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Two noteworthy pieces of legislation were enacted in connexion with national defence. Formerly the Department of the Naval Service and the Department of Militia and Defence (including the Canadian Air Force) were administered by separate Ministers, but by the National Defence Act, 1922, the whole of Canada's defences were amalgamated and placed under one administrative head to be known as the Minister of National Defence, the first being the Hon. George P. Graham. Naval policy provided material for several interesting debates. Originally 2,500,000 dollars had been sought for the Naval Service. This was considered excessive, and a new arrangement requiring an appropriation of only 1,500,000 dollars was announced by Mr. Graham. Under this scheme the cruiser Aurora and the two submarines which had formed part of the gift made by Great Britain in 1920 were laid up, and several naval colleges closed. Further, all the officers on Service in Canada from the Royal Navy were asked to return, and only a small permanent force was retained. A Naval Volunteer Force was, however, created to be trained in coast protection, mine-laying, minesweeping, etc., the calculation being that about 1,500 men could be secured annually for such a Force.

Mr. Meighen, Leader of the Opposition, attacked the scheme, stating that it was incompatible with the part which Canada claimed and hoped to play as an integral part of the British Commonwealth. Against this view Mr. Mackenzie King and other Liberal speakers argued that neither did the world condition demand, nor Canadian finances permit a larger naval expenditure at that juncture; that the plan followed the traditional policy of the Liberal Party, and that the measure was not to be regarded as final, being capable of immediate expansion in times of emergency. With the support of the Progressives, whose leader advocated a five-year naval holiday, the Government carried the economies proposed.

Other statutes were for the establishment of a Wheat Board for handling the grain crop; the arbitration of differences arising out of the restoration of the natural resources of the Western Provinces; the restriction of Orientals from entry into British Columbia; the ratification of the Peace Treaties with Turkey and Hungary, and numerous minor Acts including Amendments to the Soldiers' Civil Re-establishment Act, the Animal Contagious Diseases Act, the Dominions Election Act, the Canada Temperance Act, and the Canada Shipping Act.

Parliament adjourned at a late hour on June 28. Immediately after prorogation the Governor-General left for an extended tour of the Western Provinces, and the Prime Minister announced that the next session would open in January, 1923.

In July the Canadian Premier, accompanied by his Minister of Defence, visited Washington in connexion with the RushBagot Agreement of 1817 by which the use of warships on the Great Lakes was prohibited, and suggested that this Agreement

should be replaced by a permanent treaty. During the conference problems relating to fisheries, the great waterways, and reciprocal treatment in income taxation were also subjects of discussion. Negotiations on the desired treaty followed, and Mr. King was greatly pleased by the reception accorded to Canada's suggestions. Later in the year Mr. Fielding also visited Washington to discuss tariff and financial matters with the American state officials.

From time to time throughout the year the desirability of a direct and permanent representation of Canada in the United States capital was mooted both in Parliament and in the Press. A general feeling prevails that the numerous important questions arising solely between the two countries, divided by an invisible boundary line of 3,000 miles, justify a suitable diplomatic appointment. Recognition of this feeling has been expressed by the Imperial Government who have signified willingness to the change of present procedure by which all American-Canadian matters are dealt with through the British Ambassador at Washington and the Colonial and Foreign Offices in London. But although many views on this constitutional development have been urged from both sides, and the names of eminent Canadian statesmen (notably Sir Lomer Gouin, Sir Robert Borden, and Sir Charles Fitzpatrick) have been mentioned in this connexion, no appointment has yet been made.

With the many domestic problems demanding consideration and solution, Canada had but partially realised her national responsibilities in the Near Eastern situation, involving the Turkish threat to the freedom of the Straits. During the Premier's brief absence from the capital in September war clouds had been fast gathering, and it was not without some measure of consternation that the urgent cable from the Imperial Cabinet was received inviting the Dominion to share in providing contingents for the Near East (see p. 106). The sudden imminence of war created misgiving throughout Canada, but prompt volunteering for war service came from many quarters. After consultation with his colleagues, Mr. King replied to the invitation that Canadian opinion demanded the authority of Parliament as a necessary preliminary to the despatch of a contingent, and that the Government would welcome further information in order to decide upon the advisability of summoning Parliament. The Cabinet met and preparations for the meeting of Parliament in special session were on foot, when more reassuring news arrived and it was found that, with the crisis passed, no further steps on the part of Canada were necessary.

During the year a number of delegates from Ottawa visited England and, with the High Commissioner in London, attended several conferences with the British Authorities on the subject of the importation of Canadian cattle into the United Kingdom. A Royal Commission had already reported in favour of their

admission, but a number of important points had yet to be considered. Eventually the Home Government passed the necessary legislation, the Bill receiving royal assent on December 15. The lifting of the embargo which had been in operation for over thirty years was received with widespread satisfaction in the Dominion, and the effect on the Canadian markets was marked and immediate. The existence of an embargo on cattle from Canada for reasons which had long been untenable was naturally provocative of an unfriendly spirit among Canadian farmers, and its removal therefore not only gave a distinct fillip to the whole of the live stock industry of the Dominion but did much to restore the spirit of cordial cooperation between the two countries.

The appointment in October of Sir Henry Thornton, the former manager of the Great Eastern Railway in England, as Chief Executive of the new board of directors of the Canadian National Railways was significant of Canada's determination to rival her great southern neighbour in transportation on a transcontinental scale. Having been a source of anxiety to successive Governments for years past, the direction of the State-owned railways, covering over 20,000 miles and now including the Grand Trunk Railway, was thus placed in the hands of one whose organising and administrative power, combined with a frank and genial personality, won for him a cordial reception on his arrival in Canada. With an ever-increasing population and export trade, the Dominion's need of economic and efficient transportation from coast to coast has become imperative, and great results are expected from the new control.

The rise of the Farmers to power has become a dominant feature in recent Canadian politics. The three Farmer Governments of Ontario, Manitoba, and Alberta have well demonstrated Progressive administrative ability, yet from the outset there has been division in the Agrarian ranks as to whether they should remain a distinctly class party or whether they should broaden out and become the representatives of a national movement.

The retirement in November of Mr. Crerar, the able Progressive leader who enjoyed great personal prestige, did much to bring matters to a climax. In his valedictory letter to the party meeting at Winnipeg he denounced the idea of occupational politics, declared himself against any fusion or alliance with the Liberals, and advocated the organisation of Progressive associations which would attract other classes than farmers in every constituency. Further, Mr. Crerar advised certain modifications of the party programme, one of which was the provision of Free Trade with Great Britain within five years, and insisted upon Parliament giving a definition of Canada's exact constitutional status. Mr. Drury, the Farmer Premier of Ontario, also urged the formation of "a people's party representing all classes," but his advocacy met with strong

hostility from Mr. J. J. Morrison, Secretary of the United Farmers of Ontario, and Mr. H. W. Wood, the energetic President of the United Farmers of Alberta. Ultimately, at the Annual Convention of the Farmers of Ontario, the following resolutions were passed:

1. That no change be made in the form of organisation for
political purposes;

2. That the Convention reaffirms its adherence to the policy of
complete autonomy for constituencies; and

3. That the Convention is opposed to the transformation of the
Farmers' movement into a new political party.

In Alberta the Farmers expressed their complete sympathy with this attitude. The whole party thus maintains its organic independence, and Mr. Robert Forke, of Brandon, was elected Chairman of the Parliamentary group to succeed Mr. Crerar.

With an area greater than that of the United States, but a population less than that of New York State, the need for a steady influx of settlers in Canada will for long be of paramount importance, and immigration continues to receive the closest attention of the Federal authorities. The new Minister of the Interior, Hon. Charles Stewart, has made every endeavour to acquaint himself with fields from which Canada might hope to attract immigrants, consulting with the principal officials of the Imperial Government and the United States Government as well as making a comprehensive survey of conditions in Canada. The present Government's policy provides that the restrictions hitherto imposed on other than agricultural and domestic labour shall be mitigated, if not entirely removed, and that immigrants with capital will be encouraged. Tenant farmers, particularly from Great Britain, the United States, and Northern Europe are to be sought, and a vigorous advertising campaign begun by Press and lecture in those countries.

Further, schemes have been devised in conjunction with the British Government and other authorities for systematic emigration, including arrangements by which children—especially the orphans of Imperial ex-soldiers-are to be sent annually from Great Britain to new homes and new prospects.

Several international commercial treaties were signed during the year. Besides conducting negotiations with the French Government which resulted in the signing of an agreement between France and Canada, the Hon. W. S. Fielding (Minister of Finance), and the Hon. Ernest Lapointe (Minister of Marine and Fisheries), had discussions on similar questions with the Belgian Government at Brussels and with the representatives of the Spanish and Italian Governments in London and Paris. By the Franco-Canadian Commercial Convention France grants Canada the minimum tariff on 128 items, and on the remainder Canada receives as favourable treatment as is granted to the United States. Reciprocally, Canada grants France the Canadian intermediate tariff and favoured nation treatment generally. At

the request of the Belgian Government negotiations with them were suspended, but a treaty respecting commercial relations between Italy and Canada was concluded at the Foreign Office in London in December. The Spanish Government was asked to maintain for another six months the existing commercial relations which had already been allowed to stand pending arrangements arising out of the treaty recently made by Spain and Great Britain. Another reciprocal trade agreement, chiefly for granting preferential rates, was drafted in Melbourne between the Governments of Canada and Australia, during the visit of the Hon. James Robb, the Canadian Minister of Trade and Commerce (see p. 305).

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In provincial politics considerable interest was aroused in Manitoba by the defeat of the Government in the Legislature on a vote of confidence. Parliament was dissolved on April 6 and as a result of the General Election in July the Liberals were defeated, the returns being: Progressives 28, Liberals 9, Conservatives 7, Labour 6, and Independents 5. Mr. John Bracken, President of the Manitoba Agricultural College, was elected Premier and the new Cabinet was sworn in on August 8.

In Saskatchewan the Hon. C. A. Dunning,_ Provincial Treasurer and Minister of Agriculture, became Premier in April in place of the Hon. W. M. Martin, on the latter's appointment as Judge of the Provincial High Court, and a new Cabinet was formed during the same month.

Several changes were made in the Legislature of British Columbia. These included the withdrawal of Hon. Dr. J. H. King on his acceptance of a portfolio in the Federal Cabinet in succession to the Hon. Hewitt Bostock, who was appointed Speaker of the Senate.

Federal bye-elections resulted in the Conservatives retaining Lanark and the Government holding the four seats of Megantic, Jacques Cartier, Halifax, and Gloucester.

Other noteworthy events of the year were the harvesting of record field crops, the total value being estimated at 984,139,500 dollars; the rapid recovery of the Canadian dollar to almost par rate value; the destruction by fire of a number of public buildings and churches, including the historic Basilica at Quebec, and the remarkable expansion of wireless telegraphy not only by private enterprise but by the official establishment of communication with the Far North and the broadcasting of market reports and other information for the guidance of farmers.

Events of interest abroad included the granting in perpetuity by the French Government of 250 acres of ground on Vimy Ridge for a Canadian Memorial Park, which was accepted in Paris on behalf of Canada by the Hon. Rodolphe Lemieux; the holding of the annual dinner in London in celebration of Dominion Day, at which speeches were delivered by H.R.H. The Duke of York and the Rt. Hon. Winston Churchill, supported by over 400 guests from both sides of the Atlantic.

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