June 11, 1929

CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

They received a good price in the Chicago markets for their cattle, and they had to pay a high rate to get them there. There are no thanks due .this government for that fact.

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LIB

Charles A. Stewart (Superintendent-General of Indian Affairs; Minister of Mines; Minister of the Interior)

Liberal

Mr. STEWART (Edmonton):

May I say that they received the highest price paid for cattle in western Canada during the last twenty years or more.

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CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

If the hon. gentleman will look up the figures he will find that he overstated the case when he said the prices were better than they had been for over twenty years; he stated a fact that is not a fact.

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LIB

Charles A. Stewart (Superintendent-General of Indian Affairs; Minister of Mines; Minister of the Interior)

Liberal

Mr. STEWART (Edmonton):

I will be glad if my hon. friend will put me right.

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CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

I have before me the figures from the Department of Trade and Commerce with respect to the last few years only. I know that Mr. Cross's steers brought a higher price in Chicago last year than has been the case in recent years, because of the scarcity of steers in America; the Americans bought the cattle and paid the duty, but what did this government do to help the western cattle men? They received .that higher price because of the law of supply and demand and because the American buyers had to come to Canada for the cattle. If it had ended there it would not have been so very bad, but during the last ten or twelve months there have been exported from this

country a larger number of dairy cows than ever before in the history of the Dominion. From one county in Nova Scotia alone three thousand cows have disappeared, and since this tariff was introduced into congress several representatives of United States firms have been going about in Ontario buying up milch cows with which to replenish the herds of the New England states, and these men say that now they can succeed in their dairy industry because they will not have competition either from Canada, from New Zealand or from anywhere else.

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LIB
CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

They are paying for the cows with real money, not with promises such as were made in Weyburn last week by the hon. member. Before that they were paying for the milk and cream which now they are not allowed to do, because after the 14th day of this month there will be in existence a tariff which will prevent milk and cream from entering the United States; that will affect Ontario and Quebec, and other sections of this Dominion. Now, thanks to the action being taken by the congress of the United States, they will have the American market for themselves, and they are buying our cows in order to furnish the milk and cream for that market.

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LIB-PRO

John Livingstone Brown

Liberal Progressive

Mr. BROWN:

We will keep on raising cows and sell them at a good price.

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CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

We have 101,000 fewer cows in Canada to-day than we had a few years ago, according to the figures supplied by the Department of Trade and Commerce. That is how you are raising cows, and while the United States is raising tariffs-

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?

An hon. MEMBER:

We are raising cows.

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?

Some hon. MEMBERS:

Oh, oh.

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CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

We are not raising cows; while they are raising tariffs we are not raising cows.

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Some hon. MEMBERS:

Oh, oh.

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CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

It seems to be a great

joke to the hon. gentlemen when they consider the fact that we have 101,000 fewer cows this year than we had last; it seems to be a great joke to the hon. gentlemen when they realize that the American tariff on milk and cream has been increased 50 per cent; it seems to be a great joke to them that the Canadian farmers who were dependent upon the markets of New England and New York have been deprived of those markets; it seems to be a great joke to them that cows are

Fiscal Policy-Mr. Bennett

being bought and sent to the New England states; it seems to ibe a great joke to them that cows are being bought in Ontario and shipped to the United States to supply milk and butter to the American peoplle; but it is not a joke to the people of Canada. It may be a joke to the (hon. gentlemen opposite but it is not a joke to our people.

Having thus indicated what the effects have been, we are now confronted with a new measure, a measure which has been introduced into the House of Representatives of the United States and forwarded to the Senate with some amendments for further consideration. Need I point out the effect of that measure? Need I point out what the effect will be upon the farmers of this country? Need I indicate that it means a prohibitive tariff against Canadian wheat, flour, cattle, sheep and potatoes? I hold in my hand the measure as it left the House of Representatives. The first two hundred pages deal with this new tariff legislation. The free list commences at page 211, but it will be seen that it is a list of produots which iare either raw materials or partly processed goods, or manufactured goods of which the United States has practically a producing monopoly and in which we cannot compete. Our copper, our asbestos, our gypsum -where is the hon. gentleman from Hants-Kings (Mr. Ilsley)?-are to be taken into the United States free from duties or import tolls and fabricated in order to give employment to a quarter, a half or a million workmen who in turn will be supplied with butter, milk and dairy products by the men who purchased cows in Canada, while the Canadians denuded of their natural resources see their raw materials flowing into the United States to be fabricated by the labour of American citizens. I commend to the hon. member for Lisgar (Mr. Brown) the careful perusal of that tariff measure as indicating the policy of the United States in protecting its own people.

But there was another effect. As I have said, we bad a sudden decrease in the value of our goods exported to the United States. I have the detailed figures here but it would hardly be fair to take up the time of the house in repeating them. Not only did it lessen the exports from this country to the United States; not only did it improve the export of goods from the United States into Canada because of the reduction of duties, by this government until our importations from the republic have reached the large figure of (5868,000,000-an increase from $515,000,000 in 1922 to $868,000,000, in 1928, or an increase of over $350,000,000-not only have we increased our imports, but we have done more than that. Our men and women, unable to find employment in this country through the operations of the Fordney-McCumber tariff, 'have been forced to follow our raw and partly fabricated materials to the United States to find jobs in that country which could not be obtained at home. Let us have no misunderstanding about this matter. I have the figures which have been classified by the immigration authorities of the United States of America. In the year ending June 30, 1922, only 46,465 Canadians went to the United States; the next year, as a direct result of that tariff, 115,635 people went to the south from Canada; in 1924, when the full operation of the Fordney-McCumber tariff was apparent, we sent to the United States of America 200,834 Canadians; in 1925 the migration was 102,496; in 1926 it was 91,786; in 1927 it was 81,982; and for the year ending December 31 last the figure was 73,605. Why this steady diminution in numbers during the last few years? Because we had exhausted the available source in the years which had preceded. That is the reason. Do the hon. gentlemen realize the significance of those figures? Do they realize the relation between cause and effect? We have the Fordney-McCumber tariff, the diminution of exports, to the United States, the increase of imports, the lack of employment and the increase in the exportation of men and women from this country to find occupations in another country in fabricating Canadian raw materials, which occupation was denied them at home through the action of this government. Consider the type of men and women who have been forced to leave this country. In 1922 we sent out 1,757 of the professional class; in 1923, 3,100; in 1924, 5,385; and last year the number was 3,884. In skilled labour and skilled artisans we sent out 18,730 last year and 41,345 in 1924. When we consider farm labourers, farmers, labourers, servants and draymen, the same story is told. Most of those who left the country were under the age of forty-five years.

Taking into consideration these figures and their relation to cause and effect, most Canadians hoped that confronted with a new problem affecting our very economic existence, confronted with this new tariff measure, just when we were showing signs of recovery from the Fordney-McCumber tariff, Canada would have had a clear policy outlined by the government of the day. It was thought that the leaders in the political life of the country, the leaders of the government, the leaders of the Liberal party would have indicated some policy with which to meet such a crucial situation as now confronts us. What happened? Our friends to the south merrily pursued their way, the new tariff bill was in

Fiscal Policy-Mr. Bennett

troduced and has gone to the senate and the effect of that bill upon the cattle industry of the west will be that those who ship their cattle to Chicago will find themselves handicapped in some instances to the extent of $20 per head. What has the government done about it? What are they going to do about it?

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Jonathan Joseph Merner

An Ihon. MEMBER:

What is the senate

going to do?

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CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

It will do what it has

always done, increase the tariff against us as a competing country.

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LIB
CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

When the electors of

Saskatchewan get an opportunity once more they will indicate what they will do with respect to dairy products.

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CON
CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

They little know the

men from the west; it would take more than that to hold the hon. member for Weyburn (Mr. Young) for even a half minute.

What has been the effect upon this country? I have indicated the effect upon the imports and the exports of materials, other than human, and upon the man and woman power [DOT]of Canada. But there is another effect. It has been assumed that we are prosperous because we have such a large purchasing power by reason of our great crops. We have been fallaciously assuming, because we produced and sold $550,000,000 worth of grain and grain products during the last twelve months, between $200,000,000 and $300,000,000 worth of forest products, and about $200,000,000 worth of metal and mineral products, that with such great purchasing power we are prosperous, when we are with this money buying from the people of the United States what we should to a large extent be making at home.

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June 11, 1929