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.
