II. Organization of the Export Trade 



The successful development of our export trade will be dependent primarily upon 

 the following factors: Enterprise in seeking the market, efficient organization, uniform 

 and high quality of the product, volume of supply, together with adequate transpor- 

 tation facilities at reasonable rates. Other factors will, no doubt, contribute materially 

 to the success of the undertaking, but achievement to the extent of our opportunity 

 is definitely dependent upon these considerations. It must be recognized at once that 

 unless Canada goes after this market, in a thorough-going, business-like way, she may 

 expect to fall very far behind in the race. 



This is no place to discuss or to outline the measures that may be needed to promote 

 the development of this trade. A few observations, however, respecting features in 

 whidh improvement should be effected, may serve to bring about a better understanding 

 of the situation. From a general point of view, it appeared to me that there is a lack 

 of connection between our tradespeople here and the tradespeople in Great Britain, 

 and a dearth of information in Canada with respect to all phases of market business in 

 the United Kingdom. Full knowledge of market requirements is absolutely essential 

 to successful trade. Viewing our commercial enterprise in comparison with the organ- 

 izations already effected by other countries, I have no hesitation in saying that unless 

 a very much closer connection is established by Canada and unless a similarly systematic 

 programme is aggressively proceeded with, our methods, with certain notable exceptions, 

 must continue to be classed as haphazard, futile and incomplete. 



Transportation 



During the period of the war, transportation will constitute one of the most difficult 

 problems connected with our export business. Not only is there an insufficient supply 

 of ships, but present rates are excessive, and in some instances almost prohibitive. 

 The commandeering of such a considerable number of vessels for naval use, the changing 

 of the routes of ships, together with the losses that have occurred in the mercantile 

 marine, will make it very difficult to secure normal service to this or to other countries 

 either during or after the war. Adequate transportation facilities, it may be taken at 

 once for granted, furnish one of the most effective weapons in competing for and estab- 

 lishing an export trade. With this understanding of the situation, the need for a co- 

 ordination of interest between the shippers and the transportation and shipping com- 

 panies, is easily apparent. To allow such an important matter as this undoubtedly is, 

 to adjust itself under present circumstances as accident or caprice may dictate, is but 

 to invite disappointment and defeat in the realization of our ambition to secure recog- 

 nition and a national reputation in the development of a comprehensive commercial 

 policy, in association with Great Britain, her allies, and our sister dominions. Neutral 

 nations are taking up this problem, and ic is essential that we, at the very beginning, 

 endeavour to secure for ourselves, the advantages in this direction which ihe exercise 

 of foresight, careful judgment and aggressive action may so easily obtain. The problem 

 involves a consideration of the volume of our supply, the extent of our market and the 

 permanence of our trade. Producers, produce merchants and shipping companies 

 have each wide interests at stake in the sale of our goods through an export channel. 

 No apology is offered, therefore, for the recommendation that the interests of all be 

 co-ordinated into a policy that shall permanently safeguard the future of our export 

 market. 



Nationalization of the Trade 



As has already been intimated, the Dominion is now in a particularly favourable 

 position in all our dealings with the Mother Country to trade upon the term "Canadian." 

 If, however, Canada and Canadian shippers are content to have the product of the 

 Dominion exported without such supervision or organization as shall secure uniformity 

 and high quality in the material forwarded, we may expect to find the trade hampered 



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