As I have said, we felt that the result of the Conference had been a very serious set-back and discouragement to all our wishes. I therefore watched public opinion very carefully and with considerable anxiety, and I noticed two or three uncomfortable indications. In the first place a restlessness manifested itself among the manufacturing classes in Canada, particularly in the woollen trade, against the British preference which pressed upon them, while Canada received no corresponding advantage, and a discussion began as to whether the British preference should not be cut off. The next thing which alarmed me was that during the following winter a movement arose in the United States to secure the establishment of a reciprocity treaty with Canada. Suggestions were made to renew the sittings of the High Joint Commission which had adjourned in 1898 without anything being done. This was evaded by our Government, but a strong agitation was commenced in the Eastern States, and supported in Chicago, to educate the people of the United States in favour of tariff arrangements with Canada.
The more far-seeing men in the United States were uneasy about the movement for mutual preferential tariffs in the British Empire. They saw at once that if successful it would consolidate and strengthen British power and wealth and would be a severe blow to the prosperity of the United States, which for fifty years had been fattening upon the free British markets, while for thirty years their own had been to a great extent closed to the foreigner and preserved for their own enrichment. I felt that the failure of the Conference would give power to our enemies in the United States and aid them to enmesh us in the trade entanglements which would preclude the possibility of our succeeding in carrying our policy into effect.
Every week I became more and more alarmed. It will be remembered that there was then no Tariff Reform movement in England. That Lord Salisbury was dying, that Mr. Chamberlain had not yet openly committed himself, and that nothing was being done, while our opponents were actively at work both in the States and in Canada. The small faction in Canada who were disloyal were once more taking heart while the loyal element were discouraged.
Still further to cause anxiety the Imperial Federation Defence Committee took this opportunity, through Mr. Arthur Loring, to make an imperious demand upon the Colonies to hand over at once large cash contributions in support of the Navy, or practically to cut us adrift. Had the desire been to smash up the Empire, the attack could not have been better timed than when everything was going against the Imperial view. I wrote a reply which appeared in The Times on the 2nd March, 1903:
Sir,
With reference to your issues of January 9th and 10th which contained the letter of Mr. Arthur Loring, Hon. Secretary of the Imperial Federation (Defence) Committee, and your leading article upon the question of colonial contributions to the Imperial Navy, I desire to send a reply from the Canadian point of view.
Mr. Loring’s proposition is practically that the Mother Country should repudiate any further responsibility for the defence of the Empire, unless the Colonies pay over cash contributions for the Navy in the way and under the terms that will suit the Imperial Federation (Defence) Committee. The British Empire League in Canada and the majority of the Canadians are as anxious for a secure Imperial Defence as is Mr. Loring, but the spirit of dictation which runs through the publications of his committee has always been a great difficulty in our way, by arousing resentment in our people, who might do willingly what they would object to be driven into. Because we hesitate to pay cash contributions we are attacked as if we had made no sacrifices for the Empire. Mr. Loring seems to forget our preference to all British goods, which has caused Germany to cut off the bulk of our exports to that country, to forget that we imposed a duty on sugar in order by preference to help the West Indies in the Imperial interest, that we helped to construct the Pacific cable for the same reason, or that numbers of our young men fought and died for the cause in South Africa. We have proved in many ways our willingness to make sacrifices for the Empire, and yet, because we will not do just exactly what Mr. Loring’s committee suggest, they wish to cut us adrift.
This is a very impolitic and dangerous suggestion. It is so important that we should understand each other, and that you in England should know how we look at this question, that I hope you will allow me to say a few words upon this subject.
The British Empire League in Canada requested me as their president to go to Great Britain last April to advocate a duty of 5 to 10 per cent. all round the Empire on all foreign goods in order to provide a fund for Imperial Defence. This proposition was approved of at a number of meetings held in various parts of Canada, and by political leaders of all shades of politics and I am certain it would have been confirmed by a large majority in our Parliament had Great Britain and the other Colonies agreed to it.
I addressed a number of meetings in England and Scotland, and discussed the question with many of the political leaders in London. I soon discovered while the audiences were receptive, and many approved of the proposition, that nevertheless it was new, contrary to their settled prejudices, and that it would take time and popular education on the subject before such an arrangement could be carried in the House of Commons. When Sir Wilfrid Laurier came over just before the Conference, knowing that I had been discussing the subject for two months, he asked me if I thought the proposition I had been advocating could be proposed at the Conference with any prospect of success. I replied that I did not think it could, that Great Britain was not ready for it, that Australia at the time was engaged in such a struggle over her revenue tariff that she could not act, and that if I was in his place I should not attempt it. He did, however, make a number of suggestions at the Conference which, if accepted by the home Government, would have gone a long way to place the Empire on a safer footing. The Mother Country would not agree to relieve Canada from the corn duty, but was quite willing to accept and ask for contributions for defence. This Sir Wilfrid refused; and a large portion of our people approve of that course, not because they do not feel that they ought to contribute, not because they are not able to contribute, but because they do not feel disposed to spend their money in what they would consider a senseless and useless way.