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 which these statements raise. I shall at once address myself to them, merely remarking, in passing, that under the head of "Two Neo-Protectionists," I shall have to make further reference to the articles from which I have quoted.

The first thing that strikes one regarding these utterances is this—that the bare fact of our imports being larger than our exports is held by these writers to constitute in itself a great and growing evil. According to them it is a self-evident proposition, the mere propounding of which ought to carry conviction to every mind. And on this idea their whole argument seems to be based. They leave out of account everything but the bare fact that our imports exceed our exports! They leave out of account such matters as the following:—Our shipping receipts, insurance, interest, merchants' profits, and, last not least, the income we derive from our foreign investments! Let us try to make a rough estimate of these "unconsidered trifles."

As regards shipping, we possessed in 1880 56 per cent. of the world's ocean carrying power; assuming that the average of freight is about 10 per cent. ad valorem, and our combined export and import trade is about 700 millions, our receipts under this head maybe put down at 40 millions; but to this must be added the receipts for our inter-foreign and inter-colonial trade, and the receipts from passenger traffic. I do not think 45 millions a high figure to set down as our total shipping receipts. Mulhall, in his "Balance Sheet of the World," p. 44, puts them down at £51,920,000.

Then comes insurance. An average of ½ per cent. on our total trade gives £3,500,000.

Next comes interest. If we take the moderate sum of 100 millions as employed in our foreign trade, 5 per cent. gives us 5 millions.

Next come merchants' profits. Say 2½ per cent. on the 700 millions: this gives us 17½ millions.

Lastly, take foreign investments. The Economist, of March 5th last, quoting from the "Bankers' Magazine," puts these down as yielding over 55 millions per annum.

What is the total of these items?