THE OTAGO DAILY TIMES. SATURDAY, NOVEMBER 20, 1909. TRADE WITH CANADA

Otago Daily Times, Issue 14686, 20 November 1909, Page 6

THE OTAGO DAILY TIMES. SATURDAY, NOVEMBER 20, 1909. TRADE WITH CANADA

An interesting development in the promotion of reciprocal trade between Canada and New Zealand is now under the consideration of the Canadian Parliament, The purpose of the movement is tho establishment of a direct steamer service between the Atlantic coast of Canada and New Zealand. Each Dominion has articles for export which the other does not produce, and many of those articles which both produce are interchangeable by reason of the geographical positions of the two countries. In existing circumstances the absence of a direct line severely handicaps the trade.. Most of it-passes through New York, where freights are unduly inflated by tho operations of those who control the shipping companies and are interested only in the exportation of goods-manufactured in the United States. For the same reason the volume of trade between the two Dominions is difficult to measure. In the books of reference which are available tho imports cf Canada are credited to the country of purchase or to that whence shipment is.made to Canada,

aud in the rase of exports the 'reference is to the country to-which shipment is made. For example, Canadian wheat purchased by New i'ork dealers, shipped to and entered in bond at New York and thence exported, would appear only as exported from Canada to the United States. Taking the figures available, however, we find from the Statesman's Year Book that Canada exported to Now Zealand in nine months of 1007 goods to the value of 657,000d01. If the exports for the remaining three months were in corresponding scale the valuo of them for tho whole year, will have been about 876,000d01, or £175,200. But our own Official Year Book gives the valuo of the imports' from Canada for that year as £154,76(5. This illustration demonstrates one of the difficulties to be experienced in measuring the volume of trade between the two ■ countries. But it is evident that the figures merely touch the fringe of the possibilities. There exists a market fur hides, tallow, skins, kauri gum, and flax in places like .Montreal and Toronto; and Canada, for her part, has many commodities- to offer which New Zealand does uofc produce, and may never produce. The new proposal to develop the trade may be shortly described. The Canadian Manufacturers.' Association proposes to despatch eight steamers a year to New Zealand direct, calling, if cargo offers, at the four principal ports, sailing thence to Australia, and returning to Canada. The points of departure from Canada will he Montreal in summer and St. John or Halifax in winter. Tho steamers are to be of 0000 tons 'burden, and u guarantee has been given of 50,000 tons of cargo per annum. This condition fulfilled, the Canadian Government is asked to give a subsidy of £20,000 per annum for three years, after which the line is to be unsubsitlised. Tho merchants of Australia- and New Zealand are now being canvassed in order to ascertain what measure of support may be expected at this end. It seems, therefore, that a good opportunity now presents itself of opening up a'direct reciprocal trade with Canada, In this way 1 would be secured the advantages conferred by the preferential tariffs. The preference offered Ly New Zealand to Canada ranges approximately from 11 per cent, to 22 per cent., and Canadian preference was raised in. 1900 from 25 per cent, to 33$ per cent, in favour of countries; which accord reciprocal treatment to Canada. It is evident that the Canadians recognise the advantages of direct communication. The delegates from the Dominion to the Chambers of Commerce Congress at Sydney tignified their approval of the idea, and their opinion was cabled to Sir Wilfrid Laurier. The Canadian Commissioners in Australia have also signified their approval, and have notified their Government accordingly. Canada is a largo importer of wool and woollen manufactures and of flax, and she offers a not inconsiderablo market for timber, provisions of various kinds, and leather, and these New Zealand is in a position, to supply. With preference in the matter of duty and with the freight charges at a natural level unburdened by the operations of tile present controlling influences on shipping trade at New York, Now Zoaland importers may probably find it t« their advantage to buy in Canada. It is quite evident that the balance of trad© with Canada is very mu<;h against New Zealand. The valuo of the goods exported to Canada in 1907 is set down in the Official Year Book as £17,989. In 1906 it was only £7704. No doubt the opening of the Panama Caual, some five or six years hence, may to some extent modify the conditions, and, although Canada will soon have three trans-continental railways running east and west from seaboard to seaboard; the conveyance of goods for export by rail a distance of about 3600 miles from the manufacturing districts in the east of the Dominion is impracticable. Tho outlet for tho products and manufactures of Canada must, therefore, be on the east coast. Hitherto Canada has allowed that trade to be dono through the United States, but the introduction of preferential tariffs has promoted a desire for mercantile stopping independence. This is a legitimate aspiration. There are, it is true, physical disadvantages to contend against. Montreal, tho principal port, now that the merchants have abandoned Quebec, which, is the natural port and is cpen to the sea. all the year round, is closed by the freezing cf the St, Lawrence for at least four months of tho year. A way could be kept- open with ice-breakers, but the rates of marine insurance for the winter months are prohibitive. Halifax or St. John is available to some extent, but the closing of the St. Lawrence is the principal reason for the shipment of Canadian goods in the pas'- through tho United States. The passenger trade will probably remain with the Vancouver line, which to Australasians has Ihe recommendation of boinn"All Bed." Those who go one way via. Vancouver and return via Suez enjoy the most magnificent tour the world offers. Yet for the reasons we have mentioned the Vancouver route is not suitable for cargo. At present what New Zealand receives via Vancouver consists mainly of rubber goods and the more expensive kinds of wooden ware. The institution of a direct trade route is, in all the circumstances, distinctly desirable. It would also he practically an "All Red" route. And the "All Red" sentiment is very strong in Canada. The strengthening of commercial bonds with other parts of the Empire of which Canada is proud to bo a part should have' a practical as well as a sentimental value. Sentiment or no sentiment, however, the project seems to be good business, and no doubt New Zealand merchants will not be slow to recognise it.