Your Grace, my Lords, Ladies, and Gentlemen,—I shall only occupy two or three minutes of your time, as I am fortunate to have with me one of the very best and most active members of our League, the Prime Minister of Ontario. I am here at this moment under a resolution of the League in Canada which reads as follows:
“That he also be empowered and requested to advocate that a special duty of 5 to 10 per cent. be imposed at every port in the British possessions on all foreign goods in order to provide a fund for Imperial Defence, which fund should be administered by a committee or council in which the Colonies should have representation.”
That resolution I need not tell you is one which this League did not feel disposed to endorse because the League had held itself open, and I wish to thank the President, the Council, and the Members of this League for the broad-minded liberality and generosity with which they enabled me to speak, and say what we Canadians wished to lay before the people of this country. I thank this League for its courtesy, and for the broad-minded spirit in which it was done, more particularly as I happen to know that the well-considered resolution adopted by the Executive Committee was drafted by probably one of the most vehement opponents of my policy. That broad-minded spirit I have seen all over England and I wish publicly, as I am going away in a day or two, to express my thanks for that British spirit which allows such free discussion.
I shall only take one or two minutes more because I wish Mr. Ross to have an opportunity of speaking at greater length. I have listened with a great deal of attention to what our noble President has said in his speech with respect to three questions, of defence, commercial relations, and political relations, and if you think of it, we have combined all three in these two lines: “A duty in order to provide a fund for Imperial Defence, which fund should be administered by a committee.” The duty helps all questions of commercial relations, helps your trade, helps your food supplies, and it also furnishes a fund for defence, and provision is made for a committee to administer the political relations. The whole thing can be done by an adaptation of that resolution. As to the question of defence, I wish to say that we Canadians are in favour of any method that may be devised to defend this Empire, but we know that no system of defence can be made worth a snap of the finger that does not secure the protection of the food supplies of this Mother Country, and yet you persist in spending on ships, troops, fortification, on coaling stations on Naval Reserves, on everything but food, the most important of all. I urge you to do all you can not only to make your food supply safe, but also to save your trade, your merchant shipping, and to put all these things in a safe position.
Mr. Ross followed me with a very able and powerful speech in which he expressed the views of the Canadian League with great eloquence and vigour.
On the 17th June, a letter from Sir Robert Giffen appeared in the London Times severely criticising the policy I was advocating. As a great statistician and Free Trader, and formerly Secretary of the Government Board of Trade, he was considered the ablest expert on the subject and his name carried great weight. His objections were in substance:
First, that under such a system at 10 per cent., the United Kingdom would pay £41,000,000 annually, and the colonies but £3,500,000, of which Canada and Newfoundland would contribute £2,400,000, whereas on the basis of population the Colonies are one quarter of the United Kingdom.
Second, the effect of such a tax would be infinite disaster to the trade of the United Kingdom, by raising the cost of raw material and by requiring harassing regulations in regard to the entrepot trade.
Third, the increase of existing duties in the Colonies by 10 per cent. would effect no such injury to their trade as the substitution of duties for the Free Trade system of the United Kingdom.
Fourth, the duty on foreign goods entering the United Kingdom and preference given to colonial goods, would increase the price for colonial goods imported in the United Kingdom by £11,000,000, and the Colonies would thus gain much more than their contribution.