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APPENDIX II.

as high as it ought to be on British manufactured
goods, considering that England admits our manufactures
 free. Not so Germany and the United States,
whose tariffs are prohibitory. Very few Canadians
would object to a reciprocity of duties in favour of
these two countries,
I think there is more suffering caused by overcapitalisation,
 out of date machinery, and want of
enterprise, than from any other cause. The figures
you will obtain in the Canadian Statistical Year Book,
1901.

(G1.)—Canadian industries advocate more protection
 than they at present receive against outside
competition, viz., from Great Britain and the United
States, woollens of all kinds, cotton, steel, iron, &amp;c.
They complain principally against woollens from
Great Britain.

11. What is, and what prompts, the attitude of the two
political parties in Canada towards the scheme ?
(A.)—The attitude of both parties (as represented
by private members and a few leaders who have
spoken) is favourable to the scheme.
The grounds of this favour I should set down as :—
(1) An inclination to support any project thought to
be in the interests of the Empire.
(2) A conviction that Chamberlain’s scheme will at
all events prove a great thing for Canada.
(3) A widespread—practically universal —belief in
Chamberlain as a statesman of the first rank, too wise
and prudent to associate himself with any plan that is
not practicable and sound.
(4) A desire for closer British relations as an
expression of sentiment adverse to the United States.
(B.)—Both of the political parties favour the
Chamberlain proposals, because all Canada practically
 favours Imperialism, and at this stage of the
discussion of the proposals most people in Canada
think that they will, if carried out, aid largely in the