A.—7

98

Foreign countries having increased their trade with Canada, it, of course, follows that Great Britain, with the advantage of the preference, has been in a much better position to do so. The following table shows the average rates of duty paid on the importations for 1901 under the preferential tariff on the principal lines which are imported from Great Britain : — Preferential Tariff. Per Cent. Per Cent. Cement ... ... ... ... 20-7 Gold and silver manufactures ... 20-0 Cottons ... ... ... ... 20-4 Gutta-percha manufactures ... ... 221 Drugs and chemicals ... ... 15 1 Hats and caps ... ... ... 20-0 Earthenware ... ... ... 200 Iron and steel ... ... ... 11-6 Fancy goods ... ... ... 222 Paints ... ... ... ... 7-6 Flax and jute ... ... ... 17-9 Paper and manufactures ... ... 18-9 Fur and manufactures ... ... 11-9 Silks ... ... ... ... 209 Glass ... ... ... ... 17-1 Woollens ... ... ... ... 230 It is contended that these rates admit of reasonable competition with the domestic producer in the Canadian market. While on the whole the dutiable imports from Great Britain have increased materially under the operation of the preference, it is a matter of considerable surprise to find that the imports from foreign countries in quite a number of lines in which Britain chiefly competes, and to which the preference applies, have increased in as great a ratio as those from Britain, and in some cases at a greater rate. These statements, which are worthy of careful and serious consideration, are substantiated by the following figures : —

Dutiable Importations for Consumption into Canada.

It might be remarked here that if any doubt exists in Britain as to the substantial nature of the preference granted by Canada in favour of British goods, certainly none exists in the United States. The manufacturers there have found it necessary to reduce their prices to Canada to offset the preference. To conclude and to summarise it is respectfully submitted— (1.) That the preference is a very substantial and genuine one. (2.) That it gives British merchants a material advantage over foreign competitors in the Canadian markets. (3.) That the preferential rates are not too high to shut out reasonable competition with the Canadian producer.

1897. 1901. Silks from Great Britain „ other countries Fancy goods from Great Britain „ other countries Gloves and mitts from Great Britain ... „ other countries ... Combs from Great Britain ... „ other countries ... Collars and cuffs from Great Britain ... „ other countries... Buttons from Great Britain ... „ other countries Furs from Great Britain „ other countries Glass from Great Britain „ other countries ... Hats, caps, and bonnets from Great Britain „ „ „ other countries ... Gutta-percha and indiarubber manufactures from Great Britain ... „ „ „ other countries... Gold and silver manufactures from Great Britain „ „ other countries Paints and colours from Great Britain „ other countries Varnish and japans from Great Britain „ other countries _ 1,396,015 592,290 873,182 607,524 228,427 287,951 35,399 38,210 30,119 9,033 31,113 104,313 185,724 210,774 187,888 951,876 694,342 497,062 90,274 227,701 50,365 245,778 210,234 309,211 24,910 35,811 ft 2,107,032 1,618,991 898,131 1,032,582 215,122 487,456 54,137 74,341 25,612 63,463 30,352 147,038 378,331 587,060 352,204 1,223,415 893,501 768,262 155,445 454,446 63,012 296,634 224,202 544,641 36,166 80,858