RELATED TOPICS 259 



The corresponding figures for the year 1910 were 

 19,937,853 and 29,534,632. That is to say, the value 

 added by our manufacturing processes in 1905 was 

 9,741,368, and 9,596,779 in 1910 an actual decrease, 

 despite the fact that meat freezing, butter and cheese 

 factories are included, for which the corresponding 

 statistics would undoubtedly show a large increase. 



Now, what conclusions do these statistics furnish? 

 I am fully aware of the fact that without studying 

 fluctuations in prices mere comparison of values is 

 misleading. The simplest way of making a rough esti- 

 mate of the effect of price changes is to consider the 

 relative changes in the price index number of the two 

 main groups of products farm and non-farm products. 

 We find from Dr. Mcllraith's index numbers that both 

 groups rose in price in 1910 compared with the prices 

 for 1905, but that non-farm products have risen less in 

 value than farm products, as is always the case in a 

 time of rising prices. But this difference alone is not 

 sufficient to account for either the stagnation in the 

 progress of manufactures or the rapid strides which the 

 primary industries have made. The general conclusion 

 is that while the period 1905-1910 was a prosperous one 

 generally, our manufacturing industries were at a 

 standstill, and this despite the fact that they were 

 protected to an extent of at least 20 per cent, all 

 round. 



The truth probably is that they had already suffered 

 reaction after the false stimulus given them by the 

 protective tariff which our manufacturers had secured 

 for their industries previously. Under these circum- 

 stances we are not surprised that they now require 

 another stimulant. Hence the recent cry for more 

 protection and still more protection, even though the 

 protected industries of the country afford employment 

 for only some 5 per cent of the population. The pro- 



