demanded "the conscription of such wealth as it may be found possible to conscript without hampering the operations of industry"; the levying of a tax upon the value of all unused or inadequately used land, whether in urban or rural districts; and heavily graduated income taxes levied upon all incomes in excess of $2,000 per year. Government life insurance for all soldiers at a low premium was also urged.

There was a good deal of Pacificism taught at farmers' Conventions in both East and West. Mrs. Nellie McClung was prominent in this respect and her view was illustrated at the Edmonton Convention on Jan. 26 when she compared the British singing of the 2nd verse of the National Anthem with the German war-thought training in College, school, press, literature and public life, and added: "Let us be sure that we do not poison the hearts of our children with military training." So with John Evans of Nutana, a Director of the Saskatchewan Grain Growers (Regina, Dec. 19): "This is not the time for hate. In Britain, France and the U.S.A., since the War commenced, there are men who are big enough to come forward and unite the different classes and interests in their countries." He put the opposition in Canada to Reciprocity with the United States, and the plans to defeat German world-conquest in trade after the War, on the same level and as equally evil. The Grain Growers of District No. 8, on this occasion, passed Resolutions asking for repeal of the War-Time Elections Act and in favour of a Federal Board to control and adjust Labour.

Meanwhile in Saskatchewan and Alberta the Farmers' NonPartisan League-an American pacifist Farmers' organization of Socialistic tendencies and 200,000 membership in Minnesota, South Dakota, Montana, Kansas, Nebraska and Colorado-had obtained influence and strength. It was really a new and extreme political organization with the ideals and forms of faith of another country. The U.S. President was A. C. Townley, the platform, state-ownership and nationalization of everything. In a North Dakota election, alliance with the I.W.W. and resistance to recruiting were publicly charged. It affected war matters as one more distraction and influence away from concentration on production, on patriotic thought and war-action. Neither the American nor Canadian platforms, though developed in war years, had any direct reference to that subject. Indirectly they urged the conscription of wealth in some undefined way, as well as of men, the arrangement of Government insurance for soldiers and better protection for soldiers' homes against mortgages and taxes. The following table of Canadian general production in 1917 may be added here as a fairly close estimate in a remarkable record for 7,200,000 people:

War: Muni

A Special Census of Canadian manufactures for Canadian In- 1915 was made public in 1917 and in the industries dustry in the especially affected by the War showed food products tions, Ship costing, for materials and labour, $330,977,700 and ing and Fuel. with a value of production totalling $388,815,362; in Textiles the respective totals were $114,937,167 and $144,686,605; in Iron and Steel $93,309,283 and $120,422,420; in Leather, etc., $58,047,881 and $71,036,644. The value of direct war trade in all industries was stated for 1915 at $133,417,371 but this could not have included munitions. The total value of Canadian industrial products in 1915 was $1,407,137,140 compared with $1,165,975,639 in 1910, $718,352,603 in 1905, and $481,053,375 in 1900. The estimate for 1917 was 2,000 millions. As to industrial centres Montreal stood first with $243,237,575 output in 1915 and Toronto next with $219,143,728. The exports of Canadian manufactured goods in the fiscal year 1914 totalled $57,000,000 and in 1917 $477,000,000. During this period the manufacturers of Canada had to suffer from higher prices in raw material far beyond the normal upward movement of the preceding 25 years which ran at about 22%. The following compilation by index figures is of value in this connection:*

Manufacturers, at this time, came in for much unfair criticism in respect to profits which occasionally were excessive but, as a rule, were reasonable; in any event they could usually last only for the War period and would necessarily cover considerable final losses in plant investment, etc. This was not always the case, of course. In the greater iron and steel industries, for instance, many of the additions to plant would be permanent elements of production. According to David Carnegie, Ordnance Adviser of the Imperial Munitions Board (Ottawa address, Apr. 26, 1917), which institution dealt with 650 factories in 144 towns, from Halifax to Victoria, engaged in making munitions of one kind or another: "Manufacturers from almost every industry in Canada have turned their attention to the production of munitions, and it is gratifying to record that few of them have failed in producing the standard of work required. The approximate value of shell-forging plant machinery installed is estimated at about $5,000,000. Coming to the plants for the machining and assembling of shells and the manufacture of component parts, there have been installed over 18,000 machines and 90,000 h.p. to drive them, the estimated cost approximating $35,000,000."

Colonel Carnegie pointed out that Sir J. W. Flavelle, also, had initiated great national factories for Canada to do the loading of fuses, the manufacture of gun cotton, acids, tri-nitro-toluol, acetone, James E. Ferguson, of Woodstock, in Industrial Canada, February, 1918.

cordite, nitro-cellulose powder, aeroplanes and electric steel and that the stock of each of these concerns was held by the Board. By the year 1917 the whole great industry, controlled by this Board, dealing with $800,000,000 worth of past or present orders, was standardized as to product; new processes, new equipment and new skill utilized for development, and new industries created; an impetus given to a myriad subsidiary interests and the production of minerals, the improvement of chemical methods; the initiation of refining in copper, zinc and lead, and the use of electro-thermic processes for ferro-alloys effected; the close scientific study of metals and physical, chemical and other values carried out; with 250,000 workers improved in mental processes and personal skill and material returns-including 12,000 women. Senator N. Curry, speaking with much industrial authority, declared in an interview on Jan. 5 that: "The greater part of machinery bought for shell-making is suitable for general commercial work, and being new and more up-to-date than most plants were equipped with before the War, will, in most cases, be kept in service. The knowledge and experience gained by the metal workers of Canada during the War will be of very great benefit in their regular business." Other manufacturers believed that from 50% to 75% of munition plants would be useless for peace

purposes.

There was no doubt as to industrial prosperity in Canada during 1917. A. C. Flumerfelt told the Victoria press on Feb. 10, as to a recent trip, that "munition plants are running night and day at Montreal, Toronto, Hamilton, Brantford, Oshawa, Whitby, Trenton and at other points." Thomas Cantley, Hon. Frederic Nicholls, F. W. Baillie, C. W. Sherman, R. O. McCulloch, Wm. Inglis, Robert Hobson, Lloyd Harris, Mark Workman, Thos. Findley, headed great industrial concerns interested in war production, or partly So. J. W. Flavelle on Apr. 18 stated the value of orders received by his Board to Mar. 30 as $850,000,000, shipments as $470,000,000, and disbursements as $543,000,000; up to this time the Government and the Banks had advanced $300,000,000 for Imperial purchases here; meanwhile the Government, by its legislation of May, took from munition makers excess profit taxes of 50% on all profits in excess of 15%, but not exceeding 20% per annum, and 75% of all profits in excess of 20% per annum upon capital. At this time the capacity of Canadian factories approximated 400,000 18-pr. shrapnel, complete rounds, per week, including cartridge cases, primers, fuses and propellants; a weekly capacity for nearly 400,000 high explosive shells, ranging in sizes from 18-pounders to 9'2 inch shells and making an approximate total weekly output of 800,000 shells. Speaking of the conditions in this industry Col. Cantley of the N.S. Steel Company said at Winnipeg on June 12 that:

The manufacture of munitions has been a long and hard struggle, which only the fit have survived. Of those who have been tempted to try it many have lost money, some having been practically ruined. Others have done no better than recover their investment. Still others have made a small profit that hardly compensated them for the risk they incurred. A few have done well, but only because they, after great toil, mastered a most difficult problem and proved themselves especially efficient. I have no hesitation in offering the opinion that the man who has made money out of the manufacture of munitions has richly earned it.

There were during the year several ups and downs in orders which turned upon (1) the increased capacity of Great Britain, (2) the difficulty and dangers of transportation, and (3) the conduct of Government financing. In August a general re-adjustment took place, a number of men and women were released from munition factories, certain lines of production were discontinued and in others production was restricted-under instructions from the Munitions Board of Aug. 21. In the Commons (Sept. 8) E. M. Macdonald inquired as to conditions: "I understand the situation in Canada to be that a great number of the industries which have been producing certain types of shells have been notified that they must stop altogether. This notification comes without the slightest preliminary warning." Sir Thomas White, in his reply, said: "It is an object to Great Britain, from a financial standpoint, to manufacture as much of her own requirements as possible on the other side of the Atlantic. She is continuing to order in this country the shells which she specially requires." As a matter of fact advances to Britain for this purpose were continuing: "In round figures we have supplied to the Imperial treasury during this year: January, $20,000,000; February, $25.000,000; March, $34,000,000; April, $25,000,000; May, $26,000,000; June, $36,000,000; July, $48,000,000; August, $37,000,000; and the estimate for the month of September is $40,000,000."

At this time it was announced that many plants hitherto engaged in the manufacture of 8-inch and 9'2-inch shells for the British Government would be converted into plants for producing 6-inch shells; Great Britain also entered the American as well as the Canadian market on a large scale for these latter shells. American orders, also, came to Canada-munitions, woollen, and cotton goods, ships and other war supplies-induced by the pressure of preparation and rush of men to the colours there; Canada, also, had to import $156,000,000 worth of metals from the United States to carry on its industries, in addition to coal and other necessaries. On Nov. 10 Sir Joseph Flavelle stated that the U.S. Ordnance authorities had placed orders in Canada for about 7,000,000 75millimetre shells, the American Government supplying all steel and component parts, but the forging and assembling to be done in Canada. In this connection a $250,000,000 credit was arranged at Washington. The conditions in this respect were becoming part of the British-Canadian financial situation which turned upon how far the Canadian people would advance money to the Government to lend Great Britain for the purchase of war supplies and, by the end of 1917, it was found that the response had been splendid and that the orders placed in Canada through the Imperial Munitions Board had risen to $1,100,000,000 with a total actually expended of $875,000,000.* The country which in 1914 hardly knew what a shell was, had since then, machined 53,000,000, with 40,000,000 brass cartridges cases and 58,000,000 copper bands and, in one projectile, was supplying 50% of British requirements on all fronts. Explosives such as cordite, T.N.T., acetone, methyl-ethyl and nitric Address by Hon. N. W. Rowell in Toronto on Feb. 23rd, 1918.

acid were under steady manufacture; the refining of molybdenite and shipping of asbestos had been developed and a large airplane industry created; Fuses, the much-discussed product of 1916, were being turned out at 275,000 per month.

Meantime, the trade and industrial and war interests of the country had also concentrated upon ship-building as a new and vital need. At the beginning of the year Canada had less than 1,000,000 tons of all kinds of merchant ships-to carry its enormous trade, to transport armies and supplies to the Front, and to help meet the world-shortage of the year in shipping. On Jan. 20 Mr. Hazen, Minister of Marine, announced that "in order to provide for a large employment now and pave the way for permanent and increased ship-building after the War, permission has been granted for the export of ships"-7 steel cargo ships at Vancouver, 3 at Port Arthur, 6 at Toronto, 2 at Montreal and 3 at New Glasgow. There was yet, however, much apathy as to this industry, due very largely to the impression that ships, especially in war-time, were a precarious investment. Col. Cantley at New Glasgow (Feb. 8), urged action after pointing out the enormous demand and need, and profit also, there was in building for present and future merchant trade: "Canada has every natural advantage necessary for the successful development of a ship-building industry, with her extensive coast-line on both sides of the Dominion, with numerous and splendid harbours, with an ample supply of timber, large coal output and a well-developed iron and steel industry. Practically all the material entering into the construction of ships is made or can readily be made in Canada." Government assistance, however, was necessary either by bounty, tariff protection or subsidy.

As the months passed activity grew in all Canadian ship-yards and by March it was stated that 100 vessels, ranging from 250 to 6,000 tons, were under construction. The Imperial Munitions Board had added ships to its munitions and aeroplane manufacture and on Mar. 13 it was announced that the contracts already placed were around $25,000,000 and that ships of substantial carrying capacity and of steel would be constructed: "The British Government has sent out a representative, who is placing, wherever possible, contracts for new ships and purchasing those already in the market; vessels under construction here for Norwegian interests have been bought for delivery at Montreal, Toronto, Collingwood, Port Arthur and the Pacific coast." The chief difficulty in construction was obtaining steel plates from the United States. Existing firms were given contracts while new and large plants on the Atlantic and Pacific coasts were arranged for and efforts made to fully utilize the promised subsidies of the British Columbia and Nova Scotia Governments. The next two years were expected to see an expenditure of $100,000,000 by the Munitions Board with $60,000,000 for the current year. Sir Thomas White told the Commons on Apr. 23 that "orders have been placed by the Imperial Government for the construction of 22 steel vessels, with a total tonnage of 175,000, while orders for eight others are pending." The Munitions Board was given supervision of the British orders and business and, prac