Correspondence
A LETTER FROM MONTREAL. [To the Editor of the SPECTATOR.] SIR,—The conviction which is rapidly growing in the minds of Canadians that something is going to be done about increasing Canada's naval forces comes as a good deal of a surprise. There is no political advantage to be made in Canada out of any such action. The only explanation which presents itself to the average Canadian mind is that the Canadian Prime Minister must have accepted certain moral obligations imposed on him as a quid pro quo for the surprisingly frank recognition of Dominion national status accorded at the Imperial Conference. This is, of course, the kind of interpre- tation always placed upon any military or naval expenditure proposals by the ultra-Nationalist elements in all parts of Canada. Nevertheless there are at the moment some diffi- culties in the way of serious proposals for the enlargement of the Canadian navy, and it would be a grave mistake to rush them forward with undue haste.
One factor only, so far as the internal affairs of Canada are concerned, seems to suggest early action. That factor is the parlous condition of the British Empire Steel Company and of industrial activity in the Maritime Provinces. The traditional Liberal policy in Canada regarding the navy is the gradual building up of a naval construction industry in the Dominion. That policy came to nothing in the days before the War, partly because the Liberal Party was defeated on other issues (in an undoubted attempt to avoid the discussion of that one), partly because of the general conviction that the policy would then be too slow in fruition to meet the urgent needs of the time ; but it is much stronger in public esteem now than it was .then.. The amazing development of the munitions industry in Canada during the War has increased the confidence of Canadians in their own economic po*ers. One suspects that they are now quite ready to believe that Canada can learn to build even vessels of war without paying a ruinous price for the lesson. The Maritime Provinces, the obvious place for the development of such an industry, are in urgent need of sonic kind of stimulation ; and their leading industrial corporation, the British Empire Steel Company, is struggling desperately to avoid bankruptcy in the sole hope of being rescued by some form of governmental support. " Keep Nova' Scotia in the Confederation by giving her a warship industry " might not be a bad slogan in the sixtieth year of Confederation's history; Meanwhile, however, there are tremendous economic arguments in favour of delay. Canada is to-day probably the second most prosperous country in the world, headed only by the United States.' In spite of that prosperity, she is not increasing as she ought and needs to increase in population and productive power. The reason for this is very simple. Canada is geographically contiguous to the United States, the most high-waged country in the world, and her people, alone among the mobile peoples of the world (for the Mexicans, who share the privilege, do not migrate), enjoy the right of free access to the Republic without limitation of quota. In this situation, the whole Canadian population is subjected to' a tremendous magnetic influence drawing towards the larger and richer country ; and nothing but the preservation of a standard of living at least closely approximating to that of the United States can possibly keep Canada from the loSs of her native population.
It is idle to pretend that national sentiment can at present, even among native Canadians, be a strong factor in counter- vailing this magnetism. If national sentiment is not strong enough to keep Irishmen from migrating in large numbers to Scotland and England, it will certainly not keep Canadians from migrating to the United States. There are immense Canadian colonies in every important American city, and no non-American nationality blends as readily into the higher groups of the American population as does the Canadian. Of the children born in the United States in 1922 of Canadian mothers, over one-half had American fathers, a higher propor. tion than in the case of the United' Kingdom mothers, and vastly higher than in any other nationality.
The Canadian has all the characteristics which have made the American worker take so kindly to the high-wage and high-production policy of American employers and employees ; and the moment he enters the States he steps into all the advantages enjoyed by what is to all intents and purposes a highly-protected class.
But Canada is not yet in a position to throw a cordon of immigration officers around her body of existing workers, and train the threatening guns of a hostile Ellis Island upon all who dare to seek entry to the privileged shores. The Canadian worker therefore has still to compete to some extent with new immigrant labour, and his wage-scale, except in the most closely unionized industries, is necessarily affected thereby. Even if he were in a closed labour market and were in a position to enforce a high-wage policy as American labour did in 1919-22, it is doubtful whether Canadian industry could develop a corresponding degree of efficiency—not from any technical weakness, but because of the sparse population and consequent high freight costs of the country, the comparatively had distribution of its natural resources, and also the burden of a War debt resulting from four years instead of one of belligerent activity.
It is surely not surprising if in these circumstances the demand for reduction of taxation in Canada, and for the enforcement of the most rigid economy in all new and controllable expendi- ture, is general and vociferous:. Canadians are pretty sure to ask concerning all governmental expenditures : What will they bring in in. dollars and cents next year or the year after 1 In the case of the navy, the answer is necessarily vague and indirect. It is true that the Conservative Opposition can hardly take the position of flatly opposing expenditure on any naval project, but they will doubtless make what capital they can out of attacking any project Mr. King may propose as extravagant and wasteful. They have at present only temporary leader andd-very little sense of the direction in which they want tu be led.; it may be that that is an additional
reason for Mr. King's tackling the question now instead of letting it wait.—I am, Sir, Ike.,
A CANADIAN CORRESPONDENT.
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