OUR CANADIAN LETTER.

Otago Daily Times, Issue 16288, 22 January 1915, Page 2

OUR CANADIAN LETTER.

(From Oiju Own Cohrkspondent.) OTTAWA, December 4. If I could at this moment, get into touch with Dunedin by long-dislance telephone, and were asked what conditions had been developed in Canada by tile war, I should bo obliged to ask for some delay in order to "lake a proper reply, for the effects of the great European conflict are being felt in a wide variety of ways. Some of effects are on the bright side, but most of them are distinctly on the dark side. Loyalty and patriotism have been quick, n d, wo feel proud of what we are doing for Iho Empire in her hour of need, we are con-

scions of the strength and virility of our national manhood; but on the whole, judged by ordinary standards, the war is pinching us quite severely. The winter, usually a 6eason of social activity and general jollity, is looked forward to with anxiety. To the I news of buttle, the sight of soldiers everywhere, and the stir incident to the organisation arid movement of troops we have already grown accustomed, i was almost going to say that war had become commonplace, but that would be an exaggeration. It would perhaps be nearer the truth to say that tile edge of novelty had become dulled, while the interest had actually deepened. Un the other hand, we have many grave reasons for realising that a powerful and destructive force is smiting us with relentless vigour. Let us go a little into detail. Before the war broke out there were clear signs of commercial and financial disturbances. The harvest in the ,prairie provinces had not come up to expectations. Over the whole country a check had been given to speculation of every class—and it had been running freely, at times madly, for a number of years, Tho banks had adopted a policy of prudence, baeed on an intimate knowledge of speculative conditions, and " stringency" followed. The Customs barometer showed that imports were falling off. It is a reliable instrument, and always reflects domestic depression. Most of our imports from Europe are in the nature of luxuries, and our import trade is exceedingly sensitive to the assertion of prudence on the part of those who ha,ve been spending freely. The moment they are hard up, or expect to be hard up, imports decline; and, unfortunately for the publio exchequer, such imports pay the highest rate of duty. The fir6t signs of a sagging revenue began to appear in the early part of the summer, and that sagging should have been a warning to everybody, but it wasn't. Twenty years of almost uninterrupted prosperity had made optimists of nearly everybody. Such signs were regarded as having reference wholly to conditions "which wore temporary. Then came the war. Like a thunderclap out of a clear sky the first cannonade m

Europe smote upon our ears. Frankness and accuracy compel me to say that had not the Kaiser struck the tocsin, and had there not been even mutterings of war, we should have had a taste of hard times in Canada during the current winter. That much was inevitable. Such depression would havo caused hardship to many, particularly in the West, where imprudent speculation and a series of short harvests have produced abnormal conditions; but the dominion as a whole would have merely suffered from inconvenience. It would take a great deal more than that to really stop tile progress of the country. There might be a pause in the general upward movement, but only a pause. The foundations ot production would not be in the least impaired, and tho i commerce of Canada would quickly respond to tho impulses of underlying strength. But the sudden plunging of uli Europe into a life and death struggle was a cataclysm for which no preparation had been made nor could have been made. It produced a stimulation in certain directions; but on tho whole it has given us a staggering blow ■ —staggering as much because of its suddenness as it effects. For tho first three months of the war — that is, up to tho end of Octobcr—imports had fallen off by nearly 30 per cent., or about £10,000,000 in round figures. At that rate there would be a decrease of £40,000,000 for the year. For the month of November the full facts are not yet available; but it has already been announced that the revenue, as compared with the corresponding month of last year, shows a falhig off of r.early 50 per There is, however, a countervail. Exports had only decreased by about 16 per cent., and they are showing signs of -steady betterment. There has also been an unprecedented importation of coin and bullion, amounting for the first three months of the war to nearly £16,000,000. This was due to the fact that the Bajik of England had directed the shipment to Canada of gold balances due by the United States. Tho Canadian Government hae been made tho custodian of this treasure. It does not constitute a part of our nroper imports. In tho aggregate, combining imports and exports, there was a dcclino of £20,000,000 for the three months ended October 31, which is a serious matter viewed from any standpoint. At tlie same time, fliere nas not been any perceptible let-up in the industrial life of the country—that is, in the ordinary classcs of production. The principal disturbance has boon in the stoppage of construction work and in the general hindrance of enterprise.

At the outbreak of the war practically all shipping came to a standstill. Steamers which were not taken over by tho Admiralty were tied up in ports because of fear. Their owners could not be assured of safety in the Atlantic nor the Pacific, and in tho absence of definite assurances from the War Office they took no risks. There is no longer any particular danger from German cruisers, but tho whole business of shipping has been thrown out of normal channels. Sailings are uncertain, even of liners, and tonnage for spccial shipments cannot always be held. In fact, the disturbance to shipping is at the present time ono of our acutest troubles. Very large demands havo been made upon us by the warring nations, as 1 shall stiow in a moment, and we are hampered at every turn in taking advantage of these orders by our inability to make delivery. There is a very great shortage of ships. We have what is wanted, but wo cannot get it sent abroad expeditiously, and sometimes not at all. Tor example, a vast quantity of perishable products, such as riotatoes, which had oeen contributed for Belgian relief by the farmers of Canada, had to sold on the dock* at Montreal to prevent freezing before shipment could be made. There has been a distinct and encouraging stimulation to many industries in Canada by special orders from Great Britain, France, and Russia for war supplies. In a largo measure this haa helped us to meet our troubles in general, aided by the very largj orders given out by our own Government in connection with the equipment and maintenance of contingents for the front. Thus far the orders from Great Britain alone aggregate about £4,000,000, and there is every probability that this business will grow. For example, there is not a woollen mill in Canada to-day which is not working at full capacity. Some which had' been idle for a long time are norw going night and day. The shoe factories are very busy, and the saddlery works have enough to keep them going for months. Wo are also turning out very large quantities of war ammunition and arms, quite apart from our own needs. Te makers of clothing have all they can do. The demand for foodstuffs is also strong, and in many directions the war has created activities which go a long way toward offsetting the smashing of other branches of trade. France has ordered about £1,000.000 worth of boots and blankets, and Russia is sharing in a large order for saddles and harness which came for the British War Office. All this is very fortunate and timely. II we could only get the ships we should probably be able to make up in this way a large proportion of our losses, It is fortunate also for the reason that it is enabling us to give employment to a great many workers who would otherwise be idle. If the orders keep up we may be aDlo to meet quite nicely a situation whieh might very easily have become appalling during the cold months. As it is, our people are making extraordinary preparations to deal with the menace of suffering and poverty during the severity of winter. In all our large centres this has become necessary by reason of the conditions which have been created by financial depression and directly by the war. One of the most cheering aspects of tho situation as a whole is the readiness and whole-heariedne.-s with which all classes of the community have thrown themselves into tho work of dealing with domestic needs and Tae calls upon our means for war help. Ii we are losing in some directions we are clearly piling up an as.tet in charity and real religion wnich will exceed the monetary measurement of our losses a thousandfold. There is not a home, however humble, from whieh help in some form is nut proceeding; and a people thus doing are surely growing rich m the things tnat count m the tinal reckoning.

Jf I were asiied wnat ims l>c.n the most silinificant outcome of the war in Canada I should be obligrd to say the development j jf a spirit of sai-rilioe and service. It needed such a gruit calamity to unify dispeople in cnterprisi s of love and wean them from wholly selfish indulgences. 'I his calls of society are being in largo measure subordinated to the needs of our soldiers and work for those who must have help during the cold months of winter. In this work the women, who always rise to sublime heights when the cull is urgent and n-onu-ine, lead. It ia simply splendid to see what the women of Canada, young and old. irrespective of social rank, are doing to meet the emergencies created by the war. It is perhaps just as splendid to see what

tho men are doing; for tons of thousands lof them art; offering tin-if lives. Those who lire imahlo to oiler I hat supreme .-racrifii e are helping in other ways, and helping willingly and gladly. 'I liul is the main thing -the spirit behind what is being done. The whole country i.s aroused to the point iJlat practically everybody is ready to do \vhat"ver i.s required 1,0 bring about I.lie triumph of liritish arni.s, and, in the meaiii time, to meet, the «ills for means and ell'ort in other proper directions. In all lli.s there is not only Willingness, but theie is pus live enthusiasm. Our people are a unit in all tnat makes for s-ueei s 1 - at the lioiu and the meet; of uef;(ts at home. Canada now litis 34,000 men in I'.'tiglatnl. who will assuredly be in the firing line belore this letter reach's \ew Zealand, and lias TO.O'JO others under arms. 'I hi' lirst colli ;ngent is composed of a line class ol lighting men robust, eager, intelligent, and in earnest.. The eontingi lit.s in training at home, the second of which will soon he on the way to iSaliabniv Plains, are not one whit infeiior; and as they leave our chores other units will spring into being. It is the definite plan of the ilovernrtu lit to have not less than 58.000 men in home camps until the close of the war, no matter what, the ultimate number may be. The men now being recruited are of excellent type, and there i.s not the slightest difficulty in getting tliem. For (Simple, in one of the western cities it was announced the other day ti;at 100 tnen would be required from that centre for a certain unit. Next morning £00 were in waiting for enlistment. It is so all over the dominion. The only difficulty which jiint now looms up is in securing a sufficient supply of suitable and properly-trained officers.' At first, there was a .surplus; now there is a serious likelihood of a shortage as the work of organising further contingents proceeds. We are not well informed as to what is going on in these respects in either Australia or New Zealand. It has l>een announced that t.ho first contingents had left; but, their destination was not given. Later it was given out (hat they had"been landed ' n -USTpt, and this has been corroborated by subsequent despatches from England. In that event they will have favourable climatic conditions for tmining, and will probably have an early chance to meet the Turks in battle. The Antipodean soldiers are held in high esteem in Canada, as the result of the fine reputation they ma.de for themselves in South Africa. England will find that she can depend on her colonial troops to give a good account of themselves. They are imbued by a fine spirit, are sturdy, intelligent, and determined. They have all the qualities whieh make the British soldier the best fighter in the world. We nave a large number of alien prisoners in Canada, and there would seem to bo an intention on the part of the military authorities to continue stringent measures. AH the men who German names in the first contingent: have been sent home from England, and none of that nationality will be allowed to have anything to do with military operations in Canada. We have a considerable German population, and: across the border are many Germans who might be disposed at any time to try some desperate venture in the dominion for the purpose of diverting attention to domestic safety. To prevent this thousands of soldiers are guarding the frontier, the railways, the canals, and large public works. Ihe active and positive sympathy of tho United States with the cause of the Allies, although our neighbours are nominally neutral, may be counted on in any emergency. There irf anxiety with respect to hostile Germans in the United States; but nothing whatever in the nature of foar. In all our cities there are home guards which could be turned to account on short notice. They are drilling regularly to be in readiness.

Belgian relief proceeds actively. The cash fund already readies £200,000 but the aid in food and clothing far exceeds that amount in value. Many shiploads have been contributed, and some of the food supplies lias reached England. The trouble, as I have already said, has been in getting ships. The demand far exceeds the supply. Even the children of Canada arc getting up a special fund for Belgian children. The whole nation has been deeply touched by the sad plight of Belgium, and in tho United States the same feeling linds expression in relief measures on a colossal scalc. It seems probable that very soon adequate supplies will be in Belgium to meet at least the urgent needs of tho starving people. It was the treatment of Belgium which turned our American neighbours definitely and strongly against Germany, and all the special pleading of press bureaus organised in the United States by the Germans cannot change that feeling. The war is going to have a distinct effect on Christmas festivities in Canada. Christmas is tho greatest of all our feasts, and it is always a time of general goodwill and much present-giving. This year, however, there will be less present-giving in tlii aggregate than over before, although there will not bo any let-up on donations to the needy. It is one of our national boasts that nobody goes hungry in Canada on Christmas Day, and to a large extent that is true. The retrenchment will be in other directions. Christmas week is the biggest shopping period of tho year, but our merchants have anticipated the conditions which now prevail, and have not laid in their usual large stooks. As I write we are waiting for Christinas weather. There is scarcely any snow in the country, and there has been little of severe frost. Nevertheless, there is plenty of time to correct all that. .

Two large interests have been hard hit by war conditions —the apple trade and canned fish trade. The exports of these commodities have fallen away very seriously. In fact, when the time came for shipping apples there was no demand from abroad, and ships were not available if there had been a demand. In this emergency, and in view of a phenomenal yield, the Dominion Government took special steps to encourage domestic, consumption in districts which do not produce much fruit. Among other things, a beautifully illustrated book was got out, giving 150 rccipc6 for the cooking of apples. It served its purpose admirably. The price of apples has never been so low. Little has been possible for the canned fish industry, as the production is remote from the chief points of consumption. For years it has been a problem as to how this difficulty might lie overcome, and it still remains only partly solved. Horses to the value of £800.000 have already been bought in Canada for war purposes, and tho country is being combed for further supplies. Still larger numbers have been purchased in the United States. Tho prices paid have been high, and notwithstanding all that has been said about the automobile putting the horse out of business, there has never been a time when this useful animal was such a valuable asset.

The railways, whieh had begun to feel the depression before August, have been seriously affected by war conditions. Traffic has fallen off very perceptibly, and that means lower earnings. Our railways, however, are sufficiently strong to stand quite a bid of hard times.

I should have said, when speaking of our first contingent, that one of the units of the Army Medical Corps has been sent to France, and is at work there. But our band of pretty nurses has been left in England, and it is said that Great-Britain is not sending women to the front. Our Indians expect a hard and trying winter, because of the sudden smashing of the fur markrt. Such a thing has not occurred for 300 years. Tho Government., however, is taking measures to prevent suffering. Fur garments have taken a great drop in price in Canada.