Sir Wilfrid Laurier

by Peter McArthur

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.