My hon. friend says,
"Therein lies the danger." What are we in Canada, as part of the British empire, doing to hold our place of leadership in the world's greatest theatre of potential development and trouble, the Pacific ocean? We have in British Columbia and Alberta two of the richest provinces in the dominion. The Canadian section of the north Pacific is richer in natural resources than are Australia and New Zealand combined. What are we doing to fulfil our responsibility on the Pacific ocean? We should realize what is being done by the motherland in Singapore and Hongkong and by our sister dominions in the antipodes and do likewise. But all we do is to reduce a rather niggardly subsidy that should be increased to encourage development on the Pacific. That kind of economy is not going to help the Minister of Finance to gather the taxes necessary to meet the obligations of the dominion. It is not going to help the cities of Vancouver, Prince Rupert and Victoria to gather the taxes necessary to meet their municipal obligations. It is not going to help British Columbia and Alberta to distribute
their grain, lumber, minerals and innumerable other products to Pacific ocean markets. These products should be flowing into these markets in much greater volume than they are at the present time and this volume will not be increased until this country recognizes that it must maintain not only an internal but an external transportation service to all the markets of the world.
I appreciate that these are times of great difficulty, but it seems rather extraordinary that a nation like Japan, with fewer resources than the dominion, or a country like Great Britain, with fewer resources than we have, can find the money and the means to build and develop a shipping service for commerce and at the same time maintain a naval program costing far more than its ocean shipping service. We in Canada have no naval service to maintain and yet we cannot continue to pay a niggardly subsidy for the development of^ our shipping services. Just recently the shipping service of Great Britain was recognized as being in need of assistance and an extensive program of subsidies was brought into effect.
I should like to point out one other matter to the committee. Japan has adopted another technique; she has appropriated to herself that of Great Britain in establishing protectorates over Egypt and India by establishing control over Korea, It is not a question of what Japan may do to-morrow; we know what she has done already in the way of expansion. Unquestionably she is moved to establish the government in Manchuria, and she has now arrived at the point where she can establish a measure of authority over northern China. She has devised a form of Monroe doctrine and has sufficient authority to say to London that she will not approve a sterling loan to the Nanking government. We in western Canada feel that there are great opportunities as well as great responsibilities for the empire on the Pacific ocean. These opportunities and responsibilities are not confined to western Canada; they are not confined to the dominion as a whole; they apply to Canada as a nation and as one of the members of the commonwealth of nations known as the British empire. We should not overlook the fact that there are only about 70 millions of people of British extraction in the 500 millions of people who make up this empire. The position of leadership which the people of the British empire have held in a world of 2,000 million people is something that has been challenged before, is being challenged to-day and will be challenged in the future.
If in our desire for economy we allow ourselves to be bound by the outworn, impossible, impractical and absurd conventions of orthodox economy and orthodox finance, which have been abandoned by every country that appreciates the future, then having put the wealth of our nation in pawn, we are now sacrificing the possibilities of progress to pay the pawnbrokers' exactions. It may be that this is the way in which we are going to manage the currency and credit of this nation so that it may be issued in terms of public need. But if we are going to sacrifice trade on the Pacific ocean in the name of economy, we are going to repudiate the most important promise that ever was made by any government to the people of a nation, namely, that currency and credit would be created and issued ini terms of public need. The kind of economy involved in this reduction, will prove to be a ghastly expense to the people of Canada, and it is not the kind of economy that .they expected they were going to receive after the last general election.