180 APPENDIX II

prices fall and the volume of trade shrinks, Canada
will be a dumping ground for surplus products made
in the United States, unless steps are taken to prevent
it. Before long there will therefore probably be in
Canada a loud cry for an increase in our tariff, and 1
do not think any Government will be able to resist
the demand. If one branch of manufacture needs
more protection and gets it, others will demand it
whether they need it or not.
(C.)—Canadian industries are very various. Some
of those engaged in some industries are crying out for
more protection, some others are satisfied with what
exists at present. 1 do not think there is any
unanimity among those engaged in any particular
industry ; such is the conclusion reached from reading
a number of interviews which appeared recently in
the Toronto News. Some say that the woollen industry
is suffering, whether due to foreign ¢dumping” or
not remains to be proved. Any industry may imagine
itself suffering; and, in fact, there may be such
suffering where American firms, selling away above
cost at home (due to their tariffs), and consequently
able to sell below cost abroad, are sending in their
surplus products at unduly low prices. I can give no
figures at present.
(C1.)—They have all the protection that the farmers
and producers will allow.
(D.)—In what sense is “require” used? Canadian
industries, 4... manufacturers, would be pleased, as
Canadian farmers or any other ordinary human beings
would be, to get rich faster at the expense of other
people. If the public interest be the basis for considering
 what they require, they require nothing but
to be submitted to more competition by a general
reduction of the tariff. Canada must maintain a high
tariff for revenue purposes—incidentally it affords
much protection to Canadian manufacturers—and this
is partly a public benefit, and partly a public injury.
The one fairly good defence for a protective system is