, 1923-10-10
Canada's Realization

Canada is getting ready to enact a higher
protective tariff. All reports from that coun-
try clearly indicate this.
The prosperity of the United States under
our present tariff act is one of the main rea-
sons for a growing desire throughout the Do
minion for an increase in its tariff rates. An
example of the way Canadian interests view the
American tariff is furnished m a recent address
of the retiring president of the Canadian Man
ufacturer's Association. After discussing the
Fordney tariff and its effect upon Canada, the
speaker said:
''This is not n criticism of the United States.
In one sense it is n compliment. They realized
the world situation two years ngo and raised
their tariff. With what results to their own
people? Today their industrial plants are
busy. There is no unemployment. Many of
our people have gone there to get work. Some
condemn all this as a boom, but we would be
very glad to see times as good in Canada"
The main reason Canada is determined to
raise her tariff is her inability under present
schedules, to compete successfully with goods i'm
ported from England and Europe. Under the
present tariff policy of Canada. she gives to Eng
land n preference in tariff duties amounting to
33 IS per cent. That is, on like goods entering
Canada from England and from the United
States, the duty on the English goods is one
third less than the duty on American goods. The
same comparison holds between goods from
England and from any other country outside
ihe British Empire.
Canada has found that this preference, which
rs n British policy in effect throughout the Brit.
ish empire, enables E~nglish-made goods TO drive
Canadian industries out of business. For that
reason Canada is preparing to raise the tariff
so high that n preferential reduction from its
normal rates would still leave a duty on English
made goods sufficient to afford Canadian indus
tries protection. This also would operate still
more effectively TO bar American goods from
that country. Speaking upon this subject the
retirement president of the Canadian Manufac,
turers' Association said.
"Let us take an article on which the Cana.
dian tariff is now IS per cent. Against the
United Kingdom the duty on this article would
be only 10 per cent. If we were TO increase the
general tariff from is to 3G per cent we could
then give n preference of 30 per cent instead Of
30 13 TO the United Kingdom, making the Brit.
ish preferential rate is per cent. The Canadian
competing industry would then he in a better
position than II is now because IL would have
IS per cent protection instead Of only Il. The
principal difference would be that British goods
coming in Mt is per cent would displace Amori.
can goods coming in at 36 per cent
The speaker cited specific instances where
the preferential tariff policy of Canada per.
mitted English made goods TO drive Canadian
industries out Of business. lie drew this con.
clusion:
"The plain fact is that Canadian manufac.
turing industries cannot stand the competition
of United Kingdom industries unless they are
given adequate protection. British labor costs
and general operating expenses are much lower
than m Canada and will remain lower for the
most obvious Of reasons. The surplus Of ship