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 Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
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 Brief Contents

Preface xxi
About the Authors xxv
Chapter 1 Data and Statistics 1
Chapter 2 Descriptive Statistics: Tabular and
Graphical Displays 33
Chapter 3  Descriptive Statistics: Numerical Measures 105
Chapter 4 Introduction to Probability 176
Chapter 5 Discrete Probability Distributions 222
Chapter 6 Continuous Probability Distributions 263
Chapter 7 Sampling and Sampling Distributions 296
Chapter 8 Interval Estimation 335
Chapter 9 Hypothesis Tests 375
Chapter 10 Comparisons Involving Means, Experimental Design, and
Analysis of Variance 424
Chapter 11  Comparisons Involving Proportions and a Test of
Independence 481
Chapter 12 Simple Linear Regression 520
Chapter 13 Multiple Regression 588
Appendix A References and Bibliography 639
Appendix B Tables 640
Appendix C Summation Notation online only
Appendix D  Self-Test Solutions and Answers to Even-Numbered
Exercises 667
Appendix E Microsoft Excel 2013 and Tools for Statistical
Analysis 706
Appendix F Computing p-Values Using Minitab and Excel 718
Index 722

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 Contents

Preface xxi
About the Authors xxv

Chapter 1 Data and Statistics 1

Statistics in Practice: Bloomberg Businessweek 2
1.1 Applications in Business and Economics 3
Accounting 3
Finance 4
Marketing 4
Production 4
Economics 4
Information Systems 5
1.2 Data 5
Elements, Variables, and Observations 5
Scales of Measurement 7
Categorical and Quantitative Data 8
Cross-Sectional and Time Series Data 8
1.3 Data Sources 11
Existing Sources 11
Statistical Studies 12
Data Acquisition Errors 14
1.4 Descriptive Statistics 14
1.5 Statistical Inference 16
1.6 Computers and Statistical Analysis 18
1.7 Data Mining 18
1.8 Ethical Guidelines for Statistical Practice 19
Summary 21
Glossary 21
Supplementary Exercises 22
Appendix An Introduction to StatTools 29

Chapter 2 Descriptive Statistics: Tabular and Graphical

Displays 33
Statistics in Practice: Colgate-Palmolive Company 34
2.1 Summarizing Data for a Categorical Variable 35
Frequency Distribution 35

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x Contents

Relative Frequency and Percent Frequency Distributions 36

Bar Charts and Pie Charts 36
2.2 Summarizing Data for a Quantitative Variable 42
Frequency Distribution 42
Relative Frequency and Percent Frequency Distributions 43
Dot Plot 44
Histogram 44
Cumulative Distributions 46
Stem-and-Leaf Display 47
2.3 Summarizing Data for Two Variables Using Tables 55
Crosstabulation 55
Simpson’s Paradox 58
2.4 Summarizing Data for Two Variables Using Graphical Displays 64
Scatter Diagram and Trendline 64
Side-by-Side and Stacked Bar Charts 65
2.5 Data Visualization: Best Practices in Creating Effective
Graphical Displays 70
Creating Effective Graphical Displays 71
Choosing the Type of Graphical Display 72
Data Dashboards 72
Data Visualization in Practice: Cincinnati Zoo and
Botanical Garden 74
Summary 77
Glossary 78
Key Formulas 79
Supplementary Exercises 79
Case Problem 1 Pelican Stores 84
Case Problem 2 Motion Picture Industry 85
Appendix 2.1 Using Minitab for Tabular and Graphical Presentations 86
Appendix 2.2 Using Excel for Tabular and Graphical Presentations 89
Appendix 2.3 Using StatTools for Tabular and Graphical Presentations 103

Chapter 3 Descriptive Statistics: Numerical Measures 105

Statistics in Practice: Small Fry Design 106
3.1 Measures of Location 107
Mean 107
Weighted Mean 109
Median 110
Geometric Mean 112
Mode 113
Percentiles 114
Quartiles 115

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 Contents xi

3.2 Measures of Variability 122

Range 122
Interquartile Range 123
Variance 123
Standard Deviation 124
Coefficient of Variation 125
3.3 Measures of Distribution Shape, Relative Location, and Detecting
Outliers 129
Distribution Shape 129
z-Scores 129
Chebyshev’s Theorem 131
Empirical Rule 132
Detecting Outliers 133
3.4 Five-Number Summaries and Box Plots 136
Five-Number Summary 137
Box Plot 137
3.5 Measures of Association Between Two Variables 141
Covariance 142
Interpretation of the Covariance 144
Correlation Coefficient 146
Interpretation of the Correlation Coefficient 147
3.6 Data Dashboards: Adding Numerical Measures to Improve
Effectiveness 151
Summary 155
Glossary 155
Key Formulas 156
Supplementary Exercises 158
Case Problem 1 Pelican Stores 163
Case Problem 2 Motion Picture Industry 164
Case Problem 3 Business Schools of Asia-Pacific 165
Case Problem 4 Heavenly Chocolates Website Transactions 167
Case Problem 5 African Elephant Populations 168
Appendix 3.1 Descriptive Statistics Using Minitab 169
Appendix 3.2 Descriptive Statistics Using Excel 171
Appendix 3.3 Descriptive Statistics Using StatTools 174

Chapter 4 Introduction to Probability 176

Statistics in Practice: National Aeronautics and Space Administration 177
4.1 Experiments, Counting Rules, and Assigning Probabilities 178
Counting Rules, Combinations, and Permutations 179
Assigning Probabilities 183
Probabilities for the KP&L Project 185

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xii Contents

4.2 Events and Their Probabilities 188

4.3 Some Basic Relationships of Probability 192
Complement of an Event 192
Addition Law 193
4.4 Conditional Probability 199
Independent Events 202
Multiplication Law 202
4.5 Bayes’ Theorem 207
Tabular Approach 210
Summary 213
Glossary 213
Key Formulas 214
Supplementary Exercises 215
Case Problem Hamilton County Judges 219

Chapter 5 Discrete Probability Distributions 222

Statistics in Practice: Citibank 223
5.1 Random Variables 224
Discrete Random Variables 224
Continuous Random Variables 224
5.2 Developing Discrete Probability Distributions 227
5.3 Expected Value and Variance 232
Expected Value 232
Variance 232
5.4 Binomial Probability Distribution 237
A Binomial Experiment 237
Martin Clothing Store Problem 239
Using Tables of Binomial Probabilities 243
Expected Value and Variance for the Binomial Distribution 244
5.5 Poisson Probability Distribution 248
An Example Involving Time Intervals 249
An Example Involving Length or Distance Intervals 249
5.6 Hypergeometric Probability Distribution 252
Summary 255
Glossary 256
Key Formulas 257
Supplementary Exercises 258
Appendix 5.1 Discrete Probability Distributions with Minitab 261
Appendix 5.2 Discrete Probability Distributions with Excel 261

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 Contents xiii

Chapter 6 Continuous Probability Distributions 263

Statistics in Practice: Procter & Gamble 264
6.1 Uniform Probability Distribution 265
Area as a Measure of Probability 266
6.2 Normal Probability Distribution 269
Normal Curve 269
Standard Normal Probability Distribution 271
Computing Probabilities for Any Normal Probability Distribution 276
Grear Tire Company Problem 277
6.3 Normal Approximation of Binomial Probabilities 281
6.4 Exponential Probability Distribution 285
Computing Probabilities for the Exponential Distribution 285
Relationship Between the Poisson and Exponential Distributions 286
Summary 288
Glossary 289
Key Formulas 289
Supplementary Exercises 289
Case Problem Specialty Toys 293
Appendix 6.1 Continuous Probability Distributions with Minitab 294
Appendix 6.2 Continuous Probability Distributions with Excel 295

Chapter 7 Sampling and Sampling Distributions 296

Statistics in Practice: Meadwestvaco Corporation 297
7.1 The Electronics Associates Sampling Problem 298
7.2 Selecting a Sample 299
Sampling from a Finite Population 299
Sampling from an Infinite Population 301
7.3 Point Estimation 304
Practical Advice 306
7.4 Introduction to Sampling Distributions 308
7.5 Sampling Distribution of x 310
Expected Value of x 310
Standard Deviation of x 311
Form of the Sampling Distribution of x 312
Sampling Distribution of x for the EAI Problem 314
Practical Value of the Sampling Distribution of x 315
Relationship Between the Sample Size and the
Sampling Distribution of x 316
7.6 Sampling Distribution of p 320
Expected Value of p 321
Standard Deviation of p 321

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xiv Contents

Form of the Sampling Distribution of p 322

Practical Value of the Sampling Distribution of p 322
7.7 Other Sampling Methods 326
Stratified Random Sampling 326
Cluster Sampling 327
Systematic Sampling 327
Convenience Sampling 327
Judgment Sampling 328
Summary 328
Glossary 329
Key Formulas 330
Supplementary Exercises 330
Appendix 7.1 Random Sampling with Minitab 333
Appendix 7.2 Random Sampling with Excel 333
Appendix 7.3 Random Sampling with StatTools 334

Chapter 8 Interval Estimation 335

Statistics in Practice: Food Lion 336
8.1 Population Mean: σ Known 337
Margin of Error and the Interval Estimate 337
Practical Advice 341
8.2 Population Mean: σ Unknown 343
Margin of Error and the Interval Estimate 344
Practical Advice 347
Using a Small Sample 347
Summary of Interval Estimation Procedures 349
8.3 Determining the Sample Size 352
8.4 Population Proportion 355
Determining the Sample Size 357
Summary 360
Glossary 361
Key Formulas 362
Supplementary Exercises 362
Case Problem 1 Young Professional Magazine 365
Case Problem 2 Gulf Real Estate Properties 366
Case Problem 3 Metropolitan Research, Inc. 368
Appendix 8.1 Interval Estimation with Minitab 368
Appendix 8.2 Interval Estimation Using Excel 370
Appendix 8.3 Interval Estimation with StatTools 373

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 Contents xv

Chapter 9 Hypothesis Tests 375

Statistics in Practice: John Morrell & Company 376
9.1 Developing Null and Alternative Hypotheses 377
The Alternative Hypothesis as a Research Hypothesis 377
The Null Hypothesis as an Assumption to Be Challenged 378
Summary of Forms for Null and Alternative Hypotheses 379
9.2 Type I and Type II Errors 380
9.3 Population Mean: σ Known 383
One-Tailed Test 383
Two-Tailed Test 389
Summary and Practical Advice 391
Relationship Between Interval Estimation and Hypothesis Testing 393
9.4 Population Mean: σ Unknown 398
One-Tailed Test 398
Two-Tailed Test 399
Summary and Practical Advice 401
9.5 Population Proportion 404
Summary 406
Summary 409
Glossary 410
Key Formulas 410
Supplementary Exercises 410
Case Problem 1 Quality Associates, Inc. 413
Case Problem 2 
Ethical Behavior of Business Students at Bayview
University 415
Appendix 9.1 Hypothesis Testing with Minitab 416
Appendix 9.2 Hypothesis Testing with Excel 418
Appendix 9.3 Hypothesis Testing with StatTools 422

Chapter 10 Comparisons Involving Means, Experimental Design,

and Analysis of Variance 424
Statistics in Practice: U.S. Food and Drug Administration 425
10.1 Inferences About the Difference Between Two Population Means:
σ1 and σ2 Known 426
Interval Estimation of µ1 2 µ2 426
Hypothesis Tests About µ1 2 µ2 429
Practical Advice 430
10.2 Inferences About the Difference Between Two Population Means:
σ1 and σ2 Unknown 433
Interval Estimation of µ1 2 µ2 433

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xvi Contents

Hypothesis Tests About µ1 2 µ2 435

Practical Advice 437
10.3 Inferences About the Difference Between Two Population Means:
Matched Samples 441
10.4 An Introduction to Experimental Design and Analysis of Variance 447
Data Collection 448
Assumptions for Analysis of Variance 449
Analysis of Variance: A Conceptual Overview 449
10.5 Analysis of Variance and the Completely Randomized Design 452
Between-Treatments Estimate of Population Variance 453
Within-Treatments Estimate of Population Variance 454
Comparing the Variance Estimates: The F Test 455
ANOVA Table 456
Computer Results for Analysis of Variance 457
Testing for the Equality of k Population Means: An
Observational Study 459
Summary 463
Glossary 464
Key Formulas 464
Supplementary Exercises 466
Case Problem 1 Par, Inc. 471
Case Problem 2 Wentworth Medical Center 472
Case Problem 3 Compensation for Sales Professionals 473
Appendix 10.1 Inferences About Two Populations Using Minitab 474
Appendix 10.2 Analysis of Variance with Minitab 475
Appendix 10.3 Inferences About Two Populations Using Excel 475
Appendix 10.4 Analysis of Variance with Excel 477
Appendix 10.5 Inferences About Two Populations Using StatTools 478
Appendix 10.6 Analysis of a Completely Randomized Design Using
StatTools 480

Chapter 11 
Comparisons Involving Proportions and a Test of
Independence 481
Statistics in Practice: United Way 482
11.1 Inferences About the Difference Between Two Population
Proportions 483
Interval Estimation of p1 2 p2 483
Hypothesis Tests About p1 2 p2 485
11.2 Testing the Equality of Population Proportions for
Three or More Populations 489
A Multiple Comparison Procedure 495
11.3 Test of Independence 500

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 Contents xvii

Summary 508
Glossary 508
Key Formulas 508
Supplementary Exercises 509
Case Problem 1 A Bipartisan Agenda for Change 514
Appendix 11.1 Inferences About Two Population Proportions Using
Minitab 515
Appendix 11.2 Chi-Square Tests Using Minitab 516
Appendix 11.3 Chi-Square Tests Using Excel 516
Appendix 11.4 Inferences About Two Population Proportions Using
StatTools 518
Appendix 11.5 Chi-Square Tests Using StatTools 519

Chapter 12 
Simple Linear Regression 520
Statistics in Practice: Alliance Data Systems 521
12.1 Simple Linear Regression Model 522
Regression Model and Regression Equation 522
Estimated Regression Equation 523
12.2 Least Squares Method 525
12.3 Coefficient of Determination 536
Correlation Coefficient 539
12.4 Model Assumptions 543
12.5 Testing for Significance 544
Estimate of σ2 544
t Test 546
Confidence Interval for β1 548
F Test 548
Some Cautions About the Interpretation of Significance Tests 550
12.6 Using the Estimated Regression Equation for Estimation
and Prediction 554
Interval Estimation 555
Confidence Interval for the Mean Value of y 555
Prediction Interval for an Individual Value of y 556
12.7 Computer Solution 561
12.8 Residual Analysis: Validating Model Assumptions 565
Residual Plot Against x 566
Residual Plot Against y^ 569
Summary 571
Glossary 572
Key Formulas 572
Supplementary Exercises 574
Case Problem 1 Measuring Stock Market Risk 580

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xviii Contents

Case Problem 2 U.S. Department of Transportation 581

Case Problem 3 Selecting a Point-and-Shoot Digital Camera 581
Case Problem 4 Finding the Best Car Value 583
Appendix 12.1 Regression Analysis with Minitab 584
Appendix 12.2 Regression Analysis with Excel 584
Appendix 12.3 Regression Analysis Using StatTools 587

Chapter 13 Multiple Regression 588

Statistics in Practice: dunnhumby 589
13.1 Multiple Regression Model 590
Regression Model and Regression Equation 590
Estimated Multiple Regression Equation 590
13.2 Least Squares Method 591
An Example: Butler Trucking Company 592
Note on Interpretation of Coefficients 594
13.3 Multiple Coefficient of Determination 600
13.4 Model Assumptions 604
13.5 Testing for Significance 605
F Test 605
t Test 608
Multicollinearity 609
13.6 Using the Estimated Regression Equation for Estimation and
Prediction 612
13.7 Categorical Independent Variables 615
An Example: Johnson Filtration, Inc. 615
Interpreting the Parameters 617
More Complex Categorical Variables 619
Summary 623
Glossary 623
Key Formulas 624
Supplementary Exercises 625
Case Problem 1 Consumer Research, Inc. 631
Case Problem 2 Predicting Winnings for NASCAR Drivers 632
Case Problem 3 Finding the Best Car Value 634
Appendix 13.1 Multiple Regression with Minitab 635
Appendix 13.2 Multiple Regression with Excel 635
Appendix 13.3 Multiple Regression Analysis Using StatTools 636

Appendix A: References and Bibliography 639

Appendix B: Tables 640

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 Contents xix

Appendix C: Summation Notation online only

Appendix D: Self-Test Solutions and Answers to Even-Numbered

Exercises 667

Appendix E: Microsoft Excel 2013 and Tools for Statistical

Analysis 706

Appendix F: Computing p-Values Using Minitab and Excel 718

Index 722

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 Contents xxi

Preface

This text is the 7th edition of ESSENTIALS OF STATISTICS FOR BUSINESS AND
ECONOMICS. With this edition we welcome two eminent scholars to our author team:
Jeffrey D. Camm of the University of Cincinnati and James J. Cochran of Louisiana Tech
University. Both Jeff and Jim are accomplished teachers, researchers, and practitioners in
the fields of ­statistics and business analytics. Jim is a fellow of the American Statistical
Association. You can read more about their accomplishments in the About the Authors sec-
tion that follows this preface. We believe that the addition of Jeff and Jim as our coauthors
will both maintain and improve the effectiveness of Essentials of Statistics for Business
and Economics.
The purpose of Essentials of Statistics for Business and Economics is to give students,
primarily those in the fields of business administration and economics, a conceptual intro-
duction to the field of statistics and its many applications. The text is applications oriented
and written with the needs of the nonmathematician in mind; the mathematical prerequisite
is knowledge of algebra.
Applications of data analysis and statistical methodology are an integral part of the
organization and presentation of the text material. The discussion and development of each
technique is presented in an application setting, with the statistical results providing insights
to decisions and solutions to problems.
Although the book is applications oriented, we have taken care to provide sound meth-
odological development and to use notation that is generally accepted for the topic being
covered. Hence, students will find that this text provides good preparation for the study of
more advanced statistical material. A bibliography to guide further study is included as an
appendix.
The text introduces the student to the software packages of Minitab 16 and M ­ icrosoft®
­Office ­Excel 2013 and emphasizes the role of computer software in the application of ­statistical
analysis. Minitab is illustrated as it is one of the leading statistical software packages for both
­education and statistical practice. Excel is not a statistical software package, but the wide avail-
ability and use of Excel make it important for students to understand the statistical c­ apabilities
of this package. Minitab and Excel procedures are provided in a­ ppendixes so that instructors
have the flexibility of using as much computer emphasis as desired for the course. StatTools,
a commercial Excel add-in developed by Palisade Corporation, extends the range of statisti-
cal options for Excel users. We show how to download and install StatTools in an appendix
to Chapter 1, and most chapters include a chapter appendix that shows the steps required to
­accomplish a statistical procedure using StatTools. We have made the use of StatTools optional
so that instructors who want to teach using only the standard tools available in Excel can do so.

Changes in the Seventh Edition

We appreciate the acceptance and positive response to the previous editions of Essentials of
Statistics for Business and Economics. Accordingly, in making modifications for this new
edition, we have maintained the presentation style and readability of those editions. There
have been many changes made throughout the text to enhance its educational effectiveness.
The most significant changes in the new edition are summarized here.

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xxii Preface

Content Revisions
Descriptive Statistics—Chapters 2 and 3. We have substantially ­revised these

chapters to incorporate new material on data visualization, best practices, and much
more. Chapter 2 has been reorganized to i­nclude new material on side-by-side and
stacked bar charts and a new section has been added on data visualization and best
practices in creating effective displays. Chapter 3 now includes coverage of the
­geometric mean in the section on measures of location. The geometric mean has
many applications in the computation of growth rates for financial ­assets, annual
percentage rates, and so on. Chapter 3 also includes a new section on data dashboards
and how summary statistics can be incorporated to enhance their effectiveness.
Comparisons Involving Proportions and a Test of Independence—Chapter 11.
This chapter has undergone a major revision. We have replaced the section on good-
ness of fit tests with a new section on testing the equality of three or more population
proportions. This section includes a procedure for making multiple comparison tests
between all pairs of population proportions. The section on the test of independence
has been rewritten to clarify that the test concerns the independence of two categori-
cal variables. Revised appendices with step-by-step instructions for Minitab, Excel,
and StatTools are included.
New Case Problems. We have added 7 new case problems to this ­edition; the total
number of cases is 25. Three new descriptive statistics cases have been added to
­Chapters 2 and 3. Four new case problems ­involving regression appear in Chapters 12
and 13. These case problems provide students with the opportunity to analyze larger
data sets and prepare managerial reports based on the results of their analysis.
New Statistics in Practice Applications. Each chapter begins with a Statistics in
Practice vignette that describes an application of the s­ tatistical methodology to be
covered in the chapter. New to this edition is a Statistics in Practice for Chapter 2
describing the use of data dashboards and data visualization at the Cincinnati Zoo.
We have also added a new Statistics in Practice to Chapter 4 describing how a NASA
team used probability to assist the rescue of 33 Chilean miners trapped by a cave-in.
 New Examples and Exercises Based on Real Data. We continue to make a significant
effort to update our text examples and exercises with the most current real data and ref-
erenced sources of statistical information. In this edition, we have added approximately
200 new examples and exercises based on real data and referenced sources. U ­ sing data
from sources also used by The Wall Street Journal, USA Today, Barron’s, and others,
we have drawn from actual studies to develop explanations and to create exercises that
demonstrate the many uses of statistics in business and economics. We believe that the
use of real data helps generate more student interest in the material and enables the
student to learn about both the statistical methodology and its application. The seventh
edition contains over 300 examples and exercises based on real data.

Features and Pedagogy

Authors Anderson, Sweeney, Williams, Camm, and Cochran have continued many of the
features that appeared in previous editions. Important ones for students are noted here.

Methods Exercises and Applications Exercises

The end-of-section exercises are split into two parts, Methods and Applications. The Meth-
ods exercises require students to use the formulas and make the necessary computations.
The Applications exercises require students to use the chapter material in real-world situa-
tions. Thus, students first ­focus on the computational “nuts and bolts” and then move on to
the subtleties of statistical application and interpretation.

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 Preface xxiii

Self Test Exercises

Certain exercises are identified as “Self Test Exercises.” Completely worked-out solu-
tions for these ­exercises are provided in Appendix D. Students can ­attempt the Self Test
­Exercises and immediately check the solution to evaluate their understanding of the con-
cepts ­presented in the chapter.

Margin Annotations and Notes and Comments

Margin annotations that highlight key points and provide additional insights for the student are
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 The destruction of the League would have been useless unless
steps were taken to prevent its revival, and to destroy, if possible,
the League in Canada. Hence the adoption of the name, address,
trade mark, etc., under which to flood Canada with publications
tending to arouse great hostility among our people. This was the
condition in which I found affairs only about ten months after I had
been elected President. The outlook was most discouraging, and
caused a great deal of anxious discussion among the stalwarts in
Toronto. We decided to summon a meeting of our most influential
men to consider the situation, and decide whether we also should
dissolve, or whether we would continue the struggle.
The meeting was held on the 3rd January, 1894, and after full
discussion it was decided to fight on, and with the assistance of Sir
John Lubbock, who had sent a communication to us asking us to co-
operate with him, to endeavour to resuscitate the League in
England.
The ninth annual meeting of the Imperial Federation League in
Canada was held in the Parliament Buildings, Ottawa, on the 29th
May, 1894, and in the notices of motion printed in the circular calling
the meeting was one by Lt.-Col. Wm. O’Brien, M.P., as follows:
Resolved, that the first step towards arriving at a system of
preferential trade within the Empire should be for the Government of
Canada to lower the customs duties now imposed upon goods
imported from the United Kingdom.
And another to the same effect by Rev. Principal George M.
Grant:
Resolved, that this League is of opinion that as a first step
towards arriving at a system of preferential trade within the Empire,
the Government of Canada should lower the Customs duties now
imposed on goods manufactured in and imported from Great Britain.
These notices exactly foreshadowed the policy adopted by Sir
Wilfrid Laurier’s Government in 1897.
 Another resolution was carried to the effect that a delegation
should be elected by the Executive Committee to confer personally
with the City of London Branch and similar organisations, and agree
upon a common course of future action. Accordingly on the 6th
June, 1894, the Executive Committee appointed “Colonel G. T.
Denison President, Larratt W. Smith, Esq., Q.C., LL.D., President
Toronto Branch, George E. Evans, Esq., Hon. Secretary of the League
in Canada, John T. Small, Esq., Hon. Treasurer, H. J. Wickham, Esq.,
Chairman of the Organising Committee, J. L. Hughes, Esq., J. M.
Clark, Esq., and Professor Weldon, M.P., to be the delegation, with
power to add to their number.” Messrs. Clark, Small, and Weldon
were unable to act, and Sir Charles Tupper, then High Commissioner,
Lord Strathcona, and Lt.-Col. Septimus Denison, Secretary and
Treasurer of the London Ontario Branch, were added to the
delegation.
This was the turning point of the movement, and led to the
organisation of the British Empire League and the continuance of the
struggle for Imperial consolidation. The account of this mission, its
work in England, and the subsequent proceedings of the new
League, and the progress of the movement for Imperial Unity during
the succeeding years, will be dealt with in the following chapters.
 CHAPTER XIX

ORGANISATION OF THE BRITISH EMPIRE

LEAGUE

I left for England on the 27th June 1894, arrived in London on

the 9th July, and at once called upon Sir John Lubbock, M.P., now
Lord Avebury. I breakfasted with him on the 13th, when we
thoroughly discussed the whole question. I pressed upon him the
urgent need there was that we should have a head office in England,
and how important the movement was in order to spread and
maintain the Imperial sentiment in Canada. He was most
sympathetic and friendly, and said that if it would be convenient for
us he would gather a number of men favourable to the idea to meet
us at his house a week later, on the 20th July. I wrote to the
members of the delegation, and gathered them the day before at
Lord Strathcona’s rooms on Dover Street, and secured the
attendance of Sir Charles Tupper, who was then High Commissioner
for Canada, and also a member of our League, and we added him to
the committee. We discussed our policy at considerable length, and
arranged to meet at Sir John Lubbock’s in St. James’s Square the
following morning at eleven a.m.
I happened to be breakfasting at the United Service Club that
morning with Lord Roberts and General Nicholson, and Lord Roberts
hearing that I was going to Sir John Lubbock’s, said that he had
been asked to attend the meeting, but had not intended to go. I
prevailed upon him to accompany me.
Sir John Lubbock had a number of gentlemen to meet us, among
whom were Sir Westby Percival, Agent-General for New Zealand, the
Hon. T. A. Brassey, Messrs. C. Freeman Murray, W. Culver James, W.
H. Daw, W. Becket Hill, Ralph Young, H. W. Marcus, and others. Sir
John Lubbock was in the chair and Mr. Freeman Murray was
secretary. As chairman of our deputation, I put our case before the
meeting, following the lines agreed upon at the conference at Lord
Strathcona’s rooms the day before. I spoke for about forty minutes,
and naturally urged very strongly the importance of preferential
trading throughout the Empire, as a practical means of securing a
permanent unity, and I insisted that we should make the
denunciation of the German-Belgian Treaties one of the definite
objects of the League.
The City of London Branch had prepared a programme of a
suggested constitution, which contained nearly all the clauses
afterwards agreed upon as the constitution of the British Empire
League. Our Canadian delegation accepted all their suggestions, but
we insisted on a clause referring to the German and Belgian Treaties.
Our English friends were evidently afraid of the bogey of Free Trade,
and seemed to think that any expressed intention of doing away
with the German and Belgian Treaties would prevent many free
traders from joining the League. I urged our view strongly, and was
ably assisted by speeches from Sir Charles Tupper, Lord Strathcona,
and Sir Westby Percival. Our English friends still held out against us.
At last I said that we had agreed with all they had advocated, had
accepted all their suggestions, but that when we asked what we
considered the most important and necessary point of all, the
denunciation of the German and Belgian Treaties, we were met with
unyielding opposition, that there was no object in continuing the
discussion, and we would go home and report to our League that,
even among our best friends, we could not get any support towards
relieving us of restrictions that should never have been placed upon
us. Mr. Becket Hill seeing the possibility of the meeting proving
abortive, suggested an adjournment for a week. Mr. Herbert Daw
immediately rose, and in a few vigorous sentences changed the
tone. He said that the Canadians had agreed with them in
everything, and that when they urged a very reasonable request
they were not listened to. He said that was an unwise course to
take, and urged that an attempt should be made to meet our views.
Sir John Lubbock then said: “Perhaps I can draw up a clause
which will meet the wishes of our Canadian friends,” and he wrote
out the following clause:
To consider how far it may be possible to modify any laws or
treaties which impede freedom of action in the making of reciprocal
trade arrangements between the United Kingdom and the colonies,
or between any two or more British Colonies or possessions.
I said at once that we would accept that clause, provided it was
understood that we of the Canadian Branch should have the right to
agitate for that which we thought was the best, and the only way,
probably, of unifying the empire. We claimed we were to have the
right to work for the denunciation of the treaties with the view of
securing preferential tariffs around the Empire, and that in so doing
we were not to be considered as violating the constitution of the
League, although the central council was not to be responsible for
the views of the Canadian Branch. That settled the matter at once,
and the League was formed. Difficulty was found in deciding upon a
name. We wished to retain the old name, but the arguments in
favour of a change were so great that we yielded to the wishes of
our English brethren. A number of names were suggested, most of
them long and explanatory, when Mr. James L. Hughes suggested
that as the object was the maintenance of the British Empire why
not call the League simply “The British Empire League.” This
appealed to all, and it was at once adopted, so that Mr. Hughes was
the godfather of the League.
It was then arranged that a meeting of the old City of London
branch of the Imperial Federation League should be called at the
London Chamber of Commerce. It was held on the 26th July, when
several of us addressed the meeting, and an organising committee
was formed for undertaking the work of the reconstruction of the
League. It consisted of the Canadian deputation and the following
gentlemen: The Earl of Derby, Earl of Jersey, Earl of Onslow, Earl of
Dunraven, Field Marshal Lord Roberts of Kandahar, Lord Brassey,
Lord Tennyson, Sir John Lubbock, Bart., M.P., Sir Algernon Borthwick,
Bart., M.P., Sir Charles Tupper, Bart., Sir Westby Percival, Sir Fred
Young, Major General Ralph Young, Lieut.-Colonel P. R. Innes, Dr. W.
Culver James, Messrs. F. Faithful Begg, M.P., W. Herbert Daw, E. M.
Headley, W. Becket Hill, Neville Lubbock, Herman W. Marcus, John F.
Taylor, and Freeman Murray.
Addressing this meeting at some length, I endeavoured to show
the importance of settling the North-West, as well as other portions
of Canada, with a population of British people if possible, who would
grow grain to supply the wants of the mother country. I stated that a
preferential tariff against the United States would keep our people in
Canada, and would cause settlers from Great Britain to make their
homes in that country; and that in a very little time the North-West
Territories would be occupied by a large population of loyal people,
who would be devoted to the Empire, and would be able to supply
all the bread-stuffs that England would require. In order to impress
that upon the audience, I drew their attention to the fact that if
England was engaged in a war with continental countries, say, for
instance, Russia and France, it would cut off the supply of wheat
from the former country; and that if hostilities were also to break out
between the United States and England, it would confine the mother
country’s wheat supply to India, Australia, and Canada; that the
distance was so great that it would take an enormous naval force to
keep the sea routes open, and that these would be constantly liable
to attack and interruption unless England had absolute command of
the sea.
I then went on to say that I was aware that there was a strong
feeling in England that there was no possibility of a war with the
United States, but warned the meeting that they must not rely upon
that belief, and I quoted several facts to prove my view.
 Within eighteen months the Venezuelan Message of President
Cleveland, followed as it was by the warlike approving messages to
Mr. Cleveland from 42 out of the 45 Governors of States, proved how
easily trouble might arise.
Mr. James L. Hughes also addressed this meeting, and we were
strongly supported by a member of the Fair Trade League, who used
some powerful arguments in favour of some steps being taken to
improve the position of the “Food Supply.” He was answered by Mr.
Harold Cox, Secretary of the Cobden Club, who said that my
proposition was one that would abolish Free Trade, and substitute
Protection for it. In spite of his appeal to the intense prejudice of the
British people, at that time in favour of Free Trade, the idea of an
Imperial Preferential tariff seemed to have considerable weight upon
those who heard it expounded.
Lord Tennyson was present at the meeting and spoke to me
afterwards, approving of much of my speech, but regretting I had
spoken so freely about the United States. I replied that the very fact
of his criticism was a strong proof of the necessity for my speaking
out, and told him I would send him some publications which would
enable him the better to appreciate our view. This I did. He has
been a strong supporter of the British Empire League and acted on
the Executive Committee from the first.
I addressed a large meeting at Hawick, Scotland, on the 17th
August, 1894, and for the first time in Scotland advocated our
Canadian policy. My friend Charles John Wilson organised the
meeting. I spoke in much the same strain as in London. Although my
remarks were well received it was evident that free trade opinion
was paramount, and that I did not have any direct support in the
meeting. One member of the Town Council told me at the close that,
while they were all free traders, yet I had given them food for
thought for some time. At the Congress of Chambers of Commerce
of the Empire held in London in July, 1906, my friend Mr. Charles
John Wilson, who spoke at my meeting in Hawick in 1894, was a
representative of the South of Scotland Chamber of Commerce, and
made a powerful speech in favour of the Canadian resolution which
endorsed Mr. Chamberlain’s policy of preferential tariff, and his
Chamber of Commerce voted for it.
The organising committee appointed at the London meeting took
a considerable time in arranging the details. Lord Avebury told me
that he had considerable difficulty in getting a prominent
outstanding man as President, and that the negotiations took up a
great deal of time. He wished to secure the Duke of Devonshire, and
he being very busy, could not give much time, and only agreed at
length to take the position on the understanding that Sir Robert
Herbert who, for many years had been the Permanent Under
Secretary for the Colonies, and was about to be superannuated,
should undertake to act as chairman of the Executive Committee and
attend to the management of the League.
When all was arranged, a large meeting was held at the Mansion
House on the 27th January, 1896, the Lord Mayor in the chair, and
then the British Empire League was formally inaugurated, the
constitution adopted, and a resolution, moved by Lord Avebury,
carried:
That the attention of our fellow-countrymen throughout the
Empire is invited to the recent establishment of the British Empire
League, and their support by membership and subscription is
strongly recommended.
It may be mentioned that when our deputation reported to the
League in Canada the arrangements we had agreed to, it was
suggested that an addition should be made to the constitution by
the insertion of what is now the second clause of it. “It shall be the
primary object of the League to secure the permanent unity of the
Empire.” This, of course, had been well understood, but the
Canadian League desired it to be placed in the constitution in formal
terms. The request was made to the committee in England, and it
was at once acceded to.
 A special general meeting of the Imperial Federation League in
Canada was held in the Tower Room, House of Commons, Ottawa,
on the 4th March, 1896, to consider the annual report of the
Executive Committee, and the recommendation therein contained,
that the League should change its name to that of the British Empire
League in Canada, and affiliate with the British Empire League.
As President of the League I occupied the chair. Among those
present were: Sir Charles Tupper, Bart., G.C.M.G.; Sir Donald Smith,
K.C.M.G.; the Hon. Arthur R. Dickey, M.P.; Senators W. J. Almon, C.
A. Boulton, John Dobson, Thomas McKay, Clarence Primrose, W. D.
Perley, and Josiah Wood. The following members of Parliament: W.
H. Bennett, G. F. Baird, T. D. Craig, G. R. R. Cockburn, Henry Cargill,
George E. Casey, F. M. Carpenter, G. E. Corbould, Dr. Hugh Cameron,
Emerson Coatsworth, D. W. Davis, Eugene A. Dyer, Thomas Earle,
Charles Fairburn, W. T. Hodgins, A. Haslam, Major S. Hughes, David
Henderson, Charles E. Kaulbach, J. B. Mills, A. C. Macdonald, J. H.
Marshall, James Masson, J. A. Mara, W. F. Maclean, D’Alton
McCarthy, G. V. McInerney, John McLean, H. F. McDougall, Major R.
R. Maclennan, Alex. McNeill, W. B. Northrup, Lt.-Col. O’Brien, H. A.
Powell, A. W. Ross, Dr. Thomas Sproule, J. Stevenson, William Smith,
Lt.-Col. Tisdale, Thomas Temple, Lt.-Col. Tyrwhitt, Dr. N. W. White,
R. C. Weldon, R. D. Wilmot, W. H. Hutchins, Major McGillivray,
William Stubbs, J. G. Chesley, A. B. Ingram; and Messrs. S. J.
Alexander, Sandford Fleming, C.M.G., N. F. Hagel, Q.C., James
Johnston, Thomas Macfarlane, Archibald McGoun, C. C. McCaul,
Q.C., Joseph Nelson, J. C. Pope, E. E. Sheppard, J. G. Alexander, J.
Coates, Joseph Nelson, McLeod Stewart, R. W. Shannon, Major
Sherwood, Major Clark, Dr. Kingsford, Dr. Beattie Nesbitt, Prof.
Robertson, Dr. Rholston, Lt.-Col. Scoble, Captain Smith, George E.
Evans (Hon. Secretary), and others.
I moved the adoption of the annual report, which contained a
copy of the constitution of the British Empire League, and
recommended that the Canadian League be affiliated with that body.
As to the question of changing the name of the League, I said:
 That the Canadian delegation had urged the retention of the
name Imperial Federation League, but the arguments in favour of
the change were so great that we felt we had to yield to the wishes
of our English brethren. The word Federation was objected to by
some, and there is no doubt that to attempt to prepare a fixed and
written constitution for a federated Empire, with all its divergent
interests, would be a very difficult thing to do. If a dozen of the very
ablest men in all the Empire were to devote any amount of time and
their greatest energies to prepare a scheme for such a federation,
and succeeded in making one practical and workable under existing
conditions, might not ten or twenty years so change the conditions
as to make a fixed written constitution very embarrassing and
unsuitable? Such a method is not in accord with the genius of the
British Constitution. The British Constitution is unwritten; it has
“broadened down from precedent to precedent,” always elastic,
always adapting itself to changing conditions. So should the idea of
British unity be carried out. Let us work along the lines of least
resistance. The memorial included in the report urges a conference
to consider the trade question. A conference might arrange some
plan to carry out that one idea; in a year or two another conference
could be called to consider some other point of agreement. Soon
these conferences would become periodical. Soon a committee
would be appointed to carry out the wishes of the conferences in the
periods between the meetings; and then you would have an Imperial
Council, and Imperial Federation would have become evolved in
accordance with the true genius of the Anglo-Saxon race. Let us take
one step at a time, and we shall slowly but surely realise our wishes.
These remarks outlined the policy that the Executive Committee
had agreed upon, and foreshadowed much that has since occurred.
Mr. Alexander McNeill seconded the adoption of the report, which
was carried unanimously.
Sir Charles Tupper then moved the first resolution:
Whereas the British Empire League has been formally
inaugurated in London with practically the same objects in view as
the Imperial Federation League, this meeting expresses its sympathy
and concurrence therewith, and resolves that hereafter the Imperial
Federation League in Canada shall be a branch of the British Empire
League, and shall be known and described as the British Empire
League in Canada.
In his speech he gave a short sketch of the progress of the old
League, and pointed out that it was an important fact that this
organisation had committed itself to the policy of removing the
obstruction to preferential trade with Great Britain which existed
through the treaties with Belgium and Germany.
Mr. D’Alton McCarthy seconded the resolution. He also spoke of
the work of the old League which he had founded in Canada, and of
which he was the first President. He said:
That no mistake was made in forming the League, because at
that time, twelve years ago, the feeling was towards independence
or annexation. The League did very much to divert public opinion in
the direction in which it was now running. As to the treaties between
Great Britain and other countries, he did not look upon them as an
obstruction but as an impediment. For his part he was prepared to
do anything to advance Canadian trade relations with England at
once, without postponing it until those treaties were terminated by
Great Britain.
This last sentence shows that at that time he was contemplating
the adoption of the policy of a British Preference, which I believe in
the following year, with Principal Grant’s assistance, he succeeded in
inducing Sir Wilfrid Laurier and his Government to adopt.
The constitution, by-laws and rules for the governance of
branches were then adopted, and the work of the old Imperial
Federation League in Canada has since been carried on under the
name of “The British Empire League in Canada.”
I have always felt that this success of our mission to England was
most important in its result, or at least that its failure would have
been very unfortunate. The collapse of the Imperial Federation
League had disheartened the leading Imperialists very much, and
the deputation to England was an effort to overcome what was a
very serious set back. Had we been obliged to come home and
report that we could get no one in Great Britain sufficiently
interested to work with us, it would necessarily have broken up our
organisation in Canada, and the movement in favour of the
organisation of the Empire, and a commercial union of its parts,
would have been abandoned by the men who had done so much to
arouse an Imperial sentiment. The effect of this would have been
widespread. Our opponents were still at work, and many of the
Liberal party were still very lukewarm on the question of Imperial
unity.
Our success, on the other hand, encouraged the loyalists, and led
the politicians of both sides to believe that the sentiment in favour of
the unity of the Empire was an element to be reckoned with. Sir
John Macdonald had made his great appeal to the loyalty of Canada
in 1891, and had carried the elections, the ground having been
prepared by the work of the League for years before. The general
election was coming on in 1896, and it was most important that the
Imperial sentiment should not be considered dead.
After Sir John’s death the Conservative party suffered several
severe losses in the deaths of Sir John Abbott and Sir John
Thompson, and in the revolt of a number of ministers against Sir
Mackenzie Bowell, who had been appointed Prime Minister. The
party had been in power for about eighteen years, and was
moribund, many barnacles were clinging to it. My brother, Lt.-Col.
Fred Denison, M.P., was a staunch conservative, and a strong
supporter of the Government, but for a year before his death, that is
during the last year of the Conservative régime, he privately
expressed his opinion to me that, although he could easily carry his
own constituency, yet that throughout the country the Government
would be defeated, and he also said he hoped they would. He was
of the opinion that his party had been in long enough, and that it
was time for a change; and he held that the success of the Liberals
at that time with their accession to office, and the responsibilities
thus created, would at once cause them to drop all their coquetting
with the United States, and would naturally lead them to be
thoroughly loyal to a country which they themselves were governing.
About the 1st January, 1896, President Cleveland issued his
Venezuelan message in reference to a dispute between Great Britain
and Venezuela. It was couched in hostile terms, and was almost
insolent in its character. Among European nations it would have been
accepted almost as a declaration of war. This was approved of by the
United States as a whole. Nearly all the Governors of States (forty-
two out of forty-five was, I believe, the proportion) telegraphed
messages of approval to President Cleveland, and many of them
offered the services of the militia of their States, to be used in an
invasion of Canada. This aroused the feeling of our people in an
extraordinary degree, and in all Canada the newspapers sounded a
loyal and determined note. I was anxious about several papers
which had opposed us, and had even advocated independence or
annexation, but indignant at the absolute injustice of the proposed
attack upon Canada they came out more vehemently than any. The
Norfolk Reformer struck a loyal, patriotic, and manly note, while Mr.
Daniel McGillicuddy of the Huron Signal, who used to attack me
whenever he was short of a subject, was perhaps more decided than
any. He said in his paper that he had always been friendly to the
United States and always written on their behalf, but when they
talked of invading the soil of Canada, they would find they would
meet a loyal and determined people who would crowd to the frontier
to the strains of “The Maple Leaf Forever” and would die in the last
ditch, but would never surrender. Mr. McGillicuddy had served in the
Fenian raid in the Militia, and all his fighting blood was aroused. This
episode of the Venezuela message ended the annexation talk
everywhere, and Mr. McGillicuddy has been for years a member of
the Council of the British Empire League.
I had but little influence myself in political matters, but I had
great confidence in Sir Oliver Mowat and the Hon. George W. Ross,
and among my friends I urged that they should be induced to enter
Dominion politics, as their presence among the Liberal leaders would
give the people of Ontario a confidence which in 1891 had been
much shaken in reference to the loyalty of the Liberal opposition. I
was much pleased to find that before the election in 1896,
arrangements were made that Sir Oliver Mowat was to leave the
Ontario Premiership, and support Sir Wilfrid Laurier in the Senate.
In the early spring of 1896, while the Conservative Government
were still in power, I wrote to Lord Salisbury and told him what I
thought would happen, first that the Conservatives would be
defeated, and secondly that the Liberals, when they came into
power, would be loyal and true to the Empire, and that he need not
be uneasy, from an Imperial point of view, on account of the change
of Government. I knew that with Sir Oliver Mowat in the Cabinet
everything would be right, and I felt that all the others would stand
by the Empire.
In 1897, during the Jubilee celebration in London, I saw Lord
Salisbury, and he was much gratified at the action of the Canadian
Government in establishing the British Preference, and said that they
had been anxious about the attitude of the Liberal party, until Sir
Wilfrid Laurier’s first speeches in the House after his accession to
office. I laughingly said, “You need not have been anxious, for I
wrote telling you it would be all right and not to be uneasy.” His
reply was, “Yes, I know you did, but we thought you were too
sanguine.”
As soon as the new Government were sworn in, we endeavoured
to press our views of preferential tariffs upon them, D’Alton
McCarthy and Principal George M. Grant exerting themselves on that
behalf, and during the autumn of 1896 a deputation of the Cabinet
consisting of the Hon. Wm. Fielding, Hon. Sir Richard Cartwright,
and the Hon. Wm. Patterson travelled through the country inquiring
of the Boards of Trade and business men as to their views on the
question of revision of the tariff.
Our League naturally took advantage of this opportunity to press
our views upon the Government, and urged Mr. Fielding and his
colleagues very earnestly to take steps to secure a system of
preferential tariffs. A curious incident occurred on this occasion that
is worth recording. While our deputation were sitting in the Board of
Trade room in Toronto waiting our turn to be heard, a manufacturer
was pressing the interests of his own business upon the Ministers. It
was amusing to hear him explain how he wanted one duty lowered
here, and another raised there, and apparently wanted the tariff
system arranged solely for his own benefit. There was such a
narrow, selfish spirit displayed that we listened in amazement that
any man should be so callously selfish. Mr. Fielding thought he had a
good subject to use against us, so he said to the man, “Suppose we
lower the duty say one-third on these articles you make, how would
that affect you?” “It would destroy my business and close my
factory.” “Then,” said Mr. Fielding, “here is a deputation from the
British Empire League waiting to give their views after you, and I am
sure they will want me to give Great Britain a preference.” The man
became excited at once, he closed up his papers and in vehement
tones said, “If that is what you are going to do, that is right. I am an
Imperial Federationist clear through. Do that, and I am satisfied.”
“But what will you do?” said Mr. Fielding. “It will ruin your business.”
“Never mind me,” he replied, “I can go into something else,
preferential tariffs will build up our Empire and strengthen it, and I
will be able to find something to do.” “I am an Imperialist,” he said
with great emphasis as he went out.
I turned to someone near me and said, “I must find out who that
man is, and I will guarantee he has United Empire Loyalist blood in
his veins.” He proved to be a Mr. Greey, a grandson of John William
Gamble, who was a member of a very distinguished United Empire
Loyalist family. I am sure this incident must have had some influence
upon Mr. Fielding, as an illustration of the deep-seated loyalty and
Imperialism of a large element of the Upper Canadian population.
The members of our League were delighted with the action of
the Government in the Session of 1897, in establishing a preference
in our markets in favour of British goods. It will be remembered that
we had been disappointed in our hope that Lord Salisbury would
have denounced the Treaties in 1892, when the thirty years for
which they were fixed would expire, but five years more had elapsed
and nothing had been done. I believe the plan adopted by our
Government had been suggested by Mr. D’Alton McCarthy, our
former President, and in order to get over the difficulty about the
German and Belgian Treaties, the preference was not nominally
given to Great Britain at all, but was a reduction of duty to all
countries which allowed Canadian exports access to their markets on
free trade terms. This of course applied at once to Great Britain and
one of the Australian Colonies (New South Wales). All other nations,
including Germany and Belgium, would not get the preference unless
they lowered their duties to a level with the duties levied by Great
Britain. The preference was first fixed at one-eighth of the duty just
to test the principle.
Shortly after this was announced in our Commons, Kipling, who
saw at once the force of it, published his striking poem “Our Lady of
the Snows,” which emphasised the fact that Canada intended to
manage her own affairs:

Daughter am I in my mother’s house,

But mistress in mine own.
The gates are mine to open
As the gates are mine to close,
And I set my house in order
Said Our Lady of the Snows.

. . . . . . .

Another strong point was illustrated in the lines:

Favour to those I favour

But a stumbling block to my foes,
Many there be that hate us,
Said Our Lady of the Snows.
 . . . . . . .

Carry the word to my sisters,

To the Queens of the East and the South,
I have proved faith in the heritage
By more than the word of the mouth.
They that are wise may follow
Ere the world’s war trumpet blows,
But I, I am first in the battle,
Said Our Lady of the Snows.

This poem pointed out to Great Britain that Canada had waited
long enough for the denunciation of treaties which never should
have been made, and which were an absolutely indefensible
restriction on the great colonies.
At a meeting of the council of the British Empire League in
Canada held in May a week or two after the Annual Meeting in
Ottawa, a resolution was passed:
That the President and those members of the Canadian Branch
who are members of the Council of the League in England be hereby
appointed a deputation (with power to add to their number) from
the League in Canada to the League in the United Kingdom; and
that they be instructed to lay before the members of the Parent
League the views of the Canadian Branch on matters of national
moment, such as the organisation of a Royal Naval Reserve in the
colonies, and also to express their opinion that, as a guarantee of
the general safety of the Empire, vigorous steps should at once be
taken to provide that the British food supply should be grown within
the Empire.
The deputation consisted of the following: The Hon. R. R. Dobell,
M.P., George R. Parkin, J. M. Clark, A. McNeill, M.P., Sir Charles
Tupper, Bart., John T. Small, Sir Sandford Fleming, K.C.M.G., Lieut.-
Colonel George T. Denison, D’Alton McCarthy, Q.C., M.P., Lord
Strathcona, H. H. Lyman and J. Herbert Mason.
 CHAPTER XX

MISSION TO ENGLAND, 1897

I left for England via Montreal on the 31st May, 1897, and
expected to arrive in Liverpool a day or two before Sir Wilfrid Laurier,
who was to sail some days later from New York on a fast ship. We
were delayed for some days by fogs, and did not arrive in Liverpool
till after Sir Wilfrid Laurier had left that place. He had arrived in the
old world for the first time of his life, and at once fell into the hands
of the Liverpool merchants and business men, at that time generally
free traders. He had not a colleague with him and naturally was
affected by the atmosphere in which he found himself, and in his
speech at the great banquet given by the British Empire League with
the Duke of Devonshire in the chair, he made a few remarks in
reference to preferential tariffs for which he was severely criticised at
home. I joined the party at Glasgow two days later, and Sir Wilfrid,
who seemed pleased to see me, had a long talk with me between
Glasgow and Liverpool on the special train which took the party
down. On the following morning the Liverpool papers had cables
from Canada giving an account of the discussion in the Canadian
House of Commons over the cabled reports of Sir Wilfrid’s speech.
He was attacked vehemently by Alexander McNeill, our champion in
the House, on one point of his speech at Liverpool, and Sir Richard
Cartwright and his colleagues, in defending Sir Wilfrid, did so on the
ground that the reports of what he said could not be taken as
correct, and asking the House to withhold comment until the full
reports should be received. This was a desirable course to adopt, for
cable despatches have so often conveyed inaccurate impressions.
The real secret of the trouble was that in the busy rush of his
work as leader of the opposition, and then as Premier, Sir Wilfrid had
not been able really to master the question, but he soon grasped the
subject, and his later speeches were very effective. His reception by
the British people was wonderfully favourable, and the impression he
made upon them was remarkable. He stood out from all the other
Premiers—and there were eleven in all—and he was everywhere the
central and striking figure.
On the 5th July, 1897, a meeting of the British Empire League
was held in the Merchant Taylors Hall. The Duke of Devonshire was
in the chair and made an able speech welcoming the Premiers from
the colonies. He was followed by Rt. Hon. R. J. Seddon, Premier of
New Zealand, Sir William Whiteway, Premier of Newfoundland, Mr. G.
H. Reid, Premier of New South Wales, and Sir Edward Braddon,
Premier of Tasmania. Sir Wilfred Laurier had not been able to attend,
and as President of the League in Canada I was called upon to
speak. As to the treaties, I said:
I have come here from Canada to make one or two suggestions.
In the first place in reference to preferential tariffs, we have shown
you that we wish to give you a preference in our markets. (Cheers).
But treaties interfere with us in the management of our own tariff,
and I wish to emphasise the fact that some steps should be taken to
place us in absolute freedom to give every advantage we wish to our
fellow-countrymen all over the world. (Cheers.) We wish to give that
advantage to our own people, and we do not wish to be forced to
give it to the foreigner. (Hear, hear.) . . .
Now my last point is this. In Canada we have viewed with
considerable alarm the fact that the wealthiest and most powerful
nation in all history is at this moment dependent for her daily food
for three out of every four of her population upon two foreign
nations, who are, I am thankful to say, friendly to her, and who, I
hope, will always be friendly, but who, it cannot be denied, might by
some possibility be engaged in war with us at some future time.
These two nations might then stop your food supply, and that harm
to you would spread great distress among the people of our country.
I have been deputed by the League in Canada to ask you to look
carefully into this question. If there is no real danger, relieve our
fears; but if you find there is any danger let me urge upon you as
strongly as I can to take some steps to meet that danger. Let the
method be what it may, great national granaries, a duty on food, a
bounty or what not, but let something be done.
A special meeting of the Council of the League was held on the
7th July, 1897, to meet the deputation of our League. In my address
I once more dealt with the question of the German and Belgian
treaties. I said, “The Canadian people have now offered, in
connection with their desire regarding these treaties, to give what
they propose to all nations, but with the express intention of giving
an advantage to our own people. I am deputed to ask you to use
what influence you can on the Government and people of this
country to give us that full control of our own tariff to which we
contend we are entitled.”
Lord Salisbury in 1890, although favourable to the idea, was not
able to secure the denunciation of the German and Belgian treaties,
although I knew from his conversation with me that personally he
felt that they should be denounced. In 1892 Lord Knutsford
peremptorily refused a request by Canada to denounce the treaties.
Lord Ripon was not quite so peremptory in 1894-’95 after the
Ottawa Conference, but he refused permission to Mr. Rhodes to
arrange a discriminating tariff in Matabeleland. We had been held off
for six years, but the action of the Canadian Government brought
matters to a head.
During June and July, 1897, in London the most profuse and
large-hearted hospitality was shown on every hand to the colonial
visitors, and I was fortunate enough to be invited to all the large
functions. I felt the importance of taking every opportunity to press
upon the leading men in England the necessity for the denunciation
of the treaties, and I knew Sir Wilfrid Laurier could not urge it with
the freedom or force that I could. Consequently in private
conversations I talked very freely on the subject, whenever and
wherever I had an opportunity.
I found that in meeting friends, almost the first remark would be
an approving comment on the friendliness of the Canadian
Parliament in giving the British people a preference in the markets of
Canada. My reply always was that it was no more than was right,
considering all that Great Britain had done for us. This was usually
followed by the remark that the Government were afraid, from the
first impression of the law officers of the Crown, that Great Britain
would not be able to accept the favour. My reply was very
confidently, “Oh yes! you will accept it.” Then the remark would be
made that the German and Belgian treaties would prevent it. “Then
denounce the treaties,” I would say. “That would be a very serious
thing, and would be hardly possible.” My reply was, “You have not
fully considered the question, we have.” Then I would be asked what
I meant, and would reply somewhat in these terms:
Consider the situation of affairs as they stand. To-day at every
port of entry in Canada from Sydney, Cape Breton, to Victoria in the
Island of Vancouver, along 3,500 miles of Canadian frontier, German
goods are charged one-eighth more duty than goods from Great
Britain, and goods from Great Britain one-eighth less duty than on
German goods. This was being done yesterday, is being done to-day,
and will be done to-morrow, and it is done by the Government of
Canada, backed by a unanimous Parliament, and behind it a
determined and united people. We have made up our minds and
have thought it out, and have our teeth set, and what are you going
to do about it?
This did not usually bring out any indication that any clear
decision had been arrived at by them, and then I would go on:
Of course we know that you can send a large fleet to our Atlantic
ports, and another to our Pacific ports, and blockade them, paralyse
our trade, and stop our commerce, until we yield, or you may go
farther and bombard our defenceless cities, and kill our women and
children. Well, go on and do it, and we will still hold out, for we
know that any British Government that would dare to send her fleets
to jamb German goods down our throats when we want to buy
British, would be turned out of office before the ships could get
across the Atlantic. The thing is absurd, the treaties are an outrage,
and the only course out of the difficulty is to denounce them.
These arguments carried weight with all to whom I spoke, and I
spoke to Ministers, Privy Councillors on the Government side, M.P.’s,
and others. Once only the head of one of the great daily newspapers
seemed to be annoyed at my aggressive attitude, and said, “You had
better not be too sure. We might send the fleet and be very ugly
with you.” My reply was, “Well, go on and send it. You lost the
southern half of North America by trying to cram tea down their
throats, and you may lose the northern half if you try to cram
German goods down our throats. I should have hoped you had
learned something from history.”
It will be seen that the plan which was, I understand, originated
by D’Alton McCarthy, worked out very successfully. There could only
be one result, and within a month the treaties were denounced, and
I felt that the first great step of our programme had been made. The
amusing feature, however, was, that this object for which we fought
so hard three years before at the meeting at Lord Avebury’s, when
the British Empire League was founded, and which was opposed by
nearly all our English friends, was no sooner announced as
accomplished, than men of all parties and views seemed to unite in
praising the act, and the Cobden Club even went so far as to present
the Cobden Medal to Sir Wilfrid Laurier.
Sir Wilfrid Laurier in all his speeches had upheld abstract theories
of free trade, and with considerable skill succeeded in allaying the
hostility of the free trade element. This, I think, helped to secure the
denunciation of the treaties, with the approval of all parties. On my
return to Canada I was interviewed in Montreal by the representative
of the Toronto Globe. Being asked by the reporter my opinion of the
probable effect of the denunciation of the German and Belgian
treaties, I said:
The denunciation of these treaties marks an epoch in the history
of the British Empire. The power of Canada has made itself felt not
only in British but in European diplomacy. It has affected Germany,
Belgium, and other countries, and every one of these countries
knows that it was Canada’s influence that produced the result.
Another point in connection with the denunciation of these treaties
is, that it is a tremendous step towards preferential trade within the
Empire. Great Britain was going along half asleep. Canada has
awakened her, and made her sit up and think. She has been jostled
out of the rut she has been following, and is now in a position to
proceed in the direction that may be in her own interest and in that
of the Empire.
Being then asked if I had any opinions to express in regard to the
Premier’s remarks in Great Britain on the question of free trade, I
said:
His remarks were general and theoretical. The great point of the
whole movement was to secure the denunciation of the treaties.
Nothing could be done while these treaties were in existence, and in
my opinion it would have been a most indiscreet thing for Sir Wilfrid
Laurier to have pursued any line of argument that would have
aroused the hostility of the great free trade party in Great Britain.
The great point was to secure the united influence of all parties in
favouring the denunciation of the treaties, which was an important
step in advance.
Being asked to account for the fact that Sir Howard Vincent, of
the United Empire Trade League, a strong protectionist, and the
Cobden Club both united in applauding the denunciation of the
treaties, I replied:
 Sir Howard Vincent and his League saw plainly that this action
made for a preferential tariff. The Cobden Club are whistling to keep
up their courage.
In the Conference of Premiers, held in 1897, it was not possible
to secure an arrangement for mutual preferential tariffs. The other
colonies were not ready for it, the Imperial Government was not
ready for it, nor were the people, but as the German and Belgian
Treaties were denounced to take effect the following year, in August,
1898, the path was cleared, and from that date the Canadian
Preference came into force, and has since been in operation.
It will be remembered that the deputation of our British Empire
League to England, in 1897, was instructed to express the great
desire of the Canadian Branch that, as a guarantee of the general
safety of the Empire, vigorous steps should at once be taken to
provide that the British Food supply should be grown within the
Empire. As chairman of the deputation I did all in my power to stir
up inquiry on the subject. Being introduced to Principal Ward of
Owens College, Manchester, when at that city, I talked freely with
him on the point, and he suggested I should discuss it with Mr.
Spencer Wilkinson, the well-known author and journalist. He gave
me a letter introducing me to Mr. Wilkinson, and we had several
interviews. Shortly after reaching London I called to see my friend
Lord Wolseley, then Commander-in-Chief. He took me with him to his
house to lunch, and as we walked over, I at once broached the
subject of the food supply, principally wheat and flour, and he told
me that the Government had been urged to look into the matter
some two or three years before, and that there had been a careful
inquiry by the best experts, and the report was that the command of
the sea was a sine quâ non, but if we maintained that, and paid the
cost which would be much increased by war prices, the country
could get all the grain they would want.
I said suppose a war with Russia and the United States, what
would be done if they combined and put an embargo on bread-
stuffs? How would it be got then even with full command of the sea?
He did not seem himself to have understood the difficulty, or studied
the figures, and said, “I cannot explain the matter. All I can say is
that the Government obtained the advice of the best men in England
on the subject, and that is their report.” My reply was, “I wish you
would look into it yourself,” and I dropped the subject.
I met Lord Roberts shortly after and I pressed the matter upon
him. He had not known of the Government report, and consequently
listened to my arguments attentively and seemed impressed, for I
may say that 1897 was the worst year in all our history as to the
manner in which the supply of food was distributed among the
nations.
Mr. Spencer Wilkinson seemed to be much interested in my talks
with him, and one day he said, “I wish you could have a
conversation with some great authority on the other side of the
question, who would understand the matter and be able to answer
you.” I replied, “That is what I should like very much. Tell me the
best man you have and I will tackle him. If he throws me over in the
gutter in our discussion it will be a good thing, for then I shall learn
something.” Mr. Wilkinson laughed at my way of putting it, and said,
“If that is what you want, Sir Robert Giffen is the man for you to
see.” I said I would try and get a letter of introduction to him. Mr.
Wilkinson said he would give me one, and did so.
I called to see Sir Robert Giffen. He received me very kindly, and
we had an interesting interview of about an hour. The moment I
broached the subject of the food supply he said at once, “That
question came up some two or three years ago, and I was called
upon to inquire into the whole matter and report upon it, and my
report in a few words was, that we must have the command of the
sea, and that once that was secured, then, by paying the somewhat
enhanced war prices, we could get all the grain required.” My reply
was, “Then, as you have fully inquired into the question, you can tell
me what you could do under certain conditions. In case of a war
between Great Britain and Russia combined with the United States,
followed by an embargo on food products, where and how would
you get your supplies?” Sir Robert said, “We do not expect to go to
war with the United States and Russia at the same time.” I said,
“You were within an ace of war with the United States only a year
ago over the Venezuelan difficulty, and Great Britain and Russia have
been snarling at each other over the Indian Frontier for years, and if
you go to war with either, you must count on having the other on
your hands.”
Sir Robert then said, “But I said we must have the command of
the sea.” I replied, “I will give you the complete, undoubted,
absolute command of the sea, everywhere all the time, although you
are not likely to have it; and then in case of an embargo on wheat
and foodstuffs where are you to get your supplies?” He said, “We
would get some from Canada and other countries.” I pointed out
that all they sent was only a fraction. Sir Robert then said, “They
could not put on an embargo, for it would ruin their trade.” I told
him that I was talking about war and not about peace and trade,
and said that no desire for trade induced the Germans to sell wheat
to Paris during the siege of 1870. His idea had been that, in case of
war with Russia or the United States, or both, holding the command
of the sea, Great Britain would allow foodstuffs to be exported to
neutral countries such as Belgium or Holland, and then England
would import from those countries. My answer to that was, that if
England had the command of the sea, the United States or Russia
would have only one weapon, an embargo, and they would certainly
use it. He seemed cornered in the argument, and said, “Well, if we
cannot get bread we can eat meat. I eat very little bread.” I said,
“The British people use about 360 lbs. per head of wheat per
annum, and about 90 lbs. of meat, and a great deal of meat would
be stopped too”; and I said on leaving, “I wish you would investigate
this thoroughly again, and let the Government know, for I know they
are depending upon your report at the War Office”; and then I left
him.
When at Liverpool shortly after on my way back to Canada, I
asked the manager of the Bank of Liverpool, to whom I had a letter
of introduction, if he would introduce me to the highest authority on
the corn trade in Liverpool. He introduced me to the late Mr. Paul,
ex-President of the Corn Exchange, and I had a long conversation
with him on the question of the food supply. As soon as I mentioned
the subject he told me that the corn trade people in Liverpool had
been asked from London to make a report on the possibility of
supplying grain in case of war. Mr. Paul told me that they had
considered the matter (I suppose he meant the leading corn
merchants), and that their report was practically that they must have
the command of the sea, that was essential; but that secured, and
the enhanced war prices paid, they could supply all the corn
required in any contingency. I questioned him as I had Sir Robert
Giffen and found the same underlying belief. The law of supply and
demand would settle the question. The corn would be allowed to go
in neutral ships to neutral ports, and then be transhipped to
England. An embargo had not been considered or treated seriously
as a possibility, and when I cornered him so that he could not
answer my arguments, he said, “Well, if we could not get wheat we
could live on potatoes.” I told him potatoes could not be kept over a
year, that a large quantity was imported which would be stopped. I
said he had better make another report. The whole thing was very
disheartening to me, for I saw how the Government were depending
upon peaceful traders for information how to guard against war
dangers.
In 1902 when Sir Michael Hicks-Beach, then Chancellor of the
Exchequer, proposed a small tax on wheat and flour, I was pleased
to see that Sir Robert Giffen was the first prominent man to write to
the Press endorsing and approving of the bread tax, as it was called.
It showed me that Sir Robert had carefully considered the question,
and was manly enough to advocate what was not altogether a
popular idea.
After my return to Canada I prepared an article for the
Nineteenth Century on the “Situation in England,” and it appeared in
the December number, 1897. In this I pointed out the danger of the
condition of the food supply, and the article attracted a considerable
amount of attention in the British Press, in comments, notices,
letters, etc. Sir Michael Hicks-Beach in a speech at Bristol, in
January, 1898, referred to the question, and in a way contradicted
the points I had brought out in the Nineteenth Century article. My
conversations the summer before with Lord Wolseley, Sir Robert
Giffen, and Mr. Paul had so alarmed me at the false security in which
the Government were resting, that when I saw Sir Michael Hicks-
Beach relying on the same official reports, I determined, although I
had never met him, to write him direct, and on the 20th January,
1898, I wrote, drawing his attention to a remark which he was
reported to have made that “in any war England would have many
friends ready to supply corn,” and I said, “Our League sent a
deputation to England last summer to draw attention to the danger
of the food supply. I was chairman of it. Since my return I published
an article in the Nineteenth Century giving our views. I enclose a
reprint which I wish you could read. If you have not time please give
me one minute to examine the enclosed diagram (cut out of the
Chicago Tribune) showing the corn export of the world. This shows
that Russia and the United States control, not including the
Danubian ports, nearly 95 per cent. of the world’s needs, and if they
were to put an embargo on the export of food of all kinds, where
would be the ‘many friends ready to supply England with corn?’”
Sir Michael Hicks-Beach, now Lord St. Aldwyn, with great
courtesy wrote me a personal letter, in which he thanked me for my
letter, and went on to say:
I do not think that the sentence you quote “that in any war
England would have many friends ready to supply corn” quite
accurately represents what I said on that subject. The report was
necessarily much condensed. But it would be true if (say) we were
at war with the United States alone: or if we were at war with one or
more of the European Powers and the United States were neutral. In
either of such cases the interests of the neutral Powers in access to
our market would be so strong, that our enemy would not venture to
close it to them, in the only possible way, viz.: by declaring corn
contraband of war. And I think that if the United States were the
neutral party, self-interest would weigh more with them than their ill
feeling towards us, whatever the amount of that feeling may be.
It is possible, though most improbable, that the two great corn-
producing countries might be allied against us. If they were, I
believe that our navy would still keep the seas open for our supply
from other sources, though no doubt there would be comparative
scarcity and suffering. I am no believer in the enclosed diagram, the
production of corn is constantly increasing in new countries such as
the Argentine, and better communication is also increasing the total
amount available for export. Bad harvests in the United States and
Russia, and good ones in India and the Argentine, would show quite
another result to that shown in the enclosed, though, as I have said,
I do not believe it is true, even of the year which it professes to
represent.
On receipt of this letter I wrote to Mr. Geo. J. S. Broomhall, of
Liverpool, editor of the Corn Trade News, and author of the Corn
Trade Year Book, and received from him a certificate of the correct
figures of corn exports. I forwarded it to Sir Michael Hicks-Beach,
showing that in 1897 India and the Argentine only exported 200,000
qrs. and 740,000 qrs. respectively, and that the diagram I sent could
not have been a very great way out. In 1902 Sir Michael Hicks-Beach
put a tax of one shilling a quarter on imported wheat, and as I have
already said, Sir Robert Giffen wrote to the Times approving of it. I
was very glad to see this action on the part of both of them.
On the 4th December, 1897, the Hon. George W. Ross gave an
address before the British Empire League in St George’s Hall,
Toronto, in which he strongly favoured preferential tariffs and came
out squarely against reciprocity with the United States. This action
was a great encouragement to our cause and attracted considerable
attention all over Canada.
On the 8th December, 1897, the National Club gave a
complimentary banquet to his Excellency the Earl of Aberdeen,
Governor-General. I attended the banquet and sat second to the left
of the president of the club, Mr. McNaught. I was under the
impression that Mr. Blake, who had been a few years away from
Canada, and who had joined the Irish Nationalist party, would be
sure to speak in a strain not acceptable to our club. I mentioned this
to Dr. Parkin who sat next to me. When Mr. Blake began to speak he
very soon uttered sentiments strongly opposed to all that the
Canadians had been working for in the Imperial interest. I said to
Parkin that as an ex-president of the club, and president of the
British Empire League, I would not allow his remarks to pass without
comment. I leaned over and told the chairman I intended to speak a
few minutes when Mr. Blake finished. He raised some objection, but
I told him I must speak. He mentioned it to the Governor-General,
who said he would wait for fifteen minutes. I told Dr. Parkin I would
divide the time with him.
After Mr. Blake sat down, I said:
I have been a member of this club almost from its foundation. I
was for many years on the Board of Directors, and for some years its
President, and I feel that I should state that the speech of my friend
Mr. Blake does not represent the views nor the national aspirations
which have always been characteristic of the National Club. . . .
I agree with what Mr. Blake has said as to the importance of
preserving friendly relations with the United States. We hope to live
at peace with them, but because we do not wish to beg for
reciprocity or make humiliating concessions for the sake of greater
trade, it is no reason why we should be charged with wanting war.
We want peace, and no one can point to any instance where the
Canadian people or Government have been responsible for the
irritation. Mr. G. W. Ross pointed this out clearly in his admirable
speech of Saturday night. The great causes of irritation have come
from the United States. The invasion of 1775, the war of 1812, the
Trent affair, and the Venezuelan business were all matters in which
we were absolutely free from blame. Nor were we to blame some
thirty years ago when I had to turn out with my corps to help defend
the frontier of this province from the attacks of bands of Fenians,
organised, armed, and equipped, in the United States, who invaded
our country, and shot down some of my comrades, who died
defending Canada. These raids were maintained by contributions
from our worst enemies in the United States, but we drove them
out, and now I am glad to say that, while the contributions still go
on, the proceeds are devoted to troubling the Empire elsewhere, and
I hope they will continue to be expended in that direction rather
than against us.
I approve of Mr. Blake’s remarks about the defence of Canada,
and the expenditure of money to make our country safer, but I
object strongly to the hopeless view he takes. We are 6,000,000 of
northern men, and, fighting on our own soil for our rights and
freedom, I believe we could hold our own in spite of the odds
against us, as our fathers did in days gone by, when the outlook was
much more gloomy.
Dr. George R. Parkin followed with an eloquent and powerful
speech pointing out the various arguments which showed the
growth of the movement for Imperial unity.
It was thought at that time that Mr. Blake had some idea of
returning to Canadian politics, but the result of this meeting and the
Press comments must have put an end to any such idea if it ever
existed.
 CHAPTER XXI

THE WEST INDIAN PREFERENCE

In the autumn of 1897 the report of a Royal Commission on the

condition of affairs in the West Indian Islands was published. Field-
Marshal Sir Henry Norman disagreed with the other two members of
the Commission, and put in a minority report, showing in effect that
the real way to relieve the distress in the sugar industry of the West
Indies, was for Great Britain to put countervailing duties on bounty
favoured sugar coming into her markets. I was much impressed with
Sir Henry Norman’s report as to the condition of the West Indies,
and came to the conclusion that we in Canada might do something
to aid on Imperial grounds.
I wrote, therefore, to Principal George M. Grant, one of our most
energetic and brilliant colleagues, asking him to let me know when
he would be in Toronto, as I wished to have a long conference with
him. On the 29th December, 1897, we met, and I discussed the
whole question with him and asked him to go to Ottawa, and urge
Sir Wilfrid Laurier and Mr. Fielding to increase the sugar duty in order
that Canada might be able to give a preference to West Indian
Sugar. I pointed out that such action would be popular, and that I
was satisfied both parties would support it. I had been pressing Sir
Wilfrid and the Government on many points, and thought that in this
matter they had better be approached from a different angle. Grant
took up the idea eagerly, and promised to go to Ottawa and do his
best. On the 3rd January, 1898, he wrote me “(Private and
confidential)”:
A Happy New Year to you! I have just returned from Ottawa. Had
an hour with Fielding discussing the West Indian question, which he
understands thoroughly. I think that something will be done, though
perhaps not all that we might wish at first.
Had an hour also with Laurier. First, the preference hereafter is to
be confined to Britain. That is settled, but this is of course strictly
confidential.
Secondly, he seemed at first to think that we had gone far
enough with our twenty-five per cent. reduction, till we could see its
workings, but when I argued for going steadily along that line he
said, “I do not say yea, but I do not say nay.” I intend to push the
matter.
He is in favour of the cable, but thinks that we cannot take it up
this session.
He impresses me favourably the more I study him. He has a truer
understanding of the forces in Britain than Tupper in my opinion.
Of course I told Fielding that the West Indian suggestion was
yours, and that I cordially endorsed it. He is anxious to do
something, but thinks that we must ask in dealing with them a quid
pro quo.
Shortly before it was announced Sir Wilfrid Laurier told me the
Government were likely to give West Indian sugar a preference. And
on the 5th April, 1898, Mr. Fielding introduced his Budget, and in a
most eloquent and statesmanlike speech declared that Canada had
her Imperial responsibilities, and that she would lend “a helping
hand to our sister colonies in the south.” This was received with
great applause from both sides of the House, and Grant and I were
not only much pleased at the success of our efforts, but still more
gratified to find the universal feeling in Canada in favour of Mr.
Fielding’s action. A few days after, on the 9th April, Grant wrote to
me:
 I am sure that my thorough discussion on the West India matter
with Mr. Fielding did good, but the suggestion came from you. We
may be well satisfied with the action of the Government, but it will
be bad if the public gets the idea that the British Empire League is
pressing them. It is our task rather to educate public opinion. Things
are moving steadily in the right direction.
P.S.—Mulock is evidently aiming at Imperial penny postage.
Good!
Some time after this the German Government put the maximum
tariff against all Canadian goods, and Mr. Fielding met this by a
surtax of ten per cent. on all German goods entering Canada. This
changed the whole supply of sugar for Canada from Germany to the
West Indies to their great advantage.
On the 10th March, 1898, the Annual Meeting of the British
Empire League was held in the Private Bills Committee Room in the
House of Commons. It was a most successful meeting. Four Cabinet
Ministers were present, Sir Louis Davies, Sir Wm. Mulock, Hon. J.
Israel Tarte, and Hon. Charles Fitzpatrick. Sir Charles Tupper and Sir
Mackenzie Bowell ex Prime Ministers, and many members of the
Senate and the House. Those named above addressed the meeting
as well as Principal Grant and Colonel Sam Hughes.
Sir Wm. Mulock succeeded this year in securing Imperial Penny
Postage, which was one of the objects for which the British Empire
League had been working. It was managed with great boldness and
skill by Mr. Mulock. His first step was to announce that on and after
a certain date some three or four months in advance, all letters
stamped with the ordinary three cent domestic rate would be carried
to Great Britain without further charge. He knew that objection
would be raised to his action, but that it would bring the question to
the forefront. The Imperial Government objected to deliver the
letters, and said the matter would have to be considered at a
conference. Mr. Mulock then answered that a conference should be
held, which was agreed to, but he insisted it should not be a
departmental affair, that he should only be asked to discuss it with
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