CANADA'S TARIFF.

Dominion, Volume 3, Issue 752, 26 February 1910, Page 14

CANADA'S TARIFF.

/PREFERENCE AND NEGOTtATMN. Thirtj yeajs, ago. Toronto , • correspondent of ~"The Times"). Canada adopted the'system;of The: Dpminipn. has hail no more' devoted: Bri.tish loyalist' than. Sir. John Macdoiald,: but'in the teeth of his dearest convictions ;and//prejndioes he finally., became, convinced . that' higher duties ; .WOTe essential to the preservation and /.'extension; of Canadian'industries, and..particnlarly. to' prevent' their destruction. , /by;. American competition. At that , time .the "duties in Canada averaged 17J " per /cent Mr.Alexander; Mackenzie', then"; Prime Minister and, leader of "a Xiberal' Goye'rninent, had designed to raise:the;general 6caae of Customs taxation.to 20 per cent, but 'was prevented by the determined opposition of his enpporters. froin the maritime These provisoes, had enjoyed, very low dnties before Confederation, .and; during; the.; Union negotiations • they" were . .led; tp; believe'that the new Dominion would adopt a; low reyenue'-faiiff. -. These. pledgee were, influential with Federal, statesmen, .but it is doubtful if .they were the. determining'.consideration, with: Sii Job/n /Mocdpnald. Throughout' all: his , career ;he 'was' deeply /concerned' over .the, relations. vbetTjeen ■ Great , .'' Britai n ,' and' Canada. He' was averse .to/any, step-that' would lead , to .friction, between; the Bri-,tish-American provinces and/the Mother Country,- or. that; would have the , savour of ingratitude. , Hence it;-has been said : that he was.'ooaxed and;dragged;into 'Pro-, , tection^by' the , ■ more "aggresdye' ,, elements ..of ;his ;party, less sensitive;, to/British opinion, and-with.less veneration for the .British Jreertrade system": than -himself.•;■ ■,'- The programme of Sir John Macdonald.-was. attacked..by Canadian'Liberals.ae ungenerous ;fco/ the Mother Country, -'and' as -leading directly? towards, separation from the Empire: -..vlnflueittial' commercial;bodies in ;_Great..Britarn'made representatione io.. this effect.', He-.'wae . charged; wd th.. imitating; an-. evil-, American, example!an^;blisph^ming'ffe; ; OTund ; :'oamV mercial |teaching .of. -Bntaint. But once committed to Protection'rhefeeti all'these representations, and objections ruthlessly aside.'' When, he had carried < the country by an'overwhelming, majority ihe.said, acj; cording ijfco Mr... Goldwin Smith,..that as. Protection ' had - done; so' -much':, for '',hiin he.muet; do/something : . for \;Protection.; Under these circumstances, Protection; was established .in'.Canada; andsthe..scale, of duties adopted -in , 187?.. has 'beei'.-main-tained : by:; all ieubceediiig:- Governments with only;slight modifications:>,-' / -"/>/.

:■'■':',' /' The Pi^ference.;;.'. / ; '■-.The '■ chief 'of these "modifications; 1 was the Britisl -Preference of ;1897,;,which now gives British goods ■ of S3',l-3 per cent'. over ) imports.' / from foreign countries.' But neither: in/the..preparation of%the.Tilley^tariff , in: ; lß79,/nor in the'/grant ,pf Pr^ererence' , nearly/ 20 years' later,; was' .'.there negotiation, with the Moiiier -v Conntry , .. It .• is.. true /'that ■ negotiation was necessary.in order to/secure' the/modification of: the .German and Bel-gian-treaties;; bnt : '.;the./pnly''object bf this/negbtiation-'was.-to ' give.-. :effect -to the Canadian policy. • ii; /the: establishment of. Protection as! in the" v gr'ant of Preference;: : ther.e. is ;the assertion ■ of ~'c6r lonial aijd' it.is doubt-; ful; if any' , wiser 'course'"iis*: , open to the Mother Country in-, extending, preferential Dominions.- 'i'.'J- -■■/■ ■' : .'i.:'S' , ':''".''\ : ," : 'i : '.'-- : '' ".".

;In .• thei- ciain: ai- Brittsh;''. tariff? must -be ■'desirted , ''^''-.'.sep^e\jffi ,:, 'nittres£s.j ! '6f,*|he'; M6ther: ; CpunfayV'.';ln',the..)nain: , :a .cPloniaK mnst;;annj-<io's'ser^e;icblbnial::finter'--ests. Both .;mus,fc. have,? regardf fprl'con-' sideratioris of,, feyenue'sand.f the -'iwelfarei of: domestic md,Ußtries. J fe;Alw;a'yß-!'a ?su-' : preme object musfcvbe,,to avoid occasions of'dispute and. coupict:; : i-The';;D.om'inions : do •• not ;jprof ess; to - sacrifice >' n'oine/.'imanu-/' factures, in-order to give a preference to' British/importe:',:All ;they.aim -at; doing; 13 ,te giye; British -traders'-'and .turers ariiadvantage'overthose of foreign - countries.V'and; incidentaUy.ii'and in., mcreasing , degreey.fi) 'refrain, -from I'aisingH' r old,'i duties vor ; iinposiiig new duties which'-Lwouia .be; likely -to dis-tui-b. or .'rratrict: the trade of the Mother Country!-with/(.the.,Dominions. /All that can be .■eipectedifrom:'Great. Britain' isi similars treatment "'of-:.the','colonies. and : a gradual advance towards freer trade , with the ontlying portions of the-Empire, if such.conrse-shguld-.be"warranted by the 'future . action 'of the: colonial Govern-" 'ments.'K;ln :short,-i.f:seems 'probable> that ;will resemblefvery-iclosely!'British ; ''policyl' towards foreign countries, except ,that the '.British, countries will maintain a preferred relation amongst' themselves modined, by a. just, regard' for "domestic industries and stimulated: by a wise concern for-.lmpa-rfal. interests. . V.. "..■"■..■ ••■' - ~ These conditions;and ■ objectsVprobablj' the of" aU;.parts,of the Empire rather: than "by negotiation, which-may' degenerate into bargaining and the hard -coinmercial • balancing of concessions and.advantages It has often been suggested thai.when Great Britain returns a Government favourable to ProteoUon and Preferencei; the first step Bhould be-to call an Imperial Conferenoe.in- which the representsttiree of the Mother Country and the Dominions mayJßit down together ; and elaborate an Impenal tariff.: This, however, ie not the method whiph the colonies 'have pursued in settling their fiscal systems, and tteire is reason to.fear it is a: method that' .would giye .the-minimum.,;of; ; advantage and marimumVof dieadyairfage.: It can-, notibe wise'toiraiseranyvsuepicion thatla Bnttßh;(ariffwillSbe;maae:'t6Aeecure tie ; industrial-, interests'; of the x cbl6niea rather • than'thpsedf the Mother. Country. There is much; to be said for mutual advantages; there is little: or nothing to be said-for. mutual sacrifices. v'TqV. put it bluntly, the. -colonies have , made their tariffs - for... themselves, .and similarly a British Government, must-be; expected to' have, a supreme concern for home-inter-sests;;;':■;,--■.'«..;. ■•■■..■>>/'>'/;>■■?'■■'.■.■•.'■■■.■"■. ■.•'

U :! i The,:DKficulty; of Negotiation. ■ ?;•; This,; perhaps, might : be-a'less , easy task if .oolonKa llinistep in -Vconferenoe . with British Ministers • struggled - to ■ seenre epe- , cial. coniiideration .for colonial , interests at the very inception'of. a'British tariff. Itl is .probable that in ■ all. the Dominions certain interests would endeavour.to secure the ear of their, representatives at the conference, ■ and that -the' ; whole action of these representatives ; .would beembarrassed by the 'pressure , of .local influenbes. ;> Siii>;ly. it;;wouldvbe. : difficult for an Imperial -to ■mafip a tariff for' Canada lor .;■ Australia, fit ; would; not be' less difficult for '■' such^a .conference to .make. , .a'tariff for. .Great,. Britain. The jfeat , strength, of the British. Preference in , Canada is that it is ■ based upon a tariff, which , is :generally; .acceptable ..to' the Dominion, and that.the Preference itself,has the.support.of.the whole.Canadian. In similar ; faeh'ion 'should Tariff Beform.,; be ■: estabUshed ■: in ■. the Mother, Country .fiscal systems, must be adapted to the needs of each country, and; that ample measure of ' freedom ,whibh the colonies exercise;in-the:adjust-ment of iduties-mnstiberconceded-.to 'GreatBritain. ; Any; other course; of. action must breed .friction, and, dissatisfaction,/. and give force to the objection so 'often urged by British Free-traders that, an Imperial tariff may .become,an organ.of: disunion. There :would;be infinite danger that this would be.the result if the colonies interfered, unduly., in'.'the' preparation'of a tariff for. Great Britain., But.the. colonies, themselves have blazed/the way, and'they can ask no more than that the Mother Country should follow-in their footsteps. , :• ■;.*■■'! v- 1 ■■ '• ':■ : .': ■' : ' V V;/':.:■ ; ■■■ ■ 'From time to time; , once a British 7 tariff is in operation,.' interchange of opinion and official representation on .fiscal details betweon the Dominions and\the; Mother' Gountry will become natural land easy.' In; this .way- the preferred relation throughout the Empire may be. improved and extended. V: But the equal authority of .'all the" self-governing -Commonwealths •will have been asserted : and recognised. There will be no sngpestiou; of right of colonial interference in Great Britain. The ample national sovereignty of the Dominions will be unimpaired. In every part of the Empire the Imperial tariff will be adapted to/local needs and conditions, and subject to these to tho er- . tension,;, of . trade . within • the.. British ■Dominions. rThere-maybe^articlespro- , duoed within the colonies which it would be prudent and advantageous both for domestic and Imperial reasons to admit free into British markets. In such cases a; revenue duty could be imposed on similar articles from foreign countries, loir, ojv high -aa may: iudiciouß; or

convenient, and a basis of Preference thus established. In a sense, as .has been said, the fiscal relation; pf.'the,-Mother Country to the Dominions would'not differ greatly from its relation to foreign countries. .Armed with,, moderate Protectionist, duties and'.the means , of retaliation,-' Great Britain would be in a position- to negotiate with foreign Governments for better-, treatment., in their markets,, and/conceivably, the ultimate result would '.be. to turn other nations towards lower duties, to improve the position of British manufactures in Protectionist" countries, and to carry ■ the world nearer'to the ideal of, Free-traders. So with : free; entry ;pf' colonial raw .materials and" a. general Preference in favour of the self-governing Dominions, the; whole tendency .would. ;be. towards closer commercial intercourse, and an adjustment of duties-in-both Great Britain and oversea:designed to confine and to extend trade within the.area pf the. Imperial tariff. .There could be no charges of intermeddling,' no : causes of friction, no suspicion of sacrifice or loss of fiscal independence. On- ■ the r other -hand, all these.dangers and evils may appear if the attempt is made to settle an.,lmperial tariff system by a formal conference between the representatives of Great Britain 'and ■ the. Dominions. ; •