includi.'<l iii that estimate Newfoundland,
which province imports ;sr)0,000 barrch an-
nually. Anmlier wiines.s, Robert Stark, of
'I'oronto, said : " To-ilay we have ovei 1,^ <)
mills in oi)eration in Ontario, and they ».'!
look to the Maritime Provinces for their
tra.le.''

The VoiuMQ of Trade.

The interprovincial trade from east to
wjsr is larger tiian most persons have any
idea of. I olitamed, as fir as possible, the
(|.ianlities of the articles carrioil by the Inter-
eoUmial railway for 1S87, and, by apnlying
the prices eitlier of tiie Montreal wholesale
market or ot the customs ilepartment, was
alile in that way \o make up a lis*- of articles
sent from the Alaritiine I'rovincca, which,
though necessarily inconifiKte, tooted
up the very respcctal)le ligure of over JjlO,-
(•00.000, iniduiling in that amount the total
c.oai saics of Nova Scotia to (.Quebec, wliether
of coal transported Ijy land or l>y watiu-. The
increase in 1887 over 1880 a-, marked l.'y tlie
tons of westlxpund freight billed from stations
on the iniercoionial in New Brunsw ick and
Nova Scotia wai eciual to ,S'2() jjcr cent.

'J'lie reports from individual firnis and
trading corporations foi- 1888 were to the
eiiecC that theie had beon a stead v increase

over 1887 in the trade with the St. Law-
rence I iver provinces, as well as with the
provinces of the west.

Goods Carried bv the Gulf Route.

In further examining this "vestbound in-
terprovincial trade wo have to find out the
amount of goods carried by the gulf water
rou'te, and also that carried by the United
States railways. Thi latter amounts to
close upon |!l,500,0(X> a year. As regards
the former we have no means of obtaining
the value. That the amount is large there
can be no question. In 1888 the shipping
em\)loyed in the coasting trade of
the four provinces amounted to 10,-
8():^,:W0 tons. This is more by 1,7(X),000
tons than the tonnage in and out
connected with our ocean-borne connnerce.
It is irreater by 2,.'J00,(X)0 tons than ciie ton-
nage passing throng., the Suez canal, that
great world-path between Vivo densely-peo-
pled continents. It is greater by ">,730,()00
tons than tiie tonnage passmg throutjh the
" Soo " canal.

D.uing the past ten years the external
comi>!erce of the whole Dominion (exports
and imports) has called for an increase in the
tonnage cciinecied with that branch, of 47
per cen^ The internal trade of the Gulf and
Atlantic division alone in the same period
has shown an increa.se in tonnage engaged of
9.'^ per cent. During the past few years the
tonnage of vessels fro.n the Maritime Pro-
viiiceo to the port of Quebec has greatly in-
creased, that of 1887 being 33 per cent, of an
increase over 1S86 and 47 per cent, over 1885.
In Montreal the increase in 1888 over 1887
was 18 per cent.

Lne of tiie witnesses befoi-e tiie interpro-
vincial trade committee (18S3) in his evidence
said : " The trade of Prince Edward Island
with Montreal has more tiiau doubled in ten
ye:irs."

Thus we have nearly eleven million tons of
shipping moving, like a giant weaver's shut-
tle, to aiul fro along the magnificent eastern
water front of thisl-'anada of ours, playing an
important part in the manufacture of homo-
geneity of septiment.

It is plain from tliese statements that, con-
currently with the development of inter-
provincial ti'ade by the railway channel, there
has been an equal, if not greater, develop-
ment by the guif water route.

fin Estimate.

It, now, we set off all that portion of this
eastern water front tra<le wJiich is ii;tei"pro-
viimial as <liatinguished from provincial ;
all the trade in articles carried by the Inter-
lonial, the value of which <'i<,nnot lie
asi-ertained, again.st the development of
mar.ufacturea in the Maritime Provinces
uiidnr (he National Policy — the effect of
which has been, possibly, to reduce the per
head consumption of articles that would have
been obtained outside of the Maritime
division below the $41 I have taken a

th(i Htandurd— wc hIihII havn ii)a<Ie the
tiiiiplest allowance. Then, we have, in
»3is{ht. - ^28,000,000 eastward • carried }
.<;; 10,000,000 westwanl cuiticd W our
own railways, ami Sl,^>,000 carried
l>y United States railways -in nil, an ascer-
tdisied iiiterproviiK'ial trade of ■'iii>5,600.000,
or nenily sixteen times tho tiado of thin
character done in the rirsi/ ; nr of confedera-
tion, and tweuty-Boren tiiji< i the trade done
in tlie year previous to confederation.

Trnds in the Weat.

What is the value of the interprovincial
trade between the 8t. Lawrence river divi-
sion (Ontario and Qiieljec) and Afanitoba and
the Prairie an«l Mountain division?: ;

Ueforo the C P.R. becaiiio a channel of
comnmnication the interchange? of prorlucta
between the provinces east of Lake Superior
and those v/eat, hud largely to be done via
Urdted .States rf-ilwaya. My analybis, already
referred to. shows that the total inter-
piovincial exchange through the United
States channel amounted in 1883 t(» 19^
ndllioi! dollars. Deductint; from this the
value of goode composing thu interprovincial
trade of the St. Lawrence river and the
maritime divisions with each other, we have
over sixteen million dollars .^o represent the
interprovincial tiado of Ontario and Quebec
with the Prairie division in 1889. That this
value has been increased since is Ijovonil
doubt. Tiie increase in tons of interprovin-
cial exchange carried east and west from
Port Arthur in 1888 over 1887 was 173 per
cent. It w ill be seen at oiice thai there has
l»een a veiy i^reat eMpansion of interprovin-
cial traile in this iiire<;tiou since 1883.

The Grand Total.

Taking the whole interprovincial trade in
sight, and making an alowance of only oO
per cent, for the great develojjment that has
taken place since the completion of the
C P. R. westward, we have an interpro-
vincial exchange ot 1§80,000,OUO, not counting
that between t>utario and Quebec, or tliat
between tlie several provinces in the Mari-
time division of the east.

The totcil export tradeof tlie whole Dominion
with the United States barelj' reaches half"
that sum.

This business has sprung from the paltry
.^2,000,000 which the provinces di<l with each
other in the last year of the treaty of 18o4,
abrngrated by the United States ni 1800.

It is the most extraordinary fact in our
confederated life, crowded as the 22 years
have been with marvels.

The Causes.

The changes which have maile this Uiarvel-
loiis development possible are (a) external and
(b) internal. Theexternal changes are : (1) Th«
repeal of the Reciprocity Treaty in 18G6 by
the United States : (2) the abrogation of the
."^Hheries clauses of the Washington Treaty by
the United States ; (3) the Act of Congress

which emT'Owored the president of the United
States to proclaim at will non-intercourse
with Canada.

The internal changes are : (I) The estab-
lishment of free trade between the provinces
by the Union Act of 1807 ; (2) the completion
of the Intercolonial railway 1876 ; (3) the
improvement ot tiie navigation of the Gulf of
St. Lawrence, by the erection of lighthouses
and other navigation securities ; (4) the mak-
ing of Montreal practically a free port ; (5)
the completion of the C. PR to British Col-
umbia ; (6) the opening of the C.P.R. to St.
John, New Brunswick ; (7) the general de-
velopment of railways and canals.

What Is Needed.

What is still needed?

L An earnest deternnnation on the part of
the people to cultivate to its utmost this
interprovincial trade. The best market is
the near at home marke^^; the second best is
the interprovincial market ; wo benefit our-
selves in botli cases, whether we buy or sell.
The near home market and the interprovin-
cial market are like the cjuality of mercy,
which blessetli him that gives and him that
takes.

2. The fullest development of on water-
ways.

3. Settled conviction that the internal
trade it; the very best trade W3 can possibly
have, and that ic would be the greatest folly
in the world to sacrihce this trade for that
which might be gained by commercial union.
Past experience has shown u? that it is
letting out at the bung-hole and
pouring u. at the spigot to ob-
tain reciprocal trade relations with the
United States at the expense of our inter-
provincial traile. At any rate, till we have
thoroughly^ grasped our interprovincial traile
and are sure we can hold it against all
coiners, let o.s have nothing to do with com-
mercial union.

4. Reduction in the rates of freight.
This can best be accomplished by divert-
ing to our own railways the twenty or
twenty-five million dollars' worth of goods
still annually imported and exported by the
1 Nonunion via United States seaports.
Every dollar thus contributed to our own
railways will enable them to reduce tlio
cost of inteni'U transport. To this
may be added greater promptitude
on the part of the railways in the conveyance
of goods, a)\d greater promptitude on th^
part of the consignee in removing them.

In a word, what is needed is: (1) faith ;
(2) faith ; (3) faith in our couutjy's future ;
(4) works ; (5) works ; (0) works. They are
the two oars by which we must propel our
country onward Faith removes mountains
of difficulties in national life. Works (pub-
lic works) cast up the highways and bring
comm\mities, otherwise jsulatfd and in danger
of foru ing "entangling alliances, " to feel a
common bond and a common interest.

(jIeorgk Johnson.

3 United
urcuurse

le estab-
>roviucett
mplotioti
(3) the
B Gulf of
htliouaes
the muk-
porfc; (5)
tish Col-
R. to St.
eral de-

le part of
tioat this
larket ia
kI best is
iiefit our-
y or sell,
ei'provin-
f mercy,
him that

IX water-

iuternal

possibly
itest folly

for that
ial union,
hat it is
ole and

to ob-
with the
)ar inter-

I we have
jc'ial trade
against all
with coni-

'f freight.
I>y divert-
twenty or

II of goods
ted by the

seaports.

our own
•educe the

To this
romptitude
convey auee
ule on th^
ihem.

: (]) faith ;

f'a future ;

They are

propel our

niouu tains

/^orks (pub-

1 and brinff
id in danger
;, " to feel a
rest.
Johnson.