A—s

248

Kifjlith Day. 80 April 1007.

is the courtier—the buyer is king. That is the key of the situation. The possession and exercise of this huge purchasing power furnishes a strong instrument by the courageous but cautious use of which justice could be secured to British goods and to goods of the Colonies, especially if the whole Empire were to combine as one. We need dread no retaliation nor employ anything like the whole of the authority which our purchasing power carries with it. A mere exhibition of readiness to use it on occasion would enormously improve our opportunities, and to our minds your opportunities, and might most materially multiply ours at the same time. So far as we must import, it would seem to be true Imperial patriotism to favour Great Britain with our custom, and so far as Great Britain must import, that she should obtain her goods from her Possessions beyond the seas. This would be real and effective patriotism with or without duties against foreigners. A decay of British trade means the decay of British power and prestige, but it is idle to expect that individual efforts alone can accomplish either unity for the defence of our territories or unity in the defence of our trade. Only our several States can act effectually and to act effectively, they must act together. Preferential trade and retaliation against foreign countries which penalise our trade are among the several means by which the Empire can recover its loss of ground and prevent further loss to its material interests. So far as Australia is concerned the advantages of receiving preferential treatment from Great Britain are too obvious to require demonstration. Allusion has, however, been made to the produce imported into the United Kingdom which Australia might supply, because an extension of our export trade is absolutely necessary for us in the present state of our development. The position of Australia is, in some respects, unique. Tt has an immense undeveloped territory and resources, but a small population occupying that territory, and, consequently, a very limited home market. Moreover, as the Australian population increases very slowly in proportion to its sphere and opportunities its home market is not expanding equally with the development of its industries. Out of 2,000 million acres within its territory there are less than 9 1 , millions under cultivation, and this area could be added to almost illimitablv. Its total production, both of primary and secondary industries, amounts to 128,000,000/. sterling, and of this quantity not more than 71 millions sterling are required for local consumption. It is, therefore, plain that if further development is to take place, especially in the primary industries of the country, one essential factor of that development is the opening up and maintenance of outside markets for its produce. Tt is also plain that the peopling and development of Australia makes for the strengthening of the Empire in men and means, in trade and in national power. The first resolution recorded on this subject by the Conference of 1902 is an emphatic recognition and declaration of this all-dominating consideration. The prominent politician here who said lately that you had greater financial interests in the Argentine than in Canada afforded another illustration of the precept that where the treasure is there will the heart be also. He also suggested the imperative necessity of putting our treasure within the Empire if "we are to retain the patriotism of those who are governed by such a strance Imperial doctrine. Allusion has also been made to the present state of the Australian export trade T have obtained since mv arrival, through Mr. Coqdilan, Ac:entGeneral, and formerly Government Statist of New South Wales, a summary of the principal products which Great Britain imports from abroad, and in which Australia is interested. Tt has already been out that the volume of such imports is 213 millions sterling out of a total import of 54T millions 24 millions' worth of wool not being included. If the Commonwealth could secure, as with her immense natural resources, she oucrht to secure, any

('referential Trass, (Mr. Deakin.)