industrial progress have always gone hand in hand. Con- 

 sistent annual increments in the value of agricultural 

 products have been reflected in proportional increases in 

 industrial output. The strength of the incoming human 

 tide is found to correspond largely with the volume of the 

 influx of foreign capital to finance new enterprises. 



For years Canada has had a healthy immigration. For 

 the same long period of time her agricultural production 

 has increased by leaps and bounds. Similarly the manu- 

 facturing industry has become yearly more and more im- 

 portant in the Dominion's national life, and at the present 

 time Canada is fast reaching a state where she will be in a 

 position to manufacture practically her entire needs. For- 

 eign manufacturers are coining, in an ever-increasing extent, 

 to realize the wisdom of manufacturing in Canada and the 

 establishment of new plants steadily continues. 



Steadily Increasing Statistics 



The industrial statistics for the year 1919 have just 

 been issued by the Dominion Bureau of Statistics and in- 

 dicate a healthy increase in all lines over the previous year. 

 In the course of the twelve months the number of manu- 

 facturing plants in the Dominion increased from 35,797 to 

 38,344 or more than eight per cent. The amount of in- 

 dustrial capital invested rose in the same period from $3,- 

 034,801,915 to $3,230,686,368 or by more than $195,000,000. 

 Employees grew from 678,337 in one year to 68 1,500 and the 

 wages and salaries they received from $629,860,644 to 

 $689,434,419. In 1918 the value of the annual production 

 was $3,458,036,975; in 1919 it was $3,520,724,039, an in- 

 crease of nearly $60,000,000. 



The history of industry in Canada is one of progress 

 consistently maintained. In 1870, when the first indus- 

 trial census was taken, there was in the Dominion, as it 

 existed at that time, a capital of $77,964,020 invested in 

 industry. A total of 187,942 employees were paid $40,851,- 

 .009 and accounted for a production in that year of $221,- 

 617,773. In the less than fifty years which have elapsed 

 since that and the last census, the capital invested has 

 increased by more than four thousand per cent, and the 

 annual production by nearly fifteen hundred per cent. 



Invested Capital Increases 114% 



Ten years later the value of invested capital had risen 

 to $164,957,423 and production to $309,731,867. hi 1880 

 there were 49,722 industrial establishments in Canada. 

 Ten years later, in 1890, there were 75,964 establishments, 

 the amount of industrial capital invested was $353,213,- 

 000 and the annual value of production $469,847,886. 

 The increase in capital in this decade amounted to 1 14 

 per cent, and production 52 per cent. 



A new system of taking statistics was adopted in the 

 next decade, only those with five hands or over being noted, 

 and consequently, in 1900, 14,650 establishments were re- 

 turned with a capital of $446,916,487, and a production of 

 $481,053,375. From 1900 to 1915 the increase in the 

 number of establishments was 6.4; the increase in indus- 

 trial capitalization 338.3; and in the value of products 

 187.2. Between 1915 and 1919 there was an increase in 

 the number of establishments amounting to 145 percent., 

 an increase in the capitalization of nearly 65 per cent., and 

 a growth in annual production of more than 155 per cent. 



The 1919 figures do not by any means represent the 

 present status of manufacturing industry in Canada and 

 generous allowance must be made for expansion in the past 

 two years. This has been a period of rreat industrial 

 development and the introduction of substantial capital 

 by foreign investors realizing their advantages in manu- 

 facturing in the Dominion and establishing there. The 

 1920 and 1921 statistics, when published, will show a con- 

 tinuance of the same consistent progress maintained since 

 Confederation. 



Canadian Trade, 1921 



By C. W. Gates, Ottawa 



The total value of Canada's external trade for 1921 

 was $1,616,087,879; as compared with a total trade of 



$2,600,000,000 for 1920. Exports amounted to $816,694,- 

 281 and imports to $802,699,820. The falling off to the 

 extent of a round billion within the twelve months is easily 

 the most notable change in the trade annals of the country. 

 That this remarkable recession has been attended with no 

 more bad effects than have been experienced, speaks 

 much for the recuperative power of Canadian business. 

 "' A decrease of $1,000,000,000, however, in Canada's 

 external trade does not mean a corresponding reduction 

 in the volume of business done. As a matter of fact the 

 reduction is more apparent than real, and is due chiefly to 

 the marked fall in prices during the year. As a matter of 

 fact exports of grain have been larger than during 1920. 

 Still, on the whole, it would be foolish to deny that less 

 business has been done than during the preceding year, the 

 point of chief consideration being that the loss in volume 

 has not been as great as that represented by the much 

 smaller figures. 



The most marked development of the trade of the 

 year was the decline in the value of operations with the 

 United States. In 1920 the total value of this trade was 

 $1,512,000,000; in 1921 there was a drop to approximately 

 $930,000,000. Imports from the United States suffered 

 most; in 1920 they were $921,625,000, whereas in 1921 

 they were approximately $574,000,000. Exports suffered 

 greatly through the incoming of the "emergency" tariff, 

 their value having fallen from $590,000,000 in 1920 to 

 approximately $356,000,000 in 1921. It may be taken for 

 granted that the decrease in imports was to some extent 

 due to inability to sell as freely as formerly in the United 

 States, still due allowance must be made for the decline in 

 purchasing power through the business depression. 



Trade Now Better Balanced 



At the end of the year trade with the United States is 

 found to be in a much sounder and better balanced con- 

 dition than it was at the end of 1920. At that time the 

 balance of trade against this country in favor of the United 

 States was $347,000,000; on the operations of 1921 it was 

 only about $230,000,000. The improved situation is re- 

 flected in the premium on New York funds, which at this 

 writing is around 5 per cent., as compared with 19 at the 

 end of 1920. This probably will have the effect of stimulat- 

 ing imports again from the United States, for the inclina- 

 tion to import therefrom will increase in proportion as the 

 purchasing power of the Canadian dollar increases over 

 there. On the other hand, there is no indication that the 

 value of exports to the Republic will be appreciably in- 

 creased during the near future. How deeply the "emer- 

 gency" tariff has cut into them may be seen in the fact 

 that the value of exports to the United States during the 

 eight months ending November was but $198,000,000 as 

 compared with $381,000,000 for the preceding period. 



Imports from the United Kingdom have declined very 

 greatly during the year; that is from $231,479,000 for 1920 

 to $123,000,000, or equal to 47 per cent. While there 

 naturally would be a marked falling off, owing to the 

 decline in purchasing power, still owing to the advantage 

 that the British preference and the rate of exchange, it is 

 rather surprising that the decline has been so great. On 

 the other hand the value of exports to the United King- 

 dom has held up remarkably well, having been approxi- 

 mately $312,000,000 for the year, or a decrease of only 

 $31,000,000 as compared with the 1920 figures. As there 

 has been a very great fall in the value of these exports, 

 their volume has really been much increased. It is quite 

 probable that during 1922, the United Kingdom will again 

 become Canada's best customer. 



Trade with other Countries 



Reduced figures were also the feature in the case of 

 trade with countries other than the United Kingdom and 

 the United States. Exports to Newfoundland were approxi- 

 mately $7,000,000 less, other reductions being: Belgium, 

 approximately $25,000,000; France, $21,000,000; Greece, 

 $22,000,000; Italy, $15,000,000; British South Africa, $7,- 

 500,000. Exports to Roumania dropped from over $12,- 



27 



