Part 7

The Customs tariff was properly the first problem to be tackled, as it is the hub of the wheels of industry and commerce. The Liberal party had taken office upon a declared policy, to substitute for the Conservative tariff, a sound, fiscal policy, which, while not doing injustice to any class, would promote domestic and foreign trade and hasten the return of prosperity. They had also declared that the tariff should be reduced to the needs of honest, economical and efficient Government, that it should be so adjusted as to make free or bear as lightly as possible upon the necessaries of life and should be so arranged as to permit freer trade with the whole world, particularly with Great Britain and the United States.

The first step taken by the Government was the eminently practical one of appointing a committee of its members to ascertain with exactitude the precise situation of all classes and sections of the country and their actual needs. No hole and corner methods were adopted by the committee, and there were no private meetings between Ministers and manufacturers in the Windsor Hotel at Montreal. Everybody was invited to give expression to his views. To meet the convenience of the public, meetings were held in most of the principal cities and towns.

The result of the labours of the committee, and subsequent daily meetings of the Cabinet for months, was the promulgation of a tariff, which judged by the best possible test, actual results, created a revolution in the industrial life and activities of the country. Briefly stated the new tariff.

1. Materially reduced the duties on many necessities and staple commodities used by consumers generally.

2. Placed on the free list certain articles of prime necessity to the farmer, the miner, fisherman and manufacturer.

3. Reduced the duties on iron and steel which constitute the staple raw materials for many industries; duties on other raw materials were also lowered.

4. Simplified the classification of articles for duty purposes and thereby assured more uniform administration.

5. And, by no means least, gave a substantial preference to the products and manufactures of Great Britain over the rest of the world.

6. Obtain a Reciprocity Agreement Act with Canada and the United States, but which the people of Canada refused to accept.

The Liberal tariff was the first serious attempt made in Canada towards equality of treatment and reconciliation of conflicting interests. No class or interest was singled out for undue favouritism. The needs of all were considered. Herein lies the difference between the Conservative and Liberal attitudes on the tariff. The formula of the Conservatives for tariff making always has been the simple one of giving protection to the manufacturer without reference to the rest of the community. The Liberals on the other hand believe in being fair all round and in distributing the burdens of taxation as much as possible. Consider the situation for a moment. We have five great sources of national wealth. The farm, forest, fisheries, mines and manufacturing industries, on the income of which we keep our national house. It will be obvious that the interests and needs of these various producing branches are not identical. They conflict in some instances very strongly. The farmer for instance has to pay higher prices for his articles of necessity and comfort by reason of customs duties imposed thereon, whereas the prices for his produce are largely determined in the markets of the world. The miner, too, could buy most of his supplies and machinery cheaper if they were free from duty. The fishermen, who are chiefly located in the provinces forming the extreme boundaries of the Dominion, are unable to supply the markets in our principal centres of population by reason of the great distance separating them therefrom, and are consequently obliged to export the bulk of their catch to foreign markets easier to reach, but where they have to encounter stiff competition. The lumberman also is affected by the tariff on his commodities. Manufacturing industries are of immense benefit to the country, but not more so than the agricultural industries, indeed if we take the population engaged and the capital invested in farming and ranching the agricultural interests bulk greater in the national wealth. Everybody recognizes that manufacturing institutions are necessary to build up a great nation and acknowledges that it would be undesirable to devote our attention purely to pastoral pursuits.

The Liberal Government recognizing all these salient factors endeavoured to strike a fair balance and thereby promote the utmost development in all industrial pursuits. The principal thought in their minds was to provide the maximum of profitable labour for the people in all spheres of activity which surely is the truest and highest duty of statesmanship.

The extent of the reduction in taxation brought about by the tariff can be best arrived at by taking the average rate of customs duty imposed by the Conservatives during the last years they were in office, and applying it to the imports under the Liberal rule. In 1896, which was the last year of Conservative administration, $18.28 was on the average collected on every $100 worth of goods imported into the country. If the same rate had been collected during the time the Liberals were in office, instead of collecting duty to the amount of $605,000,000 they would have collected $685,000,000, so that there was an actual reduction of $80,000,000 in fifteen years. This is at the rate of about $5,500,000 per annum. In addition to this saving one has to consider the reduced price of Canadian manufacturers to the consumer by reason of the reduction in protection, because undoubtedly as a general rule, although not in every case, the selling prices of Canadian manufacturers are based upon the amount of protection they enjoy.

Again there is the indirect saving to the people in reduced prices on foreign exports to Canada, by reason of the operation of a British Preferential tariff. The United States exporters to Canada, for instance, had to reduce their price to Canadian buyers to off-set the reduction in duties in favour of British goods. This is an undoubted fact.

Another way of arriving at the extent of the reduction in taxation brought about by the Liberal Government, is to take the average rate of duty imposed by Conservatives during the eighteen years they were in office, which was $19.10 on every $100 worth of goods imported into the country. If the same rate had been applied to the imports during the fifteen years from 1896 to 1911, the additional taxation which would have been imposed would have amounted to $110,000,000, so that there was a saving to that extent to the people of the country under Liberal rule.

Perhaps the most outstanding feature of the new tariff was the adoption of a preference in favour of British goods, and it was probably the most popular step ever taken by any Government in Canada. Judged by results, it has been highly beneficial alike to Canada, Great Britain and the Empire. This preference at first consisted of a reduction of 1-8 from the general tariff rates. A year or so afterwards the reduction was increased from 1-8 to 1-4 and later to 1-3. Subsequently the flat reduction of 1-3 was abandoned and a specific preferential rate provided for each item or article in the tariff. Such specific rate, however, on the whole averages a reduction of 1-3. The benefits of the preference were given not only to Great Britain but by successive steps to nearly all the British colonies.

The preference granted by the Liberal Government was exactly the tonic that was necessary to stimulate British trade. From the moment it became law the trade started to boom and it has steadily and rapidly increased ever since. But the increase in British trade was not the only beneficial result. The preference substantially reduced duties to the Canadian consumer on the most important staple commodities, and thereby further implemented the pledge of the Liberal party to reduce taxation.

Having dealt with the preference feature of the tariff we will now resume the consideration of the general subject. Well as they believe they had wrought in the creation of their tariff, the Liberal Government were not content. They knew that a great deal more was needed to bring about a betterment of conditions. They felt that the most vigorous and progressive measures were necessary to put Canada in its proper place on the map of the industrial world, and to afford scope for the exercise of the natural ambition of its people. They realized that the farmer could not be benefitted much by protective duties on his produce, but they saw that they could benefit him by enlarging the means, and cheapening the cost, of transportation, and they devoted their best energies towards improving and extending transportation facilities all over the country. They saw also that the manufacturer could be benefitted by enlarging the home market, and they instituted an aggressive immigration policy which developed the great North West in a marvellous way. Step by step in the most vigorous manner and without let-up the great work of building surely and strongly was undertaken, and concurrent with it the country grew more prosperous.

* * * * *

The finances were so handled as to show a substantial surplus each year instead of the era of deficits in Conservative days.

The great canal system of the country was rushed to completion.

The Crows Nest Pass Railway was built, thereby facilitating the development of the immense mineral resources of interior British Columbia—in the Kootenay District.

The Intercolonial Railway which had its Western terminus in what was then a comparatively small town, namely Levis, was badly handicapped in securing traffic from the West, and was extended to Montreal, the commercial metropolis of the country.

Later on the construction of the Transcontinental Railway was entered upon and was well on towards completion, when the Liberals went out of office in 1911.

By means of Government guarantees and subsidies a third Transcontinental Railway, the Canadian Northern Railway was made possible.

Immigrants to the number of nearly 2,000,000 were brought into the country in fifteen years, a large number of whom went on the land resulting in a magnificent development of the West and North-West.

Free land grants to railways were discontinued and the public lands were reserved for the actual settlers.

Ocean ports, harbours and rivers were vastly improved. A 30-foot clear channel was provided in the St. Lawrence from Montreal to Quebec.

Postal rates were reduced substantially, and the Money Order system simplified and extended.

Free Rural mail delivery was established.

Canal and steam boat duties were abolished in the interest of promoting cheap transportation by water.

A Railway Commission was appointed which admittedly was one of the best pieces of constructive legislation ever adopted in Canada. That Commission became practically the master of the railways.

A Labour Department was created which has done splendid work in averting and settling strikes.

Agriculture was aided in a hundred and one ways.

Cold storage facilities of an excellent character were provided for the products of the farm and fisheries.

Commercial agents were appointed in the principal countries of the world.

A Canadian Mint was established.

The resources of the country were splendidly exhibited at every Exposition held throughout the world.

From time to time the tariff was modified to meet changed conditions, and in 1907 a complete revision was made, again by a committee of the Ministers, after consulting with the people.

The French Treaty was extended so as to comprise our principal productions instead of as formerly only a few articles of comparatively trifling importance.

A treaty was entered into with Japan whereby we got most favoured nation treatment in that country.

As a result of our institution of preferential trade we got a preference in New Zealand. As a direct benefit from this the British Columbia fishermen captured the import trade of that country.

An intermediate tariff was established as a standing invitation to other countries to reciprocate in trade, and Holland, Belgium and Italy were admitted to the benefits of that tariff for corresponding advantages given to us.

Through the efforts of the Liberal Minister of Agriculture the vexatious quarantine regulations that existed for some years between the United States and Canada were abolished.

A sur-tax was imposed upon Germany by way of retaliation for Canadian products being placed on the maximum tariff of Germany.

To prevent the slaughtering of manufactured goods in the Canadian market a law known as the Anti-Dumping Act was passed, which effectively operates against such unfair trade warfare.

A Commission of Conservation was appointed, the object being to conserve our natural resources and to disseminate full information in regard to them.

Dominion Government securities were placed on the favoured trustee list of Great Britain.

An Assay office was established at Vancouver which materially aided in retaining our Yukon trade.

Substantial financial assistance was given towards the construction of a Pacific cable, Canada bearing its full share of this expenditure.

Throughout the career of the Liberal Government the revenues were buoyant, notwithstanding considerable decreased taxation and the financial situation was always of the best.

* * * * *

In a word, the men at the helm knew their business and attended to it, in a thoroughly workmanlike manner. Their successive acts of genuine, constructive statesmanship along practical lines filled the people with hope, and made them gird up their loins for supreme individual efforts in industrial life. The wisdom of their legislation and administration and its accompanying prosperity of the people attracted the attention of the whole world, particularly the Mother Country, and started a flow of much needed capital to develop our great natural resources, a flow which went on unceasingly throughout the Liberal regime, increasing and increasing all the time as our needs were made manifest. Canada was then the favourite investment field of the Empire.

Under Sir Wilfrid Laurier a new Canada arose. The country found itself and for the first time realized its immense possibilities. It was an era of the full dinner pail, the first golden age in Canada’s history. Every legitimate industry from the Atlantic to the Pacific, speaking generally, prospered. Manufacturing institutions were enlarged and enlarged again and again to meet the demands. The farmers shared in the prosperity probably better than any others. The price of farm products increased materially and the home and foreign markets were greatly extended, the results being seen in the increase in farm land values and a more rapid payment in full of farm mortgages than ever before. The much deplored exodus under the Tory regime was practically stopped. The young Canadian found Canada quite good enough for him.

* * * * *

When the Laurier Government took office Canada had not yet “found herself.” For years progress had been slow and there appeared to be an almost entire absence of the snap and vigorous aggressiveness which soon after became the characteristic of Canadians. Deficits were annually recorded in the national finances; foreign trade was practically stationary; manufacturers were making little or no headway; the great Northwest was undeveloped; immigrants came in comparatively few numbers, and, what was worse, the country seemed unable to retain her own people. The situation which confronted the new Prime Minister was one calculated to discourage a man whose Canadianism was less confident and sure, whose vision was less clear and whose zeal for service was less imperative.

On the evening of the day upon which the Earl of Aberdeen, then Governor-General, summoned Wilfrid Laurier and entrusted him with the task of forming an Administration—even before the personnel of his Government was announced—he was called upon to make his first public utterance as Prime Minister. It was on the evening of July 8, 1896, at Montreal, and the occasion was, by strange significance, the Canadian reception to the officers of the British warships “Intrepid” and “Tartar.”

“I appreciate to-day,” was the first word of the new Prime Minister, “in the presence of the representatives of the naval forces of our Empire, and occupying the position I do, having just been called a few minutes previously by his Excellency the Governor-General to assume the duties of First Citizen of the Dominion—I appreciate to-day more than ever the strength and significance of that order by Britain’s greatest Admiral on the day of the battle of Trafalgar: ‘England expects every man to do his duty.’ I am going to do my duty, not only by Canada, but by the Empire. Britain, thank God, does not require help from anybody, but if ever the occasion should arise when Britain is summoned to stand against the whole world in arms, she can depend upon the loyal support of Canada and the Canadian people. The Canadian people are free and loyal, loyal because they are free.”

With this pledge Wilfrid Laurier took office as Canada’s Premier. The boy of St. Lin was still preaching his growing conception of Canada and her place in the Empire.

The task of this first French-Canadian Premier was not an easy one. Had he been merely a son of his race, had he been merely a convert to the English-speaking conception, had he been merely the champion of a cause or the balance-wheel of politics, his influence might have maimed the national progress of the Dominion for a century. As it was, he conceived for himself the rôle of a Canadian. He felt that the great need of Canada for Canada—and for the Empire, too—was Canadians. There were plenty of French Nationalists—he had known them in his youth; he found them again in his maturity. There were plenty of Anglo-Saxon ultra-imperialists—he had already become familiar with fire-brand jingoism. There were plenty of indifferent materialists—he realized the danger of their disease to a young and growing country. But Canadians could unify, Canadians could build, Canadians could become great and strong. A Canada of Canadians “free and loyal; loyal because they are free”—was to Sir Wilfrid Laurier, the most potent Imperial asset the Dominion could provide for the motherland. He had studied his history. He knew the fate of empires bound by bonds of brittle iron. He dreaded a crumbling Imperium. He dreaded, too, the idea of a hobbled “sub-nation.” But he had a strong and enduring faith in the assured permanency of an Empire of “free and loyal” daughter Dominions knit together by ties of common interest, common endeavour and common devotion to the cause of democracy and the advancement of Christianity and civilization.

* * * * *

The Liberalism or the Conservatism that continues to be founded on the accident and the prejudice of birth, that believes in “my party and my father’s party, right or wrong,” is the real cause of the discouraging inertia of public opinion that often allows the self-interested few to practically control elections and governments, that prevents or retards reform and makes of a free democracy a bureaucratic tyranny. Liberalism is a positive reasoned belief and every Liberal should be able, apart from opinions as to the Government or the issues of the day, to justify his faith according to cardinal principles of good government.

What are the fundamental distinctions between Liberalism and Conservatism? The words themselves embody the respective historical attitudes of the two parties toward the main function of government.

Liberalism is in essence the problem of realizing liberty. It seeks the setting free of the mass of the people in regard to self-government, trade, religion, education, industry, in all the manifold ramifications of society. Conservatism, on the other hand, means at bottom restriction. It means the conserving of vested rights, the centralization of government in the “governing classes,” setting the balance on social progress.

The function of government is to define the rights of the individual in terms of the common good and to think of the common good in terms of the welfare of the individual. In the case of Liberalism the emphasis has usually been on the “common good.” In the case of Conservatism the emphasis is usually on the “individual.” Historically the particular “individuals” have belonged to the authoritative or vested interest classes. That motto has been “what we have we hold.” Liberalism has found its main support in the masses. The natural result has been that legislation with each party, has been mainly for the classes their leaders represent.

Liberalism recognizes that the teaching of history shows that progress is more continuous and secure when men are content to deal with great reforms piecemeal than when they seek to destroy root and branch in order to erect a complete new system which has captured the idealistic imagination. But its grappling with reforms is continuous. Conservatism, while believing in “the good of things as they are,” has usually grappled with reforms under the stimulus of an increasingly feared and potent democracy. Liberalism has had to wrench from Conservatism responsible government by the people, manhood suffrage, equal taxation, the right of like opportunity for all classes of the community. Conservatism has clung to precedent, the established order, the old authoritarian basis of government, and has yielded but slowly and as a rule only on compulsion.

Liberalism is ordained of the common people and sprang from a common resistance to the oppression of arbitrary and self-centred rule. Conservatism had its birth in the doctrine of the divine right of kings. The “governing classes” were ordained of God because they themselves arranged the ordination. Liberalism has its principles embodied in the human heart. Conservatism finds its well-springs in its own pockets.

The main battlements of privilege and vested authority have been won by Liberalism through centuries of struggle. The fight of democracy for freedom, for equality of opportunity and for substantial justice, to all individuals of the commonwealth still goes on. There are still inequalities of taxation to be righted, the oppression of vested interests in trade and industry to be overcome, monopolies and trusts to be regulated, the rights of society as a whole to be asserted to the wealth that depends on its own collective enterprise. The increase of the well-being of the masses does not appear to be by any means proportionate to the general growth of wealth. In the sphere of economic legislation, Liberalism still has perhaps its greatest work to do. The welfare of the common man at the common task is its first consideration.

Government of the people, for the people, and by the people is the essence of Liberalism.

The application of these principles to the problems of Canadian politics in relation to provincial, national, imperial and world-wide interests is the work of the Liberal party in Canada.

On the evening of Tuesday, January 14th, 1919, Sir Wilfrid Laurier delivered his last public address. The occasion was the formation of the Eastern Ontario Liberal Association for about twenty ridings in Eastern Ontario. It has been stated that the resolutions adopted upon that occasion and the speech of Sir Wilfrid Laurier clearly set forth the Liberal policy to date.

* * * * *