people in Canada. It is a question that has to do with the future interests of unborn millions. It is a question the settlement of which will affect the destiny of these two peoples, heaven only knows how far. It is a turning point in the policy that should govern these two countries. And I am happy to believe, Mr. President, that the questions that are involved are beginning to be understood by the American people, and with their acuteness, and with the rapidity that is characteristic of the American people in seizing upon facts and arriving at conclusions, I haven't the slightest doubt that this question is nearing a solution that will redound to the advantage of all the people that inhabit the 7,000,000 square miles that are under Anglo-Saxon domination in North America. (Applause.)

BRITISH PREFERENCE-AMERICAN RECIPROCITY

THAT Canada's trade relations with the world are not now upon a permanent basis is believed by everybody. What change shall be made, is the question. In the session of 1903, suggested tariff changes for the improvement of home trade conditions, also the Chamberlain preferential trade agitation, and also the manifestly improving chances of reciprocity with the United States these three propositions at least confronted the Canadian people. It was under these conditions that the following speech was made. It was delivered in the House of Commons in the course of the debate on the budget:

House of Commons, April 21, 1903.

MR. CHARLTON-Mr. Speaker: The financial statement presented to this House a few days since by my honourable friend, the Minister of Finance, (Hon. W. S. Fielding) is a statement different in character, in some material respects, from many that preceded it. It has attracted wider attention than any statement of a similar kind in the history of this confederation. It was looked for with interest in foreign countries, and certain features have aroused great interest in the United States, Germany and France. This statement presented to the House and the country the record of a period of unexampled prosperity. It is a record of increasing wealth, expanding commerce and abundant revenues. For these we should thank divine Providence, and not permit ourselves

to believe that we created the conditions by which we profit and that a higher power has nothing to do with shaping our destinies and development. The statement of the Minister of Finance gave a reflex indication of the thrill that now stirs this nationality with a sense of new-born power, and we may approach its consideration in a spirit of thankfulness that the affairs of this country are in such a prosperous condition, and realizing also that we are upon the threshold of an era of great development which will require prudent statesmanship for its wise direction.

There are certain features in this financial statement which give me great satisfaction indeed. The imposition by Germany of discriminating duties against Canada as a punishment for the preferential duties in favour of Great Britain granted by Canada was an act entirely without warrant. The two countries are on an entirely different basis as regards their commercial relations with us. Great Britain is our mother state and we have advantages in her markets not accorded to us by Germany. No duties are levied in the one case, heavy duties are levied in the other, and the assumption by Germany of the right to discipline us because the mother country, which gives us a free market, is treated differently from the German empire by our tariff, was a highhanded and indefensible act.

When we take into consideration the state of the trade with that country, the character of this act becomes more apparent. Our imports from Germany last year amounted to $10,919,944. Our total exports to that country were $2,692,578. The percentage which our imports bore to our total trade with Germany was eighty-one per cent. Our exports of the produce of Canada, however, were $1,298,634. If we count these alone, leaving out of consideration exports of goods which came to us from outside countries and were merely sent from those countries to Germany through Canada, we find that our percentage of exports to our total trade was eighty-nine and four-tenths per cent. I cannot but approve most heartily of the action of the honourable Minister

of Finance in imposing discriminating duties against that country. And the action of the Canadian government in resenting that move on the part of Germany has aroused the attention and won the approval of the world, outside of Germany. It is instinctively felt that, in taking this course, we have simply stated our rights and asserted our dignity.

I see it stated in the newspapers that the German government proposes to impose a prohibitive tax on Canadian imports. This surtax imposed by our government seems to have led to some earnest use of surtax on the part of Germany, and the feeling against us, I presume, is very strong. Well, sir, I should say to the government: If the German government wishes to embark upon this course of action, meet them upon their own ground; and if they prohibit the entry of our exports of $1,300,000, and we prohibit the entry of their exports to us of $11,000,000, then, after trying the thing a while, let the German financiers and economists figure out what the balance of loss or gain is on the transaction. I think we can stand it, and I feel disposed to say that it is a good time to assert our sense of the unfair usage to which we have been subjected. I repeat, the government's course in this matter meets my unqualified approbation, in fact I admire the courage which has marked its attitude.

Now, in listening to the remarks of the honourable leader of the Opposition (Mr. R. L. Borden), and also in perusing the remarks of the honourable member for St. Mary's division, Montreal, (Hon. Mr. Tarte), to which I had not the pleasure of listening, I find that exception is taken to the course of the government in failing, at this juncture, to enter upon a revision of the tariff, and the assertion is made that the condition of our affairs is of a character to render it proper and necessary to enter upon such a revision. It strikes me, Mr. Speaker, on the contrary, that the reasons assigned by the Minister of Finance for deferring action upon the tariff, except in the few inconsiderable instances in which he has changed conditions, are good reasons.

We do not know, at the moment, what the premises are