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Any Canadian who has an insight into the indus- trial and mercantile position of his country, and cherishes its welfare either from patriotic feelings or because monetary interests are involved, mus^feel regret at seeing the prosperity of each and every branch of business at a stand still or in a state of stagnation, such as the last two years have brought on. Prospects of an improvement are eao-erly looked for, ]>ut to an impartial eye are not obvious The question how did this state of affairs occur, how can it be changed, and where will w^e be drifting <o if no change for the better occurs soon, are matters of serious contemplation, it is the object of the present lines to solre some of the mystery surround- ing these questions, and we shall be fully compensa- ted for the diflicult ta^k if we succeed in sheddinn- some light on the situation. "^ A good many people attribute to Government the sole cause of our misfortune, others to an overpro- cluotion and overstocking of the different merchan- dises, combined with a rotten credit system, others to the unfavorable climatic situation of Canada, which in the strife of competition throughout the world it evinces more and more difficulties in overcoming. A great many others are satisfied with the sad conso- lation that business is bad in all parts of the world, and wait for the return of better times in the shape of an exceptional good crop of cereals, which they think, must eventually make up to the people at large all previous losses. Admitting that Canada has developed, especially so far only the industrial branch of agriculture, it remains to be seen whether any nation qualified in every way to develop most other industries am remain and does right to remain exclusively an agri- cultural country. Let us therefore first see what is the industry of a country, what aims has it and what means for devel- opment are at her command. By industry we must understand the task to raise, rear and transform the products of nature into such shapes and forms as human ingenuity adapts for the different purposes the state of culture in a country may require. The requirements of industry are, in the first place the special technical knowledge, se condly capital, to realize such chances as this know- ledge may venture to open. V i J i + 5 I I 4- It is clear that those countries and nations who combine all conditions, natural products, knowledge and capital have a great advantage over those where only one or the other of these conditions prevail. But whilst knowledge and capital can be acvquired, the natural products must be given in a certain state and at a certain iigure, so that the transformations turn out advantageously. It is the answer to the question — whether Canada naturally contains such products, — which must decide whether we are doomed to remain only an agricultural country, and further, if we iind that we have as many resour- ces as any other country let us look for the reasons ,vhy we have not brought them to bear ere this. Before doing so, how^ever, let us consider for an instant the humanitarian and idealistic principles which the so-called school of Manchester teaches. The theory of this school has been adopted by the now domineering English statesmen, and their in- direct inliuence alfects naturally also the affairs of this country. By the principles of this school each nation is to procure its wants only from those countries, where by local advantages the special article can be furnished the best and cheapest. The general appli- cation of this principle would exceed the most sanguine expectations, for it would include universal fraternity and harmony all over the globe. All diliicult questions of duty would be settled by it, and all sham industries, industries w^hich only owe their existence to protection would be extinguished V 6 and, indeed, a state equal to the millennium would be the result. Iny practical observer will admit, however, that human character is not yet adapted to such a state, and indeed in some respects it would have to undergo a change for the worse if it were satisfied with it. Such a state would develop each country and individual only very onesidediy. But to achieve the highest aims, human ingenuity must be at liberty to develop and make use of every branch of knowledge to the largest extent, and must have the facilities of examining, comparing and adapting the most modern methods in all branches and oi all nations for its own purposes, if further improvements shall be made at all. These principles may be of practical use to England, which, in consequence of her eminently favorable position, her industries of long standing and her natural resources, is the possessor of mono- polies, which are of vast importance for all nations. As illustrations we mention only their manufactures of soda ash, bleaching powder, a host of crude chemicals, a great many metallic products, and their privilege of being the builders of steamships and iron vessels for the ^\'orld. Assured of her strongholds, England is in a position to draw advantages from universal free trade, and with Manchester teachings to hoist the ilag of humanity on the mast of her trade policy. For most other nations, the principle of giving the poorer class the benefit of the cheapest prices for r a (ree the for the articles of its subsistence can naturally only be a secondary one. The principal one must be to give it remunerative work and all the advantages to become producers who, by their own exertions and industry, may be enabled to enjoy independence as well as certain luxuries and comforts. It must not be forgotten that England has not cherished Man- chester and free trade principles before she attained the supremacy in the most important articles of modern industry, and before she was able to adopt them she hud, not very long ago, to use even extra- vagant means for securing the development of her manufactures. For instance, the manufacture of linen was in- augurated by a government premium of 16 to 25 per cent., whilst an import duty from foreign countries of 15 per cent, was exacted, and when the invention of cotton looms was made, England pro- hibited blankly the exportation of any of these machines, which could be procured by other nations only by the payment of a most extraordinary premium by the way of smuggling. This only as an instance that even England, to introduce new industries, which afterwards retained a lasting monopoly, had first to protect their early growth most strongly, and what were first sham industries, developed themselves into monopolies. But to return to Canada as an agricultural coun- try we have reason to doubt whether the term agricultural is in its place. Agriculture means 8 somylhing scientific ; is now-a-days something more than to reap harvest year alter year from a soil whose virginity will give ample crops for a decade and even longer, but at last, by indiscriminate ex- haustion of its most valuable ingredients without re-placing them systematically by fertilizers, becomes unable to produce any more remunerative crops. If exhaustion takes place, the owners sell out and emigrate to some place further west, where new soil is treated on the same principle, till again exhausted nature puts a stop to it. Only the large scope for emigration and the richness of the soil are the cause that the country at large has not felt the efl'ects of this self-abuse more directly. But sooner or later our injudicious, empirical way of farming- must impair our grain exportations, upon which we have accustomed ourselves to look as our strength, and by the scale of which we measure the pros- perity of the country. Should, however, these grain exportations give out, what then ? Or what would be our resources if the supply of excellent wheat from India should materially reduce our exportations, and if the returns from lumbering, which we carry out on the same short-sighted, suicidal principles, should fail ? A country like ours, where large tracts of soil of unparalleled richness still exist, tempts, of course, to such one-sided, as the least troublesome policy. But such country, even with due regard to the great many excellent labor-saving machines and 9 mechanical implements used, can be called but a I'arming- country. It would only, then, become an agricultural one if science had a share to some extent in it, if it were connected with some of those agricultural industries which our climatic nature might I'.ermit, and if the raising of crops conjointly with these manufactures would be carried out in such a way as to augment the fertility and capacity of our acres and woods instead of exhausting them. There is no attempt to be seen in this direction, and unfortunately it seems there is even no under- standing for these fundamental principles of agrarial as well as national economy, with either our gov- ernment or people. Having extended ourselves only in one direction, we have not entered like other nations, and es- pecially our American neighbors, into the spirit of the age, which exhibits itself by universal com- petition and emancipation in all l)ranches, as well as the creation of entirely new industries. As an example, and coming from quarters from whence it could least be expected, it must stri^' ' us that even lazy Mohamedans have entered 'uto this spirit energetically and successfully, as shewn by the Viceroy of Egypt's exportations of sugars, molasses and alcohol into England, with which latter article he actually largely influences that market, llussia, whose climate is similar to ours, from a farming country has become an important agricultural one, by the introduction of the beet-root 10 sugar industry and ol chemical factories. Besides, by strict and powerful tariff' regulations she m- fused life into all branches of industry, so that at present she supplies most articles herself which ten or fifteen years ago were imported, and she is now enabled to rel-'nquish the high tariif rates. The success of Russia in that respect is most astonishing, especially in consideration of her difficultios in abolishing serfdom, and the comparatively insuffi- cient education of her working classes. Of all other nations, however, our neighbors have been most succp^-^iul, and whether their government anticipated the result or acted merely insUnctively and under pressure[of their industrials, the fact that they have emancipated themselves most thoroughly by the adherence to their strict protective system, remains the same. Although not sympathizing with certain characteristics of Americans in general, we do not hesitate to pronounce that, leaving abstract sciences and arts out of consideration, our neigh- bors now stand at the head of modern progress, and have become the most important industrials of the world. With such energetic neighbours it : ^mains a mystery, why the contagious spirit of competition has not entered more into Canada, why hardly in one branch of industry we are their equals, and why we are utterly helpless to follow in their wake. To prove that our neighbours have made such enormous advances and have outdone Europeans, is 11 <s a difficult matter, as a basis for a generally admitted comparison is wanted. England has had so far the lead in almost all industries ; we may therefore be allowed to accept the theory of their most eminent chemist and technologist Muspratt, who says that the intelligence and the development of a country should be measured by its consumption of Sulphuric Acid, Iron and Sugar. The estimate of the present American production of Sulphuric Acid at four hundred million poiinds per annum, is decidtdly an inside one, and the con- sideration that of this vast amount not one pound is used for the manufacture of Soda Ash, of which for reasons mentioned before, England has the monopoly is a proof of the extraordinary producing and consum- ing powers of the United States. Besides for relining petroleum, this large quantity is used in all kinds of chemical industries, for which it is the basis, as iron is for all mechanical purposes. At least three quarters of this amount has been produced only since the war of the Union, after which by amassed iortunes a great many industries received a stimulus. Since that time Americans have started in all pos- sible branches, and we lind thom now the largest manufacturers of mineral acids, tartaric, citric, acetic,, oxalic, and chemically pure acids, of the Alkaloids and all kinds of chemicals, dyeing and photographic pre- parations, fertilizers, drugs, mineral and organic colors, paints and varnishes, etc. 12 In many of these productions they have invented entirely new methods. Carefully guarded manu- facturing- secrets lor difficult preparations, from which some European manufacturers drew great fortunes, are not secrets to them any longer. Such as the manul'actures of Quinine, Morphine, Camphor, Vermillion, etc., in which articles they have outdone Europe. Last year's statistics show a production of 2,100,000 tons of raw iron in the United States, and we can judge their consumption of this article by their in- dustrial development and the great man^'- appliances of modern comfort which their hotiseholds contain. This industrial progress comprises specially the cotton- weaving, printing and dyeing establishments, the textile industry generally, and the carpet and oil cloth manufacture, all soits of machinery estab- lishments, plated wares, and of these specially the cobalt and nickel plated wares which are entirely their own in this state of perfection, hardware, glass- ware and pottery, and even the silk and velvet man- ufactures, and a host of others too numerous to men- tion. At last the consumption of sugar given at 44 lbs. per head per annum according to the latest statistics is an amount which is not approached by any other nation, and needs no further commentary. If we admit Muspratt's basis, the above examina- tion must contain the proof of our previous assertion. But we are fortunate to have this year the op- i 18 portunity of examining by personal observations the progress of all nations at the Centennial Exhibi- tion and if we allow that the articles exhibited are fair representatives of each country's best pro- duction, the careful judge will come to the same conclusion. Making every allowance for the superior taste in the display of their productions, which is apt to pre- judice in their favour, the cool, impartial observer and technic, after comparing prices and inspect- ing American manufLicturing establishments, will come to the conclusion that our neighbours have really become the most successful and enterprising manufacturers, and are dangerous competitors in almost every industry in the world. This conclusion must receive a sound corrobora- tion by the last statistics, which show in the United States an excess of exportations over importations during the last six months, of nineteen million dollars. In the face of all these facts, what have we to show ? Is our production of ar^out one million and five hundred thousand pounds of Sulpluiric Acid from the two works in London and Eroekville, wliich have a capacity of about eight million pounds, not a ridi- cously email amount in comparison ? Do we know anything at all about chemical industries, and does the state of our embryonic meclianical workshops, with a few exceptions, give room to the idea that we 14 are large consumers of iron ? Or, are the natural resources with which Canada abounds in the shape of pyrites, ores of every variety and of great rich- ness, phosphates, alkaline earths, salts, coal, etc., less productive, and therefore the unfortunate cause that no fair trial has been allowed us ? Have we not as many natural resources as our neighbors, wherever w^e cast our eyes V We must admit we have such resources, which in many respects are better than those of our neighbors, with the exception of the more precious metals. By our close connections and rela- tions with Europe, our want of knowledge might have easily been supplied from home until we would have been able to rear ourselves a new and ambitious generation of industrials ; and as to capital, if we had only been able to give a fair guarantee of success the old country would willingly have supported our en- terprises if our own means had not been sufficient. t50 the principal conditions for becoming an indus- trial country as well as our neighbours have not been wanting, and we must look for other reasons which have impeded our development, — The more difiicnlt it is to earn capital, the more careful mankind becomes to invest it. A new busi- ness must show a large and sure margin, exclude almost any risk whatever, and it must be assured beyond doubt that the favorable conditions under which it may start will last until at least the amount for its plant is earned, before we are willing to entrust it with our hard-earned savings. As we 15 n k1 '1' O' ,•5 i never have been in a position, individually, as our j^eighbours, to amass riches as they did during- and after Iheir war, and in as easy a way, our reluctance to encourage new industries is somewhat excusable, especially so, as we never have had the occasion to show as good proiits as the American industrials. In other words our tariffs have never favored in a similar way the starting of a home production, and all speculation why we should not be able to rank amongst the industrial nations is futile before we have had a fair chance with reasonable margins to try our strength. Although in the beginning we would have to learn and undo a great deal, we do not hesi- tate to express the belief that with a guarantee ol" such conditions, another decade would see us in a position to compete in the markets of the world, with other products than those of farming and lumbering, and which are not based upon the exhaustion of our lands. For not having done so before, the blame equally rests with Government and the people, for the urgent necessity of developing our producing capacity in another direction but farming, has never been i^ressed sufficiently with Parliament. Our interests have been represented mostly by a large importing business and the exportation of cereals and lumbe As long as the former gave good returns, that is, as long as consumption was improving and competition amongst importers and exporters not overdone, matters went on smoothly in the laisser-aller style, and no complaints were 16 heard. Not seeing the abyss to which "we were driiting, we quietly have allowed our country to become the dumping ground of all foreign nations, and in a state of constant vaccillation and unde- cidedness in our tariff regulations, between prohi- bition, reciprocity, and free trade, we thought we could cut out a road of our own and created the abnormity of our present tariff, which is meant to satisfy all classes, and especially prides itself on the moral satisfaction of having done the best under the circumstances also for the poorer classes. But who is the poor man, and what benefit has he had from these regulations ? Has not the position of the farmer, the tradesman and mechanic become worse from vcar ^o vear, although the common articles of life since the last three years have de- clined materially. In the unsatisfactory position of these classes we have to look for the causes of the country's calamity, they are the bulk of the popula- tion and trade ebbs out and flows with their pros- perity. If we find they never have been yet in a llotirisliing position, the present crisis, which more or less affects all nations, must open our eyes to the fact. Our climate allows our farmer only about seven months in the year to bring his productive power to bear, the rest of the year he is a consumer on account of his previous earnings, and to do the necessary work in that given time almost the double number of hands has to be employed to prepare the 17 \n ■r 111 e r soil and to reap. The capacity of the single indivi- dual thus employed is therefore reduced to only one quarter what it might be and his value to the coun- try can be estimated only in this proj'Osition. Our mechanics and tradesmen do not fare better. Only the season of open navigation sees the former regu- larly employed, and the chances of the latter for work depend almost entirely on the overproduction of other countries, who from time to time overilood our markets with their goods, sold at almost any price and stop our young undeveloped industries, which, under such circumstances, can never reach a state of perfection with a view to compete in the world's market thereafter. The depreciation of values all over the world, caused by the wiping out of enormous capitals in Asia and America (in Railroads, steamship lines, mines, and factories,) which have proven total fail- ures, and of loans contracted by states almost bank- rupt, such as Turkey, Egypt, and the Argentine Republic and of other gigantic losses which appeared in Germany after the French war, during the so- called period of inflation, — has indirectly also afiected us. In consequence of the diminished consumptive power of a portion of the world's population, former- ly living in extravagance, the balance of the average consumption has been disturbed. Lower prices were the consequence, and manufacturers, to make up for shortcomings, intended to reduce expenses by augmenting their production. As the consumption 18 of the lower priced articles did not advance in pro- portion, and also the lilling np of transatlantic mar- kets came to an end, the state of stagnation over the world is accounted for. That a country like ours, whose industries are in a state of infancy, must sutler the most by it, is a natural consequence. As we cannot emancipate ourselves from these effects directly, we can expect an imin-ovement only from the revival of business in other countries, or from an unusually good crop of our cereals w4th the realization of extra good prices. As crop prospects are proverbially uncertain, we cai- only consider the chances of a better business in other countries. To do so we have to look for the healthy growth of business in general. The latter is dependent upon an augmentation and amelioration of all productions. This can only improve in x^roportion to the capacity to spend of the consuming public, which makes only slow advances in proportion with the amelioration which individual circumstances derive from the increased total production. Production and consumption are closely related and cannot be reduced or enlarged without affecting each other and their equili- brium. In proportion to the progress of culture and the advancement of the lower classes, articles of modern improvement and comfort, which formerly were only accessible to the best classes, by degrees become the property of all. Many articles, the use of which f 19 some lifty or one hundred years ag-o was considered extravao-ant and luxurious are now necessaries of living for all. For instance, sugar and tea. The well modiiied wants of humanity become therefore laro-er and more manifold with its advancement, and^'ui comparison to it the most urgent nes are still insufficiently supplied. From this point of view we can certainly not produce too much. With over- production, however, we generally mean a pro- duction of more than what is wanted or above what can be used. This tern is therefore not correct and leads to misunderstandings. What is called overproduction is simply, not economical produc- tion. For if the production of an article increases considerably and rapidly the supply will overreach the demand, except this supply can be furnished at such a reduction in price that the individual expense lor It will not increase with the increased quantity used, or that for some cause whatever the capacity to spend more has improved. All other chan-es of production which cannot be traced to economical causes such as those before mentioned, must disturb the existing balance between the dilterent branches of production, must impair the prosperity of the producers and indirectly that of the community If however, all branches of produce increase simul- taneously according to their established proportions the possibility to increase all productions within time is almost unlimited. An increase outside of 20 these proportions is not economical and the name overproduction has been adopted for it. The total production can never be too large ; a decrease of it indicates a deterioration, an increase an amelioration of the welfare of the human race. The present calamity in foreign countries is the consequence of enormous losses of capital sustained as i)reviously mentioned and further of the spending of fortunes in establishments erected for the purpose of reducing prices by an increased production, which are not paying interest, and for the time being add to the burden of dead losses. The proper remedy cannot be a reduction of pro- duction, but the reestablishment of the equilibrium between the different branches of industry and their improvement. The tendency therefor is, that better articles will be offered for less money and it will be a long time before we can expect higher prices. As we have seen that the capacity to spend, — the de- mand, — can make only slow progress, a long time will elapse before this equilibrium is established again. We can for the same reasons not expect from foreign countries a decrease of articles of practical and daily use at figures which would allow us to compete with them in our own country in the state of our present development. It remains, therefore, to find means, to put our industries in a competing position, to improve not only the present situation, but to strengthen us in such a v/ay that we shall not have to suffer again for economical sins of other nations 21 in which we took no part. We can certainly acquire the ability to compete in the world only alter we have learned to supply our own wants. We must therefore become larcver producers in all directions, for which the first stimulus can only be received by means of a stronger protection ! If we exclude the flooding of our markets with foreign goods, indus- tries which are now carried on under difficulties and only periodically, would then become remu- nerative, they would be continued steadily throuo-h- out the year. We would naturally work cheaper and by wholesome corapetion within the bounds of the country, not only prices would be reason- able, but our inventive spirit which we have no reason to consider inferior to our neio-hbour's would receive new impetus. New industdes with which we have made no attempts yet would spring up, and our merchants would not become losers, for instead of the manufactured articles they would import a great many raw materials, and the augmenting consumption would also benefit the retailer, as it would allow him to adopt the prin- ciple of "large sales and small profits." The argument brought forward that a country of lour millions and one half inhabitants cannot support industries is a farce and a miserable excuse for our impotence. If it were correct, it would be our duty not to hesi • tate a moment at amalgamation, as the basis of Can- ada s present existence-farming and lumbering- 22 lacks all economical principles with no future before US. In fact no civilized country even if climatically better situated can nowadays exist on such basis for any length of time without detrimental consequences and the destruction of its rescources. Farming alone cannot be carried on scientifically and in harmony with principles of national economy ; it must be connected with agricultural and chemical industries. The faint attempts that have been made by far- mers to introduce the beet-root sugar industry into Canada show the desire to farm on a more rational basis and to provide work for the laboring classes during the time of their present idleness in winter. Some provincial government has even offered a premium for the first establishment starting and if "we are informed correctly the assurance from gov- ernment has been acquired by some fictitious com- pany that for ten successive years no taxes on beets raised in Canada or sugar therefrom should be ex- acted. But these are only half measures. If Government were convinced that this industry would be a benefit to the country, and we cannot doubt that it must have this conviction, it should be made the careful matter of its study ; it should pro- vide the best seeds, distribute them over the land with instructions where, w^hen and how to plant them, rear them and conserve them, and offer prizes for the best crops so attained, the best for the purpose in view. 23 If America cannot furnish chemists and technical men who have a thoroun-h insight into the matter it should communicate with experts of high standing in Europe, and if these pronounce the character of tht crops remunerative, it would then be time to draw the attention of our farmers to the fact, open facilities ^br the starting up of such works, and pro- nounce publicly the intention as to the duty connect- ec therewith. The single individual, even a society caanot accomplish this task well, and we must look to the fathers of the land to solve questions of this character. The defective organization of the Department of tlie Interior, its unwillingness or inability to help IB, is the reason that important questions of this sort a7e not solved, and the same qualities with our tarilf regulators, the cause that our manufactures c£n neither live nor die. But also industries, of which we might have been jistly prou.d, for the high intelligence of their rranagement and state of perfection, from a technical point of view, and whic;h, for these reasons, could have defied the competition of the world on even terms, have been allowed to close their establishments by our short-sightedness and want of judgment. In this respect we have especially our sugar refineries in "saew. One of them six years ago gave up the task of overcoming the difficulties of an unfavorable tariff, which allowed English and American refined sugars to supply a large amount of the consumption of Canada. 24 ^ The othei after giving prools of wonderful endur- ance, closed only this spring, in consequence of the establishment of the late American drawback system which refunds to the manufacturers on an average one quarter of a cent per pound more on their ex- portations of refined goods, than actually was paid duty on the raw material, and no redress could be obtained from our Government. The reasons for not taking repressive measures against this action were principally argued thus : that the loss of work to some four or live hundred workmen could not l)e guiding in the case, but :he cheapness of the article so received from which the people at large derive advantage. Now, taking the population of Canada only at foi.r millions and Iheir average consumption of sugar if 32 lbs, per head per annum, their yearly consumption would amount to one hundred and twenty-eigit million pounds and the advantage gained would le eight cents per head or $320,000.00 in all. The working expenses for refining sugar in tie shape of wages, salaries, interests, insurances, com- missions, repairs of all kinds, cartage, general trade, business and travelling expenses, internal revenues, fuel, cooperage, animal charcoal, etc., etc., amount to at least 95 cents for every hundrtd pounds reiined, and if Canada was in a position to supply its own refined sugar the sum of $1,210,000.00 would every year be gained and remain in the counfry which now we pay to England and America. The last mentioned 25 sum does not include any allowance for commission to the merchant importer of raw sugar, nor of the advantage the country must derive from a large and direct communication with countries producing raw sugar. We leave the reader to draw his own con- clusions from the figures given and only wish to mention that our refiners have never been in a position yet to supply more than half of Canada's sugar consumption, ifter having submitted to the loss of almost their entire plant, after losing their skilled laborers, who are mostly driven to the United states or scattered over the land, our sugar refiners will certainly not easily be tempted to start their works again, except under better guarantees than heretoiore given them.— This closing of our best industries, and the state ol' stagnation and imperfection of others compared with the enormous progress of our neighbors, leads to the nrm conclusion that the spirit in which the tariff question has . been treated is detrimental to the development of the country and the principal cause of our present misfortune ; and further, that whilst some ten years ago, more gentle means might have had the desired effect, nothing will do now but a strong and real protection which will give us the courage to confront the encroachment and threatened extinction of all branches of industry in Canada.- But it rannot be denied that we ourselves and individually are also to blame to a great extent for the present ctate of affairs. i 26 In the first place it is our widespread credit system which has done a great deal of harm, and we feel its bad effects every day. The farmer purchases on credit and pays if he can with the yield of his crop. If the crop is fa.^orable he settles his account at the end of the year, if not, his note is taken on account of his next chance to pay, and so on. The mechanic follows this example as much as possible, and even our best classes adopt the plan of settling their bills only once a year. The merchart is there- by not able to sell with a reasonable profit, for he must take into consideration his chances of not being paid, and loss of interest, therefore neither well-to-do people nor poor can get the full benefit of low prices. That the difference of purchasing and selling prices is not still larger, can only be accounted for by the great competition of our country merchants and little shop-keepers, which suggests an overdoing of business, or more properly the disproportionate number of people not ctually working and produc- ing, but living by tno thrift of cheap braiivwork. The cause of most of the numerous late failures can be traced to the above mentioned 'defective sys- tem, and it is high time that our large merchants unite and by combined action establish a short credit system. A vast amount of money has been sunk in consequence of failures. Stocks of merchandise had to be sold at auction prices, with which houses of ample means and of first class standing could not compete, lieduced consumption would even 1 27 not readily buy at those figures, and the reaction on our wholesale dealers and importers has become most distressing. This distress and disgust prevails to such an extent that a great many of our merchants and importers would willingly sacrifice a large amount of their capital if they only could aell out and leave the country. A second cause, hinted at before, is that the pro- portion of our actually working population and that which should make the mediator only is not in its healthy limits. In our better educated classes we meet with an unwillingness to do actual work and to soil their fingers, which is conspicuous especial!).- in our cities, w^here we can find numbers of men, who are satisfied with the smallest salaries in offices and as middlemen, who could, even under existing circumstances, double their earnings by some me", chanical pursuit. To do work is still more or less a disgrace with us, whilst our neighbours have overcome the prejudice. They keep their independence even if working at a trade, and add considerably to the average standing of their working classes. To this spirit can be attrilnited some of the best results of our neighbors, and a great many of their labour-saving machines owe their origin to the su- perior intelligence brought to bear on the work. Besides this unwillingness to enter upon mechanical pursuits, we fiad alsD that either for want of stamina or actual capability we do not get the same amount 28 > l^i of work out of our men, which in some branches is no small item. For instance a brick-layer will not lay more than six to eight hundred bricks a day with us, whilst the American contractor can calculate one thousand bricks, laid in a straight wall, to be a days work. Not as a criticism, but simply as another reason why we do not get the fullest beneiit of our productiveness, we may be allowed to hint at the great ^iany holidays of our French population, which in some parts of the year interfere materially with steady work. Further, in our schools no due notice is taken of the technical sciences. It is the cause why so little knowledge about them and their close relation is to be met with, and why being quite an out of the way iind foreign matter to us, we do not enter more readily into promising enterprises. The results of engineering and mining so far attained iail to prove that our academies which make these studies speciali- ties are eflicient. If we want to do something important in these branches we have to send to Europe for experts. Further, there is no spirit to promote technical knowledge amongst our industrials themselves or to exchange practical experience in their dillerent lines. "We are in want of a popular organ, which wc aid have especially this object in view and which by the close observation of the world's progress in all directions woula give hints and practical advice to our tradesmen and manufacturers. 29 Further, if the industrials of similar branches would unite for the purpose of representing their common interest before the people and Parliament a great deal of good might be derived, especially so if this would have the effect of doing away with exist- ing jealousies, promote an even and healthy mode of business and a sharper division of work amonn-,st the different branches with a better and cheaper production in the end. Lastly, our freighting and shippinrr within the bounds of the country might bo improved and new lacihties opened. A decided change lor the better can be recorded since the last two months. Before this time, however, bulky and weighty goods could be laid down cheaper into Toronto and Hamilton from New York, Boston, Portland and even Phila- dclphia and Baltimore than from the principal ports of our own country, which was the cause that a deal of business had to be left to our neighbors. It is also to be hoped that the expectations connect- ed with the opening of the Intercolonial liailroad will be realized, and that the interests of the maritime provinces become more identiiled with ours, which would no doubt facilitate the settlement of difficult tarift questions materially. The opening of a direct line of vessels to the West Indies would also,-be of great advantage to the country, but as long as our tarills prohibit the re- fining of sugars, we cannot predict long life to such a line, which must remain a chimera as long as 30 no abundant freighting material between the two countries can be secured. TO SUM UP. Let Grovernment give us a judicious, but stringent protective tarifl'to foster our industry in its infancy. Let it organize the Department of the interior on the model of the American one so as to distribute widespread knowledge in regard to fertilizers, the latest improvements in agriculture, and let it use all energy to promote the starting of agricultural in- dustries. Give us legislation making the replanting of forests compulsory or offering premiums therefor. Then the duty of the people will be plain. In- dustrials insured of stability must reorganize their manufacturing establishments, mills and shops on the latest improvements, regulating their production according to the demand and supply on a more rational and economical basis, open out new branches of industry, for which with a fair assurance of suc- cess capital will not be lacking. Merchants must take a firm stand to abolish the pernicious credit system. Farmers and agricultural- ists must give their soil, in the shape of fertilizers, ■what they take from it, and rich crops will soon repay them for the outlay. Let every one. Government and individuals, put their hands energetically to the w^heel and we shall i 31 soon enough run smoothly on the high road to fortune. If any of the above improvements urged were not feasible, the writer would be to blame for laying bare the sore spots of our commercial legislatioir, trade and industry. Only united and vigorous eiibrt is required to promote these improvements • it becomes therefore the duty of every one to do his share. The writer's .nly motive in penning those lines IS to contribute his mite towards paving the way to renewed prosperity of the country.