all the West Indian oi nim except Bermodarande15 bosnien greater tamf farOTS WATE ATTAR bed on both sis

The administratime regulations ennnected with the (attr operate to increase the British preference in tire repers S 1939 the Canadian ad valorem dunes have been amusing ca

in tre port of erupment rather than on the value at the port of em into Canada. The effect is to free from date the easts of 25%. transportation from any part of the world, and to that extens deprive the countries which lie closer to Canada of the advange their position. Since the chief competitors for the Canadian by trade are the United States and Great Britain, the latter denives o main benefit from the regulation. The Canadian antidumping (1904-7) operates to the advantage of free-trade countries, so ti Great Britain derives the main benefit; and special features of t law applicable to Great Britain alone extend the same advantag in respect to certain articles upon which duties or excises are iera in Great Britain. In 1920 the rule in regard to the conversion d valuations expressed in depreciated currencies was changed so tha the ad valorem duties upon imports from countries with depreciate currencies were in effect reduced in proportion to that depreciati (but, according to legislation proposed in May. 1921. not bevonds reduction of 50 per cent). Once again the legislation benefits courtries other than Great Britain, but its significance lies chiefly in its favorable effect upon British as compared to American trade with Canada.

It was the Liberal Party which introduced and extended th Canadian preferential system in 1897-1900. When, after severa years, Great Britain had granted no preference in return, từ Canadian Government sought the expansion of trade in other dire tions, and the period from 1904 to 1911 impaired, to a considerab degree, the value of the preference accorded to Great Britain. The period ended with the rejection by the Canadian voters of the recip rocal agreement with the United States (1911) and the return of the Conservatives to power. The Conservatives extended the preference enjoyed by the British West Indies (1912), and, by the war customs act of 1915, made a general increase in the differentials between the rates of the preferential and the other schedules. After the war, when the reduction of taxation became possible, the Coalition or Unionist Government removed the surtax first from British products so that temporarily the preference was further increased. The programs of the Liberal and of the Farmers' Parties now calls for an extension of the free list and for an all-around reduction of duties, but both would accompany these measures with a general increase in the percentage of reduction accorded under the preferential schedule, and the Farmers' Party even advocates free trade with Great Britain. Thus the leading parties in Canada have given their support to the preferen tial policy-a policy which is receiving renewed consideration as Canadians reflect upon the probable effect upon their trade of the tariff revision now in progress in the United States.

(Bibliography on page 832.)

I. POPULATION, TRADE, AND GOVERNMENT.

The Dominion of Newfoundland includes the island of that name, -,700 square miles in area, and that strip of the eastern coast of the -ntinent called Labrador, with an area of about 120,000 square iles. Labrador is practically uninhabited, containing only about 000 people. The population of the island is about 250,000 or 6 to e square mile. Newfoundland, for the greater part of her history, as been a country of one industry-fishing. Even to-day, although recent years the mining and wood-pulp industries have undergone onsiderable development, over 70 per cent of her exports consist of roducts of the fisheries and over 60 per cent consist of dried cod lone. The small population and the lack of economic development ake Newfoundland much the least important of the Dominions, nd its commerce is only about one-fourth of that of New Zealand, he next larger of the Dominions. Table 1 shows the values of imorts and exports, and their growth since 1900.

'ABLF 1.— Value of the imports and exports of Newfoundland for selected years, 1900–

Of all the self-governing Dominions, Newfoundland enjoys the least control over its own legislation and in other respects possesses les autonomy than the other Dominions. This limitation is partly the result of its small population and of its comparatively backwa economic development, but it is primarily due to the danger of th disturbance of international amity arising from competition in the fisheries. The claims of France and the United States to privilege in the Newfoundland fisheries and the objections raised aga these claims by Newfoundland have repeatedly involved Gra Britain in diplomatic controversies, have at times even endangers the continuance of friendly relations with France and the Un States, and have resulted, therefore, in Great Britain's retaining greater measure of control over Newfoundland legislation.

II. GENERAL FEATURES OF THE TARIFF.

The tariff schedules of 1898 and 1905 show that Newfoundland long pursued the policy of levying high duties, partly for the pr tection of her agriculture and her few industries, but chiefly securing revenue. Many of the rates, especially on foodstuffs. specific, but ad valorem rates up to 40 per cent, and even high are levied on many classes of manufactured articles.1

A surtax of 10 per cent of the rate was added to all import duties December, 1914. In a few instances the rates are protective of loc industries, but the manufactures of Newfoundland are comparative unimportant, so that the rates are chiefly for revenue. In norm prewar years duties on imports yielded over 80 per cent of t colony's revenue. Before the war the free list included agricultur and coal-mining machinery; books, paper, and printing suppli whole wheat and uncleaned rice, and fertilizers; but these artic and others have been made dutiable at 10 per cent. The fr list still includes sugar, kerosene, salt for curing fish, machineTM for making nets and other fishing gear, and various raw materia The free list in 1913-14 covered 47.5 per cent of the total importatio but in 1918-19 only 16.1 per cent. The transfer to the dutiable l of many articles which, however, were subjected to comparative low rates has decreased the average rate collected upon all dutisharticles, while the presence of numerous specific rates has serve during a period of rising prices, to prevent an increase in the averag rate collected upon all imports, free and dutiable. Table 2 shows the average rate collected upon all imports for selected years before

1 Examples of these duties, without the surtax, may be given. The general terms used include in cases articles dutiable at other rates under more precise descriptions contained elsewhere in the t schedule. Eggs are dutiable at 5 cents a dozen; tea and coffee at 5 cents a pound; potatoes at 1965bushel; other vegetables at 20 cents a bushel, or at 30 per cent ad valorem; fruits, 15 per cent; dried 53 cents a pound; herring barrels, 25 cents each; lumber, $1 to $5 per thousand feet; gasoline, 6 cents a ra cigarettes, $5 a pound; beer, 80 cents a gallon; wines, other than champagne, $0.40 to $2.60 a gallon other alcoholic beverages $3.40 to $4.50 a gallon. Lard, glassware, and paint pay 30 per cent ad vabits and common brick 30 per cent plus $2.50 per thousand. Thirty-five per cent ad valorem is levied a practically all textiles; many kinds of groceries, hardware, and machinery; boats and launches, fish, and timepieces. Forty per cent ad valorem is levied upon all goods not enumerated in the schedules, upon china and porcelain, leather ware, trunks and valises, hats and caps, brushes, bir manufactures of wood, matches, fancy wares, fireworks, perfumery, musical instruments, and je Forty-five per cent ad valorem is levied upon ready-made clothing, manufactures of fur, and tidest, Alcoholic perfumes, and advertising and printed matter are among the articles dutiable at 50 per dels al valorem; casks, n. c. s., pay 60 per cent, and wheelbarrows 75 per cent.

The surtax of December, 1914, is applicable and makes this rate 11 per cent. Tea was free, and is dutiable at 5 cents a pound; beef and pork in barrels have been made dutiable at $1 and $1.50 per h respectively. Acts of Aug. 12, 1921 increase the surtax to 25 per cent of the duty, with some excentirel and impose upon imports a sales tax of 5 per cent ad valorem. Commerce Reports, Oct. 10, 1921, på 359, 362.

1 after the tariffs of 1898 and 1905, for the last fiscal year before war, and for the latest year available.

TABLE 2.—Total imports and duties paid thereon, in selected fiscal years.a

Newfoundland alone of the Dominions has not adopted a general heme of preference to British trade. The explanation of this olation in policy is to be found partly in her policy of raising revenue om imports, but mainly in the character of her export trade and of er commercial relations with other countries. Briefly, Newfoundnd finds her most important markets, actual and potential, outside I the British Empire, and the British countries which do afford a mited market for her products either already grant to Newfoundland one-sided preference for reasons of their own, or are not likely to dopt preferential duties which would benefit Newfoundland's trade. Newfoundland, therefore, has not been drawn toward a preferential policy by the same hopes which have influenced the other Dominions, nd, on the other hand, her fears of retaliation by other countries ave been stronger.

Newfoundland representatives have taken little part in the disussions of preference at the colonial conferences. Newfoundland ailed to send representatives to the Ottawa conference of 1894. At he conference in London in 1902, and again in 1907, her representaives supported the resolutions for preferential trade. Sir Robert Bond, the prime minister of Newfoundland, stated at the colonial onference of 1907 that the establishment of a preference to British products was under consideration, but the budget speeches 3 made. n the Newfoundland Legislature during this period do not disclose any indications of it. On the contrary, year after year, emphasis was laid, first, on the necessity of Newfoundland's retaining complete iscal autonomy and determining her commercial policy with a view single to her own interests, and, second, on the fact that the important markets for Newfoundland's exports were in foreign countries.*

Jebb, R.: The Imperial Conference, Vol. II, p. 218.

Cf. for example, budget speeches of Mr. E. M. Jackman, minister of finance and customs, Mar. 15, 1907, and Feb. 11, 1908.

THE TARIFF AS A REVENUE PRODUCER.

The Newfoundland tariff is relied upon to produce a great part of the State's revenue. Through many years prior to and including 1916-17 customs yielded 80 to 85 per cent of the total revenue, and in 1917-18 above 75 per cent of the colony's revenue. Moreover, in normal prewar years over 60 per cent of the colony's imports came from British countries. A general reduction upon these imports, therefore, would have resulted in losses of revenue, while a general increase upon foreign imports was not considered desirable.

CHARACTERISTICS OF NEWFOUNDLAND'S TRADE.

The distribution of Newfoundland's trade is shown in Tables 3 and 4. Table 3 shows the predominance of the United States. Canada, and Great Britain in supplying the diverse wants of Newfoundland and the relatively unimportant market which they afford for her products. Table 4 shows more specifically the markets for Newfoundland's chief export, dried cod. It exhibits the significant fact that the Roman and Greek Catholic countries of Europe and South America absorb 90 per cent of Newfoundland's export of dried fish. In these countries the warm climate, the low standard d living, and the religious observances of the people all combine to create a market for cheap salt fish, whereas there never has been and can not be any special demand for it in Great Britain. This is one of the principal factors which has obstructed the development of the preferential policy in Newfoundland.

TABLE 3.—Total value of imports and exports of Newfoundland by principal countrie for fiscal years 1914 and 1919.1