1164 ADMINISTRATION AND LEGISLATION [rARTV 
The Chamber of Commerce is evidently quite ignorant of 
the principle upon which the valuation of goods for duty is 
made by Canada, which is on the value in the market where 
bought. The Sheffield goods are therefore admitted for 
duty at their price in Sheffield, while the American goods are 
taken at their value in the United States. This mode of 
valuation is clearly in favour of the British manufacturer, 
and is adopted with the deliberate intention of encouraging 
the direct trade, as will be shown hereafter. 
The reply of the Board of Trade indicated the danger that 
industries which grew up under protection would always 
require protection, and the danger has, of course, been 
shown to be a real one, though Mr. Galt was not then able 
to agree with the forecast, and though high protection was 
introduced only in 1879, after the return of the Macdonald 
Ministry in 1878. But apart from that consideration, which 
was clearly one for Canada to decide upon, the rights of 
the case were distinctly with the Colonial Government, 
and that was the last attempt of the Imperial Government 
to address remonstrances in such a tone to the Canadian or 
other Colonial Government, though they were unjustly sus- 
pected of having sympathized with the Upper House of 
Victoria in the dispute of 1865-6, regarding the tacking of 
the new tariff for protection to the Appropriation Bill. 
In 1870 a strong desire manifested itself for the adoption 
of inter-colonial free trade between the Australian Colonies 
and the Colony of New Zealand, but the difficulty was that 
the Australian Colonies were prevented by their constitutions 
from granting preferential duties, and all Bills in them and 
in New Zealand had to be reserved. Bills passed by Tasmania 
and New Zealand in 1870 for reciprocity, and one passed in 
South Australia in 1871, were not given the royal assent! 
For a time feeling ran high in the Colonies, and efforts were 
made to secure a concession from the Imperial Government 
of further powers. In January 1868.2 the Imperial Govern- 
Parl. Pap., H. C. 196, 1894, pp. 9-11. Cf. C. 7824, p. 9. 
Parl. Pap., C. 576, p. 1. In 1849-50 a tariff union for Australia was pro- 
posed by Earl Grey, and in a dispatch of October 31, 1851, he advocated free 
trade ; see Parl. Pap., July 1, 1852, p. 67 ; Hansard, ser. 3, coxv. 2000-2.