ment from coast to coast in the Dominion. Householders 

 look askance at the idea of purchasing where their dollar 

 is discounted at several cents, and are by every possible 

 means curtailing their purchases across the border. This 

 has driven United States manufacturers selling to Can- 

 ada to establish plants in Canada if they are concerned 

 about keeping their Canadian trade. 



As a result of a realization of these conditions among 

 United States manufacturers more than two hundred 

 branch factories of their industries located in Canada in 

 1919. It is unfortunately not possible to give corre- 

 sponding figures for 1920, but without doubt, from all the 

 indications of the year, there were many more than in 

 the previous year. There are 700 branch factories of 

 United States industries operating in Canada at the 

 present time, and not less than 200 other American fac- 

 tories seeking Canadian locations. That this process 

 of establishment is continuing, as wide-awake manufac- 

 turers across the line become aroused to the advisability, 

 indeed necessity, of establishing Canadian connections, 

 is evident in the number of federal and provincial in- 

 corporations and the continuous stream of inquiries 

 from across the border received by Canadian Boards of 

 Trade and other industrial bodies concerned in assisting 

 and placing new industries. These inquiries cover every 

 branch of manufacturing activity, and in one Ontario 

 town more than one hundred such inquiries were re- 

 ceived last year from such industries as automobile weld- 

 ing, chemical and toilet preparations, proprietary medi- 

 cines, metal and wood working tools, wire goods, etc. 



Why U. S. Manufacturers come to Canada 



What induces so many United States manufacturers 

 to locate in Canada? The reasons are not far to seek. 

 Before the war when there were about 350 branch plants 

 of United States industries operating in Canada it was 

 generally accepted that they had made this move to 

 escape the Canadian lariff, and this was probably cor- 

 rect in the majority of cases. But now the wide-awake 

 United States manufacturer is actuated to this end by a 

 greater variety of reasons, all contributing to the absolute 

 conviction that he can manufacture for the Canadian 

 market and Empire trade more profitably and cheaply 

 in Canada than in the parent plant. 



The depreciated purchasing power of the Canadian 

 dollar in the United States has already been noted as a 

 special inducement for establishing a branch plant in 

 Canada at the present time and the natural corollary of 

 reluctance on the part of the Canadian public to buy 

 across the border where their money is worth so much 

 less than at home. United States firms have also found 

 that export orders received by the parent company in 

 the United States for shipment to the United Kingdom 

 and other parts of the British Empire can be handled 

 with greater facility and more expeditiously through a 

 branch house manufacturing in Canada. In the matter 

 of Empire trade, foreign firms are induced to the same 

 end by the opportunity afforded them of securing the 

 advantages of the many preferential tariffs which exist 

 for the benefit of countries within the British Empire. 

 Preferential treatment is accorded, for instance, certain 

 Canadian goods by Great Britain, New Zealand, South 

 Africa, Australia, British Guiana, the West India Is- 

 lands, whilst under the terms of an agreement with France 

 existing since 1907, Canada's products enter that country 

 under especially favorable conditions. Again, the United 

 States firm which has developed^ a market for its pro- 

 ducts in Canada, by locating in a small way in the Dom- 

 inion, has its market, within easy reach and is in a posi- 

 tion to grow and expand with the domestic market as well 

 as the export trade. The phenomenal rate at which 

 Canada is progressing in all phases of its national life 

 is too well known to need elaboration on the point here. 



The benefits accruing from the -establishment of 

 United States industries in Canada are mutually to the 

 advantage of the United States investors and Canada, 

 who thus gains the advantage of the development of 

 her industries by foreign capital. The increased popu- 

 lation which such industries encourage is indirectly 



accommodating another of Canada's aims and providing 

 an added market for the food products of the Dominion. 

 Canada possesses all the requirements of national order 

 for industrial expansion of every description, lacking only 

 the necessary capital to establish them and put them in 

 operation. Therefore, Canada through organizations of 

 every nature, its railways, its incorporated cities and 

 towns, its civic bodies and boards of trade, offers every 

 inducement to new industries to locate on its broad ex- 

 panse. In no country is greater encouragement given 

 to foreign manufacturers to locate, whilst the expanding 

 domestic market and the rapidly growing export trade 

 furnish a sure and steady output for products. 



In some of the Canadian provinces certain towns 

 still offer a bonus to new industries locating within their 

 confines, though in other provinces this practice is for- 

 bidden by law. There is, however, sufficient inducement 

 without this. A great many towns of substance and pro- 

 gress, audous to expand industrially, offer free sites to 

 new manufactures, and in a number exemption from 

 taxation is granted for varying periods up to twenty 

 years from the date of locating. Water is often provided 

 at cost to industry, whilst some cities and towns make 

 themselves responsible for the expense incurred in the 

 installation of public improvements in the way of street 

 extensions, sewerage, waterworks, etc., about the site 

 and premises of the incoming industry. 



A feature of Canadian industrial development to 

 be borne in mind is the Dominion's possession of an 

 enormous wealth of water powers, amounting in all to 

 19,500,000 horse power and widely distributed. The 

 insignificant portion yet developed suffices to provide 

 light, heat and power to industries at very low rates, 

 special terms being generally accorded over the low cost 

 of generation and production. Winnipeg, for instance, 

 provides power to industrial concerns at a rate cheaper 

 than any other point on the American continent. 



Every Assistance to Projected Industries 



Generally speaking new industries locating in Can- 

 ada can do so at a minimum of expense, every possible 

 inducement and assistance being held out to them. Boards 

 of trade and industrial commissioners throughout the 

 country are anxious to have prospective manufacturers 

 appraise the advantages of their own particular towns 

 and extend every co-operation and assistance in locating. 

 The railways of Canada maintain special industrial de- 

 partments for the aiding and locating of industries along 

 their lines. Their staffs have at all times a wealth of 

 information on hand covering locations of natural de- 

 posits, available industrial sites, suitability and advantage 

 of locality, and experts give advice on settlement, having 

 at their finger ends knowledge of all pertinent factors. 



Canada has undergone a trade revolution since the 

 termination of the war and has awakened to a clearer 

 vision of her illimitable opportunities. She is reaching 

 out on every hand, seizing new trade and expanding 

 exports, every month reporting new developments of 

 this nature and new countries reached in a trade way. 

 The Canadian manufacturer has become instilled with 

 a new ambition and vision. The inevitable outcome is 

 the greater ability of the Canadian manufacturer to 

 supply all the needs of the domestic market to the ex- 

 clusion of the foreign, which means mainly the Ui.ited 

 States since Canada does by far the greater part of her 

 purchasing across the line. The United States manu- 

 facturer must come to Canada if he is to maintain his 

 Canadian market. He can no longer afford to put off 

 establishing in Canada if he has a market here of any 

 volume which he is anxious not to lose. All indications 

 tend to indicate the increasing desire to curtail purchases 

 across the line, supported by sound economical reasoning. 

 Self-preservation suggests the only possible remedy to the 

 United States manufacturer the establishment of a 

 branch factory to manufacture his goods in Canada. 



208 



