18 NOVEMBER 1932, Page 14

OTTAWA MYTHS [To the Editor of the SPECTATOR.] Sin,—The constant

iteration and reiteration of the Canadian preferential treatment extended to us, is intended as a set-off against what the people must regard as one of the most disastrous pacts to which a Country has ever been bound. But in spite of the protectionist clamour and Mr. Neville Chamberlain's assurances,. which are Strikingly reminiscent of his fathef's announcement of" splendid offers" of Colonial preference twenty-five years ago, we have not been favoured with ri single instance of actual substantial benefit' we are to receive in compensation for the terrible sacrifices to Which we are committed. From a very. long experience of Dominion trade,. I Would like to give an example from personal know- ledge as to how Colonial preferential tariffs only servc the purpose" Of preventing British goods COrnpeting. With their Home industries, but by a smaller prohibitive tariff than other Countries, the result being the same. At the time of the list agitation for Colonial Preference, about 1904, we had for years beer} *stieplying Canada with Steel rails in gOod rpiantities, free of dtity, is they Could not then manufacture their own rails, but about that time a large steel works in Toronto was completed and it was estimated would turn out '400 tons of steel rails per day. The Dominion Government therefore decided to put -a tariff on British rails of 20s. per ton, but to be consistent with the agitation then going on announcing offers of Colonial preference, foreign rails were taxed 30s. per ton and Great Britain was to have a preference of one-third. That was how they got their 20s. per ton tariff which served the purpose of shutting out British rails, for in less than three years we had ceased supplying them. Canada will take good care that whatever preferential tariff she extends to British goods, it will be suffi- cient to prevent them competing with her own industries.—

am. Sir; &c.,