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

During the recent war, when Cana
dian factories weree busily engaged on
the production Of war supplies and
there was an almost unlimited demand
at high prices for Canadian raw ma
terials and agricultural products, and
when it was difficult to get manu-
featured goods from abroad, the bal
ance of trade swung largely in favor
Of the Dominion. In 1917-18 the
favorable balance was almost s580,000,-
900. This country was, indeed, enabled
the cost Of Canada's war participa-
ton and also to buy large quantities
Of raw materials and semi-manufac-
tured goods from the United States for
cash and sell war supplies of various
kinds to the United Kingdom on credit.
But the balance of trade once moro is
against the Dominion. In the fiscal
year ended March 81, 1921, imports for
consumption exceeded in value by ap-
proximately 100000 the value of
Canadian merchandise exported. Dur
ing April and May of this year i'm
ports showed a more rapid falling off
the export trade Of the Dominion. But
it must be remembered that Canada
has obligations abroad on account of
interest on public borrowings, pay
ments to non-Canadian steamships,
railroads, insurance companies, etc,
representing an aggregate of probably
$2b0,000,000 year, so that the Do
minion is not making ends meet unless
the value Of its exports exceeds the
value of imports by at least that
amount, less any offsetting items. The
only permanent solution of the prob
lem Of resuming specie payments in
the Dominion is reduction of i'm
ports and an increase of exports. That
problem may, Of course, be solved tenn
porarily by large inflow of invest
ment money from abroad.
The Civil War In the United States
stimulated great industrial develop
ment and after the return of peace
there was a demand for the protection
of home industries against destructive
competition from abroad. The situa.
ton then was essentially different
from the trade position of the United
States at the present time because ex-
change afforded a substantial protec.
ton against imports into the United
States from the industrial nations Of
Europe, whereas now exchange is op-
Grating strongly to encourage such i'm
ports. During the Civil War tariff
duties were increased to Offset internal
protection were provided. After the
war the internal revenue duties were
gradually withdrawn, but the tariff
was not lowered until 1870 and Their
only to an unimportant degree 30 fai
as the protective principle was con-
cerned. Indeed, some increases were
made in the tariff duties.
Canada during the recent war ex.
perenced a great industrial expansion
with factory capacity in certain lines
expanded considerably beyond peace
time requirements. The menace of i'm.
ports now Is acute. The industries OF
the United States were developed under
high tariff protection against import:
from European countries and also by
differences in styles and popular pref
erences. Climatic conditions were diff
ferent in the two continents and Euro.
pean. products were not entirely suitsd
to American needs. Moreover, the
United States, with a population IL
1866 Of some 35,000,o0o people, censti-
tuted In itself large home marke-
for the products Of domestic industries
Contract the present position of Canals
with its 100000 people. with its in
dustries confronted with competition
not SO much from across the sea, bu
from great industrial nation highly
organized for mas production, who's,
factories are within easy reach of tht
Canadian market along border more
tran 5000 miles in lengthl Import
are encouraged by similarity Of eli.
matte conditions, styles, etc. The Ca.
madam market is natural adjunct t.
that of the United tSates and a sub
| stantial part Of Canadian trade Il
diverted to the United States by reasol