63

A.—7

from the United States, which consist to a much greater extent of free, or lightly taxed, raw materials and semi-manufactured articles. If, then, we would determine how far the preferential tariff has benefited British trade, we should turn from comparisons of total trade and examine the statistics of imports into Canada of particular groups of manufactured articles, selecting those whose value is fairly high compared with their weight, and in which the preference accorded by the tariff to British goods amounts to a substantial advantage. Such articles are textile fabrics and yarns, which formed last year over two-thirds of the total British exports to Canada subject to the preferential tariff, viz., over three millions and a half out of £5,323,000. 17. The following table shows for the years ending 30th June, 1893, 1897, and 1901, the value of imports of the principal textile manufactures and yarns subject to duty from the United Kingdom and from all countries respectively. It will be remembered that the year ending June, 1897, was the last year before the preferential tariff, and, indeed, included two months during which the reduction of one-eighth under the first " reciprocal " tariff was in force : —

18. An examination of this table shows that the value of imports of textiles into Canada greatly diminished in the period immediately preceding the adoption of the preferential tariff, the decrease being partly due to the fall of prices in those years of depressed trade, and partly to a diminution in the volume of trade. The proportionate diminution between 1892-93 and 1896-97 was 27 per cent. Since that year, with the revival of trade and the increase of prices, the value of the total imports of textiles has risen no less than 5'7-J per cent. 19. In the case of British textiles the drop between 1892-93 and 1896-97 was sharper, amounting to no less than 36 per cent. The recovery since 1896-97 has been at about the same rate as that stated above for the imports from all sources— i.e., 57 per cent. 20. If, then, we considered merely the growth of imports of textiles and yarns since 1896-97, there would not be much to indicate that the preferential tariff had stimulated British trade. If, however, the greater rate of decline of British trade during the previous years be taken into account it may fairly be argued that the operation of the tariff has done something to check the relative decline of imports from the United Kingdom. Thus these textile and yarn imports which formed 84-| per cent, of the imports from all sources in 1892-93 had fallen to 74-J per cent, in 1896-97. In 1900-1 the proportion was 75 per cent. Thus under the preferential tariff the proportion remained constant after a previous decline. 21. It may be added that in all the chief branches of textiles Great Britain is very far ahead of any other country as regards imports into Canada, and the only branch in which this lead has been diminished in recent years is silk goods, in which there has been considerable competition from France, Japan, and to a smaller extent from Germany. Thus in 1892-93 our share of this trade was about 81 per cent. By 1896-97 it had fallen to 70 per cent., and by 1900-1 to less than 57 per cent., and, as previously stated, a considerable part of our exports of silk goods is of foreign manufacture. As regards cotton and woollen goods our supremacy is not challenged. 22. Although, as stated above, we send a large proportion of the textile goods which Canada imports, and though there is some reason to suppose that the preferential tariff has done something to check any tendency in this proportion to decrease, it must be repeated that the Canadian tariff is still highly protectionist as regards these classes of goods. The result is seen in the small and diminishing consumption per head of British textiles by the Canadian population. Thus in 1891 the value of cotton and woollen manufactures imported for home consumption into Canada from the United Kingdom was about 10s. 4d. per head of population. In 1901 it had fallen to 10s. It is not quite easy to compare these figures exactly with the corresponding ones for other British colonies owing to slight differences of classification. It may, however, be stated broadly that in Victoria, New Zealand, and New South Wales the consumption in recent years of

* Including a considerable proportion of silk goods of foreign manufacture imported from the United Kingdom.

Imports for Home Consumption—Dutiable Goods only. From U: lited Kingdom. From all Sourci is. Textile Manufactures. Increase compi with 18 i1900-1 ared 196-97. Increase 1900-1 compared with 1896-97. 1892-93. 1896-97. 1900-1. 1892-93. 1896-97. 1900-1. Am'nt. Per Cent. Am ' nt - C-S. Cotton Wool ... - ... Silk Flax, hemp, and jute Carpets, curtains, and oilcloth. $000. 3,481 9,646 2,239* 1,531 545 $000. 2,693 5,577 1,396* 1,159 389 $000. 4,880 8,061 2,107* 1,747 863 2,187 2,484 711 588 474 81 45 51 51 122 $000. 4,569 10,947 2,764 1,619 727 $000. 4,051 7,126 1,988 1,264 587 $000. 6,928 9,944 3,726 1,913 1,147 2,877 2,818 1,738 649 560 71 40 87 51 95 Total l $00 ° lotdl (£000 17,442 3,584 11,214 2,304 17,658 3,628 6,444 1,324 57 20,626 4,238 15,016 3,085 23,658 4,861 8,642 1,776 58