New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03

VI LNo AaCC CnaC canadian industries
in many lines are comparatively unde-
veloped. Then, too, American publica-
tions, with their extensive advertising
of United States products, constitute
the popular reading of the Canadian
public. Exchange is operating to en-
courage imports into Canada from tbs
United Kingdom and European coun-
tries and, indeed, the imports from
the United Kingdom under the low
levles of the British preferential tariff
constitute a most serious menace to
Canadian industry. On the other hand
imports from the United States are
discouraged to a not unimportant ex-
tent by the premium on New York
funds. The exchange situation as be-
tween Canada and the United States
adian public by increasing the cost Of
coal, cotton, oil, iron, steel, copper,
machinery and many other essential
products which, for the present at
least, have to be imported in large
quantities from the United States.
But it has proved and Is proving a
protection Of tremendous Importance
and stimulus to the development Of
Canadian industry and encouragement
of Canadian buying of Canadian
products.
Tariff Policy
Canadian tariff policy during the
next few years is uncertain, because of
the unstable political situation. The
agrarian interests have been loudly adj
vocating lowering Of the tariff, but
they have been much impressed by the
tariff legislation of the United States,
which is operating to curtail the ex-
port market for Canadian agricultural
products and to increase the impor-
lance Of the Canadian home market.
The recent change in the Canadian
customs act, by which the exchange
premium will be added to the cost of
goods in the United States for the
purpose of ascertaining valuation for
duty purposes, means an increase at
present exchange quotations Of about
one-eighth In the customs duties on
imports from that country. Moreover,
the Department Of Customs has issued
an order that the importer must state
whether invoices from the United States
are to be paid in Canadian funds or in
New York funds or whether the ex-
change is to be split, and the dumping
duty will be applied where the price
paid by the purchaser in equivalent of
Canadian currency is more than per
cent less than the value for duty as
shown by the customs entry. This reg
ulation is aimed at the practice of
many United States firms of accepting
payment in Canadian funds or Of alb
sorbing at least part Of the exchange
or sales to Canada.
1t is improbable that q new Cana
dian tariff will be enacted before the
general election next year, but the
tariff promises to be one of the prin-
cipal issues in such election. If the
Meighen government be returned to
power still further strengthening>of
the Canadian tariff may be expected.
II, on the other hand. the farmers and
liberals have a majority, a coalition
government may be- formed and no
doubt at lease some pretense at down
ward revision of the tariff will he
made. It is almost inconceivable.
however, that any government, taking
account OF the economic position Of the
Dominion, would seriously lessen the
protection to the industries of Canada.
Even those persons who are most
impressed with the difficulties of
Canada's present financial and indus
trial problems are optimists in respect
OF Canada's industrial future. The
Dominion's natural resources are
known to be enormous but their ex-
tent and the possibility of exploit
sation have not yet been =. in yesti-
gated except 10 minor extent. Much
has been written about Canada's rail-
way problem, but the fact is that the
Dominion is the only country in the
world to-day with an abundance of
agricultural land for settlement, and
with the transportation services al
ready provided as an aid to colonial
tion: As the United States after the
Civil War experienced a great economic
arousing, so the rapid industrial devel-
opment Of the Dominion seems to be
assured. AS was the case with the
| United States, after 1866, investment
capital from Abroad and immigration
may be expec sd TO play an important
part in such tvslcpment. "a