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PROBLEMS OF EMPIRE. countries of the United Kingdom, and when that is done, the way will be clear for Colonial representation. Other parts of the Empire, too, have each their particular task to perform before they will be in a position to consider any practical proposal for Imperial Federation. Australia has to get her Federal Constitution into working order, and South Africa has to federate her own Provinces. Meanwhile you Canadians, who already possess a Federal Constitution such as I desire to see established in the United Kingdom, can devote your efforts to building up your own country.

To turn to the question in which we are more immediately interested, the policy put before the country by Mr. Chamberlain. This question may be regarded from two aspects. In the first place, there is the standpoint of retaliation—or, in other words, the necessity of preventing Great Britain from becoming the dumping-ground for American and German manufactures. I do not think there will be much dispute as to the necessity of taking steps to meet this evil. Second, there is the question of preferential trade within the Empire, and here I get on more difficult ground.

It would, of course, be idle to discuss any scheme for an Imperial preferential tariff unless the people of the old country are prepared to put a tax on foreign wheat and meat, for the benefit of Canadian and Australian producers. Mr. Chamberlain's policy aims to do this, and at the same time not to increase the cost of living to the people. He proposes to substitute for taxes on commodities which the old country cannot produce—such as tea, coffee, &c.—taxes on wheat and other agricultural products which she can herself raise. The result, he believes, will be an equal amount of 164