The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-18
TARIFF Is LEADING
ISSUE IN DOMINION
Influence Of the West Brings
Spirit Of Compromise in
Solving Problem.
COTTON STOCKS STRONG
Exports Expected to Show
Large Increase Under
New British Ruling.
COTTON STOCKS STRONG
Special DESPATCH to Tnn Sex.

MONTREAL, March 17.-The approach
OF the budget speech at Ottawa. with
prospects of some downward revision in
the customs tariff and some upward re-
vision In the income tax, Is making for
reserve in financial and commercial CIR
Giles In Canada at the moment. Bush
ness continues outwardly active. but in
respect to new enterprise there is a dis
tinct tendency to wait until the uncer-
tainties of the tariff question are out OF
the way.
Reference was made in these des-
patches a few weeks ago to the per-
plexities confronting the Government in
the tariff question. Customs duties are
the main reliance for revenue. and the
growing war debt calls for increasing,
not decreasing revenue. At tho same
time the western Unionists. whose sup
port means much to the present Govern
ments tenure of power. are demanding
In no uncertain tone that the tariff be
| reduced. particularly as 1t affects agri-
cultural implements and other supplies
needed on the farm.
Compromise Is Expected.
In high protection circles there are
signs that the unyielding altitude of the
west. with the growing influence of west
ern representation in Parliament, Is pro-
noting a spirit OF compromise. The So
luton of the Governments perplexities
may be the naming of another tariff
commission TO go exclusively into the
changed conditions as affecting special
Industries, with Immediately some mod
crate concessions in present duties as an
indication of sincerity OF purpose in
shifting the major part OF the problem
to a non-political commission OF experts.
Despite the feeling that reduction
in duties is in prospect the stock ex-
changes have been displaying strength
in rather unexpected quarters. The cot
ton industry, for instance. whose devel-
opment in the face Of strong competition
from both the United States and Great
Britain has depended TO so large an ex-
tent on tariff protection. is not display
ing uneasiness. Within the week the
common shares OF the Dominion Textile
Company. the largest combination or
mills in the country and the sixth largest
In the world, sold at a new high record
price Of 10. and new high record prices
were touched by other stocks OF the cot
ton group, such as Wabasso and Cana
dian Cottons.
Not an Infant" Industry.
Back of this strength is possibly some
feeling that the more important spinners
are now. so well on their feet that a. re-
duction in tariff can be viewed with some
equanimity. They are no longer in the
position of an Infant" industry. Pos
sibly the same feeling pervades other IN
dustries whose securities would have
gone tumblng few years ago at the
merest hint of reduction in customs
duties.
Protests from Canadian authorities
against what was considered unfair dis
elimination against Canadian imports
have been quickly followed by the an
nouncement that restrictions under Great
Britain's licensing system have been re-
moved so far as the overseas dominione
are concerned. The result Of this-in
effect an imperial preference-should be
decided stimulation OF Canadian ex-
port trade and manufacturers are pre-
pairing actively to take advantage of the
changing situation.
The Financial Post notes in connection
with the development OF this export trade
that the Canadian manufacturers in not
few lines in which Canada has not
been notably prominent as an exporter
Is to-day in n position to compete sue
cessfully for important business pro-
vided he can get ships to carry his
goods at reasonable rates.
Arrange shipping Rates.
SO the proposal Is being put forward
that tina Shins now beinR built by the