June 5, 1919

CAPTAIN ALBAN LAFERRIERE.


Mr. D'ANJOU: 1. Has Captain Alban Laferrifire been a member of the Canadian Overseas Expeditionary Force? If so, (a) when did he enlist, and in what battalion did he serve ; (b) how long was he in service in Canada, England, and in France; (c) when and for what reason was he returned to Canada? 2. Is the said Captain Laferrifire at present a member of the Canadian Militia? If so, (a) to what Unit is he attached and what is his military rank; (b) On whose recommendation did he obtain his present military position? 3. Who is the Officer Commanding the 70th Battalion? 4. When did Colonel Allard cease to be the Officer Commanding said Battalion, and for what reasons was he retired? IS. Did Captain Alban Laferrifire resign his commission in the Canadian Overseas Expeditionary Force? If so, when, and for what reason ? 6. Was the said Captain LaferriSre arraigned before a court martial during his service overseas? If so, when, and what was the Judgment of the court? . 7. Is the Government aware that the said Captain Laferrifire is in charge of a canteen established for the accommodation of returned soldiers in the city of Hull? If so, is the said canteen authorized by the Department of Militia, and will the Government order it to be closed? Major-General MEWBURN: 1. Yes. (a) 8th January, 1916-57th Battalion. Served in 57th Battalion, 69th Battalion and 10th Reserve Battalion, (b) In Canada, 8 months; in England, 11 months; in France, 2 weeks (tour of instruction). (e) 12th May, 1917-unfit for General Service. 2. Yes. (a) 70th Regiment-Lieutenant, (b) Lieut.-Colonel W. L. Allard. 3. Lieut.-Colonel W. L. Allard. 4. Answered by No. 3. 5. No. 6. No. 7. No, but inquiry is being made.


QUESTION PASSED AS ORDER FOR RETURN.

L LIB

Hon. Mr. MURPHY:

Laurier Liberal

1. Referring to page 381 of the Report of the Ministry Overseas Military Forces of Canada 1918, and to the chapter entitled, "Canadian Army Medical Corps." was Lieutenant-Colonel Jenkins named by Sir Edward Kemp and the Sub. Militia Council, or by either of them, under Order No. 31, to investigate and report

upon the financial or other dealings of the Canadian Army Medical Service in Europe?

2. Did the said Lieutenant-Colonel Jenkins make progress reports from time to time? If so, were such progress reports sent to Sir Edward Kemp's London Office?

3. Did the said Jenkins, (a) Make a full

and final report to Sir Edward Kemp, and (b) was the said and Anal report received by the minister in or about the month of November, 1918? .

4. If so, after receiving the said final report, did Sir Edward Kemp have an interview with the said Colonel Jenkins at which a copy of the said report was produced, and. after discussion retained by Sir Edward Kemp?

5. Did the said report disclose incompetence, neglect, and the wasting of large sums of money in the Canadian Army Medical Service Overseas?

6. Will the said Order No. 31 and the final report of Colonel Jenkins be laid on the table of the House? If so, when?

7. Is there any objection to the said Order or Report being produced? If so, what is the objection?

Topic:   QUESTION PASSED AS ORDER FOR RETURN.
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THE BUDGET.

ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE.


On 'the Order being called: House again in Committee of Ways and Means. The Minister of Finance.


UNION

Edgar Nelson Rhodes (Speaker of the House of Commons)

Unionist

Mr. SPEAKER:

Under the provisions of Rule 17C, when this Order is called on Thursday the Chair is vacated without question put, but by arrangement, and for the convenience of hon. members, it has been found best to submit the motion on Thursday. I make reference to the fact in order that this circumstance may not be construed as a precedent.

Hon. Sir THOMAS WHITE (Minister oi Finance) moved;

That the Speaker do now leave the Chair for the House to go into Committee of Ways and Means.

He said: This motion affords me the opportunity of presenting the Budget for the consideration of the House. It is usual in such presentation to deal with the important topics of the financial position of the Dominion, the condition of our trade, domestic and foreign, the state of our revenues and expenditures for the past and, so far as can be estimated, for the coming year, and to submit the fiscal measures which the Government deems essential having regard to the situation disclosed.

This is the general course along which my remarks of to-day will proceed, but in view of the special circumstances in which Canada in common with the rest of the world finds herself, I hope I may be pardoned if I dwell upon the various subjects

31.'{6

which I have mentioned at somewhat greater length, and in more detail, than has been my custom in previous Budgets which I have had the honour to present to Parliament.

The war is over and all nations are engaged in counting the cost, estimating the condition in which their finance and trade have been left after the fiery tempest which has passed over the world, anld devising ways and means to repair the ruin which has been wrought.

It seems to me that what the House and the people of Canada will first desire to learn from the Budget speech will be what has been the cost of the war to Canada, what is our present financial position, what it will be when demobilization has taken place and our war expenditure is completely at an end, and what are the additional annual charges which must be met as the result of the war.

To these topics I shall first address myself. The fiscal year of the Dominion closes on March 31. According to our system some time is required for the completion of the services and bringing into account of all items attributable to the year closed on that date, but a fairly accurate forecast may be given of what the completed accounts will reveal.

With regard to the cost of the war to the Dominion, the books of the Finance Department show as of March 31 last a total principal war expenditure of $1,327,273,848. The portions incurred in respect of the several years during the continuance of the war are as follows:

$ 60,750,476 for 1914-15 $166,197,755 for 1915-16 $306,488,814 for 1916-17 . $343,836,801 for 1917-18 $450,000,000 for 1918-19

Over the same fiscal period, namely from April 1, 1914, to March 31, 1919, the total expenditure upon ordinary account, that is to say, the current outlays of the Dominion in respect of its various services aggregated $832,757,589. The expenditure upon capital and other accounts for which by the practice of all our Governments provision might properly be made by borrowing, and for which assets of equivalent value were created for the permanent benefit of the people of Canada, amounted during the five years in question to $180,277,873.

Leaving capital expenditure aside and applying the surplus available from our revenues over and above the amount required to meet current outlays it will appear that we have met the principal cost of the war

from taxation to a total aggregate amount of $275,943,977. ffif we take into account the amount contributed during the five year period for interest upon war debt and for pension charges the total paid from revenue on account of the war to March 31, 1919, is $438,293,248.

Now let us approach the subject from another angle. Aside from the cost of the war and how that cost was met, the vital question before us to-day is what is the amount of the total net national debt of Canada and how does it compare with the net debt at the end of the fiscal year immediately preceding the war.

On March 31, 1914, the net national debt was $335,996,850. On March 31, 1919, the net national debt was $1,584,000,000.

There remains to be considered what further increase in the national debt will be made during the present fiscal year which will end on March 31, 1920.

The war, so far as actual fighting is concerned, was terminated by the armistice of November 11 last; but the expenditures connected with the maintenance of the Canadian Corps in Continental Europe, their gradual return, first to England, and then to Canada, their demobilization here, and the provision made by the Government by way of war gratuity to enable members of the Canadian Expeditionary Force to bridge over the period of their re-absorption into civil life have still continued, and will continue over the greater part of the year.

In reality the present year is, so far as expenditure is concerned, a war year. It is impossible to estimate accurately what our demobilization expenditure for 1919-20 will be, but we may be sure that it will not be materially less than $300,000,000:

There is a further important item of our war expenditure which must be taken into account but which at present it is not possible to estimate with accuracy. I mean the additional cost to Canada of our share of the increased expenditure for ammunition at the front from September 1, 1917, to the close of the war.

Assuming that we shall not be able, in view of the magnitude of our reconstruction programme, to pay any substantial part of our demobilization expenditure from revenue, we may calculate that when demobilization is complete and no further outlays are necessary on what I may call the principal of our war expenditure the total net debt of Canada will stand at not less than $1,950,000,000, or in round figures $2,000,000,000. This contrasts with $335,996,850, the net debt of Canada at the end

of the fiscal year 1914. The increase during the five year war period is thus shown in round figures at $1,614,000,000.

This then is the financial position so far as relates to the national debt. While the amount is large and averages over $220 per head of the population of Canada it will be remembered that Canada was in the war from the first day and that by comparison with the present net national debts oi European governments including Great Britain, who were similarly participants in the conflict during its entire length, our position having regard to relation of debt, to number of population, and to national resources must be regarded as distinctly more favourable.

Mr. Speaker, I do not in the least desire to minimize the gravity of so great a debt as now confronts us on the threshold of the new era upon which we are entering. It will constitute a burden upon the people of Canada for generations to come. Fighting for the principles for which we stood we could not and did not count the money cost which is really the least part of oui sacrifices in the war. The realization that at the greatest crisis in all history when the fate of world freedom was trembling in the scale of destiny, this gallant country of eight million people put its all to the hazard in the mightiest of conflicts for the cause of truth and justice, will be the lofty inspiration to greater effort which will enable Canada to carry and ultimately extinguish the heavy obligations entailed by the war.

What portion of this indebtedness and of the obligations we have incurred with respect to pensions and other services arising out of the war we shall be able, under the peace settlement, to obtain by way of indemnity from Germany and her Allies I am unable to say, but it would be imprudent to treat expectation in this regard as an asset upon which we may with certainty depend. It is better to face our debt and other war liabilities as they stand and assume that we must be prepared to bear their full burden by our own strength and from our own resources.

War Savings Certificates maturing 1920-21.. 5% Debenture Stock maturing 1st Oct. 1919.. 5i% Debenture Stock maturing June 1st, 1919

maturing June 1st, 1920

maturing June 1st, 1921

1st War Doan maturing 192-5

2nd War Doan maturing 1931

3rd War Doan maturing 1937

4th War Doan maturing 1922

" " " 1927 " " " 1937

In considering the subject of our national debt an important aspect from the viewpoint of its bearing upon our financial standing and credit is whether it is owed to our own people or abroad. While national debt, no matter where owed, is debt, it makes a great difference to national strength whether it is held within the country itself, that is to say, whether the people regarded in the aggregate owe it to individual members of the community holding their own Government's securities, or whether it is owed to citizens of other nations. From the national standpoint a public debt owed to a nation's own people is not nearly so serious an obligation as if owed abroad. The interest paid upon it is disbursed at home and remains part of the national resources. When the principal is paid there is a transfer of wealth from the Government to its own citizens which still remains an asset of the community viewed as a national unit. But if the debt is held abroad, every interest and principal payment diminishes the resources of the debtor nation and increases those of the creditor nation. In this respect and bearing especially in mind the fact that before the war Canada's borrowing for federal, provincial, municipal and business purposes was principally in Britain and the United States and not in Canada, the situation as to our national debt may be regarded with satisfaction.

In round figures the total outstanding securities of the Dominion Government are held as follows: in Great Britain.

$326,700,000; in the United States, $150,873,000; in Canada, $1,510,000,000.

Topic:   THE BUDGET.
Subtopic:   ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE.
Permalink
?

Some hon. MEMBERS:

Hear, hear.

Topic:   THE BUDGET.
Subtopic:   ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE.
Permalink
UNION

William Thomas White (Minister of Finance and Receiver General)

Unionist

Sir THOMAS WHITE:

2,901,700

43,933,900

54,689,900

92,65-2,800

$206,256,250

65,724,550

246,413,000 '

518,393,800

5th War Loan maturing 1923

" " " 1933 [DOT][DOT]

3i% bond loan maturing 1925-23

41% bond loan maturing 192'5-45 -

From this statement the House will see how necessary it was to issue long date securities even at war rates of interest. If we had to face the maturity of so vast a principal amount as is represented by our war borrowings in Canada within a period of five or ten years after the war, I may frankly say that the solution of such a problem would tax to the utmost the resource of any Minister of Finance. But with the various maturities spread over so long a period of years, ample time is afforded to adopt whatever measures may be needed to meet the redemption of each loan . as it matures.

In the United States our maturities are as follows:

August 1st, 1919 $75,000,000April 1st, 1921

25,000,000April 1st, 1926

25,000,050April 1st, 1931

25,000,000August 1st, 1935

873,000

As of March 31 last other short date Treasury Bills payable in Canada were outstanding with maturities as follows:

October 1, 1919

24,605,000October 15, 190.9

49,215,000

On the same date our financial resources were as follows:

In Canadian banks $135,000,000

In Bank of Montreal, London.. .. 10,000,000 In Bank of Montreal, New York. . 4,414,047

Amount to be received on account of last Victory Loan 55,000,000

Total $204,414,047

On account of this being, as respects expenditure, a war year, we shall have to float at least one further loan in Canada for purposes connected with the war and demobilization. Any necessary external financing to meet loans maturing outside of Canada will receive timely attention.

As the aggregate of our war issues exceeds our net war expenditure it is to be pointed out that during the war we were enabled to make advances to Great Britain for her purchases in Canada to a greater extent than we availed ourselves of advances from the Imperial Government to meet our war expenditure in England and on the continent. The result is that there is owing to us by the Imperial Government a balance, after making the necessary setoffs, of about two hundred and thirty million dollars. This is subject to reduction

$218,346,000

477,400,000

695,746,000

$12,404,678

95,207,351

107,612,029

by the unascertained amount which we shall pay in respect of increased charges for ammunition at the fro.nt since September 1, 1917. An inquiry is now being made for the purpose of adjusting this charge.

The following information will be of interest to the House as to Dominion note issues at the close of the war:

Total Dominion Notes outstanding March 31, 1919 $298,058,697.67

of which $153,630,697.67 is secured to the

amount of $116,014,654.37 in gold reserve and $144,428,060 by securities.

Our gold is thus 38.92 per cent of the total issue of $298,058,697.67, and 75-52 per cent of the $153,630,697.67 against which no securities other than gold are held.

A comparison with the note issues of Great Britain and the other Allies, including United States which was less than two years in the war, is such as to cause satisfaction to Canada with respect to the postwar condition of our currency. *

The policy will be to gradually restore our note issue to the statutory condition, which requires us to hold in gold 25 per cent up to fifty million dollars of note issue and dollar for dollar for any further issue. This can be done by buying gold on the one hand, or on the other by retiring outstanding notes from time to time from the proceeds of loans or from revenue. It will be a long time before the currency inflation of the world will be abated.

The figures which I have given show the increase in the national debt of Canada due to the war. Interest must, of course, be paid annually upon this debt, and T have had a careful estimate made as to the yearly burden which this will entail.

Assuming the total debt of Canada on March 31, 1920, to be $1,950,000,000, the estimated annual interest charge will be approximately $115,000,000. This compares with $12,893,504, which was the interest charge upon the national debt as of the fiscal year ended March 31, 1914.

But the added annual burden due to the war does not rest there. There is the further responsibility for pensions to our soldiers and their dependents. For the past fiscal year the amount paid on this account was $17,460,000. For the present fiscal year it may reach $30,000,000. For a generation or more to come we may look forward to providing, say, $35,000,000 to $40,000,000 per

annum for pensions. In addition there will be the annual expense for maintenance of hospitals, convalescent homes, and other services established for the aid and comfort of our soldiers. No national expenditures will, I am sure, he more gladly borne than these by the people of Canada, who will never fail to appreciate the sacrifices made on their behalf by those who fought for Canada in the great war.

Having indicated the extent of the financial burden which the war has imposed upon us, it seems advisable to pause to inquire how that burden is to be met. What are the resources upon which Canada must depend to carry this huge national debt and the annual charge for pensions and other services which I have mentioned? We are to-day a prosperous community of high average productivity. I am not prepared to say that even without extraordinary effort we should not be able to merely carry along the extra financial burden imposed by the war. But its magnitude must not be minimized, and it is for us to consider and put into effect such policies as may be appropriate to counteract the disadvantage under whidh we shall labour in this regard and to insure the continued prosperity of our people, notwithstanding this great national handicap upon their exertions. In this connection we should undoubtedly have in mind the gradual extinction over a long course of years of the debt by a sinking fund provision to be put into effect as soon as possible after the conclusion of the present year. With 'this I do not intend to deal further for the present.

WThat are our resources, actual and potential, from which we can carry the interest, pensions, and other war charges, and gradually extinguish our indebtedness due to the war?

We have a country of almost unlimited natural assets, vast stretches of cultivable lands, magnificent forests, regions abounding in mineral wealth, and fisheries the most valuable in the world. We have a highly intelligent, energetic, enterprising people of great stability of character and ardent 'aspiration for national and individual success. To develop our natural resources there is required the application of enterprise, capital, and labour. To sell our products we require markets, domestic and foreign.

Let us for a moment consider some of the policies which are essential for the realization of the development I have outlined. Our ability to meet ana retire our war obli-

199J

gations will depend upon our power to increase our production of natural and manufactured commodities and to economize individually so as to bring about each year substantial increase in domestic wealth and savings and a more favourable balance in our international trade. In other words, the motto for the future, as it v as for the war, must be " Produce and Save."

As evidencing what can be -done by Canada in the way of national saving, I can not do better than give the following statistics of deposits, demand and notice, in our chartered banks for the years 1913 to 1919, inclusive:-

Mch. Demand Withdrawable 31. Deposits on notice Total.1913 $357,756,6-59 $ 630,434,708 $ 988,191,3671914 350,884,153 665,994,8-52 1,0-16,879,0-051915 406,735,171 714,219,286 1,120,954,4571916 459,277,454 8-36,59-3,269 1,295,870,72-31917 538,869,362 1,008,657,874 1,547,52-7,2361918 666,366,359 939,329,271 1,605,695,63019-19 566,797,268 1,037,851,766 1,604,649,0-34

The bank deposits in Canada almost doubled in the six-year period from 1913 to 1919. In connection with these figures, there should also be taken into account the subscription by the Canadian people to the war loans floated in Canada and paid for by withdrawal of their deposits in our chartered banks and other financial institutions.

To greatly increase our production we need more population and particularly that class which will engage in our oasic industries. Our immigration policy is therefore of prime importance. We must fill up our vacant cultivable lands. In the past we have not been sufficiently selective in our immigration. We are so amending our laws as to ensure that the destinies of this country will always be controlled by those who may be depended upon as loyal and patriotic citizens of Canada, ready at all times to take up arms in her defence no matter from what source aggression may come. It is interesting to note that during the war immigration-, likely to result in increased production, continued, although on a comparatively small scale. The figures are as

follows:

Immigration for 1914-15

144,789" " 1915-16

48,537" " 1916-17

75,374" " 1917-18

79,074" " 1918-19

57,702

-Since March 31 last immigrants to the number of 12,000 have entered Canada.

As a great food-producing country Canada is bound always to enjoy agricultural prosperity. The war lias caused the death of millions of the rural workers of Europe, devastated vast tracts of cultivated lands.

consumed the horses, cattle and other domestic animals, and destroyed the implements of tillage.

It must be many years before Europe is able to recover agriculturally from the effects of the war. In the meantime the hungry millions must be fed and it would seem certain that Canada's agriculture will not lack for profitable markets for all it can produce.

The yearly exportable surplus of the Dominion's grain and foodstuffs should go far towards ensuring most favourable trade balances for the future. For the reconstruction work in Europe our raw materials and their products must also be in demand. Every effort must be made to develop and expand our export trade in manufactured articles as well as in the immediate products of our fields, forests, and mines. The more highly finished the commodity the greater the price which it will bring to the Dominion. Our policy should be directed to ensuring so far as practicable the completion within Canada, in Canadian shops and mills, of manufacturing processes in order that we may obtain the benefit of the greater value of finished products as compared with that of raw materials or partly manufactured articles.

No doubt we shall be subject in this to the keenest international competition., and to succeed we shall require to avail ourselves of every assistance which can be legitimately afforded by the Government in obtaining information respecting, and access to, foreign, markets, as well as transportation and financial facilities.

One most important asset which we possess as a result of the war is the increased capability of industrial production which was" turned during the war to such remarkable purpose in the manufacture of munitions and other materials. In all departments of our national activity-agricultural, industrial, commercial and financial-the war discovered to the people of Canada a capacity in themselves for achievement which, they would not have dreamed they possessed had not the pressure of emergency called forth their latent genius for

organization, administration and efficiency. This higher capability among all classes should prove of the greatest value in enabling us to deal with our after-war problems and burdens.

As illustrating the vast strides made by our foreign trade during the war, the following statistical information is submitted.

In 1913 the balance of trade against us was $300,000,000. In 1914 our total international trade was $1,073,000,000, of which $618,000,000 was in imports and $455,000,000 in exports. For 1918 the total was $2,550,000,000, of which $962,000,000 was imports and $1,586,000,000 exports. For 1919 the unrevised figures show a total of $2,169,000,000, of which $916,000,000 was imports and $1,253,000,000 exports. It will thus appear that from an adverse balance of $300,000,000 in 1913 and of $160,000,000 in 1914, we had attained a favourable balance of over $600,000,000 in 1918 and of $340,000,000 for 1919. At the end of the five-year period from 1914 to 1919 our total trade had doubled, while for the year 1918, which marked the highest point, it aggregated 2J times the trade of 1914.

It must be kept in mind respecting these figures that the higher prices of our grain, foodstuffs and other exports, and of the goods which we imported, is a most important factor for consideration, and further that of' our exports for 1918 and 1919 the estimated amount of ammunition, explosives and other war materials aggregated $418,000,000 and $260,000,000 respectively. The cessation of the manufacture of- these articles and any fall in the price of commodities generally are bound to make serious changes in our trade aggregates unless offset by increased production. For the information of the House I here place upon Hansard the statistical details of our total trade, also details of our trade with the United Kingdom, with the United States, and of exports (by classes) of Canadian produce for the past six years; also of imports from and to the United Kingdom and the overseas Dominions, and the principal foreign nations with whom we traded for the past two years.

Topic:   THE BUDGET.
Subtopic:   ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE.
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CANADIAN TRADE.


Merchandise Only Imports for Consumption. Exports (Domestic and Foreign). Total Trade.Fiscal year ended Mar. 31- 1913 $ 670,089,066 618,457,144 962,543,746 916,443,332 $ S 1,047,157,4211914 1918 [DOT]TT^Ti df 1/1/11 uUo1919 (unrevised) 1,253,080,170 2,169,523,502


TRADE WITH THE UNITED KINGDOM.


Imports lor Consumption. Exports (Canadian Produce). Total.Fiscal year ended Mar. 31- $ $ $1913 138,741,736 132,070,362 81,302,403 73,029,215 170,161,903 215,253,969 845,480,069 531,920,977 308,903,639 347,324,331 926,782,472 604,950,1921914 1918 1919 (unrevised)


TRADE WITH THE UNITED STATES.


Imports for Consumption. Exports (Canadian Produce). Total.Fiscal year ended Mar. 31- 1913 $ 435,770,081 395,565,328 791,906,125 746,940,654 * 139,725,953 163,372,825 417,812,807 454,923,170 $ 575,496,034 558,938,153 1,209,718,932 1,201,863,8241914 1918 1919 (unrevised)


IMPORTS AND EXPORTS BY COUNTRIES.


Countries. Imports for Consumption (Merchandise only). Exports (Domestic). Year ended Mar. 31, 1918. Year ended Mar. 31, 1919. Year ended Mar. 31, 1918. Year ended Mar. 31, 1919.$ 81,302,403 2,356,655 553,362 9,355,593 6,716,647 10,550,550 2,947,527 3,735,559 10,515,185 $ 73,029,215 4,963,416 1,300,259 8,395,290 6,747,072 8,082,790 3,098,834 7,855,436 10,188,104 $ 845,480,069 8,653,635 5,065,658 2,995,630 1,978,323 6,838,563 10,191,564 4,089,823 3,494,911 $ 531,920,977 14,019,629 11,992,299 2,905,426 2,646,169 9,829,072 11,327,074 6,227,509 5,461,789 128,033,481 123,660,416 888,788,376 596,329,789 984,955 12,973 1,085,547 5,274,053 771,487 12,255,319 1,054,176 791,906,125 1,139,267 6,270 2,628,031 3,641,244 555,112 13,618,122 495,409 746,940,654 1,203,142 4,909,453 4,015,940 201,053,676 3,336,059 4,861,244 2,462,574 417,812,807 4,603,130 950,318 5,035,975 92,103,142 13,181,514 11,845,439' 198,985 454,923,170 834,488,366 792,783,016 651,239,412 611,284,017 962,521,847 916,443,432 1,540,027,788 1,207,613,806


EXPORTS OF CANADA, BY CLASSES.


Canadian Produce. The Mine. The Fisheries. Fiscal year ended Mar. 31- $ $1913 57,442,546 16,337,7211914 59,039,054 20,623,5601918 73,760,502 32,602,1511919 (unrevised) 77,439,963 37,137,072Fiscal year ended Mar. 31- The Forest. Animals and their Produce.$ 43,255,060 42,792,137 51,899,704 70,024,644 $ 44,784,593 53,349,119 172,743,081 197,805,478 Fiscal year ended Mar. 31- Agricultural Products. Manufactures. $ 150,145,661 198,220,029 567,713,584 269,819,833 $ 43,692,708 57,443,452 636,602,516 549,284,268 1919 (unrevised) Estimated amount of cartridges, explosives, ammunition and other war materials exported during the year ended Mar. 31, 1918 Estimated amount of cartridges, explosives, ammunition and other war materials exported during the year ended Mar. 31,1919 During the war the condition of our foreign trade has been greatly changed. The outstanding feature has been the increase in total to which I have referred and the reversal of the unfavourable to a most favourable balance. The trend of our trade for the war period may be observed from the following summary: United Kingdom. The imports from the United Kingdom have decreased from the fiscal year 1913-14 to the year 1918-19 from $132,000,000 to $73,000,000 and our exports (domestic produce) have increased from $215,000,000 during the year just preceding the war to $532,000,000 during the year 1918-19. Other Parts of the British Empire. Our imports from other parts of the British Empire increased from $22,000,000 during the fiscal year 1913-14 to $50,000,000 during the fiscal year 1918-19, and exports $ 418,000,000 260,000,000 (domestic produce) increased from $23,000,000 to $64,000,000 during the same period. United States. The trade with the United States has greatly increased during the war period. The imports from this country in 1913-14 were $395,000,000 and in 1918-19 were nearly $747,000,000, while the exports (domestic) increased from $163,000,000 to $454,000,000. France. The imports from France have decreased from $14,000,000 in 1913-14 to $3,600,000 in 1918-19, while the exports increased from $3,600,000 to $92,000,000 during the same period. The exports were largely munitions and other war supplies.. Italy. The imports from Italy during the wai period decreased from $2,000,000 to $550,000 and the exports increased from $500,000 in 1916-14 to over $13,000,000 in 1918-19. In the year 1917-18 the principal exports were asbestos, canned salmon, canned meats, wheat, oats, oatmeal and explosives. Japan. The imports from Japan during the year 1913-14 were $2,600,000 and increased to $13,600,000 in the year 1918-19. The principal goods included in the increase would appear to be of a class formerly imported from Germany and Austria-Hungary. Our exports (domestic) to Japan in 1913-14 were $1,500,000 which increased to nearly $12,000,000 in 1918-19.


June 5, 1919