have located in Canada with a capitalization of about 

 $320,000,000. As an indication of the trend of the times, 

 I might tell you that in our Montreal and Toronto offices 

 we have at the present time several hundred prospects 

 who are looking into the question of operating branches 

 of their industries in the Dominion as soon as the financial 

 situation rights itself. A large percentage of these, I have 

 not the slightest hesitation in saying, will develop from 

 prospects into actualities. 



Co-operation with City Industrial Agents 



In such a comprehensive work, covering such a multi- 

 tude of towns, care has to be taken not to unduly boost 

 one location against another which induces civic jealousy 

 and a host of minor ills. It is here that the Industrial 

 Commissioner of a town comes in handy. We can refer 

 the manufacturer to four or five likely locations and then 

 it is incumbent upon the towns themselves to convince 

 him or his representative that they have all the requisites 

 he is desirous of finding before locating his plant. 



The Industrial Department on Western Lines, under 

 Mr. John F. Sweeting, Industrial Agent, Winnipeg, is 

 run on very similar lines, devoting its attention to the 

 industrial colonization of the Canadian Pacific Railway 

 lines from Winnipeg to the Pacific Coast. 



There is one phase of Western industrial development 

 which is probably different to that which exists on most 

 parts of the American Continent, and it is caused by the 

 fact that the Canadian Pacific Railway in constructing 

 lines throughout the prairies has had to establish and build 

 up townsites along its main and branch lines. You will 

 see from this that the Industrial Agent's work is extended 

 to cover a location of initial retail businesses in such town- 

 sites, and from year to year to add to their requirements 

 by introduction of additional businesses, or where natural 

 resources are available capable of commercial development, 

 interest capital to such end. 



Mention might be made here of another branch of the 

 Canadian Pacific Railway engaged in another method of 

 colonization, the Department of Colonization & Develop- 

 ment under Col. J. S. Dennis, who is probably known to a 

 number of you here present. By an energetic system of 

 propaganda through the medium of literature, exhibitions, 

 motion pictures and other publicity, it is their endeavor 

 to colonize the vacant tracts of Canada with people from 

 other lands, whilst a branch of the Department is interested 

 in investigating natural wealth, promoting new industries 

 and fostering the industrial activity of the Dominion by 

 every means. 



Public Confidence in Industrial Agents 



No doubt those members of this Association who are 

 carrying on similar work in the United States have found, 

 just as we have in Canada, that the average business firm 

 places a lot of confidence in the Railroad Industrial Agent 

 and accepts information supplied by such a source at its 

 face value, and is satisfied that we err towards conserva- 

 tism rather than any idea of boosting the data which we 

 supply. 



There is a tremendous interest for United States 

 financiers at the present time in the newly discovered oil 

 fields at Fort Norman into which much American wealth 

 is pouring. Here, too, is the Canadian Pacific Railway 

 interested to an extent, for the Edmonton, Dunvegan & 

 British Columbia Railroad now operated by this company 

 penetrates the Peace River Country and offers the only 

 railroad access to the oil fields. 



In the year 1919, two hundred American branch 

 factories were established in Canada by United States 

 firms. Figures for last year are not available, but from 

 my personal experience there is not the slightest doubt 

 but that this number was well left behind. Prospects at 

 the present time are excellent for a continuance, and I look 

 for an increased industrial interest in Canada by United 

 States business men this year in view of the ever-increasing 

 advantages offered by them to establish there. 



This, briefly, gentlemen, covers the activities of the 

 Industrial Branch of the Canadian Pacific Railway, and I 

 trust I hav; made it clear to you how it aids United States 

 manufacturers to select the right location for their Cana- 

 dian branches from all standpoints. 



Canada's Trade by Countries, 1920-21 



The trade returns for Canada for the year 

 ending March 31st, 1921, are unusually interest- 

 ing in that they indicate the new direction in 

 which markets lie. Markets are the paramount 

 question, for both in respect to -raw and manu- 

 factured products the Dominion is producing a 

 great deal more than can be consumed at home. 

 The question of markets is the more interesting 

 because the rate of exchange is militating so 

 against exports to certain countries which for- 

 merly bought heavily of Canadian products, that 

 other markets must, if possible, be found. 



Total exports were $1,210,428,119, as com- 

 pared with $1,286,658,709 for the year 1919-20. 

 The decrease in the exports of domestic exports 

 was not, however, so large, amounting to approxi- 

 mately $50,000,000. On the whole this is to be 

 attributed to decline in prices more than to a 

 decreased volume of shipments. Dealing only 

 with exports of domestic produce, the United 

 States was by far Canada's best customer last 

 year, having taken $542,304,456 worth of com- 

 modities as compared with $464,028,183 for the 

 preceding year, or approximately $78,000,000 

 more than in 1919-20. 



The United Kingdom was Canada's second 

 best customer, having taken $312,842,921 worth 

 last year as against $489,152,921 in 1919-20, and 

 $540,750,977 in 1918-19. During the last three 

 years, while exports to the United States have 

 increased from $454,873,170 to $542,304,456, 

 those to the United Kingdom have decreased 

 from $540,750,977 to $312,842,921. 



Trade with the Empire 



The British Empire took last year a much less 

 volume of commodities than it did during the 

 preceding year. The figures were $403,470,602 in 

 1920-21 and $561,788,003 in 1919-20. This is 

 explained chiefly by the decline in exports to the 

 United Kingdom. During the year, exports to 

 Australia increased by $6,750,000; to British 

 Guiana by $585,000; to British South Africa, 

 $8,000,000; to the British West Indies, $2,161,- 

 000; to Hong Kong, $657,000; to Newfoundland, 

 $520,000; to New Zealand, $4,900,000. To other 

 portions of the British Empire, there was a 

 falling off to the extent of $3,000,000. 



Turning to other countries, exports to Italy 

 increased by nearly $41,000,000; to the Nether- 

 lands by $15,000,000; to the Argentine by 

 $2,000,000; to other countries by $5,750,000. 

 On the other hand, there were some not- 

 able decreases. Exports to France fell from 

 $61,108,000 to $27,248,000; to Greece from 



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