“Blue Ruin” Talk

Sun (Auckland), Volume III, Issue 687, 12 June 1929, Page 9

“Blue Ruin” Talk

TUSSLE OVER U.S. TARIFF

Canad’s Treaties Assailed (United P.A. — By Telegraph — Copyright) (Australian, and N.Z. Press Association ) (United Service) Received 10 a.in. OTTAWA, Today. NEW ZEALAND butter is being bought by th Ontario creameries for sale to Canadians, because the creameries cannot get enough milk, declared the Canadian Conservative Leader, Mr. R. B. Bennett in an attack on the trade treaties, and the Government's tariff attitude to the United States. His speech was characterised by the Finance Minister as “blue ruin” talk.

Mr. Bennett made reference to the Australian treaty. “Within a few weeks of the coming into effect of the Australian treaty, the Government had had to put a dumping clause against Australian products being dumped into Canada.” Shortly afterwards the Government by Order-in-Council had extended to New Zealand the preferences granted to Australia. The great manufacturing creameries of Ontario were actually importing New Zealand butter and selling it to Canadians, because they could not get enough milk. In regard to the United States situation, Mr. Bennett said: "The real issue that faces this country is dependency. The danger was that Canada might become dependent on another country for the necessities of life.

“More than 200,000 people moved from Canada to the United States the year after the full force of the Ford-ney-McCumber Tariff Act came into effect in that country,” said Mr. Bennett. The Canadian Government encouraged that movement by lowering tlje protection. Now another tariff even more far-reaching was before the United States Senate. How was the Government meeting this crisis? It had done nothing. The new tariff would mean an increase in many cases of 20 dollars a head on cattle going from the Western Provinces. Both the Fordney-McCumber tariff and the emergency tariff which preceded it had affected Canada adversely. Their general effect had been to cut the exports of Canada’s

farm products to the United States by £20,000,000. “SELLING HER BIRTHRIGHT” Canada was buying from the United States goods to the value of £150,000,000 a year, and was selling to the United States commodities worth £100,000,000. And her sales to the United States were largely paper, lumber and mineral products. Canada was selling her birthright in her forests, mines and minerals. The statement had been made that Canada was prosperous because she had a large purchasing power, but that power was due to great crops and the depletion of mineral and forest resources which w T ere being shipped in a raw state to the United States. MINISTER IN REPLY The Minister of Finance, Mr. J. A. Robb, replying, said Mr. Bennett was much exercised over the fact that down in Washington, where the weather is hot, Congress was attempting to determine how much more it would tax women and children in the United States on the milk, butter and bread which they required for their livelihood. One part of the Opposition Leader’s speech had been a statement of “blue ruin,” while the other part referred to existing prosperity. Canada was not trading with the United States alone, but with all parts of the world. Canada believed she could best improve trade within the Empire. In respect to the United States tariff, Canada would be taken care of as in the past. He quoted figures showing the increases in Canada’s trade balances since 1922 with 14 trade treaties, until 1928 with 43 treaties.