Extract from Canadian Letter.

Auckland Star, Volume XIX, Issue 146, 21 June 1888, Page 5

Extract from Canadian Letter.

In reply to your letter re the results of a protective policy in Canada, I cannot do better bhan give you the experience of my own firm. When I first commenced business, things were quiet, but some time afterwards bhe American civil war created an immense demand, and production was greatly stimulated. During the continuance of this war, the Canadians were able to supply local demands, and even to export to

a limited extent; but after its cessation, the production ex-ceeded the demand in the States, and their manufacturers set themselves systematically to work to crush out Canadian manufacturers. This, from the fact that they had such a large home population to work upon, and that they rigidly protected our goods out of their markets, they were enabled successfully to do. One manufacturer after another in the States would take it in turn to undersell us, and year after year we found our business decreasing and our profits turned into losses. For the three years preceding the introduction of Sir John Macdonald's, or the protective policy, our losses were 51,206, $1,800, $2,000. Our artisans had to leave, and wages were down to §1 per day. After the introduction of the protective policy, wages gradually increased till now they are $1.25 to §1.50; but notwithstanding this increase, we find that our business improved, and our losses were turned into profits, and now we are doing one of the largest) businesses of its kind in the Dominion, our trade extending all over Canada. And now comes the question, Who are the sufferers by the increased rate of wages and the, perhaps, enhanced prices of some of our productions ? Certainly not the farmers. They are well pleased, because they find not only an increased demand for their produce, but tli6y are able to sell many articles of a perishable nature which formerly they could not export, and for which they had no demand. Certainly nob the Government, for they find that the increased purchasing power has led to the consumption of articles of luxury which are dutiable to such an extent that they are nob very greab losers. In facb, so generally is this policy esteemed in Canada, that the Opposition have quite- given way on the question of free trade, and have to find other questions upon which to attack the Government. To such an extent has production been stimulated in the United States by protection that they are now utterly regardless of the tariff being able by superior machinery and large output to produce as cheaply as foreign manufacturers.

On the whole, the protective policy has been productive of general satisfaction in Canada, and we are never likely to recede from the position taken up, viz., " Canada for the Canadians."

Extracted from a letter to Mr J. M. McLachlan, Auckland, N.Z., by W. G. Matthews, of the firm of Byers and Matthews, axle manufacturers, Gananoque, Canada.