CANADIAN AFFAIRS.

Lyttelton Times, Volume CXV, Issue 16491, 5 March 1914, Page 5

CANADIAN AFFAIRS.

INTERVIEW WITH MR J. B CLARKSON,

HARD TIMES IN THE BIG DOMINION;

Yesterday morning Mr J. B. Clarkson, managing director of the firm of Messrs J. B. Clarkson and Co., returned to Christchurch alter a visit to America and Great Britain. He left Auckland on August 2D of last year and made a very extensive tour through the big dominion. Speaking to a reporter, Mr Clarkson said that he travelled by way of Victoria and Vancouver to Seattle and then across the Rockies to Calgary, Edmonton, Moose Jaw, Medicine Hat, Regina, Brandon, "Winnipeg, to Toronto. After visiting Woodstock, Loudon and Montreal, he went to New York, where lie took ship for Great Britain. UNEMPLOYMENT IN WESTERN CANADA. “ In Western Canada,” Mr Clarkson stated, “ I found business very bad. Tliis was due to the fact that out there they had borrowed money very rapidly and during the last six months the supplies of money were cut off. The flood of loan money caused laud booms and similar movements, and men took full advantage of them, hut when borrowing became impossible, land values dropped. Speculators were forced out of business and a good many out of the country, leaving liabilities behind them. There was a large amount of unemployment, hut of course there must always be unemployment in Canada during , those very severe winters. In Toronto early in January it was said that there were 30,000 unem-. ployed, from ten to twenty thousand in Winnipeg, and from ten to fifteen thousand in Vancouver. I was told that large numbers of people worked without pay in order to tide over until the spring came. One result of the shortage of cash and unemployment was that rents dropped very heavily. In Vancouver they wenV down to half or one-third of the usual rates. “ But in spite of all this the Canadians out west are optimistic. 'They have a country capable of large production along certain lines. When 1 was there, word came of the successful flotation of a loan for Calgary, and people said that they jwould be able to get along and get the money they wanted if they went slowly.” DOMINION FINANCE. „ The system of raising Joans in Canada did not commend itself to Mr Clarkson. Not only did the Dominion Government go on the London market, hut the State Governments and municipalities went to the same source. Naturally some of the smaller bodies hail not the best security to offei, and asa result rates of interest were high. -Cheaper nioney*;shbuldvbo-(obtainable if; ' tlie Dominion GavesjjnhTif iontroltee!; tte speaking)businesst'jn Canada ;was -hampered by lack of capital, and many- merchants were seriously overstocked. Rates of interest were very high. Last October the Hospital Board in Winnipeg was paying 8 per cent on its overdraft. From 8 to 10 per cent could he obtained on first mortgage, and the bank rates ran from G to 10 per cent. By comparison, business men in New Zealand were well catered for in the matter of money. “ You can understand that Canada is influenced by the United States .to a great extent. Graft in Dominion and local politics is not unknown, and these methods are generally traced over the border. The Canadians are waking lip to the corruption of public life and realise the necessity for cleaning .things up. A strong movement has been started and 1 think that they will succeed all right. CANADIAN RAILWAYS.

“ They are building, thousands of miles of railroad in Canada, and every mile carries a Government grant. The amount guaranteed these railway companies by the Govei;nment is appalling About six months ago. the Canadian Northern went to 'the Dominion Government for a grant of 15,000,000 dollars and got it. I heard on good authority that the security offered was worth only 500,000 dollars and that fhe amount granted was paid into the Canadian Bank of Commerce in reduction of an overdraft of 36,000,000 dollars. If the bank had not received that sum it could not have carried on. and the Government would have had to face The of a great financia l crash* The Canadian Northern has had '26,000;000 , dollars JS, of S Government money, during the; past'two and a- half, years, . but the company, and not the people, own. the lines. ■ A PACIFIC FLEET. “During my,stav in Canada I mentioned, whenever an opportunity occurred, the. .possi.bil.ify .of „.a triple. alliance between - Oanadaf Australia " and. New Zealand with a view to forming a Pacific unit of the British fleet under our own control. The idea , was very favourably received. You see, Canada has - a long sea Trout on the Pacific and is getting some of the overflow from Japan. The - Asiatic menace was a serious problem there. My idea was that with such,an,alliance it would be possible to come to some understanding with the other great Pacific nation, the United States,” f V

In Gre.at Britain Mr Clarkson found trade extremely Busk and manufacturers 5 were fortunate iri having plenty of 1 capital available. In Germany manufacturing interests had suffered severely from, the tightness of the money market. Many factories had closed down and others worked only half-time. Towards the.end of the year the financial outlook had improved considerably. One, thing which struck Mr. Clarkson very strongly was the opening Canada presented as a field for securing suitable immigrants for the dominion. Hundreds of thousands of people poured into Canada each year, but- the severe winters and other drawbacks made them discontented. Many would be willing to come to New Zealand if the advantages this country could offer, were held out, and; the Government should open offices- in Winnipeg and other centres. In more ways than ore such a move would benefit New Zealand.