CORRESPONDENCE.

Auckland Star, Volume XVII, Issue 203, 30 August 1886, Page 3

CORRESPONDENCE.

Protection in Canada.

(To the Editor.)

i3iK,—l notice in your issuo of the Oth met a communication by a gentleman in Dun edin on the above subject. , Ho has boon corresponding with Air A. Ciunri and others of a like political bins. Now, sir, it is a well known fact in Canada that the country never was in bo deplorable condition as it was from 1874 to 1879, during the time that Mr Glen considers the progress qf tho countiy to have, been "rapid and substantial." The party then in power (Mr Gu'nn'e political frienda), in accordance with their boast that they would make Canada a cheap country to live in, succeeded in reducing tho price of labour by from 30 to 60 percent. They also succeeded in reducing tho pphoro of labour to such an extent that nearly half tho wago-earnore woro idlo, and holding "unemployed meetings ,} daily, claminering for work from the authorities, or demanding to be fed from tho municipal funds. There was scarcely a municipality in Canada during that timo that did not havo to spend thousands annually in charities. Traly they made Canada a cheap country to live in, but a moat undesirable one for those who wished to see the country prosper, or who were . deponding on their labour fora living. But that was not tho worst of their evil blundering. They changed an accumulated fund of several million dollars that was in hand to an empty treasury, and a large annual surplus of revenue to an enormous ajnual deficit, and theyso utterly ruined the credit of Canada that tiir Richard Cartright, their then Financo Minister, found great difficulty in floating a loan on the English market. He had to sell tho bonds at from SBc. to S9c. on tho dollar, notwithstanding they bore 5 per cent, interest. When a country has to borrow to pay interest, as Canada had, during the time Mr Gunn's colleaguos held office, investors fight phy of their paper. So dissatisfied were the Canadian electors with Mr Gunn's political party ("the Grits") thatat their first opportunity—vii , tho election of 187S - they turned them out of office by an overwhelming majority, and elected a strong protective parliament. Now, mark the change. Protection to homo industries was introduced in 1870, eince which time tho importation of manufactured articles has decreased enormously, and Canada's effort? have steadily increased. The labour of the country is fully employed at remunerative wages, and Canada has felt the dopreeeion of the last two yeaie less than any other countries that I know of. Under the festering care of a protective government, the credit of the country has been fully restored. Canada can get all the money she wants at three per cent. The annual deficits of Mr Gunn's political friends have been changed into |an annual surplus, although several of the necessarios of life have been relioved entirely of duty, such as tea, coffee, etc. Under the Free Trade Government of Mr Gnnn's friends Canada paid from $17,000,000 to 520,000,000 annually to tho United States for manufactured articles, a large percentage of which amount went to pay for labour in that country while their own wage-earners wore idle and starving. Protection has changed all that, and Canada's wage-earners are prosperous and happy. The failure of tho Halifax Sugar Refinery is attributed by Mr Gunn to protection. Protection had nothing to do with that failure; it was caused by lack of capital and a decline in the sugar market; The company undertook with a capital of §500,000 to establish and carry on a businoss that roquired a capital of $1,500,000 to 52.000.000. The only consequence that was reasonable to look for occurred, viz., that after expending all thoir capital, as well as a largo amount of borrowed money in land, buildings, plant, &c, they had no capital to run the business, and after vainly striving, with borrowed money, to establish a business in a falling market, that was already occupied, they had to go under. Mr Glen says that the failures among manufacturing industries from 1874 to 1878 wore comparatively few. The fact is, there was scarcely any manufacturing done in Canada during that time, for Canada could not compote with the United States without protection. Hence the necessity for that policy. But Mr Glen Bays nothing about the failures that ocenrrod in general businoss. The failures of that timo were unprecedented, business was completely demoralised, and no one seemed to have any confidence in either the country or their fellow men. Now all that is changed ; failures among business men were never so few or light, comparatively, as within the last few years, and the general credit of the country never stood better. If, as Mr Gunn says, protection haa proved a failure, it is strange the electors are so determined to continue it. At the la»t election, that policy was endorsed by an immense majority, and about four out of every five of the by-elections go to endorse it. Now, Mr Editor, judging from what I have seen in Canada, I am eatiefied that if a similar policy wore introduced in this country we would not be troubled with the unemployed enigma. If New Zealand were doing tho bulk of her manufacturing there would be no idle men clamoujing for work or assistance. We would then pay to our now unemployed artieane and labourers the money that we are constantly sending out of thie country by hundreds of thousands of pounds to pay for similar labour in Great Britain, tho United States, and other countries. Capital that ia now lying idle would be invested in manufacturing industries, the resources of the country would bo developed, and New Zealand would onco more enjoy prosperity.—l am, &c., J, C, FINLEY. Remuora, August 19, 1886.