CANADA, DOMINION OF. 



Duchess of Cornwall and York. The heir to the 

 throne was returning from a tour that had in- 

 cluded many British islands, Australia, New Zea- 

 land, Natal, and Cape Colony, and had covered 

 more than 30,000 miles by sea and land under the 

 British flag and within the empire. Loyalty to 

 the King found expression in the welcome that 

 was given to the royal couple as they landed at 

 Quebec on Sept. 1C, and pride in the empire was 

 voiced in the reception that was everywhere 

 given to the visitors as they traversed the Do- 

 minion from shore to shore. 



At Quebec the reception was particularly effect- 

 ive, and the electrical display from fortress, city, 

 and harbor added to the natural grandeur of the 

 scenery, made the evening spectacle wonderfully 

 impressive. A review of 6,000 troops took place 

 on the Plains of .Abraham, and later of 11,000 

 troops at Toronto and 10000 at Halifax. The 

 royal receptions here and at Montreal were can- 

 celed, out of respect to the memory of President 

 McKinley, whose funeral was then taking place. 

 His Royal Highness distributed the medals 

 awarded to the troops who had served in South 

 Africa. In Winnipeg the central feature of the 

 welcome was the presence of immense arches of 

 wheat upon the chief streets; at Calgary, the gath- 

 ering of thousands of Indians in solemn greet- 

 ing and an exhibition of Western bronco-riding 

 and sports; at Vancouver, a great gathering of 

 school-children singing patriotic songs; at Vic- 

 toria. Indian war-dances and the fireworks and 

 illumination of the city and a fleet of men-of-war 

 in the harbor. 



At Toronto, seven 'miles of continuously deco- 

 rated streets lined by 11,000 soldiers and several 

 hundred thousand people, musical welcome by a 

 trained chorus of 2,000 voices, a crowded recep- 

 tion at the Parliament buildings, state dinners, 

 military review, university honors, and constant 

 cheering were indications of the interest taken in 

 the royal couple. At Ottawa, the unique feature 

 of the welcome was the visit to a lumbermen's 

 camp and a trip down the Ottawa on a lumber- 

 men's raft. From Halifax the Duke and Duchess 

 sailed on Oct. 21, accompanied by a fleet of war- 

 ships. 



Banks. In his budget speech on March 14, 

 1901, the Minister of Finance gave statistics illus- 

 trating the condition of banking in Canada. On 

 Oct. 31, 1870, the circulation of Dominion notes 

 had been $7,450,334; in 1895 it was $22,893,259; 

 in 1900 it had risen to $28,113,229. The circula- 

 tion of small notes ($1 and $2) rose from $3,489,- 

 830 on Oct. 31, 1875, to $7,312,917 in 1895, and 

 $10,236,116 in 1900. The total circulation of the 

 notes of Canadian chartered banks on Oct. 31, 

 1870, was $18,642,895; in 1895, $34,671,028; in 

 1900, $53,198,771. In the Government and post- 

 office savings-banks there was on June 30, 1870, 

 the sum of $3,337,072; in 1885, $32,979,076; in 

 1895, $44,450,498; in 1900, $53,149,722. Public de- 

 posits in the chartered banks on June 30, 1870, 

 amounted to '$54,074,760; in 1885 to $95,030,429; 

 in 1895 to $182,688,227; in 1900 to $277,256,716. 



The annual report of the chief bank in Canada, 

 the Bank of Montreal, was made public on May 

 14, 1901. Its net profits for the year were given 

 as $1.537,522, and its 10-per-cent. dividend as $1,- 

 200,000. The capital stock of the institution Avas 

 $12,000,000; its reserve fund, $7,000,000; its notes 

 in circulation, $6,482,214; its deposits not bear- 

 ing interest. $18,184.774; its deposits bearing in- 

 terest, $54,501.853. The assets included gold and 

 silver coin, $2,564.358; Government of Canada de- 

 mand notes, $3,472,440; indebtedness by British 

 agencies and banks, $2,536,166; indebtedness by 



foreign agencies and hanks, $2.2r.l.2."j7; fall and 

 short loans in Great l.iitain and L'nitcd States, 

 $23,530,028; bonds, debentures and slocks, $2,HH9,- 

 973; notes and checks of other banks, $1,690,470; 

 current loans and discounts in Canada, $r>s,H50,- 

 449. The total liabilities were; given as $ ( .) < J ) ."iK2,- 

 059, and the total assets as the same amount. 



Relations with the United States.- Speak- 

 ing in the House of Commons on Feb. IS, Mr. \v. 

 F. Maclean referred to the strong tariff policy 

 assumed by the Russian Government toward UK- 

 United States, and declared that " we must have 

 a little De-Wetteism in our Government. We 

 must have a tariff with a sliding scale which will 

 be friendly to a friendly government, but will be 

 protective as against an unfriendly one." There 

 was only one way to settle questions at issue be- 

 tween Canada and the United States, and that 

 was by means of the tariff. " If they find their 

 goods barred out of Canada, they will quickly 

 come to terms. In 1896 we imported $57,000,000 

 worth of goods from the United States. That 

 sum has grown to-day to $96,000,000 or more, and 

 it is growing steadily. Canada is the best outside 

 market the United States have. But as long as 

 we are fools enough to let their goods come into 

 this country under the present low tariff, .while 

 they put up a high tariff to bar out our goods, we 

 shall never get fair treatment from them." 



On March 15 Sir Richard Cartwright described 

 the advantage to Canadians of trade with Great 

 Britain over trade with the United States. " Man 

 for man and family for family, our trade with 

 the 40,000,000 of people in Great Britain is very 

 much more profitable to us than our trade with 

 the 70,000,000 people of the United States." We 

 sold to the former about $96,000,000 worth, and 

 to the latter about $60,000,000 worth per annum 

 to the one country $2.50 a head, and to the 

 other 80 cents a head of its population. 



Mr. Clarke Wallace, on March 18, went at 

 length into the tariff relations of the two coun- 

 tries as they affected the agricultural interests 

 of Canada. The best way to live on amicable 

 terms with the people of the United States was 

 to look more closely to our own interests. " Let 

 us make a tariff that will suit ourselves, and if 

 the American people charge high duties on Cana- 

 dian products, let us protect our farmers by 

 charging high duties on their products." He then 

 quoted a large number of items upon which the 

 American duty was higher than the Canadian. 



During the year no direct steps were taken to 

 settle the Alaskan question or the ever-open sub- 

 ject of reciprocity. In the House of Commons Sir 

 Wilfrid Laurier expressed more than once his 

 belief that the negotiations of 1899 would be re- 

 sumed, but at Montreal, in a speech on Nov. 6, 

 he said there would be no more journeys to Wash- 

 ington seeking reciprocity. It would soon, he 

 thought, be the other way. If nothing was to be 

 done by the United States to make trade rela- 

 tions easier, it was urged by Mr. Charlton, a 

 Liberal leader, and by the Toronto World, a Con- 

 servative newspaper, that the duties on American 

 products be raised to the full level of the American 

 tariff on Canadian products. There was some 

 expectation, however, that President Roosevelt, 

 in pressing the McKinley policy of reciprocity, 

 would include Canada in a fair offer for mutual 

 interchange. In this connection the universal 

 sorrow in Canada over the death of the President 

 was significant of the kind feeling entertained to- 

 ward the United States. 



The Mint. On May 17 Mr. Fielding, Minister 

 of Finance, announced in the House of Commons 

 that arrangements had been made for the estab- 



