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 timber from Canada, the good, cheap timber from the North of Europe was shut out, and we were compelled to use for building purposes wood particularly subject to dry-rot But there was still a demand for Baltic timber, and thus there followed one of those absurdities which always track the course of Preference. It actually paid to ship wood from Northern Europe to Canada in order that it might come in here as colonial timber. In consequence of this artificial stimulus, large vested interests grew up in Canada in connection with the trade. When, then, preference was withdrawn, first partially and then entirely, as it became absolutely necessary in the interests of British trade, these interests not unnaturally held themselves to be deeply aggrieved. They were, they declared, certain to be ruined. The sufferers threatened secession and an agitation in favour of annexation to the United States. But, though the timber merchants suffered, the small farmers rejoiced, for they had resented the preference. Agriculture had been neglected in the Colony for the benefit of a few great capitalists. Canadian millers also suffered when we ceased to give a preference to Canadian flour. The discriminating duty on colonial flour had allowed Americans to import their wheat into Canada, where it was ground up, and then exported to England as Canadian flour.

The results of preferential treatment in the case of sugar were even more preposterous than those in that of timber. The duties on sugar in 1836 were 36s. a hundredweight on colonial and 63s. on foreign sugar. They were regulated anew in 1842, owing to the depression produced in the West India Islands by the abolition of slavery, and stood then at 14s. for colonial brown sugar, 63s. for foreign sugar produced by slave-labour, and 23s. 4d. when produced by non-slave labour. This distinction was really an absurdity, for we allowed other slave-made commodities to enter without any differential duty. In consequence, the average loss to the British public was enormous, and the Revenue lost