*

Chart showing the values of the free imports into Canada from the United States and from the United Kingdom, for the years 1890-1 to 1905-6.

15 -UNITED KINGDOM.

'96-7

18-46

6-86,
00-66

FROM
4-6 4-6 4-9 51 5 5 54 7-6 9 9-9 11 11-2 12.4 13.5 151 18
U.S.
U.K. 2-2 2-1 2-2 2 16 17 19 1-9 1-9 2-6 2-3 2-9 34 34 31 34

increase was only some 200,000l. In 1905-6 the value of the free imports from the United States was within a few thousand pounds of eighteen millions. In that year (ending on June 30 last) the value of the free imports taken from the United Kingdom was only 3,454,000l. In 1890-1 the value of the free imports from the United Kingdom was approximately 2,200,000l. So that while the United States succeeded in sending in free imports that rose from four and three-fifths millions to eighteen millions, the United Kingdom only succeeded in sending in free imports that rose from two and one-fifth millions to three and two-fifths millions! This fact, taken in conjunction with the enormous preponderance of dutiable goods taken from the United States, will prepare the reader for the result shown by the following chart, in which is shown the percentage of the total import trade of Canada supplied by the United States compared with that

*The figures upon which the chart is constructed are those given in Viscount Ridley's 'Return,' already referred to.

supplied by the United Kingdom. For the latter half of the period the United Kingdom has been receiving the benefit of the preferential tariff, otherwise the tale told by the chart would doubtless be even more unsatisfactory to citizens of the United Kingdom. Let us, however, thank Canadian statesmen for their goodwill towards us, as well as for the fact that they are asking for no alteration in our fiscal system, and let us hope that in the near future public opinion in the Dominion may influence the ministry to reduce still further their oppressive import duties.

In 1905-6 the percentage of the total imports into Canada that was supplied by the United States was 60-39, and the percentage supplied by the United Kingdom was 23.75. In other words Canada drew from the United States rather more than three-fifths of her imports, and from the United Kingdom considerably less than one-fourth. The chart tells its own tale as to the rapidity with which Canada is taking more and more from the United States and less and less (i.e. not absolutely less,

but only less in proportion) from the United Kingdom, notwithstanding the fact that such preference as she grants to the United Kingdom mutually benefits the Canadian consumers and the British manufacturers and exporters. The Atlantic Ocean serves as the great barrier, and will always act as an ally to the United States in her competition with the United Kingdom to supply the wants of the Dominion, and the value of this alliance far outweighs any possible scheme of preference. But let the facts be recognised; and do not let us be misled by false sentiment, particularly when it takes its origin in unsound arguments. And, above all, let us remember that mutual goodwill between Canada and the United Kingdom was never more pronounced than at the present time, despite the Dominion taking the bulk of her imports from the United States. We have now to consider, on its merits:

THE AUSTRALIAN OFFER OF PREFERENCE.

'I hope that the majority of the British Parliament will recognise this as something more than an offer. It is an overture from us which is not to be regarded as a bid, but as a suggestion of friendly negotiation.'

Such was the message that Mr. Deakin sent on August 30 last, when he laid on the table of the Australian House of Representatives a Motion, increasing the duties by 10 per cent. on certain classes of imports when they were not imported direct 'from the United Kingdom in British ships manned throughout by white crews, and guaranteed to be the produce or manu'factures of the United Kingdom.'

The message is couched in friendly terms, and despite the insignificance of the offer to a country that imposes practically no import duty whatever upon the produce of Australia (except upon wine), it is but courteous to consider, even if it be somewhat wearisome, the details of the offer made by the Commonwealth.

The first point to be noticed is that exports from the United Kingdom will be taxed 10 per cent. more when they fall among the following classes: firstly—and this applies to the bulk of the goods sent from Great Britain-those goods that are carried in ships whose crews are not wholly composed of white men. The employment of Lascars, or any coloured subjects of his Majesty, upon British ships carrying British-made goods to Australian ports will make the goods liable to the increased duty; secondly, goods that are carried from Great Britain

but are not the produce or manufacture of the United Kingdom, and within this class are all goods of foreign or colonial origin, which are so largely carried in British ships to Australia; and, thirdly, all goods, whether of British manufacture or not, that are not carried by British ships from ports of the United Kingdom. It may be worth the while of some enthusiastic tariff reformer, anxious to consider and prefer the claims of all Britons but those who are resident in the United Kingdom, to work out what the value of the goods-imported from the United Kingdom, of British manufacture, and carried direct in British ships, manned by crews composed wholly of white men-may amount to; but we cannot help feeling that had Mr. Deakin been furnished with this estimate he would never have troubled himself to make the offer.

But the offer has been made, and Mr. Deakin is here to support it, and to point to it as a reason why the British House of Commons should discriminate in favour of Australian produce, the imports of which by the United Kingdom amount to a very considerable sum each year.

Professor Hewins, at the Constitutional Club, said

'that the Commonwealth had adopted a scheme of preference with the United Kingdom, the striking feature of which was the desire to give us a preference upon our shipping. This question of the navigation policy of our Empire was about the most fundamental question that we could deal with,'

and Mr. Chaplin supported the Professor by declaring that the question of preference' was most vital to the future of the British Empire and of British trade itself.

How does Professor Hewins consider that British shipping would benefit from the imposition of the various restrictions comprised within the limits of the Australian offer?

The following are the classes of goods upon which the Commonwealth of Australia offers a qualified preference to the United Kingdom: (1) arms, ammunition, fuzes and dynamite; (2) painters' colours and materials; (3) boots and shoes; (4) plated ware; (5) pickles, sauces, and condiments; (6) bicycles, and parts thereof; (7) cutlery; (8) furniture; (9) starch and blue; (10) woodware; (11) clocks and watches; and (12) gas and oil engines and turbines. In the table below are shown the Average Annual Values of these classes of British manufactures

* For many reasons it appears to be more fair and more satisfactory to take the average over a period of years rather than any one year.

exported from the United Kingdom to Australia for the five years 1901 to 1905. (See Annual Statement of Trade of the United Kingdom, 1905.')

We have been unable to ascertain from the Annual Statement of Trade' what the value of the export of gas and oil engines, and turbines, to Australia has been; but the above values for the eleven classes amount to a total of 1,539,000l. It must be borne in mind that the Australian Government do not intend to reduce the existing duties upon any of these British exports, and that they do intend to increase the duties upon all these goods unless they are carried to Australia in British ships wholly manned by white sailors. The average annual value of the total exports of British and Irish produce and manufactures to Australia for the five years is 18,271,705l. (see p. 396 of Cd. 3022), or rather more than eighteen and a quarter million pounds, whereas the total average annual value of the eleven classes of goods named above is about one and a half million pounds, so that upon eleven-twelfths of the exports of British manufactured goods to the Commonwealth it is not even pretended to offer any form of ' preference.'

The average annual value, 1901 to 1905, of the arms, ammunition, dynamite, and fuzes, exported from the United Kingdom to Australia as having been manufactured in the Kingdom, is seen from the above table to have been 518,000l., or about one-third of the 1,539,000l. worth of British goods exported in the 'preference' classes. But this total value (518,000l.) falls short of the average annual value of the British and Irish spirits exported to the Commonwealth, which stand sixth in the list of the principal British exports to Australia, as is shown in the following table.