PUBLIC RECORD OFFICE
C.O.
Reference :-
+885
17 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
62
22
As regards her exports of agricultural produce, it may be sufficient to point out that the Dominion calls herself, and not without some show of reason on her side, "the Granary of Britain."
Canada is already a great manufacturing country, in possession of inexhaustible domestic raw material.
These few facts are alone sufficient to show that Canada possesses very varied resources, and these of the most valuable kind in the world's markets, resources that are so diversified as to render the country little likely to suffer greatly from market fluctuations or from unfavourable seasons.
Canada can bide her time, can wait for some particularly favourable opportunity to negotiate with the United States, her exports are so many and so choice.
11. The position of Newfoundland is very different. This Colony has only one great staple industry, its fishery, which in 1903-1904 furnished four-fifths of the Colony's exports; one considerable industry, winerals, which made up something more than 12 per cent. of exports; while furs, skins, and the forests only contributed some 6 per cent. between them.
It has also to be remembered that the main export from this country consists of an article, dry cod, which is not universally relished, and for which a taste is not cultivated in Europe beyond the so-called Latin nations; and of these France supplies herself, and to a considerable extent her neighbours. Thus, for example, the United Kingdom took 123,738 cwts. in 1902, 107,079 cwts. in the following year, and in the succeeding twelve months 41,841 cwts. It requires only one more similar decrease to extinguish this export to the United Kingdom.
To find a market for its one staple product is a necessary condition of the existence of this Colony. It has to purchase its clothes, its food, and its fuel from other countries. It can only do this from its exports, for it does not receive any income from investments abroad, and it is not possessed of great accumulated wealth at home. The paucity of its resources is the result of circumstances that are to a very large extent beyond the control of its inhabitants.
The total imports of Newfoundland for the fiscal year ending June 1904, amounted to $9,448,664. Of this sum $4,144,456 was expended on food, the great mass of which was made up of the necessaries of life; $1,299,797 was paid for animal products; and $1,810,173 was laid out on articles of agricultural origin; while the whole expenditure on beverages was only $94,885, of which $12,620 was re-exported. The Colony paid $512,355 for coal; $864,932 for dry goods; $323,755 for hardware; for cordage, hemp
lines and twine, $290,142. yarn,
In short, this Colony is much more dependent on other countries for its food than is the United Kingdom itself; and practically all the other necessaries of life have to be imported. There are, in fact, few countries that are less self-sustained than is this Colony; and there are perhaps none that possess fewer staple industries. It is these and similar considerations that make this Government feel the responsibility of finding new and more extended markets for the products of this Colony. It will be conceded, in the face of these facts, that the case of Newfoundland is, as regards this Convention, much more urgent than that of Canada. The circumstances
of this Colony are such that they can be readily understood in Great Britain; its population must find in foreign markets the means with which to pay for its food; but Newfoundland has, in addition to this, to find from the same source the money required to purchase clothes and fuel from abroad. The necessity of maintaining and extending foreign markets for the United Kingdom is well recognised; the necessity is still greater in the case of this Colony. It is confidently hoped that a large step would be made in this direction could this Convention with the United States be brought into operation.
12. It has been stated by this Government, and the opinion has been expressed above, that the ratification of the Convention would not in any degree prejudice trade between this Colony and any other British possession.
63
It is clear enough that the total trade between Newfoundland and the United Kingdom is decreasing both absolutely and relatively.
During the five years, 1888 to 1892, the total trade of the Colony was distributed thus:-
United Kingdom Canada
-
United States
Elsewhere
33.1 per cent. 20.5 14.5 " 31.8 "1
""
-
24.5 per cent. 21.3 21.1 "1 33.1 17
"
During the five years ending with June 1904, the distribution was :---
United Kingdom
Canada
United States
Elsewhere
Un com-
The total trade with the United Kingdom in 1888 amounted to $5,637,658, while during the year ending with June 1904, it was valued at $4,473,133, a decrease of $1,164,525, or of 20.7 per cent. in sixteen years. paring the two comparatively prosperous years 1888-89 with the two fiscal years last past, we find that there is an absolute decrease in the exports to the United Kingdom of $179,095, while the increase on the total exports of the Colony was 35 4 per cent.
It seems very improbable that this tendency as regards decreasing exports to the United Kingdom can be arrested unless there is a larger investment of British capital here.
Under the Convention the raw products of the mines of this Colony, together with exports derived from the fisheries generally, with the exception of fresh cod, would be admitted free into the United States. This would not greatly affect the exports to the United Kingdom of dry cod, herring, lobster, or fish of any kind. The destination of minerals is likely to be largely dependent on the origin of the capital by which they are exploited, and the tendency in this is towards America. The United Kingdom appears to have all the fish required there, with something to spare. The United States, with an actual population of 82,000,000, which at the present rate of increase will amount to 100,000,000 in a dozen years, would present to this Colony an enormous market. It seems certain that the fish supply of the United States is not advancing in proportion to population. Of all countries it appears to be the one that is destined to offer the largest and best market to this Colony, both as regards fish and minerals.
There can
At the present time the trade in fish is almost prohibitive on account of the Customs barrier. The exports of dry cod during the four last fiscal years have been, respectively, 37,594, 32,261, 34,115, and 13,642 cwts. hardly be any doubt that if intelligent attention were given here to prepare fish in ways that were suitable to the market, the United States would, under the Convention, take a great deal more Newfoundland fish than is the case at present.
The United States would probably also supply a better market for the animal oils exported from this Colony, a great desideratum to the trade of this country at the present moment.
13. There does not appear to be any good reason for expecting that the Convention would greatly affect imports into this country.
The United Kingdom cannot, and does not, supply this Colony with food. Last fiscal year it sent to this country food, including beverages, valued at $309,439; against $1,792,248 from Canada; $1,558,397 from the United States; and $484,272 from elsewhere. As no preference would be given against Canada, the Dominion would continue to have the same fair market that she enjoys now in this country.
The trade of the Colony is perhaps best considered as divided between the United Kingdom, Canada, the United States, and elsewhere. Proceeding on this natural distribution, there are, on the basis of the last fiscal year, eight classes of imports of importance, of which the United Kingdom supplies more than 25 per cent. Coal is so nearly a ninth article that it may be considered here. Of this the United Kingdom supplied 24 4 per cent., Canada 66.8, the United States 8.6. The coal imported from the United States is anthracite, and is required in limited quantity for domestic purposes. It could not