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 i 
 
 Imperial 
 Consolidation 
 
 IN 
 
 Commerce 
 
 AND 
 
 Defence 
 
 in rM()5. MacF AkI.ANH, I . k. 5. C. 
 
 <»0 
 
 OTTAWA 
 JAMI.S HOPi: & CO. 
 
Imperial 
 Consolidation 
 
 "1 
 
 IN 
 
 Commerce 
 
 AND 
 
 Defence 
 
 liY rHOS. ,\\.\c:FAKLANE, F. K. S. C. 
 
 OTTAWA 
 lAMHS HOPE V.V C:u. 
 iSy7 
 
CONTENTS. 
 
 Cn.M'TI'K I. 
 
 Introdiictio]! 
 
 ClIAl'TI'lR II. 
 
 Im])crial Kcci])r()cit>- 
 ClIAl'Tl-n-t 111. 
 
 An Inipfrial Customs rnion 
 
 Cii.M-'ri'K 1\'. 
 
 Iiniierial Ivxpcmliturcs 
 
 ClIAl'Tl'N \'. 
 
 An Inijicrial Tarifl 
 
 ClI.M'TI'K \'I. 
 
 The Princii)k' of Protection 
 
 Cmapti;k \'II. 
 
 Inii)erial Interests 
 
 ClIAl'Tl-R \'III. 
 
 Colonial Action 
 
 ClI.M'TlCK IX. 
 
 Imperial Legislation 
 
 3 
 
 4 
 
 lo 
 
 12 
 
 •5 
 
CHAPTER I. 
 Introduction. 
 
 It Ih iiow iihdUt 2r» yt'iii'H since tlic ti'im 
 "lUilH'ilal Uoiisolldiitlon" wis llisi uscil, 
 1111(1 tliat by I^iM'd Hcauoiisltfld in one of IiIh 
 spccelieH, the obji'ct of wlilili was to lii- 
 wlltutc a coinparisim bi'tweoii Liberal niiil 
 l!onservative prluclples. In order lliat our 
 readers may be able ttj jud;;e of the Hlj;iiiil- 
 
 Cailee of tile Words, we ()llote from tlie 
 
 Hpeeeli ill ((iHHiloii the following: extract:* 
 
 "Uelilleliieu, there is another and Heeolid 
 grout object of tlie Tory party. If tliu lirst 
 Is to maintain tlie Institntions of tlie (-otin- 
 try, the sceoiul is to uphold the lOnipiie of 
 England. If yo;. looli to the history of tills 
 country since tlie advent of Lil)eralisui--40 
 yiiirs ajio— yoii will tind tlial there lias been 
 no effort so continuous, so suUl.ie, support- 
 ed by so much ouerw, and curried on with 
 so nitich ability and acumen, as the at- 
 teniiits of Liberalism to effect the disinte- 
 gration of the Knipire of Kngland, and, 
 geiilleinen, of ail its ell'orts, this Is the one 
 wliich has been the nearest to success. 
 Stttlesnieii of the highest character, wrltws 
 of the most dlstluguisiied ubility, the mosiL 
 organized and efiicleut uieuus liuve been 
 employed In this endeavor. It bus been 
 proved to all of us that we liavo lost money 
 by our colonies. It has been shown with 
 precise, with niathemalicul deiiionsti-at.ioii, 
 that there never was a jewel in tlie ciown 
 of Kngland that was so costly as the pos- 
 session of Indhi. How often has it beiii 
 suggested that we should at once emanci- 
 pate ourselves from tills Incubus. Well, 
 that result was nearly ncconiplishcd. When 
 ihcse subtle views were adopted liy tlie 
 country under the plausible plea of grant- 
 "ng self-government to the colonies, I con- 
 fess that I myself thought liie tie wus 
 broken. Not that I for one object to self- 
 governuient. I cannot conceive how our 
 distant colonies can liavc their alTaii-s ad- 
 nilnisteri'd except by self-goveiimeiit. Self- 
 government, In my opinion, when it wa.s 
 ♦BeucousUeld's speeches, vol. li., p. ri:{i). 
 
 conceded ought to have been conceded as 
 part of a greut policy of Iin|ierial ('oiisoii- 
 dullon. It ought to have been acH'onipaiiied 
 by an Iniperiul 'rarilT, by securities fmr the 
 people of Knglnnd for the enjoyment of 
 the nnapproprla't'd lands which lieloiiged 
 t.o the Sovereign as Ilieir liustce, and liy a 
 military < ode wlilcli should have dellncd 
 precisely the means and the responsibili- 
 ties by which the colunlco sliould i)e de- 
 fended, and by which. If iiect^sary, this 
 <'ountry should <,iili for aid from the colo- 
 uies themselves. It ought further to have 
 been a<coinpanied by the institulion of 
 some representative council in the metro- 
 polls, which would have brought lii i|o- 
 
 nies Into constant and continuous lelations 
 with the home governmeut. All this, how- 
 e\or, was omitted, because those who advis- 
 ed that policy— and I believe their convic- 
 tions were sincere — liKiked upon the colo- 
 nics of Kngland, looked even upon our con- 
 i^ectiou with India as a burden upon tills 
 country, viewing everything In a llnaneial 
 aspect, and totally imsslng by those mouaJ 
 and politlciil considerations which make 
 nations great and by the Influence of which 
 alone men arc distingul.shed from animals. 
 Well, what has been the result of this at- 
 leinpi (luring the reign of Liberalism for 
 tile disintcgnitlon of the Kmiiire? It has 
 entirely failed. Hut how has It faiiedV 
 Through the sympathy of the colonies with 
 tlie .Mother Country. Tiiey have decided 
 that the lOmpIre sliall not lie destroyed, 
 and. In my opinion, no minister in tills 
 ciiuntiiy will do his duty who neglects any 
 opporiiiiiily of reeoiistructing as iiiucli as 
 possilde our (Jolonial lOnipirc, and of le- 
 spondlng to those distant symiiuthles whicii 
 may become the source of inciilculable 
 strength and hapiiiness to the land." 
 
 In tliese remarkable sentences Lord Hea- 
 conslieid has stated, among otiier tilings 
 well worthy of our atleiitioii, the mailers 
 whicli ought to have been arranged at the 
 
INTRODI'CTION 
 
 t'liic when s<'lf-K<)Vi'rnini'nt wan cMHifoi-n-d 
 upiiii the ciiloiilcB l).v (Ii'fUt Itrlttilii, all <>) 
 w lilcli cou^tlUKiM tbc wiiik of luiixTlal ('<>ii 
 Holldaliiiii. or Fcdi'i'atloii, and Httll riMiialiiM 
 to be plaiiiKMl and cxrcnti'd. Ab in Lord 
 lieaconHtlcld's time provision has »llll to 
 br nind"' for iiii Imperial tarllT, fi>r a pio- 
 ptT H.VHtoiu of HiatK-aldt'd i'nil(,'ralloii io 
 Sfttle oiir Crown liands, fop I he dofciKc 
 of the Knipli'c and foi- Imperial lepresenta 
 tlon. ISut to repair the erroni and omtssluns 
 uf oO yearu ai;o 1b a diflieiilt. tusk, and one 
 wlileli Is only now Ix-Klnning to bt> B«'rl()us- 
 ly conleuiplated by lOnKlisli Btatosmen. It 
 Is only now that they are beginning; to re- 
 spond to tile "dlslant sympathies" inentlon- 
 t'd by Lord HiMi'onslleld, tiltliouKh lliesi' 
 have been dl^itlnclly euouKli exiiressed l>y 
 the c'oloules dnrliiK Ihe last 15 years, and 
 more especially In 18'Jl. 
 
 The uiulsslons wlik'h were ennniurated by 
 Lord Heaconslield were many and serious, 
 and 11 Is perhaps too early yet to attempt 
 4x> Indicate bow tliey should be attended 
 to in some genc>rul scheme of Imperial 
 Federation. Uut two of tbem have already 
 attracted tJie aftenilon of the UIght Hon. 
 Joseph Chamberlain, M. I'., Secretary of 
 State foir the Colonies, who thus expressed 
 himself In March, 1800: 
 
 "We mny endeavor to establish common 
 Interests ond common obligations. When 
 
 We have done tlint It will bo nntnrnl tliat 
 some sort of representative authority should 
 urovv up to deal with the Interests and th" 
 oIiIIkmIIouh we have created. What Is the 
 greati-st of our common obllgatloiiB? It in 
 Imperial tiefence. What Is tiie greatest of 
 our eiiiiinion inlerestV It Is Imperial fade, 
 (Hear, hear.) And tliose two are Very 
 closely connected. It Is very diflleult to 
 •see how you eau pretend to deal with the 
 great iiuesllon of Imperial defence wlllioul 
 b.ivlng llrst dealt with the (piestlon of Im- 
 perial irade. Imperial defence is largely a 
 matt*v' of ways auil moans and dependent 
 upon the li-^CMl und otiier comin«'relal ar 
 langeiiienlH you luiiy nialie; and, therefore, 
 the conelusloii (o which I arrive is tills 
 that If the people of this country and the 
 people of the colonies mean what they iiave 
 been saying, and if tliej Intend to approach 
 this iiuestloii of Imperial unity in a practi- 
 cal splril, they must approach it on its 
 comnierelal side." 
 
 Nothing can be more appropriate and 
 practical than these reiiiarks, and the pre- 
 sent writer proposes in tills essay to con- 
 sider the subjects which Mr. Chamberlain 
 points out as those which, before all otliers, 
 deserve consideration by tiie people of 
 Great and Greater Hrltaiu, and to elabo- 
 rate In some detail a scheme for effecting 
 some degree of Imperial cousoiidatlon lu 
 matturs of Imperial commerce and defence. 
 
 CHAPTER II. 
 Impkrial Rkciprocity. 
 
 The British nation, or rather the British 
 Kmplre, or (as it might be called In imll;i- 
 lion of the old "Holy Uonian Kmplre of 
 (Jermau XatioUs"> the Lnited Kmplre of 
 British Natluii.s, Is the only modern politi- 
 cal ('ominunity in the whole world, owing 
 allegiance to the sjinie sovereign and en- 
 joying the prolecllon of the same Jleet, 
 wlileh Is destitute of the cement of a com- 
 mon material interest in Its comnieiclal je- 
 lallous. It resembles the stones In what 
 is to be a mass of concrete before the ce- 
 menting material Is introduced, or has had 
 tune to harden in its interstices. Tlie 
 I nited Kingdom, which is the largest stone 
 li' the mass, and Is in possession of tlie 
 liegemony of the British Kmplre, is equally 
 as closely related cominarcially with for- 
 eign countries, as she is with her own 
 daughter nations, and had. Indeed, pledged 
 herself to the former never to accept com- 
 
 mercial advantages in the markets of the 
 latter which were not enjoyed as well by 
 the aforesaid alien nations. It Is not the 
 object of tills essay to enquire how all this 
 <;ame about. It is assumed to have been 
 an unnatural state of thlng.s, and It Is now, 
 happily, one which is to go out of oxist- 
 euee next year. Wiiat is now to be con- 
 sidered Is the liest method of cementing 
 together the loose fragments above refer- 
 red to, and so reUectlng the commercial 
 consolidation of tlie British Empire. 
 
 Such consoildatiiui has, wltliln tlie last 
 ten year.s. not infrequently been spoken 
 and written of as "Imperial Ueciprodty," 
 or as "British Commercial I'nlon," tlie 
 object being to Improve the trade betwi.xt 
 the various divisioris of the Empire. Sucii a 
 union means, of course, a combination of 
 fae various members of the British Km- 
 plre by certain arrangement for mutual aid 
 
Impi;riai, Rkciprociti' 
 
 5 
 
 niitunil tliMt 
 liurily Hhouhl 
 t'His and th'* 
 
 What 1h tiK- 
 itlollH? It IH 
 ■ j,'rt'iitcBt of 
 pirlal t'liili'. 
 ro art' vi'i-y 
 ' tllfllctilt to 
 (■111 with thi- 
 I'lK'f w I thou I 
 slloii of Im- 
 
 Is laiifi'ly a 
 Ml dcpi'iiili'iil 
 iiiit'rclal iir 
 III, therefore, 
 he Irt Mils 
 itry and the 
 at they Jiavo 
 
 to iipproaeli 
 
 in a praetl- 
 h It on Its 
 
 oprlato and 
 and the pre- 
 ssay to con- 
 Chanibcrlaln 
 re all others, 
 e people of 
 d to elabo- 
 for effect In R 
 MlldatloD lu 
 and defence. 
 
 rkets of the 
 as well by 
 t Is not the 
 Low all this 
 > have been 
 id it Is How, 
 lit of exist- 
 to be con- 
 f cenientliiR 
 iibove rofer- 
 conimerclal 
 pin\ 
 
 in the Inst 
 leen spoken 
 teclproolty," 
 j'lilon," the 
 ade betwixt 
 )Ire. Such a 
 iblnation of 
 HrlUsli Em- 
 luutual uld 
 
 and IntiTcoiirHe which do not extend t>> 
 forrlun iiiitioiiH. It nrei'Msarlly Involven iiiu 
 tiial pMrtielpation In cirtaln advantii^eM 
 fiiMii wlile'i (ithiT eouiitrli's are exdndi'd. 
 Till' roiiinioiii'st fitriii III' Hiii'ii a eoninn-n-ial 
 iiiiiiiii U lliat iii'i'Ni nti'd liy the I'lilti'd 
 Siiiti'S, by the varloiin UlMKiloni>< and priii 
 rIpalltieH eon>titutliiK the Cerniiui Km 
 P'l'c, and by tlie dllVirenl provlneeH wlilih 
 rorni the l)onilnlon of Ciinada. Sui'h iifiinii 
 
 liiiividi'S fur perf' ft fi loin i<( tnidi' In' 
 
 twi'ill the slali'H or pliivllH'i'S so boliliil In 
 Ci'tlnr, with more or lenw rcslrli-llnn of In 
 li'icniirse a" retfards ednimrrei' willi utliiT 
 i-oiintricH. Tills roHtrletlon usually asMiimeH 
 tlie form of duties upon IniporlH, tlie pro- 
 CI eds of which arc, in iniiny eases, rc(|iilr 
 I'd fi»r p'lrposcs of revenue. Nn nihcr plan 
 of ciininn'rclai fedciMliuii hiis had any sue- 
 cissfiii ixislciicc In the xMirid's experlciic". 
 and, tiicri'forc, when a ItrDlsh ('ominercl,ii 
 I'lilon Is mooted It Is at oiiee taken to 
 mean, on the one hand, free trade iM'twIxt 
 tile various parts of the Kmpire. iiikI. on 
 the oilier hand, ;i larllT of some dcscilp- 
 tiiiii, lilserinilnatInK apiliist foreiirn iia 
 
 tilillS. 
 
 But perhaps this ili Unit Ion of a emu 
 nierclai union may not he satisfa<'toiy in 
 iliosc political eeoiininlsts wlio advocate 
 the ;jreatcst possible freedom nf trade, not 
 only between tile illtegiai |i,i>-ts nf the 
 same fedenitlon, hut lictween sucl\ nirtrre 
 gated coiiiniunliles and other nations 
 tliioiiuhout the world. Possibly their Idea 
 of a coininerclal union Is unrestrleted cnm- 
 mcrce, not. only between lis members, but 
 with all the wurld besides. Il so, li Is one 
 of ihe-e nnreallsable eniiililiMl inns that have 
 had nn existence In the i»ast, and do not 
 seem possible In the future, liet us sup- 
 pose, for Instance, the various obstacles 
 In the .shape of tariffs that :ire said to ob- 
 struct trade between the Uiltisli po-sesL 
 siniis at tile iireseni time |o lie enllr"ly 
 remov'd, nr to be all reiiindelled after ihe 
 KuKlisii fashion, withmit the iiistltnllnii nf 
 
 any Imperial tarilT leviiiitl i fniel-n jm 
 
 portiillmis; would it lie pnsslbie to look 
 iil)on the result of such an arranjjenuMit ,is 
 a "union," In any coinuierciai sense'.' cei- 
 ♦:alnly not: at any rate, it could not be n- 
 Kardid as an Improvement nn the unlnn we 
 at present enjoy. It seems lh;il no mai- 
 ler how the prcM'nt I'.ritlsh tarllTs may be 
 nuKlifled or improved, such ehaiiRes would 
 not bring r.rltish possessions Into clo.scr 
 union If the (picstlon of a common cus- 
 toms tariff, to be iinpf>sed l»y all of them 
 
 as aifaliist foreign countries, were kept out 
 of coiislderailon. 
 
 Since, tlieiefnre, a Ilrltlsli c.immercl.il 
 itiilon Involves the Impnsliinn nf dutios on 
 'mpoiis, K Is neccKsary to return to the 
 coiishleratlon of tlie (jiiestion us to how Ihe 
 simplest form of It, Indicated above, would 
 answer fmr the whole Mritish i:mplre. 
 What would be the conH<M|iielice If abso- 
 lute Internal free trade were adopted In 
 coiijnni tloii with an Imperial tiirltl".' What 
 
 wniiiil be th iiise(|uene(. If the amount 
 
 nf revenue at present dei-ived from cum- 
 
 tolIlM duties IhroUKllnMI tile IClllpIre were 
 oblaiiied, nut by liixlii« Hrlllsh products, 
 lull by diilles nil fnieli.'n imiiorlallniis-.' It 
 Is In snlvlii;; such pinblenis as these tli.it 
 leciiiirse must be had In .Sir K. W. Itaw- 
 •oil's "Synopsis." in wlilch the liicessaiy 
 IlKIUes were tliveli for I lie year IMS."), since 
 
 which lime no otln r cniiipiitalloii has been 
 made. .V.cnrdinK lo the statistics of this 
 "nrk. it appears that the sum of t'.",7. 1N!i.- 
 •-•rt was raised in I lie year is.s,-, jn (i,(> 
 various parts of the Kmpire, \,y duties mi 
 iiiiporls and e.\p(.i-ts. In the same year the 
 \;ilue of the Imports from forcltfii countries 
 into tlie Kmpire was as follows: 
 Into Great lirltaln and Ireland. i''.'N(!..'"i(M;,iMiii 
 Into India, ("eylmi, .straits 
 Seliiements. Laluian ;ind 
 
 Maurltiiis 24„'n7,n(lft 
 
 Into C'inada and Newfoundlniid 1'_>.7.'!i!.omii 
 
 Into .\iistraiasia (!,7,">1,ii(M) 
 
 Into West Indies, Honduras 
 
 and I'.ritlsh Ciilana :{,i.'i)Ci.iMiO 
 
 Into .\frlca 1,<N!1,ikiii 
 
 Intn (illirall.ir, Malta, I'.er,- 
 iiiiida and the I'alkland Is- 
 lands I,"4,n(i0 
 
 Total i','m,Hll.(Min 
 
 .\ simple ealeiiiatinn slmws tlial it wou'd 
 lie nccess;i,ry In linpnse a duty of 11.1 per 
 cent, oil lli!s ainniint tn nlitain llie revenue 
 above mentioned. .\'i ,i;{rce iliai revcnoe 
 must be r.iised in I ae '.ari'nis possrssions; 
 cplnlons may vary as to the manner of ob- 
 tainliiK It. If It were propose<l to raise 
 tliai part nf it now derived from customs 
 duties by a duty of 11.1 per cent, ad valo- 
 n 111 on foreign Impnrts, It would become 
 necessary lo ask. imw nnich would, in this 
 case, lie collected in the various divisions 
 of the Kmpire. The fnllowlng statement 
 jrives the answers and compares the 
 amounts, with the sums actually raised at 
 present from customs duties: 
 
ImI'I'KIAI. UllU'ROCITV 
 
 I'l'llfl'I'llH l>f Allioiilil of 
 
 All ml viilo <'ii(ttiiliiH 
 
 r«'iii «l(ii) iif iliitli'N 
 
 til |i.i'. Ill) now 
 
 I'lHrl^ll |||||||M. I'lllHt'll. 
 
 Ill (iri'.'it Itrlttiln aiul 
 
 Jri'iiiiiil i:jl,8iiH,H'j(l iin.N27,(HKi 
 
 III liulhi,(^-yli>ii.Sti'iiltH 
 
 Si'llii'iiiciits, I..1I11111II 
 
 iiiHl Miiiirlllurt J.7iil,«i»7 :i,fJ7.:tlil 
 
 III < iiiiiiilii lUKl New 
 
 I'oiiiiilhiiKl l.ll;i,»HMl 1,i:til.77.'. 
 
 Ill Aii'.lniliihlii 7l!»,:«ll 7,l"."J.ii:il 
 
 III Wi'Nl lllllli'M, Ilntl- 
 
 iluniH and ItrlilHli 
 
 (iiiiiiiui ;!r.:.,stM; iii'.Ml.'i 
 
 III Arii.il 117.771 i,i7r.,j:;(i 
 
 III <;ilirMliiir. Miiltii, 
 llcrniiiilii iiml lli<- 
 Falklaiiil InIiiikIm .. 17,(HM l.'7.711 
 
 i::»7,i(M,()'Ji £a7.iMi».j7i 
 
 A kIiiiii-i' at llili Ntnlt'iiicnt HhowM tliut n 
 L'hiinK<- fndii the pii'scnt systiMii of Icvylii;; 
 I'llHtoiiis (lllllcs Id one of llllcriial fl'fc 
 tniilr. wIMi nil oiitwani Iinpcrliil tarllT of 
 11.1 prr ('(Mil., wciiilil occasion an liicrv'i;sc 
 In the aiiioiiiit ralHcil in (irrat llrllalti of 
 'Mi per cent., but tlinl. in tin* cast- of tlic 
 colonli'H and dopcndfiu'lcs, the fi>llo\vliiK 
 liiiini'iisc limHcs of revenue from customs 
 
 woiiM be sustained: 
 
 Per Cent. 
 
 Ill India, etc :J1 
 
 III raiiiidii, etc (t.'i 
 
 III Anslnilasia K) 
 
 III West IndicH, etc fli; 
 
 In Africa iC 
 
 III Cllmiltar. etc Sit 
 
 To make up these l<>ss<>s by a resopt to 
 diPoiM taxation would be a ''oiirse utterly 
 Impossible for any colonial statesman, and. 
 in Canada. It would be one of doubtful le- 
 gallty. It ml».'ht be claimed that Creal 
 Krltjiiii would make up the d<>tlclenc|cH out 
 of her Increased revenue from customs, but. 
 this Cdurse would no doubt be ileenied as 
 Imitracticable as any other. 
 
 Kroni the forepdiitf it si-ems plain that In- 
 t<r-I5rltisli free trade would utterly deniiiu' 
 the tli'.ances of all the posKesslons. Indeed. 
 it lulRht be argued that demanding It 
 voidd be an Interferenco "with the exist 
 In;; rl^'hts of local parliaments, as re^nrds 
 local alTairs." It follows tli.it the iiiaiiacc 
 meiit of the various rtrllisli tarifT-. how- 
 ever chaotic and void of i»rlnciple tliey 
 may appear, must be left to the authorities 
 at pr€>sent in oharKe of them, and nny siik 
 «estlon for nKKllfyiiiK them must bo mail • 
 with the greatest <-are. and with due con- 
 sideration for tlie flnanclnl necessities of 
 each separate p<>s8es.slon. In the |>roceed 
 Ings of the first Colonial (Vinference tbl« 
 was fully recognized and at the same time 
 
 the policy of dlwirlnilnallon In favor «if 
 ItrltlKii comnieice was diKCUHMi d. Un the 
 latter point. .Mr. Service (from N Ictortn) 
 
 eXplCMHCd hIniHelf IIH fniloWH: 
 
 "I miiHt Hiiy that uhllMi the <|ue-<tton of 
 a common tarllT ihrouuliout the whole Km- 
 pile liiiH been niiMiietl a^aln and aKiilib 
 it has always M'emed to me lni|ioHHllile, 
 probably because I did not tliinU It out. 1 
 knew It was ImposHllde for the .\iistrallaii 
 colotiicN, for examide, or Canada, to ac- 
 cept the priiK^lple of ciHiimercliil liitnrc<Min»e 
 wlileli exists In i;iiKland. lint I miwt <-r>ii- 
 fesK tliiit a rem. Ilk that fell from Sir Sam- 
 uel Criftlllis awakened a new sei of Ideas 
 in my iiiIikI: and that was, 'that It wiih not 
 necessary that all the coiii|ioneiit pails of 
 the rCiiipire should lia\e the same tariff In 
 order to carry out this Idea that Is to tuiy, 
 'that If you placed a dllTerentlnl duty as 
 betwein the liiijierial iM'odiict-' and the 
 fiirck;ii products, it would not matter what 
 the precise local lurllT hajipened to be.' I 
 never liNiked .it tlie matter In that ll^ht 
 before, but I have thought iiboiit It a giKjii 
 deal slnc(>, and I inUHt say It appears to nie 
 at present that there Is a (food deal In that 
 point." Sir Samuel Orlftlths, from (iuiM-nH- 
 laiid. ill his letter of Manli 'J:H, ^HH7. to 
 the Sccietaiy of State for the ('olonles, 
 wrote on till- siinie subject as follows: 
 
 "I hope that an opportunity may n<rls" 
 during the conference of diHcnssIng the 
 practicability of cons<i|ldatlng and main- 
 taining the unity of the Kmpire liy tiddliiK 
 to the e.sisiliiK bonds a deiinlte recognition 
 of the pilncliile that Her .Majesty's Hub- 
 ji'cts, as such, have a <'omniunlty 
 of material Interests as distliiKulsheil 
 from the rest of the world; and 
 of conshierinK liow far effect may 
 be kIvcm to this iirlneliile by the sev- 
 eral countries formliiu' jtart of Her Mn- 
 Jesty's dominiciiis alTordlii« (o each otJier 
 couinieicjal cdiicesslons and advantages 
 k'roater than tlii>se which are grantwl to 
 subjects of other slates. \Vlth<Mit for a 
 moment suggesting any interference with 
 the freedom of each legislature to deal witli 
 the tariff of the country under Its jurls- 
 dic.tloli. I coiictdve that suidi freedom !« 
 not incompatible wltli :\ general recognition 
 of liie prln<lple, that when nny article Is 
 subjected to a duty on lmi>ortatlon a 
 higher duly slinuld hi' liiipo«ed on gyxMls 
 e< iiiiiiu from foreign countries than on thoso 
 Imported from Her Majesty's dominions.'" 
 
 The same polley was endorsed by the 
 gemral committee of the Imperial Federn- 
 Uon League In tJanada, et a meeting held at 
 
IMI'KKIAI, KKCU'ROCITV 
 
 OtUiwii )>n Juii<> 20, 1HHT. niid liirK<>l.v 'it- 
 toiuliil liy iiii'iiiImm'h of I'lirllniiii'iii. It wmn 
 then roHolvi'd: "TliiU tliln intM'tliiic KUt{i{*'<*t<* 
 
 fur I'ciiistili'iatliiii liiiticrlal ri'i'lpi'iM'lt.v iihIIk- 
 iraih- policy in<>«t In iicoortlaiici' with the 
 iiliji'ctM i>r tlif li>iiK<i)' mill ri'ltiTiiti'H till' 
 iipliiliMi Hint tnitli' lii'twi'i'ii (lllTi'i'i'iit piu'tM 
 i>f till' Kmpli'i' hIioiiIiI tiiko plac*- ii|iiiii iiniri' 
 fiivonilili' liTiiiK tliiiii Iraili' with towlnti 
 
 lllltlotIN," 'I'llJN nHllllllloll WIIM I'l'lll-flld'll 
 
 at till' atiiiiial xi'in'i'al iiirclliiK nf llir Iimikiu' 
 111 Caiiailii, lii'lil III 'riiiciiilii (III Miii-rli 'Jl, 
 INNM. "That tlic> Iii)|i«>iiMl Kiilrratloii Li-a 
 
 1{U(> III OiiiiaUa iiiaki' It one of tl l)Jri'l« 
 
 of ilii-lr (>ri{iiiil7.iitli)ii til ailviifati' a li'iiili* 
 IKillcy liclwiH'ii iiri'iit llrltalii aiitl Iiit coin. 
 iileH, by iiicatiH iif which u illsi rliiiliiiitlnn 
 III the i'Xrhiint;<' "f natiirjil aiiil iiiaiiiiractiii 
 cil iii'iHliictH will Ix- iiintlc III favor of one 
 at\othi'r, and aitaliiHl foiclKii iialloiiH: and 
 that our friciidH In i'arlhiiiiciit ai'c hcrdiy 
 • ailed upon to move In su|i|iiirt of I hi' policy 
 "f this rcNolntloii at the i-arlicsi pusslhli' 
 niuincnt." 
 
 This principle Iiiih also hit n rorniiilali'd 
 liy the I'livy (;ouncll of Canada, which hnii; 
 ugo ileclaied "that tiilde rtlioilld ho hm fret* 
 a« practlcahl" between thc> varioiis poi'tJoiu* 
 of the lOinpIre, havliiK reKiii-il Hnlely to Iheir 
 own InteicHts, and iiiuhtei^rcd hy any olill- 
 Kiitloiirt to treat others with e(|iiiil favor." 
 
 In April. IHltl, tile Inlted Kinplrc I'niilo 
 League was fornnd, wIiohc chief object Is 
 to evl.ilili>Ii "inutnally aih .intiiKi'ouH trade 
 relations anions; ail who .shaie alieuiatiii' to 
 Hit Majesty the yiieeli." Much more iiii- 
 portiint than the proce^'dlngs of such asso- 
 ciations are the culieliishitiH r* aeiied on thltt 
 Huhjeet by the Pa.;llainenl of (Canada and 
 fh(> M>cond C/olnnlai t;onfcreiU'e. On April 
 ■jS, isiti;, till, former iMnly iniHsed the follow- 
 ing resolution: 
 
 ■"riiat if and when the rai'llaineiit of 
 Great Itrltaln ami Irelnnd adnilts Caiiadlan 
 l>roducts to the markets of the I'liltiil Kliit;- 
 doiu upon uioiv favorable terms than It ac- 
 cords to the priMlnct^i of foreign countries, 
 the rarllument of CnnudJi will be prepai-ed 
 to accord correspondluK advnntaKcs by a 
 subfltantlnl reduction In the duties It Im- 
 pi>g(« upon lirltlBli iuunufu(;turi'd j;o<'ds." 
 
 A similar resolution Ih to be found amonf; 
 
 tlioH"' adopted by the Ottnwa «t»nfer«M)c«'. 
 It rends a* follows: "itcftoiveit. 'rtiiil tlilit 
 conference record lis iHdIef In the iidvlaii- 
 Mllly of It eiiHtoiiis arrangtMiii'iiL between 
 tjrput Krllain and her colonies, by which' 
 tirade within the Kiuplre may he placed 
 on a more favorable fnntliiu than that 
 which In carried on with forclKti countries."' 
 'I'licM- rcMklulliiiis prove ihat the moveiiipnt 
 III tax or of ItritUb ciininierclal iiiilon Imik- 
 di'Veiiiped ciuisldenible HU'cuttt.li, altliouKlt 
 no attempt IniK yet lH>en made to formnlntr 
 the d'talls of the meaMiire for brIiiKliiK if 
 Into evislenic. 
 
 So far as the iwcHcnt writer Is concerncMl,, 
 he Wiiiiiil rejoice If s;itlsfactory niodltlcn 
 tlons couhl he made in tlic e.xlHtiiii; tnrlffH' 
 thriiiiuhoiil the I^mpirc for the encoiimKe- 
 ineiil of Interllrltlsh trade. Itiit the pnic- 
 llcablllty of such arniiiKcnientH Is <ioubt- 
 ful. and they are not likely ever to be con- 
 Muiiiinaicd, for the foiiowiiiK rcasoiiH: 
 
 1. 'I'lie liilnrests conceriiid are t(M> varied, 
 Involviil and coiitlii;tlnK to admit of satis- 
 laclory ruiiiprniiiUe in the framiii); of hiicIi 
 rcclprocjil tarlfTs. 
 
 -. Such alletiipis would be rcKardiHl by 
 very many as pr' llmiiiary to the estnhllBh- 
 iiieiit of a system of ai-||lh'lal eiicoiiniKe- 
 nii lit to parllciilar maiiiifacturi-s; In short, 
 as a retui'ii to proteclioii. 
 
 .'!. lOveii If sur'cessfnl, tills syBtein of Im- 
 perial reclpnicliy, IIS it has been cjillcd, 
 would only iiillueiici- local Industries and 
 beiietU l''.iiKlisli or colonial tlnanceH , but 
 woulii Mi'i |in>>I(le ;iny nvcnue for Imperial 
 purposes, witlmut which a siront;, united 
 lOmpirc is impossible, 
 
 4. Such a proposal, whether made hy the 
 .Mother Country or a c!oloiiy, inlKht niiHon- 
 ably be characterized as luoi'i' or Icsk scl- 
 tlsli In iiiiture. and Intended eliielly for the 
 umterlal benetli of Its urlKinator. 
 
 'I"li(. problem of establishing a ItrltlHh 
 noiiinierciai iinlnn as^uincH. liowi'V.-r. n to- 
 tally liilVereiit .ispect, wlien the lilea of In- 
 tel feriii;; wiih existing tarilTs. or so modi- 
 fy iiiK them as to xlve them a recljinM-'al 
 character is abandontHl. and the plao of ob- 
 tninliiK a revenue for the coniniiui purposes 
 of the lOmplre, by means of an luiporlal 
 tariff, Is taken Into conslderntiuu^ 
 
 M^':^^ 
 
CHAPTICR III. 
 Ax Impkriai, Customs Txion* 
 
 i> 
 
 f 
 
 ■ 
 
 A ffw years nffCi n piizc wns (dTiTcd li.v 
 tin proprlt^tors of The Sialisi ii<'« I'Daimr 
 "For ihi' lU'st Schcnn> of an liiipciial (">is- 
 tonis Union," and the prize essays were 
 subse(|nciilly ptiblislieil. The wilier was 
 among the unsiiecrssfnl conipelltors. ami Ills 
 Bclieine was nol luaile iinUlic, Init its prin- 
 ciples nre those set fortli in the present. 
 essay. 
 
 These three words, "Imperial Customs 
 TJnien," suRsrest that the union refejred to 
 Is one of all the countries, enldiiies and de- 
 pilidelieles eiiiiiposini: the Hrilish ICmiiiri', 
 that, in all these customs duties should lie 
 levied for the purpose of raising reveinie, 
 ami that this revenue should be jipplled to 
 defray outlays for Imperial purposes. This 
 doflnition may he fairly dr.awn from the 
 ramc which has hoen iiiven to tlio comin<'r- 
 elal combination whi<li It is desired to 
 form, and the present writer is Inclined to 
 adojit it as indicating the objects of the 
 
 scheme which ho has to propose. 
 
 In drvlslng such a enstoms union of .all 
 British countries. It would probably be con- 
 sidered inadml^sible tci raise any of the 
 revenue above referred to by levying ad- 
 ditional duties on Intcr-P.rltish or Interco- 
 lonial l.rade. To do this would be to increase 
 the obstacles which already stand In the 
 w.iy of commercial union. 'What is i-eaily 
 to be desired Is the introduction of freer 
 trade within the Empire, combined with » 
 uniform pl.-iii of obtaining revenue for gen- 
 eral Imperial expenditures by Imposing the 
 customs duties above spoken of on foreign 
 importations only. 
 
 The present writer does not consider him 
 self nt liberty lo suppose that the phrase 
 "An Imperial Customs I'nlon" may be 
 understood to mean a combination of Bri- 
 tish countries for operating such a tariff 
 as would. In the first place, btMietU the In- 
 tirnal industries and trade of the different 
 parts rif the Empire, and he propos"s in 
 this essay to present a mode of forming 
 such a union "without Its Involving any 
 sanction to the principle of protection," al- 
 tliongh, judging from what he has written 
 on tile subject, the UIght Hon. W. E. 
 
 <iladstone is not of opinion that sucli a iWaii 
 can be liiouglii forward. 
 
 It Is (pilte possible, howev.M-. that the 
 d(fllnitlou of "An Imperial (.'ustoms lulon" 
 given abo\e may not llnd general accejit- 
 ance. Many pers<pns may not llnd It to be 
 sufliciiMil ly coniiireheiisi, c. It may lie said 
 that an Imperial customs union sli<mld not 
 only b.' one foi obtaining revenue for Im- 
 piTliil purposes by the imposition of cus- 
 toms duties, but thiit it should also Include 
 the construction of one tariff of customs 
 anil one tarilT only for ♦he whole liritish 
 Emiiire. .\ union of this nature would he 
 similar to that now existing belweeu 
 France .ind her colonies, or S|iain and hers, 
 or, as lias already been indicated, it niiglit 
 be anali>gous to that of the rnited States 
 of America. Neither of these cases Is, 
 however, (veii rcnii'iely iiaralKl to that of 
 the British ];mpire. whose dilTereiit divi- 
 sions ikie too distatii from each other not 
 only geograpliically. but pfditically, besides 
 diirering too much as regards the nature of 
 their re-;pectlve fiscal systems. The sug 
 gested system of one sole tariff might also 
 n semlile the zollvereln of the Cerman Em- 
 pire. The Institution of such a union as 
 that last mentioned would mean that the 
 rales of duties should be the same through- 
 on the whole Empire, that these rates 
 should be sufflcleiitly high to iuclud«' the 
 duties at present levied for local pijiposes 
 in almost every British cotintry, that they 
 should be Imposed and collected by one 
 auihority. and, by that authority. In part 
 redistributed to tlie various local govern- 
 ments of the Empire. Such a union willi a 
 single tarliT might also be understood by 
 some to mean the total abolition of all cus- 
 toms duties for local revenue, and the sub- 
 stitution for these of dLrect taxation In 
 order to raise the revenue in question. It 
 may at once be confessed tliat the present 
 wril-ris unable to put forward any scheme 
 possessing the character Indicated. On the 
 contrary he believes that a brief review 
 of the circumstances of some of the coun- 
 tries of the Empire will prove that such n 
 plan (i{ a customs union Is a complete Im- 
 possibility. 
 
 pel 
 
 e.\i 
 
 cos I 
 
 per 
 
 luK'i 
 
 foui 
 
 popi 
 
 vein 
 
 1 'om 
 
 autli 
 
 t;ov) 
 aid. 
 howt 
 Vinci 
 Don 
 mini 
 Briii 
 den 
 with 
 
 Ih-M 
 re, -I 
 
 vini'J 
 
An Impkriai. Customs Union 
 
 such il I'li'n 
 
 •, Hint tli«* 
 onirt I'ulon" 
 
 rl-iil ill l>t- 
 
 l\ll.l il 1" '"■ 
 may 1m' ''"'i* 
 I, slioiilil not 
 ,,„U' f"r Ii"- 
 tl.pu ot fU9- 
 
 •ilso liiclml*' 
 
 of oiistoms 
 
 vli.vlf Uiilish 
 
 l,,-0 WIHllll l>o 
 inn ln'IWfi" 
 luin ami li*"i'S, 
 tell, it i"i«l'^ 
 [Jiiltod States 
 ,.se eases is, 
 Ul to that of 
 litTiveiit (livl- 
 1,11 otU'T not 
 ieaUy, l.esi.les 
 till' nature of 
 IS. The 8V1K- 
 •iff uiiKht nlso 
 . Ceniiaii Kiu- 
 .\^ •! uiiii)U as 
 ii.an that the 
 ;uue thion>:h- 
 t tlu'se rates 
 to ineluile tU<' 
 \,,eal im'.ixises 
 ntry. tlmt they 
 Ueetetl by one 
 herity. i" P"'"' 
 loeal govern- 
 ;, union with a 
 umlerstootl hy 
 Hion of nil cus- 
 ,.. and the silb- 
 oct taxation in 
 in question. It 
 liat tlie l.re>ieUt 
 ard any selieine 
 licjited. On the 
 ;i brief review 
 UP of the coun- 
 ove that such a 
 11 ci>mi)lete im- 
 
 Among the first olrcumstnnces <if import- 
 aiici' that are to be note<l in coimei-ilou 
 with this m.itter are the faets that the rl^lii 
 of regululliiK their I'lOiil tarifTs lias already 
 been ("onceded to the self-KovornliiK, and 
 even some of the Crown eolonies, mid tliat 
 In the Hrltisli Kinplre there is no .>--ue,li 
 legislative body, In whiefi all Hrltisli eoun- 
 tries have reprwwntation, as corresponds 
 to the American Coiinress or the (ierinaii 
 UeiehstJitr. These two faets render the in- 
 stitution of any such system as tliat of tin' 
 I'nited States or tlie (iernian zollverelii 
 quite iiiiiiniefeablc. The eidiuiies of Sii.iln 
 and l''ranee are repri-sented in tlie I'arlla 
 ments of their resptctive Mother Coun- 
 tries, but tliat has never been tlie case with 
 Kritlsh colonies, and conse(|uently the Insti- 
 tution of one eonunon tariff for the whole 
 I'',nipire is coustitutionally impossible. 
 
 It is furtlii r to he eoiisideri'il lli.il ill a! 
 most every country in tiie l-^nipire revenue 
 is riilsed for hjcal puriioses fioin ciistoius 
 duties. In Knglaiid itself an amount of re- 
 venue is obtained from specille customs 
 duties which would prob.ibly exceed tlH' 
 whole pum required for iiurely Imperial ptir- 
 poscs. In (Janada »J0 million tlollars are 
 raisi'd annually from duties on customs, 
 which it is at, [tresent Imiiossibli' to dis- 
 pense witli. Here it is found that ICnjillsli 
 experience does not apply, and that the 
 cost of collecting the customs dutii'S Is l<'ss 
 per dolh'r than is the case wltlv those of tlie 
 inland rfevenue. This will probalily be 
 found to be the rule in all new and sparsely 
 populated countries. To replace the re- 
 venues from the customs levied by the 
 I>ominijn (toviTiimeiu with that derived 
 from direct taxation is imjiosisible, because 
 between the Dominion and the municiiial 
 authorities there intervene the rrovincJal 
 C.ovenimeuts, who at present niisc considor- 
 al>Ie sums liy direct taxes. Tlie.so are, 
 however, insuflieient, and the vari;ms pro- 
 viuces receive annual subsidies from the 
 Dominion, amountiuff in all to about four 
 million (loihu's. This is provided for by the 
 lirillsh North Amerlcii Act, and the bur- 
 di'ii cannot be got rid of by tlie Domliiioii 
 without the consent of the iirovllices. Tiie 
 tiist step, tlierefore, towanls adclilional ili- 
 rect taxation can only be taken by the pro- 
 vinces, who would thus be able to relieve 
 
 liie Dominion from paying the provinitlal 
 sub ■!"'."■ T'>er? b- no i'"'"<e!!t l!k"llh(jod 
 of any sucli action being taken by the pro- 
 vince'^, and, therefore, to iiiiote the words 
 of Sir .lohn Maedimald, "Hie Dominion l» 
 practically limited to iiidlreci taxation." 
 Mor< oMM-. til's liid'rcii t:i\:>'i"i ■; lovied 
 ill siiili a maimer as incidentally to benellt 
 tl-.ose manufactures wliieli a,re moi<' or less 
 sulUible to the Dominion. This principle 
 of piitteclion is adopted in oilier Hrltisli 
 IKissessions, and It would lie a very difll 
 cult matter, indeed, to procure Its coiii|)letc 
 abalid .iiment. In the West Indies it has 
 been found impossible to raise the neecss.ii-)' 
 revenues for carrying on the various gov- 
 ernments without imposing iluties mi grain 
 and flour, a itriKreeding very (lllTereiit in- 
 deed from tliat which obUilns apjiroval In 
 lOngland and In siuiie of the colonies. l-;veii 
 111 India, symploiiis are develoiiiiiy: which 
 go to |irove tiiat imiiort duties are con- 
 sidered essential to linancial streiigtli. If 
 the various priueiiihs which regiilato the 
 fr.imiug of the dilTereiit tarltTs of the Km- 
 piii' are eonsidereil, as well as the dltTerent 
 
 eoudiliolis limlej' wllieli all of Illeiii work, 
 
 il will be ackiiowjeil^,'! d Iliat their aboli- 
 tion cannot be proi'uied, and tliai the con- 
 st riKrlioii of a comnioii taiilV for the whole 
 lOmpire Is entirely out of the question at 
 the iireseiil time. 
 
 Ill eounection with and justifying this 
 conclusion ,tlie following extraet from Th(> 
 London Times of Seitt. UCi, iv.'l. may iie 
 quoteii: "We find no justitication exists 
 in liisiory or in loniiiioii sense for the state- 
 ment that liberty v.ith regard to tariff leg- 
 islation Is an alisolute barrier to political 
 unity. On the ei.'ilrar.v, we hold Ireedoiii 
 in this respect to be no more opposed In 
 IPiiiiciiile to the eoiiceptioii of uniiy ilian is 
 the liberty of local self-government In other 
 res|)eets upon which lie' whole falirli- of 
 Imiierial I'"e<liration is based. The coal 
 due of Loudon .md the river dues of Tans 
 li:i\e iiiodiii'ed no pej'eeptible effect on I lu^ 
 unity of Kngland or i>( France, am. v. ■ ,ire 
 unable, as a matter of theo •;■', to .•iduut that 
 till' iiossession of similar privlle-.'es with re- 
 giird to the imi)o-;ing of customs duties by 
 the colonies should act as an liis.iperablo 
 bar to the consolidation of the Kmiilie." 
 
tl 
 
 lO 
 
 CHAPTER IV. 
 
 Imperial ExPENDiTrREs 
 
 4 
 
 ! 
 
 Under this luading it b» pomes necossary 
 to enquire (1) Wlmt are the Iniperinl pur- 
 poses for which espeiKlitnres are iiect>HHiUT. 
 uuU, (2| Wliat is tlie iinionnt apprnxliiintel.v 
 of the outliiy whiclr they occasion'.' 
 
 When, nearly ;;(i years ago. Sir (JeorRr 
 Cartier was explaining to the i»ni'nons of 
 old Canada the provisions 'f the UrirNli 
 Ndrlli .Viiierica .Vet. so fiir lus tho«r applleil 
 to tlie ITovlncc of Quebec, he used, a; a 
 justilicatiou of many of these, tl>e words, 
 "parce <iue nous soinmes inonareh" -ues." 
 Throughout the Dominion to-day devotion 
 to monarchical principles, and loyalty to 
 Her Majesty prevail iind, n-) doulir, iliH 
 may also lie snid . onc.'rnini? ev< ry j\nt <,t 
 the Britisli Kuijure. .\t :li>' 'Colonial (Con- 
 ference of 1S87, the lolijwin.; niod"5e-.itlon 
 of Her .Majesty's 'itl.» wai Mpprov^'i liy the 
 representatives there ass inlil-l- •'Vlol<irla, 
 by the Grace of Coil, Qu"":i <f the I'niled 
 Kingdom (>( Great Urit.iia and Irelanl, vnd 
 of Its Colonies and Dependcncio.-', and E'n- 
 press of India." Nevertlieless, .'ill the ex- 
 penditures in support of the Imp-riiU 
 Throne and C(jurt have been borne by Eng- 
 land, lint, surely, if there is any onthiy 
 which can truly be cnllod Imperial. It Is 
 that which Is necessary to uphold the 
 Crown, one of the es&entlal i)Mrts of the 
 constitution of the Empire. Besides enjoy- 
 ing tlie advantages of stable inonarcliicai 
 government, flie subjects of the outer Em- 
 pire iretiuently nialie us" of the agen- 
 cies connected with the diplomatic and con- 
 sulnr service, and. therefore, India, and 
 the colonies ought to pay their share of the 
 cost. This remark also applies to the For- 
 eign and Colonial Offices, but in nmpnl- 
 tude and cost none of aieae •'Imperial pur- 
 poses" can compare with the Imperial 
 navy. The vast aqueous surface of the 
 glolK) is divided into naval stations, in each 
 of which "Britannia Rules the Waves." 
 The British fleet patrols the high seas like 
 a police force, giving security to the ship- 
 plug of the nations of the world, as well 
 as to that of Great Britain and her pos- 
 sessions. Not only does It render the coasts 
 of England secure, but It also protects those 
 •if Canada, Australasia, South Africa, In- 
 dia and the West Indies. With unparallel- 
 
 ed liberality the T.'nlted Kingdom has here- 
 tofore liorne the whole expense of this mag- 
 nllicent protectorate of tlie oceans. Be- 
 sides ilic naval estimates, there are other 
 expenditures for defence purposes, common 
 to tin- whole Empire. Such are the 
 costs of the defence and garrisons 
 of the Imperial fortresses, harbors 
 and coalinj.; stations spread over most of 
 the British possessions, the subsidies or 
 annual outlay necessary to connei't these 
 by submarine cables, and also for estaldlsh- 
 ing regular steamship lines to connect the 
 various divisions of the Empire, and secure 
 the most rapid transit of malls, passenge'-.s 
 and goods between them, as well as of 
 troops and munitions of war. 
 
 It does not seem possible to include 
 ,'iiiinu^' (lii'so "ciiiiniiMU Iiiii)c"-ial piiriioses" 
 the purely ni!litai-y defence of the Empire, 
 or of iiny part of It. That is or ouglit to 
 be the business of eacli particular colony 
 or dependency, many of whicli possess and 
 support specl:il departments of militiii and 
 defence. It would, for the present, at any 
 rate, be unwise to disturli this arrange- 
 ment, more especially because It appears to 
 have been taken into consideration by the 
 delegates to the Colonial Conference of 1887, 
 the majority of whom accepted unreserved- 
 ly tlie principle that land defence shinild 
 lie undertaken and paid for by the colonies. 
 The statenient of Sir Alexander Campbell 
 is especially exiilicit on this iioiiit. He 
 .said : 
 
 "The Imperial Government had previous- 
 ly given us notice of their intention to 
 withdraw from the colony Her Majesty's 
 troops, and they declared their resolution 
 to carry that out. The government here" 
 (i.e.. in Eondon) "agreed to undertake the 
 naval defence of Canada, tJie Canadian au- 
 thorities undertaking the land defence of 
 the colony. Upon that l>asis the confedera- 
 tion of all the provinces was formed, viz., 
 that H(T Majesty's troops were to be with- 
 drawn (the withdrawal was then in course 
 of being carried out), and that the local 
 authorit'es were only to undertake the land 
 defence." 
 
 Besides the burdens occasioned by the 
 necessity of providing for the defence of 
 
iMPKRIAl, EXPKNDlTl'RKS 
 
 II 
 
 1 bas \icTo- 
 
 f tills iiiag- 
 
 (>iiiis. Rt'- 
 
 nrc other 
 
 s, ('(imiiHin 
 
 I lire tlio 
 
 gurrisoiis 
 
 harbors 
 
 cr most of 
 
 lubaldii's or 
 
 IllU'Ct tlU'SO 
 
 i)r t'stablish- 
 
 coniicct tin- 
 
 ami secure 
 
 , passeiigi'v.^ 
 
 Well as of 
 
 to iiiclud'' 
 il puriinscs" 
 
 the Kmpiri', 
 
 or oiiKlit to 
 ii'Ular colony 
 
 possess and 
 t militiM ami 
 isetit, at any 
 Ills arrangi'- 
 It apiH^ars to 
 •ation by the 
 rc'iK-o of 1887, 
 d (iiiri'servcd- 
 'fcnc'c sh()\ild 
 
 the colonies, 
 der Campbell 
 s jioint. Ue 
 
 had prevlous- 
 intcntlou to 
 ler Maje.sty'B 
 olr resolution 
 rnuient here" 
 undertake the 
 Canadian au- 
 id defence of 
 the confedera- 
 1 formed, viz., 
 re to be wlth- 
 then In course 
 that the local 
 rtake the lond 
 
 doned by the 
 he defence of 
 
 the Empire, there are others countHMed 
 with Its '.xpauslou which should not Ik' for- 
 gotten. The warld Is on the move, and the 
 British ICmpire, being "ihe greatest sec\ilar 
 instrument for good knov;ii in our day," 
 must expand. No doubt people in lOngland 
 oft; u become uneasy at the oeciipation of 
 new terltory which now and then takes 
 place, and wlIJi g(M)d reason, for they have 
 to pay the bills which this expansion occa- 
 sions. In the outer Empire the pmcess Is 
 considered to be normal and legitimate, 
 A hesitation on the part of England to 
 pioceed In this direction Is sometlim^ re- 
 g.irded as a sign of national decadence. 
 AVIieii, recently, owing to the Inaction of 
 tiie English Government, the Neckar Is- 
 liiiid was lost to the Empire, as a laiullng 
 place for the Pacific cable, .some newspa- 
 pers in < Canada expressed dissatisfaction. 
 Still, it would appear that other authorities 
 besides those of England are not without 
 lilame in such cases, and also that It Is 
 expi ctlug too much from her good nature 
 to think that she should shoulder all the re- 
 8p<u)sil)ility and bear all the expetise In- 
 volved In mis and other instances of Im- 
 piTlMl annexation. Our Australian fellow- 
 subjects had a similar gjievance when Lord 
 I'erby deellmd to .iiinex New (luinea, and 
 ICngland has been blamed for not making 
 liiiger claims in South and (Central Africa, 
 iinil for not excluding othiT European CfOV- 
 e''iiments 'roiii sharing In such territory. 
 I if course each and all of the self-govern- 
 ing colonies imagine tlat It Is England's 
 liusiness to hand over to them the acqui- 
 sitions made In their respective neiglilK>r- 
 lioods, and without any tliouglit of eoin- 
 pensation. There must be something radi- 
 cally wrong ill nil this colonial seltisliness, 
 and It has probably arisen from the extre- 
 mely liberal way in which ■England, .-ilong 
 with her gift of responsible government, 
 handed over to her colonies, not only the 
 territory to be governed, but also all her 
 other a.«4sets situated within Its limits. 
 Vast land areas which had cost the Mo- 
 ther (,'ouiitry millions to conquer .-ind to 
 occupy. Including valuabi" Crown and 
 Ordnance Lands, and fortlflcxtlons. were 
 acquired by the colonies In the easiest way, 
 and this sei ins to have given rise to the be- 
 lief that the sam(> process might be con- 
 tinued Indeflnlti'ly. It is not at all sur- 
 prising that England should sonielimes pas- 
 sively resist such an assumption and ht*s!- 
 tate to use her fleet and armies for making 
 new annexations merely on the receipt of 
 hints or requests from the colonial govern 
 
 meuts. The truth is that the time has ar- 
 rived when the colonies should come to the 
 assistance of the Old Country In such uu- 
 derUiklngs In accordance with a systematic 
 and well consiih-red plan. If it Is thought 
 necessary for the safety or espausion of 
 tiie Empire to acquire new harbors, coaling 
 or telegraidi stations, Islands, districts or 
 coutineats, then they ought to be obtained 
 on joint account, and each psirt of the Em- 
 pire should bear an equitable share of tlie 
 expense of each new acquisition and of tJie 
 burdeas which occupation always iuvolvc»s. 
 All such eiiti'rprlses may fairly be included 
 umoug the Imperial purposes for which the 
 whole Empire should provide funds. 
 
 It Is not possible to estimate with ac- 
 curacy the total cost of these Imperial pur- 
 poses, nor Is this necessary In order to ex- 
 plain the plan of an Imperial customs union 
 set forth in this c'^say. The following esti- 
 mate, based upon the expenditures of 1805-6, 
 is only given as an approximation: 
 
 Throne and Court £ 500,(100 
 
 Diplom.-iUe and Consular service. 500,000 
 
 Foreign and Colonial Oftices 100,(K)0 
 
 Navy, including transport 20.iK)0,(MM) 
 
 Harbors ana coaling siutioUs . . 1^51!. ot)0 
 
 Subm.irlne cables l.'50,0(K) 
 
 .Steamship subsidies 700.000 
 
 Imperial annexations UOO.OOO 
 
 Although it Is believed that every part 
 of the Empire enjoys more or less the advan- 
 tages resulting from the expenditures here 
 stated, it may be doubted wlietlier. at the 
 start, it would be wl.se to call upon every 
 1 ritlsh possession to contribute Its complete 
 share. It has always to be reinenibered 
 that "taxation without representation Is 
 injustiee to tiie colonies." and that until 
 Imiieihil reiiresint.'ilioii becomes a part of 
 tlie constitution of the Empire, It would be 
 injustice to levy such an assessment upon 
 all its divisions, as would fully meet the 
 above outlay. In the meantime. It might 
 be possllile to admit the colonies to a con- 
 sultative position as n-gards the expoi.'dl- 
 tures for maritime defence, cables, etc. It 
 would bi^ reasonable, and, p< rhai-s, advan- 
 tageous for the naval authorities to con- 
 sult the Agents-General resident In London 
 as regards the advisjibility of proposed ex- 
 penditures In llieir respective colonies. On 
 the other hand, It would be obviously Im- 
 practicable ro allow them to say anything 
 at all regarding royalty, diplonjncy or for- 
 eign alTairs. It would, therefore, bi- best to 
 make provision at present only for the last 
 Ave Items In the foj-egolng estlmatc.amount- 
 Ing to £21,400,000. 
 
II 
 
 la 
 
 i! 
 
 CHAPTER V. 
 Ax Imperial Tariff 
 
 AssumiiiK thsit tac nnniial sum just mm- iind tlu> Falkland Islainls 154,000 
 
 t'oncd should bo raised in proper i)roi)or- _, . £331 Sll 00(1 
 
 tiona among all tlii' comuiiitics of the Km- 1 — '. ! 
 
 plpo, 'it now becomes necessary to UlvidliiR the estimate of Imperial ex- 
 conslder how this can beat be rnls- p(>uditure Riven above by this total value 
 ed by custo^ms duties levied at the of the imports of the British Empire, It Is 
 various ports of entry within the Euipire found that the former amounts to C4-1000 
 on importaticms from without. parts of the latter; and that a duty of about 
 If we attempt to fnune a tariff of specific CMi P' r cent, on the Impoits would provide 
 duties for this purpose, we ore at once £21,7G2,"ir) sterling, an amount sufiiclent 
 confronted by the question as to whether to cover the cost of Imperial purposes above 
 they would or would not, in nuy Instance, mentioned. It is not supposed that «'/.■ PC 
 tend to exercise a protective influence on cent, ad valorem would at all tlmc'^, and 
 the agriculture or manufactures c.irried on >inder all circumstances, be found to be the 
 within any of the countries of tlie Eniplfc. proper rate of duly. That would have to 
 In settling the rates of such ppecillc duties, bi' changed just as the sum of the iniporta- 
 Eugland would probably insist upon an ex- tlons and the necensilles of Imperial 
 tension of her sy.stem of tixing such articles finance altered, but it is maintained 
 as tea and colTee, while the colonies -Can- that tills iluty would be a n asonablo rate 
 ada, at any rate— would in all likelihood with whicli to Inaugurate the new system, 
 advocate the free admissinn of thes" arti- The Imposition of such an Imperial re- 
 cles, and the levying of duties on nianu- venue duty would leave the construction of 
 factured goods, and, In this way. insist on the local t.-irifTs of the various parts of the 
 sanctioning tlio principle of protection. Empire entirely in the hand'; of the autho- 
 Slnci' the introduction of such disputed ritiis wiio now control them, but it would, 
 points would be most unwise, and since nevertlieless, have a pow( rful Influtiice In 
 their discission would Infallibly wreck any effecting their modification. For instance, 
 atti'uipt to establish an imperial customs the Chancellor of the Exchequer would 
 union on the basis of specific duties, the find himself relieved from the necessity of 
 wiiter ;.as Lhoiighl it licsi In av<iiil these pxo\ Iding for the naval estimates, and 
 altogethei, and to propose that the reve- would be able to reduce the income or 
 nue for Imperial purposes should be rals- other taxes, i)r the customs duties in what- 
 ed by imi>os|ii(F mi ad. quate ad valorem ever way he or the English ParHanient 
 duty on ail foreign imports of every descrip- might think fit. Kimilarly, the Canadian 
 tlon. What the amount of this duty should Government would find it unnecess4U'>' to ex- 
 be would, of eourse, be determined by the pond money on the protection of the flsh- 
 amount of money required f<cr Imperial pur- eries, or for steamship or cjible subsidies, 
 poses and tlie total value of the imports and would be at liberty to reduce the cus- 
 Into the Empire from foreign countries. toms duties. In the same way the outlay 
 Avoiding any estimates of the latter In borne by certain Australasian colonies for 
 recent years, on account of commercial <ie- their auxiliary fieet would become an Im- 
 pressions, and taking the figures given for p(>rlal expenditure, and to that extent 
 ISS.-) in Sir U. \V. Knwson's TarilT and their local taxation would be reduced. 
 pu;ti;:L'an.'esHma/edCbe''as^Sws; ^'^^^^ these examples It will be scMr that 
 Into <ireat Itritain and Irel.ind fUSO.SOti.UOit the adoption of the plan advocated in this 
 Into India, Ceylon. StiaJts Set- essay would have the effect of reducing the 
 ritlus"''*' ^''"^""" "'"' '^^""' 04 337 non '"^"' <'»s'<'ms duties, and, speaking gener- 
 Into (^aiiiida" and 'Newfoundland 12!73(!".0(IO ally. It would give a very decided impetus 
 Into Australasia 0,751,000 In the direction of the establishment of 
 
 ^"nl.M'rM"!"""' """'""""^ ""*^ oor««on freer trade Within the Empire. Whether 
 
 BrltMi (julana 3.200,000 ,,, ^ ,,,,..., , 
 
 Into Africa l,tK51,000 '* ^'"^ c^'i'f be poisslble to abolish the local 
 
 Into (iibraltar, Malta, Bermuda tarirfs entirely, and introduce perfect free 
 
 In 
 In 
 
 In 
 
 It 
 
 of 
 
 be 
 
 upo 
 
 Km 
 
 tiik( 
 
 suel 
 
 nilg 
 
 wer 
 
 part 
 
 wh 
 
 won 
 
 ty 
 
 to 
 
 side 
 
 hav 
 
 owi 
 
 app 
 
 pen 
 
An Imi'Hriai, Tarii-k 
 
 13 
 
 iw.ooo 
 
 ;;w4.«it,o(M) 
 
 perial ox- 
 
 otal value 
 
 nplrc, It is 
 
 to C4-1000 
 
 ty of nbout 
 
 uld provide 
 
 L suflicleut 
 
 post's nbove 
 
 hat CMj per 
 
 times, and 
 
 id to be the 
 
 lid have to 
 
 he importa- 
 
 t Imperial 
 
 maintained 
 
 sonable rate 
 
 lew system. 
 
 Imperial re- 
 
 istruction of 
 
 parts of the 
 
 i tlie autho- 
 
 nt it would, 
 
 Influciiee in 
 
 or instance, 
 
 [juer would 
 
 necessity of 
 
 mates, and 
 
 income or 
 
 ties in wliat- 
 
 ParHanient 
 
 he Canadian 
 
 essary to ex- 
 
 of the flsh- 
 
 )le subsidies, 
 
 luce the cus- 
 
 y the outlay 
 
 colonies for 
 
 come an Im- 
 
 that extent 
 
 be reduced. 
 
 be se«Mi that 
 
 cated in this 
 
 reducing the 
 
 Miking gener- 
 
 ;ided impetus 
 
 bllshment of 
 
 re. Whether 
 
 lish the local 
 
 perfect free 
 
 tradc.such as now exist between the States 
 of the American Union, will depend en- 
 tirely on the fliinncial necessities of each 
 part of the Kmplre. At present, such a 
 po8sll)ility seems U) be very nniote indeed, 
 but there need be no hesitation In chanic- 
 ttrlzlng It as the Ideal which we should 
 strive after in our endeavors to obtain 
 closer Commercial and political relatfons 
 amoiin Hritish countries. 
 
 As ri'gards the collection of the proposed 
 Impej-iai revenue, it docs not appmir that 
 that would be attended with any cost be- 
 yond that now bonie by the various hx-al 
 triasurlts. (Custom houses exist in every 
 Hrilish port, wiiose oflicials could very 
 readily collect the additional ad valorem 
 duly, and whose authoilties could easily 
 transmit the proceeds 10 the Imperial Ex- 
 ehe(nier without making any charge upon it. 
 Thi' iiniountd of Imperial revenue which 
 would be raised In each division of the 
 Kinpire, and their relative proportions, un- 
 der the proposed scheme of a t!Vj per cent, 
 duty, are given In the following slat"meiit: 
 
 Per 
 Centages. 
 In Great Drltaiii and Ire- 
 
 li nd £18,020,700 85.0 
 
 In India, ('<'ylon, tl.e 
 Straits Settlement-;. 
 
 Labuan :..id Mauritius.. l,,")Sl,!)(ir) 7.2 
 In C.iuada and Newfound- 
 land 827,840 .S.8 
 
 In Austnilasla 438,81.') 2.0 
 
 In tile West Indies, Hon- 
 
 dunis, and Hritish (Jui- 
 
 ana 20,s.;!!)0 l.o 
 
 In Africa G8.0G,'> 0.4 
 
 lii r;;',.iaii.ir. M.ili.i. r.er- 
 
 niiiila and the Falkland 
 
 Islands 10,010 
 
 £21,702.715 100 
 It does not jipjiear that iliis (IKtributlon 
 of tlie burden (if Imperial inxiitioii would 
 be unfair. The justice depi>nds presumalily 
 upon the relative ability of each part of the 
 Kuipire to pay taxes. If meie area w to 
 taken as the basis of api)orti(Uinient, then 
 such dominions as Oiinad.i and Australasia 
 Miight coniplain of injustice. If popnlati<in 
 were adopted as the ba.sis. then the greater 
 part of the burden would fall upon India, 
 wliieli would b-^ out of the question. Dn^ 
 would think that some estimate of the abili- 
 ty of the various divisions of the Empire 
 to bear taxation might be formed by con- 
 .slderlng the amounts of revenue whi»;h they 
 have been In the habit of raising for their 
 own purposes. These appear to have been 
 approximately In the raitlo of the following 
 percentages; 
 
 Per Cent. 
 
 United Kingdom 4.5 
 
 India :iX 
 
 IVrit ish North America 'Wi 
 
 Australasia HVa 
 
 South Africa - 
 
 100 
 It would be an additional punishment for 
 their past extravagance if the Australian 
 coionieH wi're to pay tliree tlnu^s as much 
 as Canada of the taxation for Imperial 
 purposes, and that India should contribute 
 more than one-third of the whole would 
 also be unjust. It has been proposed tliat, 
 since the co-t of the navy is the clilt f item 
 of Imiierial expenditure, the assessment 
 should be levied in proportion to tiie trade 
 of eacli part of tiie Empire, which would 
 couse the buideii to be borne in tlie ful- 
 luwiiig proportions: 
 
 Per Cent. 
 
 I'nlted Kingdom ^"-(^ 
 
 India »■<> 
 
 ( '/anada r-3 
 
 .Vustralasia '•>> 
 
 Africa • • 1 ■<^ 
 
 1 1 III 
 
 The difTerence in the incidence of taxaiiou 
 
 betwixt this system and the plan jiroposed 
 
 by the author of this es<ay is very sli^lit, 
 
 as will be seen from the following comp.iri- 
 
 tiollS. 
 
 On total On f<>r n 
 
 Trade. Imports 
 
 I'nited Kingdom Nt.d S.'..(J 
 
 India '■•■<' '-2 
 
 Canada --4 "> 
 
 Aust ralasla 7.5 2.0 
 
 West Indies — 1»> 
 
 Africa 11 0.4 
 
 100.0 100.0 
 
 The chii'f difTerence lies in the fact that, 
 if the total trade were taxed, the t)urilen 
 would fall equally as luucli upon jnterltri- 
 tisli as u|Mm foreign tr.ide; liy taxing for- 
 eign iriiportations only, trade between the 
 vai'ii'Us parti of the Empire wotild be en- 
 couraged. I'\>r this and other reasons, It 
 is contended that the proposal made in the 
 present < ssay for raising a revenue for Im- 
 perial purposes is to b'- iirefcrred as most 
 advantageous to the Empire. 
 
 Tliat inter-Britisli trade. rathex than that of 
 fovelLTn counlries. slioulil be encouraged, Is 
 maintained by the historian .Mison. wlm 
 writt's on the sub.|ect: 
 
 "Th( so facts Illustrate th- imporlnnt. and, 
 to a commercial state, vital distinction 
 between the foreign and colonial trade, as 
 they affect the market for manufactiirefl 
 and the means of national siMurity. It may 
 safely be aflirmed that, on a due and gen- 
 eral application of tills distinction, the ex- 
 istence of the Hritish Empire in future 
 times will In all probability depeiul. Ex- 
 
«4 
 
 An Imperiai, Tariff 
 
 i 
 
 I ' 
 
 perience has now abundantly proved thflt, 
 even as a trading and uiamifaot'.irliiK wtnto, 
 we are dependent on our colonics, If not for 
 the largcat, for the most ktowIuk part of 
 our exports, and that It is In these that 
 both the most eventually Important and en- 
 during market for our domestic industry U 
 to be found." 
 
 Nor will the importJincc (if our colonial 
 trade be dented by those who have read 
 recent articles on Imperial federation In 
 The Statist. As that journal states: "It 
 has been shown that the command "f H" 
 Hea is lndlsi)ensal)lc for the pri'scrvatloti 
 of the lOmpire, the prosperity of the colo- 
 nies, the existence of tlic> .Mother (Country." 
 This command of the sea must be maintain- 
 ed by a powerful tiuvy, with its neees>^ary 
 b!is<>s. Tills navy must be manned, and, in 
 time of war especially the only source f.'-om 
 which its seamen can he recruited Is the 
 niercliant marine cnjiaged hi tradlnpr with 
 the colonics. Tlie t'oreitrn carrying trade 
 cannot be utilized fiir tills purpose, because 
 It is as much enjoyed by foreljrner< iis tiy 
 t)urs< Iv( s. Th" i/nlj tnifiic »s iiieli < ;.n he 
 permanently relied on as a nursery for sea- 
 men is that with our own dependencies. ami 
 of whicli we eaiinol he d"pri\e(I hy fdvef'.rn 
 
 jealousy or hoatillty. Alison ha« also writ- 
 ten on this point as follows. 
 
 "Kxpericuce has everywhere proved, what 
 reason might a priori have anticipated, that 
 trade with Independent states, how exten- 
 sive soever, invariably <!ome8 in the later 
 stages of society to fail more into the hands 
 of foreign sliipowners,and that, in Ihe very 
 nuignitude of a great inunufacturlng state, 
 foreign comnu'rclal intercourse Is laid, but 
 for the intervention of Its own colonies 
 the sure fouiuhition of its ultimate subju- 
 gation. The reason is to be found In the 
 lower value of money, and consequent 
 greater expense of building and manning 
 shijis In an old, opulent commercial com- 
 munity than in a young and rising one, 
 which has the material of a commercial 
 navy within it.s own liound.s and the conse- 
 quent cheaper rate which goods can be 
 traui^ported and ships malntiilned by it. 
 From this cause, the debility of advanced 
 years iicce>sarily and very shortly conies 
 over every niaritiin<> community which Is 
 not perpetually reanimated by the trade 
 with its (>\>n ciiloiiii .>, jnsc .ib uiio >>takiiess 
 of age iirostrates every family which 1-* not 
 upheld by the growing strength of Its own 
 younger hr.'inches." 
 
 i^ 
 
 i lilif 
 
 CHAPTER VI. 
 The Principle of Protection 
 
 Since any proposa'.s for foniiing >^n Im- 
 perial customs union must be sui'h as will 
 procure their acceptance by the gove^rn- 
 ments interested, and since the English 
 people, as a whole, disapprove of prnt^-c- 
 tlve tariffs. It becomes necessary to enquire 
 whether the plan proposed in tliis essay 
 for raising an Imperial revenue hy a duty 
 of 6% per cent, ad valorem on all foreign 
 lmi)ortations is one which involves any 
 sanction to "the principle of protecticvn." 
 
 It Is somewhat difficult to define autliorl- 
 tatively "the principle of protection." As 
 It is understood in Canada, a jirotivtive 
 tariff Is one imposed principally foj* favor- 
 ing tlie Industrial Interests of the importing 
 country, and Is not absolutely required for 
 revenue. The best example is that of the 
 United States, the openly expressed olijei't 
 of which Is to benefit the capital and la- 
 bor of that country. It has provided a large 
 amount of revenue Incidentally, by which 
 a large proportion of the war debt lias 
 been paid off. There was no pressing ne- 
 
 cessity f()r this, jind had the Americans 
 been anxious to promote coinini-rce with 
 other countries they could easily have low- 
 ered th(>ir Import duties. .Mthough that 
 nation did not approve the McKlnley 15111, 
 it nevert.lu'less selected Mr. McKinley as 
 President, and appears to liave made up its 
 mind to retiiin Its pnrtective policy. It is 
 quite just to say tliat this is for the pur- 
 pose and has the effecrt of enabling the 
 manufacturer to iiay higher wages, besides 
 securing to himself bi'tter profits. On the 
 other hand, the eonsiiiiier in tlie I'Tiited 
 States is willing to pay more for the goods 
 he uses if thereby he can make work more 
 plentiful among his coiintrynien. He sim- 
 ply prefers to pay his poor rates In tills 
 >^ay; to give higher rates for labor rather 
 than foster pauperism by distributing un- 
 eanied money. A tariff which sanc^tions 
 the principle of protection Is, therefore, 
 one whii'ii Imposes higher duties on certain 
 classes of foreign goods than are requisite 
 for revenue purposes, and In which the 
 
 Itl 
 thef 
 
 tei 
 lUt(l 
 
 Bm| 
 Perj 
 peol 
 cesa 
 
The Principle of Protection 
 
 15 
 
 also writ- 
 
 jrovtMl.whut 
 pated, that 
 how exten- 
 In tbo later 
 o the bands 
 In ihe very 
 urliiK state, 
 Is laid, but 
 wn <'olonles 
 mate subju- 
 und in llie 
 consfMiuent 
 nd manning 
 uierclal com- 
 rlsing (me, 
 I couinicrclal 
 nd the eonse- 
 (><>ds can be 
 UihK.'d by it. 
 (if advanced 
 ihortly comes 
 lity which Is 
 by the trade 
 
 tin- \>t,iI»'l>.S** 
 
 which is not 
 •th of Its own 
 
 Ilic Ami-rlcans 
 oiilliiiTCe with 
 isily liavc low- 
 Alt hdusrli that 
 McKlnley lUll, 
 , McKinley aa 
 vo made np Its 
 e policy. It Is 
 Is for the pur- 
 f enabling the 
 
 wflges, besides 
 [)roflts. On the 
 
 in tl>e rniled 
 e fcfr the goods 
 lake worlv more 
 rnien. He wlni- 
 if rates In tills 
 lor liil>()r mther 
 distributing un- 
 vhlch sanctions 
 1 is, therefore, 
 utles on certain 
 an are requisite 
 L in which the 
 
 rutM of duty are made to vary according 
 to the uature of the article and the clr- 
 cuinstanceH attending its production, both 
 in tlie importing and the foreign country. 
 This protective torlff may, at the aanie time, 
 admit of the Introduction of some products, 
 ospeclally mw materials requlrtMl for manu- 
 facturing, free of duty altogether. Ac- 
 cording to this description of a protective 
 system, the Imperial import duty proiio-;ed 
 in this essay ciinnot be said to be protec- 
 tive in any wnse. It Is to be imposed pure- 
 ly for procuring revenue; it is perfectly 
 uniform and is impo.sed upon all foreign im- 
 portations witiiout excepting anytliing or 
 any description of mw material. 
 
 When, In IH'jii, the merchants of liondon 
 petitioned the House ef (.;oinm(Ui>< in favor 
 of free trade, iliey (ieejand tiiat "it Is 
 against every restrictive regulutlDii of trade 
 tiot essential to the revenue, against all 
 <lutles merely protective, against foreign 
 coinp< titloa, and against the excess of such 
 duties as are partly tor the puiimses ot 
 revenue, partly for that ^ f iirotectlon that 
 the prayer of the pre-eut pi'tltion is re- 
 spectfully submitted to the wisdom of Par- 
 liament." .ludgod bv the standard set forth 
 In this iiuotation. it does not appear tii.Mt 
 the [)roposed Imperial revenue duty in- 
 fringes any of tlie i)rinciplos of fri'c trade. 
 It may be called a restrictive regidatlon 
 to .some slight degree, l>ut It is far less so 
 than the duty on tea levied in England. It 
 places a slight burden on tlie Iriir(Mluction 
 of foreign goods, l)Ut It Is far from indng 
 "riK'nly protective." It cannot be called 
 exeeHHivc, lieciiuse it is !)arely sufticicnt for 
 the pnrpc'Ses in view. Tlie proposed nite 
 is so low tiiat it cannot be even suspected 
 of the "taint of protictlon." 
 
 When Cobden visited nerlin. Dr. Elchhorn 
 
 told him tiiat the originators of the zollver- 
 eiii did not contemplate estiiblishliifr a pro- 
 
 tective system; It was distinctly underwtixMl 
 that the duties on foreign good* sliould not, 
 as H rule, exce«'d 10 per cent. In sue;* free 
 trade countries as Belgium and Holland, a 
 rate of five per cent, ad valorem baa often 
 been imiKwed on nnenumerated articles, 
 and never reganled otherwise than as a 
 duty for revenue purposes. Tlu'se facts 
 prove that the adoption of the plan pro- 
 po«ed in Ibis essay, for providing an Impe- 
 rial revenue, would not sanction In any way 
 the principle of protection. 
 
 Not only so, but the placing of n slight 
 burden on Iniportations from foreign coun- 
 tries appears to lie eminently Just and r«?a- 
 sonabie, when it i< considered that the 
 .^hipping of all nations is a debtor to the 
 Hrllisli fleet. <tur navy patrols the high 
 seas like a mariiie police f(»rr'e. giving se- 
 curity not to British commerce ahme, but 
 to tiiat of ail tlie world besides. Wliy should 
 this great service be performed by (Ireal 
 Ili'itain for iiotlilni:'.' Tliere is no ;rood rea- 
 son for •.:n<'li generosity, but. on the ottier 
 liand. it can be maintained that she is fully 
 ju-ti'l d 'It exacting a toil, in whatever 
 way slie can obtain It. from foreign gov- 
 ernments as Some slight compensation for 
 
 hf i outlay in ni.untalning tlie pea if the 
 
 high sens. Such a toll In tlie shape of a «!i.j 
 I)er cent, duty on foreiirn liiiportation.s 
 W( uld not t)e considered exorbitant. 
 
 It is Impossible to attribute a pr<vt<i'tlve 
 character to a customs duty Imposed for a 
 spi'clal pnriiose. on every variety of tniporf- 
 ed u'oods. and at a uniform rate. ,'\iid more- 
 over. It can lie maintained that sucli a duty 
 would have :i stronir tendency to promote 
 free trade within tlie Knipire. The greater 
 the amount of revenue produced tiy such 
 an all-itnind Imperial duty, the less neces- 
 sity will tliere be for liurdening inter-Hri- 
 tish trade witli local import ilutii'S, and 
 the freer will commerce lieconi" lietwixt 
 the various parts of tlie lOmpire. 
 
 CHAPTKR VII. 
 
 Impkrial Ixtkrksts 
 
 It is next necessary to enquire whether 
 the scheme proposed in the foregoing chap- 
 ters Is one which is likely to maintain the 
 Integrity and strengthen the defence of the 
 Empire, and whether It promises to be 
 peruMinentiy advantageous to the various 
 peoples and interests whose consent Is ne- 
 cessary to Its adoption. 
 
 Tliat the scheme now brought forward 
 will have a strong tendency to maintain 
 the integrity of the Empire may be proved 
 by reference to the origin of the (Jermaii 
 zollvereln. Previous to the yi^ir 182S, 
 although t.iie (dd Diet was In existence, 
 there were in (lermajiy .as many customs 
 boundary lines as there were limits for the 
 
 n 
 
I^ 
 
 iMI'KKIAI. InTKRF.STS 
 
 
 ■n 
 
 tndi'pimdciit statps composing the Oennan 
 Kund. Tho flrst zollvoriln or (nistoms union 
 was Instituted In that year betwixl Tnis- 
 nln and Hesse Daruistiidt, and the (Jovern- 
 nient of the fornur country strove ever 
 ufti-rwaids to Inercuse the number of Its 
 nienibers. Hesse iolncd In 18:n, Uavarin 
 Wurteinburg, Saxony and ThurliiRla In 18.1:5, 
 lladen and Niissau in 1S;!». ilic dly of 
 Frankfurt In 18.'!f), and Krudually the union 
 grew until It Included ilT uillllonH of lu- 
 ha titan ts. The states belonginj; to It cauie 
 1o be In a sense dependent upon I'riissln, 
 whose government strove to defend their 
 trading and manufacturing Interests. Lit- 
 tle by little polltieal and national objects 
 became common to the states of the zollver- 
 eln, and at length, from being merely n 
 machine for the convenUnt collection and 
 apportionment of rev nni', it Rrew t i be re- 
 garded as Mh; symbol of Cerman unity. The 
 influence of this bond of union in the re- 
 construction of thf German Empire was 
 Immense, as is evident from the fact that 
 Austria, which had to l)e included from it, 
 never furim d part of the zoliveiiin. Frirui 
 nil this we are entitled to eoiolud • that, 
 as the Inipiirtaiice of I'nifisla ir.creased 
 with the extension irf ihi ,; llverein, so 
 wou!d also the Intluence of the i'nlled IClng- 
 diHu Krow with the e.siabllhment and de- 
 velopment of an Imperial customs union. 
 AVe also learn that between the institution 
 of the arst weak political tie aoKiiiK the 
 (Jcrman States, and the substitution firr It 
 of the North (Jerman Bund, and afterwards 
 of the (Jerman Kinpire, the formation of a 
 eustoniR union Intervened, which had the 
 most important intluence In uniting the 
 (Jerman people. We are, therefore, insti- 
 lled In a.ssuming that a similar effect woulil 
 follow the establishment of the IJrltisli ciis- 
 tems union now proiiosed, and that the In- 
 teurily (if the lOinp're would be maintained 
 and streujithened by it. 
 
 That Hie plan propo.sed in this es.say for 
 the erection of an Imperial customs union 
 would also have Hie elTect of strenntlieniiig 
 the defence of the Empire, will be evident 
 from a due consideration of the fact that It 
 calls for contributions trom the outer 
 ICiuplre towards naval defence, and pro- 
 vides a siimple l>as.is, according to wiilcli 
 th- assessment of each colony shall be de- 
 termined. This latter cireumstJinee Is of 
 no small importance-, for the want of such 
 a basis was e.\pei-i,>nced In tlie Colonial 
 Ci>nferpnce of 18S7, and in refercnice to It 
 Sir .Tohn Downer declared that "there can- 
 uot be that perfectly good and pmpcr rela- 
 
 tion of the United Kingdom to the <x)lo 
 uies, which we all dcHlre, unless It Is 
 founde<l uimui a substantial IjiiHas, which 
 must commend Itself to the sense of justice 
 of all." It Is true that, under the pinn 
 MOW proposed, by far the largest amount 
 of tlie cost of the navy («.">.(! per cent.) would 
 still be payable l)y the L'nlted Klngtlom, 
 but the contributions from the outer Empire 
 would nniount to three milllonf* sterling, 
 compared with whlcJi the few present con- 
 tributions are quite trifling. Tlie proposed 
 contributions would not Ix' made by annual 
 vote of the colonies lnterest(Ml, but by a 
 system which could be controlled by the 
 central authorities having chajge of the de- 
 fence of the Kmplre. This possession of an 
 assured and independent source of revenue 
 would make It po-slble for the authorities 
 In question to arrange their plans for a 
 much longer time and mature their pn>iKi- 
 rations for defence wifli the greatr>st con- 
 fidence and deliberation. The various outer 
 divisions of the ICmpIre, consclotis of hav- 
 ing given their proper share to its defence, 
 would feel a new Inteit'St in it, and come 
 to regard It as not exclusively the business 
 of the Mother Country. This feeling of in- 
 terest and responKil>llity would. It Is main- 
 tained, go very far towards improving the 
 morale of all the subjects of the Empire, 
 and caus" them to unlti> more readily lr> 
 further efforts for Its defence. 
 
 There Is no d.iubt that the scheme propos- 
 ed In this essijy would be "permanently ad- 
 vantiigeoiis to tli(> varlou.s Interests whose 
 consent Is required to Its adoption." Tiie 
 Interests in question are the material In- 
 teH'sts of the varied countries; constituting 
 the Kmplre, and first in importance araons 
 these e.unes, of course, the United King- 
 dom. That her business-! interi'^its would be 
 benelited by (he iirefereiice which her i>ro- 
 duots would obtain in the markets of her 
 own possessions can scarcely be doubted. 
 Imports Into these from foreign countries 
 would be llai>le to the <?xtra Imperial cus- 
 toms duty, besides the rati»s of the ordin- 
 ary locjil tariff. English g<K)d8 would only 
 be subject to the latter, and would, of 
 course, esciipe the payment of the addition- 
 al <;V1' i'cr cent, ad valorem. Such a prefer- 
 ence would be of importance In view of the 
 compi t.ition which lOngllsh goods have to 
 face even in. British markets from the boun- 
 ty-fed and tarllT-protccted factories of foT^ 
 eign states. The demand for ICngllsh manu- 
 factures would be Increased in Indian and 
 c(donial markets, because goods from 
 Prance, Germany and the United States 
 
iMPURIAr, Intkkksts 
 
 to the colo- 
 
 unles« It 1» 
 
 )i»Has, whicli 
 
 HO of justice 
 
 or the plan 
 
 gcst finio\int 
 
 icnt.) would 
 
 'd Kingdom, 
 
 lit or Empire 
 
 nh-i BteriliiK, 
 
 present cim- 
 
 riip propowHl 
 
 rti' by annual 
 
 (1, but by a 
 
 >lle<i by The 
 
 fH' of the <1('- 
 
 .scsslon of an 
 
 (if revenue 
 
 ic tintliorlties 
 
 pliius for a 
 
 > their pn'pa- 
 
 grentest con- 
 
 vnrlous outer 
 
 jclous of hnv- 
 
 .() Its defence, 
 
 it, and come 
 
 y the business 
 
 feeling of In- 
 
 Id. It Is mnln- 
 
 IniprovinR tin; 
 
 (f the Kinpire, 
 
 lore readily lr» 
 
 scheme propo«- 
 eiinaiiently ad- 
 ntercsts whose 
 diiptii>n." The 
 le material in- 
 ie« oonstltuting 
 )ortauce nmons 
 • United ICInB- 
 ■rests would be 
 which her pro- 
 markets of her 
 ly be doubted. 
 ireiRii countries 
 a Imperial ciis- 
 ,-; of the ordlu- 
 ods would only 
 and would, of 
 of the addition- 
 Such a prefer- 
 } in view of the 
 (joods liove to 
 ; from the boiin- 
 [actories of for- 
 r EnpUsh manu- 
 l in Indian and 
 e goods from 
 United States 
 
 UDUld have to pay Bomcwhut more duty 
 tlian thost' from the Motlier Country, The 
 pl.m here advocated would be u wife one, 
 mid have a tendency to cause trade depres- 
 sions and W(>rkl<>ssnes8 to disappear from 
 iinmng llie comniunitlwi of Croat llritnin, 
 Willie unl/l.iiig them, by the 8tn>iigesl ties, 
 wiUi their brethren across the ocean. 
 
 The ri-allty of the exi.Htence of these "de' 
 pi'e.s»l()us of trade and Industry" In the 
 I'nlted Kingdom has been proved by the 
 lalMirs of the IJoyai (Jommis,slon which in- 
 vestigated the subject, as has also be(>n 
 the fact tliat they are to a great extent 
 owing to a diminution in the demand for 
 Kiigllsh goods, both in home and foreign 
 markets. Hut the fact that Great Itritain 
 is losing her hold upon the markets of her 
 KIm'jiI Year 
 
 Knded Kroin 
 
 June ..0. Great Britain. 
 
 l«"r) $l5(».:V»7.(Mi7 
 
 l>^7'> •U).7:{4,lm;() 
 
 i>»77 ;t!»,.'>7t.','.';«) 
 
 i'^"'^ ;t7.4;n,i,s(» 
 
 i*<9 ;!o,!t!i,'t.i:!() 
 
 I'^^'i »i,40i,:::i4 
 
 18«1 4:5..'i8;{.808 
 
 issu r)(),r)!i7.:{4i 
 
 i***^'" 5i:,t)r/J,4C5 
 
 !><><■♦ 4a.41N,(il,5 
 
 l^^"> 41,4(»(i,777 
 
 1^W> 40,(iO!t.l!t() 
 
 ^^^' 44.;mv;."J'« 
 
 J'<*^>< 3!),'J1>S.721 
 
 !><«« 4J.;:i7.;«!> 
 
 !*'!•"' 4,'$.;{!)0.1i41 
 
 JS;/, 41.'.047..-.1>G 
 
 J^ • 43.148,413 
 
 IS i :{8.717.i:(!7 
 
 ^^ ;! ;u,i;u,7;!7 
 
 According to a I(>titer in The Tiiiu>s of 
 
 I Sept. '21. lS'.l.->, from Sir Henry T. Wren- 
 
 foidsiey (Lei'V/ard Island.s, W.I.), .something 
 
 of tJie SKune .'^ort lias taken place In Vlcto- 
 
 lia and tlie Aiwtralian colonies, (.'oods of 
 
 Uie tr.i.st varied charac^ter lieiiif; imported 
 
 in larj;e (iii;uititie,s fniiii silcli iiroteetioiiist 
 
 countries as Franc*', fjeriuany and the Init- 
 
 (•d Stall's. The same autliority also makes 
 
 the following statement: "Witli respect to 
 
 the eastern l.slands of the Caribbean Sea. 
 
 their trade with Kngland Is practically ii 
 
 thing of the pa.st. . . . The pi-e^^ent 
 
 trade Is in the liands of the Amoricans." 
 
 jln Thf Times of \.,v. ll.\ ISO.", Mr. W. J. 
 
 jllaniiiiond writes as follows concerning the 
 
 jiron trade: "At the present time we myt 
 
 joiily puiclia.se girder and other Iron abroad 
 
 Ichcaper Mian we can produce it, but we are 
 
 Ibeing undersold in all foreign markets. 
 
 lMos.t of tile contracts now being executed 
 
 colonies and dependenolea has not been 
 sufllcieatly (>mphaAlzed In the report of the 
 ooiiiinlsslon referred to. The lirltisb im>o- 
 liie have been too mucli Inclined to acwpt 
 as the truth the eomnion saying that 
 "Trade follows the I'lag," when, In fact, 
 U;at expression Is fallacious to a (-onslder- 
 abie degree. Ii the Uominlon of Canada, 
 over which the Itritlsh Hag happily tlcxita. 
 liiere has been during the last -0 years a 
 diminution In tJie quantity of goods iiu- 
 jiorted from Kngland, aecompanled by an 
 lncrea>e in thiis<' fuinl.-^hed by the United 
 States, France aiul (iermany. The follow- 
 ing siateiufiit of the values of lliose iinpor- 
 lallons is copied from the Trade and N.i- 
 vlgatiiii Ifoturns for thi- year ending .June 
 'M, 180(!: 
 
 From 
 United States. 
 .'?,")0,8()0,8i:0 
 
 -iti.(i7(i,o:i.'{ 
 .■>i,;ui',(i()9 
 4,s,(j;!i.7;(!» 
 
 4;{,7;i!».L'l!l 
 
 :;!»,;{4(),!t4H 
 
 .!li,704.1i:i 
 48,L'.Si),0."j2 
 
 .m;.(i:!L', :•,.•!;{ 
 ."(»,4!i2,8L'G 
 47,l.".l,-(tl 
 44„s.-,S.0;{'J 
 4,">,lo7,uUlJ 
 48,481,818 
 
 r)(),.'.;;7.44o 
 r)2,i:!)i.!t7;! 
 ;>;{,t;s,'">,t.,"i7 
 .'■>;{, i;}7,.")7ii 
 
 68,121,117(5 
 
 .'">;!,(i;;4,i(»o 
 .'■.4,(i;;4..".Ji 
 
 ."j8, .074,024 
 
 From 
 France. 
 1,1)41,2118 
 1,8111.877 
 l,41l(,7:i2 
 l,;'..So,003 
 
 i,.");!2,iiti 
 
 1,11.^^41 
 
 i,<;.ii,3a2 
 
 2,o:i7,;{58 
 2,:il(i, !«'.' 
 
 1,7(;U,84!» 
 
 i.it;,.-..:,.si 
 
 1,»7,-),218 
 2,U7;i.470 
 2.244,784 
 2.2JS.tl8.; 
 2,015.0(12 
 
 2,;5i;;,i4;{ 
 2.4():;,c;;t 
 2.832,117 
 2.530,1104 
 2„-.8.->,174 
 2,810,l»4w* 
 
 From 
 
 Germany. 
 
 $748,423 
 
 482„'i.S7 
 
 370,. -^1)4 
 
 31)9,320 
 
 440,1)01) 
 
 441),71tl 
 
 1)34 ,£00 
 
 1,480.004 
 
 1. soy, 154 
 
 1,075.771 
 
 2.121.201) 
 
 2,155,523 
 
 3. 23.'). 4 41) 
 
 :).;;oi.."03 
 
 .3.0112.570 
 3,778,5)1)3 
 3.804,01)0 
 ."),.'.83,530 
 3,82.'.. 7<W 
 .5.841.. 542 
 4.71)4.159 
 .5.1131,4,51) 
 
 by us are at such prices as leave no proiit 
 to the iiiainifactuier, who is obliged to Uiko 
 them ill order to kec|) his men together ill 
 liO;)es of future better prices. When?" 
 More r< ecntly we hear of the United States 
 competing successfully with Kngland in 
 suiipIyhiK steel rails fi>r India, and accord- 
 ing to tin- latest accounts, (iieat ISrltaln !» 
 losing ground in lier own markets. She Im- 
 p()rted i'11.4;i8,5i:'. more of foreign goods In 
 the tirst eight months of 1897 than dur- 
 •U'^ the corresponding eight nioiiLlis of 181M3, 
 and exported i3. 195, 174 less. This Incrwise 
 'n impi>rts i)n)ves that Great Urltain cannot 
 hold her on-" wit'i 'h" I'nlted Strifes luid 
 Germany, even within the confines of the 
 United Kingdom Itself. The United States 
 Is shipping steel rails, bicycles, electrical 
 machinery and other manufactures to Great 
 Hritaln, while the British stores are flooded 
 with cheap stuff "made In Germany." 
 
 r 
 
ni 
 
 l8 
 
 IMI'K.KIAI, iNTKRKSTS 
 
 It tlnw ni>prars that, although tiie UnJti'd 
 ,St4itc», 1" ranee ami (iiTmaiiy art- countr'«>» 
 j)iiaotlhlng protective prludpU'S, tJioy, lu-vcr- 
 <iiclf«*, i«ii compete su(;ccH*trully with 
 Great nrlUilii in her own ninrkets, and In 
 those which are hers nulurally by tle« of 
 relatloaHhlp and nationality. The cauwe of 
 this txtraordlnary phenomenon Is no douht 
 corr<H:tly KIvmi In the followlnj; passaue, 
 from the Depression Coiiinils+slons Keport: 
 'The hijfh prices which protection secures 
 to the prmhicer within the pivjtected urea 
 iiaturaly stimulate production and Impel 
 him to euKaKc In coimptltion In foreign 
 niarUets. The surplus production wlihMi can- 
 iKit. lind a marki't at home N scut abroad, 
 iind in foreign niMrkcts undersells the com- 
 nioditles produced under lesw artlllclal oui- 
 dillons." That Is to say. In other words, 
 that this eoininenlal warfare Is helm; wajjed 
 l).v 10n>ilaiid with her llank'^, and rear un- 
 l)t()tected awiinst the forel;;n prcHlueers 
 Avlio tlsht fioiii a base of o|)iTiiti()n perfect- 
 ly secure. Furthermore, the kilter are free 
 from all burdens reiiulslte to secure the ex- 
 istence of tlio markets in question and to 
 protect the lii^'hways of the ocean, while 
 English maiuifacturcrs musil bear their 
 share of tile Iliad nf dlr<n-t l.ivatbm wlilc.li 
 provides tlu? funds for tlnt-e 1)\m piiscs. 'I'liis 
 Is not a situation likely to be viewed with 
 complac(>ncy from the point of view of jiu 
 KuKlish nninufactuiier, and, althou<;h the 
 Itoyal ''onimlsslon snggisitcd no cure for It, 
 It is not !it all unlikely that remedial in(-a- 
 siires will sooner or later be atti'mpted, and 
 it would not be surprising if tiiese kIiouUI 
 be rather drastic In cli:iiacter. It will Ik- 
 <'vi(leni. Ilial tile mild plan prnpo^ed in this 
 essay will iiavo the elTect of encoui-agiug 
 inter-Iiritlsh tiade, jierhaps, of regaining to 
 lOngland tho'se markets in lier own pos,s(s- 
 hIim»^ whicli are now being lllclied from her, 
 and thus extrica'ting her commerce from jin 
 utterly intolerable and humiliating position. 
 
 llider the arrangement referred to the 
 Indian Empire would be calleil upon, 1m'- 
 sldes providing for Its government and 
 armi's. to contribute about £1,,">K'2,0(X) an- 
 luilly for naval defem.'e. This would include 
 the i'100,(HJ0 now payable by the Straits 
 Setflement Colony. Tills kirge sum would, 
 liowever, be raised In such a manner as to 
 fall almost Imperceptibly on the taxjiayers, 
 and be In part borne by foreign inaiiufar- 
 turers or traders. At the same time the 
 lative producers would llnd that a sti>adler 
 market had been created for their wares in 
 Ijngland and many of her colonies, and 
 
 tliat their wheat, rloe, cotton, tea and cof- 
 fee were being preferred to a sllifht extent 
 by purchaHcw there. Tlu^e clr<-um«t«ncrH 
 wiild not full to be percelve<l by our Indian 
 fellowsubJe<n» generaJly, and vmm' thiin to 
 be s«itlslied with the schenK- now pro|K>«o<il. 
 
 It Is estinuited that the pro<>ee<l» of the 
 proposed ImiK-rial revenue duty in the I>o- 
 Miiuion of Canada with Newfoundland In- 
 cluded would amount to iS'J7,800, or *4,i;W,- 
 itlH) In C.inadlan currency. This is not by 
 any means an Inconsiderable sum, and thero 
 is no doubt that opp(Ksition to iMiylng it 
 would arise especially on the part of the 
 "turlmleut minority,"' who are inclined to 
 '•l<M)k to Washington." They would pro- 
 bably attempt to stigmatize the duty as 
 "tribute" paid to the I'ulted Kingdom, and 
 endeavor thus to render it unpopular. .MIs- 
 represeuiatlons of thl*^ sort could be met 
 and, no doubt, overcome by pointing out 
 tliat the levying of the Imperial duty 
 liirougliout the lOmpirc would liave the ef- 
 fect of subjecting the agricultural products 
 of tiie United States to a burden of ii^t 
 per eeuL .,.. .'...Ir value on Mi,l;- ..rrlva! hi 
 the pons of the lulled Kliigdoni, while 
 those of Canada would es<'ap" this duty. Of 
 course tiu^ would not jirtveiiL vhe liovern- 
 ineiit of the I'nited Kingdom from levying 
 a duly on grain generally. Including that of 
 Canada, if tliey were so inclined, but even 
 in tills event tiie extra ad valorem duty 
 would still be levied on the foreign pro- 
 duct, and not on that of Canada. L'ndcr 
 the propowd plan Canadian ciie<>se could be 
 sold in the markets of Knglaud and the 
 West Indie.-, for half a cent |H'r poun,! U:iH, 
 and Canadian butter for oni- cent per pound 
 less tlian the same (hiiry products of other 
 countries, and this would have a ten- 
 dency to render the trade in 
 these articles less lltictuating. Camidian 
 siiipmenls of manufactured goods to Aus- 
 tiMlasla would have a similar advantage 
 over those from the l.'nited Staitcs, and the 
 total n\sult would be to make Canadians 
 more Inclined to contribute as proposed to- 
 wards Impcvrlal piiii)ose8. 
 
 The foregoing considerations, inodllled to 
 suit the different cireninstanctN-!, apply more 
 or less to Australasian and South Afilcan 
 trade, and it Is maintained that in the 
 seif-govern<>d colonies any system contri- 
 buting to Iruperial defence would be accept- 
 ed If it carrli'd with it preferential treat- 
 menit in HHtlsh ports thnmghout the Em- 
 p're. With reference to the West Indies, 
 it is doubtful whether any such Impost a» 
 
Impruiai. Intkrksts 
 
 '9 
 
 >, 
 
 III, 
 
 tht 
 
 fo. and cof- 
 l(fht extent 
 <.'\iin«t«nc«'K 
 our IiuUan 
 iiw thnn t() 
 
 »v<U of the 
 In the I>o- 
 undhind In- 
 or *4,i:W.- 
 Is not by 
 luiil there 
 piiyliiK It 
 pnrt of the 
 Inclined to 
 would pro- 
 duty as 
 liiKdiiin, and 
 Dim 111 r. Mls- 
 iiuUI be met 
 pointing out 
 iUKTliil duty 
 luivc iln' ef- 
 iinil products 
 urden of OVi 
 !;■ ..nlvii! lu 
 iKdoiii, wliih? 
 ihi« duty. Of 
 vlii' tioveru- 
 Iroin levying 
 hullnsr that of 
 ned, but even 
 valorem duty 
 ■ foreign pro- 
 iiinda. L'nder 
 leese could be 
 land and the 
 vv pouii.l 1» :is, 
 •cut per pound 
 ilucts of other 
 have ft ten- 
 trade In 
 J. Canadian 
 B(X)ds! to Aus- 
 lar advantaste 
 itaites, and the 
 ike Canadians 
 s proposed to- 
 
 UVj |M>r ctMit. on tue lugera of the Coii/tlneut 
 of Knrope would be n countervailing duty 
 equivalent to wl.iit In paid on them by way 
 of lii'untlet* In the eountrlcH of priNlu<;tl(Hi. 
 Bui till- Imperial duty would have a ten- 
 dency to favor the trade in (rfher troi)'cal 
 products, such as cofl'ee, rocon, fruit, drugH, 
 lOflhoKany and dye wo(mIh, an<l mlKli't In- 
 crcaHe the export of iln'se from Hrltisli Cul- 
 ana, lirilisli Honduras and tlic \V<-.s.t Imllan 
 Islands, jflvhiK these a slljjht pi'efi-icnce 
 over such countries as (iuatcmala, lOfpia- 
 dor, HrnKll and Venezuela. Such advan- 
 tnKes 'n tradi' would lie welconn'd by our 
 fellow-subjects in the tropics, who have re- 
 cently snlVered much loss and dlsappidnt- 
 uient by the NUddcii cliani,'cs In tlic larlll' 
 of the Inltcd Slates. 
 
 It should not be left out of consideration 
 that the Initegrlty of the Kniplre will be 
 all the better maintained, and Its defence 
 all the more strengthened If the systcin of 
 le\yinK an a.ssessmcnt for Iinid-rlal (brciicc 
 is oni' wlilcli will at the siiinc tinn^ bcnelU 
 the inateiial Interests of the contributors. 
 If it should n(»t have such an effect, then 
 It mlnht be anticlpaitod thai jfreat dlfllcnlly 
 will be experienced Jn coliicliii),' the coii- 
 trilMiillons. A few Imperial fedeuitlonisls 
 may consider it (piite iiracl.icalde to olitjiin 
 these from the consolidated funds of llie 
 various parts of the Empire, but the Impe- 
 rialist's admiration of his Ideal Is not con- 
 tflglous, and his enthuslarm has no etTect 
 upon those whoee mental vision is only open 
 to the pro6pe(vt of material advanUi«e. 
 
 Ci>liden said: "You may reason ever no 
 logically, but never so convincin>,'iy as 
 thi-outfh tile pocket." It should be made 
 evident to the Bovemments of the outer 
 Empire tJiat It Is to their interest to con- 
 tribute. Thin they will be unable to soc If 
 tlieir contributions art' to be In hard cjish 
 out itt their ordinary revenues. But Bhow 
 them tliiut the manner of contrlbutlnfj will 
 benefit their trade and give them pr^-for- 
 
 ences In llrltlsh nuirket« over the whole 
 world, and any unwIlliuxnesM they may dJ»* 
 
 play wdl soon dlfuippear. If the various 
 e<*lonleH of the I'hiiplre agree to roiiuibuie 
 towards lis defence it Is ^urely most rea- 
 hoiuible to Insist u|H>n their being put on a 
 better f(M>tlng than foreign nations In tlicir 
 ti'ade with each other, ajid with the Mo- 
 Uier Couiiiry. This is u poitu whli'li might 
 be conceded very gracefully by iOngland. 
 It is very evident to thow who know any- 
 thing about the stales of the outer Km- 
 plre, that the only plan by which Kngland 
 can hope to obtain their consent to contr'- 
 bute substantially towards Imperial defence 
 Is by giving tliein a slight commercial pre- 
 ference ill I'.imlish markets. 
 
 Ih'sMes, any other plan would produce 
 allogethei- diiTiTeiit results from those 
 "lilch the people of ICngiand are ustnilly <^re- 
 (lUed whtli desiring. Huppose that the jire- 
 fereiicc just referred to were not conceded, 
 and that Kngland should decide to exact 
 linin lier colonies ('ontribiitlons for naval 
 defence mid Iinperlal purposes In hard cash 
 fioin their rc'-pective treasuries, wiiat would 
 be the C(mse(|uences? The majorlTy of Uio 
 jiossessloiis referred Ut Would simply have 
 to raise the mone.v rcfjulred by liiiTeased 
 duties on imported goods. Siii'Ji would cer- 
 tainly Ive the ease ill the Doiiiliiioii of Can 
 ada, whieli li;is no other means of procur- 
 ing revenue. In tills way iuter-lJrltish and 
 other coinnieKc would be :;till more Im- 
 peded, and any plan of ribtnlning direct 
 colli ribntloiis for Iinperlal purposes would 
 simply have lli." efTect of est^ibllsliiiig still 
 more flrnily the protective systems of the 
 outer Empire. If the people of Kngland 
 desire gradually to ab>dish these, the first 
 Klep to be taken in that direction Is to es- 
 taliilsh :in Impcri.il tnrllT on foreign impor- 
 tations, relieve the colonies as much .as 
 possible from undertaking their own de- 
 ft iice. mid so enable them to leduce tlie 
 duties leviable under their sevenil locil 
 tariffs. 
 
 IS, modified to 
 e\s, apply more 
 South Afi'lcan 
 tliat In the 
 system contrl- 
 Duld be aeeept- 
 ferentlal treat- 
 jhout the Em- 
 West Indies, 
 »uch Impost a» 
 
 CHAPTER VIII. 
 Colonial Action 
 
 It is frequently stated by English public 
 men and statesmen, that any proposition*! 
 looking towards closer Hrltl*h union should 
 come from the colonies. This opinion does 
 not appear to have. a sound foundaitlon, and 
 far the colonies to take the initiative would 
 
 surely be to reverse the proper order of 
 things. The United Kingdom possexwes at 
 the present moment the hegemory of the 
 British Empire, and the larllatuei^t of Eng- 
 land is the only body legally entitled to 
 leglsJate for tlie British possessions as a 
 
m 
 I 
 
 1 
 
 90 
 
 COI.ONIAI, AlTKiN 
 
 wliolf. Tilt' government wlilcb p(>H»*tt(M4't« ita 
 
 c-olltllH IICI- IK lur 1M<»|>»1 llUi'iioilly t.i illllkc 
 
 IM-oposnli* ill till- (III t<-l loll of vlm'i- union, 
 I'ltlur loi- loiiiiiKit r, drfi'iici' or ImiMTlal 
 rt'itn RfiiLilioii. Hcsldi.H. no Nliittl"' ••olKiiy 
 can do more than Kp«>iik for lUi'lf. nor Iiiih It 
 
 llJiy illllllxl il,( io <.ni>>iil- i( l.l> .ii i.tatlvi't. 
 
 fi'om the oilnii* for cont«ulliiilon. It in tnif 
 that Caiiailii was able to brliiK about the an- 
 Ht'inbllim of su( li n'lircxciitatncH In Ihc 
 
 confi'ri'n( t is'.H, but this was an I'Xlr.i- 
 
 ordinary step, only .liisilll. d by \\n> bui'cch« 
 wlilcli (iltfinbd It. Snili conffii'iiccH cannot 
 be Ill-Ill vi-ry rcailily, anil tlii-ri' an- no coii- 
 stituiid iiiianH for provokliiK mutual con- 
 bultatlon or aitloii on llo' part of tin" culo- 
 nlxs. 
 
 As it tnriK'il out in ili' tiisr ol' ilic iiliUi- 
 \va (yonfi rriH r. llii- liiiii'li ib'slrctl pruposa's 
 from the rojcinlrs iiici with as iltlli' favor 
 fnini Lord Kipon as Hlinilar propomils from 
 ('anada had provlously rccoivi'd «t tho 
 Inuiils of Lord KiiutKrord and Sir Mirliaol 
 Jlirks-Mcaili. Till' pidpositlons wcri' ilc- 
 cliiiid by tlic ('oloiiial Si'i rtilary of a Lib 
 ciial Covrinnii'iit, and Mr. ( 'liaiiibt'rlain, in- 
 stwid of ri'C'iiiisldcrlnK tin- derision of his 
 prodi'crssor, and making; a countor proposal, 
 was only iiblo to say, •Make us anolhi-r of- 
 fer."' This hi' did when h" di'llvrnd his 
 famous raiiaila <'lub spcrdi and nialiiialniil 
 that in llie (aiiaillun Miyp'sllon which iic 
 had been discussing', "then- is no sufllclent 
 (|nld iM-c. ipi.);''!ilso when In- said, in his Cliain- 
 bcrs of Ciimnierce aiidr(-.s.s, "I do not con- 
 Bldor tliait it would be either wise or prac- 
 ticable that a piH)po8al of this kind should 
 ooiiie in the lii-bt iH;^taiKO from llir riiiicd 
 Kiii;,'doin." 
 
 nut why should it be assunu-d that it 
 la the bu.slnoss of tlie colonies to make 
 proi)osals, only to bo criticized and reject- 
 ed by Knglish statesmen V It must seem 
 very plain to most i)eoi)le that, under the 
 existing arrangeinenis between Great lUl- 
 taln and her colonies, the latter have tiie 
 best of the bargain, and therefore it is not 
 to their Interest to disturb it. Why, in 
 these days of "buying in the cheapest mar- 
 ket," should the average colonial commu- 
 nity desire any change? They are proud 
 to be loyal subjects of the Queen, althongh 
 they do not pay one cent of the household 
 expenses of Her Majesty. They enjoy the 
 advantages of the diplomatic and consular 
 6ei-vices as much as the inhabitants of the 
 British Isles, and that certainly without 
 cost. It Is also well known that, In nego- 
 tiating trade treaties, the expensive niii- 
 
 chlnery of the I'orelKii nfthe Is fnipieiitly 
 plactJ at the Her\U'i of the coloiiliil ^ov- 
 ornuu'iitH ifriitlH. Kvcn the llritlsh I'.ir- 
 Ibinieiit Is o<'(-aNionaIly called up<iri to leg- 
 Islale for the outer Kiniilre, ami tlie {'<do- 
 nial lifllee solnellnieH Interests Itself In 
 the >-><im< Ixli.iir. all out of pure g< iiem.;! 
 ty and without even ho much as hinting 
 at recompeiiKe. Added to this Is the t*lu- 
 pendous adv.intiige which the colonial Km- 
 pire enjoys, absolutely without cost, In the 
 proteelioii of its shipping and siiores 
 against spoliation and aggression from 
 every quarter. Nevertheless, common co- 
 lonial calculatiiig niilure» and the average 
 sound, solid, sordid liusiiieKS man may 
 llnd iioiliing III all this to make tlieni wlnh 
 
 for any clian^'e. The inaiiag eiit of llielr 
 
 own pollt;eal iilTairs and the coiiliol of their 
 own tMriff MrningeinenjlH an- entirely In 
 (heir own iiainls. Tliey are pi'o'<perous,coni- 
 forlable and contented, and It Is evident 
 tliat, from a material point of view, there 
 e.visis no leasiiii why tliey should make 
 proposals about I'.nlisii Irade or voliinifer 
 to contribute lowiirds naval defence or 
 other Imperial piirjioses. If tliey should 
 lie miulred to do so. other arguments will 
 probably lie necessary to Induce ihein to 
 
 c ply than lhi»-e fotmded men'ly upon 
 
 p:iiUiiili.-m and a sense of duly. 
 
 ,\ltliciut,'li, fniiii a m.iterlai point of view, 
 and looking at the matter very narrowly, 
 Indeed, there Is no Induceinnt for (Canadians 
 to busy theiUM'lves about Imperial federa- 
 tion, still the (acts remain tliat they do 
 take an interest In Hie subject, and that 
 il.elr giiveriinient has not remained Inactive. 
 'IMie Imperial sentimenl is widespread in 
 Oaiiada. wliere It Is also realized iluit the 
 coionli's are the outposts of the lOmplre, 
 and most liable to sulTer, at the beginning 
 <»f a war, from hostile attack. Hence all 
 loyal r.rilisii colonists are desirous, when 
 the Empire is at peace, and sviieii tliere is 
 lime and oi)pi)rt unity for d( lilieisulon, that 
 thorough preparation should be made for 
 defence. Moreover, they generally enter- 
 tain tiie opinion that since the various parts 
 of the Empire are bound to stand shoulder 
 to shoulder, fight the same enemies, and 
 generally to "sail In tin- same boat," these 
 parts aiie entitled to some advamtages over 
 nllen coiiimniiities in less troublous times. 
 They believe In showing favors to esich 
 other in matters of trade and commerce, 
 and helping each other vigorously in time 
 of peace, to earn the sinews of war. They 
 consider that it would bo right and proper 
 
CoKoNiAi, Action 
 
 31 
 
 H frciniciitly 
 oliiiilal H<>v- 
 trltlwh r.ir- 
 ii|i'>n to li'«- 
 III tin- Colo- 
 ItHi'ir In 
 
 ll'i' >;rlll I'liil 
 
 as lillltltiK 
 Is till- Hill- 
 I'liliiiilal Kiii- 
 C.lHt, 111 tlic 
 
 mill short'H 
 
 ■ssliiii frciui 
 
 coiiiiiioli I'"- 
 
 the avcniKi? 
 
 iiiaii niuy 
 
 .(• tlHMIl WlHll 
 
 iniiit of tlit'lr 
 .iilml of tlK-lr 
 
 r Cllllli'ly 1" 
 •O'pl'rnMS.fnlll- 
 It Is (Vllll'llt 
 
 )f View, tlitro 
 KliKiiM niakf 
 
 l,V VdUllVittHT 
 
 1 (icfiMict' or 
 
 tiny »liii\il<l 
 
 irnmiiciits will 
 
 ,(lucL' lln'in to 
 
 menMy "P"" 
 
 ly- 
 
 l.uint of view, 
 very nariowly, 
 t for ("aiiailiaiiH 
 lupfi-la) f.dfra- 
 
 thait tlH-y do 
 iji'tt. ami that 
 iialiH'l Inactlvo. 
 
 wulcKpriNKl ill 
 ■all/.(<l lliat tlio 
 of the Kmplro, 
 t the Ix'ffliiiilii^ 
 ack. Heiict' all 
 desirous, when 
 1 wlic'U thorc is 
 tlili.'iBUioii, that 
 (1 !)(> inaile for 
 generally cntcr- 
 ,hi> various parts 
 ) stand shouldtr 
 e oncmlt'S, iiud 
 line boat." these 
 advamtjif^os over 
 troublous tlmeis. 
 
 favors to each 
 ■ and connnerce, 
 gorouely In time 
 vs of war. They 
 right and proper 
 
 for KiiKlitiid to prefer In her niarkelH the 
 jirmliieiH of the outer Kniplre lieyond 
 tliiHte of the forrlKiier, beliii,' ut the name 
 time |iie|iai'td to act In the eolonlM In a 
 eorrt'iKHidlng manner with regard to KuK- 
 llsll goi.ils. Tliey felt, however, that din- 
 eriuilnallon against lor«'lgii counirieH would 
 never be ol>taini'd III lOiigland. until the 
 colonies had begun to dlitorliiilnate In favor 
 of Kiiglaiid. Ileuit- their dlHgu»l aiitl iiidlg- 
 iiatlon on leumiiig that they were debarred 
 from taking aelloii lu this dlrcetloii l>y trea- 
 ties made liy l':iigland In rself with Kelgliitn 
 and (lei many, wlileli expressly pri'eluded 
 pi'efereiiiial liscal inatmeiit of Ilrlllsh 
 KimmIs by the colonlew and dependi-neles of 
 ilie lliitlsh I'rowii. 
 
 It Is uiineiessary to detull (he varloim 
 Hteps 111 ken by the Caiiadian (iove-riiinent 
 to gel lid of Ibesi' treaties. II Ls sufneb'llt 
 to hiiy that those, until iiulle reeeiitly.wero 
 uiisueeessfuj. The idpeclful and li-glll- 
 inate reiueNi ntatlous of the (Canadian I'ar- 
 liaiiient, and the resolutions of the Ottawa 
 Oiiifereiiee, f.illed to inlluenee the Kngllsli 
 (lovermiieiii or cause ihein to move in tiie 
 di'siieil lUiei'lloii. The more poslllvt; aelloli 
 of Sir Wilfrid I, Hurler's < io\ irniiHiil bail a 
 d'lTerent cITeci. .V dlserlmiiiatloii, uclually 
 put In practice in I'lUor of Kiiglish giM)dh 
 set the existing law uL dellunce, enlit^ted 
 the sympathies of ihe lOngllsh people, and 
 caused Ihe deiiouneemeiit of till treiitles. 
 These events seem to justify the remark 
 tiiiU i:i. gland lecpilres to be bullied Into 
 taking steps tlial are maii'festly to her own 
 nd vantage. If slie had doiiouneed tlie trea- 
 ties a year earlier, .-ihe would liave Ihk-ii in 
 exclusive possession of the preference grant- 
 ed by Canada. As it Is, the reduction of 
 duty bad lo be exti'iidcd to almost every 
 foreign country, and. strange to say, witli- 
 helil from the luiled Slates, and all llrl- 
 tlsh possessions, excepting New South 
 Wales. This absurd state of affairs will, 
 however, be brought to an end on July :«), 
 l.SOS, wlu'n the antual abrogation of the 
 treaties takes place. 
 
 Meanwhile, the miestlou as to what action 
 tile colonies should take, in consequence of 
 the abolition of the treaty restrictions, is 
 assuming gn-ater Import^ince every day. At 
 tile Conference nf the I'remlers, when at- 
 tending the Jubilee celebration, the follow- 
 ing resolution was passed unanlmou.sly : 
 "That in the hope of improving tlie tntde 
 relations between the Mother Country and 
 her colonies, the Premiers present undertake 
 to confer wlUi their colleagues with a view 
 
 lo Meeing whether hlieh a reitllll Would be 
 |iro|)erly seeiirwl by piefereuce given b,v Uie 
 <-o|iinleH lo liie piiMluet/4 uf (irent Itrl'nlii." 
 If Ihe rieniiers Keep faith with .Mr. Chuiu 
 berlaln, tiny will liiai.e e\eiy elTorl to eii- 
 tubllsh mieh tarliT arrangemenlH aH will 
 gur III! adv.iiiiage in tiieir maikeis to lOiig- 
 land and her possessions, and to these alone. 
 In order ihir iliis may be done eiTei'tiially 
 a warning was given by Mr. ('liainlK'rlalii 
 in his opening adiirc h ut the i 'i>iifereiie(> 
 that eiilanglementH with the iiiosi favored- 
 iiailon elauHe ithoiild be avoided, nnd that. 
 If aii.\' colonies desired to make a prefeifn 
 tbil lu'rangeuieiit with the Mother t'ouniry, 
 the oit'ir slioiilil lie made by name and to 
 the .Miiibcr Country only. 
 
 (If eiiiirse. sir Wilfrid liiiurler and ids 
 (iovi'i nnient are as miieh bound by hucIi 
 reHoluilou.s and warnings nn any <)ther co- 
 lonial adnilnist ration, and il will be iieeeH- 
 Miry til eoiisliler Iheiii Well lu uiiy leglsla- 
 t'oii wlilcli Is iinderlaken by parliament 
 during I III- cumiiig si ssion. It Is Imiioslble 
 to overrate the importance of tin- matters 
 then to be discussed, and wlilcli have to do 
 With I lie future trade relations of the va- 
 r'ous parts of the i'impire. I'eMiaim the 
 most imporiaiii buslne»< will be the fram- 
 ing of the larllT regi.latloiis wliN'li are to 
 take effect after tile aelual abrogation of 
 the treaties. It iiia.\ eviii be a ipiestlou 
 as lo whether the present reelprocal tariff 
 should not bo repealed at the earliest pos- 
 .'«lble nionieni. for it is causing a much 
 greater loss of revenue than was at tlrMt 
 aniiPipalcil by Ibe g.i\ eriiineiit. The aver- 
 age annual amouiil of revenue heretofore 
 colleoted (iji guilds I'rolii the I'lilteil Kilig- 
 doiii, and all foreign countries except the 
 lulled States, amounts to .$rj.'J.''(0,0(K). A 
 deduction of one-eighth of this sum will 
 amount to about I'd niilllon dollarH, 
 and, after allowing for those duties upon 
 which there is no rebate. It may safely be 
 said that the reciprocal tarilT is riwpon,slble 
 for a loss of If l.'JUi 1,(11)0 of annual revenue, 
 or of one and a half niillioiis up to the end 
 of July ISOS. The government can scarcely 
 allow tills loss of revenue to continue be- 
 yond that time, nnd It Is even doubtful as 
 to whether tliey can afford to put the pre- 
 ference, which they propose to give to Kng- 
 I'sh goods aft'r the treaty exj ires. In the 
 shape of a rednotion on the ordinary dutlOH. 
 <'wing to the loss of revenue already actual- 
 ly sustained, and thi; fact that no great 
 reduction In the expenditure of the govern- 
 ment is to be antJclpateil. It would be much 
 more jud'clous to lmpo.se an extni ad valo- 
 
iSiSm, 
 
 22 
 
 C01.0NIA1, Action 
 
 i 
 
 rem duty on fonlBii Importations ovit und 
 alx.vi- the onllimry rntrs, rutluT tliiui cou- 
 t'uue the syfttoin of grant int; a rt-bato on the 
 duUt>s collected on goiwUs fnoiu (J rent Url- 
 tiiln. 
 
 ThiTo are two additional reasons which 
 should weigli strongly In favor of such a 
 policy. 'I'l"' "rst of these I'es In the con- 
 sideration that Knghuid is not likely to lag 
 behind any of her colonics in generosity, 
 and win not fail to nciproc.-ite Canada's 
 action, giving ns the same measure of ad- 
 vantage in Knglish markets that she has 
 obtained In I lie Dominion. With her present 
 tarltr aiangemen'ts. Kngland cannot give 
 any prcfrreiice to her cohmhi.; by reducing 
 duties, because slie levies nolle on tlie pro- 
 ducts ill which they are interesti'd. Hut it 
 would be easy for her (and she Is in the 
 liiglicst degree likely to imJtate Canada, 
 111 niiiiiuer and substance, as proposed In 
 this es^ay), to levy tJie same rate of duly 
 1.11 all foreign impiU'tJltlons. Not only would 
 Canada's action iiilluence her powerfully, 
 but public opinion in England would be en- 
 tlrelj f.ivoiiible to the step, it having be- 
 coiui- abniidantJy I'vldent that foreign na- 
 tions, althongli enjoying complete fnH'dom 
 of aeciss to ICuglisli markets, have no in- 
 tention of coiiceiliiig a like liberty to the 
 l"iilt(>d Kingdom. 
 
 The remaining reason why CiUiada should 
 act in the way suggeste(l Is to be found In 
 the nee(>!j^ity of ni.iklng some response to 
 the very plain hints slie has received as re- 
 gards (iontributiiig to the defence of the 
 
 Empire. It would wein to be the height of 
 folly to Micritiw any more revenue until 
 this matter had received attention. It was 
 referri'd to In many of the speiehes dellver- 
 (Ml by the statcrsnien of the ICmplre, while 
 Uie JnblUM> was being celebrated, and Mr. 
 Chamberlain, in addressing the rrenilws, 
 expressed himself as follows: "We are look 
 Ing to the colonies still as children, but 
 rapidly approaching manhood. In the life 
 time, perhaps, of some of us, we shall 8*>e 
 the population doubled, and certainly In the 
 lifetime (tf our descendants tlu-re will b<> 
 great nations where now then> are cora- 
 panitlve sparse populntions: and to estab- 
 lish in the early days the iirlnclple of mu- 
 tual support, and of a truly Imperial pa- 
 triotism, is a great thing ,of which our co- 
 lonial statesmen may well lie proud. I 
 shall be very ghid to lii'ar the views of the 
 ri-emlers in regard to this (lucstion. of any 
 oontrib.Hlon which they think the colonies 
 would be willing to make In order to es- 
 tablish this principle in regard to the naval 
 defence of the Empire." This Is a claim 
 for which Canada Is at least morally liab'e. 
 and th(>re Is no doubt that It will have to 
 be met sooner or inter. Tt would be both 
 honest and manly on our part If we were 
 to declare our Intenllon of doing so at once, 
 and make an otTer to devote the proceeds 
 of the extra duty on foreign gi>ods refer- 
 red to above as a contribution to a naval 
 defence fund, provided always that all the 
 rest of the Empire, liieluding England, 
 would make their contributions -at the same 
 rate and in tlit> same way. 
 
 % 
 
 CHAPTER IX. 
 Iimpp:rial LkgIvSlation 
 
 There was point and pungency In tJie sen- 
 tence that was spoken on .Tune 11. by tJie 
 Hon. Mr. Turner, I'reuiler of the Colony of 
 Vietoi'la, at the United lOmpIre League din- 
 ner. ".Make your offer," sMid he, "and the 
 colonies will welcome It In no huckstering 
 spirit." This was said to on assemblage 
 of English gentlemen, many of them en- 
 gaged In business, and all favorable to the 
 estnbll;,nment of preferential trade with 
 the colonies. 
 
 The last phraae In the sentence wa» evi- 
 dently Intended to recall the celeb«iited 
 remarks of Mr. Chamberlain in tlje sipeech 
 delivered by him a yejir ago on June 9, at 
 
 the third Congress of the Chambers of Hom- 
 nierce of the Eiiiptre, and which are here 
 quoted: "We know how strenuously the 
 rolonJcs cling to their ludependfuce, to thirlx 
 own initiative. If they desire, as we desire, 
 and as we belb've they do, this closer union 
 —if they are willing to make some sacri- 
 fice of tihelr present arrangements and con- 
 victions to secnne It— let them say so. Let 
 the offer come voluntarily from them, and I 
 believe It will be considered In this coun- 
 try, not In any huckstering spirit, but that 
 It will be entertailned as part of a great 
 policy which is Intended to tmlte In the 
 clo,<»e8t bonds of affection and of Interest all 
 
IMPHRIAI, LKCilSI.ATION 
 
 2!» 
 
 height of 
 I'luie until 
 in. It wns 
 it^s doUvcr- 
 [)irc, while 
 1. imd Mr. 
 
 riHMnlws, 
 ■(■ arc Iwik 
 llilnMi, but 
 In th«' llfp 
 
 ■l. Slinll 8«M> 
 
 inly In the 
 
 rp will hi' 
 ' are coni- 
 (l to ostJilv 
 ■iplc of mu- 
 iniiciial pn- 
 liicli our co- 
 proml. I 
 
 i,.ws of tho 
 lii>n. of any 
 tlu" colon ios 
 order to es- 
 to tlio naval 
 is :\ claim 
 orally Hab'e. 
 ^Yill have to 
 uUl be both 
 
 If SVC were 
 ig so nt once, 
 the proceeds 
 
 g(KHls refev- 
 II to iv naval 
 , that all tho 
 np Kniiland. 
 j -at the rtanie 
 
 mbers of Com- 
 lih-h are here 
 rciuiously the 
 (lf>nce, to their 
 , as we desire, 
 is closer union 
 ie some sncrl- 
 nents and con- 
 m say ko. Let 
 m them, and I 
 In this eoun- 
 iplrit, but that 
 irt of a great 
 ) unite In the 
 I of Interest all 
 
 the comrauniti(>s which are under the IJri- 
 tisli Hag, and all the subjects (»!' Her Ma- 
 jeisty throughout the world." 
 
 What did the Colonial Secretary and the 
 Premier of Victoria mean by « '•huckster- 
 iuK snirit V" No donbt I he spirit of llie 
 Iicddler, of the petty bargaiucr.wlio beclouds 
 witJi a multitude of words the defects of 
 liis wares, just as the diplomatist Is said to 
 u.se ian;,'iiaKe to conceal liis thoughts. We 
 have a^ little fear as llie authorities above 
 UKntioned, that the methods of the retail 
 dealer will cause any difdculty in such com- 
 mercial negotiations as amy become pos- 
 sible between tiio Mother Country and her 
 colonies. There is, however, a spirit mucli 
 more to be dreaded in such matters llian 
 that of the huelvster. We refer to the spirit 
 of the monopolist, of the large capitalist, 
 who belicve»s tliat ho has the upper hand. 
 and wlio thinks that all he has t() do is to 
 wait stolidly and callously until otlier less 
 fortmiate iKoplc come to his terms. It is 
 he who most frequenitly uses the words 
 "make im- an olTer," rejects it readily when 
 made, and does not trouble himself about 
 making any counter propoidtiou. He is con- 
 tent to li>t the nefjjotiations draK, until the 
 necessities of the b<»rrower or tiic seller 
 compel them to make such a sacriflce as to 
 render the bargain an undoubtedly profitable 
 one to the man of money. 
 
 The policy of England town,rds her colo- 
 nies in commercial matters (but in those 
 alone) has been leavened not a little by 
 this spiiTit of the self-sufHcleut <Mpitallj<t 
 during the last ol) years. Owing to tlie 
 dominance of the free trading or rather 
 free importing party, the ft'ciing of rela- 
 t'onship in race and interest with the co- 
 lonial Empire was suppressed. The canny 
 Scot used to say, "It's not lost what a 
 frien' gets," but, under the intlnenee of 
 free tindeisni. Scot, Southron and Cell be- 
 came as cold as codfish to their eoioni.il 
 brethren. It is to be hoped that the lime 
 is rapidly approaching when the Impi'rial 
 Government will ••ibondon not only the spirit 
 of the huckster, lint that of the usurer as 
 well, and make an otYer in generous and 
 confiding terms, with all the details lilleil 
 up, to all the British colonies, whieli will 
 tend to consolidate the Empire both as re- 
 gnnds conimerc(> and defence. 
 
 It has already been attempted in tliis 
 essay to give rea.sons why lhi> Imperial 
 (iovernment should take the inltlativ<> in 
 this matter, and what their proposal should 
 be has «>lso been fori'shadowed. In whart 
 
 manner it should be made dcK's not adtnit 
 of iniieh doubt. At the rei-ent Premiers' 
 Confereni'c tile following n'soliulon wa,s 
 nnaniniou>ly adopted, wliirh ivtablislies an 
 institution for receiving and disen.s,siii;,' such 
 proposals: 'Meanwhile, the I'remiei-s are of 
 opinion that It would be desirable id imld 
 periodical conferences of representatives of 
 tile coleni, s and (ileal liiitain for the dls 
 cussioii 111' matli'i's of eonmiiHi liitensl." A 
 coniiiiuiiieal Ion rrnin tlie Ilonn- (ioveniineiit 
 to the aulhorllies. stating ilieTr iilaii, mikI 
 calling anotlier Colonial Conference to dis- 
 cuss it, might readily lead to the desired fe 
 sull (d" siniuilaneoiisly estalilisliini; I'.rilisli 
 commercial union and iiroviding a revenue 
 for Iiiiperiiil purposes. .V delinile proposi- 
 tion, end>raeiiig a >chcme, such as deserihed 
 in this essay, iiiiglit be laid befeie sueli a 
 conference by the Home (ioveriiineiil. Nn 
 doubt such proposals c(Mild at once be laid 
 befoiv parliament, but it would he wisei' 
 to have them discussed previously at a 
 confei.ciice of culoiiial representatives. As* 
 in former iiistinces, the latter would b-^ 
 unable to bind their reispective governnieiii.":, 
 but they coiird say what would lil;ely be 
 acceidable in the colonies. 
 
 Tlie Imperial Covernminl would Iheii lii^ 
 ready for legislation in parliament, and 
 could [lass their iiiejisiire, wlii<'li would, of 
 course, provide Ihat it slioiild not apply In 
 the outer lOmidre until after acceplaio'e by 
 the vai'ious authorities and parlianieiils i\ 
 istlng thei'o. 
 
 Such a measure would levy on Imperial 
 duty of (!'.j per cent, ad valorem on aH 
 g(Hi(Is arri\iiig in any and <'very Uriiish 
 p(»rt. over and above the dilTerenl local 
 tarilTs there in fiu'ci'. It would provide 
 that the proceeds of tliiis particular duty 
 collected in England should be kept s-pa 
 ral<.> from her other reviMiues, and apidied 
 only for naval defence, ll would eiiael that 
 the same proceeds in llrilisli possessions 
 beycaid the sea should lie reiiiitlcii tn Hie 
 Home Covernmenl, and devoted to the same 
 purpose. Ii would also be uiidej'sliMid that 
 any part of the Empire declining to agree 
 to this ariiangeimnt would have its pro- 
 ducts treated like iliose from foreign I'oiin- 
 Iries and siilijecled lo the iiaymenl of the 
 Imperial duty. There cannot be any doubt 
 as to the manner in wliii'h such eiiaelnieiils 
 would be received by the well disposed 
 colonies and I'rown deiiendendes. They 
 would only be to<i willing to contribute in 
 this way to Imperial defence and obtain 
 at this price a pref(>reiice in the market)^ of 
 Great Britain. 
 
uilUiJt 
 
 !«n 
 
 24 
 
 IMPHRIAI, LECtISLATION 
 
 i 
 
 It may be urged that taxation without 
 rei>rcs€ntfltloii is an impossibility In theso 
 modern days, nnd tliat therefore a customs 
 union of the nature proposed in this essay 
 eoukl not be curried into practice without 
 providing for the representation of the outer 
 Empire In an Imperial I'arlinmonr. To do 
 this would, r)f couiisc. occasion very much 
 delay, nnd It beeomos necessary to state 
 here that the present writer docs not pro- 
 pose anything In the nature of parliament- 
 ary representation. Neither would this ap- 
 pear to be necessary, because the commer- 
 cial advantages whicli the proposed arrange- 
 ment would bestow on every community of 
 the Empire would suffleiently compensate 
 them for tlie taxation to which they would 
 liave to suhiiilt. Of course it is open to 
 doubt as to whether this view would bo 
 adopted In all parts of the Empire. Ear-h 
 would have to decide for Itself, and each 
 would have the choice of submitting to the 
 taxation pnoposed, or remaining outside of 
 the Imperial customs union. 
 
 What would be the position of any colony 
 which might refuse to comply with Eng- 
 land's requirements? It would not cease 
 to be part of the Empire, and would no 
 doubt continue to enjoy gratuitously the 
 same measure of protection which England 
 so generously affords it at present. But its 
 products \\ould be subject to the extra Im- 
 perial dtity when sent to England or to any 
 other of its possessions which had joined the 
 TmpiTlal customs union, and it would thiv 
 be foreed to make some contribution to Im- 
 pi-'dai defence without getting anycredft 
 for so doing. Tn course of time the obstre- 
 perous colony would And Its circumstances 
 quite Intolerable, and It would ultimately 
 be glad to improve thrm by accepting the 
 proposal of England and making its contri- 
 bution like the rest of the Empire. 
 
 It does not seem likely that the proposals 
 above stated would be difficult to incorpo- 
 rate In a bill to be prepared by an expe- 
 I'ienced parliamentary draughtsuiau. Por Its 
 short title such a bill miglit be called "The 
 Imperial Xaval Defence and Customs T'nion 
 Act." and its preamble should recite the 
 necessity for making better provision for 
 naval defence, by obtaining a general reve- 
 nue for the purpose throughout the Emplr«.-, 
 and simultaneously establishing an Impe- 
 rial customs union. It should contain clauses 
 for the following purposes: 
 
 \ The creation of a special fund or ac- 
 count distinct from tlie Exchequer of the 
 
 United Kingdom, and to be called the naval 
 defence fund. 
 
 2. I'Incing the management of this fund 
 under Uic Lords of the Admiralty, and em- 
 poworlng the latter to ccmsult the Agent«- 
 (Jcneral of the various colonies, and the 
 governments of the Crown dependencies re- 
 garding expenditures in the various British 
 possessions. 
 
 3. The payment out of this fund of the 
 ccst of tlie British fleet and ail colonial 
 ships of war; also of the outlay necessary 
 for all Imperial fortresses, coaling and 
 cable stations, as well as cable and steam- 
 ship subsidies promised by the Imperial 
 Gov&rnmciit. 
 
 4. The levying of an Imperial revenue 
 duty of GYj per cent, ad valorem on all Im- 
 portations into the United Kingdom, whe- 
 ther from foreign countries or British po«-- 
 Bossions, of goods whicli are free of duty, 
 and an extra duty of O'/i per cent, ad va- 
 goods which are dutiable; the proceeds of 
 these duties to be paid Into the naval de- 
 fence fund. 
 
 5. The remission of this extra duty on the 
 goods imported from any British posi-iession 
 whenever it is found that the colony or de- 
 pendency in question lias imposed an extra 
 duty of Gi/a per cent, on all their foreign 
 importations, and arranged to pay the pro- 
 ceeds of this duty into the naval defence 
 fund. 
 
 Perhaps It would bo unnecessary to draft 
 a special bill, and possibly Its object could 
 be accomplished In connection with the Cus- 
 toms Act of the United Kingdom. In this 
 case it might be more convenient for Her 
 Majesty's Government to take power (1). to 
 impose an ad valorem duty of from two to 
 tm per cent, on all importations (with the 
 exception, perhaps, of raw cotton), whether 
 now dutiable or not, inciuding those from 
 the colonies and other British possessions, 
 and to take power (2) to remit this duty on 
 importations from Hor Majesty's posses- 
 sions in the outer Empire ,the governments 
 of which undertake to impose a like duty 
 on all their importations from foreign coun- 
 tries, to contribute the proceeds of tiiis duty 
 to an Imperial defence fund, and to make 
 such modiflcations In their several local 
 tf^riffs as might be deemed reasonable by 
 Hor Majesty's Government. 
 
 To illustrate these proposed provisions In 
 the case of a co' v, the effect would be 
 that, at first, its commercial status would 
 continue to be the same as at present, i.e., 
 
iMl'liRtAr. IvIvt'.ISI.ATlOX 
 
 35 
 
 the same as any forolgn country, mid next, 
 that it would be Impelled to make appll- 
 ciitlon to be nleased from the payment of 
 the Imi)erlal ad valorem duty on the goods 
 It sends to tJie markets of the United King- 
 dom. Tiie Imperial Government would then 
 111 netrotlallon with one or all of th(> colo- 
 iili's, have power (1) to penult them to je- 
 tuin their present local tariffs; or (2), to 
 insist upon such changes in these as would 
 admit English goods at lower rates of duty 
 tlum those charged upon the same descrip- 
 tion of foreign imports (in accordance with 
 Mr. McNeill's resolution of 1802), or (3), to 
 liisl.st upon the elimination of the protec- 
 tive principle from the colonial tariffs fa.s 
 suggested In Mr. Chamberlain's speech of 
 March 25, 1896), or (4), to decline to malse 
 any arrangements at all with single colo- 
 nies, such as exlBt in South Africa or Aus- 
 tnalla, until they had been consolidated 
 Into a dominion. It would seem that in this 
 way the Imperial Government would occupy 
 her rightful position, and a much stronger 
 
 one than as the predominant member of a 
 ISrltlsh conimerclal conference. 
 
 In conclusion, the present writer may be 
 fxcused for reiterating the opinion that 
 there is no other way in which a revenue 
 for Imperial defence can be so readily ob- 
 tali.ed as the one outlined in this cssiiy. 
 Nor is tliere any beitter plan for securing 
 the permanent and willing adhesion of the 
 colonies to the Empire. All that is neces- 
 sary is prompt action on the part of Eng- 
 land; she has the game in her own hands, 
 but, to win it, she must lead trumps like 
 a good wiiiat player. The practlcabliity of 
 the plan is undoubted. It may be carried 
 out at any rioment by England, so great is 
 the power she wields by reason of her enor- 
 mous trade. Everything depends on her 
 willingness to use this power for the pur- 
 pose of securing Iniperiai unity, i)rovidlng 
 an Imperial defence fund, incidentally en- 
 couraging lier home and colonial trade and 
 establishing an Imperial customs union.