A.—s

16

scarcely any sheep throughout the province, and, as before stated, cattle as yet are not very numerous. From a trade point of view, Manitoba stands pretty much in the same position to us as does British Columbia in respect of one or two particular articles. The Hon. Mr. Bowell agreed with me that New Zealand frozen mutton ought to find a good market at Winnipeg, which is a city of over thirty thousand population, and he also says that he is convinced, from personal observation, that it could go as far as Chicago and leave a fair margin to the shipper. Without going to this extent, I am certainly of opinion that its distribution would be found possible and even easy atall the centres between Vancouver and Winnipeg. The mutton there is poor in quality, high in price, and consequently very limited in use. In the winter butter is scarce, so that perhaps at this season small quantities sent from here would meet with profitable returns. There does not appear to be any other special direction to which I could point with any confidence as one that would afford business between us and Manitoba. The Easteen Peovinces. Leaving Manitoba, the Province of Ontario is reached at a distance of about a hundred miles from Winnipeg. This in every point of view is at present the most important part of the Dominion. In wealth and population it is far ahead of all the others, and its natural resources are large and varied. In extent it covers an area of 220,000 miles,' the greater part of which is, or has been, more or less covered with timber. The climate, of course, varies according to situation, in respect of altitude, and proximity to the lakes which form so large a portion of its southern boundary-line. The chief primary industries are farming and lumber-cutting. In respect of its soil, Ontario possesses many different varieties, most of which are very fertile, especially where land has been redeemed from the bush. The leading crop is wheat; but oats, barley, peas, &c, are also largely grown. Of late years attention has been given to dairying, and so much has this industry been developed that in 1892 the export of cheese reached nearly 50,000 tons. Corresponding with this, the production of butter has been considerably reduced. Ontario's manufacturing interests are extensive, the principal industries being agricultural-implement making, cotton- and wool-spinning, tanning, paper-making, &c, the mills in many instances being driven by natural water-power. This elementary manufacturing advantage is largely at disposal in this province, the City of Ottawa being a notable example, for there nearly everything requiring motive-power is done either by its use direct, or through the medium of electricity. Tramways, lighting, and all the lumber-mills, paper-factories, &c, are driven by power derived from the river that runs through this city. In minerals, Ontario is not so prolific as some of the other parts of Canada—but in connection with its underground wealth may be mentioned the oil-wells that exists in its southern districts. The output from these wells has been very considerable ; but the quantity exported has declined within the last few years, in consequence of the extremely low prices now ruling. The woollen industry is, on the other hand, increasing rapidly, the imports into the Dominion of raw wool having been, in 1893, nearly eleven millions pounds weight, whilst those of manufactured woollen goods have somewhat declined. This fact points to the opportunity that exists for a trade with Canada in our long wools, provided the duties were subjected to differential treatment as is contemplated. Practically the whole of the unmanufactured wool that is now imported belongs to the fine short classes, which are admitted free, whereas on Lincoln, Leicester, and what are known as lustre kinds there is a duty of 3 cents per pound. Of the eleven million pounds of wool imported free, the United States supplies over four millions, Great Britain three millions, Australasia one and a quarter millions, and other places the remainder. As the policy of the United States has been one of exclusion by her high protective duties, the balance of Canada's trade with that country since the abrogation of the 1854 treaty has been adverse. In 1893, the Dominion's imports from the States were $65,000,000, and her exports thereto $44,000,000. It does not seem unnatural, therefore, that Canadian opinion should be going in the direction of favouring a policy of self-defence. Provided that, by a differential tariff on the give-and-take principle with other colonies, an equivalent could be obtained, the diversion of this trade in wool with the States to a better customer would appear to the Canadian authorities to be advantageous. Of the other manufacturing interests that are showing rapid development, the paint and varnish trade may be mentioned. In connection with this industry a large quantity of New Zealand kaurigum is used, all of which at present goes through the United States, the extent of the consumption being probably seven to ten thousand pounds' worth per annum. Steam communication with New Zealand would divert this business direct to Auckland. Babbit-skins would also find a good outlet in this part of Canada, as the furriering and hatting trades are important, as is shown by the annual value of their products, viz., $5,000,000. What is required to secure the most successful results in shipping to Canada, as elsewhere, is an economical method of taking off the hair tips, which is at present done by hand, a circumstance that prevents skins being profitably sent to places where labour is not plentiful at a low cost. When I arrived in England I took the opportunity of looking into this matter, and found that this first process of skin treatment, being a very offensive and unhealthy kind of work, practically gave a monopoly of the trade to places where the lowest class of female labour could be obtained. Thus, in Newcastle, there was one mill in which some three or four hundred women and girls were employed, and such was the case also in London and other manufacturing centres. The consequence of that is that enormous quantities of the skins thus partially dressed are repacked and sent the States and elsewhere. Attempts to overcome this disadvantage by the aid of machinery have hitherto not been successful; but I have reason to believe that the difficulty will soon be overcome, a result that will give New Zealand a command of a wider market for this export. In New Zealand flax there is not much chance of any opening so long as other fibres continue