Such preferential trade, large public meetings I have recently addressed in all the principal commercial centres, on behalf of the United Empire Trade League, have declared with practical unanimity and much support from both political parties, that Canada is willing to exchange with the mother country and the Empire, so soon as foreign treaty hindrances (treaties with Belgium and Germany of 1862 and 1865) are removed—it being calculated that no policy would more certainly advance the prosperity, peopling and capitalization of the whole country and the consequent augmentation of customers.

Means of Commercial Negotiation.

22.—No more effective means either could probably be found to bring about that reduction of the United States tariff wall, so much desired both by the Dominion of Canada and the mother country, for it would furnish her Majesty's representatives with a weapon of commercial persuasion they now wholly lack in negotiating with foreign countries.

Effect of the McKinley Tariff.

23.—It may be too early perhaps to judge definitely as to the effect of the McKinley tariff upon British trade in the United States, There can, however, be no doubt that in many industries, and especially among the receivers of wages in the United Kingdom, it will be very serious, and tend still further to extend the disproportion between the sales of America to Great Britain and the purchases by America of British goods, which have stood for some time in the adverse ratio of three to one.

Much Change not to be expected.

24.—It is necessary, therefore, to say that while the organs of the democratic party in the United States and the sanguine views of American importers who are in personal or correspondence relations with England, encourage a hope that the McKinley tariff will be repealed or considerably modified in the near future, I am convinced that, as matters stand, such belief is to a great extent delusive.

In the first place the democratic majority in the House of Representatives, as at present constituted, is practically powerless in the face of a strong and hostile Senate, with an equal mandate from the people, and in the face too of an antagonistic President, to a great extent independent of either, with all his Ministers and machinery of government.

In the second place democratic leaders and advocates in every locality are eager to protest that they do not now desire free trade, do not dream of admitting duty free the productions of competing foreign workmen, and that they aim only at a reduction of the tariff.

Again, it is now well understood that the alleged rise in prices at the time of the election last year for Congress was artificial and impressed upon voters by skilful wire-pulling—such as the hiring of itinerant pedlars to perambulate the agricultural districts with household wares marked up at double cost; by urging democratic retail dealers to serve their party (and their tills) by demanding greatly increased sums for all goods during the campaign "in consequence of the new tariff."