APPENDIX II 197

policy, to do otherwise would undoubtedly cause
friction between Canada and Great Britain and
the other colonies. Friction too long prolonged
causes a conflagration ; conflagration generally spells
ruin; ruin to that loyalty which all Canadians now
have to the Mother Country, wanting which, there
would undoubtedly spring up an agitation for a
change, either annexation or independence—preferably
independence.
To sum up the whole matter, my belief is that we
should leave well enough alone ; the country asa whole
is fairly prosperous and contented.
« "Tis better to bear the ills we have than to fly to
sthers we know not of.”

(E.)—The colonies are first of all interested in having
Great Britain maintain her present high position
amongst the commercial nations of the world, and if
she pursues that fiscal policy which is best adapted to
achieve that end, she will also do best for the Empire
at large. If this view is sound, it follows that in the
present controversy she should not lend much support
to the appeal to make sacrifices in the interests of
Imperialism.
We wish England to pursue a sound policy : firstly,
to maintain the value of her market, and secondly, to
maintain her commercial prestige.
My personal view is that Great Britain will best
hold her commercial position by adhering to a general
policy of Free Trade.
2nd. If England should deliberately adopt protection
 as her best natural policy, then the interests of the
Empire would be promoted by the broadest preferential
 agreement which can be arranged between the
Mother Country and all her dependencies.
3rd. The loyalty of Canada will not be affected to
any appreciable extent by the refusal of England to
grant preferential treatment. Canada recognises the
necessity of England doing the best possible for
herself.