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UBC Theses and Dissertations

The effect of the Panama Canal on western Canada Allan, Dalton Dodd 1938

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THE EFFECT OF 'MB PANAMA CANAL ON WESTERN CANADA.  "by  B a i t o n D. A l l a n .  A thesis submitted i n p a r t i a l  fulfilment  o f t h e r e q u i r e m e n t s f o r t h e degree o f M a s t e r o f A r t s i n t h e Department o f Economics  University  of British March. 1938.  Columbia,  TABLE OF COM'Bi'ITS  'CHAPTER I II  III . IV  V VI VII  VIII  IX •  X  SUBJECT  PAGE  Introduction  .  "An Economic H e v i ew  An H i s t o r i c a l  1 »»  4  S k e t c h of t h e I s t h m i a n Boute.»,.,.  11  The Scope o f t h e I n v e s t ! g a t i o n  Ganadian Economic Development  ,  .  16  .................  20  Western Canada  47  B r i t i s h Columbia *  21  General E f f e c t s of t h e Canal  ..........  112  E f f e c t s o f t h e C a n a l on. Canadian Wheat .........  12?  C o n c l u s i o n .....................................  167  Postscript  Bibliography  . 170  172  Aa Scoiioittic Bsviet? <>.,«.».....c<...•••»»«••»  An H i s t o r i c a l  Skatcli o f t h e I s t l s n i s i t Boute  She Scope o f t h e I n v e s t i g a t i o n c...«...*.••«  C a a a d i a a Economic :Developiisaxii  Bsstssyn CatiEtcla  *:»•*.#•**-4«•  !B^x*bh OoitHdbxs,  .»..<..«,.....  • » « » . » < • *••*« • » » «*••••.»»•.•»  »«.«««.*»«t>:»«4«»»:«'«f  g e n e r a l S i f f e e t s of t h e C a n a l  »«  «>.»......,.,«  E f f e c t s o f t a e Caiwxl ori tJanaflian Wheat .oV*  COHC<X"U.SX033.  ^* >«  0 * 0 -e «  « .* ».,t> w- «•»••* « .« «-«> «• • » •*  «a •» « * «  INDEX OP FIGURES F i g , 1* Fig. 2 Fig. 3 Fig. 4 Fig. 5 Fig, 6 Fig. 7 'Fig. 8 Fig. 9 Fig.10 F i g . 11 Fig.12 F i g * 15 Fig.14 F i g * 15 F•&1i gr». 1K 6 Fig.17 Fig,18 Fig.19 F i g . 20 Fig.21 Fig.22 F i g , 23 Fig.24 F i g , 25 Fig.26 Fig,27 Fig.28 Fig.29 Fig.30 Fig,31 Fig.52 Fig,53 Fig,34 Pig,55 Fig.56 Fig.37 Fig.38 Fig,39 . Fig.40 Fig.41 Fig.42 Fig.45 Fig.44 Fig,45  'Canadian P o p u l a t i o n , 1901-1936  _ ...  ...........  - ^ f j  W e s t e r n Canadian P o p u l a t i o n , 1901-1936.. ..... 25 Canadian E x p o r t s and Imports, 1900-1936. 31 P e r c e n t a g e of Canadian E x p o r t s t o U.S. & Other C o u n t r i e s 42 P e r c e n t a g e o f Canadian Imports t o U.S. & Other C o u n t r i e s 43 49 Canadian Imports, 1906-1920....... Western Canada I m p o r t s , 1906-1920. 50 Canadian I m p o r t s , 1920-1936 51 Western Canada I m p o r t s , 1920-193 6 52 Canadian E x p o r t s , 1906-1920 54 Western. Canada E x p o r t s , 1906-1920, 55 Canadian Western Canada E x p o r t s , 192Q-1936. • 57 Panama T r a f f i c from West Coast o f Canada,. 1321-1936 62 M a n i t o b a I m p o r t s , 1906-1920* •,. + 65 Saskatchewan I m p o r't's , 1906-1920....... C~ JCf: A l h e r t a I m p o r t s , 1906-1920 ...... « « « o « « « * « * « « o o « 67 B r i t i s h C o l u m b i a I m p o r t s , 1906-1920... * * « * • e « « « » a A 9 » o 68 M a n i t o h a I m p o r t s , 1920-1936.....,.,,.. Saskatchewan I m p o r t s , 1920-1936..,.,.,o » » » a • •* * • « e » e « «• 70 A l b e r t a I m p o r t s , 19 20-1936 ••• • • a a « » » « e a o 71 B r i t i s h C o l u m b i a I m p o r t s , 1920-1956. M a n i t o b a E x p o r t s , 1906—1920, »......,<...<,...... 75 Saskatchewan E x p o r t s , 1906-1920 74 Alb e r t a Exp o r t s , 1906-1920 ,....<>.. 75 B r i t i s h Columbia E x p o r t s , 1906-1920..................... 76 M a n i t o b a E x p o r t s . 1920-1936 , , 77 Saskatchewan E x p o r t s , 1920-1936 78 A l b e r t a E x p o r t s , 1920-1936,...................... , 79 B r i t i s h Columbia E x p o r t s , 1920-1936..................... • 80 Vancouver Imports as a P e r c e n t a g e o f B.C.Imports,1908-36 95 Vancouver E x p o r t s a s a P e r c e n t a g e of B . C . E x p o r t s , 1908-56 96 Vancouver I m p o r t s , 1908-1920 , 88 Vancouver I m p o r t s , 1920-1956., 99 Vancouver E x p o r t s , 1 9 0 8 1 9 2 0 1 0 0 Vancouver E x p o r t s , 1920-1936 ............ ,. 101 Vancouver Trade v i a Panama, 1921-1935, I m p o r t s . . . 107 Vancouver Trade v i a Panama, 1921-1955, E x p o r t s . . . . , . . , , . 108 P r o v i n c i a l Grain Production as a Percentage of Total W e s t e r n Canadian P r o d u c t i o n (Wheat o n l y ) 1915-1935... 136 P r o v i n c i a l . G r a i n P r o d u c t i o n as a P e r c e n t a g e o f T o t a l Western Canadian P r o d u c t i o n (Wheat,Oats,Barley,Rye) 1915-35 157 Comparison o f Vancouver E x p o r t s and A l t a . C r o p s , 1922-55.. 142 Comparison o f Vancouver E x p o r t s and A i t a . - S a s k C r o p s / ' " 143 Comparison of Vancouver E x p o r t s and Sask.Crops,1922-55.. 143 Comparison o f Vancouver E x p o r t s and Man. Crops, 1922-55. 144 Average Annual Cost o f T r a n s p o r t i n g One B u s h e l o f Wheat from Canada t o L i v e r p o o l (a) v i a M o n t r e a l ("b) v i a Vancouver-Panana.... ' 150 Index o f A t l a n t i c and P a c i f i c F r e i g h t R a t e s on Wheat.... 153 Comparison o f P a c i f i c F r e i g h t R a t e s and B.C. E x p o r t s , . . . 154 N  Fig,46 Fig.47  INDEX OF TABLES. Table 1 Table 2  Table . Table Table Table Table Table Table  3 4 5 6 7 8 9  Table Table Table Table  10 11 12 13  World's S h i p p i n g Tonnag e, Quantum of World Trade, Indexes o f Value i n U.S. G o l d D o l l a r s , i n S t e r l i n g , o f Gold P r i c e s , o f S h i p p i n g ,A.0"t> l " V " l " f e y 5 19 29 ™19 t$5 9»»*»#»oea* «w»*»*©»«o«#««»&« Net P o p u l a t i o n I n c r e a s e s , 1921-1934-, P o p u l a t i o n Growth, 1901-1956............ • • • »• • « • • » » P o p u l a t i o n Western P r o v i n c e s , 1901-1914..... Canadian Steam R a i l w a y M i l e a g e , 1900-1914... Canadian Imports and E x p o r t s , 1900-1936. J » ii e o i !) « » Ten L e a d i n g Canadian Imports a n d E x p o r t s , 1900-1936.. The P e r c e n t a g e o f Canadian E x p o r t s a n d Imports t o and from c o u n t r i e s o t h e r t h a n t h e U n i t e d S t a t e s , 1900-1936 Panama T r a f f i c ( i n l o n g t o n s ) , 1921-1936 I m p o r t s by P r o v i n c e s , 1900-1936...................... E x p o r t s by P r o v i n c e s , 1900-1936, A n n u a l P e r c e n t a g e I n c r e a s e o r Decrease i n E x p o r t s and I l l X p 02^"fc S j  Table 14 T a b l e 15 T a b l e 16 T a b l e 17 T a b l e 18 Table 19 T a b l e 20 Table 21 T a b l e 22 T a b l e 23 Table 24 Table 25 Table 26 T a b l e 27  Table Table Table Table  28 29 30 31  190  6™  19  • & • 9 * • •  * • # 9 *  o e * * + * *  • « * * * + *  Page "T  9 9 22 23 28 30 35 41 60 81 - 82  * * * m * * * o tt  83 B.C. E x p o r t s and Imports a s a P e r c e n t a g e o f W e s t e r n Canada E x p o r t s and Imports, 1906-1936................ 89 Imports and E x p o r t s f o r F i v e P r i n c i p a l P o r t s o f B r i t i s h Columbia, 1908-1936. ...„•> 94 Vancouver Trade b y A r e a s , 1921-1936. 105 T o t a l Vancouver Tonnage, l e s s F o r e i g n C o a s t w i s e and B r i t i s h Columbia C o a s t w i s e (Deep Sea only),1921-1936. 110 Vancouver and l e w W e s t m i n s t e r Waterborne E x p o r t s and Imports t o and from E a s t e r n Canada, 1928-1934. 117 T r a f f i c t o and from the E a s t and West C o a s t s o f Canada v i a t h e Panama C a n a l , 1921-1936. 118 Wheat P r o d u c t i o n i n Western Canada, b y P r o v i n c e s , 1908-32 1 20 T a b l e o f D i s t a n c e s from Vancouver, B.C. t o A t l a n t i c and Europe an P o r t s ( v i a Panama) 123 Imports o f P r i n c i p a l Wheat I m p o r t i n g C o u n t r i e s , 19 «5«3""* IS «5t) » o i s ^ o w w a o e a * 151 E x p o r t s of P r i n c i p a l Wheat E x p o r t i n g C o u n t r i e s , 19 S3***19 <3G« 0 « 4 * « 9 * » « a 9 1*32 G r a i n P r o d u c t i o n b y P r o v i n c e s , 1915-1935............. 135 The G r a i n Movements o f t h e W e s t e r n I n s p e c t i o n D i v i s i o n by Crop Y e a r s , 1920-1935... . ........... 140 D i s p o s i t i o n o f Canadian G r a i n , b y Crop Tears,1920-35. 141 The Average Annual Cost o f T r a n s p o r t i n g One B u s h e l o f Wheat from Canada to L i v e r p o o l (a) v i a M o n t r e a l (b) v i a Vancouver-Panama 149 A t l a n t i c and P a c i f i c F r e i g h t Hates on VV'heat, 1921-1935 152 American P a c i f i c Coast E x p o r t s and I m p o r t s , 1922-1930 157 Summary o f E l e v a t o r S t o r a g e C a p a c i t y b y P r o v i n c e s . . . . 159 Vancouver G r a i n Shipments by Months, 1929-1935,...,,. 163  CHAPTER I .  W i t h t h e p a s s i n g o f each decade o f t h e T w e n t i e t h  Century,  s o c i a l and economic phenomena become more and more d i f f i c u l t a n a l y z e and  reduce to s i m p l e cause and  effect.  to  all  R a p i d change i n  departments o f l i f e has become commonplace,, and t h e c o n t i n u e d n e c e s s i t y f o r adjustment a f t e r each change has "brought f o r s o l u t i o n a new s e r i e s o f complex p r o b l e m s .  The commercial w o r l d has b u i l t up a n  extremely  d e l i c a t e mechanism, q u i t e s a t i s f a c t o r y when changes were t a k i n g p l a c e g r a d u a l l y , but much t o o s e n s i t i v e when s u b j e c t e d t o s u c c e s s i v e , extreme changes. a r e now  The  e f f e c t s o f sudden d i s t u r b a n c e s i n any p a r t of t h e w o r l d  f e l t , not o n l y l o c a l l y , hut a t t h e v e r y f i n a n c i a l  c e n t e r s - London, P a r i s , and Hew quarters of the globe.  nerve  Y o r k - and f r o m t h e r e , s p r e a d t o a l l  The w h o l e s t r u c t u r e i s i n a c o n t i n u a l s t a t e  o f o s c i l l a t i o n , and i t t h u s becomes most d i f f i c u l t t o r e l a t e t h e  past  t o t h e p r e s e n t , and e x c e e d i n g l y , dangerous t o prophesy f o r t h e f u t u r e .  W i t h such a m u l t i t u d e of f o r c e s a t p l a y upon the  strings  o f human a c t i v i t y , w i t h such v a r i e d and c h a n g i n g e f f e c t s , one  i s faced  w i t h t h e p r o s p e c t o f h a v i n g t h e c o n c l u s i o n s drawn f r o m one * s a n a l y s i s p a r t i a l l y or completely upset.  Some a p p a r e n t l y i r r e l e v a n t event  t a k e p l a c e i n t h e w o r l d a t l a r g e , or some new the problem from a n o t h e r must t h e n be r a d i c a l l y  The  angle: immediately,  l i g h t may  may  he t h r o w n upon  one's c o n s i d e r e d  opinions  altered.  f i e l d o f t r a n s p o r t a t i o n has a l w a y s been s u b j e c t to the  • i  (2)  i n f l u e n c e of changes i n other spheres  o f human a c t i v i t y , and  has he en p a r t i c u l a r l y t r u e d u r i n g t h e l a s t 50 y e a r s . o f t h i s , the p r e s e n t Sino-Japanese t i o n systems, and  this  As an i n s t a n c e  c o n f l i c t he.s d i s r u p t e d t r a n s p o r t a -  the c l o s i n g of t h e p o r t o f Shanghai has a l r e a d y  d i s l o c a t e d t h e normal c h a n n e l s  of w o r l d  shipping.  I n times p a s t ,  s h i p p i n g has "been a f f e c t e d , t o a g r e a t e r or l e s s degree, by a bumper wheat crop i n the A r g e n t i n e o r by a c r o p f a i l u r e elsewhere,  by  a  shortage o f c a r g o tonnage o r by a n e x c e s s , by h i g h p r i c e s or low.  In  f a c t , i n any one o f a hundred d i f f e r e n t ways, t h e p r o g r e s s of t r a n s p o r t a t i o n may new  be speeded up o r r e t a r d e d .  I t may  even he d r i v e n i n t o  channels.  On t h e other hand, changes i n t r a n s p o r t a t i o n and c o m m u n i c a t i o n , may  he t h e c a u s e , d i r e c t l y or i n d i r e c t l y , o f s i g n i f i c a n t changes e l s e -  where.  I n t h e l a s t c e n t u r y , the w o r l d has s e e n t h e steamship  r e p l a c e the s a i l i n g s h i p , and the r e s u l t has "been an e n t i r e l y  completely new  commercial w o r l d , one w h i c h , i n many r e s p e c t s , i s h a r d l y comparable with the past.  I n l i k e manner, t h e t e l e g r a p h , the w i r e l e s s , t h e motor-  s h i p , t h e c o m p l e t i o n o f t h e Sues C a n a l , and  (more r e c e n t l y ) t h e Panama  Canal - a l l t h e s e have gla/yed t h e i r p a r t i n c h a n g i n g map  the commercial  of the world.  T h i s modern, h i g h l y - i n d u s t r i a l i z e d w o r l d c e r t a i n l y p r e s e n t s a m u l t i t u d e of c o n f l i c t i n g ideas, motives,  f o r c e s , f a c t s end  I t i s f r o m t h e s e t h a t i t w i l l be our t a s k to a t t e m p t  figures.  to i s o l a t e the  f o r c e s w h i c h have o p e r a t e d on t he economic l i f e o f Western Canada, as a r e s t i l t of the c o n s t r u c t i o n try the U n i t e d S t a t e s ' government of  a c a n a l t h r o u g h the Isthmus o f Panama,  B e f o r e p r o c e e d i n g t o t h e problem i n hand, i t might b e w e l l to r e v i e w , very b r i e f l y ,  some o f t h e more i m p o r t a n t events o f t h e  p a s t 25 y e a r s ( w i t h p a r t i c u l a r r e f e r e n c e t o t h e i r e f f e c t on t h e economic r e l a t i o n s b e t w e e n n a t i o n s ) , i n order b e t t e r t o v i s u a l i s e t h e s e t t i n g i n which  our s u b j e c t p r e s e n t s itself»  * "  (4) CHAPTER I I  I t i s u n i v e r s a l l y a g r e e d t h a t the G r e a t War d i s r u p t i v e f o r c e t o he  f e l t i n the economic and  n a t i o n s of t h e w o r l d d u r i n g t h e l a s t c e n t u r y , the h i s t o r y of t h e w o r l d . of d i f f i c u l t problems.  was  s o c i a l l i f e of the  i f not at any time i n  I t l e f t to the s h i p p i n g w o r l d -  From 1914  to 1918,  the most  a heritage  huge p r o f i t s were made by  the s h i p o w n e r s of b o t h n e u t r a l and b e l l i g e r e n t c o u n t r i e s , i n t r a n s p o r t i n g war- m a t e r i a l s and  food s u p p l i e s to t h e war  zone,  These p r o f i t s  were e a g e r l y d i s s i p a t e d i n e x o r b i t a n t p r i c e s f o r more ships,.  This  a d d i t i o n a l tonnage, bought at i n f l a t e d p r i c e s , p a i d handsome d i v i d e n d s o n l y as l o n g as the abnormal war war was  over,  c o n d i t i o n s p r e v a i l e d , hut when t h e  i t soon became a heavy burden on the owners.  With the  s i g n i n g of the A r m i s t i c e , r i g i d war-time r e g i m e n t a t i o n came to an a war-weary w o r l d s t r u g g l e d back t o peace-time o c c u p a t i o n s , a v a i l a b l e cargoes and f r e i g h t r a t e s dropped to new  and  low l e v e l s ,  b u i l t i n e. p e r i o d o f h i g h p r i c e s c o u l d no l o n g e r make a r e t u r n t h e i r owners' i n v e s t m e n t , and i n many c a s e s i t was e x p e d i e n t t o t i e them up,  end,  considered  Ships on more  r a t h e r than o p e r a t e at a l o s s .  T h i s s i t u a t i o n r e m a i n e d p r a c t i c a l l y u n a l t e r e d , r i g h t down to the e a r l y months o f 1937, it  i s estimated  o f 1957, was  18 y e a r s a f t e r t h e war  by competent s h i p p i n g men  s h i p p i n g r a t e s r o s e over 200%,  due, ' p r i m a r i l y ,•• t o two  ended.  However,  t h a t i n the l a s t s i x months  and t h e y i n t i m a t e t h a t  t h i n g s - a s y s t e m a t i c s c r a p p i n g of  date tonnage, b u i l t d u r i n g the war,  and  this out-of-  t o the recent, appreciable  gain  •  (5)  I  i n p r o f i t a b l e cargo  tonnage.  Another r e s u l t of the Great War  was  the g r o w t h of a k e e n  r i v a l r y between n a t i o n s i n a l l branches of i n t e r n a t i o n a l economic l i f e . The  "war t o end war"  d i d not promote g r e a t e r a m i t y between n a t i o n s , as  most people expected.  On the c o n t r a r y , i t engendered a more pronounced  n a t i o n a l c o n s c i o u s n e s s , w h i c h found e x p r e s s i o n i n r i g i d  immigration  r e s t r i c t i o n s , h i g h e r and s t i l l h i g h e r t a r i f f s , and a v e r y keen t y p e o f c o m p e t i t i o n f o r the a v a i l a b l e s h i p p i n g b u s i n e s s o f the w o r l d . i s e s t i m a t e d , f o r i n s t a n c e , t h a t by 1954, was  382% l a r g e r t h a n i n 1914,  t h a t o f I t a l y 101%.  The  It  the American s h i p p i n g f l e e t  t h a t of J a p a n had i n c r e a s e d 158,5%, and  c o u n t r i e s c i t e d a r e o n l y t h r e e of t h e more  prominent c o m p e t i t o r s w i t h Great B r i t a i n i n t h e post-war y e a r s f o r a s h r i n k i n g cargo tonnage,  Whereas Great B r i t a i n c a r r i e d the b u l k o f  w o r l d cargoes p r i o r t o the War,  she has s i n c e been h a r d - p r e s s e d  m a i n t a i n a moderate l e a d over her n e a r e s t  to  rivals.  E a r l y i n 1916, t h e U n i t e d S t a t e s , a t the i n s t i g a t i o n of the A l l i e s , s t a r t e d on a program o f r e - b u i l d i n g her merchant marine - "a most c o s t l y t r i a l - a n c - e r r o r and r a p i d program, w h i c h e n t a i l e d the 1 b u i l d i n g o f 2000 v e s s e l s a t a c o s t o f t h r e e b i l l i o n d o l l a r s , "  At a  l a t e r date, she v i r t u a l l y scrapx^ed the whole scheme, a t an e s t i m a t e d  loss  of f i v e b i l l i o n d o l l a r s *  I t i s q u i t e obvious t h a t " t h i s h e r i t a g e has been " 2 an e x t r e m e l y u n s e t t l i n g i n f l t x e n c e i n deep-sea s h i p p i n g " s i n c e t h a t time. 1, Mears, E.G. 2, i b i d , 9.  M a r i t i m e Trade of We s t e m . U n i t e d St at_es, S t a n f o r d , 1935,9,  •  \  (6)  Another development o f s i g n i f i c a n c e which has t a k e n p l a c e i n the s h i p p i n g w o r l d d u r i n g t h e l a s t 20 y e a r s has b e e n t h e change ' i n t y p e o f f u e l used i n t h e c a r r y i n g t r a d e .  O i l h a s been r a p i d l y  r e p l a c i n g coal as a f u e l f o r o p e r a t i n g s h i p s .  I n 1914, 8 9 % o f t h e  w o r l d ' s s h i p s were u s i n g c o a l ; i n 1934, t h i s p r o p o r t i o n had dropped t o 52%.  T h i s was a d i s t i n c t d i s a d v a n t a g e t o Great B r i t a i n , hut a boon  to t h e U n i t e d S t a t e s .  The l a t t e r , w i t h her e x t e n s i v e o i l f i e l d s I n  Texas and C a l i f o r n i a , was i n a much b e t t e r p o s i t i o n t o compete w i t h B r i t a i n , who, up t o t h a t t i m e , c a r r i e d t h e h u l k o f t h e w o r l d ' s  cargoes  l a r g e l y by v i r t u e o f her s t r a t e g i c c o a l s u p p l i e s .  The change from c o a l t o o i l has been h a r d l y more d r a m a t i c than t h e phenomenal i n c r e a s e i n t h e number o f mot o r s h i p s u s e d .  The  accompanying t a b l e (Table 1, Page 7} i l l u s t r a t e s t h i s s i t u a t i o n t o advantage.  I t w i l l b e seen t h a t p r i o r t o 1926, L l o y d * s o f f i c i a l  r e g i s t r y d i d n o t c o n s i d e r motorships a separate c l a s s i f i c a t i o n .  of s u f f i c i e n t importance t o warrant  I n t h a t y e a r , f o r t h e f i r s t t i m e , they  d i v i d e d n o n - s a i l i n g v e s s e l s i n t o s t e a m s h i p s and m o t o r s h i p s . the r e g i s t e r e d g r o s s tonnage of steamships over m o t o r s h i p s amounted t o 61,784,000  of  tons.  3,493,000  t o n s was 59 ,177,000;  t o n s ; and t h e t o t a l w o r l d t o n n a g e was  A t t h a t t i m e , m o t o r s h i p s comprised  t h e t o t a l w o r l d tonnage.  a c t u a l l y decreased t o motorships  100  I n 1926,  approximately  5%  W i t h i n 10 y e a r s , steamship tonnage had  51,714,000  had i n c r e a s e d by over  t o n s , a drop o f over 40 0%  to  12,290,000  w o r l d tonnage r e m a i n i n g very n e a r l y t h e same.  12%,  while  tons, the t o t a l  At the p r e s e n t t i m e , .  (?)  TABLE 1 WORLD'S SHIPPING TONNAGE; 100 TONS AND OYER. (000*s o f Tons Gross)  YEAR  1  9  1  STEM  45,403 45,729 45,729 45,729 45,729 45,897 53,904 58,846 61,342 61,342 61,514 62,380  4  1 9 1 5  1916 1917 1918 1 9 1 9  1920 1921 1922 1923 1  9  2  4  1 9 2 5  1926 1927 1928 1929 1930 1951 1932 1935 1934 1955 1956  MOTOR  59,177 58,995 59,727 59,779 59,927 59.291 58,529 56,427 52,422 51,714  5,493 4,270 5,432 6,628 8,096 , 9,431 10,083 10,200 11,304 , 12.290  * F i g u r e s not a v a i l a b l e *  SAIL  TOTAL  3,685 3,532  49,089 49,261  3,021 3,409 3,128 3,027 2,509 2,261  50,919 57.514 61*974 64,370 .  2,112  ,  64,023 64,641  1 795 1,6 6 6 1,583 1,408 1,366 . 1,292  61,784 63,267 66,954 68 , 0 74 69,607 70,151 69,734 67,920  1,158 1,058  64,885 65,063  9  we f i n d t h a t m o t o r s h i p s tonnage.  comprise approximately  20% o f the w o r l d  These changes i n the t y p e s of s h i p s have had f a r - r e a c h i n g  • effects.  The  new  v e s s e l s a r e much more e c o n o m i c a l  t o operate, r e q u i r e  l e s s space f o r f u e l , and have a w i d e r s a i l i n g r a n g e than the o l d . E n t i r e l y a p a r t f r o m t h e d i r e c t e f f e c t s on s h i p p i n g o f the above mentioned developments, t h e r e have heen o t h e r s i g n i f i c a n t t a k i n g p l a c e w h i c h have helped  to prevent  a normal and  events  steady r a t e  of growth,  The  commercial w o r l d f a c e d a d e p r e s s i o n i n 1930-1935 w h i c h  v e r y n e a r l y t o o k the form of an i n t e r n a t i o n a l c a t a s t r o p h e . t a b l e on Page 9 (Table 2) shows how during those years. o f what i t was  The  r e a l l y serious the s i t u a t i o n  The q u a n t i t y o f w o r l d t r a d e i n 1955 was  i n 1929.  was  only  82%  Trade i n terms o f go I d , i . e . , t h e v a l u e of  t r a d e , dropped f a r l o w e r t h a n t h e a c t u a l volume. s i t u a t i o n c o u l d not b u t a f f e c t t h e f i e l d  Such a s e r i o u s  of t r a n s p o r t a t i o n ^ and  this  i s d r a m a t i c a l l y i l l u s t r a t e d i n the r e c o r d of "Shipping A c t i v i t y " (Tahle 2 ) .  I n t h e y e a r 1955,  s h i p p i n g a c t i v i t y v e r y n e a r l y came t o  a s t a n d s t i l l , b e i n g o n l y 18% o f t h e 1929  figure.  Another s o u r c e of d i s t u r b a n c e d u r i n g t h e post-war p e r i o d has heen t h e v e r y marked r e d u c t i o n i n t h e r a t e of p o p u l a t i o n i n c r e a s e i n c e r t a i n European c o u n t r i e s . o v e r deaths per 1000  The a n n u a l r a t e of e x c e s s o f b i r t h s  o f p o p u l a t i o n i s g i v e n on Page 9 ( T a h l e 5 ) .  T h i s has caused c o n s i d e r a h l e a l a r m I n Germany, F r a n c e , and  Italy,  i t has been upon man-power t h & t t h e y have depended i n t h e p a s t t o  since  (9)  TABLE 2 3.929  1952  1935  1934  1935  (1929 = 100)  100  74.5  75.5  78.5  82.0  Index of Yalue I n U.S. G o l d D o l l a r s  100  59.1  35.2  53.9  34.6  Index of Yalue i n S t e r l i n g  100  54.3  51,7  54,9  57,8  I n d e x o f Gold P r i c e s  100  52,5  46,5  45.0  42,0  Index o f S h i p p i n g A c t i v i t y  100  26,0  18,0  35.0  47,0  Quantum of World Trade  Source;  League o f Nations,. World Economic Survey, 1935-1936,  TABLE 5  NET POPULATION INCREASES (Per 1000 of p o p u l a t i o n ) 1921-25  1926-30  1950  1931  19 &3 (C 1933  1954  Germany  8,8  6.6  6.4  4.8  4.3  3©5  7.1  F r a n c e ...........  2« X  1.4  2.4  1.1  1,5  ,5  1,0  10.8  12.6  10,1  9,1  10.0  10,1  4.9  5,1  3»8  5,5  2.4  5.5  Italy  ...........  U n i t e d Kingdom  Sources  8.0  S t a t i s t i c a l Year Book o f t h e League o f N a t i o n s , 1954-35.  (10) maintain  economic and  political  security.  Thus, t h i s f a c t o r  has  encouraged the p r e v a i l i n g t r e n d toward economic n a t i o n a l i s m , w i t h i t s a t t e n d a n t h i g h t a r i f f s , r i g i d c o n t r o l of t r a d e and other measures c a l c u l a t e d to b r i n g economic and  F i n a l l y , and  and  social self-suf ficiency.  perhaps t h e most s u g g e s t i v e  T w e n t i e t h C e n t u r y , t h e r e has been the r e c e n t  production,  development of the  challenge  of a i r t r a v e l .  T h i s mode o f t r a n s p o r t a t i o n has not y e t encroached to any g r e a t on f r e i g h t shipments, but possibilities.  extent  i t w o u l d he f o o l i s h t o deny i t s f u t u r e  Only r e c e n t l y , i t was  reported  i n the press that a r e g u l a r  f r e i g h t s e r v i c e by a i r had been e s t a b l i s h e d a c r o s s and t h a t such a r t i c l e s as p i a n o s and  the E n g l i s h Channel,  household f u r n i t u r e were not  uncommon c a r g o e s f o r the huge a i r l i n e r s. o f the s a i l i n g s h i p Is much t o o r e c e n t  The  conque s t by the steamship .  t o p e r m i t f o o l h a r d y d e n i a l s of  the p o t e n t i a l c a r r y i n g c a p a c i t y of huge h e a v i e r - t h a n - a i r machines, f o r any o r a l l t y p e s o f c a r g o . s m a l l e r and  s m a l l e r , and,  T r u l y , year by y e a r , t h e w o r l d becomes at the same t i m e , more and more complex.  (11) CHAPTER I I I For c e n t u r i e s , Europeans t r i e d t o f i n d t h e s h o r t r o u t e west to t h e O r i e n t .  F o r the most p a r t , such a t t e m p t s were r e l a t i v e l y  u n s u c c e s s f u l , u n t i l 1914.  I n that year, the U n i t e d S t a t e s  govern-  ment completed a 400 m i l l i o n d o l l a r c a n a l "between the A t l a n t i c  and  P a c i f i c Oceans over the Isthmus of Panama,  I n 1492, Columbus came v e r y near t o t h i s narrow s t r i p o f l a n d , h u t he had not the f a i n t e s t i d e a of what l a y b e f o r e him. c o n s i d e r a b l e t i m e e l a p s e d b e f o r e o t h e r s went f a r t h e r . u n t i l September 15, 1515,  that Balboa accomplished  Some  I t was  not  this feat.  At  t h a t t i m e , he l a n d e d on t h e A t l a n t i c s i d e of what i s now Panama, c l i m b e d the s h o r t d i s t a n c e over the mountains, and became the man  to v i e w the P a c i f i c Ocean from t h e ?/estern shores o f N o r t h  first America,  Ho s e r i o u s attempt was-ms.de to e s t a b l i s h a c o l o n y on the Isthmus u n t i l 1698.  At t h a t t i m e , a group o f S c o t t i s h  adventurers  formed t h e Company o f S c o t l a n d , more f a m i l i a r l y known as the D a r i e n Company,  They were o r g a n i z e d to t r a d e i n A f r i c a and the I n d i e s , and  they e s t a b l i s h e d a c o l o n y i n Panama, u n d e r t a k i n g was  "The  express purpose o f t h i s  the development o f a t r a n s - i s t h m i a n r o u t e , p r o b a b l y  o v e r l a n d , w h i c h would immeasurably f a c i l i t a t e European t r a d e w i t h t h e Far E a s t and l i k e w i s e d e l i v e r c o n t r o l o f w o r l d t r a d e t o t h o s e 1 h e l d the key to t h i s r o u t e . " 1« Hears, op. c i t . ,  120,  who  .  (12) I n the m i d d l e of the n i n e t e e n t h c e n t u r y , L o u i s Napoleon,  much m a l i g n e d f o r h i s d i s a s t r o u s a d v e n t u r e s i n f o r e i g n p o l i c y , made • an u n s u c c e s s f u l attempt to s e t h i s b r o t h e r , M a x i m a l i e n , throne o f M e x i c o ,  on  the  He e n c o u n t e r e d u n e x p e c t e d o p p o s i t i o n f r o m M e x i c o  and the U n i t e d S t a t e s , which b r o u g h t t o an end h i s dreams o f empire i n America.  However, w i t h amasing f o r e s i g h t , he saw the s i g n i f i c a n c e  of t h i s narrow s t r i p o f l a n d , the Isthmus o f Panama, and he  realized  the p o t e n t i a l power of any c o u n t r y c o n t r o l l i n g a c a n a l b u i l t this  at  spot.  I t was  not u n t i l the d i s c o v e r y of g o l d i n C a l i f o r n i a , i n  1848-49, t h a t r e a l i n t e r e s t developed i n a p r o p o s a l to b u i l d a c a n a l , e i t h e r t h r o u g h C e n t r a l America or t h r o u g h the Isthmus of Panama, 1881,  Ferdinand  de Lessups,. the famous b u i l d e r of t h e Suez C a n a l ,  s t a r t e d an u n s u c c e s s f u l attempt to b u i l d a c a n a l at Panama. defeated  l a r g e l y by a c o m b i n a t i o n  p h y s i c a l c o n d i t i o n s , and  of c i r c u m s t a n c e s  was  - malaria, unfamiliar  I n 1904,  the  S t a t e s government commenced the a c t u a l c o n s t r u c t i o n of the i t was  He  f i n a n c i a l p r o f l i g a c y - and he abandoned the  scheme at a l o s s o f over 400 m i l l i o n d o l l a r s .  c a n a l , and  In  o f f i c i a l l y opened to t r a f f i c on August 15,  j u s t t e n days a f t e r war was  United present 1914,  d e c l a r e d i n Europe.  Although t h e w o r l d ' s a t t e n t i o n was  centered  on Europe f o r  the n e x t f o u r y e a r s , and,, as a r e s u l t , the c a n a l d i d not have an o p p o r t u n i t y to prove i t s r e a l w o r t h , i t was i t s c o m p l e t i o n was  generally recognized  that  an event o f the utmost s i g n i f i c a n c e , not o n l y t o  (13) t h e U n i t e d S t a t e s , h u t t o the whole w o r l d . in this  E.G.  H e a r s suras i t up  way;  "She opening of t h e Panama C a n a l t o t r a f f i c on August 15, 1914, "brought to a c l o s e another epoch i n t h e m a r i t i m e h i s t o r y of the w o r l d . Old t r a d e r o u t e s gave way t o new; r e g i o n s f o r m e r l y cut o f f f r o m each o t h e r hy h a r r i e r s to easy communication now found t h e m s e l v e s measurably n e a r e r to each o t h e r ; commodities l i m i t e d to • l o c a l d i s t r i b u t i o n found w i d e r markets.. When man completed what n a t u r e so n e a r l y accomplished a l o n g the narrow Isthmus between N o r t h and South A m e r i c a , m i n g l i n g t h e w a t e r o f the A t l a n t i c and the P a c i f i c Oceans, the f o u n d a t i o n was l a i d f o r a new commercial e r a . " ' 2  P r o p h e c i e s i n t h e p a s t , as t o t h e a c t u a l v a l u e of the Panama Canal t o w o r l d t r a d e , have been p r a c t i c a l l y u s e l e s s . i t i s of i n t e r e s t t o n o t e what was and  s a i d by one w r i t e r between  1920, and t o compare h i s p r o g n o s t i c a t i o n s w i t h p r e s e n t  W r i t i n g i n 1913, J.S. M i l s  s a i d , "The  t o keep I t s t r a d e more t o i t s e l f ,  However, 1915  facts.  c a n a l i s g o i n g to help America  I t r e p r e s e n t s i n commerce and 5  economics what t h e Monroe D o c t r i n e r e p r e s e n t s i n p o l i t i c s . " i n 1957,  t h i s prophecy may  Viewed  have "been i n g r e a t measure c o r r e c t , b u t  one would h a r d l y h a i l i t as b e n e f i c i a l i n t h e l i g h t o f p r e s e n t f r o z e n trade conditions.  A g a i n , he s a i d , " A l l t h e c o r n and produce of A l b e r t a  and W e s t e r n Saskatchewan w i l l  f l o w , not e a s t w a r d s a s h e r e t o f o r e , but  t o t h e P a c i f i c shores,...»"  A v e r y p l e a s a n t p r o s p e c t , b u t we  will  see as we p r o g r e s s t h a t up t o t h e p r e s e n t , at l e a s t , t h e W e s t e r n Canada g r a i n prohlem has not been s o l v e d i n so simple a manner as t h a t . 2. H e a r s , op. c i t . , 116. 5. M i l l s , J.S. The Panama C a n a l . 4, i h i d . , 287.  London, 1915,  282..  (14)  5  He a l s o p r o p h e s i e d a l a r g e i n c r e a s e i n t o u r i s t t r a f f i c west c o a s t  from t h e  of N o r t h A m e r i c a t o Europe a s a r e s u l t o f t h e c a n a l -  something which has not m a t e r i a l i z e d a s y e t .  W r i t i n g at a l a t e r date,. P . J . H a s k i n came c l o s e r to t h e f a c t s when he s a i d , "There w i l l h e a sudden r e - a d j u s t m e n t o f e x i s t i n g t r a d e r o u t e s , and t h i s w i l l h e f o l l o w e d by a l o n g e r a o f development o f new c o n d i t i o n s , which w i l l b e so g r a d u a l and  as to b e almost  imperceptible,  y e t so immense a s t o e x c i t e the wonder o f humanity when i t stops 5  t o r e c k o n i t s f u l l e f f e c t and meaning." Developments i n w o r l d  c o n d i t i o n s s i n c e t h e c a n a l was opened  have been much t o o r e v o l u t i o n a r y t o a l l o w one t o more t h a n h a z a r d a guess, i n v e r y g e n e r a l t e r m s , as t o i t s r e a l s i g n i f i c a n c e . t o - d a y , 24 y e a r s a f t e r i t s opening, t h e c a n a l ' s r e a l v a l u e clearly discernible.  Even i s not  I n a p p r a i s i n g t h e s i g n i f i c a n c e of t h e c a n a l i n •  American economic h i s t o r y , Johnson and Huebner say, "In-aa-much a s the c o s t o f t r a n s p o r t a t i o n i s b u t one f a c t o r a f f e c t i n g t h e volume o f f o r e i g n t r a d e , i t i s not to b e e x p e c t e d that  the c a n a l i n i t s e l f 6  w i l l i n s u r e t h e commercial f u t u r e o f t h e U n i t e d S t a t e s . "  In like  manner, n e i t h e r w i l l i t i n s u r e t h e commercial f u t u r e o f Western Canada. Many other  f a c t o r s e n t e r i n t o t h e p i c t u r e , such as f o r e i g n i n v e s t m e n t s ,  b a n k i n g and c r e d i t r e l a t i o n s , t h e u s e o f e f f e c t i v e t r a d e methods, political  c o n t r o l o f markets, and c o u n t l e s s o t h e r  considerations.  5. H a s k i n , E . J . The Panama C a n a l . New Y o r k , 1914, 357. 5. Johnson & Huebner, P r i n c i p l e s of Ocean T r a n s p o r t a t i o n , New York and London, 1929, 92.  .  (15)  However, s i n c e t h e g r e a t e s t highway of t r a v e l i s the s e a , and s i n c e v e s s e l s a r e of tremendous importance a s c a r r i e r s o f p a s s e n g e r s and c a r g o e s , t h e Panama Canal has had and w i l l c o n t i n u e t o have a v e r y marked i n f l u e n c e on the t r a d e of t h e U n i t e d S t a t e s , and upon the t r a d e of t h e whole w o r l d .  So i m p o r t a n t has i t become to the  U n i t e d S t a t e s t h a t t h a t c o u n t r y has been c o n s i d e r i n g f o r some t i m e b u i l d i n g - a second c a n a l t h r o u g h N i c a r a g u a to supplement the one a t Panama.  P e r h a p s i t s r e a l v a l u e would he more d r a m a t i c a l l y i l l u s t r a t e d  I f , by some whim o f n a t u r e c a n a l were d e s t r o y e d .  ( f o r example, an earthquake)  the present  Then, i n d e e d , we would see how much w o r l d t r a d e  has grown to depend on t h i s s h o r t c u t t o and f r o m t h e P a c i f i c ,  F a i l i n g such a d r a s t i c and w h o l l y u n d e s i r e d e v e n t u a l i t y , s t u d e n t s of economics must c o n t e n t themselves w i t h a m i l d e r and more v a l u a b l e form of i n v e s t i g a t i o n .  Undoubtedly,  a l l w i l l agree t h a t  the Panama C a n a l was w o r t h t h e cost i n time and l a b o r , b o t h t o i t s b u i l d e r s and t h o s e who u s e i t , and t h a t i t s p o t e n t i a l v a l u e has y e t to he gauged and a c c u r a t e l y measured. eminent geographers  " I f t h e t i m e e v e r comes, as some  p r e d i c t , when t h e P a c i f i c Coast of N o r t h  America  w i l l s u p p o r t t h e densest p o p u l a t i o n o f the W e s t e r n w o r l d , i t i s s a f e to  s a y t h a t the Panama Canal w i l l have u l a y e d a l e a d i n g r o l e i n t h i s 7 achievement,' 1  7, Mears, op. c i t . , 146.  (16) CHiPTEB I ?  The Canadian economy, and more p a r t i c u l a r l y t h a t of Western Cam da, has been i n f l u e n c e d more t h a n a l i t t l e by t h e c o n s t r u c t i o n of t h e Panama C a n a l .  So f a r , we have seen the d i f f i c u l t i e s e n t a i l e d  i n i s o l a t i n g one phenomenon and a c c u r a t e l y measuring- i t s e f f e c t s . We have seen t h a t no p r o b l e m can be t r e a t e d i n complete i s o l a t i o n , and t h a t the Panama C s n a l i s no e x c e p t i o n .  We s h a l l now t r y t o  estimate  the p a r t i c u l a r advantages or d i s a d v a n t a g e s to Western Canada by t h e c o n s t r u c t i o n of t h i s waterway, not i n t h e l i g h t of a s h o r t  passage  t o Europej n o t Western Canada l o o k i n g w e s t , b u t Western Canada l o o k i n g east.  We s h a l l i n v e s t i g a t e , f i r s t of a l l , t h e g e n e r a l  character-  i s t i c s of Canadian e x t e r n a l t r a d e , from the t u r n o f the c e n t u r y present t i n s .  I n l i k e manner, we s h a l l s t u d y t h e c h a r a c t e r i s t i c s of  W e s t e r n Canadian t r a d e a c t i v i t y w i t h the o u t s i d e w o r l d .  By  observing  these two t o g e t h e r , w i t h p a r t i c u l a r r e f e r e n c e t o c o n d i t i o n s b o t h and a f t e r the o p e n i n g o f the c a n a l , i t may concrete  to the  be p o s s i b l e t o  before  formulate  c o n c l u s i o n s a s t o t h e r e a l and p o t e n t i a l e f f e c t of the c a n a l  upon Western Canadian t r a d e . From t h a t p o i n t , we s h a l l go on t o e x p l o r e t h e c h a n n e l s o f i n t e r n a l t r a d e , t r a d i n g a r e a s , and the more n o t i c e a b l e f e a t u r e s o f  "  (IV)  :  Canadian c e n t e r s of p r o d u c t i o n .  I n t u r n , i t i s proposed t o a n a l y z e  f r e i g h t r a t e s on Canadian r a i l w a y s , t h e i r r e a c t i o n t o water c o m p e t i t i o n ; the development o f B r i t i s h Columbia p o r t s ; new opened up;  t r a v e l r o u t e s and s e r v i c e s  and to a n a l y z e water-horne s h i p p i n g c o s t s , w i t h t h e i r  t i o n to f u e l c o s t s , bunkering f a c i l i t i e s ,  rela-  and the empty tonnage problem.  F i n a l l y , we s h a l l observe t h e s e f a c t o r s as t h e y a r e r e f l e c t e d more p a r t i c u l a r l y i n t h e wheat t r a d e through  Canadian P a c i f i c p o r t s .  I n any study o f " e s t e m Canada, i t must be borne i n mind t h a t the Dominion i s not one compact economic u n i t . 5000  and  m i l e s of v a r y i n g s o i l and c l i m a t e , and,  I t s t r e t c h e s over  a l t h o u g h the r a i l w a y s  waterways h e l p t o b r i n g a semblance o f u n i t y , t h i s v a s t land i s  d i v i d e d i n t o f i v e d i s t i n c t and s e p a r a t e  areas.  On t h e A t l a n t i c C o a s t , t h e M a r i t i m e P r o v i n c e s c o n s t i t u t e an a r e a w e l l s u p p l i e d w i t h h a r b o r s , w h i c h , due t o t h e temperate c l i m a t e , are open the y e a r around.  As a r e s u l t , a g r e a t d e a l of Canada's t r a d e ,  d u r i n g t h e w i n t e r months, f i n d s i t s way thence to t h e markets o f t h e w o r l d . to  t o t h e A t l a n t i c seaboard  and  E c o n o m i c a l l y , t h e Mar i t lines a r e ,  a g r e a t e x t e n t , s u b o r d i n a t e to t h e New  England  S t a t e s to t h e  south,  and a r e i n f l u e n c e d a p p r e c i a b l y by American t r a d e c o n d i t i o n s .  The and Quehec.  Canadian i n d u s t r i a l a r e a i s c e n t e r e d l a r g e l y i n O n t a r i o Due  t o t h i s f a c t , i n l a r g e measure, we  f i n d the g r e a t e s t  p r o p o r t i o n of Canadian p o p u l a t i o n c e n t e r e d i n t h e s e p r o v i n c e s , for  obvious r e a s o n s , t h e two  and,  l a r g e s t f i n a n c i a l c e n t e r s i n t h e Dominion,  (18)  Toronto and M o n t r e a l , a r e l o c a t e d h e r e .  D e s p i t e the f a c t t h a t the S t .  Lawrence R i v e r i s c l o s e d to n a v i g a t i o n f o r f i v e months o f the y e a r , t h i s s e c t i o n c o n s t i t u t e s "by f a r t h e most i m p o r t a n t  o f t h e f i v e economic  units.  To the n o r t h o f Lake S u p e r i o r , i n Western O n t a r i o , l i e s a vast, barren wasteland.  The rugged n a t u r e of t h e t e r r a i n made i t one  o f the most d i f f i c u l t p a r t s of Canada through w h i c h to c o n s t r u c t the r a i l w a y system; f o r the same r e a s o n , v e r y l i t t l e  o f r e a l economic  activity originates herein.  What i s commonly c a l l e d "the Granary o f the Empire" i s s i t u a t e d i n the t h r e e P r a i r i e P r o v i n c e s - Manitoba, Alberta.  Saskatchewan, and  H e r e i n l i e s t h e g r e a t wheat-producing a r e a o f Canada, and  from t h e s e p r o v i n c e s f l o w s the g o l d e n h a r v e s t which i s the  mainspring  o f the Canadian economy.  The  f i f t h a r e a comprises the p r o v i n c e of B r i t i s h Columbia.  Canada's P a c i f i c p r o v i n c e i s e f f e c t i v e l y s e p a r a t e d from the r e s t of the Dominion by t h e Rocky Mountains,  I n many r e s p e c t s , i t resembles  the L i a r i t i m e p r o v i n c e s i n the e a s t ; the c l i m a t e i s much the same, h a r b o r s a r e open the y e a r round, and, t o a g r e a t e x t e n t , i t i s economica l l y s u b o r d i n a t e t o the P a c i f i c C o a s t s t a t e s .  I f we t r a c e t h e Rocky M o u n t a i n range r i g h t dov/n t h r o u g h  the  U n i t e d S t a t e s , we see t h a t i t does not r u n p a r a l l e l to t h e c o a s t , but  -  (19)  :j  on an a n g l e , so t h a t when i t r e a c h e s the s o u t h e r n P a c i f i c s t a t e s , a v a s t i n l a n d empire opens up f r o m t h e mountains to the s e a ,  Geographic-  • a l l y , A l a s k a , B r i t i s h Columbia, Washington, Oregon, Idaho, Nevada, C a l i f o r n i a , U t a h , and A r i z o n a a r e a u n i t i n themselves.  I f i t were  not f o r p o l i t i c a l h o u n d a r i e s , t h i s huge t e r r i t o r y w o u l d be bounded the n o r t h by A l a s k a , on t h e e a s t by t h e R o c k i e s , on the west by P a c i f i c Ocean, and  on the s o u t h by  Consequently,  on  the  Mexico,  i t i s q u i t e e v i d e n t t h a t , w h i l e Western Canada  must he s t u d i e d i n the l i g h t o f i t s p o l i t i c a l and  economic a s s o c i a t i o n  w i t h t h e r e s t of t h e Dominion, c o n s i d e r a t i o n s h o u l d a l s o be g i v e n to the v e r y c l o s e r e l a t i o n s h i p t h a t e x i s t s w i t h the P a c i f i c Coast s t a t e s ,  I t would seem t h e r e are two  important f a c t o r s i n Western  Canadian economic h i s t o r y - the c o m p l e t i o n of the Canadian P a c i f i c R a i l w a y and t h e opening  of the Panama C a n a l ,  w e s t e r n p r o v i n c e from a p u r e l y P a c i f i c the Dominion; from an i s o l a t e d of t h i s v a s t c o u n t r y .  We  The  former  changed Oanada* s  r e g i o n to an economic u n i t w i t h i n  p o l i t i c a l appendage to an i n t e g r a l  s h a l l f i n d t h a t the Panama Canal we.3  part  the  i n s t r u m e n t f o r f u r t h e r economic i n t e g r a t i o n , supplementary to s i m p l e p o l i t i c a l a f f i l i a t i o n , and, as such, has been one developments i n t h e T w e n t i e t h  Century.  of the most momentous  (20) CHAPTER V An a n a l y s i s o f t h e e x t e r n a l t r a d e of Canada, and, more p a r t i c u l a r l y , o f t h e e x t e r n a l t r a d e of the f o u r w e s t e r n p r o v i n c e s , for  the f i r s t 37 y e a r s of t h e T w e n t i e t h C e n t u r y , p r e s e n t s i n i t s e l f  a f o r m i d a b l e problem,  I t i s one worthy o f a g r e a t d e a l o f r e s e a r c h  and s t u d y , and i t c o u l d w e l l be extended to encompass s e v e r a l volumes. I t i s not t h e purpose of t h i s work to attempt a comprehensive economic h i s t o r y of the p e r i o d , b u t an e f f o r t w i l l be made to observe the dominant c h a r a c t e r i s t i c s of Canadian tra.de d u r i n g t h e y e a r s 1900-= 1937. I t i s hoped, i n such a s t u d y , t o d i s c o v e r some of the b a s i c economic t r e n d s , and f i n a l l y  to a t t e m p t to d e s i g n a t e ( b e a r i n g i n mind the  f o r c e s at work, as mentioned i n a p r e c e d i n g c h a p t e r ) what i n f l u e n c e a new sea r o u t e t o Europe had on the economy of t h e w e s t e r n p r o v i n c e s .  For  the s t u d e n t o f economic h i s t o r y , t h e r e i s a v a i l a b l e  a  v/ealth o f raw m a t e r i a l , p a r t i c u l a r l y c o v e r i n g t h e p e r i o d from 1900 on. Of t h i s m a t e r i a l , perhaps t h e most v a l u a b l e a p p e a r s i n t h e group of p u b l i c a t i o n s put out by t h e Dominion B u r e a u o f S t a t i s t i c s ,  In addition,  t h e r e a r e the s e s s i o n a l p a p e r s , p r o v i n c i a l and Dominion government . r e p o r t s , and a h o s t of s h o r t s t u d i e s on p a r t i c u l a r phases of Canadian economic l i f e .  On t h e o t h e r hand, one i s c o n f r o n t e d by a f i e l d  of  s t u d y w h i c h , so f a r , has not been c o v e r e d i n one comprehensive economic h i s t o r y .  C o n s e q u e n t l y , any s t u d e n t d o i n g work on one p a r t i c u l a r  a s p e c t o f Canadian economic problems must g i v e , as b r i e f l y a s p o s s i b l e , a g e n e r a l h i s t o r y of the whole to which he can r e l a t e h i s p a r t i c u l a r  '  1  (21)  d i s c o v e r i e s and  conclusions.  From t h e p o i n t of view of t i m e , the p e r i o d d i v i d e s r e a d i l y i n t o four d i s t i n c t parts. he c l a s s i f i e d ass  F o r convenience' sake, they  1930-1937.  The  l a s t c l a s s i f i c a t i o n may  c o r r e c t , because i t i s g e n e r a l l y c o n s i d e r e d from 1930  t o 1935,  may  ( l ) The E r a of E x p a n s i o n , 1900-1914; (2) The  V/ar, 1914-1920; (3) The Post-War P e r i o d , 1921-1929; and Depression,  itself  and  t h a t , from 1935  were on the up-swing a g a i n .  Great  (4) The  not he  Great  strictly  t h a t the D e p r e s s i o n l a s t e d  on, world economic c o n d i t i o n s  However, t h e r e seems l i t t l e v a l u e i n  ma-king a f i f t h c l a s s i f i c a t i o n c o m p r i s i n g  the two  y e a r s , 1936  and  1937.  I n a d d i t i o n , the o p i n i o n i s h e l d i n c e r t a i n q u a r t e r s t h a t even y e t are not out of the D e p r e s s i o n .  C o n s e q u e n t l y , i t would seem most  c o n v e n i e n t t o c o n s i d e r the l a s t seven y e a r s t o g e t h e r .  It w i l l  be  n o t e d t h a t i n the l a s t 37 y e a r s , t h e r e have been two  "Great"  phenomena - the G r e a t War  This p r e f i x  and  we  the Great D e p r e s s i o n .  economic  may w e l l be i n t e r p r e t e d as something e x t r e m e l y abnormal, and,  there-  f o r e , from t h e p o i n t of v i e w o f the economist i n s e a r c h of b a s i c t r e n d s , t h e y must be t r e a t e d w i t h t h e g r e a t e s t r e s p e c t and I n other words, f o r a l l p r a c t i c a l  p u r p o s e s , out  caution.  of the 37 y e a r s under  o b s e r v a t i o n , a t l e a s t 15 are e x t r e m e l y abnormal.  I t i s g e n e r a l l y a g r e e d that the y e a r 1900 was p o i n t i n Canadian economic h i s t o r y . new  the  I t marked the b e g i n n i n g  turning of a  e r a of e x p a n s i o n and development, u n p r e c e d e n t e d i n t h e h i s t o r y of  (22) the c o u n t r y .  F o r example,  i n t h e decade 1901-1911, p o p u l a t i o n  i n c r e a s e d over 35%, the h i g h e s t i n c r e a s e r e g i s t e r e d i n any c o u n t r y i n t h e w o r l d a t that t i m e .  J o h n Buchan, now L o r d Tweedsmuir, and  a t p r e s e n t G o v e r n o r - G e n e r a l o f Canada, s a i d o f the p e r i o d ,  "Immigrants  poured i n f r o m Great B r i t a i n a l o n e a t t h e r a t e o f from one t o two hundred thousand a y e a r , n e a r l y a l l  t o t h e North-West  ....... A l l  o v e r England and Scotland,, men t a l k e d Canada, and Canadian i n v e s t m e n t s he came e a g e r l y sought a f t e r . u n p r e c e d e n t e d energy.  I m m i g r a t i o n s o c i e t i e s worked  with  Pamphlets showered l i k e autumn l e a v e s over  the B r i t i s h I s l a n d s , and, e v e r y newspaper sent out s p e c i a l c o r r e s p o n d e n t s I n much l e s s c o l o r f u l f a s h i o n , t h e t a b l e f o l l o w i n g (Table 4) g i v e s t h e s t o r y o f t h i s g r e a t development:  TABLE 4. POPULATION GROWTH. (ooo's o m i t t e d ) 1901  1906  1911  1916  1921  1926  1931  B r i t i s h Columbia Alberta Saskatchewan Manitoba  178 73 91 255  279 185 258 366  392 374 49 2 461  456 496 648 554  524 588 757 610  606 608 821 639  694 731 921 700  T o t a l Western. Canada  598  1088  1720  2154  2480  2674  3047  Canada  557 X  6097  7206  8001  8788  9451 10376 11028  Ontario * ( T o r Comparison)  2182  2299  2572 .2713  39 35  3164  3431  1936 750 772 9 <3 X 711 3164  3690  Sources Canada T e a r Book 1937, p. xxx 1. Buchan", John.  The Natl"ons~"of" To-day. B r i t i s h A m e r i c a . Boston'& New" Y o r k , 1923, p.130.  * >  (23)  :  F i g u r e s 1 and 2, on Pages 24 and 25, show the r e l a t i v e changes as e x p r e s s e d i n Tahle 4.  The t o t a l p o p u l a t i o n of Canada  "increased from 5,371,000 i n 1901, t o 7,500,000 I n 1914, an i n c r e a s e , as p r e v i o u s l y mentioned, understates  of 35%.  the p o s i t i o n i n 1914.  T h i s l a t t e r f i g u r e , however, r a t h e r The Dominion f i g u r e s a r e o n l y  g i v e n f o r 1911 and 1916, and i n 1916 t h e p o p u l a t i o n was over  8,000,000.  Since t h e g r e a t e r p a r t of the p o p u l a t i o n i n c r e a s e took p l a c e b e f o r e the o u t b r e a k o f t h e war, i t i s not u n r e a s o n a b l e t o assume t h a t i n 1914 the f i g u r e was v e r y c l o s e to 8,000,000, which i s a n i n c r e a s e of over 5 0 % i n 13 y e a r s .  C o n s i d e r i n g t h e f o u r w e s t e r n p r o v i n c e s , we f i n d a much g r e a t e r p r o p o r t i o n a l i n c r e a s e t h a n t h e g e n e r a l i n c r e a s e f o r a l l of Canada.  I n 1901, the t o t a l p o p u l a t i o n o f Western Canada was o n l y  598,000,  whereas i n 1914 i t was over 2 m i l l i o n , an i n c r e a s e of over  225%.  TABLE 5 POPULATION (000's  B r i t i s h Columhla A l b e r t a ,., Saskat chew an , „ M a n i t o h a »..».•«..*••»•«.••«•.»,.,».» Ontarxo  omitted) Percentage Increase  1901  1914  175 73 90 25 5  4L25 435 575 515  145% 500% 520% 100%  2180  2600  20%  (24) FIGURE 1 GAMBIA! POPULATION- 1901-1956  Thousands 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000  >  2,000 /  / /  /  1,000 900 800 700 600  / /  /  Legends  /  Canada Ontario Western Canada  —f/  /  500 1901  Source;  1906  1911  1916  1921  1926  Canada Y e a r Book, 1957, pp.xxx, x x x i .  1931  1936  (25) FIGURE 2 WESTERN CANADA POPULATION - 1901-1936  Thousands 1,000 900 800  y  700 — —  600 500  y" /s  /  s /  400 / /  300  / / /  //  h 11 i  /'/ /  200  // '•.//:  100 90 80 70  // //  /  4  60 50 40 1901  Sources  •  Legend s B r i t i s h Columbia Alberta Saskatchewa n Manitoba 1906 1911 1916  — -— - —  1921 1926  Canada Tear Book, 1937, pp.xxx, x x x i .  1931 1936  * i  . The  (26)  f o r e g o i n g t a b l e (Table 5) shows where t h e  increase took place.  l a r g e p a r t of t h e  Saskatchewan, a i d A l b e r t a head the  list,  ' B r i t i s h C o l o m b i a and -*£fe-ea?4* r e l a t i v e l y much f u r t h e r b e h i n d . p e r c e n t a g e i n c r e a s e i n M a n i t o b a was for  the whole Dominion), i t was  f i r s t mentioned p r o v i n c e s . outstanding  with While  l a r g e ( a c t u a l l y , over t w i c e  not n e a r l y as pronounced as the  Comparatively speaking, Ontario  advance at a l l f o r t h i s p e r i o d .  Thus, we  225%'  the  that two  showed no  see t h a t the  really  g r e a t development took p l a c e i n the f a r West, p a r t i c u l a r l y i n t h o s e p r o v i n c e s , w h i c h , up t o t h a t t i m e ,  The manifold.  factors responsible  had had v e r y l i t t l e a t t e n t i o n .  f o r t h i s g r e a t development were  I n the words o f A l e x a n d e r B r a d y , "The  has been i n f l u e n c e d a t every t u r n by the and e s p e c i a l l y was a f t e r 1900, i t s way  the s e t t l e m e n t  p r o g r e s s of the  a g e n c i e s of world  country  economics,  of the West promoted by the f a c t t h a t  f o r e i g n c a p i t a l , p r i n c i p a l l y B r i t i s h and American, found 2  i n t o Canada i n i n c r e a s i n g q u a n t i t i e s . "  Such f o r e i g n i n v e s t m e n t s ,  supplemented by l a r g e governmental e x p e n d i t u r e s , p r o v i n c i a l , b u i l t b r a n c h r a i l w a y s , new p l a n t s , e l e v a t o r s , and  both federal  transcontinental lines,  and milling  f a c t o r i e s , thus a d d i n g to Canada's c a p i t a l e q u i p -  ment by m i l l i o n s each year. country,  two  The r a i l w a y s opened up the  i n t e r i o r of the  and brought w i t h i n easy r e a c h o f w o r l d markets the produce of  the f e r t i l e p l a i n s o f A l b e r t a , Saskatchewan, and M a n i t o b a .  At the same  time, p r i c e s were r i s i n g , t h u s a s s u r i n g t h e farmer a good r e t u r n on h i s l a b o r and the c a p i t a l t h a t he had 2, B r a d y , A l e x a n d e r .  Canada,  i n v e s t e d , and  London, 1952,  the w o r l d market f o r  151.  (27) • wheat and. other a g r i c u l t u r a l p r o d u c t s was  r a p i d l y expand!ng.  F i n a l l y , a f a c t o r o f g r e a t i m p o r t a n c e appeared when t h e supply of free land i n the U n i t e d S t a t e s r a n out,  T h i s was  the s i g n a l  f o r a l a r g e i n f l u x o f t r a i n e d American farmers i n s e a r c h of o p p o r t u n i t i e s i n A l b e r t a and Saskatchewan, t o 1916,  new  I n the 15 y e a r s from  1901  e m i g r a t i o n f r o m t h e U n i t e d S t a t e s to Canada amounted t o :  1901 1906 1911 1916  -  17,987 52,796 112,028 41,797  These p e o p l e came to Canada s e e k i n g new  5  o p p o r t u n i t i e s , and t h e y were  w e l l r e p a i d i n b o u n t i f u l h a r v e s t s reaped i n t h e y e a r s w h i c h f o l l o w e d . I t would seem t h a t f o r a s h o r t w h i l e , at l e a s t , Canada d i s p l a c e d t h e U n i t e d S t a t e s as "the l a n d o f p r o m i s e " .  P r e v i o u s l y , the development of the steam r a i l w a y was as one  o f the causes of the g r e a t e x p a n s i o n  of t h i s p e r i o d .  cited  Table  6,  on Page 28 , wi 11 d e m o n s t r a t e more c l e a r l y t h i s development.  I t shows  the t o t a l steam r a i l w a y m i l e a g e i n Canada from 1900  and i n t h e  p r o v i n c e s f r o m 1907  t o 1914.  to 1914,  U n f o r t u n a t e l y , s t a t i s t i c s a r e not  a b l e f o r the r a i l w a y m i l e a g e by p r o v i n c e s p r i o r t o 1907.  avail-  While these  m i l e a g e f i g u r e s do not show as g r e a t a c t u a l ' g a i n s a s the p o p u l a t i o n f i g u r e s , t h e r e i s an e v i d e n t r e l a t i o n s h i p , and t h e t r e n d s seem t o be up i n much t h e same p l a c e s .  3,  Canada Year Book, 1937.  The t o t a l r a i l w a y m i l e a g e of Canada r o s e  p.xxx.  (28) TABLE 6  CANADIAN STEAM RAILWAY MILEAGE - 1900-1914  YEAR  MANITOBA SASKATCHEWAN ALBERTA  1901  -  1902  _  190S  -  1900  1904  -  1905  BRITISH COLUMBIA  _  -  -  -  -  18,140  -  18,714 18,988  _  -  ONTiffiK  17,657  _  -  CANADA  -  _  19,431 20,467  —  1906  -  190?  3,074  2,025 •  1,323 _  1,686  22,452  7,638  1908  3,111  2,081  1,323  1,753  22,966  7,925  1909  3,205  2,631 '  1,322  .' 1,796  24.104  8 229  21,353  y  1910  3,221  2,932  1,488  1,832  24,731  8,250  1911  3,466  3,121  1,494  1,842  25,400  8,322  1912  3,520  3,754  1,897  1,855  26,72?  8,546  1913  3,993  4, 651  2,212  1,951  29,304  9,000  IS 14  4,076  5,089  2,545  1,978  30,795  9,255  %age Inc., 1907-1914  Source;  30%  150%  95%  Canada Year Book, 1914, p.471-2.  18%  40%  21%  . >,  (29)  from 17,657 m i l e s i n 1900  to 30,795 m i l e s i n 19.14, an i n c r e a s e of about  75%.  f o r Canada was  The m i l e a g e i n 1914  22,452 m i l e s i n 1907, a short period.  The  an i n c r e a s e of about 40% - no s m a l l item i n such, p r o v i n c i a l f i g u r e s show where the major p a r t o f  t h i s expansion took place. 150%,  30,795 m i l e s , as a g a i n s t  Saskatchewan had t h e g r e a t e s t i n c r e a s e w i t h  A l b e r t a next w i t h 95%, M a n i t o b a 30%, and B r i t i s h Columbia was  poor f o u r t h w i t h 18%.  I t i s q u i t e obvious,, of c o u r s e ,  a  t h a t the v e r y •  n a t u r e o f the B r i t i s h Columbia t e r r a i n p r e c l u d e d any g r e a t m i l e a g e expansion,  and i t w i l l a l s o be remembered t h a t B r i t i s h Columbia and  M a n i t o b a were f a r o u t c l a s s e d by the two c e n t r a l w e s t e r n p r o v i n c e s i n p o p u l a t i o n growth.  A g a i n , O n t a r i o s e r v e s as a s p l e n d i d  illustration  o f t h e d i f f e r e n c e i n e x p a n s i o n between t h e e a s t and t h e west.  At t h i s p o i n t , i t may be most e x p e d i e n t as i t were, Canadian e x t e r n a l t r a d e development. g i v e s the v a l u e i n d o l l a r s of Canadian e x p o r t s and from 1900  t o 1936.  off  f o u r p e r i o d s have been marked  B r a of E x p a n s i o n , 1900-1914; (2) The  1914-1920| (3) The Post-War P e r i o d , 1920-1929; and Depression,  The of expansion.  i m p o r t s each y e a r  The two g i v e t h i s p i c t u r e i n as few words as  For convenience* sake, the  i n r e d ; ( l ) The  Table 7, on Page 30,  F i g u r e 3, on Page 31, i s the same i n f o r m a t i o n  illustrated graphically. possible.  to see, i n one p i c t u r e ,  Great  (4) The  War,  Great  1930-1937.  f i r s t p e r i o d , as the g r a p h shows very c l e a r l y , was Except f o r t h e f i r s t t h r e e y e a r s , i m p o r t s exceeded  every y e a r from 1900  t o 1914.  T h i s , of course, was  due  to the  an  era  exports  large  (33) TABLE 7 CANADIAN  IMPORTS MB  EXPORTS -  (000'g omitted)  1900-1936  — — —  YEAR  IMPORTS  EXPORTS  YEAR  1900  #172,651  #183,25?  1920  #1,064,528  $1,286,658  1901  177,930  194,509  1921  1,240,158  1,210,428  1902  196,737  209,970  1922  747,804  753,927  1903  225,094  225,229  192 5  802,579  945,295  1904  243,909  211,055  1924  893,366  1,058,763  1905  251,964  201,472  1925  796,932  1,081,361  1906  283,740  246,657  1926  927,328  1,355,912  1907*  250,225  192,087  1927  1,030,892  1,269.584  1908  352,540  265,368  1928  1,108,956  1,256,152  1909  288,594  259,922  1929  1,265,679  1,593,445  1910  370,518  298,763  1930  1,248,273  1,144,938  1911  452,724  290,000  1931  906,612  817,028  1912  522,404  307,716  195 2  578,503  611,253  1913  671,207  577,068  1953  406,385  534,978  1914  619,195  455,437  1934  435,798  672,265  1915  455,955  461,442  1955  522,431  764,284  1916  508,201  779,500  1956  552,719  862,472  1917  846,450  1 ,179,211  1918  965,552  1 ,586,169  1919  919,711  1 ,268,765  *1907 - Nine months o n l y . Sources Canada Y e a r Book, 1957, p.524.  IMPORTS  .  EXPORTS  i  (32)  volume of c a p i t a l f l o v i n g i n t o t h e c o u n t r y , t o g e t h e r v / i t h the other f a c t o r s p r e v i o u s l y mentioned. between 1900 and 150%,  1914,  from 183 m i l l i o n to 455 m i l l i o n , o r  approximately  i m p o r t s expanded even more n o t i c e a b l y , from 172 m i l l i o n i n  t o 619 m i l l i o n I n 1914, 1913,  W h i l e the e x p o r t s i n c r e a s e d r a p i d l y  an i n c r e a s e o f over 280%,  1900  A t t h e peak y e a r ,  i m p o r t s exceeded e x p o r t s by $363,491,000j t h a t i s t o say, the  v a l u e o f i m p o r t s was  more than t w i c e a s g r e a t as t h a t of e x p o r t s .  t h i s t i m e , development was a t i t s h e i g h t , and c a p i t a l was the c o u n t r y a t a g r e a t  pouring into  rate.  The second p e r i o d saw a r e v e r s a l o f the t r a d e b a l a n c e , by 1915,  i m p o r t s and e x p o r t s were p r a c t i c a l l y e q u a l .  n o t i c e d here t h a t w h i l e imports decreased, F r o p 1915  At  It will  and  be  exports continued t o increase.  on, b o t h showed a sharp g a i n , u n t i l i n 1918  e x p o r t s reached  a  new h i g h p o i n t o f $1,586,169,000, w h i c h exceeded i m p o r t s by (5622,637,000, o r n e a r l y 65%. t h e r e was  Of c o u r s e , i t must be remembered t h a t a t t h i s time,  a c o n s i d e r a b l e d i s c r e p a n c y between the d o l l a r v a l u e of i m p o r t s  and e x p o r t s and t h e i r ' a c t u a l volume.  T h i s was  i n f l a t i o n w h i c h t o o k p l a c e d u r i n g t h e war.  due to t h e e x t e n s i v e  I n v i e w of the f a c t t h a t  such a p e r i o d of a b n o r m a l i t y wi11 throw l i t t l e l i g h t on the main purpose of our i n v e s t i g a t i o n , i t i s h a r d l y n e c e s s a r y to d e f l a t e t h e s e v a l u e s to a comparative  scale.  I t i s s u f f i c i e n t t o say t h a t t h e  war  p e r i o d i s much t o o abnormal t o show any e f f e c t s of t h e Panama C a n a l e i t h e r on C a n a d i a n t r a d e as a whole or t h a t of W e s t e r n Canada.  To c o n t i n u e w i t h t h e t h i r d phase, we  find that exports  still  (53) exceeded i m p o r t s d u r i n g t h i s p e r i o d .  T h i s was  due t o s e v e r a l f a c t o r s ,  c h i e f among them b e i n g i n t e r e s t payments on d e b t s , good wheat c r o p s ( p a r t i c u l a r l y f r o m 1925  o n ) , and a s h r i n k a g e i n t h e amount o f f o r e i g n  c a p i t a l a v a i l a b l e f o r investment.  I t w i l l he n o t i c e d t h a t f r o m  1925  on, t h e v a l u e of i m p o r t s g r a d u a l l y began to approximate that o f e x p o r t s , w h i c h would seem t o i n d i c a t e , among other t h i n g s , t h a t , w i t h r e t u r n i n g good t i m e s , i n v e s t m e n t s S h o r t l y a f t e r t h e c l o s e of t h e War, i n a l l t r a d e , hut  i n Canada were on t h e up-grade. i n 1922,  t h e r e was  from t h a t time on, up t o 1929,  a sharp  depression  Canadian t r a d e showed  a marked up-swing.  I t i s he Id by some e c o n o m i s t s War,  t h a t Canada, hut f o r t h e World  would have c o n t i n u e d t o import more than she e x p o r t e d f o r a t  l e a s t the f i r s t 50 y e a r s o f t h e T w e n t i e t h C e n t u r y .  Whether t h i s  he  t r u e o r not, i t i s c e r t a i n t h a t the war d i d do a g r e a t d e a l t o change b o t h t h i s c o u n t r y and to g r e a t e x p o r t e r s . was  another i m p o r t a n t  the U n i t e d S t a t e s from g r e a t i m p o r t i n g c o u n t r i e s As f a r as Canada was  concerned,  however, wheat  f a c t o r i n t h i s development, and i t i s a l t o g e t h e r  d o u b t f u l t h a t the Dominion w o u l d have m a i n t a i n e d her b a l a n c e o f imports i n e x c e s s o f e x p o r t s f o r a n y t h i n g l i k e 50 y e a r s . the c o u n t r y ' s e x p o r t a b l e s u r p l u s of wheat was  Prom 1900 t o  1914,  not v e r y l a r g e ; f r o m  1920  on, t h i s s u r p l u s grew y e a r by y e a r , and, a s i t grew, Canada came to depend more and more on the w o r l d wheat market as a source of p r o s p e r i t y . To quote t h e a u t h o r s o f the Canada T e a r Book, " E x p o r t s r e p r e s e n t  the  s a l e i n w o r l d markets o f s u r p l u s p r o d u c t s of Canadian farms, mines,  *  (34)  f o r e s t s , f i s h e r i e s , and f a c t o r i e s , and, when t h e r e i s a ready s a l e f o r s u c h p r o d u c t s a t p r i c e s p r o f i t a b l e t o the p r o d u c e r , l a r g e e x p o r t s 4 • r e s u l t i n p r o s p e r i t y i n Canada."  The t r a n s f o r m a t i o n o f Canada from a c o u n t r y l a r g e l y dependent upon i m p o r t s f o r i t s p r o s p e r i t y , a s wss the case up t o 1914, t o one d e p e n d i n g on exports,, i s b e s t i l l u s t r a t e d by t h e change i n t y p e o f commodities making up the l a r g e r p a r t o f Canadian t r a d e .  T a b l e 8, on  Pages 35 and 36, shows t h e t e n most i m p o r t a n t Canadian i m p o r t s and e x p o r t s by v a l u e i n t h e y e a r s 1900, 1910, 1920, 1930, and 1936, A c l o s e study o f t h i s t a b l e b r i n g s out some v e r y i n t e r e s t i n g  C o n s i d e r i n g the i m p o r t s , what do we f i n d ?  facts.  F i r s t o f a l l , the  inward movement o f Cane.dian t r a d e was much more d i v e r s i f i e d than t h a t outward.  As may be seen from the t a b l e , t h e t e n most v a l u a b l e commodi-  t i e s o n l y make up s l i g h t l y under 40% o f the t o t a l i m p o r t s .  This r a t i o  has been q u i t e c o n s t a n t s i n c e t h e t u r n o f t h e c e n t u r y , and i t would seem t h a t , on t h e whole, Canada buys a f a i r l y wide range o f commodities. B o r i n g the 56-year p e r i o d , t h e r e l a t i v e importance o f the v a r i o u s commodities bought has changed a g r e a t d e a l .  F o e l has always been an  important p a r t o f Canadian i m p o r t s - c o a l up t o 1930, and crude p e t r o l e u m and c o a l i n 1936. I n 1910, s e t t l e r s ' e f f e c t s amounted t o over t e n m i l l i o n d o l l a r s , and r a n k e d s e v e n t h on t h e l i s t ; a t no other t i m e d i d t h i s i t e m a t t a i n such Importance.  Among t h e c o n s i s t e n t l y h i g h commodities  are r o l l i n g m i l l p r o d u c t s , c o t t o n and w o o l l e n goods,  4, Canada Year Book, 1937, p.505.  sugar end i t s  (35) TABLE 8 TEN LEADING CANADIAN IMPORTS AND EXPORTS. 1900 - 1936.  ~ %AGE VALUE OF * TOTAL :  IMPORTS  VALUE OF * TOTAL  1900 Rolling- M i l l Products Coal W o o l l e n Goods Sugar and P r o d u c t s G r a i n and P r o d u c t s C o t t o n Goods ' Raw H i d e s & S k i n s S i l k Goods Wood (unmanufactured) Tea Total T o t a l Canadian Imports 1910 Coal W o o l l e n Goods C o t t o n Goods R o l l i n g M i l l Products Sugar and P r o d u c t s M a c h i n e r y (except farm) Settlers' Effects Raw C ot t on Fruits Wood (unmanufactured) Total • T o t a l Canadian Imports 1980 Sugar and P r o d u c t s Goal. C o t t o n Goods Woollen Goods R o l l i n g M i l l Products M a c h i n e r y ( e x c e p t farm) Raw C o t t o n Fruits S i l k Goods Hides & S k i n s Total T o t a l Canadian  Imports  EXPORTS 1900 P l a n k s and Boards Cheese Gold (Raw) Meats Wheat Fish Cattle Butter Goal F r u i t s ( c h i e f l y apples) Total' T o t a l Canadian E x p o r t s  27.5 20.8 17,9 15* 7 15.0 14.7 10.3 9 «» 4 8.3  5% 5% 4% 4% 4% 3% 3% 2%  8.3  147.9 59% 370.3 100%. 73,6 I/O 60,1 pfiT 4-9.1 O/o 45,4 rip/ 40.0 O/o 36,7 3% 3*D# 9 35,5 3%~ 31»3 3% i2S • 7_J2% 42674 39% 1 064,5 100%  * V a l u e - M i l l i o n s o f Dol i a r s  1910 Wheat Planks & Boards Cheese Fish S i l v e r Ore Wheat F l o u r Gattle • Meats Wood P u l p Copper Ore & B l i s t e r Total T o t a l Canadian  Exports  1920 Wheat Meats Wheat F l o u r P l a n k s & Boards Newsprint & Paper Cattle Wood P u l p Fish Cheese Sugar and P r o d u c t s Tot a l T o t a l Canadian E x p o r t s  22,0 19 ^ 9 14.1 13.6 12.0 10.6 8.7 4.6 3»3  113.9 183.2 52.6 33,1 21.6 15.2 15.0 14.9 10.8 8,0 6.0 6.0 183.2 298,8 185,0 96,2 94.5 75,2 53,6 46,1 41,4 40.7 36,3 30 .7 699.5 ,286,7  12% 11%' 8%" 7% 7% 6%'5% 3%" 5% _2% 64% 100%  18% 11%' 7% 5% 5%" 5%  100$ 14%" 7% 7% S%  • 4% 4% 3/ 3% %> 3% 2% 53% 100*of  (36) TABLE 8, CONED. j g N JgADING CANADIAN nTOWSSJ^_2^(WPS,  IMPORTS  VALUE *  "%AG2 OP TOTAL  1930 M a c h i n e r y (except farm) 6% R o l l i n g M i l l Products 5% Goal 4$ Crude P e t r o l e u m 4% A l c o h o l i c Beverages 4% E l e c t r i c Apparatus 3% Auto P a r t s • 3% Automobiles 3% Fruits 3% W o o l l e n Goods Zfo Total 1248,3 100% T o t a l Canadian Imports  1900-1936  EXPORTS 1930 Whe a t Newsprint P l a n k s & Boards Wheat F l o u r Wood P u l p Copper Ore & B l i s t e r Automobiles Fish G o l d (Raw) Whi skey Total  * Value - M i l l i o n s o f D o l l a r s ,  Canada Year Book, 1937, p.515,  %AGE OP TOTAL 18% 13%  4%  4% 4% 3% 3% 3% 3% _2% 57% 00%  T o t a l Canadian E x p o r t s  19-36 19 35 35. 6 6% Wheat Crude P e t r o l e u m 3s3 ® 8 6% Newsprint Coal 24*8 4% Gold B u l l i o n R o l l i n g M i l Products 4% Nickel Auto P a r t s 21,9 4% Wood P u l p M a c h i n e r y ( e x c e p t farm) 20.3 4% P l a n k s & Boards Fruits JL9 ^ 2 3% Pish Sugar and P r o d u c t s Meats 17 a 2 Sfo Raw C o t t o n is ®0 3% Automobiles C o t t o n Goods 12.1 2% Copper i n forms Vegetable O i l s 220.6 • 39% Total Total 562.7 100% T o t a l Canadian E x p o r t s T o t a l Canadian I m p o r t s  Sources  VALUE  148.6 90,8 83,4 41.6 28,1 27.6 24.4 24. 2 25»S 23,7 516,3 862.5  17% 10% 9% 5% 3% 3% 3% 3% 3% 3% 59% 100%  • ,  (37)  •by-products, machinery,  and f r u i t s ; most o f t h e s e r e p r e s e n t common  a r t i c l e s f o r consumption i n a young p i o n e e r i n g c o u n t r y . • y e a r s , t h e g r o w t h I n importance  In later  o f a u t o m o b i l e s and a u t o m o b i l e p a r t s  has b e e n most n o t i c e a b l e ; they appear i n t h e f i r s t t e n i m p o r t s i n 1930, r a n k i n g e i g h t h and seventh r e s p e c t i v e l y , w h i l e i n 1956, p a r t s rank 4 t h .  Automobiles  automobile  do not appear i n the r a n k i n g i n 1956,  to t h e f a c t t h a t American m a n u f a c t u r e r s  due  have e s t a b l i s h e d a s s e m b l i n g  p l a n t s i n Canada i n order t o escape t h e h i g h d u t i e s on imported c a r s .  T u r n i n g to the e x p o r t s , we f i n d an e n t i r e l y situation.  different-  I n each o f t h e f i v e y e a r s under c o n s i d e r a t i o n , the t e n  h i g h e s t commodity v a l u e s have c o n s t i t u t e d a t l e a s t e x p o r t s , and as h i g h as 64% i n 1S00.  55% o f the t o t a l  As i n t h e c a s e of i m p o r t s , t h e r e  has he en some c o n s i d e r a b l e change i n t h e r e l a t i v e importance v a r i o u s commodities. list,  I n f o u r y e a r s out o f f i v e , wheat has headed the  as t h e most important Canadian e x p o r t .  e x p o r t s i s i n c l u d e d , we the e x p o r t s i n 1910,  I f t h e v a l u e of f l o u r  f i n d t hat the two t o g e t h e r const i t u t e 25% of  21% i n 1920,  22% i n 1930,  and 19% i n 1956,  time goes on, we see t h i s one p r o d u c t m a i n t a i n i n g a v e r y p l a c e i n Canadian t r a d e . from 1930  of t h e  As  important  I n the l a t e r y e a r s o f t h e p e r i o d , n o t i c e a b l y  on, n e w s p r i n t and wood p u l p have i n c r e a s e d i n importance,  and  we f i n d the two, wheat and i t s b y - p r o d u c t s and wood p u l p and i t s by-products, i n 1950,  combine t o make up 28% o f the Canadian e x p o r t s i n 1920,  and 32% i n 1936,  T h i s "brings us t o a very i n t e r e s t i n g  comparison  between  59%  * i  (38)  i m p o r t s and e x p o r t s . 39% o f t h e t o t a l  I n 1920, t h e f i r s t t e n imports  constituted  o f a l l i m p o r t s , w h i l e o n l y two o f t h e e x p o r t s made  •up over 2 8 % o f t h e t o t a l o f a l l e x p o r t s .  Comparing the a c t u a l  v a l u e s , we f i n d the t e n i m p o r t s t o t a l l e d 426.4 m i l l i o n d o l l a r s ,  while  wheat and wood p u l p , i n c l u d i n g f l o u r and n e w s p r i n t , amounted t o 374.3 million dollars. the same.  A g a i n , i n 1950 and 1956, t h e s i t u a t i o n was much  I n 1930, t e n i m p o r t s c o n s t i t u t e d 58% o f the t o t a l  imports,  w h i l e t h e two e x p o r t s mentioned above made up 39% o f t h e t o t a l e x p o r t s . A c t u a l l y , two commodities c o n s t i t u t e d a g r e a t e r percentage e x p o r t s t h a n d i d t e n commodities o f the t o t a l i m p o r t s . v a l u e s , t h e former amounted t o 451.6 m i l l i o n , million?  t h e two were p r a c t i c a l l y  two e x p o r t s had a d o l l a r  of t h e t o t a l  In dollar  and t h e l a t t e r 459.2  equal i n v a l u e .  I n 1936, t h e s e  value o f 283.9 m i l l i o n , as a g a i n s t 220,6  m i l l i o n f o r the t e n c i t e d  leading imports.  and wood p u l p p r o d u c t s a c t u a l l y i m p o r t s by over 60 m i l l i o n s  Our t o t a l e x p o r t s of wheat  exceeded t h e sam o f t h e t e n l a r g e s t  of d o l l a r s ;  i n f a c t , t h e value o f t h e s e  two e x p o r t s was 54% of the t o t a l v a l u e o f a l l p r o d u c t s imported  Into  Canada i n 1936,  One f i n a l some f u r t h e r l i g h t  comparison between e x p o r t s and i m p o r t s w i l l on the s u b j e c t .  throw  I n 1920, the t o t a l v a l u e of the  t e n l e a d i n g e x p o r t s from Canada was 699»5 m i l l i o n s  of d o l l a r s ,  was 65% of t h e t o t a l o f a l l i m p o r t s i n t o t h e c o u n t r y .  I n 1930, the  v a l u e of the former was almost unchanged a t 669.4 m i l l i o n s but was o n l y 55%" of t h e t o t a l o f a l l i m p o r t s .  which  of dollars,  I n 1936, i t was  lower.  ' >.  (39)  at 516.3 m i l l i o n s of d o l l a r s , b u t e q u a l l e d 95%" of t h e t o t a l of a l l i m p o r t s i n t o Canada.  From t h e f o r e g o i n g , we f i n d s e v e r a l important f a c t s . 1920,  Since  Canada has depended more and more on her a b i l i t y to s e l l i n  w o r l d markets one or two p r i m a r y p r o d u c t s , the produce of t h e f i e l d and f o r e s t .  Her p o s i t i o n a f t e r t h a t d a t e changed from t h a t o f a  c o u n t r y r e l y i n g l a r g e l y on f o r e i g n c a p i t a l f o r investment,  to one  depending on f o r e i g n b u y i n g power as a s o u r c e o f p r o s p e r i t y .  Con-  s e q u e n t l y , a n y t h i n g which a f f e c t s Hie a b i l i t y o f the other n a t i o n s o f the w o r l d t o buy t h e s e p r i m a r y commodities r e f l e c t s f8.vora.bly or u n f a v o r a b l y on t h e smooth f u n c t i o n i n g of t h e Canadian economic machine. I t i s r e f l e c t e d i n h i g h or low wages. I n a h i g h or low s t a n d a r d of l i v i n g , i n an unemployment problem o r work f o r t h e Canadian p e o p l e . I t s impact finance,  i s felt  i n i n d u s t r y , i n a g r i c u l t u r e , i n m i n i n g , . and i n  Thus, we may draw t h e b r o a d c o n c l u s i o n t h a t any development  which f a c i l i t a t e s t h e d i s t r i b u t i o n o f Canadian p r o d u c t s i s o f v a l u e t o t h e economic w e l l - b e i n g o f t h e c o u n t r y a s a whole. we p r o g r e s s , t h a t t h e Panama C a n a l was a v e r y potent  We s h a l l s e e , a s f a c t o r i n the  development o f t h e Canadian t r a n s p o r t a t i o n system, and, as such  3  improved Canada* s p o s i t i o n i n t h e w o r l d market i n c e r t a i n d e f i n i t e respects.  B e f o r e g o i n g on t o study the t r a d e of Western Ca.na.da i n d e t a i l , i t might be as w e l l to r e v i e w two more f a c t o r s i n the g e n e r a l t r a d e o f t h e Dominion a s a whole.  These a r e , f i r s t , the o r i g i n o f  • •  (40)  our i m p o r t s and t h e d e s t i n a t i o n . o f our e x p o r t s , and, second, t h e t r a d e agreements between t h i s c o u n t r y and o t h e r n a t i o n s ,  C a n a d i a n t r a d e w i t h t h e U n i t e d S t a t e s c a n be s a i d to be t h a t l e a s t a f f e c t e d by such development as t h e opening of the Panama Canal,  \Vhile i t i s u n d o u b t e d l y t r u e t h a t t h e r e i s t r a d e between t h e  e a s t coast of t h e U n i t e d S t a t e s and t h e west coast of Canada, i t i s i m p o s s i b l e t o f i n d out j u s t what the volume i s , and f o r our purposes i t i s c o m p a r a t i v e l y s a f e a r b i t r a r i l y to e l i m i n a t e a l l U n i t e d S t a t e s t r a d e w i t h Canada,  At l e a s t , i n so d o i n g , we s h a l l see the r e l a t i v e  importance o f our o v e r s e a s t r a d e i n r e l a t i o n t o our t r a d e w i t h t h e United States,  Table 9 , on Page 4 1 , g i v e s the p e r c e n t a g e o f Canadian e x p o r t s which a r e d e s t i n e d f o r (a) the U n i t e d S t a t e s , and (b) Other F o r e i g n C o u n t r i e s ; a l s o the p e r c e n t a g e of Canadian i m p o r t s which o r i g i n a t e i n (a) the U n i t e d S t a t e s , and (b) Other F o r e i g n Countries,. •Figure 4, on Page 42, i l l u s t r a t e s t h e p r o p o r t i o n of Canadian e x p o r t s which go to t h e U n i t e d S t a t e s and t o other c o u n t r i e s .  F i g u r e 5, on  Page 43, shows the p e r c e n t a g e o f i m p o r t s f r o m t h e U n i t e d S t a t e s and from o t h e r c o u n t r i e s .  These two i l l u s t r a t i o n s f u r t h e r s e r v e t o i n d i c a t e  the r e l a t i v e importance t o Canada of h e r e x p o r t s to overseas c o u n t r i e s . W h i l e t h e U n i t e d S t a t e s i s a good customer, and buys from 25% t o 40% o f our e x p o r t s a n n u a l l y , Canada buys a much l a r g e r r e l a t i v e p r o p o r t i o n o f h e r imports from the U n i t e d S t a t e s ; i n o t h e r words, from the  (41) TABLE 9 THE PERCENTAGE OF CANADIAN EXPORTS AND IMPORTS TO AND FROM COUNTRIES OTHER THAN THE UNITED STATES.  YEAR  EXPORTS  1900  66%  1901  62  1902  IMPORTS  YEAR  EXPORTS  1W0W  41%  1920  63%  25%  40  1921  54  31  66  42  19 22  60  51  1903  69  43  1925  60  33  1904  67  41  1924  59  55  1905  63  59  1925  61  36  1906  64  40  1926  64  S3  1907  66  40  1927  63  35  1908  63  42  1928  61  35  1909  65  41  1929  65  31  1910  63  41  1950  54  32  1911  62  39  1951  56  35  1912  65  57  1932  57  39  1913  61  55  19 3 3  63  43  1914  62  56  1934  67  45  1 9 10 -  58  35  1955  60  42  1916  73  27  1936  58  45  191?  76  21  1918  75  18  1919  63  18  .  Source: Canada Year Book, 19 37 f,  «  529. ,  (42)  (43)  in to in tO  <#  co to  e CQ  co • W i—i to CM  «  EH  r-i  to C O o o to 9i  P  w EH O  CM 0 3 CM  c-  O fe <o fl in  /  CM  s  ' «  CM  m  CM  EH  to  m '61  FH  CM  co  m  \  w  CM  EH  \  u co l-H  8 o  rH  o fe  CM  'id  in  0 3 EH  o Bi  CO r-i  fe  CO r-H  CO  £>-  s  /  s  to  /—1  M  S3 r-H m  /  V  O  fe o  <# r-i  fl  to .-1  o  <M EH  H O  r-(  CM  m«  '•H  o to  cn O  /  CO  m  o it o to o in •o  O  fH  o S  aS si  /  \  \  t—i  .d -p  CD  /  CO  o  o  o m  I  !>-  CD  o fH  8  !25  o  o  o  •rH  3 CO  CO  o as  S3  o  fl  \1  CM  o o. 0'<s'< o> O  O  \  o (§ to c5 o fe o  ©  cr>  O cn i—!  '  (44)  1  standpoint  of i m p o r t s ,  other  c o u n t r i e s s u p p l y us  s m a l l p r o p o r t i o n - d u r i n g t h e war, o n l y 18/o any  o f ov.r t o t a l  y e a r has  from us  b e e n 45%.  a very  thus, the  purchases, On t h e  and  the  economic  most  total  relatively  reasons, they  they  countries  For  a brief  s u c h g o o d s becomes a n  e v e r more  the p r e s e n t relation  adopted.  April  12,  1907,  still  the B r i t i s h  i n o p e r a t i o n to-day.  of d u t i e s - B r i t i s h maintained  t h e New  I t r e v i s e d and b r o u g h t up  t h e U n i t e d K i n g d o m and  complete  the B r i t i s h p r e f e r e n c e  earlier  E m p i r e , and,  later.  agreements w i t h  t a r i f f contained  "those  was  f o r t h e most p a r t , i s  i n t e r m e d i a t e , and to  to  their  C a n a d i a n Customs T a r i f f to date  T h i s new  preferential,  be d i s c u s s e d  countries  f r o m 1907  s i g n i f i c a n c e i n C a n a d i a n t r a d e , and  t o the t r a n s p o r t a t i o n system w i l l  On  be  other  a g r e e m e n t s n e e d o n l y he ' r e v i e w e d  time; t h e i r  important  system.  r e f e r e n c e to t a r i f f r e l a t i o n s h i p s w i t h  our p u r p o s e s , t h e s e  take  s a l e s i n f o r e i g n markets;  A g e n e r a l a n a l y s i s of Canadian t r a d e would not without  supplied  have s u p p l i e d i n  other hand, overseas  l a r g e p r o p o r t i o n o f our  a b i l i t y t o market  f u n c t i o n of our  for obvious  with a  three  general  p a r t s of the  columns - and i t  Empire which  5 were a l r e a d y has  enjoying i t under previous  been extended, a t  one  almost a l l p a r t s of the  time  or. a n o t h e r ,  Since  u n t i l i t now  1907,  i t  applies to  Empire, i n c l u d i n g p r o t e c t o r a t e s , mandates,  spheres of i n f l u e n c e .  5.  measures".  C a n a d a Y e a r B o o k , 1957,  p.487.  and  *  (45)  j  Independent o f B r i t i s h p r e f e r e n t i a l agreements, an agreement was e n t e r e d i n t o "between Canada and t h e B r i t i s h West I n d i e s i n 1912, • T h i s was broadened i n 1920 by a second agreement, and s t i l l f u r t h e r extended i n 1927,  I t now i n c l u d e s J a m a i c a , T r i n i d a d , Barbados, Bahamas  Leeward I s l a n d s , Windward I s l a n d s , Bermuda, B r i t i s h Guiana,  and B r i t i s h  Honduras, and has produced a v e r y p r o f i t a b l e t r a d e between Canada and those c o u n t r i e s .  P r i o r t o t h e I m p e r i a l Conference i n 1932, t h e U n i t e d Kingdom government g r a n t e d p r e f e r e n c e s to Empire p r o d u c t s " w i t h i n t h e l i m i t e d 6 scope o f her t a r i f f at t h a t t i m e , "  T h i s t o o k p l a c e i n 1919, and  c a r r i e d on u n t i l a new t r e a t y was e n t e r e d i n t o between Cans.da and the U n i t e d Kingdom a t the Conference i n 1932,  T h i s agreement  "guaranteed  as p a r t o f a l a r g e r scheme o f r e c i p r o c a l p r e f e r e n c e s , t h a t Canadian goods would he exempt f o r f i v e y e a r s from d u t i e s e s t a b l i s h e d by the , • 7 Import D u t i e s A c t o f 1932," A new agreement was s i g n e d w i t h t h e U n i t e d Kingdom i n 1937, which i s now i n e f f e c t .  I t maintains  reciprocal  p r e f e r e n c e s and remains i n f o r c e u n t i l 1940 and t h e r e a f t e r u n t i 1 e i t h e r o f the c o n t r a c t i n g p a r t i e s t e r m i n a t e s i t by s i x months' n o t i c e , A t r a d e agreement was e n t e r e d i n t o w i t h A u s t r a l i a i n 1925, and f u r t h e r e n l a r g e d i n 1931,  L a t e r , i t was extended to i n c l u d e New  Zealand, and from t i m e to t i m e m o d i f i e d .  I n 1932, the I r i s h Free S t a t e  was a c c o r d e d b e n e f i t s s i m i l a r to t h e lowest r a t e s f o r s i m i l a r charged  on t h e goods of any c o u n t r y .  6. Canada Year Book, 1937, p.487. 7, i b i d , , p,488.  products  I n t h e same y e a r , agreements were  * \  (46)  e n t e r e d i n t o with. South A f r i c a and Southern R h o d e s i a ,  I n 1933. an  agreement was concluded between t h i s c o u n t r y and France, and i n 1956, a m o s t - f a v o r e d - n a t i o n agreement was e n t e r e d i n t o w i t h P o l a n d .  "Under  mutual m o s t - f a v o r e d - n a t i o n customs t r e a t m e n t , each c o n t r a c t i n g c o u n t r y a c c o r d s t h e goods o f t h e other the lowest d u t i e s a p p l i e d t o  similar 8  p r o d u c t s o f any f o r e i g n o r i g i n , u n l e s s t h e r e a r e r e s e r v a t i o n s . "  In  1936, a l s o , an exchange o f n o t e s t o o k p l a c e between Canada and B r a z i l , i n w h i c h t h e former g r a n t e d i n t e r m e d i a t e t a r i f f r a t e s i n r e t u r n f o r the B r a z i l i a n minimum o r lowest t a r i f f . T h i s c o n s t i t u t e s a b r i e f r e v i e w of Canadian t a r i f f  relations  w i t h o t h e r c o u n t r i e s from 1907 on, and w h i l e i t does n o t c o v e r every agreement e n t e r e d i n t o by our government, i t does g i v e most of t h e i m p o r t a n t t r e a t i e s , and t h o s e which a r e l i k e l y t o have most b e a r i n g on t h i s p a r t i c u l a r  subject.  Canadian r e l a t i o n s w i t h t h e U n i t e d S t a t e s  have been p u r p o s e l y o m i t t e d , i n as much as t h e i r e f f e c t t r a d e and the Panama C a n a l problem  8. Canada Year Book, 1937, p.494.  is relatively slight.  on Canadian  (4?)  CHAPTER 71 Hairing c o n s i d e r e d e x t e r n a l t r a d e , we Western Canada, and  may  now  the g e n e r a l c h a r a c t e r i s t i c s o f Canadian pass on to t h e e x p o r t s  o f the four w e s t e r n p r o v i n c e s ,  and  i m p o r t s of  The  method o f  a n a l y s i s , i n t h i s case, i s somewhat s i m p l e r t h a n t h a t used i n Canadian t r a d e , i n t h a t the p e r i o d i s d i v i d e d i n t o two f o u r - 1906  to 1920,  and  1920  s t a r t i n g p o i n t the year 1906, not a v a i l a b l e b e f o r e t h a t  to 1936,  sections instead  I t i s n e c e s s a r y to take as  the  because s t a t i s t i c s f o r the p r o v i n c e s  are  time,  While the Panama Canal was not come i n t o g r e a t use  studying  o f f i c i a l l y opened i n 1914.  so f a r as Canada was  t o causes a l r e a d y mentioned.  concerned u n t i l 1920,  Consequently, the y e a r 1920  chosen as the d i v i d i n g l i n e t o i l l u s t r a t e two  due  has been  p e r i o d s i n the  economic h i s t o r y - the one b e f o r e the c a n a l was I n view o f the f a c t t h a t we a r e now  i t did  country's  opened, the o t h e r a f t e r .  dealing with i n t e r n a l conditions,  i . e . , comparing p a r t of Canadian t r a d e w i t h t h e whole, t h e r e i s l e s s need of a l l o w i n g f o r abnormal w o r l d c o n d i t i o n s , except i n so f a r as must c o n t i n u e influences.  t o keep t h o s e c o n d i t i o n s i n mind as p o s s i b l e I t i s assumed, t h e r e f o r e , t h a t w o r l d  we  modifying  conditions which  a f f e c t e d Ca.na.da as a whole i n f l u e n c e d Western Canada i n l i k e manner and t o r e l a t i v e l y the same degree.  C o n s e q u e n t l y , f o r our purposes, i t i s deemed q u i t e s a f e t o compare the two  - Canada and Western Canada - under an a r b i t r a r y d i v i s i o n  of  *  :  i n t o two 49 a n d  (48)  parts,  50,  1906-1920 and  a r e shown i m p o r t s  f o r t h e y e a r s 1906-1920, t h e s e two the  1920-1936,  I n F i g u r e s 6 and  The  line  s e t s o f f i g u r e s , and  (or decreases)  imports from imports  1906  o f t r e n d h a s "been c a l c u l a t e d f o r  is signified  on t h e g r a p h s i n r e d , w h i l e  i n v a l u e per year,  t o 1920  i n c r e a s e d 10,2%  per  Canadian  annum, and ? / e s t e r n C a n a d a d u r i n g the  same  T h i s s h o w s , o f c o u r s e , a s l i g h t l y g r e a t e r t o t a l p er c e n t age  increase,  o v e r t h e w h o l e p e r i o d , f o r Canadian, i m p o r t s t h a n  C a n a d a i m p o r t s - t h e f o r m e r b e i n g 1 4 2 . 8 % and  The  two,  During the  the  latter  h o w e v e r , shot? a m a r k e d s i m i l a r i t y  Both were a f f e c t e d by the 1915,  percentage  That I s to say,  i n c r e a s e d at an a v e r a g e y e a r l y r a t e o f 9,6%  period.  Pages  f o r C a n a d a and W e s t e r n Canada,, r e s p e c t i v e l  f i g u r e s i n r e d o n t h e r i g h t h a n d c o l u m n s show t h e  increases  7,  large influx  f o r Western  134,4%,  i n some r e s p e c t s .  of f o r e i g n c a p i t a l from  1909  l a t t e r p e r i o d . W e s t e r n Canada shows g r e a t e r d e v i a t i o n  from t h e l i n e of t r e n d than Canada, a development not unexpected view  o f our p a s t  a f f e c t i n g t h e two  to  observations.  in  I t w o u l d seem t h a t e x t e r n a l c o n d i t i o n s  h a d much t h e same e f f e c t , b u t  o f W e s t e r n C a n a d a , t h e e f f e c t was  that,  i n the  case  more p r o n o u n c e d .  A g a i n , f o r t h e p e r i o d 1920-1956, C a n a d i a n and W e s t e r n Cans.da i m p o r t s show s i m i l a r t e n d e n c i e s ,  I n F i g u r e s 8 and  9, P a g e s 51  these v a l u e s are p l o t t e d , t ogether w i t h t h e i r r e s p e c t i v e l i n e s t r e n d and  the percentage  decreases  f o r t h e two  The  decreases  are almost  d e v i a t i o n s from t h e  per  annum.  e q u a l - 4.5%  The  annual  and 4.7%,  and  52,  of  average  respectively.  l i n e o f t r e n d f o r W e s t e r n C a n a d a a r e somewhat  (49)  (50)  (51)  «3  (52)  c--  (53) more pronounced than f o r Canada, e s p e c i a l l y d u r i n g the boom p e r i o d from 1925  to 1930,  and t h e d e p r e s s i o n p e r i o d f r o m 1950 t o  A p p a r e n t l y , p u r c h a s i n g power, as e x p r e s s e d  1934,  i n Western Canada i m p o r t s ,  i s more s e n s i t i v e t o w o r l d c o n d i t i o n s than Canadian p u r c h a s i n g power as a whole.  I n a d d i t i o n , the more d i v e r s i f i e d ' e c o n o m y of the whole  c o u n t r y responds more s l o w l y and more e v e n l y t o e x t e r n a l c o n d i t i o n s , The p u r c h a s i n g po?jer of t h e people i n t h e West i s l a r g e l y d e c i d e d  by  the p r a i r i e farmer's wheat crop and h i s a b i l i t y to s e l l i t a t a p r o f i t i n w o r l d markets.  I f a.good p r i c e i s p a i d f o r wheat, the farmer i s a  good customer; i f n o t , t h i s p o s i t i o n i s immediately r e v e r s e d . comparison of F i g u r e 9, Western Canada Imports,  A  1920-1936, Page 52,  and F i g u r e 13, W e s t e r n Canada E x p o r t s , 1920-1956, Page 57, w i l l  serve  b e s t to i l l u s t r a t e t h i s p o i n t : l a r g e v a l u e s of i m p o r t s t e n d t o r u n w i t h h i g h v a l u e s of e x p o r t s .  I n comparing the v a l u e s of e x p o r t s f o r Canada and Canada from 1906  Western  t o 1920, we f i n d a somewhat d i f f e r e n t s i t u a t i o n .  are i l l u s t r a t e d i n F i g u r e s 10 and  11, Pages 54 and 55.  These  Canadian values  show a g r e a t e r i n c r e a s e per annum t h a n the West - 16,2% p e r annum as a g a i n s t 14,7% - and a g r e a t e r t o t a l percentage 226.8% as a g a i n s t 205.8%  g a i n over the p e r i o d -  T h i s i s not a g r e a t d i f f e r e n c e over a p e r i o d  of 14 y e a r s , b u t i n t h i s case the West does not show as g r e a t d e v i a t i o n s from the l i n e of t r e n d as the whole Dominion. may  From 1910  to 1916,  be seen i n F i g u r e 10, Canadian e x p o r t v a l u e s were l e s s than  normal f o r an unbroken p e r i o d of y e a r s .  as  the  I n the same p e r i o d , Western  (54)  (55)  m  fl  (56)  ' 1  (58)  Canada shows a c o n s i d e r a b l e drop in. 1911 and  1912, marked r e c o v e r y  i n 1915, and r e l a t i v e l y s m a l l e r d e v i a t i o n s i n 1914,  1915,  and  1916,  Western Canada e x p o r t s d i d not i n c r e a s e as r a p i d l y as t h o s e of Canada, over the whole p e r i o d , l a r g e l y because development r e q u i r e d so much of the e s t e r n Canadian s u r p l u s c a p i t a l to be plowed back i n t o t h e w  economic system.,  D u r i n g the war, b o t h r e c o r d e d s u b s t a n t i a l  increases  i n e x p o r t s , a l t h o u g h h e r e , a g a i n , the t o t a l v a l u e s f o r the whole country show much t h e l a r g e r i n c r e a s e .  I n the case of e x p o r t s , Canadian v a l u e s d e v i a t e from t h e average t o a g r e a t e r e x t e n t d u r i n g t h i s p e r i o d than t h o s e of the West I t w i l l be remembered t h a t i n t h e case of i m p o r t s , t h e p o s i t i o n  was  exactly reversed,  F i g u r e s 12 and 13, Pages 56 and 57, d e p i c t g r a p h i c a l l y Canadian and Western Canadian e x p o r t s r e s p e c t i v e l y , f o r t h e 1920-1936.  years  A comparison o f t h e s e two- diagrams b r i n g s out a v e r y  interesting fact,  Canadian e x p o r t s f o r t h e p e r i o d show an average  annual d e c l i n e of 3,2%,  w h i l e Western e x p o r t s show an i n c r e a s e o f  Over t h e whole p e r i o d , the former  decreased  1.1%.  51,2%, -while the l a t t e r i n -  c r e a s e d 17.6%.  From 1922  t i o n s ) t o 1929,  e x p o r t s f o r b o t h Canada and Western Canada i n c r e a s e d  v e r y r a p i d l y , due,  (when c o n d i t i o n s reached d e p r e s s i o n  propor-  as we have seen, to improved w o r l d markets,  p a r t i c u l a r l y f o r wheat and a g r i c u l t u r a l p r o d u c t s . a c o n s i d e r a b l e r e c e s s i o n f r o m 1930 i n the l a s t t h r e e years.  to 1955,  Both diagrams show  and a moderate i n c r e a s e  However,. Western Canada shows a marked  i n c r e a s e o v e r t h e w h o l e p e r i o d , and just for  what c a u s e d t h i s the  i m p r o v e m e n t , and  increase i n the  Canal,  While  little  a l s o what r e a s o n s  scientific  standpoint would he  heen devoted  on t h e  more and  more  negligible.  study, the  and  resulted. use that  this  We  may  not u n t i l Table  new  i n f l u e n c e of the  r e m e m b e r e d t h a t i t was  192?- t h a t any  1 0 , Pe.ge 6 0 ,  on t o  study  provinces.  As  become  the tonnage of s h i p s i n e i t h e r  little  consequence,  126,000 t o n s i n 1 9 2 1 ,  and  that  I t wi 11 b e  i n the e n s u i n g  Tonnage o r i g i n a t i n g i n E a s t e r n C a n a d a  f o r the  east  i t had  grown to  16,000 t o n s ; t h e  15 y e a r s , w h i l e t h e  30 t i m e s , a m o u n t i n g t o o v e r  to  noticed  Ships d e s t i n e d f o r the west coast those  the  d i r e c t i o n , e a s t or w e s t ,  j u s t u n d e r 4 0 , 0 0 0 f o r t h e y e a r , w h i l e i n 1936  v e r y n e a r l y 300,000 t o n s .  i n 1920  Canadian s h i p p i n g ,  C e n t r a l America.  was  over  to  q u i c k l y Canadians s t a r t e d  of very  doubled  go  canal w i l l  first  was  almost  drawn as  a p p r e c i a b l e volume o f s h i p p i n g  shows how  short-cut through  i n 1921,  now  four western  a c t u a l l y u s e d i n any g r e a t measure by  i t was  t o t h e Panama  apparent.  I t w i l l he c a n a l was  of  country, t h e i r value from a  i n more d e t a i l t h e t r e n d s o f t r a d e i n t h e i n this  given  the v a l u e s  c e r t a i n v e r y g e n e r a l c o n c l u s i o n s m i g h t he  of t h i s waierway  progress  can he  have c o n s i d e r e d C a n a d i a n c o n d i t i o n s as  a t t e n t i o n has  the e f f e c t  we  to discover  down-grade.  t o t h i s p o i n t , we  a whole, and v e r y  s h a l l attempt  l a t t e r ' s export values, while  C a n a d i a n e x p o r t s were on t h e  Up  we  latter  506,000 t o n s I n 1936.  show former  increased I n 1937,  i t  (60) TABLE 10 PANAMA TRAFFIC ( i f f LONG TONS)  Year  Originating ' Canada Canada West Coast E a s t Coast  Destined f o r Canada • Canada West Coast E a s t Coast  1921  125,638  59,561  126,414  16,558  1922  180,981  25,174  148,305  6,521  192 3  604,546  92,959  101,588  12 5,28 3  1924  l j 223 ^ X 22  110,677  141,086  197,204  1925  1,082,282  121,803  158,709 '•  379,284  192.6  1,605,855  160,196  168,295  614,580  1927  1,548,783  207,003  248,009  803,418  1928  2,845,675  168,287  268,960  394,175  1929  2,650,646  251,128  266,453  539,767  1930  1,968,966  185,776  267,282  556,562  1931  2,507,257  157,756  271,621  492,252  1932 '  2 p 38 3 p 21X  89,445  167,855  529,517  1953  2,896,162  121,875  134,511  328,038 '  1934  2,201,180  196,204  189,227  498,706  1935  2,490,205  248,658  176,698  547,974  1956  2,705,567  298,884  225,174  506,673  Source; Canada Y e a r Book, 1956, p.700.  * i  (61)  reached a h i g h l e v e l o f 003,418 t o n s .  This o u t s t a n d i n g i n c r e a s e t o o k  p l a c e I n the tonnage o f s h i p a o r i g i n a t i n g on t h e west coast and hound f o r p o i n t s east o f t h e Panama C a n a l , and i s i l l u s t r a t e d on r a t i o paper I n F i g u r e 14, Page 62.  The he,  f i g u r e s expressed  i n F i g u r e 14 may h e s a f e l y assumed t o  f o r t h e most p a r t , Canadian cargo d e s t i n e d f o r markets e a s t o f  the Panama, over t h e new sea r o u t e .  C e r t a i n allowance  must he made  f o r p a r t c a r g o e s p i c k e d up a t American P a c i f i c c o a s t p o r t s en r o u t e , h u t , on t h e whole, they i l l u s t r a t e s a t i s f a c t o r i l y the i n c r e a s i n g use to w h i c h W e s t e r n Canada put the new t r a n s p o r t a t i o n r o u t e .  Undoubtedly,  t h e r e f o r e , t h i s i n c r e a s e i n c a r g o must be i n p a r t r e s p o n s i b l e f o r t h e i n c r e a s e i n the Western Canadian e x p o r t t r a d e from 1920 t o 1956, d u r i n g which p e r i o d t h e v a l u e o f e x p o r t s f o r t h e r e s t o f Canada was on t h e decline,  The  i n c r e a s e i n Canadian t r a f f i c t h r o u g h t h e Panama C a n a l i n  1921-1922 was o n l y moderate i n c o m p a r i s o n w i t h other y e a r s , a, t r e n d due i n l a r g e p a r t , t o t h e s h a r p drop i n Western Canadian e x p o r t s a t that time.  However, from 1922 t o 1929,  e x p o r t s f r o m the West t o o k a t u r n  upward, and Panama R e g i s t r a t i o n s showed a more than p r o p o r t i o n a t e g a i n . I t was n a t u r a l f o r t r a f f i c t h r o u g h t h e new waterway t o i n c r e a s e v e r y r a p i d l y a t f i r s t - t h i s f e a t u r e i s common i n the u s e o f any new highway u n t i l i t s p o t e n t i a l u s e r s a d j i i s t t h e m s e l v e s to i t s use.  The Panama  Canal r e a c t e d i n j u s t t h i s way f o r the f i r s t y e a r s , b u t b y 1929, t h e t r e n d had g r a d u a l l y eased o f f , and t h e i n c r e a s e had become more normal.  (62)  *  \  (63)  In  19 £9 , w e s t e r n e x p o r t s took a d e c i d e d down-swing, w h i l e  Panama t r a f f i c , a l t h o u g h s u f f e r i n g temporary s e t - h a c k s , seems t o have T  maintained,  on the whole, an a p p r e c i a b l e i n c r e a s e .  The  i n c r e a s e was  not as g r e a t as i n p r e v i o u s y e a r s , b u t , n e v e r t h e l e s s , year by y e a r , ships from the west coast o f Canada c o n t i n u e d to use t h e c a n a l i n i n c r e a s i n g numbers.  In  order .to see more c l e a r l y where the impact  was most f e l t i n Western Canada, i t i s now  n e c e s s a r y to examine more  c l o s e l y t h e t r a d e of the s e p a r a t e p r o v i n c e s . more d i f f i c u l t  I n such a s t u d y , i t i s  to g e t as s a t i s f a c t o r y s t a t i s t i c s  Canada as a whole.  Provincial statis-tics  of the canal  as i n d e a l i n g w i t h  do not s u p p l y as much d e t a i l e d  i n f o r m a t i o n , and i n t h e r e c o r d of i m p o r t s and e x p o r t s , n e i t h e r the o r i g i n nor d e s t i n a t i o n i s g i v e n .  The  Canada Year Book s t a t e s t h a t , ' i n  the case of e x p o r t s , r e c o r d s f o r one p r o v i n c e do not n e c e s s a r i l y i m p l y t h a t the goods o r i g i n a t e d i n t h a t p r o v i n c e ; l i k e w i s e , i m p o r t s may n e c e s s a r i l y be consumed i n t h a t p r o v i n c e . Manitoba,  Again, i n a province  not like  which has s e v e r a l customs p o r t s , t h e r e i s no a c t u a l r e c o r d of  where a c e r t a i n volume of e x p o r t s goes; i t may be s o u t h i n t o t h e U n i t e d S t a t e s , or i t may be east or west through Canada. these d i f f i c u l t i e s ,  a study of t h e s e r e c o r d s shows the g e n e r a l t r e n d o f  t r a d e development, and w i l l i l l u s t r a t e general  However, i n s p i t e of  p r o v i n c i a l development i n  terms.  In  order to s i m p l i f y the o r g a n i z a t i o n of such m a t e r i a l , the  i n f o r m a t i o n has been set out i n a s e r i e s of graphs and t a b l e s , which  * 1  (64)  appear on P a g e s 65-83, found imports * the  total  I n T a b l e s 11 and 1 2 , P a g e s 8 1 - 8 2 , w i l l b e  and e x p o r t s  imports  f o rthe provinces  and e x p o r t s  annual percentage i n c r e a s e  f r o m 1906 t o 1 9 3 6 , a n d  f o r W e s t e r n Canada,  or decrease, as c a l c u l a t e d from t h e v a r i o u s  l i n e s o f t r e n d , a p p e a r s i n T a b l e 15, P a g e 8 3 . Is  A summary o f t h e  Since  s e l f - e x p l a n a t o r y , i ti s hardly necessary to index  reference  provinces  each  figure  them a t t h i s  point  w i l l b e made t o t h e m f r o m t i m e t o t i m e  as t h e need  Looking f i r s t  f o r the four western  a t the graphs o f imports  during the period  1906-1920 ( F i g u r e s  P a g e s 6 5 - 6 8 ) , and c o m p a r i n g t h e m w i t h Canada ( F i g u r e s  1 5 , 1 6 , 1 7 , and 1 8 ,  t h o s e f o r Canada and Western  6-7, P a g e s 49 -50) , i t b e c o m e s q u i t e o b v i o u s t h a t  strong s i m i l a r i t y e x i s t s difference;  arises.  between them a l l .  a  T h e r e i s , h o w e v e r , one  i n S a s k a t c h e w a n , A l b e r t a , and B r i t i s h  Columbia, t h e changes  f r o m - y e a r t o y e a r a r e more p r o n o u n c e d , a n d o v e r t h e w h o l e p e r i o d t h e p e r c e n t a g e i n c r e a s e 'becomes g r e a t e r a s one p r o c e e d s w e s t . point  i s i n A l b e r t a and S a s k a t c h e w a n ,  the g r e a t e s t o f Canada,  development  took place  it  w i l l be noted, to that  T h i s was t o b e e x p e c t e d ,  during those years i n t h a t  Saskatchewan tops t h e l i s t  o f 13.6%; A l b e r t a i n c r e a s e d  with  12,7%; B r i t i s h  an a v e r a g e a n n u a l  place  was  i n t h e r a t e o f d e v e l o p m e n t , one c o u l d s a y t h a t  consistently right  share o f t h e general  increase  o f C a n a d a , 1 0 , 2 % ) ; e n d M a n i t o b a 7,5%. there  t h r o u g h t h e w e s t , and t h a t  development i n Canada a t t h a t  since pert  Columbia 10,5% (very  a v e r a g e f o r W e s t e r n C a n a d a was 9,6%, and w h i l e difference  The h i g h  close, The  considerahle i t took  i t was a l a r g e time,  (67)  (68)  (70)  (74)  (75)  (76)  (77)  (78)  (79)  180}  (81) TABLE 11  IMPORTS BY PROVINCES "TOGO'S o m i t t e d T YEAR 1900 1901 1902 190 3 1904 1905 1906 1907* 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1922 1923 1924 19 35 1926 1927 1928 1929 1930 1931 19 33  1933 1934 1935 1936  3e  Gs  10,532 10,805 10,275 10,830 11,816 12,492 15,584 12, 705 23,406 20,764 27,378 38,163 49,154 65,436 56,864 54,976 33,025 42,140 56,040 63,594 67,108 81,615 59,458 60,257 67,564 66,486 73,510 84,936 89,569 94,041 98,271 77,842 50,530 35,849 36,536 43,204 45,980  ALT A. '  SASK.  -  -  -  _  2,828  3,264 4,621 3,817 6,007 9 p 135 13,721 20 , 9 24 18,330 9 j 95 3 6.489 9,986 16,097 1 5 £ 925 18,883 24,227 11,924 10,395 12, 550 13,497 17,214 21 593 9  25,900 36,548 38.921 21j049 9, 741 6,420 6,471 9 2 319 10,805  *j $ 3 3 5 2,177 3 j 753 3. 386 6,145 10,908 14,236 19,138 14,176 . 7,542 6,337 12, 550 16,752 17,388 16, 618 21,716  10,197 10,715 13^933 9,866 14, 896 20,700 26,645 57,852 51,590 18,766 6,028 4,891 4,462 5,148 6,351  * Nine months o n l y . Source; Trade o f Canada, 1935-36, p.27, Dominion Bureau o f S t a t i s t i c s .  MAN.  6,699 5,438 8,703 . 11,802 14,235 14, 282 19,117 19,154 22,454 17,506 35j 5 9 1 34,624 42,459 58,581 45,739 29,448 26,637 40,539 46,743 48,778 55,289 64', 8 23 36,598 38,878 39,671 37,176 42,877 49,332 52,820 59,688 54,796 35,971 19,897 13,949 14, 322 16,057 18,220  V/. G M AD.  «,  «.  40,864 57,298 54,245 45,473 65,121 92,830 119,570 164,079 135,109 81,919 72,488 105,195 135,652 145,785 157,898 192,581 118,157 120,245 132,718 127,025 148,497 176,561 194,954 337 j, 9 39 333f370 153,628 86,197 61,109 61,791 73,628 81,363  (82) TABLE 12 EXPORTS BY PROVINCES (000*s omitted)  YEAR  1900 1901 1902 1903 1904 1905 1906 1907* 1908 1909 1910 1911 3-912 19 IS 1914 3*91£3 1916 1917 1918 1919 1920 1921 19 22 1925 1924 1925 1926 1927 1928 1929 1950 1931 1952 1933 1954 1955 1936  3B«  C  e  17,851 21,648 18,385 15,604 16,556 16,677 22,817 • 16,138 25,941 22,240 25,068 23,016 20,272 27,087 55,918 35,627 59 £ 15 5 45,901 58,614 77,247 97,905 85,031 71,402 96,665 139,689 148,272 192,457 172,075 211,569 237,585 178,551 154,605 109,956 104,546 --• 102,786 114,809 159,984  ALTA.  3 ASK.  MAI.  •HO  -  —  _  -  329 249 297 186 161 565 52 162 283 469 544 288 631 2 f 256 2,209 1,265 601 637 455 2,250 669 1 £ 153 948 1 p 211 1 {j 14?1 847 502 442 553 510 885  _  -  540 440 885 1 j 9 23 2 y 912 4,056 4,621 .. 17,155 8jI H 7,185 8,986 14,805 17,924 20,707 50,852 22,452 7,756 12,957 11,095 10,099 10,241 9,849 10,572 11,051 10,727 5 j 7 29 3 £ 24:2 1,446 2,396 3 y 229 7,175  * Nine months o n l y . Source; Trade o f Canada, 1955-36, p.27 Dominion Bureau Of S t a t i s t i c s .  r  5,568 1,084 4,896 2,068 1,049 2, 575 1 P 9 35 2,830 4,105 2,176 4,192 3,134 3,502 5 j 259 9,067 11,558 13, 452 17,686 22 £ 915 22,906 54,572 25,422 8,599 12*j 9 2 2 11,062 10,995 12, 414 15,496 18,398 17,084 15,918 8,289 4,574 4,876 7,975 11,449 12o 128  W. C M  ADA  «. «»  25,621 19,657 29,224 26,525 52,553 30,571 28,247 49,661 51,379 52, 839 61 j 9 55 82,678 100,084 125', 116 165,558 154,171 88,158 12 5 £ 15 9 162,279 17l'. 596 215,781 198,573 241,487 266,929 206,357 149,470 118,274 113* p 110 115,710 129,997 160,172  (.83)  TABLE 13.  AWMJAL PERCENT AGE INCREASE OR DECREASE IN EXPORTS AND IMPORTS, 1906-1936  EXPORTS 1906-1920 Canada  16, 2%  W e s t e r n Canada  14.7%  EXPORTS 1920-1936 3» 2%  IMPORTS 1920-1956  10,2%  - 4.5%  9,6%  - 4.7%  10,3%  - 3, 2%  - 4,2%  12, 7%  - 5,6%  B r i t i s h Columbia Alberta  IMPORTS 1906-1920  Saskatchewan  32.9%  -11,6%  13, 6%  - 6,1%  Manitoba  22.5%  - 5.5%  5.5%  - 7.7%  * S  (84)  The e x p o r t t r a d e of Western Canada d u r i n g t h i s p e r i o d not as e v e n l y d i s t r i b u t e d as t h e i m p o r t s , nor was p r o v i n c e s as c l o s e l y r e l a t e d t o t h a t of Canada. are i l l u s t r a t e d i n F i g u r e s 23,  the t r a d e of the Exports  of the west  24, 25, and 26, Pages 73-76,  and,  when compared w i t h Canadian and Western Canadian E x p o r t s from to  1920,  ( F i g u r e s 10 and  was  1906  11, Pages 54-55), show marked d i f f e r e n c e s .  A l b e r t a shows the l o w e s t v a l u e s of e x p o r t s of a l l t h e p r o v i n c e s , r a n g i n g from t h e v e r y low f i g u r e o f $52,000 i n 1912, h i g h o f #2,256,000 i n 1919.  From 1906  except f o r one y e a r o f r e c o v e r y - 1911.  t o 1912,  to a  exports f e l l o f f ,  However, from 1912  to  1920,  an enormous i n c r e a s e t o o k p l a c e , much g r e a t e r f o r a s i m i l a r p e r i o d t h a n . f o r any six  other p r o v i n c e .  I n s p i t e of t h e decrease i n the  y e a r s . A l b e r t a ' s a n n u a l average i n c r e a s e was  period.  The  13,9%  f o r t h e whole  e x p o r t s of t h i s p r o v i n c e a l s o show much more  f l u c t u a t i o n s f r o m y e a r to y e a r than do t h o s e  of any  accentuated  of t h e  other  p r o v i n c e s . . I t seems l i k e l y t h a t , on t h e whole, A l b e r t a had the way  of s u r p l u s p r o d u c t s  first  t o s h i p out o f the p r o v i n c e , and  little  in  that  most of i t s c a p i t a l was b e i n g used f o r development purposes,  Man i t oha and Saskatchewan show t h e g r e a t e s t development i n r e s p e c t of e x p o r t s , o f 32.9%, and 315%,  Saskatchewan had a n annual average i n c r e a s e  an o v e r - a l l i n c r e a s e o f 460.6%5 and M a n i t o b a , 22,5%  respectively.  B r i t i s h Columbia was  The  p e r c e n t a g e i n c r e a s e of e x p o r t v a l u e s f o r  11,3%, w i t h a t o t a l i n c r e a s e of 158.2%.  The v a l u e s of i m p o r t s f o r the f o u r w e s t e r n p r o v i n c e s f o r  and  '  1  (85)  the period. 1920-1936, when compared w i t h the v a l u e s of Canadian imports  f o r the same p e r i o d , e x h i b i t no g r e a t v a r i a t i o n s one  " a n o t h e r . (See F i g u r e s 19, 20, 21, and 8, Page 51.)  The g e n e r a l  from  22, Pages 69-72, and  Figure  downward t r e n d , as shown i n each case,  ranges from t h e r e l a t i v e l y s m a l l annual average decrease f o r B r i t i s h Columbia (3,2%) to the d e c r e a s e of 7,7%  i n M a n i t o b a . , The  trend  o f B r i t i s h Columbia v a l u e s c o r r e s p o n d s most c l o s e l y t o t h a t W e s t e r n Canada ( F i g u r e 9, Page 52)  and  Canada ( F i g u r e 8, Page 51).  and t h e decrease per annum i s somewhat l e s s - 5.2% f o r the Dominion and 4,7%  of  f o r t h e West.  The  as a g a i n s t  4.5%  d e v i a t i o n s of t h e a c t u a l  B r i t i s h Columbia v a l u e s from the t r e n d v a l u e s f o r c o r r e s p o n d i n g  years  i s somewhat l e s s than, f o r Canada, w h i c h f a c t would seem t o i n d i c a t e t h a t the t r a d e o f t h e p r o v i n c e  i s l e s s s u b j e c t t o wide f l u c t u a t i o n s  t h a n the Dominion as a whole, i . e . , l e s s l i k e l y t o h i t extreme h i g h or low p o i n t s *  I n 1929,  the D e p r e s s i o n caused a r a p i d drop i n the  o f Saskatchewan, M a n i t o b a , and t h e Dominion, l a n d s l i d e was  The  corresponding  n e a r l y a y e a r l a t e i n coming t o the two  p r o v i n c e s , A l b e r t a and B r i t i s h Columbia.  I t may  f a r western  be t h a t t h i s was  t o some p e c u l i a r c h a r a c t e r i s t i c s i n n a t e i n t h i s p a r t of the Probably  the time element was  o r d e r s would be  imports  Dominion.  i n p a r t r e s p o n s i b l e f o r the d e l a y ,  l o n g e r i n b e i n g f i l i e d than i n the e a s t .  due  since  The  r e c o r d of Panama tonnage r e g i s t r a t i o n s of s h i p s d e s t i n e d f o r t h e west c o a s t  (Table  10, Page 60) would suggest t h a t t h i s was  true.  The  '  (86)  I  l a t t e r decreased  s l i g h t l y i n 1929, h u t r e c o v e r e d i n 1930; the r e a l  drop d i d not take p l a c e u n t i l 1932.  T h i s does not c o n s t i t u t e d e f i n i t e  ' evidence t h a t the Panama Oanal was r e s p o n s i b l e f o r t h e v a l u e o f i m p o r t s f o r t h e s e two p r o v i n c e s b e i n g s u s t a i n e d a y e a r longer the r e s t o f Canada.  than  However, i f we c o n s i d e r a l s o t h a t the annual  average decrease i n t h e v a l u e s o f i m p o r t s grows l e s s a s we approach the P a c i f i c Coast - M a n i t o b a 7.7%, Saskatchewan 6.1%, A l b e r t a 3.6%, and B r i t i s h Columbia 3,2% - t h e r e i s good r e a s o n t o b e l i e v e t h a t p r o x i m i t y to t h e new water o u t l e t to Europe was a d e c i d e d advantage.  Now l e t us c o n s i d e r t h e v a l u e s o f e x p o r t s f o r the f o u r w e s t e r n p r o v i n c e s from 1920 t o 193 6. 30, Pages 77-80.) those  (See F i g u r e s 27, 28, 29, and  A comparison o f t h e t r e n d s o f t h e s e ' v a l u e s w i t h  f o r t h e Dominion ( F i g u r e 12, Page 56,) and Western Canada ( F i g u r e  13, Page 57) shows marked d i s s i m i l a r i t y i n a g r e a t many i n s t a n c e s .  A l b e r t a b e a r s l i t t l e resemblance t o e i t h e r Canada o r Western Canada.  The f l u c t u a t i o n s a r e very i r r e g u l a r , and t h e d e v i a -  t i o n s o f the a c t u a l v a l u e s from t h e normal a r e a t t i m e s g r e a t .  For  example, e x p o r t s i n 1924 were about $4,500,000, w h i l e t h e normal v a l u e was $10,000,000,  I n t h e f o l l o w i n g year, the a c t u a l values  were over$20,000,000, w h i l e t h e normal v a l u e was $9,500,000,  I n no  other p r o v i n c e does one f i n d such a wide d e v i a t i o n i n so s h o r t a time.  The cause of such f l u c t u a t i o n s i n t h e v a l u e o f e x p o r t s was  p r i m a r i l y crop c o n d i t i o n s . e x p o r t s decreased  However., over t h e whole period,- A l b e r t a  on t h e average o n l y 4.2% per annum, a decrease n o t  ' \  (87)  much g r e a t e r t h a n t h a t f o r t h e D o m i n i o n  (3.2%).  Saskatchewan e x p e r i e n c e d the g r e a t e s t d e c l i n e o f any  i n exnorts  o f t h e f o u r w e s t e r n p r o v i n c e s - 1 1 , 6 % p e r annum.  The  history  o f S a s k a t c h e w a n w h e a t c r o p s o v e r t h e p a s t t e n y e a r s h a s b e e n a-most distressing  story.  A s e r i e s o f y e a r s w i t h no r a i n , d u s t s t o r m s ,  r u i n e d c r o p s has c a u s e d all  Canadians,  virtually  not o n l y t h o s e l i v i n g i n t h i s p r o v i n c e , h u t  t o l o o k on t h i s  s i t u a t i o n as- a c a u s e  o f I m p o r t s , we  d e c r e a s e g r o w s l a r g e r a s we  proceed  f i n d t h a t -the  percentage  e a s t , and t h a t p r o x i m i t y t o t h e  Coast b e a r s a d e f i n i t e r e l a t i o n s h i p t o the percentage  each y e a r i n e x p o r t v a l u e s - B r i t i s h 4,2%  f o r g r e a t concern  a national catastrophe.  As i n the ease  P a c i fi c  and  d e c r e a s e , S a s k a t c h e w a n 11,6%  Columbia  1,8%  change  increase,  d e c r e a s e , and M a n i t o b a  Alberta  5*5%  decrease.  I f we Saskatchewan, cannot hut  a l i o ? ; f o r the abnormal  conditions i n Alberta  and  p a r t i c u l a r l y w i t h regard to export values, then  r e c o g n i s e , I n the r e c o r d s of p r o v i n c i a l t r a d e , a  r e l a t i o n s h i p b e t w e e n t h e v a l u e s o f t h a t t r a d e and each p r o v i n c e f r o m P a c i f i c t i d e w a t e r . put to a c t i v e use hy Canadian  i n almost  B e f o r e t h e Panama C a n a l  shipping, p r o v i n c i a l trade bore  d i r e c t p r o p o r t i o n . An a n a l y s i s  a c t u a l t r a d e r o u t e d v i a Panama C a n a l w i l l b e a r e v e n more f o r c i b l y .  decided  the d i s t a n c e o f  r e l a t i o n s h i p t o d i s t a n c e f r o m t h e P a c i f i c C o a s t ; f r o m 1920 r a t i o seems t o b e  we  on,  was little the  of the  out t h i s c o n t e n t i o n  -  '  1  '  (88)  One f i n a l p o i n t of s i g n i f i c a n c e m u s t be proceeding 'detail,  to a n a l y z e  the t r a d e  I n r e c e n t y e a r s , and  similarity  find  the  following  Coast  of B r i t i s h  more n o t i c e a b l e ,  From Table  Western Canada B r i t i s h Columbia  very has  to the  15,  Page  83,  1920-1956  Imports  Exp o r t s  9.6% 10.3%"  1,1% 1.8%  14,7% 11,3%  Imports -4.7% -3.2%  a l s o t h a t the y e a r to y e a r changes i n B r i t i s h  C o l u m b i a t r a d e w e r e much t h e i s due  Western  percentages?  Exports  recalled  the  C o l u m b i a and  1906-1920  I t w i l l be  before  i n greater  more p a r t i c u l a r l y s i n c e 1920,  between the t r a d e t r e n d s  C a n a d a h a s become more and we  o f the P a c i f i c  dealt with  same a s t h o s e  f a c t t h a t the t o t a l  f o r W e s t e r n Canada.  t r a d e of B r i t i s h  l a r g e i n t h e t r a d e o f W e s t e r n Canada.  As  come t o c o n s t i t u t e a v e r y h i g h p e r c e n t a g e  the f o u r Western p r o v i n c e s .  Table  British  imports  C o l u m b i a e x p o r t s and  This  Columbia b u l k s  time  has  gone on, i t  of the t o t a l t r a d e f o r  14, P a g e 8 9 , expressed  shows t h e v a l u e as a percentage  of of  the  t o t a l Western Canadian t r a d e .  I t w o u l d seem f r o m t h e s e  f i g u r e s t h a t the p r o p o r t i o n of  i m p o r t s e n t e r i n g «est e m  Canada through  relatively  the whole p e r i o d .  to  52%,  constant  over  dropped back to the  the depression)  increased to  1920  British  Columbia has  P r o m 1922  f i g u r e of 42%  on,  i n 1929,  i t s h i g h e s t p o i n t - 60%  in  i t increased  and  p a r t l y r e s p o n s i b l e f o r the  i n c r e a s e d u r i n g the  (during  1934.  U n d o u b t e d l y , cheap t r a n s p o r t a t i o n of m a n u f a c t u r e d goods by r o u t e was  been  the  water  depression  (89)  [TAB I E  BRITISH  COLUMBIA AS  WESTERN  A  14.  EXPORTS  PERCENTAGE  CAM ADA  EXPORTS  M B  IMPORTS  OP AND  IMPORTS•  1906-1920  YEAR  EXPORTS  1906  87%  37%  193 3  80%  50%  1907  84%  _  1923  77%  50%  1908  80%'  43%  1924  84%  50%"  1909  83%'  45%  1925  84%  52%'  1910  76%  ' 42%  1926  88%  50%  1911  75%  40%  1927  87%  48%  1 9 3.3  71%  41%  1928  8?%'  1915  55%  40%'  1939  88%'  42%  1914  64%  41%'  1930  86%  49%  1915  63%'  42%  1951  90%  50%  1916  64%  46%  1932  90%  57%  1917  57%  38%  1933  92%  59%  1918  59%  41%  1934  89%  60%  1919  62%  43%"  1935  88%  56%*  1920  58%  42%*  87%  &Z%  1921  62%  4,1%  IMPORTS  .  YEAR  '  1956  EXPORTS  :  IMPORT  46%  (90)  years. A n a l y z i n g B r i t i s h Columbia's p r o p o r t i o n o f Western Canada e x p o r t s , t h i s p r o v i n c e r a p i d l y gave way to the o t h e r p r o v i n c e s from 1906  to 1920.  T h i s p o s i t i o n changed a p p r e c i a b l y from 1920  on.  t h a t y e a r , 1920, B r i t i s h Columbia e x p o r t s were o n l y 56% of t h e Western Canada e x p o r t s : i n 1933,  they c o n s t i t u t e d over 92%.  In total  Since  t h a t time, the p r o p o r t i o n has dropped somewhat, h u t , on the whole, the p r o v i n c e has c o n t i n u e d to m a i n t a i n t h e l a r g e r p r o p o r t i o n , which was  over 85% o f the t o t a l i n  1956.  The development o f B r i t i s h Columbia t r a d e s i n c e 1920 been due  has  i n l a r g e measure to t h r e e t h i n g s ; f i r s t , , t o t h e tremendous  growth i n Canadian f o r e i g n t r a d e ; second, t o the f a c t t h a t  this  p r o v i n c e has p r o d u c t s not found i n the o t h e r Western p r o v i n c e s to e x p o r t to world markets; and, t h i r d , t o the opening of t h e Panama, Canal.  Of these t h r e e f a c t o r s , the l a s t i s the more i m p o r t a n t , s i n c e ,  w i t h o u t the c a n a l , B r i t i s h Columbia would be a t a d i s t i n c t  disadvantage,  due to e x c e s s t r a n s p o r t a t i o n costs..  F i n a l l y , as we proceed w i t h a more d e t a i l e d study o f B r i t i s h Columbia c o n d i t i o n s , i t wi 11 become more and more  apparent  t h a t the Panama Canal has been p r o b a b l y t h e most important  factor  c o n t r i b u t i n g to the i n c r e a s e d p a r t i c i p a t i o n of t h i s p r o v i n c e i n Canadian f o r e i g n t r a d e ,  (91) CHAPTER 711 Of t h e f o u r p r o v i n c e s of Western Canada, B r i t i s h i s unique i n c e r t a i n r e s p e c t s .  We have seen, i n t h e f i r s t  Columbia place,  t h a t i t i s c u t o f f from the r e s t of the Dominion by a f o r m i d a b l e n a t u r a l b a r r i e r , t h e Rocky M o u n t a i n s ,  A g a i n , we have observed t h a t  the p r a i r i e p r o v i n c e s depend a l m o s t e n t i r e l y on one t y p e of p r o d u c t i o n , t h a t of -wheat.  We s h a l l find', as we p r o c e e d , t h a t B r i t i s h  Columbia  has a much more v a r i e d economy t h a n h e r s i s t e r p r o v i n c e s o f t h e West, She p r o d u c e s , among o t h e r t h i n g s , p u l p and paper, lumber, and wo od products.  She e x t r a c t s f r o m h e r mines a g r e a t v a r i e t y o f m i n e r a l s ,  i n c l u d i n g g o l d , s i l v e r , c o a l , copper, and many n o n - f e r r o u s m e t a l s : from t h e s e a , a wide v a r i e t y o f f i s h , which i s e x p o r t e d b o t h canned and  f r e s h ; and f r o m t h e l a n d , a v a r i e d a s s o r t m e n t of a g r i c u l t u r a l  products.  Such a w e a l t h and heterogeneity o f pro d u c t s has been  r e s p o n s i b l e f o r a c o n s i s t e n t volume of e x p o r t s t o a l l q u a r t e r s o f the globe.  I n sn e a r l i e r c h a p t e r , we saw that t he re e x i s t e d a c e r t a i n g e o g r a p h i c u n i t y between Canada's P a c i f i c p r o v i n c e and t h e P a c i f i c s t a t e s o f America, hut t h a t t h e Canadian t r a n s - c o n t i n e n t a l r a i l w a y system tended t o o f f s e t any d i s a d v a n t a g e s t o a n ungeographic u n i t y E a s t and West.  The Panama C a n a l has been t h e f a c t o r n e x t i n importance  to t h e r a i l w a y s i n cementing t h e bond between B r i t i s h Columbia and the r e s t o f t h e Dominion.  I t a c c o m p l i s h e d t h i s d i f f i c u l t t a s k by  making t h e E a s t e r n Canadian market more a c c e s s i b l e t o B r i t i s h Columbia  p r o d u c e r s and consumers, and b y p l a c i n g t h i s p r o v i n c e i n a more f a v o r a b l e p o s i t i o n t o snare i n Canadian t r a d e w i t h overseas c o u n t r i e s .  I t opened  *a market i n t h e U n i t e d Kingdom which has "brought g r e a t w e a l t h t o t h i s p r o v i n c e , a market w h i c h , p r i o r t o 1921, was almost  p r o h i b i t e d by l o n g  t r a n s p o r t a t i o n h a u l s w i t h t h e i r consequent h i g h f r e i g h t charges.  In  the p a s t , where Canada has n e g o t i a t e d t r a d e agreements w i t h European c o u n t r i e s , B r i t i s h Columbia, even w i t h c o n c e s s i o n s i n t h e way of lower t a r i f f r a t e s , found i t d i f f i c u l t , and a t times i m p o s s i b l e , t o p a r t i c i pate i n t h i s t r a d e . at a disadvantage  I n p o i n t o f t i m e , 'while the P a c i f i c Coast i s s t i l l  i n competing f o r t r a d e i n f o r e i g n markets, t h e c o s t  element has been c u t down t o such an extent as t o a l l o w a much more equitable basis for p a r t i e i p a t i o n .  Canadian p r o d u c t s e x p o r t e d t o f o r e i g n markets must he shipped out of the Dominion i n one of t h r e e ways: E a s t , down t h e S t , Lawrence watershed; B r i t i s h Columbia,  South, t h r o u g h the. U n i t e d S t a t e s ; or West, t h r o u g h S i m i l a r l y , goods imported from f o r e i g n c o u n t r i e s  must e n t e r by one o f t h e s e t h r e e channels.  S i n c e 1921, t h e Western  r o u t e has become more and more p o p u l a r , as w i t n e s s e d by t h e t r a d e figures.  The v o r t e x o f t h i s flow o f goods i s Canada's c h i e f p o r t on  the P a c i f i c - Vancouver,  L u r i n g t h e l a s t 50 y e a r s , the growth and development of the C i t y of Vancouver, from a c o m p a r a t i v e l y s m a l l town to t h e t h i r d c i t y i n t h e Dominion, has been remarkable.  largest  D u r i n g t h i s t i m e , i t became  the P a c i f i c Coast t e r m i n a l f o r t h e two t r a n s - c o n t i n e n t a l r a i l w a y  > i systems, and I n 1931.  (93) i t s p o p u l a t i o n ha,s grown from 13,700 i n 1891,  Having the b e s t harbor  to 246,600  f a c i l i t i e s of any- p o r t i n B r i t i s h  -Columbia, i t has become the d i s t r i b u t i n g  c e n t e r f o r the b u l k of goods  consumed i n t h e p r o v i n c e , and the s h i p p i n g c e n t e r for the l a r g e s t p a r t o f a l l Canadian goods, e x p o r t e d v i a the P a c i f i c  The  Coast,  s t o r y of Vancouver's development i s b e s t to Id i n the  s t a t i s t i c a l e v i d e n c e a t hand.  A l t h o u g h t h e r e a r e l a r g e gaps i n the  d a t a a v a i l a b l e , they w i l l show the g e n e r a l t r e n d i n t h e development of t h i s p o r t .  I n o r d e r t o a p p r a i s e the r e l a t i v e Importance of the  p o s i t i o n of Vancouver t r a d e i n B r i t i s h Colurnbia* s t o t a l t r a d e , i t i s necessary -to compare the f i g u r e s f o r e x p o r t s and by t h e Dominion Bureau of S t a t i s t i c s , e x p o r t s a r e g i v e n i n T a b l e s 11 and  i m p o r t s as s u p p l i e d  B r i t i s h Columbia i m p o r t s  12, Pages 81 and 82,  Table  and 15,  Page 94. c o n t a i n s the value f i g u r e s f o r the f i v e p r i n c i p a l , p o r t s o f B r i t i s h Columbia, v i z . , Vancouver, Few W e s t m i n s t e r , V i c t o r i a , P r i n c e Rupert,  and Nanairno,  and shows, i n a d d i t i o n , the p e r c e n t a g e of B r i t i s h  Columbia i m p o r t s and e x p o r t s p a s s i n g t h r o u g h t h e P o r t of Vancouver. . F i g u r e s 31 and  32, Pages 95 and  96, show t h e p e r c e n t a g e Vancouver v a l u e s  b e a r to t o t a l B r i t i s h Columbia v a l u e s .  Where l i n e s o f t r e n d a r e c a l c u l a t e d , the method used i s the same as t h a t employed h e r e t o f o r e , w i t h one e x c e p t i o n .  Due t o the f a c t  t h a t Dominion Bureau f i g u r e s f o r the C i t y of Vaneouver o n l y go back to 1908, the t o t a l p e r i o d has b e e n d i v i d e d i n t o the two and  1920-1936, i n s t e a d of t h e p r e v i o u s d i v i s i o n ,  sections,, 1908-1920  1906-1920 and  1920-1956,  (94;  EH  w o  p  ^ C O O) N  o  o>  o  N  O  c-  w in o o  O  t- O l S < l l O ! N C 0 W c n l N C f t N c 0 K i n b . W N O l cocococacntocotocow^iivcoracocDM  ^ t O ^ t O C O W r H o f c v T ^ T  OrHtntotoioiointoivjsin.rjiei^^iiC)  CO  N N C O H M n H ^ n W N m t O N r H O I N  EH «  o to to C7> r-l 1 CO  o ft  0) += 4=> •H  I  s1 °  s  1  1  1  1 1  o  CO  o I  I  I  I  !  I  I  !  I  I  I  M c o a i o c o N o H < | o ) < # m ( i i M ^ > l o > W H H H i f l ^ c o n o » M a ) to LO O O H K O ^ i f l O N O O O f i j H M o  I  r - ~ o > W L O L O o i > - c r > r-t CO CO LO <sj< £- cn H H r l Ci M H  o n o>  I  i  I  I  I  I  I  I  I  I  I  8  I  !  I  !  CO EH  o  Is  CO EH  1°  8  CJ  is  - - - - - -N co „ . I D Ol t | W O B CO to . cn co ^ I D t - !>-£•i s ,.- Q „CO lO 1Q-t.-^ LOv j .^ CNCT>cO<^cObtf)tfJ«)WKi^0 0 ^ 0 5 1 Q ^ * l LO CO «"l flt tfj # 1 f t ST, #V «3i «\ r-)i—Ir-tr-Hr—i<—tr-ir-Hr-J  1 1  w  PH  era  o  s  1  co EH  r-H  r-H  i  1  CO  PI  PH  I  1  PH  o  H  ; 1  EH  01  8  i  t  O O X O I f l M i a i f l N C D ^ . r l i D M W ^WcoWOT^*cFcocnino«inoco«tf i f l O l W l Q c D M H M W c O C O r H «t^ C«\C f t ^ ^ ^ M t o M ^ ^ L O ^ t o w ^ ^ r o c o  t  W N t f M O cv2,>-cn i n H CO LO w L o ^ ' ^  N H H f f l M o i c n M o i O ) l f l ' O b l O > J O O O « l f l t O < J > O i a H c O H H N ^ S r i S i S Q ^ ^ ^ ^ ^ ^ ^ ^ ^ t o M ^ O r t r H g i c n i f i c o o . ^ ^ c i i ^ H ^ o t o ^ c o t s M ^ ^ D o l O l n ^ o c o w N o n ^ ^ H ^ r o H K ) w *3< <4< CO  r - i CD «3t !V- CO COC n O C O l O t O c O c O l N O T c O < r > c n t ^ < H l C \ 2 C O <—!  CO CCS  1-oJ 03  CO &  P o  1  s  H PH  CRcQ(J3tnH«#(J}^rH!ScO 1—4 03 i H Q O M W N H (O LO tO <: LO v, ^. o> o w < f n c o  o  *»  AH  PI  «»  1—I H  «  O i i f i H B c o o i O M o t O l O  m t>-  N  LO LO <rj< CO  t O CO  >-. CO "rj< LO CO 1 - !  <«# CM  cn  t-H r-H rH rH r—! r—f  •H LO Cn CO in 0 2 to co to cn cn  oi  •ft  »v  ff*  LO CO o co r l H OJ M  CO  EH  PH O  I  I  !  I  I  I  I  I  1  0> c n Irt H M O) « ) <# N W O O ' ^ N H ' r J O M i n ( O M O M ! 3 c O t O C O C O i Q M c i > M ( a M o w e n W N L 0 ^ 0 4 t 0 ^ t 0 ^ ^ r H ^ r H O O C D < H C 0 f > -  PI  o cm  E-t PH O  ft 5 EH  PI  o  jra $ .  w i Q o ^ ^ o i c f t o t < i N t o i < ) ! | m c « ^ 0 ) O c i i o ) W » o i c o o o n o t B & D O . 1^1 LO O O « 3 C 0 T 4 ) C C 2 C D L 0 C 0 O C O C D ^ O H i n N M c O H o O l s O ^ O SS. E H pqlevi to ^lOlflCOrsE-J>.CONI>-lsI>.!st^.l£ltD«) co to to -st< *HH to co  to  CO EH  g ft  H in CO C - CO cr. co ^(i  CO CA2 OS n H n c o n i o c i > ^ Q M « < # o H f t i - c f i n i n i ^ « * t - ' c p I N cn to H C O C ^ C Q ^ - C O ^ E N C O O O C O C V J M C M ^ W C O O L O ^ W  10 10 o- is  N  co cn w  LO !3 -"v .--  cn m *  i m c o c o N ( J i o w w c f t i n « i i C Q t O i - H E - - L O C O O l > - CO-sP r H H r H M t f l n i n < # t o o > o < } HlOcoWffiNCOCOt-cO rH r-l rH r-l r-H r-H  LO r-H W r H ^ c ^ c O ^ L O C ^ ^ ^ l t O C M O O W ^ ^ c O L O a 3 C O r - ) t o c O CO CO t i EH D l o * > • ® o 6 e • • « • • o e > t & » a < O to CO CO CO CO CO r t O ^ M N W a i H c O o O ' H H W M o H H i n ^ B M E H P H < LO' LO co C O t O t O t O N c O t O ^ ^ N N O C - C O C O C O C O C O C O C O C O C O C O C O C O C O e  03 pi EH  o  LO CO LOO L O L O Q O L Q c O O > O 2 c O C O i LO CM CO o o _N M i o i n c o t o H i n i O N M M i a ^ d d w H N N M N M COr-lf-LOWCOE-LOCn O to cn r H H r H M N ^ K M H -i- <HH ^j)  -lLOLOc0 n n t o_ o^ i o i c o S ^fi CO  OEOoC\IOJ _ Q ^ o „ i .o ^c o f f l S o S  w  o  CM co b!>- o to _ IS- O i LO «3< O Cn co CD cn cn *i< to cn  t o n n c n o i ^ c - c n n o o o LOOD ^LOLOLOtO!N-JNt>C0^i<tOtOtOCO  c o c n o H W l o ^ l Q ^ o ^ . a 3 c B . o H M n ^ l O l o c - c D O ) O H l ^ I l n « j | | o < o O G r H r ^ r H r H r - J , - l r H r H H i H C \ ! W W W O a W cn o> 0 1 a> cn cn ov o> o i roroa>rowaicncncno)C!>o>o>aiO)cno> cn cn cn r-HrHr—lr-HrHr-lr-4r-IiHr-Ji-^IrHr-jr^r-lrHrHrHrHrHr-lr-lr-lr-lr-lr-ti-lr-Hr-l  >  (97)  h  I n a l l other r e s p e c t s , the method of a n a l y s i s i s the same. The s t a t i s t i c a l e v i d e n c e s u b m i t t e d i n d i c a t e s t h e r e l a t i v e importance of Vancouver t r a d e i n the t o t a l f o r the p r o v i n c e . Vancouver  I n 1908,  e x p o r t s r e p r e s e n t e d under 30% o f t h e t o t a l f o r B r i t i s h  Columbia, and w h i l e t h i s p e r c e n t a g e g r a d u a l l y i n c r e a s e d to 5 0 % i n 1918 the  and 1919, i t eased o f f t o l e s s t h a n 4 0 % i n 1920.  From 1920  on,  p r o p o r t i o n i n c r e a s e d v e r y r a p i d l y , u n t i l , i n 1933, the v a l u e of  t h i s c i t y ' s e x p o r t s amounted to o v e r 75% o f t h a t f o r the whole p r o v i n c e . The  import t r a d e of the p r o v i n c e , however, has always been l a r g e l y  t h r o u g h Vancouver, never f a l l i n g below 60%. a f t e r 1910, the  From 1920  on,  p e r c e n t a g e d e c r e a s e d i n one or two y e a r s , b u t , on t h e whole, i t has  shown a moderate and s t e a d y i n c r e a s e ,  As i n the c a s e of e x p o r t s , t h e  h i g h p o i n t was r e a c h e d i n 1933, when o v e r 85% o f Canadian i m p o r t s e n t e r i n g from t h e West came t h r o u g h t h i s p o r t . importance of Vancouver's  T h i s i n d i c a t e s the  p o s i t i o n as a d i s t r i b u t i n g c e n t e r f o r not  o n l y B r i t i s h Columbia, but a l l o f Western Canada,  The t r e n d s of i m p o r t v a l u e s f o r Vancouver  ( F i g u r e 33, Page 98)  and B r i t i s h Columbia ( F i g u r e 18, Page 68), f o r t h e p e r i o d 1908-1920, show some c o n s i d e r a b l e d i f f e r e n c e one f r o m the o t h e r .  For t h e  first  h a l f o f t h e p e r i o d , i . e . , up t o t h e b e g i n n i n g of the War, t h e d e v e l o p ment o f t h e two was much a l i k e , h u t from 1914 t o 1916, w h i l e ' b o t h drop c o n s i d e r a b l y i n v a l u e , Vancouver shows t h e g r e a t e r r e l a t i v e d e c r e a s e . Such a d e c r e a s e i n P a c i f i c Coast i m p o r t s was due, i n l a r g e measure, t o the  g e n e r a l decrease t h r o u g h o u t the Dominion i n t h e purchase o f overseas  (98)  (100)  (102)  f o r e i g n g o o d s , and the United  a  States.  that B r i t i s h  consequent i n c r e a s e  i n the v a l u e  U n d e r t h o s e c o n d i t i o n s , i t was  C o l u m b i a d i d not  share to  of  quite  the  on A m e r i c a n r a i l w a y s t o t h a t p o i n t  f i n a l d e s t i n a t i o n of the  w h i c h was  the  goods.  For the  province  are almost  the  - 9.7%  to  period  1920-1936, the  Since  c o n s i s t e n t l y maintained o v e r 80%, The  the  that  find  largely period trade.  general  of Import v a l u e s  city  ( F i g u r e 34,  total  two  two  f o r the i s not  w i t h those of B r i t i s h  trend,  f o r the  as a g a i n s t  the  the  of  unaccountable. same,  f o r the  period  Columbia ( f i g u r e  11.3%, but  this  two.  than was  c i t y d u r i n g the  e f f e c t s of the  99)  period  province  much g r e a t e r  r a p i d growth of the  l a t e r , by and  c i t y was  for  Page  c a s e s i s e x a c t l y the  of Vancouver exports  17,6%  of the v e r y  o f 1 9 1 2 - 1 9 1 3 , and, The  period  a c e r t a i n degree of s i m i l a r i t y between the  whole p r o v i n c e ,  on a c c o u n t  for the  between the  decrease i n the  percentage annual increase f o r the  C i t y of Vancouver  over the whole  records  a p e r c e n t a g e o f the  1 9 0 8 - 1 9 2 0 ( F i g u r e 35, P a g e 100) 26, P a g e 76),- we  situation,  Vancouver import values d u r i n g t h i s  I n comparing the v a l u e s  The  and  d e g r e e of s i m i l a r i t y  percentage annual  the  10.3%.  ( F i g u r e 22, P a g e 72)  Identical,  through  In a d d i t i o n to t h i s  p r o d u c t of abnormal c o n d i t i o n s , the  province  i n the  on t h e b o r d e r c l o s e s t t o  shows a somewhat l o w e r a n n u a l a v e r a g e i n c r e a s e t h a n the  nature!  such a l a r g e extent  i m p o r t t r a d e , s i n c e most A m e r i c a n p r o d u c t s w e r e s h i p p e d States  imports•from  boom  G r e a t -V/ r tipon.  d e v i a t i o n s from the trend,  a  are  * 1  similar  (103)  i n b o t h cases, a l t h o u g h t h e former  ated development than the  ' Again,  s i m i l a r i t y , but  one  and  F i g u r e 30, P a g e 8 0 ) , w e ' f i n d a d e g r e e  V a n c o u v e r e x p o r t s w e r e on t h e  and  Both  f r o m t h e n t o 1929 , b o t h  i n c r e a s e from  eased  1920-1921, w h i l e  increases.  i n .1929, and  saw b e f o r e , , B r i t i s h  the whole p e r i o d 1920-1936,  the province. l a t t e r ' s was  C o l u m b i a was  The  figures,  The  former's  I n the  the  i n exports •  only province  indicate that  i n c r e a s e p e r y e a r was  As we  i n f o r m a t i o n has  2,9%,  of  values  this  w h i l e the  go  o n t o a more d e t a i l e d  we  While  encounter  time, the source  been t h e Dominion Bureau  i t i s n e c e s s a r y to b r i n g i n t o use  detailed,  i n trade  1,8%.  Vancouver Harbor Board. and  break  e v e n more p r o n o u n c e d f o r t h e . C i t y o f V a n c o u v e r t h a n f o r  statistical  Statistics,  British  increase i n export  d iagrams  I n our r e s e a r c h t i p t o t h e p r e s e n t o f our  The  the decrease  W e s t e r n Canada to m a i n t a i n an a v e r a g e a n n u a l  i n c r e a s e was  earlier period.  1934,  A s we  over  i n the  of  o f f d u r i n g t h e d e p r e s s i o n o f 1922-1923  showed r a p i d  a d v a n c e s carne, i n b o t h c a s e s , lasted u n t i l  v a l u e s f o r t h e p e r i o d 19,80-1936,  much l e s s p r o n o u n c e d t h a n  Columbia values f e l l ,  accentu-  latter,  comparing s i m i l a r  ( F i g u r e 36, P a g e 101,  shows a much more  study  o f most of  of Vancouver  the annual  trade  r e p o r t s of the  these f i g u r e s are q u i t e comprehensive  several difficulties  i n dealing with  f i r s t p l a c e , p r a c t i c a l l y a l l of the annual  them,  reports give exports  (104)  1  and i m p o r t s i n t o n s , and not i n d o l l a r s .  I have he en t o l d t h a t  i,hat d o l l a r v a l u e s a r e g i v e n a r e merely guesses, and from my e x p e r i e n c e w i t h the r e p o r t s , I would say t h a t t h e v a l u e f i g u r e s a r e very poor guesses and w h o l l y u n r e l i a b l e .  A g a i n , these r e p o r t s do not go back-  e a r l i e r t h a n 1920, so t h a t a comparison  o f tonnage b e f o r e and a f t e r  the opening of the c a n a l i s not p o s s i b l e .  However, they do g i v e  tonnage f i g u r e s f o r e x p o r t s by d e s t i n a t i o n , and f o r i m p o r t s b y o r i g i n , and from t h e s e f i g u r e s i t h a s b e e n p o s s i b l e t o e s t i m a t e t h e amount o f • Vancouver t r a d e p a s s i n g throxigh t h e Panama Oanal.  F i n a l l y , due t o  changes i n a d m i n i s t r a t i o n and p o l i c y , t h e Harbor Board r e p o r t s c o n t a i n no e x p o r t and import f i g u r e s f o r t h e y e a r s 1930 and 1936.  Table 16,, Pages 105-106, g i v e s a d e t a i l e d account t r a d e b y a r e a s from 1921 to 1935,  Those a r e a s have been chosen which  have been d e f i n i t e l y a f f e c t e d by the Panama Canal i n t.i e i r r e l a t i o n s w i t h Vancouver.  o f Vancouver  trade  The l a s t column i n t h e t a b l e shows t h e  e s t i m a t e d Vancouver t r a d e which, passed through t h e c a n a l each year d u r i n g the p e r i o d . was d i f f i c u . l t  T h i s i s o n l y an e s t i m a t e d figure,, i n as much as i t  a t t i m e s t o a r r i v e a t e x a c t f i g u r e s f o r some South and  Central American c o u n t r i e s . F i g u r e s 37 and 58, Pages 107 and 108, i l l u s t r a t e g r a p h i c a l l y the e s t i m a t e d tonnage of Vancouver i m p o r t s and e x p o r t s s h i p p e d  through  the Panama C a n a l . I t w i l l b e seen from F i g u r e 37 t h a t imports p a s s i n g through the Canal t o Vancouver i n c r e a s e d r a p i d l y d u r i n g t h e f i r s t y e a r ~  (105) TABLE 16 VANCOUVER TRADE BY AREAS - 1921-1956 Tonsj weight and measure. ( E x c l u d i n g l o g s and lumber,)  YEAR 1921 Imports Exoorts  1922 Imports Exports  IS 33 Imports  TOUTED KINGDOM  CANADA ATLANTIC  15.892 52 »>94:2  73,028 453,123  X 9 34r Imports Exports  65,164 911,058  1925 Imports Exports  AFRICA  SOUTH AMERICA  18,064  42,751 303,955  Exports  EUROPE  43  6,315 3 3&X  22,895 50,465  36  YffiST INDIES  TOTAL THRU PANAMA  25,664 57  42,718 51,064  58,175 3,681  123,864 366,129  19,986 33o  108,351 59 X ^ 7 9 3  • 9,022 134,927  795  353  25,637 4,411  5,898 322,861  1,583  15,051 114  78,006 577,439  28,583 7,675  54,177 196,178  1,960  1,945 2,16c'  1926 Imports Exports  88,959 758,688  35,978 40 , 540  76,530 260 , 0 27  19 , 9 7 4  6,124 6,019  7,175 214,766 5,0 7 0 1,090,118  1927 Imports Exports  83,582 645,347  60,042 5 3«7 X X  67,518 563,061  150 17,205  9,605 7,456  3,491 224,388 2,498 1,515,646  1928 Imports 77,857 E x p o r t s 1,452,951  36,039 52,959  78,943 947,505  07 12,884  X9 327 28,346  3,558 215,681 21 2,494.646  1929 Imports Exports  67,201 63,840  93,461 749,254  149 14,165  14,005 24,909  18,191 285,309 381 1,777 . 431  1950 Imports Exports  90,304 924,882  BI  n  23,187 134.939 559 1,240,586 45,019 412  185,730 785,832  (106) TABLE 16, c o m a , VANCOUVER TRADE BY AREAS -  YEAR  UNITED KINGDOM  CANADA ATLANTIC  1921 - 1936,  EUROPE  AFRICA  SOUTH AMERICA  WEST INDIES  TOTALlHHJ PANAMA  1951 Imports 59,252 E x p o r t s 1,034,191  28,251 58,388  46,975 764,099  4,709 27,516  45,278 58,880  34,348 57,942  184,445 1,903.074  19 33 Imports 51,687 E x p o r t s 1,805,042  18,745 22,276  22,358 982,018  8,441 6,816  29,512 5,659  27,619 30,258  103,543 2,825,791  1955 Imports . 77,409 •Exports 1,584,456  24,566 24,835  24,258 599,622  5,850 6,648  19,193 38,997  17,511 34,966  151,076 2,054.558  1954 Imports 61,793 E x p o r t s 1,171,056  55 ^783 27,603  22,974 465,839  12,617 10,795  58,181 56,690  28,951 35,389  191,347 1,709,983  1955 Imports 65,880 E x p o r t s 1,505,526  45,271 25,425  26,090 239,256  4 18,370  S3,124 51,600  29,596 28,753  107,369 1,617,957  1956 Imports Exports  N.B,  -  -  F i g u r e s f o r 1930 and' 1956 a r e not a v a i l a b l e ,  Source; Vancouver Harbor Board R e p o r t s , 1921-1936.  (107)  &4  (108) *  to  si EH  O  {109} from 42 t h o u s a n d tons i n 1921  to 123 thousand tons i n 1922.  From  1922 to 1929 j the c a n a l came more and more i n t o use as a channel t r a d e from p o i n t s e a s t of Panama to the P o r t of Vancouver. o n l y i s p e r m i s s i b l e f o r 1950 but  f o r t h e f o l l o w i n g two  ( s i n c e the f i g u r e s a r e not  A guess  available),  years, imports d e c l i n e d very r a p i d l y .  r e c o v e r e d a g a i n i n 1953-1954, and to  for  f e l l o f f i n 1955.  o h t a i n an approximate f i g u r e f o r  They  I t i s not p o s s i b l e  1956.  The tonnage of e x p o r t s s h i p p e d through Vancouver v i a Panama Canal  ( F i g u r e 58, Page 108)  imports, i n 1922,  I n 1921,  rose even more r a p i d l y t h a n that o f  o n l y 50 thousand tons were shipped t h i s way,  the shipments i n c r e a s e d to over 350 thousand t o n s .  set--hack was  experienced  i n 1951, but i n 1952,  Page 105,  a new  h i g h l e v e l of 2,825 thousand t o n s .  shows t h a t over 1,800  A temporary  coincident with the  c o m p l e t i o n of the Ottawa Agreements, e x p o r t s from Vancouver the c a n a l reached  while  through Table .16,  thousand t o n s , i . e . , over 60% o f t h i s  t r a d e , was w i t h the U n i t e d Kingdom.  I t i s s a f e t o say t h a t  the Panama C a n a l , Vancouver would have been a t a g r e a t  without  disadvantage  I n competing f o r t h i s t r a d e w i t h the U n i t e d Kingdom, and  i t seems  a l t o g e t h e r l i k e l y t h a t i t s e x p o r t s t o the U n i t e d Kingdom would have been o n l y t h e s m a l l e s t f r a c t i o n of t h i s f i g u r e ,  .Since 1952,  the volume  o f e x p o r t s has been on t h e d e c l i n e , a s i t u a t i o n which has been due no s m a l l measure to the p a r a l y s i s o f the g r a i n t r a d e . d e a l t w i t h more f u l l y i n a l a t e r  T h i s w i l l he  chapter.  T a b l e 17, Page 110, g i v e s the t o t a l deep sea tonnage of  in  (110)  TABLE 1?  TOTAL  VANCOUVER M B  TOHffJSE,  BRITISH  (DEEP S E A  F O R E I G N COASTWISE COASTWISE -  LESS  COLUMBIA  ONLY)  VIA PANAMA EXPORTS  APPROXIMATE "PERCENTAGE  YEAR  IMPORTS  E S P ORTS  1921  418,257  501,518  10%  16%  1922  439,500  752,045  28  49  1923  387,102  1,091,173  28  29$"'  1924  3 5 o j »2It?  2,015,658  38  62  1925  *? 1 5  1,945,732  26  40  2,689,947  19  41  192 6  .  5  1,122,257  •  IMPORTS  1927,  1,285,589  2,683,015  17  56  1928  1,314,127  4,558,091  16  57  1929  1,718,088  3,619,153  20  49  1930  1,527,364  2,862,889  -  _  1931  1,564,727  S j 9 *D>2 j SO 3  14  50  1932  1^ f-Jl», 1*72  3 ^ /«) 3 ^ 1 0 5  8  75  1933  1,158,763  2,881,015  13  71  1954.  1 »j 5 1 3  2,622,801  14  1935  1,351,792  Source;  j  135  2,493,114  8  Van co uv er Ha.rbor Board R e p o r t s , 1921-1936,  '  65 65  •  '  (111)  Vancouver imports do  not  and  exports  f r o m 1921  include f o r e i g n coastwise,  Columbia coastwise or destined  t r a d e , and  to  1935.  These f i g u r e s  i . e . , P u g e t Sound, or  cover only imports  f o r p o i n t s b e y o n d Cape F l a t t e r y .  and  The  British  exports  l a s t two  originating  columns  e x p r e s s t h e approximate p e r c e n t a g e Vancouver-Panama t r a d e b e a r s t o t o t a l V a n c o u v e r deep s e a t r a d e .  I t w i l l be  I m p o r t a n c e to V a n c o u v e r o f i m p o r t s been I n c r e a s i n g . but  This  rather t h a t imports  hand, the a great  export  i s not  fact  tonnage through the canal  deal, particularly since  i t has  to the  1924,  of the  By  that the  canal  relative has  latter  more.  not  are  On t h e  less, other  from. V a n c o u v e r ha.s g r o w n 1952,  deep s e a  maintained'a c o n s i s t e n t l y high  t h a t the  through the  from P a c i f i c c o u n t r i e s are  t o n n a g e c o n s t i t u t e d o v e r 75% and  due  passing  noticed  Vancouver-Panama  trade  out  of t h i s  percentage since that  port, time.  ' \  (112) CHAPTER V I I I  We p a p e r , and  have seen,  so f a r , t h a t t h e e x p o r t s o f w h e a t , p u l p  o t h e r p r i m a r y p r o d u c t s have p l a y e d a v e r y i m p o r t a n t p a r t  i n t h e e c o n o m i c s e t - u p o f C a n a d a , end Canada.  and  I n the Post-War p e r i o d ,  large excess  more p a r t i c u l a r l y ,  the D o m i n i o n has  of Western  shown a  o f e x p o r t s i n t h e m a j o r i t y o f y e a r s , and  consistently  prosperity  has  come t o d e p e n d , t o a g r e a t e x t e n t , o n o u r a b i l i t y  tp s e l l these  i n TO r i d m a r k e t s *  has been a d e c i d e d s h i f t  f r o m E a s t t o West  the P a c i f i c  attained a  There  i n t h e e x p o r t t r a d e , and  prominence i n t h e Canadian  I t would  p r o v i n c e has  new  economy.  seem a p p r o p r i a t e , a t t h i s p o i n t ,  to i n v e s t i g a t e  various channels through which  t h i s t r a d e passes,, n o t o n l y t h e  i n t e r n a l communication  i . e . , the r a i l w a y s , but also  channels which  products  system,  extend beyond t h e b o r d e r s of t h e Dominion,  the  Canadian  those  those  imaginary  l i n e s which t r a v e r s e the seas t o f o r e i g n lands.  C o m m e r c i a l l y , Canada i s d i v i d e d r o u g h l y i n t o two t r a d i n g a r e a s : the e a s t e r n s e c t i o n , and  f e e d i n g down t h e n a t u r a l  deep i n t h e p r a i r i e  St. John; the western  somewhere n e a r t h e A l b e r t a - S a s k a t c h e w a n b o u n d a r y  f e e d i n g i n t o P a c i f i c t i d e w a t e r a t Vancouver. well supplied with terminal f a c i l i t i e s , mentioned,  but  provinces  c h a n n e l of the S t . Lawrence waterway  A t l a n t i c t i d e w a t e r a t M o n t r e a l and starting  starting  distinct  The  division, line  Quebec  connected by r a i l w i t h the t e r m i n a l f a c i l i t i e s  and  eastern division i s  n o t o n l y i n t h e two  else? i n T o r o n t o , H a l i f a x , a n d  into  ports  Further, i t is' '  of American  Atlantic  ports.  ' '.  (113)  The ' 'est, on the other hand, i s l i m i t e d t o one major o u t l e t , t h e P o r t w  of Vancouver, and two sn a l i e r t e r m i n a l s a t P r i n c e Rupert and Westminster*  Hew  American P a c i f i c t e r m i n a l s a r e of no advantage t o Canadian  e x p o r t e r s , b e c a u s e of h i g h t r a n s p o r t a t i o n c o s t s a r i s i n g out o f the mountainous n a t u r e of t h e P a c i f i c s l o p e .  Consequently, Canadian P a c i f i c  t r a d e c o n c e n t r a t e s l a r g e l y at Vancouver,, and f u t u r e development  may  he e x p e c t e d t o talee p l a c e at t h i s p o i n t .  The two p r i n c i p a l r a i l w a y systems o f Canada a r e t h e t r a n s c o n t i n e n t a l s , t h e Canadian N a t i o n a l R a i l w a y and t h e Canadian P a c i f i c Railway.  The Canadian N a t i o n a l i s an amalgamation o f s e v e r a l  privately-  owned l i n e s which ran i n t o f i n a n c i a l d i f f i c u l t i e s d u r i n g t h e war, n e c e s s i t a t i n g government  intervention.  Between 1917  and 1923, t h e s e  l i n e s were g r a d u a l l y brought under t h e c o n t r o l o f t h e one  government  body, and, by Order i n C o u n c i l of J a n u a r y 30, 1923, the A c t to i n c o r p o r a t e the Canadian N a t i o n a l R a i l w a y Company was b r o u g h t i n t o  effect.  The C a n a d i a n P a c i f i c R a i l w a y i s a w e l l o r g a n i z e d , e f f i c i e n t l y o p e r a t e d , and p r i v a t e l y - o w n e d s y s t e m , r u n n i n g p a r e l l e l t o , and i n c o m p e t i t i o n f r i t h t h e Canadian N a t i o n a l R a i l w a y .  A r e c e n t development, d e s i g n e d to open up a new o u t l e t f o r Canadian wheat t h r o u g h t h e Hudson Bay and Hudson S t r a i t i s t h e Hudson Bay R a i l w a y .  The main d i f f i c u l t y i n t h e use of t h i s r o u t e i s t h e v e r y  s h o r t p e r i o d d u r i n g the y e a r i n w h i c h the Hudson Bay i s n a v i g a b l e , due t o i c e c o n d i t i o n s .  *  \  (114)  I t has a l r e a d y he en p o i n t e d out that the Canadian r a i l w a y system has he en one of t h e most important ' Canadian u n i t y .  B e f o r e the opening  c o n t r i b u t i n g f a c t o r s to  of t h e C a n a l , i t was  t h i s system  which t r a n s p o r t e d goods from and to Vancouver over t h r e e thousand m i l e s o f d i f f i c u l t c o u n t r y to the A t l a n t i c seaboard. time and  Prom t h e s t a n d p o i n t of  c o s t , any a l t e r n a t i v e s to s h i p p i n g goods over t h e s e l i n e s were  almost p r o h i b i t i v e ,  I t i s t r u e t h a t a s m a l l amount o f t r a d e t o o k  p l a c e from t h e A t l a n t i c c o a s t , t h r o u g h t h e G u l f of Mexico, a c r o s s the o l d Panama r a i l w a y , and up the P a c i f i c Coast to Vancouver (and v i c e v e r s a ) , hut the volume of t h i s t r a d e was v e r y s m a l l indeed.  Again,  some t r a d e from Europe came around Cape H o r n , o r a c r o s s the P a c i f i c v i a t h e I n d i a n Ocean-Suez Canal r o u t e , hut  i n a l l of t h e s e cases, time  and  d i s t a n c e were such f o r m i d a h l e o b s t a c l e s t h a t such s h i p p i n g l a n e s c o u l d h a r d l y he c l a s s e d as a n y t h i n g more t h a n v e r y minor f a c t o r s i n the Canadian d i s t r i b u t i v e system.  With t h e opening o f the Panama, Canal i n 1914, use by Canadian s h i p p i n g from 1921  and  i t s active  on, t h e Canadian d i s t r i b u t i v e system  underwent some d r a s t i c changes, both i n t e r n a l and e x t e r n a l .  These  changes were v a l u a b l e i n some r e s p e c t s ; i n o t h e r s , l e s s s o , I t i s common knowledge t h a t r a i l w a y s the w o r l d over, o p e r a t i n g on a c o m p e t i t i v e b a s i s , a r e a c t u a t e d by two D e c r e a s i n g C o s t s , and, traffic will  f o r c e s ; f i r s t , the law o f  second, the p r i n c i p a l o f " c h a r g i n g what t h e  bear,"  In the f i e l d  o f r a i l w a y economics, the Law  of D e c r e a s i n g  Costs  » .,  (115)  i m p l i e s a l e s s t h a n p r o p o r t i o n a l i n c r e a s e i n c o s t f o r each a d d i t i o n a l u n i t of goods c a r r i e d .  V i r t u a l l y BB% o f a r a i l w a y ' s expenses are  » f i x e d c h a r g e s , which do n o t v a r y w i t h t h e amount of t r a f f i c c a r r i e d . Therefore, a railway  company may, i n some c a s e s , charge l e s s , and, i n  o t h e r s , more f o r s i m i l a r s e r v i c e s r e n d e r e d , - depending e n t i r e l y on the amount of t r a f f i c which would move a t a g i v e n r a t e .  That r a t e would  t e n d t o s e t t l e at the p o i n t w h i c h would move the most t r a f f i c at the greatest p r o f i t .  I n no case would i t go below t h e c o s t of moving the  goods.  One o f the p r i n c i p a l f a c t o r s i n d e t e r m i n i n g "what the w i l l bear" i s the competition this respect,  of o t h e r means of t r a n s p o r t a t i o n .  the Canadian r a t e s t r u c t u r e i s r e g u l a t e d ,  ' e x t e n t , by t h e c o m p e t i t i o n  traffic In  t o a great  o f American t r a n s p o r t a t i o n f a c i l i t i e s .  In  l i k e manner, Canadian l i n e s a c t as a g o v e r n o r on t h e American r a t e structure.  A l l other t h i n g s b e i n g e q u a l , any s h i p p e r , American or  Canadian, w i l l seek out the cheapest t r a n s p o r t a t i o n s e r v i c e f o r h i s goods. A f t e r 1914, t h e Panama Canal became a new and p o t e n t f a c t o r i n t h e r a t e s t r u c t u r e s of b o t h A m e r i c a n and Canadian r a i l r o a d s ,  Undoubt-  e d l y , any a l t e r n a t i v e t r a n s p o r t a t i o n system i n t h e form o f a waterway h o l d s a d i s t i n c t advantage, i n p o i n t of c o s t , over a r a i l system. t h e f i r s t p l a c e , t h e waterway has not as  In  heavy c a p i t a l c h a r g e s t o meet  as t h e r a i l w a y , i . e . , c o s t of p l a n t and equipment; i n t h e second place;, the upkeep and overhead a r e not a s h i g h .  I n a d d i t i o n t o those v e r y  i m p o r t a n t p o i n t s , w a t e r t r a n s p o r t a t i o n systems a r e much more f l e x i b l e  * \  (116)  than r a i l w a y and. t h e ships As  systems,  c a r g o must h e  can  Trains  must o p e r a t e b e t w e e n c e r t a i n f i x e r !  assembled at  those points f o r shipment,  P e . c i f i c - A t l a n t i c ocean r o u t e s , factor  i n the" r a t e  As railways  f o r measuring- t h e  Mr.  no q u e s t i o n  became a v e r y  s t r u c t u r e of the  of t h i s c o n t i n e n t ,  Problem,  important  a c t u a l e f f e c t of the  we  are  faced  t h e Panama r o u t e  has  and . f o r c e f u l l y t h a t of t r a f f i c t h a t  I t has could  not  systems.  Canal upon  the  difficult  important  I t should he  made p o s s i h l e t h e  link i n  s t a t e s , "There can  d i v e r t e d an hut  i s cargo.  competitive,  here with a very  M e a r s , c o m m e n t i n g on t h i s p o i n t ,  that  connecting  North American railway  tonnage from t r a n s c o n t i n e n t a l r a i I w a y s ,  flow  whereas  move ( w i t h i n r e a s o n a b l e b o u n d s ) t o p l a c e s w h e r e t h e r e  a c o n s e q u e n c e , t h e Panama C a n a l , v i e w e d a s t h e  points,  development  o t h e r w i s e h a v e moved t o  volume  stated o f an  such  he of  clearly immense  distant  1  markets,"  He  g i v e s the  c o n d i t i o n s which  f o l l o w i n g t a b l e as  e x i s t i n the  United  Comparative T r a n s c o n t i n e n t a l Commodity.  an  Paper Total  of  the  States, Tonnage, R a i l Tons by  Ammunition C o t t o n p i e c e goods Soda a l u m i n a s u l p h a t e L a r d and l a r d sub s t i t u t e s Paint , Roofing Material Rosin Soap Soda I r o n and S t e e l  illustration  and  Rai1.  24-5 3,271 25 4,005 6,597 5,845  Canal,* Tons t h r u  3,227 1,255 156,085  567 10,925 4,13.8 8,104 4,541 6, 511 15,154 9,824 779,369  14,918 195,471  25,194 861,907  Canal.  2  * S e l e c t e d c o m m o d i t i e s m o v i n g J u n e - N o v e m b e r 1925* D a t a f r o m t h e I n t e r s t a t e Commerce C o m m i s s i o n , F o u r t h S e c t i o n , A p p l i c a t i o n No. 12456, (1926) 1. M e a r s , op. c i t , , 126. 2, i b i d , , 138,  (117) He c o n c l u d e s , " I n any event, i t i s c l e a r t h a t the Panama r o u t e has 5 c r e a t e d a s e r i o u s problem o f readjustment f o r Western r a i l r o a d s , " A s i m i l a r problem e x i s t s i n Canada.  B e a r i n g i n mind t h e  f a c t t h a t not a l l shipments v i a Panama would n e c e s s a r i l y have gone b y r a i l had t h e c a n a l not b e e n t h e r e , t h e f i g u r e s f o r Vancouver and New Westminster e x p o r t s and i m p o r t s t o and f r o m E a s t e r n Canada (1928-1934) g i v e some i d e a of t h e t r a n s c o n t i n e n t a l t r a f f i c by w a t e r .  TABLE 18 VANCOUVER AND HEW WESTMNSTEE WATER-BORNE EXPORTS AND EXPORTS TO At© FROM EASTERN CANADA ij  YEAR 1928 1929 1930 1931 1932 1933 1934  '  _ n  ^  o  n  g  j  -  EXPORTS  IMPORTS  22,066 72,078 70,340 44,938 33,991 28,814 32,763  30,615 54,400 33,772 28,354 19,836 27,447 61,392  Sources "A Study o f t h e Canadian R a i l w a y Rate S t r u c t u r e and I t s R e g i o n a l Influ.en.ee i n B r i t i s h Columbia", V i c t o r i a , F e b r u a r y 1936, p.34 The above f i g u r e s , t o g e t h e r w i t h t h o s e c o n t a i n e d i n Table 16 . Page 105, s  are  t h e o n l y f i g u r e s a v a i l a b l e f o r t h e s e two p o r t s a t t h e p r e s e n t time. T h e . g r e a t e r impact of t h e c a n a l has been f e l t i n t h e West of  Canada, r a t h e r t h a n t h e E a s t .  T h i s i s b e s t seen from t h e r e c o r d of  t r a f f i c t h r o u g h t h e Panama C a n a l t o and from t h e E a s t and West Coasts of Canada, f o r the y e a r s 1921-1936, (See Table 19, Page 118.) 5. Mears, op. c i t . , 158.  I n 1930,  (lie) T A B L E 19  TRAFFIC TO AND FROM THE EAST AND WEST COASTS OF CANADA VIA THE PABAMA CANAL, YEARS ENDED JUNE 5 0 , 1921-1956 '  MIGINA^W"ON1  YEAR  WEST COAST  '  MismfETK}R7  EAST COAST  WEST COAST  EAST C.C  125,638  39,561  126,414  16,558  180,981  25,174  148,505  6,521  604,546  92,939  101,588  IS 5 ^283  13  1,223.102  110,677  141,086  197,204  19 (2 5  1,082,282  121,805  158,709  379,284  1926  1,650,855  160,196  168,295  614,580  1927  1,548,783  ,207,005  248,009  803,418  1928  2,845,675  168,287  268,960  394,173  2, 650,646  231^1S8  1950  17968,966  185,776  267,282  556,562  1951  2,307,257  137,756  271,621  492,532  1932  S j) 33 «3 $ S l l  89,445  167,655  529,517  15 5 *3  2,896,162  121,875  154,511  528,058  193.4  2,201,180  19 6,204  189,227  498,706  1935  2,490,205  248,658  176,698  547,974  1936  2,705,567  298,884  223,174  506,673  1921  1925  1929  1  Source;  Canada Y e a r Book, 1937, p.700.  '  266,455  539,767  , , traffic  (119) o r i g i n a t i n g on t h e West C o a s t  reached  2,968,966 t o n s , w h i l e t h a t o r i g i n a t i n g 1936  - 298,884 t o n s .  i n the East reached  -  t h e 'peak i n  Over t h e whole p e r i o d , t h e tonnage o f i m p o r t s  E a s t and West has t e e n r e l a t i v e l y the f i g u r e s  i t s highest level  s n a i l , and i t i s q u i t e obvious,  submitted, t h a t t h e y form  from  a very minor p r o p o r t i o n of  Canadian t r a d e a f f e c t e d by t h e c a n a l .  It is  has been suggested, w i t h a g r e a t d e a l o f t r u t h , t h a t .trade  not t h e o n l y p a r t of t h e C a n a d i a n economic system  t h e c o n s t r u c t i o n o f t h e Panama C a n a l . wheat p r o d u c t i o n , w h i c h attributed  t o be a f f e c t e d b y  Some v e r y m a r k e d c h a n g e s i n  have t a k e n p l a c e s i n c e 1920, can b e  to t h e opening  indirectly  o f t h i s w a t e r w a y , a n d s u c h c h a n g e s ha.ve, i n  t u r n , profoundly a f f e c t e d t h e Canadian f r e i g h t r a t e s t r u c t u r e *  C o n s e q u e n t t o a g r e a t d e a l o f a g i t a t i o n i n t h e West, f r e i g h t r a t e s on g r a i n were r a d i c a l l y the Board  of Hallway  Coast  time,  r a t e s on g r a i n and f l o u r  shipped  ports f o r export, t o the l e v e l that maintained  products c a r r i e d East.  on such  T h i s p l a c e d t h e Western s h i p p e r on a n equal  f o o t i n g w i t h t h e E a s t by t h e a p p l i c a t i o n o f an equal mileage  on g r a i n m o v i n g o u t o f t h e c o x m t r y e i t h e r  PacifiG  seaboard,  thus r e d u c i n g t h e marketing  farms from t h e A t l a n t i c  increased.  able t o take advantage o f t h e s h o r t e r r a i l  charge  f o r equal  by t h e A t l a n t i c or  costs t o producers  W e s t , who were f o r m e r l y a t a n i n c r e a s i n g d i s a d v a n t a g e their  At t h i s  C o m m i s s i o n e r s o r d e r e d t h e C a n a d i a n P a c i f i c and  Canadian N a t i o n a l r a i l w a y s t o reduce to P a c i f i c  r e v i s e d i n 1925,  Canadian  i n the  as t h e d i s t a n c e of  Prom t h i s t i m e o n , t h e y haul to the P a c i f i c  were  and s h i p  <  (120)  s  b y Panama t o t h e E u r o p e a n m a r k e t . accentuate  Such a r e d u c t i o n i n c o a t s tended t o  the e f f e c t s of the prevailing: high price  of wheat i n w o r l d  markets, w i t h a c o n s e q u e n t i n c r e a . s e i n p r o d u c t i o n i n t h o s e most d i r e c t l y a f f e c t e d . chapter  provinces  T h i s w i l l be d e a l t w i t h i n the f o l l o w i n g  in-more d e t a i l , b u t t h e f o l l o w i n g f i g u r e s w i l l  p r e s e n t time- t o i l l u s t r a t e . t h e  serve at t h e  point i n question:  TABLE 20 IBM'  PRODUCTION I N WESTERN CANADA B Y PROVINCES, 1 9 0 8 - 1 9 5 2 , (Millions  YEAR  ALBERTA  J  1909  of Bushels)  SASKATCHEWAN  6,8  MANITOBA  34,7  50,5  1912  ,34,3  107.0  63.0  1917  52.9  117.9  41,0  1922  61.8  240.5  60.1  1927  , 171,0  252,5  30.8  1932  167,0  211,6  44.0  • -  Sources D o m i n i o n Bureau o f S t a t i s t i c s , Canada Y e a r Book.  Over t h e w h o l e p e r i o d 1 9 0 8 - 1 9 3 2 , t h e r e w a s a d e c i d e d s h i f t of gravity  o f wheat p r o d u c t i o n f r o m t h e p r o v i n c e  Saskatchewan and A l b e r t a , a f a c t to  t h e opening  It  o f t h e Panama  may b e s u r m i s e d  I n the center  of Manitoba to c e n t r a l  i n some c o n s i d e r a b l e d e g r e e  attributable  Canal,  that  s u c h a c h a n g e was b o u n d t o h a v e i t s  *  effect the  (121)  on t h e e s t e r n d i v i s i o n o f t h e C a n a d i a n r a i l w a y  system.  w  increase  i n s h i p m e n t s of C a n a d i a n wheat v i a P a c i f i c  Coast  -With terminals  came -a v e r y r e a l p r o b l e m f o r t h e r a i l w a y s - t o c u t down t h e l o s s e s entailed  i n t r a n s f e r r i n g empty, c a r s  Mr. H a r o l d  I n n i s sums t h i s  from the coast back t o t h e p r a i r i e s .  s i t u a t i o n u p i n t h i s way; " I n A l b e r t a ,  e x p a n s i o n i n a c r e a g e a n d p r o d u c t i o n was more d i r e c t l y e f f e c t s o f t h e c a n a l , and t h e s h i f t  o f w h e a t movement t o V a n c o u v e r h a s  p o s s i b l y i n c r e a s e d c o s t s through the re-arrangement facilities,  particularly i n handling  empty c a r s , "  of t r a n s p o r t a t i o n  4  Another problem which has been accentuated o f t h e Panama C a n a l manufacturing  i s found i n t h e recent  centers to concentrate  rather than i n i n l a n d c i t i e s .  This puts  t h e y must  include i n t h e i r  haul.  f o r i n d u s t r i a l and  t e n years,, t h e r e  have  c o r p o r a t i o n s opening branch  at a d e c i d e d  costs of marketing  disadvantage,  a long, expensive  since rail  "The a d v a n t a g e o f i n l a n d c i t i e s  r e f e r e n c e t o t h e P a c i f i c market have been c o n v e r t e d Such a t r e n d  coasts,  i n V a n c o u v e r and i n t h e E a s t e r n  the i n l a n d c i t i e s  To q u o t e Mr. I n n i s a g a i n ,  by the c o n s t r u c t i o n  on t h e A t l a n t i c and P a c i f i c  been numerous i n s t a n c e s o f l a r g e i n d u s t r i a l  centers,  trend  During the past  factories close to tidewater, both  linked to the  with 5  into penalties."  i n i n d u s t r y has l i k e w i s e p e n a l i z e d t h e r a i l w a y s , e i t h e r  through t h e consequent l o s s of t r a f f i c  t o and f r o m t h e s e  or t h r o u g h f o r c i n g them t o c o - o p e r a t e w i t h r e d u c i n g r a t e s t o meet t h i s 4, I n n i s , H a r o l d 5, i b i d , , 1 3 0 7 ,  inland  cities,  the i n l a n d p r o d u c e r by  competition.  A, C a n a d a and t h e Panama C a n a l ,  p.1316.  < 1  (122)  W h i l e t h e Panama C a n a l production to the P a c i f i c  coast  has had a t e n d e n c y to s h i f t i n preference i n t h e St,  t o the East  considerable  coast, the  development o f t h e W e l l a n d  Canal  this to a certain extent.  I t w i l l undoubtedly give a greater  to  the Eastern producer,  coxinterbalance t h e e f f e c t t i o n centered  o f t h e Panama. C a n a l  i n O n t a r i o and t h e E a s t e r n  since  advantage  and keep C a n a d i a n p r o d u c -  provinces.  of the Canadian external d i s t r i b u t i v e  the t r a n s p o r t a t i o n routes  we a r e c h i e f l y  offset  who i s a l r e a d y s t r o n g l y e n t r e n c h e d , and t h u s  In our examination i.e.,  Lawrence b a s i n w i l l  connecting; t h i s country  concerned i n t h i s  study  1921, r a t h e r t h a n i n t h e E a s t ,  o f t h e Panama C a n a l a r e q u i t e o b v i o u s , w i t h t h e B r i t i s h Columbia coast,  with world  system, markets,  w i t h t h e d e v e l o p m e n t s i n t h e Yfest Some o f t h e r e s u l t s o f t h e o p e n i n g and t h e y  a r e immediately  associated  and more p a r t i c u l a r l y w i t h t h e P o r t o f  Vancouver,  -  The  .  most d i r e c t a n d e a s i l y m e a s u r e d e f f e c t o f t h i s new h i g h w a y  o n V a n c o u v e r and i t s h i n t e r l a n d , W e s t e r n C a n a d a , h a s b e e n t h e s a v i n g i n time and d i s t a n c e by w a t e r t o t h e i m p o r t a n t This  saving  i s i l l u s t r a t e d t o advantage by Table  .quite apparent t h a t , b e f o r e in  competing f o r t r a d e  I ti s  disadvantage  A s a v i n g o f some '20 days and  from Vancouver t o t h e Mediterranean  g o o d i n d i c a t i o n o f why e x p o r t s opening of the c a n a l .  markets.  of the world.  21, Page 125.  1 9 2 1 , V a n c o u v e r was a t a g r e a t  i n world  o v e r 4000 m i l e s i n t h e t r i p  the  trending c e n t e r s  from t h i s port  increased  is a  so r a p i d l y  after  S i m i l a r l y , a s a v i n g o f 25.1 days and 5,666  m i l e s t o L i v e r p o o l shows how much c l o s e r V a n c o u v e r h a s become t o t h e  (123)  I ABIE 21  TABLE OP DISTANCES FROM VANCOUVER, B.C., TO ATLANTIC AND EUROPEAN PORTS. (VIA PANAMA CANAL.)  FROM VANCOUVER TO -  MILES VIA MAGELLAN  IHLBS VIA PANAMA  SAVING IN MILES  SAVING IN DAYS  Boston  13,876  6, 200  7,676  New York  13, 905  6,032  7„873 •  32© 3  Charleston  13,856  5,622  8,234  35,8  New O r l e a n s  14,321  5,453  . \ 8,868  56.4  Liverpool  14,272  8,606  5,666  23.1  Hamburg  14,653  9 p 125  5,528  22.5  Bordeaux  14,052  8,556  5,376  21.9  Gibraltar  13,341  8,391  4,950  SO « X  Notes  „  The s a v i n g t i m e i n days i s computed i n the b a s i s of v e s s e l s of t e n knots.  S o u r o e r Annual R e p o r t o f the H a r b o r Commissioners o f Vancouver, B.i 1920, p.26.  (124)  i  U n i t e d K i n g d o m m a r k e t , and trade w i t h the  Old  accounts  C a n a d i a n t a r i f f r e l a t i o n s was  e a r l i e r chapter, reviewed  to B r i t i s h C o l u m b i a becomes e v i d e n t e a r l y as  1912,  192V,  easily  this  as a r e s u l t  t r e a t y was  W h i l e no t r a d e f i g u r e s a r e  seen that before  the  participate i n t h a t trade  i n w h i c h th*e h i s t o r y  (Pages 4 4 - 4 6 ) , an obvious  the Dominion government  w i t h t h e "*est I n d i e s , and and  o f t h e Panama  entered  into a trade  o n l y u n d e r t h e g r e a t e s t hand l e a p s , two;  both  35,000 t o n s  could 1921',  Imports and  and  38,000  for a s i n g l e year.  and  again at the  into treaties  tons  (See  p a r t i c u l a r l y t h e p r o v i n c e s f o r m e r l y at a d i s a d v a n t a g e d i s t a n c e from the Old  Country.  The  from Vancouver t o Great  B r i t a i n rose  1,803,000 t o n s  while  i n 1932,  in  exports  In •  1929,  of other t r a d e agreements between t h e  f o r e i g n p o w e r s , e.g.,  of  to  i n c r e a s e d f r o m 15,892 t o n s  to the h i g h f i g u r e o f 90,504 tons  effects  i n respect  f r o m 5 2 , 9 4 5 t o n s . i n 1921  1952.  and  t a b l e c i t e d a.bove shows t h a t  imports  with  Imperial Conference i n  S u c h t r a d e a g r e e m e n t s p r o v e d most v a l u a b l e t o W e s t e r n C a n a d a ,  g o v e r n m e n t and  i t is  105.)  t h e U n i t e d K i n g d o m i n 1919,  The  1920  Since  1  I h e C a n a d i a n f e d e r a l government e n t e r e d  1921  agreement  opening of the c a n a l , ' B r i t i s h Columbia  r e s p e c t i v e l y , f o r the P o r t of Vancouver alone, p.  gain  route.  a v a i l a b l e p r i o r t o 1920,  e x p o r t s have i n c r e a s e d v e r y r a p i d l y , r e a c h i n g  16,  of  e x t e n d e d and b r o a d e n e d i n  a v e r y p r o f i t a b l e t r a d e has g r o w n up b e t w e e n the  Tahle  increased  Country.  • R e f e r r i n g hack t o an  As  i n l a r g e measure f o r t h e  Prance,  Poland,  Dominion  South A f r i c a ,  and  Brazil,  are r e f l e c t e d  illustrated  i n Table  areas,  one  effect  on B r i t i s h  i n the f i g u r e s f o r the s e v e r a l trading16.  From a study  i s able to a r r i v e at f a i r l y Columbia  of Vancouver  areas  figures by  trading  concrete c o n c l u s i o n s as to  and W e s t e r n Canada of t h e opening  the  of the  canal.  It  i s customary  i n t h e West t o s t r e s s t h e a d v a n t a g e s  t h e Panama C a n a l h a s b r o u g h t remember t h a t  i t has  which  t o W e s t e r n t r a d e ; n e v e r t h e l e s s , one  a l s o been of advantage  to E a s t e r n t r a d e ,  should  perhaps  even to t h e u l t i m a t e d i s a d v a n t a g e o f the West.  P r i o r t o the opening had to  four r e l a t i v e l y A u s t r a l a s i a and  A t l a n t i c O c e a n and via  o f t h e Panama C a n a l , E a s t e r n  expensive  channels through which  the O r i e n t .  These r o u t e s were;  through the Sues C a n a l ;  producers  to s h i p t h e i r  (1) a c r o s s t h e N o r t h  (2) a c r o s s t h e S o u t h  t h e C a p e o f Good H o p e ; (3) s o u t h and w e s t v i a t h e S t r a i t s  and" (4) h y r a i l the P a c i f i c .  a c r o s s Canada t o Vancouver,  With the  became i n d e p e n d e n t  and  t i i e n c e by  Atlantic  of Magellan  steamer  o p e n i n g o f t h e Panama C a n a l , t h e E a s t  of the  goods  over  suddenly  l o n g , e x p e n s i v e r a i l h a u l a c r o s s Canada,  could s h i p d i r e c t wi t h out i n c u r r i n g t h e heavy c o s t s of t r a n s h i p m e n t Vancouver.  Mr.  I n n i s goes s o f a r as to say t h a t , but  through Vancouver, it  f o r wheat  andat  shipments  t h e l a t t e r a c t u a l l y l o s t more t r a d e t o t h e E a s t  than  gained*  As  another p o i n t i n f a c t , the p o r t of Vancouver  ly  l o s e a c o n s i d e r a b l e volume of s i l k  of  the opening o f the  canal.  The  shipments  Japanese  will  from Japan as a  undoubtedresult  are already considering  the  .  ,  (126)  c o n s t r u c t ! o n of f a s t e r to  f r e i g h t e r s i n which t o ship t h e i r  the European market, i n preference  through  V a n c o u v e r now  new  waterway i s not  for  Canada's P a c i f i c  One  i n use.  o f t h e most  o f exports to  Exports  will  carry the  light,  and  f a c t o r s i n Canada's e x t e r n a l  coast over  of  the  from t h i s  region.  are l a r g e l y bulky, primary  products,  e.g. ,  which take  a g r e a t d e a l , o f space,  rate schedule.  Imports,  yet which  on t h e o t h e r  hand,  exports from the P a c i f i c f a r  value,  s h i p s c o m i n g out  l a y s a b u r d e n on P a c i f i c  Under the circumstances,  loss  i n higher  freight  destined  f o r more p o p u l o u s A m e r i c a n P a c i f i c  it  still  has a d i s t u r b i n g i n f l u e n c e on t h e  to  and  exceed  of  the  imports  and  rates, a fact  c o a s t t r a d e not encountered  a certain extent, this factor  both  can  to Vancouver  t h e c o n s e q u e n t w a s t e s p a c e must b e b o r n e o u t  e x p o r t s must s t a n d t h i s  To  Since  i n t o n n a g e and  of the round t r i p s  trade routes.  the  rainbow  i n l a r g e p a r t much-less b u l k y , manufactured goods, which  imports, both  profits  o f .the  empty t o n n a g e p r o b l e m a r i s i n g out  a higher r a t e charge.  travel  presume t h a t  imports  lumber, cargoes  o n l y move o n a l o w  comprise  may  o f g o l d a t t h e end  disturbing  the P a c i f i c  from the P a c i f i c  w l i e a t and  one  route  ports.  d i s t r i b u t i v e system i s the excess  direct  to the o c e a n - r a i l ~ o c e a n  Consequently,  e n t i r e l y a. p o t  silk  which  i n other  Is o f f s e t by  worId cargoes  coast ports; nevertheless, s c a l e of ocean f r e i g h t  rates  from Canadian p o r t s .  The r o u t e s , and,  Panama C a n a l h a s i n t h i s way,  has  considerably affected a l l world had  i t s i n f l u e n c e on t h o s e  shipping  lanes emanating  .  ,  (127)  from B r i t i s h . Columbia p o r t s .  P r o b a b l y t h e most important r o u t i n g f a c t o r  i n sea t r a f f i c i s t h a t o f time, and we have seen how i m p o r t a n t i t i s i n Vancouver's t r a d e .  Johnson and Huebner h o l d t h a t "no r o u t i n g  -  considera-  t i o n i s more important t h a n t h i s r e d u c t i o n i n t i m e , f o r from i t r e s u l t more' f r e q u e n t steamship s e r v i c e s , more r a p i d d e l i v e r y , and a r e d u c t i o n 6 i n operating costs."  I n a d d i t i o n t o the time f a c t o r , t h e r e a r e o t h e r  elements w h i c h determine the common channels of s h i p r j i n g , and some of t h e s e a r e to be found on t h e P a c i f i c coast of N o r t h America.  .For example,  i t i s p o s s i b l e t o o b t a i n cheaper f u e l at American s t a t i o n s due t o a p l e n t i f u l s u p p l y of o i l i n C a l i f o r n i a .  Undoubtedly, " i n so f a r as the c a n a l  encourages t h e e s t a b l i s h m e n t o f d i r e c t steamship l i n e s , i t w i l l d i s c o u r a g e • i n d i r e c t shipments and the t r a n s h i p m e n t i n c i d e n t to them." 7  B r i t i s h Columbia p o r t s have a p a r t i c u l a r i n t e r e s t i n t h e d i r e c t i o n and the volume of tra.de which p a s s e s over two of t h e majors h i p p i n g r o u t e s t h r o u g h the Panama C a n a l .  An Azmuth c h a r t shows the  p o r t of Vancouver as not f a r removed ,from the s h o r t e s t r o u t e between the A t l a n t i c and the O r i e n t .  S h i p s coming t h r o u g h the c a n a l t r a v e l up  the-.coast of t h e U n i t e d Sta.tes i n a g r e a t c i r c l e , and break away from the N o r t h American c o n t i n e n t not f a r below t h e 4 9 t h p a r a l l e l .  On the  o t h e r hand, v e s s e l s l e a v i n g B r i t i s h C o l u m b i a , l o a d e d f o r Europe,  travel  down the P a c i f i c c o a s t , t h r o u g h t h e c a n a l , and t h e n t u r n n o r t h i n the A t l a n t i c and pass w i t h i n a few hundred m i l e s of New York i n n a v i g a t i n g t h e s h o r t e s t r o u t e to the C o n t i n e n t .  6. Johnson & Huebner, op. c i t . . 7« x b i d . , 92.  88.  Johnson and Huebner e s t i m a t e t h a t  '•  •  (128)  "the  r o u t e from Great - B r i t a i n to the  only  323  "the  routes  and  miles  traffic  carried  on,  l o n g e r t h a n t h e most d i r e c t r o u t e , "  f o l l o w e d "by  ocean ships  Importance of the by  Panama C a n a l v i a Hew 8  the  d e t e r m i n e d by  e a r t h , by  trading areas,  and  the by  as  the  areas between which trade  spherIty of the  masses l y i n g b e t w e e n t h e  are  In  York i s  ranch  l o c a t i o n.  i s being-  s i z e of t h e  the  as  land  l o c a t i o n of  fuel  9  s t a t i o n s and Vancouver and share i n any increased use  8 9, a  the  cost" of  c o a l or  i t s tributary  J o h n s o n & H u e b n e r , op, i b i d , , 59,  o i l " , i t i s apparent  that  areas are p a r t i c u l a r l y w e l l situated  future development o f t h e Panama  fuel  on t h e s e r o u t e s c o n s e q u e n t t o  Canal.  c i t , , 60.  the  to  CHAPTER  One  IS  of t h e most s i g n i f i c a n t f e a t u r e s i n t h e h i s t o r y of  Canadian economic development d u r i n g the T w e n t i e t h Century lias b e e n the growth i n importance wheat c r o p .  to t h e vhole Dominion of the Western Canadian  More important t o Canada than any other p r o d u c t of economic  a c t i v i t y , i t s u r p a s s e s i n v a l u e any o t h e r s i n g l e i t e m o f our  internal  o r e x t e r n a l t r a d e , and t h e s i z e of t h e crop and i t s v a l u e i n w o r l d markets p l a y s a s i g n i f i c a n t p a r t i n s e t t i n g the s t a n d a r d o f l i v i n g f o r t h e t e n m i l l i o n odd i n h a b i t a n t s of the Dominion. power depends l a r g e l y on t h e a b i l i t y  Canadian p u r c h a s i n g  o f the Western farmer t o d i s p o s e  of h i s wheat i n w o r l d markets at a good p r i c e .  Consequently,  experience  has shown t h a t , i n p e r i o d s of r i s i n g w o r l d p r i c e s f o r g r a i n , Canadian p u r c h a s i n g power i n c r e a s e s , i m p o r t s r i s e , unemployment f i g u r e s d e c l i n e , and p r o s p e r i t y i s e v i d e n t on a l l s i d e s ,  I n t h o s e y e a r s when t h e p r i c e  of wheat f a l l s , i m p o r t s d e c l i n e , p u r c h a s i n g power s h r i n k s , unemployment f i g u r e s r i s e , and b u s i n e s s d e p r e s s i o n s e t s i n .  I t i s g e n e r a l l y agreed t h a t t h e Panama Canal has had a g r e a t e r e f f e c t on Canadian g r a i n t h a n upon any other s i n g l e f a c e t o f Canadian life.  A s i d e e n t i r e l y from the changes d i r e c t l y brought  a r e a s o f our n a t i o n a l l i f e by t h e opening  about I n other  of the C a n a l , i t i s becoming  I n c r e a s i n g l y e v i d e n t t h a t such changes i n the wheat t r a d e , which  have  r e s u l t e d s i n c e 1921, have i n t h e m s e l v e s b r o u g h t about a l t e r a t i o n s f a r r e a c h i n g i n t h e i r s i g n i f i c a n c e upon t h e economy of Western Canada,  Out  o f such a l t e r a t i o n s , t h e r e has e v o l v e d a s e r i e s of new problems p e c u l i a r  '  (130)  i  i n t h e m s e l v e s to t h e g r a i n t r a d e , and demanding s o l u t i o n b e f o r e t h e f u l l advantages of t h e Canal can be u t i l i s e d .  The major wheat markets of the w o r l d a r e l o c a t e d i n Europe, v i z . , Germany, Belgium,  Prance, Great B r i t a i n and N o r t h e r n I r e l a n d ,  I r i s h Eree S t a t e , I t a l y , the Netherlands,, Sweden, S w i t z e r l a n d , and C z e c h o s l o v a k i a ; t h e s e c o u n t r i e s t o g e t h e r imported 8 1 % of the t o t a l w o r l d wheat i m p o r t s i n 1933-34, 74% i n 1934-35, and 74%* i n 1935-36. (See T a b l e 22, Page 131.)  I n other words, over 75% of the w o r l d *s market f o r  imported wheat was l o c a t e d i n Europe d u r i n g t h i s p e r i o d .  Similarly,  f l o u r i s imported b y European n a t i o n s i n l a r g e q u a n t i t i e s ; European imp o r t s o f f l o u r were 75% of t h e w o r l d t o t a l i n 1953-34, 70% i n 1934-35, and 69% i n 1935-56.  The Canadian c r o p . i s the n e a r e s t of a l l the g r e a t  wheat crops t o t h i s huge msrket, and Canadian s h i p p e r s have a tremendous advantage, i n time and d i s t a n c e a l o n e , over A u s t r a l i a ,  A r g e n t i n a , and  the o t h e r wheat-producing c o u n t r i e s . The s u p p l y of t h i s market w i t h wheat has b e e n shared i n t h e p a s t few y e a r s by f i v e l e a d i n g g r a i n e x p o r t i n g c o u n t r i e s - the U n i t e d S t a t e s , Canada, A r g e n t i n a , A u s t r a l i a ,  and Hungary, (See Tahle  23, Page  132.) I t w i l l b e noted from t h e t a h l e t h a t , i n t h e Case of f l o u r e x p o r t s , A r g e n t i n a and Hungary do not r a n k v e r y h i g h i n t h e t r a d e , t h e b u l k of i t b e i n g shared; 'between t h e U n i t e d S t a t e s , Canada, and- A u s t r a l i a , w i t h Y u g o s l a v i a a poor f o u r t h . The f o l l o w i n g t a h l e .gives the percentage of wheat and f 1 our  (131) TABLE 22  THE  IMPORTS OP P R I N C I P A L WHEAT IMPORTING COUNTRIES.  WHEAT ( T h o u s a n d s o f B u s h e l s )  Germany Belgium France Great B r i t a i n & Northern Ireland I r i s h Free S t a t e Italy Netherlands Sweden Switzerland Czechoslovakia Jap an Other C o u n t r i e s Total  1933-34  1954-55  1955-36  28,579 44,841 27 , 208  11,806 42, 416 25,463  3,564 40,531 26,760  200,103 17, 133 16,795 22, 748 1,815 17,596 147 15,351 73,860  188,628 15,700 20,587 18,669 1,503 17,916 1,415 18,129 99,697  190,664 14,598  467,176  461,929  427,742  18,945 1,685 16,670 2 ^ 15 V 12,805 99,565  FLOUR ( T h o t i s a n d s o f B a r r e l s )  Germany Austria Denmark Finland Great B r i t a i n & Northern Ireland I r i s h Free S t a t e Norway Netherlands Czechoslovakia Egypt Other C o u n t r i e s Total  Sources  1955-54  1954-35  1935-36  28 506 296 585  37 595 242 453  16 382 111 351  5,967 55 7 475 449 11 47 3 j, 270. 12191  C a n a d a Y e a r B o o k , 1 9 3 6 , p,276 Canada Y e a r Book, 1937, p.281  4, 644 2 S9 509 463 10 55 3 a 53 7 10,374  4,861 81 456 615 12 35 2,712 9 y 632  (132) TABLE 23 THE EXPORTS OF WHEAT AND FLOUR FROM THE PRINCIPAL WHEAT EXPORTING COUNTRIES, WHEAT (Thousands of B u s h e l s )  United States Canada Argentina Australia Hungary Bulgar i a Yugoslavia Other C o u n t r i e s  1933-34  1934-35  1955-36  19,624 170,234 141,281 60,148 25 «i 8 27 3,333 S 22 86,860  2,436 144,375 176,429 74,871 10,873 •• 367 4,167 80,895  272 232,020 65,513 73,225 13,606 1,139 614 87,887  .494,415  474,276  Total  FLOUR (Thousands of B a r r e l s )  United States Canada Argentina Australia Hungary Bulgar i a Yugoslavia, . Other C o u n t r i e s Total  Source;  19 53-34  1954-55  19 35-56  5,868 5,455 ,1,249 5,572 153 748 2,841 9,872  3,896 4,750 1,088 7 rj 157 415 3,675 7,748  3,435 4,979 896 6,198 206 637 1,881 5,638  29,062  23,870  29  p  Canada Y e a r Book, 1936, p.276. Canada Year Book, 1937, p.281.  7 c)9  (133)  which these world  countries exported  exports:-  W H E A T 1 9 3 5 - 3 4 1934-35 United States Canada Argentina. Australia Hungary Yugoslavia  4% 33 28 12 5  in  the United  flour  F L O U R 1 9 3 5 - 3 4 1954-55  1935-36  29% 36 15 2  49% 14 • 15 3  _  -  Canada, A u s t r a l i a , while  respectively, i n relation to total  _  15% 17 3 20  14% 17 3 24  10  14  and A r g e n t i n a were the major wheat-exporting  S t a t e s , Canada, A u s t r a l i a ,  and Y u g o s l a v i a  1955-36 15%' 21 4 25 8  countries,  l e d t h e way  exports,  A glance Canada h o l d s  over  European market,  at a g l o b e w i l l her competitors Montreal  show  the o u t s t a n d i n g advantage t h a t  i n point  of v i e w of d i s t a n c e f r o m t h e  i s o n l y 5200 m i l e s f r o m L i v e r p o o l , w h i l e  B u e n o s A i r e s I s 7200 m i l e s away, a n d M e l b o u r n e , b y t h e s h o r t e s t r o u t e , i s w e l l over  10,000 m i l e s  distant.  W h i l e C a n a d a i s so s i t u a t e d g e o g r a p h i c a l l y a s t o h a v e a d i s t i n c t advantage over  h e r two g r e a t e s t r i v a l s  in. the world's  wheat  m a r k e t , i t c a n r e a d i l y be s e e n t h a t a n y c h a n g e f o r t h e b e t t e r i n h e r i n t e r n a l o r e x t e r n a l t r a n s p o r t a t i o n s y s t e m w o u l d add m a t e r i a l l y t o t h i s advantage.  The Panama C a n a l  performed just t h i s  w i l l become more and more e v i d e n t  A closer examination  f u n c t i o n , a f a c t which  as t i m e g o e s o n .  o f C a n a d i a n wheat p r o d u c t i o n r e v e a l s t h e  "  (134)  f a c t that, at  p r i o r t o 1920,  A l b e r t a , of the t h r e e Western p r o v i n c e s ,  the g r e a t e s t disadvantage  European market,  To u s e  Alberta during this i n p o i n t of time  and  of t h i s d i s a b i l i t y tion  time  i n r e s p e c t to time  the " m a r g i n a l " wheat-producing a r e a of  i s evident  i n the  u l t i m a t e market.  1922,  I n the  first  for the years  place, the  The  1915-1935,  percentage  to  Two 1920,  call  Canada  effect  f i g u r e s f o r p r o v i n c i a l , wheat  a r e n o t i c e a b l e i n A l b e r t a p r o d u c t i o n f r o m 1915 to  d i s t a n c e from the  a v e r y f a m i l i a r e c o n o m i c t e r m , -one m i g h t  d i s t a n c e from the  ( T a b l e 24, P a g e 135}  and  ws,s  produc-  characteristics i n fact right  t h a t the A l b e r t a crops  b e a r to t o t a l W e s t e r n p r o d u c t i o n i s c o n s i s t e n t l y low.  Second,  this  percentage  It will  be  f l u c t u a t e s a. g r e a t d e a l f r o m y e a r t o y e a r .  r e c a l l e d t h a t s i m i l a r c h a r a c t e r i s t i c s were e v i d e n t in-the  general  t r e n d o f A l b e r t a , a s d i s c u s s e d i n a n e a r l i e r chapter,, and  that  was  t h a t t h e p r o v i n c e was  the disadvantage  With the m a r g i n a l  still  the  After  o f i t s c l o s e r end Manitoba,  t h e element of time  P r o d u c t i o n f i g u r e s for the  1922,  40)  c h e a p e r means  i n t u r n , became t h e and  he  of  province  d i s t a n c e from the u l t i m a t e  three Western provinces  s t a t e o f a f f a i r s t o a d v a n t a g e , and  ( F i g u r e s 39 and  cause  development stage, l a b o r i n g under  opening o f t h e Panama C a n a l , A l b e r t a c e a s e d ' to  p r o v i n c e by v i r t u e  m o s t handicapped b y  this  the  trade  of Inadequate t r a n s y o r t a t i o n ,  c o m m u n i c a t i o n w i t h E u r o p e , and  market,  i n the  up  Illustrate  t h e diagrams on P a g e s 156-157  show e v e n more f o r c e f u l l y t h e change t h a t t o o k p l a c e .  A l b e r t a p r o d u c t i o n composed a l a r g e r p r o p o r t i o n o f the  than ever b e f o r e , w h i l e t h a t of Manitoba f e l l  off.  total  (155)  f—1 rH cn LO © © « * © cm rH in o rH tO to to CO era cm CM rH rH cm CM  rH o EH  co cm it * LO CM c- LO to  C- o  c- to to  e  «  LO 03 o  ©  ©  cn £> l q LO rH to cn to c~ o CO cm to 10 r-4 CM cm r-i CM to rH rH to cm CM to to to to to CO to  LO rH o »  o  ©  »  ©  CO to  cn OS to en to to to  O CO to 01 o ©  to in CO to to to LO to to in CM CO CO in to  o  O  LQ rH to to to 01g o r-i CO to to CO LO O CM tc to LO CM CO to LO CM to to CM cm CM  to o LO 01 to to to o © © © © © « r-l rH CM cm O cm cm CM to 01 rH e> to to o r-l o rH rH r-l r-i r-i rH r-i r-i r-l  0  ©  »  M H t f i ( 0 ' | O N ! > - 0 < 0 ^ a ) < £ i O > N C « d O O ) » « <OiOlOl010^«)(0«31Q<fllOIOl010lO'#IO<#<#lQ O to to o> LO o rH o e o e t>- !>O to CO r-l CM r-l CO CM rH r-l r-l r-i  co . *  o ei  *  cm  LO CM to to LO to O 0.1 o » • ^ « 0 CM r-l o tO CM CD ^' LOs m CM to cn to r-l CM r-l to CM to r-l r-l r-l CM r-l rH rH  CftO!Omio«>'y toa)coo>Mtoa)oBo5HN<ji© r l i H M M M H H H r-l ^ r-l r-l r-|iHr-! |  CM o LO r-l r-i CO LO to rH CO ••sH to to © e a ©» © * © e © « © © © rH CO r-l cn o LO rH to o °i CO LO 0i to CM •tf to to to to to to LO CM to  H  CM t0 LO to I* © O r-l CM LO m Z>- CO to r-l CM CM r-! cc CM  ©  a  O  a  o  rH LO  CM 83 «tf> to to  Q  if & CM ©  EH O  to r-l <Jio as rH tO LO in  CM' LO j> as to r-l CM r-l to a> LO « « 3 * a e © LQ cLO O to to to CO CO ID o CO a> rH to CM LQ. a> CM CM LO to to ^< in to cn LO to to CO O to I s in t LO  ^ o o > H i 0 i O r H i o o ^ < o « ) t o > o r-i ^ m o n ID C M t O C M CM C M t O C M r - r l t O C M C M C M t O O J c O t O L O C O t O ^ t Q to to CO !>- r-l £- CT. 01 CM to OS a *> « « a « CM CM t t ' o CM CM rH co o o rH rH r-l ISCO to in o> to to to r-l r-i r-l rH CM rH rH CM rH rH  m  P 8  s  to CO to LO O rH a m CM CO oft !>- en CO CTCO o» t» m. to LO CO O rH CM CM rH CM CM CM rH CM O  CM CM O CM  t O ^ W t D C O l O O O I O i O I O W M N H O O M O O H L O L O ^ ^ - ^ ^ t O t O l D ^ L O l O L O L n L O L O ^ ^ ^ I ^ L O  O  03  o ml  03  rH to CM rH CM IN- O in m rH CO CM O o» to CM cn to CO CM CM © © © © © e o e» IS © © © © « © © 6 « 04 rH tO CO to in CM o CO t~ o 0i CO to CM CM LO rH J>- CM LO rH i—1 to IS- in rH LO in LO to !>- to CM 01 Ol • co to CM CM CM CM to in CM to to LO CM to CM to CM r-l CM  CO •  W t~ £O to CM rH !> 01 01 LO m o cn CM CM 10 01 03 tO rH r-l r-l rH 01 rH CM to CM r-l rH CM rH to rH CM rH rH rH rH  EH t-H  m r-l rH cS m -p o w &  CO in CO o CM LO LO CM o is. in t - to f—I © © © © *> © © # 9 e o © © 0 rH in o m o 0s CC) 01 rH 01 CM CO CM CM 0> 01 to CO OS O to rH rH rH CM LO CM LO 01 to 01 to o CO rH rH rH rH rH rH rH rH rH rH rH rH rH rH o  05 to 0» o  ©  »  tO JS- CO in rH r-I r—1 rH cn o> OS rH r-l rH H  ©  0* rH 01 r-l  o CM cn rH  rH CM 01 rH  CM Ol OJ rH  LQ to to CM CM CM CM 0> 05 0J 05. i-H rH rH rH  !>Ol 0J rH  CO CM 0> r-l  Oi CM OJ rH  o to 0^ r—!  rH to 0i rH  CM to 0a rH  to LO to to to 01 cn OS rH rH r-l  o u o CD rSA CO MU cs5 13 o •H rH O rH 5-.  (156)  (137)  (138)  The  present  p o s i t i o n of Manitoba  as t h e marginal  producinsj  a r e a o f C a n a d a h a s b e e n a l l e v i a t e d t o a, c e r t a i n e x t e n t b y t h e new o u t l e t t o Europe v i a t h e Hudson Bay,  The v a l u e  of t h i s  route i s ,  however, l i m i t e d by t h e f a c t t h a t t h e Hudson Bay i s c l o s e d t o n a v i g a t i o n by  i c e for t h e greater part of the year,  demonstrated  so f a x , and M a n i t o b a  still  I t s v a l u e has not b e e n holds the position  o c c u p i e d b y A l b e r t a and B r i t i s h C o l u m b i a , cheaper f r e i g h t  formerly  and a g i t a t e s s t r o n g l y f o r  rates to offset the disadvantages  of i t s geographic  position.  T h e r e l i s one a r e a i n C a n a d a w h i c h , u p t o t h e p r e s e n t m i g h t he c l a s s e d a s a s u b - m a r g i n a l w h e a t - p r o d u c i n g River D i s t r i c t , British  a very  Columbia.  a very high quality  through  i t s development, and, w h i l e wheat o f  I s g r o w n t h e r e , 20 m i l l i o n a c r e s o f l a n d  logical  British this  Only  By  outlet  f o r g r a i n from the'Peace  Columbia t o t h e P a c i f i c ,  o u t l e t be completed  will  comparison  short r a i l  still  adequate a n d economic t r a n s p o r t a t i o n  R i v e r Is w e s t  and t h e n c e v i a Panama t o -Europe.  (and i t can b e by e x t e n d i n g t h e P a c i f i c  Great E a s t e r n R a i l w a y n o r t h from t h e present District  i n n o r t h e r n A l b e r t a and  a r e needed t o put i t on a p r o d u c t i o n b a s i s .  The  Should  as t o l i m i t  In a v i r g i n state.  facilities  region situated  area - t h e Peace  So f a r , t h e c o s t s o f s h i p p i n g ' w h e a t f r o m t h e P e a c e  R i v e r have b e e n such  remain  fertile  time,  r a i l h e a d ) , the Peace R i v e r  become one o f t h e p r e f e r r e d v/heat-producing a r e a s  o f Canada.  w i t h t h e p r o v i n c e s f u r t h e r e a s t , i t would have a r e l a t i v e l y  h a u l , h a r b o r s w i t h t w e l v e m o n t h s ' n a v i g a t i o n , and a cheap  route  Use) "by s e a t o t h e m a r k e t .  The  Panama Canal, h a s made p r o d u c t i o n o f w h e a t i n  t h e Pea.ce R i v e r a p r a c t i c a l  possibility  T h i s b r i n g s t i s now t h e W e s t e r n C a n a d i a n wheat i n one Bay,  crop.  This  crop  We  had  on the  The  o f M a n i t o b a p o r t s on t h e H u d s o n American p o r t s , or west  problem i s to  the  Boes g r a i n p r o d u c t i o n i n t h e  f l o w o f t h a t commodity t h r o u g h  effect,  i f any,  do  crop  effect  these various  a definite relationship  t h e d e v e l o p m e n t o f A l b e r t a g r a i n p r o d u c t i o n and Canal,  analyze the  f l o w of g r a i n through  h a v e s e e n t h a t t h e r e was  marketing  f l o w s to t h e E u r o p e a n market  Canadian p o r t s , east through  through P a c i f i c Coast p o r t s . Panama C a n a l h a s  near f u t u r e .  t o a d i s c u s s i o n of the problems of  o f f o u r ways - n o r t h - e a s t b y way  east through  f o r the  the  opening  p r a i r i e provinces  Pacific  channels.  between  o f t h e Panama  i n a n y way  p o r t s to the  the  Canal?  affect  What  c o n d i t i o n s i n A l b e r t a , S a s k a t c h e w a n , or M a n i t o b a  he.ve o n P a c i f i c C o a s t e x p o r t s o f w h e a t ?  Tables  25 and  26  ( P a g e s 140-141) and  ( P a g e s 142-144) g i v e t h e f a c t s tunately, g r a i n exports Pacific  seaboard  r o u t e d t h r o u g h Panama, f r o m t h e w h o l e  a r e not a v a i l a b l e ,  crops  43,  and  must he  sufficient  have b e e n p r e v i o u s l y s u b m i t t e d  Unfor-  Canadian  f o r our  o r d e r t o compare t h e v a r i o u s c r o p t o t a l s , I t w i l l be  and  the  25, P a g e 140;  (Table 24, Page  volume o f e x p o r t s  n o t i c e d that Vancouver exports  an  purpose,  I n t h e d i a g r a m s o n P a g e s 1 4 2 - 1 4 4 , t h e graphs? h a v e "been s y n c h r o n i z e d ,  the P o r t of V a n c o u v e r ,  44  but P o r t of Vancouver f i g u r e s g i v e  f i g u r e s f o r Vancouver g r a i n . e x p o r t s appear i n Tahle  for p r o v i n c i a l  32,  f r o m w h i c h t o d r a w our c o n c l u s i o n s .  a c c u r a t e i n d i c a t i o n o f t h e t r e n d , and The  f i g u r e s 41,  those 135). in from  appear  (140) ID to  to  . . .  in  t - to to t o <M  CM r-l «Jt  •^i to to to r—1 CO CM r-i rH  W M3  tO O tO to  CM  to 0>  H  »  co en  w •O  to cn  o M  &.  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CO  o •H"  ^  -P  CO •H -P » -P  to  co  . e E- rH tO rH  rH  to  m  »  O  CD  CO to era  rH  13  pq r.  o  C D  rH^  tra  «  rH e  e  CQ CD •H  &p P-i  o C • H •H  M  01 o P-I CO •H (=3  03 tH  g  C3  Vi 0) -P  O  -P  to c8 VA rH  CD Pi  »  •H  0) C ?1 S si o Pi -H •H ad x5 crj „ Ui Pi CQ m o b  M ai o rH  o  & &i  f-1 CD o  o  03 •H  Pi o •H  rrf CO ^4 (D 4 3 O CP El O 03 gj - P r d CD CU 54- "CJ -P H S S H  -P  CD  3  a  1  a) ft  04  cci CD  H  a  •H CD rH  a  P)  CD  o o  o  O  IO  (141)  TABLE 26  DISPOSITION OF CANADIAN GRAIN BY CROP'YEARS* - 1920-1955 (LQUTiTons o f "BusheIs)  TOTAL EXPORTS  EXPORTS TO THE U.K.  1920  X«5& <» 2  87.0  49.2  1921  158,5  XX 2 * 3  15,9,  30.5  1922  229*7  174,0  X (^Qf 9  42,8  1923  289 © X  200,0  21.5  67,1  1924  146,9  115.7.  1925  275.6  198,4  10,5  66,7  1926  251.3  X8 5»%)  7.6  58 . 3  1927  288,6  201,7  8,4  78,5  1928  354,4  209.6  10«0  154.8  19 29  155.7  105.0  7,0  43.4  1930  228.5  70,2 ,  8,1  93.4  1931  182.8  62 © X  4.5  81,2  1932  240.1  103,3  ,3  83.6  1933  170,2  114.8  &2  1934  144.3  100.7  15,0  1935  2S2 * 0  162.9  CROP YEAR  EXPORTS TO THE U.S.  e3 a X  * Crop Years August 1st t o J u l y 51st, Sources  Dominion Bureau o f S t a t i s t i c s , G r a i n Reports-.  EXPORTS TO OTHER COUNTRIES  28,0  . 55 © X 28,6 69.0  (142)  (143)  in  m i l l i o n s of b u s h e l s , are t a b u l a t e d from the  t h e d i a g r a m , and millions  are indicated  It  i s evident  e x p o r t s d i d not  reach  for  left  anything  like  e x p o r t t r a d e was  P r o m 1927  purposes,  on,  just  to  Vancouver export  way,  i n comparing crops  f i g u r e s t h a n do  o f Saskatchewan crops from year and  S a s k a t c h e w a n , and  might be  called  a t c h e w a n and A l b e r t a and  The  two  show a d e f i n i t e  and  abnormal  relationship,  A l b e r t a crops, although,  to year,  similarity in a  T o t a l l i n g t h e two  fluctuations crops, Alberta find  fell  what above  such w i d e d i f f e r e n c e s a s b e t w e e n S a s k y e t not as c l o s e s i m i l a r i t y as  F o r example, examine the  1930-1951. Vancouver e x p o r t s  general  i n s i m i l a r i t y , a s c o m p a r e d w i t h t h e two  V a n c o u v e r f i g u r e s , and Vancouver,  exports  f l u c t u a t e i n much  l a t t e r to coincide with the  There a r e not  and  between  p l o t t i n g t h e m w i t h V a n c o u v e r e x p o r t s , we  a mid-point  mentioned grauhs.  and  c o n d i t i o n s show c o n s i d e r a b l y l e s s  t h e r e i s a tendency f o r the  Up  f o r minor d i f f e r e n c e s , caused i n  trade a c t i v i t y , they  Saskatchewan crop  1927,  c o m i n g I n t o i t s own,  a heavy stock c a r r y o v e r from year to year  changes i n w o r l d  and  that Vancouver g r a i n  however, a marked s i m i l a r i t y  same manner and d e g r e e ; e x c e p t  l a r g e ps.rt b y  diagram,  normal p r o p o r t i o n s u n t i l  A l b e r t a c r o p s and. V a n c o u v e r e x p o r t s a p p e a r s . the  of the  from the d at a s u b m i t t e d  v a l u e , f o r our  that period,  of  line.  t h a t year, the P a c i f i c  there i s l i t t l e  side  Crop t o t a l s a r e g i v e n i n  o f b u s h e l s , a r e t a b u l a t e d on t h e  a r e i n d i c a t e d by a b l a c k  to  i n red.  right-hand  f i g u r e s f o r the  years  o f f s l i g h t l y , t h e A l b e r t a crop  i n c r e a s e d , Saskatchewan crop f i g u r e s dropped o f f v e r y  between  s h a r p l y , and  actually the  A l b e r ta-Saskatchewan t o t a l l e d c r o p s d i d not f a l l extent.  o f f to such a g r e a t  I n t h e y e a r s 1 9 3 3 - 1 9 3 4 , t h e s i t u a t i o n was much t h e same, a n d  w o u l d l e a d one t o t h e c o n c l u s i o n t h a t exception,  this  i s the r u l e ,  rather than the  T h i s p o s i t i o n s t r e n g t h e n s t h e v i e w , h e l d b y many, t h a t t h e  field  of influence exerted  point  on t h e t r a n s c o n t i n e n t a l r a i l w a y system w i t h i n t h e boundaries o f  Saskatchewan*  boundary of that  fluctuates  and i s , i n a l l p r o b a b i l i t y , w e l l w i t h i n t h e w e s t e r n province.  M a n i t o b a c r o p c o n d i t i o n s f r o m 1922 .to 1935 a r e c o m p a r e d  w i t h Vancouver exports, e x i s t i n g i n t h e other do  inland to a  Depending on e x t e r n a l c o n d i t i o n s , t h i s p o i n t  from time t o time,  If  b y t h e Panama C a n a l e x t e r d s  i tw i l l be seen immediately that  two p r o v i n c e s  i s not m a i n t a i n e d .  n o t a f f e c t t h e volume o f w h e a t e x p o r t e d  i n a n y r e s p e c t , a t l e a s t not t o t h e e x t e n t of the foregoing  data.  the relationship Manitoba crops  t h r o u g h t h e P o r t o f Vancouver that  i t i s n o t i c e a b l e i n any  I t i s r e a s o n a b l e t o b e l i e v e that M a n i t o b a w h e a t  has  a n a t u r a l t e n d e n c y t o f l o w e a s t down t h e S t , L a w r e n c e w a t e r s h e d ,  and  that  i t does not e n t e r  The  i n t o t h e P a c i f i c t r a n s p o r t a t i o n system at a l l .  c o n c l u s i o n may b e d r a w n t h a t a n y f u r t h e r c h a n g e i n t h e  trade v i athe P a c i f i c  coast w i l l  i n t h e Canadian d i s t r i b u t i v e  take  system  p l a c e as a r e s u l t of improvements  (internal  o r e x t e r n a l ) ,. w e s t o f an  I m a g i n a r y l i n e running n o r t h and s o u t h t h r o u g h the p r o v i n c e atchewan.  Up t o t h e p r e s e n t ,  t h i s change i n c o n d i t i o n s has been brought  a b o u t , p a r t i a l l y a t l e a s t , t h r o u g h . t h e o p e n i n g o f t h e Panama The  responsibility  lies  of Sask-  with Canadians t o take  Canal.  f u l l a d v a n t a g e of t h e  (14-7)  improvements near  a l r e a d y i n i t i a t e d , by making  farther adjustments i nt h e  future.  I n approaching the Canadian  f r e i g h t r a t e p r o b l e m , one  d i s c o v e r s t h a t M a n i t o b a was n o t t h e f i r s t discriminating freight rate  r a t e s on g r a i n .  p r o v i n c e to conralain of  The C a n a d i a n r a i l w a y  s y s t e m and  s t r u c t u r e have b e e n under t h e c o n t r o l o f a c a p a b l e b o a r d o f R a i l w a y  Commissioners,  h a v i n g t h e power t o s e t r a t e s and g o v e r n t r a f f i c .  board i s a n independent ment i  t r i b u n a l , which hears requests f o r rate  i t s e t s r a t e s on the basis  own a c c o r d i n i t i a t e British  o f such r e q u e s t s , b u t c a n n o t  r a t e a d j u s t m e n t s.  Colurnbia c a r r i e d on a v e r y a c t i v e propaganda  Not  This adjust-  ofi t s  P r i o r t o 1927, b o t h A l b e r t a and  export r a t e on g r a i n s h i p p e d t o the P a c i f i c  for  soon  Coast  program  to have the  reduced,  l o n g a f t e r t h e o p e n i n g o f t h e c a n a l . , a g i t a t i o n commenced  lower r a t e s on g r a i n s h i p p e d over t h e n a t i o n a l r a i l w a y s t o t h e  Pacific  Coast,  S u c h pub l i e and s e m i - p u b l i c b o d i e s a s t h e  of the p r o v i n c e s of B r i t i s h g r a i n growers'  governments  Columbia and A l b e r t a , t h e U n i t e d Farmers,  a s s o c i a t i o n s , Boards  of Trade,  e x p o r t e r s , a n d many o t h e r s  b e n t e v e r y e f f o r t t o present t h e s t r o n g e s t p o s s i b l e c a s e t o t h e Board of Railway  Commissioners.  Undoubtedly,  e v e n t u a l s u c c e s s o f t h e movement ability  o f one man, M r , G.G.  C a n a d a owe h i m a d e b t w h i c h of a substantial  a great deal  f o rthe  i n 192? was d u e t o t h e o u t s t a n d i n g  M c G e e r , M.P.,  K.C.; t h e p e o p l e o f W e s t e r n  c o u l d n o t b e w h o l l y l i q u i d a t e d b y t h e payment  f e e when h i s work w a s done.  e f f e c t i v e propaganda,  of the credit  As a r e s u l t  t h e Board of R a i l w a y Commissioners  of t h i s  very  o r d e r e d a'  , .. reduction should  1148) i n rates  i n 1927,  and  Since  g r a i n have been s t a b i l i z e d  i n the  i n Table  and  27  ( P a g e 149)  By way  Sailway,  and  F o r t W i l l i a m , and  the  set  The  f r o m 14,3  i t was  r a t e to  said that,  i n computing  d i a g r a m , a p o i n t was  the two  l a t t e r p o i n t s was  d e v e l o p m e n t was  seen from the  14.9  c e n t s i n 1921  table that,  c e n t s per b u s h e l by  to  21.7  came i n t o a c t i v e u s e  not  t o meet t h e  only true  one  has  but  (1921), the new  to p o i n t  to the  William,  where I t r e m a i n e d bushel.  factor.  e f f e c t of the f a c t t h a t the  In this  the  i s not  rotite  This  of a l l goods moving west f o r  for domestic consumption i s s t i l l canal  Rail-  f r e i g h t r a t e s o n wheat  competitive  of wheat, hut  to  dropped  Board o f  cents per  wheat moving west instance,  on  f r o m 1921  the  c e n t s i n 1922,  i l l u s t r a t e more f o r c e f u l l y t h e  western route,  the  calculated  r a t e e a s t , f r o m B a t t l e f o r d to F o r t  moving west were a d j u s t e d  given  selected  d i a g r a m shows q u i t e p l a i n l y that- i m m e d i a t e l y t h e  t h r o u g h the c a n a l  To  at  Is  150),  a l t e r e d t o e q u a l t h e r a t e w e s t , 14,9  The  exports.  be  1920  changes  B a t t l e f o r d , Sa.sk., midway Tjetween V a n c o u v e r  I t can b e  i t was  Commissioners.  until  i t may  east  on  i l l u s t r a t i o n of the  r a t e on g r a i n s h i p p e d f r o m B a t t l e f o r d t o V a n c o u v e r  steadily until  increased  An  (Page  a b o v e t a b l e and  Canadian National  the  Canadian f r e i g h t r a t e s  point.  F i g u r e 45,  the  bushel,  date,  railways  on g r a i n m o v i n g e i t h e r  freight rate structure since  of e x p l a n a t i o n ,  r a t e s submitted i n the  i n c e n t s per  that  at that  which have t a k e n p l a c e  way  t h e r e a f t e r the  charge equal r a t e s f o r equal distances  o r w e s t t h r o u g h Canada,  1927,  directed that  a competitive  canal  on  the  freight rate  on  over 45^  per  bushel.  f a c t o r , and  the  railways  (149) cn©  ID CO  Oi  rH cn©  to  to 01  CM  CM CM  V  o  cn  CO  <<  ©  ; •  ©  rH  CM  CM  i'  '~ ©  C  ,  !  o rH cn o rH  W  to  1  cn rH  .  ©  rH  rH  ©  U  cn rH rH ©  to  a ID CO  in  9  Q ca to  to to 01  CO  o  CO  ©  CM  to 9 01 rH  o  CM  ©  ©  to  tO ©  cd  o  -P  O  f-l a>  a  ^>  •H Hi  CD  H  w  •H rH rH  -p  O  o ro - P  CD  ra'J as -p(A - P W in I° -P  •H  CD  oil  ^1  of  rj  c3 f-<  cd  •H  fO H  f-l CD  <H  CD  CD  -P  rH CD" -P  M  s>  g  o ti co' PQ cci a> CD  r"  -p  <D  ra rQ rH  0)  CM  rH o  O  ©  rCl to -P  CD  CD  ©  03  sn  o o  ca  cS  O • H -P  CD  • H J-'  •COH rQ  > .3 -P  o  CO  -P  32 CM  o  CO CD  CD  -P  6  m  H  r°  rH  D -P  Tj 0  -P  pi  •r-i H ra3O'  -P O  &  ra a -P C(5  K)  0 as  O  ©  «H  rO rH  CD  CO  CD CD  f-l  - P  CD  rS  o  tCP  CD j>  O -H  bo  CD  si  -P  od  U  a o so | orH ! 3«H O f-l s •r-l <p ra >4  W aS  o •H •a T! a o (H  CD CD  CD  rj id  CO •zs CD  to  rH  Co  I  o  ©  -P OS  CO  O  S4 CD  3  a  to rH to  ©  rH  IH  !  aS  in to cn  o p,  o Pi  <L>  Pi rH  O  Q  cn rH in  o  oi  •H  to rH  ©  o  CD  U  ro  P-  to  to to m  CD t> ?S O  O I  •P  CM  o CM ©  © '  rQ ra 0> cs» I  CO  ©  tD  ©  rH  SO -P  oi  CM  f-l  -P  0)  ©  10  ©  tO  •H  ©9  to  CM  ©  cn to cn © cn to  rH  CM  si m &  ©  ©  ©  ©  ©  CM  in  to rH  •  o cn  t-  ©  *^  ©  to to cnfl to rH  o  to  r-i  CO  0  CM  o  "1  CO  csS -P  o to CM  05  01 ©  CO  in  S3 ©  a>  rH to Cn© rH o © a .CMrH t O rH to  a  ©  ©  CM  to rH  ©  •  CM  CO  0>  rH cn  si"  CO  Ol rH  ©  cn©  to rH  a  rH  LO  rH  o rH to  ^  i  ©  ©  CM  O  ©  !  cn  to o co  ©  o cn  »-  rH  CO  ©  ©  ©  CM  cn  r-l  ©  rH CM  rH  ©  to  ©  LO CM  © -  cn©  CO  o cn  sH  rH cn  ©  * LO  ©  !>  ©  co  to  LO  cn  B  CM  ©  CM  •tf" cn  o» o r-l o o rH  rH  ©  CO  rH  to  ©  ©  0  ©  CM  p5  to  rH  cn rH 1 r-l  rH  cn  «  ai  ©  tO  cn  r-l  O  ©  rH  cn r-l  cn rH to CM cn rH  LO  ©  cC\>  O  LO  LO  rH  cn r-l  CD  ©  |  CM  rH © in  ©  1  CM  «  cn  CO CM  EH]  rH  rH cn©  cn C\2 cn rH  01  01  ©  to cn rH  -P  to  cn  O  CvJl  rH  rH  r-i to cn rH  in CD  LO  ©  ©  r-l  m  LO  »  CM  tO o> cn rH to CM cn rH  LO  o o rH  cn  <  LO CM  CO  ©  rH  to to Ol r-l  f pH  ©  ©  to  i—!  CD  O  ©  M CD  t—i Pi  O  •d  ctf  f-i EH •H KS  f-i ci I  (150)  to  1  I  i  \  1  •  o PI  £ CO  0  as  a  EH f3  a  cd  I  S3 o OP) co PH o  !  a PH  1  EH  CO  PI o E-i  taj  EE  \  CD CD O PH  O O CJ» CO  o  o  o  o  |  1 •  !  /  1 O O  CD  PI  1 1  1  SH U  •P CO « S aJ - H -rH PH > >  1  \  PH  >  \  /  <! EH  ^  O  a  1 y  Q PH fx,  CQ PH  c  1  !  o «{ o P-H P! • = 4 P O P 3 ci  fH  m o  —-  EH  so m  -t -p  o >  O  O -P  ?H  a  a  3  «M  <  CD >>  c4 CD  1 Tj  :  P w3  P3  txi I  t>  i-t  *\  <  io  t>  C4  CD  •>  fx.  & i—t  ?H  /  I. 4=  id  aj O  to  o CVJ  CD  o  C o  o Pi  (151)  keep t h e r a t e up t o t h e p o i n t o f "what t h e t r a f f i c w i l l  Another  f a c t o r of g r e a t  Canadian g r a i n i s the effect  hear".  importance i n the marketing of  o f o c e a n f r e i g h t r a t e s on g r a i n s h i p m e n t s .  27, on Page 1 4 9 , shows t h e a v e r a g e c o s t o f s h i p p i n g a b u s h e l  Tahle  w h e a t f r o m V a n c o u v e r t o L i v e r p o o l , y e a r b y y e a r f r o m 1921-1935. 26,  on Page 152, g i v e s t h e s e f i g u r e s , i n a d d i t i o n to c o m p a r a b l e  on t h e A t l a n t i c ,  a s an i n d e x , w i t h  P a g e 1 5 3 , shows t h e two i n d e x e s graph*  1921 a s t h e he.se y e a r .  ( A t l a n t i c and P a c i f i c )  p e r i o d dropped a t q u i t e a r a p i d r a t e .  Table rates  Figure  46,  p l o t t e d on a  The o u t s t a n d i n g f e a t u r e o f F i g u r e 4 6 i s t h a t P a c i f i c  "tip t o 1927 showed a n u p w a r d t r e n d , w h i l e  of  Ocean r a t e s  A t l a n t i c r a t e s d u r i n g - t h e same  A f t e r 1927, P a c i f i c  d e c l i n e o f t h e two.  rates  showed  the  r e l a t i v e l y greater  due  t o t h e r e d u c t i o n i n r a t e s by t h e C a n a d i a n r a i l w a y s a f t e r 192".  see  h e r e t h e i n t e r - p l a y o f two g r e a t  the  C a n a d i a n r a i l w a y s y s t e m , and t h e Panama C a n a l .  no means t h e o n l y f o r c e s down, and t h e l a t t e r , w o r k e d one a g a i n s t by  S u c h a c h a n g e was i n p a r t  forces i n a competitive  market ~  W h i l e t h e s e w e r e "by  a t work, u n d o u b t e d l y t h e canal  i n turn, exerted  forced r a i l  pressure on ocean r a t e s .  rates  The two  t h e other,, t o t h e u l t i r o a t e "benefit o f t h e g r a i n  a reduction i n costs  We  trade  of t r a n s p o r t a t i o n .  However, l e t u s see what r e l a t i o n s h i p , I f a n y , e x i s t s b e t w e e n the  volume o f B r i t i s h  freight rates. with  Columbia wheat e x p o r t s  I s there  a drop I n t h e other?  i n bushels,  am  any t e n d e n c y on t h e p a r t  the l e v e l  of ocean  o f t h e one t o i n c r e a s e  F i g u r e 47, P a g e 154, shows t h e a c t u a l v o l u m e ,  of Canadian g r a i n exported  through the Port  o f V a n c o u v e r , and  (152) TABLE 28  ATLANTIC AND PACIFIC FREIGHT PATES ON M E A T  YEAR  ATLANTIC RATE (IN INDEX (1921 r= 100) CENTS PER BUSHEL.)  PACIFIC ' RATE~1 I E CENTS PER INDEX (1921 = 100) BUSHEL)  14.7  100  19.6  100  IS  7.6  52  20.6  105  1923  7.7  52  20,5  105  1924  8,9  60  19.1  97  7.4  50  19.4  99  1926  10.7  75  20,5  105  192?  7.1  49  SI*  1  108  49  17.5  89  IS 21  1928 1929  5.3  36  15.4  78  IS  30  4„9  33  12 © 3  63  IS  3 3,  6.0  41  13.4  68  5.7  39  13.4  68  5.1  35  10.0  51  58  10.0  51  41  10,0  51  1932 IS  3  1934 1935  6,0  (155)  the a c t u a l cost per bushel  from Vancouver t o L i v e r p o o l ,  the  former a r e i n d i c a t e d , i n m i l l i o n s  the  diagram, while  An evidence  of bushels,  the cost i n cents per bushel  examination  of t h i s  The a m o u n t s f o r  on t h e r i g h t  side of  a p p e a r s on t h e l e f t .  diagram gives very  little  conclusive  o f a c l o s e r e l a t i o n s h i p between t h e two; i n f a c t , t h e r e i s every  r e a s o n t o b e l i e v e t h a t - o c e a n - r a t e s a f f e c t t h e v o l u m e o f g r a i n much more than  the s t a t i s t i c a l data  exports but  demonstrate.  i s up, w h i l e t h a t of f r e i g h t  a n y more e x a c t  I t i s true t h e trend  r a t e s i s down, o v e r t h e w h o l e p e r i o d ,  coneIn. s i o n c a n n o t b e d e r i v e d .  I n ocean r a t e s , i f i t t a k e s p l a c e on t h e P a c i f i c , extent  on t h e A t l a n t i c ,  the P a c i f i c  Coast,  as t o c o n f u s e  Undoubtedly, a drop • a n d n o t t o t h e same  i s advantageous to e x p o r t e r s  I f the drop i s g e n e r a l  t h e r e s u l t s may o n l y b e g u e s s e d . the i s s u e .  e x p o r t e r t h r o w s more l i g h t  o f Vancouver  operating  through  o n b o t h t h e A t l a n t i c and P a c i f i c ,  So many f a c t o r s e n t e r i n t o t h e s i t u a t i o n  Perhaps the p r a c t i c a l o p i n i o n of a g r a i n on t h e s u b j e c t than pages o f s t a t i s t i c s .  f o l l o w i n g r e p o r t appears i n the Vancouver D a i l y P r o v i n c e  The  o f J u l y 26,  1937;" B.D. P u r e l y o f C a l g a r y , g e n e r a l m a n a g e r o f t h e A l h e r t a Wheat P o o l , s t a t e d t h i s morning t h a t t h e r e i s a remote p o s s i b i l i t y t h a t t h e p o o l may resume o p e r a t i o n o f Ho. 2 H a r b o r B o a r d e l e v a t o r , w h o s e l e a s e was s u r r e n d e r e d r e c e n t l y . , r ,  B u t t h e d e c i s i o n depends o n t h e f r e i g h t r a t e s i t u a t i o n ' , Mr. P u r d y s a i d . !¥e w o u l d l i k e t o s e e e v e r y b u s h e l o f A l b e r t a g r a i n come t h i s way', h e a d d e d . ' B u t t h e f r e i g h t c o n d i t i o n s t h r o u g h o u t t h e w o r l d m i l i t a t e a g a i n s t t h a t movement a t p r e s e n t , andI c a n n o t s e e how t h e y c a n h e i m p r o v e d u n l e s s r a t e s d r o p . ' "  1, V a n c o u v e r D a i l y P r o v i n c e , V a n c o u v e r , B.C., J u l y 26, 19157, p  (156)  The the P a c i f i c is  most i m p o r t a n t  Coast,  and  one  the tonnage problem.  aspect  which  o f the  ocean t r a n s p o r t system  i s not easy  to d e s i g n a t e w i t h  accuracy,  U n f o r t u n a t e l y , t h e r e i s no means "by w h i c h  can a r r i v e a t e v e n an e s t i m a t e of t h e f a c t o r s I n v o l v e d I n t h i s Canadian tonnage through e x p o r t s and say,  the Panama. C a n a l  imports, i n the r a t i o  f o r every nine tons  and p a s s i n g t h r o u g h On t h e still  the  of b a l a n c e .  r o u g h l y 2:1.  is considerably less,  by t h e v e r y n a t u r e  part  of the  of t h e  On t h e  Coast  As we  Imports,  the f a c t that  we  caused  one  o f Mr,  Mears'  1922-1930,  and  Although  o t h e r w i s e , I t serves to  illus-  /  and  C a n a d i a n s i t u a t i o n I s much more s e r i o u s  a l t h o u g h i t s g r a v i t y i s somewhat a l l e v i a t e d  c a n and  a c t u a l shortage  o i l cargoes,  c o n d i t i o n of A m e r i c a n t r a d e .  when t h e r e i s a s c a r c i t y The  latter  i n t h o u s a n d s of l o n g t o n s , from  p o r t s d u r i n g the y e a r s  have seen, the  than the American,  only i n shipping  at  t r a d e , must t r a v e l i n b a l l a s t a. l a r g e  t h i s d a t a i n c l u d e s a l l t r a d e , Panama end t r a t e the unbalanced  although  i n c l u d e t a n k e r s , s i n c e the  f o l l o w i n g page i s r e p r o d u c e d  s h o w i n g e x p o r t s and  to A m e r i c a n P a c i f i c  province.  .Sir. E. G. M e a r s e s t i m a t e s t h e A m e r i c a n r a t i o  and,  of  Columbia  c a n a l , o n l y one comes i n r e t u r n f o r t h i s  are s p e c i a l i z e d types of c a r r i e r s , u t i l i z e d  tables,  problem.  That i s to  of shipping o r i g i n a t i n g i n B r i t i s h  T h i s e s t i m a t e does not  time.  one  i s d i v i d e d , on t h e b a s i s  o f a p p r o x i m a t e l y 9 t o 1.  o t h e r hand, the A m e r i c a n r a t i o out  on  do  o p e r a t e under t h e A m e r i c a n l o a d r a t i o ,  o f s h i p p i n g , t h e p r o b l e m b e c o m e s most  of world  t o n n a g e during- the l a t t e r p a r t of  by t h e s c r a p p i n g o f many v e s s e l s and  the w i t h d r a w a l  by still,  acute. 1957,  of over  80  Japanese s h i p s from r e g u l a r s e r v i c e to war-time use, a c t e d as a v e r y  (157)  T A B L E 29  AMERICA! P A C I F I C COAST EXPORTS MID 1922-1930 (Thorisands o f Long: Tons)  -  E X P O R T S  YEAR  TOTAL  19 22  0  222  4, 276  1923  6,544  1924  I M P O R T S TOTAL  NQM-TA¥KER  946  1,431  1,585  46  3,796  2,748  2,322  2,308  14  9,500  5,386  4,114  2^559  2 g  552  7  1925  8,505  4,474  4,031  2,534  2,534  _  1926  9,909  5,556  4,573  2,609  2,593  16  1927  12,004  6,099  5,905  2 *j 815  2,745  1928  13,926  7,093  6,833  2,885  2 796  89  IS  2s  13,498  7,158  6,340  3,112  3,014  98  1930  13,345  6,477  6,868  3 5 1? 6  3,099  77  $  Source: Mears,  NON-TAMKER  IMPORTS  TMKER  TANKEI  .  a  E.G. Liar i t ime T r a d e o f Vie s t e r n U n i t e d S t a t e s , S t a n f o r d- J 1935, p . 2 2  70  (158)  s e r i o u s handicap to P a c i f i c  C o a s t p o r t s , and w i l l h e r e f l e c t e d i n t h e  1937-1938 f i g u r e s f o r B r i t i s h is  one  of the  most s e r i o u s  Columbia e x p o r t s .  to be  met  I n marketing the W e s t e r n Canadian  g r a i n c r o p t h r o u g h t h e Panama C a n a l , and might otherwise  be  a very  Another very  This problem of tonnage  spectacular  I t a c t s a s a d e t e r r e n t t o what  development.  serious d i s a b i l i t y  inherent  i n t h e Western  i s found i n the general  c o n d i t i o n of terminal f a c i l i t i e s  Coast.  of p r o p e r  and,  while  time, to  The  development  i t I s a s s e r t e d t h a t ample s t o r a g e  I t cannot be  time,  u n d o u b t e d l y had  to the  W i l l i a m and i s not  export  west,  M o n t r e a l , or  the  system i n the  other E a s t e r n points,  e a s i e s t matter to g e t  i f , f o r any  has b e e n v e r y  slow, present  n e c e s s i t y , from time  coast e l e v a t o r s  has  on p r a i r i e s h i p p e r s .  from Port  f o r a good many y e a r s ,  them t o c h a n g e t h e i r c o n n e c t i o n s  I f , t h e r e f o r e , t h e r e i s a b l o c k i n the  r e a s o n , the  During •  t h e i r business  They h a v e b e e n a c c u s t o m e d t o d e a l i n g t h r o u g h  becomes i n c r e a s i n g l y d i f f i c u l t  t h e new  and and flow  s t o r a g e f a c i l i t i e s become i n a d e q u a t e , to a t t r a c t - w e l l - e s t a b l i s h e d  f i r m s to  route,  Table  30,  on P a g e 159,  S t a t i s t i c s ' r e p o r t on t h e and  s t r e s s e d t h a t the  e f f o r t s h a v e b e e n made t o t r a n s f e r  by t h e W e s t e r n r o u t e .  of g r a i n , it  forcibly  Pacific  i s a v a i l a b l e at t h e  a serious p s y c h o l o g i c a l e f f e c t  the past'15 y e a r s ,  it  too  of i n a u g u r a t i n g a permit  the East  storage f a c i l i t i e s  on t h e  route  it will  storage  g i v e s the  l a t e s t Dominion B u r e a u  facilities  f o r g r a i n i n each  of  province,  s e r v e to I l l u s t r a t e the.unequal d i s t r i b u t i o n of e l e v a t o r  space i n the D o m i n i o n ,  The  t h r e e W e s t e r n p r o v i n c e s h a v e , i n a l l , some  (159)  TABLE 50  SUMMARY OF ELEVATOR STORAGE CAPACITY BY PROVINCES. - 1936  Nova New  Scotia  2, 200,000 b u .  Branswick  Quebec Ontario Manitoba  tt  22, 537,000  tt  144, 757,210  n  3 0 , 575,650  it  117, 845,200  S a s k a t chev/an  »»  76, 657,900  Alberta British  3, 0 7 6 , 8 0 0  Columbia  Canada Year  Book,  22, 240,720  )o  £5S  5»  tt  (160)  216  m i l l i o n "bushels*  e l e v a t o r c&pf c i t y , w h i l e t h e E a s t has  203  million,  H o w e v e r j, s i n c e S a s k a t c h e w a n i s t h e " b o r d e r - l i n e p r o v i n c e , i t seems b»rdlv rea.s6na.hle t o i n c l u d e i t s s t o r a g e as p a r t o f e i t h e r t h e E a s t e r n Western systems. A l b e r t a , and  E l i m i n a t i n g t h i s from the Western D i v i s i o n  British  British  Columbia, t h e p r o v i n c e  The with  i n a l l , o n l y 22 m i l l i o n b u s h e l s *  can he  than, i s a p p a r e n t  handled  through  is left  Lakes p o r t s during  facilities  -  i n the  the w i n t e r months.  bushels' for  s t o r a g e , has  The  city  and  In addition,  In this  passes through  p r o b a b l y most  over  a  American p o r t s . million  total  o f a l l , when t h e  home m a r k e t and  companies t h a n e x i s t s i n the W e s t .  with a population of s l i g h t l y  as  capacity  Columbia.  important  a larger  in  American port  d i r e c t i o n , and,  a g r e a t e r e l e v a t o r c a p a c i t y t h a n the  g r a i n crop f l o w s E a s t , i t has through the m i l l i n g  than e l e v a t o r s .  o f B u f f a l o a l o n e , w i t h 25  the whole of the p r o v i n c e of B r i t i s h  Finally,  facilities  since  h o l d s o f g r a i n s h i p s , t i e d up  are a v a i l a b l e to g r a i n shipped  2 5 , P a g e 140.)  supplied  from the d a t a submitted,  other  r e s u l t , a good p a r t o f t h e C a n a d i a n c r o p (See T a b l e  of both t r a n s c o n t i n e n t a l  E a s t e r n D i v i s i o n , h o w e v e r , i s e v e n more b o u n t i f u l l y  Mitch o f t h e y e a r * s c r o p Great  storage  million.  terminal f a c i l i t i e s  the g r a i n crop  million  f u r t h e s t west on t h e t r a n s -  c a p a c i t y , and. t h e P o r t o f V a n c o u v e r , t h e t e r m i n u s o n l y 17  over  c o m p a r i s o n w i t h t h e E a s t e r n D i v i s i o n ' s 200  c o n t i n e n t a l r a i l w a y system, has,  lines,  leaves  Columbia w i t h e l e v a t o r c a p a c i t y of s l i g h t l y  100 m i l l i o n b u s h e l s , b y "bushels.  or  750,000 p e o p l e ,  a wider British  cannot absorb  Canadian outlet Columbia, the  (161)  volume o f wheat w h i c h g o e s i n t o t h e C a n a d a and  the U n i t e d S t a t e s .  industrial  Under such  s e c t i o n s of  conditions, there i s  w o n d e r t h a t g r a i n d e a l e r s p r e f e r to c o n t i n u e t o o p e r a t e rather than stantial  i n t h e West, u n l e s s , perchance,  r e d u c t i o n i n c o s t s over  Eastern  they  i n the  ere a s s u r e d  a l o n g e r p e r i o d of time by  little East  of a subthe W e s t e r n  route.  Under such  c r a m p e d and  unstable  operating conditions, i t i s  c u s t o m a r y f o r d e a l e r s e x p o r t i n g g r a i n by t h e W e s t e r n r o u t e t o s h i p the b u l k of t h e i r prevailed  stock at  their  i n E a s t e r n Canada,  to England  or the  Continent.  a hand-to-mouth b a s i s , thus  route. and  are under the  To  few  constant  never pressure  space o f f e r s at the b e s t r a t e t h e y t o be d i s p o s e d  f u r t h e r complicate matters,  y e a r s , have been b u y i n g t h e i r  increasing the d i f f i c u l t i e s  o f en  can route  European grain  on  of arranging  space,  It a very  a s i t u a t i o n w h i c h has  of Vancouver unsold,  c o u n t r i e s , d u r i n g the l a s t  cargo  risk,  S i n c e they  o f h a v i n g to t a k e w h a t e v e r cargo g e t j t h e y s h i p w h e a t out  own  i s c o n d i t i o n s such  real barrier In fact,  t o the  as those  normal use  I t might almost  be  enumerated above w h i c h a c t  end  development  s a i d that these  e f f e c t i v e than the a c t u a l factor of cost.  very important  and  L a k e s and  o f the volume  are  Western  f a r more - r e a l  C e r t a i n l y , they  formida.ble p a r t o f the problem to be  There i s a popular misconception the Great  o f the  as  form a  solved.  abroad t h a t the f r e e z e - u p  of  the S t , Lawrence R i v e r i s r e s p o n s i b l e f o r a l a r g e p a r t  o f g r a i n s h i p m e n t s by t h e  West C o a s t r o u t e ,  particularly  (162)  for  a l a r g e r volume  months.  o f e x p o r t s t h r o u g h t h e Panama, d u r i n g t h e  winter  T h i s i s a p o i n t of v i e w which i s not s u b s t a n t i a t e d by  available  facts.  Table  31, P a g e 163,  taken  the  from the Vancouver Harbor  B o a r d r e p o r t s , shows V a n c o u v e r w h e a t e x p o r t s b y m o n t h s f r o m 1 9 2 9 - 1 9 3 5 . U n f o r t u n a t e l y , we  a r e a g a i n c o n f r o n t e d by t h e v a g a r i e s o f bygone  H a r b o r C o m m i s s i o n s , and  Exports  have not  f o r the year  t h e h i g h e s t volume, and inclusive',,,  we  d u r i n g o n e - t h i r d o f the y e a r , in  the  12 m o n t h s p a s s e d  crop year  f o r t h e months November t o  total  f o r the y e a r .  l e s s than  through  one-quarter  Vancouver.  October,  5,800,000 b u s h e l s . in  the  and,  f o u r w i n t e r •months.  of the  r e c o r d , next  five  cited,  January,  The- f o u r months w i t h  However, t h i s  i t was.  y e a r may  t h e n D e c e m b e r and  May.  1932-1933, the  f o r t h e w i n t e r m o n t h s was  in  any  of. t h e y e a r s g i v e n - 4 8 % ;  1 9 3 4 - 1 9 5 5 , i t was  As in  a matter  The  o f the t o t a l  the reason  a closer  the  exports  the h i g h e s t  f o r any  highest from  year's exports.  I n 1933-1934, i t f e l l  t h e w i n t e r m o n t h s seems t o h a v e l i t t l e  the East; r a t h e r , i t bears  July, with .  had  total  q u i t e back to normal a g a i n at  of fact,  with  have b e e n e x c e p t i o n a l ,  I n 1931-1932, A p r i l  c o n s t i t u t e d 40%  for  and  largest  h a r d l y seem a c o n c e n t r a t i o n o f e x p o r t s  November t o F e b r u a r y total  say,  of the g r a i n exported  w i t h 6,540,000 b u s h e l s ;  This would  February,  The.t i s t o  v o l u m e s o f e x p o r t s w e r e . J u n e , w i t h 8,386,000 b u s h e l s ; May, 7,403,000 b u s h e l s ;  1930-31.  1 9 2 9 - 1 9 3 0 show J u n e a s t h e month w i t h  the t o t a l  i s o n l y 24% o f the  the f i g u r e s f o r the  In  percentage  o f f t o 44%;  and  35%.  c o n c e n t r a t i o n of  relation  l i k e n e s s t o the  t o the  freeze-up  exports in  crop carryover i n  (163)  TABLE 31  YANOOU¥EH GRAIN SHIPMENTS. BY I,'DNTHS ( T h o u s a n d s of B u s h e l s )  MONTH  1929-1930  1930-1931  1931-1932  1932-1933  1933-1934  1934-1935  3 j *SS 2  2,094  2 <j 5 71  65  5 5 3 61  2,673  3, 500  3,723  11,407  4,504  5, 650'  6,437  13,18?  4,489  4,825  3,784  10,036  13,41?  5,263  4,079  January  3,707  11,446  10,975  6,515  5,13?  February  5,158  6,518  10,089  5,546  4,381  liar c h  2,928  7,771  9,863  4,67?  4,722  12,087  5,748  3,540  5, 278  7,983  5,68?  2,365  6,224  August  5 p 223  —  September  5,577  -  October  6,540  Novemb e r  5  December  .j  '  „  16 o  -  2,708  5,214  _  May  7,403  „  June  8,586  •-  6,977  4,-671  4,154  2,392  July  5,800  _  5,160  2,771  4,434  5, 313  Sources  -  Vancouver Harbor Board- R e p o r t s , 1 9 2 9 - 1 9 3 5 .  (164)  the Western D i v i s i o n ,  f r o m one y e a r t o t h e n e x t .  Table  25, Page 140,  g i v e s t h e movement o f t h e W e s t e r n D i v i s i o n c r o p e a c h y e a r , and i n c l u d e s the  carryover  f o r the years  i n question.  I t w i l l be seen from the t a b l e  t h a t t h e c a r r y o v e r f o r 1929-1930 was 85 m i l l i o n b u s h e l s , n o t an a b n o r m a l s t o c k o n h a n d a t t h e end o f t h e y e a r . 109  million,  I n 1931-19 32,  and t h e p e r c e n t a g e o f e x p o r t s t h r o u g h  f o u r w i n t e r months i n c r e a s e d . i n details--  Vancouver d u r i n g the  The f o l l o w i n g t a b l e g i v e s t h e s e  %AGE NOV,-FEB. BEARS OP MlfU A L TOTAL,  IMilL  i t had i n c r e a s e d t o  1929- 1930 1 9 3 0 - 1931 1 9 3 1 - 1932 1932- 1933 19 3 3 - 1 9 3 4 1934-1935  figures  CARRYOVER ( M i 13,Io IT¥ IST" Bus he I s_)  24% 40% 48% ' 44% 35%  -  85,0 U4.4 109,0 172.9 153.6 157,3  I t w o u l d a p p e a r f r o m t h e f o r e g o i n g f a c t s t h a t t h e d a t a a v a i l a b l e do not  adequately  s u b s t a n t i a t e t h e s t a t e m e n t t h a t t h e w i n t e r months i n t h e  B a s t a f f e c t t h e volume o f g r a i n e x p o r t e d  i n the West,  There e x i s t s between t h e g r a i n trade t h e g e n e r a l t r a d e o f t h i s area, a n o b v i o u s  o f W e s t e r n C a n a d a and  r e l a t i o n s h i p , and w h i l e  c h a p t e r , has b e e n l a r g e l y d e v o t e d t o t h e g r a i n t r a d e , i n mind t h a t  i t must b e b o r n e  t h e Panama C a n a l a f f e c t s t h e w h o l e o f W e s t e r n C a n a d i a n  t r a d e i n much t h e same manner. that  this  i t becomes a l m o s t  So i n t e r - r e l a t e d a r e t h e t h r e e , a t t i m e s  impossible t o t e l l which i s the important  factor  w h e a t , g e n e r a l t r a d e , or t h e Panama C a n a l .  For example, the e x p o r t ports has increased the export  of g r a i n t o E u r o p e t h r o u g h  Pacific  o f o t h e r goods produced i n the West.  Coa In  many i n s t a n c e s , g r a i n c o m b i n e s w e l l as a c a r g o w i t h , other p r o d u c t s , fact which i s p a r t i c u l a r l y true stored below decks, while  o f lumber,  A cargo o f g r a i n can be  a d e c k l o a d o f lumber c a n be c a r r i e d i n '  a d d i t i o n , t h u s a d d i n g to t h e e f f i c i e n c y  of the s h i p ,  of t r a n s p o r t a t i o n , a n d , m o s t I m p o r t a n t o f a l l , with  a  another Western Canadian product.  By  c u t t i n g the cost  f a m i l i a r i s i n g new m a r k e t s  o p e n i n g up new t r a d e  f o r w h e a t , t h e Panama C a n a l h a s a l s o a w a k e n e d a n i n t e r e s t  routes  i n a multitude  o f o t h e r C a n a d i a n p r o d u c t s , a consequence w h i c h h a s been p a r t i c u l a r l y v a l u a b l e t o B r i t i s h Columbia f i s h i n g ,  m i n i n g , and f o r e s t  Industries,  Taken f r o m a n o t h e r a n g l e , water-borne i m p o r t s i n t o Canada a r e encouraged b y low f r e i g h t which g r a i n exports play  In B r i t i s h  r a t e s . • Dae  low r a t e s r e s u l t is felt  to the l a r g e  Columbia's t o t a l  t h e r e s u l t i n g unbalanced l o a d r a t i o ,  f o r cargoes coming t o the P a c i f i c  part  export trade,  k e e n c o m p e t i t i o n and  i n t h e i m p o r t t r a d e , p a r t i c u l a r l y by  Western  Coast.  and  relatively This  advantage  s h i p p e r s dealing- i n goods  o f a b u l k y n a t u r e , a s , f o r e x a m p l e , h o o k s , t e a , s t e e l and  iron  goods,  machinery, etc.  It  i s g e n e r a l l y agreed that  i n t h e s p e c t a c u l a r development o f t h e Panama C a n a l a Canadian P a c i f i c o f t h e key c i t i e s  one  of the P o r t  Vancouver r e c e i v e d  Hallway linked  o f t h e most i m p o r t a n t  factors  o f V a n c o u v e r was t h e c o m p l e t i o  i t sInitial  It to the r e s t  i m p e t u s when t h e  o f Canada,  I t became  one  o f t h e Dominion when t h e Panama C a n a l l i n k e d i t to t h e  t r a d e r o u t e s of t h e w o r l d .  I t i s i n t e r e s t i n g t o n o t e that V a n c o u v e r  p o r t a u t h o r i t i e s o n l y commenced k e e p i n g d e t a i l e d r e c o r d s of s h i p p i n g and -  (166)  trade  i n t h e year  1920,  Canadian shipping. a port  of c a l l  important It  the year t h e c a n a l  a c t i v e use  by  Such a n e v e n t as t h e i n c l u d i n g o f V a n c o u v e r  as  on t h e g r e a t  to the c i t y ,  came i n t o  s h i p p i n g roiites of the world  b u t to t h e w h o l e p r o v i n c e ,  was  and t o W e s t e r n  c o u l d n o t b u t b r i n g w i t h i t new d e v e l o p m e n t , new c a p i t a l ,  i n d u s t r i e s , a n d new  markets*  not  new  only Canad  (167) CHAPTER X  I n approaching 'cannot  the c o n c l u s i o n o f a s t u d y such as t h i s ,  r e f r a i n from m a k i n g a few  suggestions which  one  might h e l p to  a l l e v i a t e t h e d i s a b i l i t i e s and  a c c e n t u a t e the advantages of such  gift  s o u t h a s t h e c o n s t r u c t i o n o f t h e Panama  from  Canal,  our n e i g h b o r s  The  most i m p o r t a n t  more e x h a u s t i v e E u r o p e , and thought  study  t h i s problem  ever  lack  In their and  work t h a t can b e  of the d i s a b i l i t i e s  of storage  methods i n use  o f the g r e a t e s t d i f f i c u l t i e s to b e  f a c i l i t i e s and  find  i t necessary  fields.  r a t h e r t h a n to w a i t h a v e l e d t h e way  overcome i s space.  producers  merchandizing by t h e  experience  t o go t o t h e m a r k e t t o s e l l h i s p r o d u c t ,  sale  American  applying i t ,  producers with  o f a u t o m o b i l e s , r a d i o s , m a c h i n e r y , and  Perhaps Canadians should f o l l o w t h e i r  move i n t o t h e w o r l d m a r k e t f o r w h e a t , w h i c h  s m a l l an,area as t o l e n d i t s e l f  Fair,  advantage.  For example, i t has been t h e custom i n c e r t a i n  I n t h i s method o f d i s t r i b u t i o n ,  of other products.  L.M.  profit  the  of cargo  Western  to i n v e s t i g a t e the  f o r t h e m a r k e t t o come t o h i m ,  s u c c e s s , to the  Mr,  shortage  a s o l u t i o n to t h i s problem.  i n d u s t r i e s f o r the p r o d u c e r  and  the p e r i o d i c  i n o t h e r b u s i n e s s e n t e r p r i s e s , and  gained i n those  host  of the Western r o u t e to  s h o u l d be a p p r o a c h e d o b j e c t i v e l y , w i t h  one  e f f o r t s to find  e x p o r t e r s may  admirable  done i n t h e f u t u r e i s a  i n m i n d o f u s i n g t h e m a t e r i a l s at hand t o t h e b e s t  Undoubtedly, the  to the  a  admirably  i n h i s b o o k , The  i s concentrated  to easy  a  example, i n so  exploitation,  T r o n s p o r t ^ t i o n o f Cg.ru.dicn  (168)  Whgat t o t h e S e a , makes t h i s  statementt-  " I t i s e s s e n t i a l t h a t t h e f l o w o f wheat f r o m H o r t h A m e r i c a t o E u r o p e s h o u l d he c o n s t a n t , as i n E u r o p e l a r g e s t o r a g e e l e v a t o r s a r e not used i n the g r a i n t r a d e . S h e d s and f l a t warehouses a r e p r o v i d e d o n t h e q u a y s , h u t t h e g r a i n p a s s e s quickly through these t o the millers.' I 1  He  s e t s t h e a p p r o x i m a t e c a p a c i t y o f p u b l i c s t o r a g e i n B r i t a i n a t 26  m i l l i o n b u s h e l s , and y e t B r i t a i n ' s i m p o r t s o f w h e a t amount t o o v e r m i l l i o n bushels annually.  Canadians might w e l l  look into t h i s  200  whole  p r o b l e m , w i t h an e y e t o f u r n i s h i n g i n t h e U n i t e d K i n g d o m n o t o n l y t h e g r a i n , b u t t h e s t o r a g e f a c i l i t i e s and t h e t e c h n i c a l to  h a n d l e such a l a r g e volume  should be v i t a l l y  interested  o f wheat.  services  required  Western producers, i n p a r t i c u l a r ,  i n i n v e s t i g a t i n g t h e p r a c t i c a b i l i t y o f such  a scheme. Under In  s u c h a method o f m a r k e t i n g , t h e p r o d u c e r w o u l d t h e n b e  c l o s e t o u c h , not o n l y w i t h the U n i t e d Kingdom market, b u t w i t h the  e n t i r e , market of Europe, at  Ample s t o c k s o f g r a i n c o u l d b e k e p t o n  a l l t i m e s ; • t h e t i m e element under  hand-to-mouth  hand  buying conditions  w o u l d be v i r t u a l l y e l i m i n a t e d ; and more m o d e r n m e r c h a n d i z i n g m e t h o d s could he a p p l i e d .  V a n c o u v e r w o u l d become m e r e l y a c l e a r i n g h o u s e f o r  a l a r g e p a r t o f t h e Canadian g r a i n c r o p ; ' t h e r i s k s w h i c h s h i p p e r s must now t a k e w o u l d b e e l i m i n a t e d o r r e d u c e d ; and t h e p r o b l e m s o f I n a d e q u a t e l o c a l markets, storage f a c i l i t i e s ,  a n d u n c e r t a i n c a r g o s p a c e would b e  r e d u c e d t o a minimum.  Of e v e n more i m m e d i a t e i n t e r e s t t o t h e P r o v i n c e o f B r i t i s h Columbia i s t h e p r o v i s i o n o f adequate t r a n s p o r t a t i o n f a c i l i t i e s l71?8dr"71'i^^  ia  to the  .. j f t ^ t j b o j y ^ T o r o n t o ; , n  p.5.  (169)  Peace R i v e r D i s t r i c t .  H e r e we  whea-t-producing l a n d , w h i c h  should  through P a c i f i c  Coast p o r t s ,  a d d i t i o n to the  present  Finally, to  as  h a v e 20 m i l l i o n a c r e s  In turn, w i l l  s h i p p i n g through  This p o t e n t i a l  c r o p w o u l d he  volume.of g r a i n c a r r i e d  time g o e s on,  It  f i g u r e s produced i n t h i s  may  w e l l he  unfinished.  We  s o u n d e d i n 1914  Involved  "We  In  of  i n W e s t e r n Canada  F.J. Haskin,  of e n g i n e e r i n g s k i l l ,  t o l d - the book i s  when he  the  s e e n , e v e n a t t h i s ea.rly Tet  still  c a n h a r d l y c l o s e on a m o r e a p p r o p r i a t e n o t e t h a n b y Mr,  facts  i m a g i n a t i o n t h a t went i n t o  have a l r e a d y  means b e e n c o m p l e t e l y  the multitude  t h a t we  d a t e , many o f t h e r e s u l t s o f t h i s g r e a t p i e c e b y no  developed  to the European t r a d e .  difficulties  investigation,  t h a n k f u l f o r the c o u r a g e and  s t o r y has  welcome  Coast,  h u i l d i n g o f t h e Panama C a n a l .  the  a very  over the W e s t e r n r o u t e .  v/ould seem, i n l o o k i n g h a c k t h r o u g h  and  markets  t h e O r i e n t a l m a r k e t must h e  a l l e v i a t e some o f t h e  the P a c i f i c  high-grade  he p o u r i n g g r a i n to w o r l d  t h e p o i n t w h e r e i t i s a more v a l u e h i e a d j u n c t  This,  of  that  said,  " T h e r e w i l l b e a s u d d e n re™adjustment o f e x i s t i n g t r a d e r o u t e s , and t h i s m i l b e f o l l o w e d b y a l o n g e r a o f d e v e l o p m e n t o f new ' c o n d i t i o n s , w h i c h w i l l b e so g r a d u a l a s t o be a l m o s t i m p e r c e p t i b l e , and y e t so immense as t o e x c i t e the w o n d e r o f h u m a n i t y when i t s t o p s t o r e c k o n i t s f u l l e f f e c t and m e a n i n g . " p  F o r W e s t e r n Canada, t h e r e was  a  sudden r e - a d j u s t m e n t ,  e r a o f development i s i n p r o g r e s s . o p e n e d , we to  stopped  "to reckon  cit.,  i t s f u l l e f f e c t and  357,  now  the  Twenty-four years a f t e r the m e a n i n g " , and  w o n d e r a t s u c h g r o w t h i n so s h o r t a s p a c e i n t i m e .  2. H a s k i n , 3?. J . , op.  and  long  Canal  was  remained  P O S T S C R I P T  (170)  Since  the completion  of t h e foregoing  sttdy, the following  a r t i c l e a p p e a r e d i n t h e Yancoaver D a i l y P r o v i n c e , under  t h e name o f Mr. A. C.  on F e b r u a r y  1st,  Cummlngs, L o n d o n C o r r e s p o n d e n t o f t h i s  papers •  •  " A d e q u a t e o i l s u p p l i e s -for t h e E o y a l N a v y h a v e now b e e n s e c r e t l y s t o r e d I n t h e U n i t e d Kingdom. E v e r s i n c e r e armament b e g a n , q u e s t i o n s h a v e b e e n a s k e d i n P a r l i a m e n t and t h e p r e s s w h e t h e r i n t h e e v e n t o f w a r t h e f l e e t t h a t g u a r d s t h e E m p i r e w o u l d have s u f f i c i e n t o i l t o e n a b l e i t to keep t h e s e a s i n d e f i n i t e l y . "The T i m e s now d i s c l o s e s t h a t t h e p r o b l e m o f n a v a l s u p p l i e s h a s b e e n s o l v e d , and n o t o n l y t h i s . , h u t t h a t r e s e r v e s i n s t o r a g e have been a d e q u a t e l y p r o t e c t e d a g a i n s t a i r r a i d s . L a r g e p r i v a t e s u p p l i e s a r e a l s o a v a i l a b l e , and c o u l d b e u t i l i z e d when r e q u i r e d . "There remains t h e q u e s t i o n o f food storage, p a r t i c u l a r l y wheat. A Cabinet committee has drawn up a food defence p l a n , b u t i s s t i l l c o n s i d e r i n g what s u p p l i e s s h o u l d be stored. The t a s k o f f e e d i n g B r i t a i n i n a f u t u r e war w i l l he g r e a t e r t h a n i n 1 9 1 4 , a s t h e p o p u l a t i o n a l r e a d y i s f o u r m i l l i o n s more, t h e merchant m a r i n e h a s d e c l i n e d , and t h e acreage under a g r i c u l t u r e has l e s s e n e d . "Meanwhile L o r d B e a v e r b r o o k * s newspapers have begun a crusade t o f o r c e t h e g o v e r n m e n t t o a c t i o n w i t h t h e s l o g a n , 'Ton. c a n ' t e a t bombs,'" 1 At  a l a t e r date.  S i r Arthur  S a l t e r , M.P., d i s c u s s e s  d e t a i l t h e s u b j e c t o f home d e f e n c e and f o o d  supplies,  i n T i m e and: T i d e , h e m e n t i o n s n o t o n l y t h e s t o r a g e  In his  i n greater article  o f . w h e a t , but- o f a l l  food  s u p p l i e s , and s u g g e s t s " t h e government should a i m a t s e c u r i n g  food  stocks  in this  country 2  c o n s u m p t i o n o f wheat"..  equivalent  i n food value  He g o e s o n t o a s s e r t t h a t  to a  year's  a n y p e r s o n who makes  a study o f t h e - s i t u a t i o n w i l l be f o r c e d to admit: 1. V a n c o u v e r J D a i l y P r o v i n c e , F e b r u a r y 1, 1 9 3 8 , p. 1. 2, S a l t e r , S i r A r t h u r , 1,1.P.' " D e f e n c e - T h e W e a k e s t L i n k " , Time a n d T i d e , M a r c h 12, 1938, p.535.  (171)  "(1)  That t h e case  f o r action is' irresistible;  (2) T h a t t h e r e m e d y f o r t h e p r e s e n t s i t u a t i o n c a n b e f o u n d , i n f o o d s t o r a g e w i t h o u t undue e x p e n s e ; (3)  T h a t t h e Government i s not g i v i n g a n y t h i n g l i k e the a t t e n t i o n to t h i s s u b j e c t w h i c h i t i m p e r a t i v e l y demands. , n  ?  While defence  t h e two a r t i c l e s quoted s t r e s s food  measure i n case  o f war, t h e y  do i n d i c a t e t h a t , a l r e a d y , t h e  s u b j e c t has r e c e i v e d c o n s i d e r a b l e a t t e n t i o n . Canadian c o - o p e r a t i o n , as suggested very  i n Chapter  f a v o r a b l e c o n s i d e r a t i o n i n Great  The moment seems r i p e  f o r a thorough  S a l t e r , op. c i t , ,  335.  A plan  involving  X, m i g h t r e c e i v e  B r i t a i n at the present study  C a n a d i a n g r a i n d i s t r i b u t i o n i n the U n i t e d  3.  s t o r a g e as a  time.  of the whole s u b j e c t o f Kingdom.  (172) BIBLIOGRAPHY  GENERAL (A)  Historical. B a k e n h u s , R e u b e n E. C o - a u t h o r s , K n a p p , H a r r y S., and • J o h n s o n , I.R., Ph.D., Sc.D, The.Panama C a n a l , New Y o r k , J o h n W i l e y & Sons,- I n c . , 1915. Brady, Alexander.  Canada. London, E r n e s t Benn L t d . ,  1932.  B u c h a n , J o h n , ( E d i t o r ) B r i t i s h A m e r i c a , ( N a t i o n s o f To-Day S e r i e s ) . B o s t o n and. New Y o r k , Haughton M i f f l i n . C o . , 1923. H a l l b e r g , C h a r l e s W i l l i a m . The S u e z C a n a l , i t s H i s t o r y and D i p l o m a t i c I m p o r t a n c e . C o l u m b i a U n i v e r s i t y , 1931. H a s k i n , F r e d e r i c k J . 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