The new Government lost no time in grappling with the problem. A tariff commission was appointed which sat at different centres and heard the views of representative citizens. Then in April 1897 Mr Fielding brought down the new tariff. It was at once recognized as a well-considered measure, an honest and a long first step in redeeming platform promises. In the revision of the old tariff beneficent changes were effected, such as abolition of the duties on binder twine, barbed wire, and Indian corn, substantial reductions on flour and sugar, the substitution of ad valorem for specific duties, and a provision for reducing the duty on goods controlled by trusts or combines. The duties on iron and steel were reduced, but increased bounties were given on their production in Canada. More important, however, than such specific changes was the adoption of the principle of a minimum and maximum tariff. A flat reduction of twelve and a half per cent, to be increased later to twenty-five per cent, on all goods except wines and liquors, was granted to countries which on the whole admitted Canadian products on terms as favourable as Canada offered. This, although not so nominated in the bond, amounted in intention to the British preference which the Liberal party had urged as early as 1892, for, except New South Wales and possibly one or two low-tariff states like Holland, Great Britain was believed to be the only country entitled to the minimum rate. But the Belgian and German treaties, already mentioned,[[2]] by which Great Britain had bound her colonies, stood in the way. While those treaties remained in force, so the law-officers of the Crown advised, Germany and Belgium would be entitled to the lower rates, and automatically France, Spain, and other favoured nations. It Canada was to be free to carry out her policy of tariff reform and imperial consolidation, it became essential to end the treaties in question. Sir Charles Tupper, now leading the Opposition, declared that this could not be done.
[[1]] These were: Sir Oliver Mowat, William Stevens Fielding, Andrew G. Blair—prime ministers respectively of Ontario, Nova Scotia, and New Brunswick—and Clifford Sifton, attorney-general of Manitoba, who joined the Ottawa Ministry a few months later.
Mr Laurier's administration was formed as follows:
Prime Minister and President of the Council, WILFRID LAURIER.
Minister of Finance, WILLIAM S. FIELDING, of Nova Scotia.
Minister of Justice, SIR OLIVER MOWAT, of Ontario.
Minister of Trade and Commerce, SIR RICHARD CARTWRIGHT, of Ontario.
Secretary of State, RICHARD W. SCOTT, of Ontario.
Minister of Public Works, J. ISRAEL TARTE, of Quebec.