CHAPTER XIII

Imperial preferential trade—Political relations—Defence

Neither new relations with foreign lands across the sea nor new-old relations with the United States bulked as large in these later years as relations with the other parts of the British Empire. The question of the Empire's future was a constant theme. It was a time of unparalleled progress in each and all the British states. Great Britain's vast strides towards social justice, Canada's growth and economic activity, the similar, if lesser, expansion of Australia and New Zealand, the unification of South Africa, all bespoke the strength and soundness of each of the Five Nations. The steady growth of community of feeling and of practical co-operation in many fields bore witness that progress did not mean disunion.

Yet there were many at home, and in Great Britain and the other lands overseas, who were far from content with the trend of events, whowere convinced that the Empire was drifting to eternal smash unless some change in policy should be effected. To some it was Britain's free-trade policy that was the danger; to others it was the steady growth of self-government in the Dominions. Imperial preferential trade, political federation, colonial contributions to a central army and navy, were all vigorously urged as remedies. Not one of these things came to pass in the years under survey, and yet when the testing-time arrived the Empire proved one in heart and soul.

Great Britain's free-trade policy was first called in question. Scarcely ended were the Boer War and the disappointing Conference of 1902 when Mr Chamberlain, fresh from a tour through South Africa, launched his great campaign for imperial preferential trade. Though protection and retaliation later became more important phases of the tariff-reform movement, at the outset it was its imperial side which was emphasized. The colonies and the mother country, it was urged, were certain to drift apart unless bound by links of material interest. Give the colonies a preference on their wheat or wool in Britain, give Britishmanufacturers a real preference in colonial markets, and the Empire would cease to be merely a sentiment.

Once committed to setting up a protective tariff in order to make reductions in favour of such colonies as would reciprocate, Mr Chamberlain and his followers went on to find in it other great advantages. It would aid British agriculture and British industry, would protect both farmer and manufacturer from the competition they were increasingly unable to bear, and would give a weapon for forcing foreign countries to tear down their tariff barriers. The colonial market, the home market, and the foreign market would thus all be gained, and none too soon, if the complete decay of British industry and the triumph of its rivals were to be averted. 'We have reached our highest point,' declared Mr Chamberlain. 'Our fate will be the fate of the empires and the kingdoms of the past.... Sugar has gone, silk has gone, iron is threatened, wool is threatened, cotton will come.... We are no longer first. We are third. We shall be fifth or sixth if things go on as they are at present.... The trade of this country, as measured by the exports to foreign countries and to British possessions,has during the last twenty or thirty years been practically stationary; our export trade to all these foreign countries which have arranged tariffs against us has enormously diminished, and at the same time their exports to us have enormously increased.'

For a time it seemed that the tariff reformers would sweep all before them. Their chief was the most skilful and popular leader of his time. The inevitable growth of other countries in manufacturing had excited the alarm of the British manufacturer, and protectionist sentiment among the landowners, though scotched, had not been killed. The almost universal reign of protection in foreign countries and the other colonies appeared to prove obsolete the doctrines of Cobden and Bright. It seemed that fifty years of unquestioned triumph in England itself had left free trade a traditional dogma, not a living belief. To the poor, tariff reform promised work; to the rich, a shifting of heavy taxation from their shoulders; to the imperialist, the indissoluble empire of his dreams.

Yet the pendulum soon swung against Mr Chamberlain. Investigation showed that his jeremiads were largely unfounded, and gave new life to the principles of free trade. Theywere shown not to be obsolete dogmas, but reasoned deductions from the actual situation of the United Kingdom. Imperial preference meant a crippling tax on food and on raw materials for no adequate return. The share of colonial markets which British manufacturers did not have, for which they could compete, and which colonial producers did not desire to keep themselves, was very small. Mr Chamberlain was stricken soon after with lingering illness, and of the younger men of capacity who came upon the scene practically all were on the side of free trade. The stars in their courses fought against him, for, from 1903 onward, British trade began to flourish as never, or rarely ever, before. In the elections of 1906, though other issues were also factors in the result, the sweeping victory of the Liberals was mainly a triumph for free trade.

In Canada, also, at the outset, Mr Chamberlain's proposals were widely welcomed. He was personally popular. The majority of Canadians believed in protection. Some of those who did not were ready to recognize the value of a preference in the British market. Yet as the full implications of the proposal became clear, and as the British free-trader made good his case, opinion in Canada becameas divided as in Great Britain. It was realized that it was one thing for Canada to give a reduced tariff, leaving the fiscal system protective still, and quite another for Great Britain to abandon entirely her free-trade policy in order to be able to give preferential rates to colonies or to low-tariff foreign states. Canadian manufacturers gave the movement a warm but vague welcome; it soon became clear that Mr Chamberlain was much mistaken in supposing they were prepared to relinquish any corner of the Canadian market to British manufacturers. They declared officially that they would not favour an increase in the British preference even on articles not made in Canada: 'we were not prepared to admit that there was any article that could not at some point in Canada, and in time, be successfully manufactured.'[1] They were, however, fully prepared to give British manufacturers lower rates than American, provided that both rates were high enough. The farmer, who chiefly was to profit, did not appear eager for the boon of a preference in the British market, so far as farm journals and farmers' organizations represented his view. He would be gladto have higher prices for his wheat or stock, but did not want the British workman to pay a halfpenny a loaf to bribe him to remain in the Empire.

To some extent opinion followed party lines. The Conservative party had consistently supported reciprocal preference and opposed the Laurier-Fielding free gift. The Liberals had defended that preference as in itself a benefit to the Canadian consumer, and had deprecated higgling with Great Britain. They would be glad to receive a preference in Great Britain if Britain felt it in her own interest. Convinced believers in self-government for themselves, however, they were willing that the United Kingdom should have the same privilege, and declined to intervene in the British campaign. Mr Borden took the same stand as to intervention; but many of his followers were not hampered by such scruples, and Mr Foster made eloquent speeches in England on Mr Chamberlain's behalf.

The Conference of 1907 was essentially an appendix to the Chamberlain campaign. Imperial preference found vigorous advocates among colonial prime ministers, notably Dr Jameson of the Cape, Mr Ward of New Zealand, and especially Mr Deakin of Australia,whose eloquent appeal was one of the chief features of the Conference. All expressed themselves as not wanting the United Kingdom to set up a protective and preferential system unless convinced it was for her own good; but with more persistence than success they sought to prove that it would be for her good, and especially to show that prices to the English consumer would not be increased, and yet that colonial producers would gain. The representatives for the United Kingdom, ministers in the British Government, fresh from a three-year discussion of the whole issue and backed by the largest parliamentary majority on record, were equally frank in their rebuttal of the arguments advanced and their refusal to lead Britain to commit what they considered commercial suicide. Mr Asquith and Mr Churchill were especially uncompromising; Mr Lloyd George showed more temperamental sympathy with protection in the abstract, but was equally clear that free trade had been proved best for Great Britain beyond question.

Sir Wilfrid Laurier was the doyen of the Conference, the only member present for a third time. He took a less vigorous part than in the previous meetings, letting the youngerlions roar. He had opened the debate by announcing his intention to move again the preference resolutions of 1902, and did so in a brief speech at the close, making his position clear. Canada had given a free preference to British goods deliberately, and had not repented. If it had not done for the British manufacturer all that he would like, more could be done by a system of mutual preference. 'Yet this is a matter,' he continued, 'that is altogether in the hands of the British people, and if they think on the whole that their interests are better served by adhering to their present system than by yielding ever so little, it is a matter for the British electorate. I think the best way of serving the whole is by allowing every part to serve and recognize its own immediate interests.' On his motion the resolutions of 1902—recognizing the value of preferential trade, declaring free trade between the different parts of the Empire impracticable, urging the colonies to follow Canada's example in giving a preference to the United Kingdom, and urging the United Kingdom to consider the expediency of granting a preference to colonial products, either by an exemption from or reduction of duties now or hereafter imposed—were adopted byall the Dominions, the United Kingdom dissenting. Sir Wilfrid laid more stress upon the proposal for an All-Red line of steamers for faster and better service on the Atlantic and on the Pacific, with joint subsidies, urging that the best way to bind the Empire together was to facilitate intercourse. The proposal was received with enthusiasm; yet, though its advocacy was continued by Lord Strathcona and Mr Sifton, little progress was made towards its adoption.

After the Conference of 1907 preferential trade ceased for a time to be a living issue. Social reform, the budget controversy, the struggles with the House of Lords, Home Rule, foreign affairs, in turn took the leading place on the stage. Four years later, at the Conference of 1911, the subject was not even mentioned. The Unionist party was now definitely pledged to protection on manufactures, but the tax on food, essential to effective colonial preferences, had been thrown overboard by a large section of the party. The British farmer was promised land reform instead of protection on foodstuffs. Even Mr Bonar Law, speaking in 1912, declared that he did not wish to impose food duties, and would impose them only if, in a conferenceto be called, the colonies declared them to be essential. This endeavour to throw on the colonies the onus and responsibility of making the Englishman pay food taxes was denounced on every side, and after much shuffling a compromise was reached to the effect that 'if when a Unionist Government has been returned to power it proves desirable, after consultation with the Dominions, to impose new duties upon any articles of food, in order to secure the most effective system of preference, such duties should not be imposed until they have been submitted to the people of this country at a general election.'

Thus, after ten years of ardent agitation for tariff reform, one great party in the state was as resolutely opposed to the scheme as ever, and, while the other was committed to it, the duty on foodstuffs, once declared essential to save the Empire, was made conditional and given second place to protection of manufacturers. It was by no means improbable that the whirligig of time would once more bring to the front food taxes and imperial preference. Yet as far as the early years of the century went, the years within which Mr Chamberlain declared that the decision had to be made, no step towards preference hadbeen taken by Great Britain, and still the Empire drew closer together instead of drifting apart. As a matter of fact, the empire-binding value of tariff preference was greatly exaggerated by its advocates. The Laurier-Fielding preference was a real bond of imperial unity simply because it was a free-will offering, given from motives of sentiment, not of profit. A system of preferences such as Mr Chamberlain advocated might possibly be a good business arrangement for one or all of the countries concerned, but it could have little force as empire-cement. It would be a matter of cold-blooded bargain, on a par with the similar reciprocal or preferential arrangements which the protectionists proposed to make with foreign countries. There would be nothing exclusive about it.

Good came of the agitation. It compelled a bed-rock consideration of British business and social conditions, and proved that if free trade had made possible the production of great wealth, it had not been enough to ensure its fair distribution. This searching inquest was largely responsible for the great series of democratic and social reforms adopted by the Asquith Government, reforms which gave the United Kingdom the world's leadership indemocracy and won fresh sympathy and loyal emulation in the Dominions. In undying words Mr Asquith gave (1909) a definition of Liberalism which awoke immediate sympathy in every Dominion. It expressed in concentrated form ideals which more and more would be the common heritage of all the Empire, particularly in those Dominions, such as Australia and Canada, where all parties are almost equally democratic and progressive:

As regards the Empire, to secure full unity by allowing the greatest diversity and the fullest liberty of self-government in all its parts.

As regards property, to make it secure by divesting it from injustice.

As regards political authority, to make it stable by resting it on the broadest possible basis of popular responsibility.

As regards religion, to remove it from the odium of alliance with political disabilities.

As regards trade, to make it world-wide by opening our own markets here at home to everybody.

And, finally, as regards the liberty of the individual citizen, to make it a reality instead of a sham, by universal education and by an ever-rising standard of humane conditions both in the factory and the home.

We have now to review briefly the discussions which went on during these years inrespect to the political relations of the different states of the Empire. Broadly speaking, two schools or tendencies existed. One favoured the retention of the powers of self-government already acquired by the Dominions and the taking up of still further duties, while at the same time aiming at full co-operation and harmony in matters of essential common interest. The other, declaring that the tendency towards self-government had already gone too far and would if continued lead to the disruption of the Empire, advocated setting up some central council or parliament with legislative and executive control over the whole Empire, within limitations more or less wide. One stood for a free alliance and co-operation, the other for organic or federal union and centralization. These two theories of empire did not, in Canada, become party creeds; but, on the whole, Liberals were sympathetic with free alliance, while centralization drew most of its support from Conservative ranks. On some issues, however, there was an approach to unanimity, and on others the division cut across party lines.

In domestic affairs self-government was almost entirely won. Some survivals of theold colonial subordination remained in the formal inability of Canadians to amend their own constitution and in the appeal from the decisions of Canadian courts to the Judicial Committee of the Privy Council—limitations which had been wholly or mainly removed in the case of the newer Commonwealth of Australia. But the long-contested control over copyright was finally conceded, and the Hutton and Dundonald incidents led to the clearer recognition that if imperial officers entered the military service of the Dominion they were, precisely as in the United Kingdom, under the control of the responsible civil ministers. The provision that the commander of the militia must be a British officer was dropped in the revision of the Militia Act in 1904. In the words of Mr, now Sir Robert, Borden in 1902, words which became increasingly true as years went by; 'Step by step the colonies have advanced towards the position of virtual independence so far as their internal affairs are concerned, and in all the important instances the claim has been made by Canada, has been resisted at first by the imperial statesmen, and finally has been conceded, and has proved of advantage both to the Mother Country and to the colonies.'

In foreign affairs self-government came more slowly, in the face of greater opposition, but still steadily and surely. Its coming was more imperceptible; in fact, many Canadians continued to believe that they had no voice in the control of foreign policy, and made on this very ground a strong plea either for setting up some central authority in which they would have representation, or else for declining to take any part in imperial wars because they had not and could not have a real voice in imperial policy.

This belief was well founded, so far as concerned part of the field of foreign affairs, but it failed to recognize the striking advance made in other areas. We were like M. Jourdain of Molière's comedy, who was surprised to find that he had been talking prose all his life without knowing it. We had been carrying on a steadily increasing part of our foreign affairs without consciously labelling them as such. For to-day foreign affairs are largely commercial affairs, questions of trade and tariff, of immigration and transportation, of fishery or power or navigation rights. And it is largely with contiguous countries that the most important questions arise. Now, as has been seen from the review of relations withthe United States and other foreign countries in an earlier chapter, Canada had come to have all but complete control of such affairs.

In 1909, following Australia's example, Canada established a department of External Affairs for 'the conduct and management of international or intercolonial negotiations, so far as they may appertain to the government of Canada.' In introducing this measure Sir Wilfrid declared: 'All governments have found it necessary to have a department whose only business will be to deal with relations with foreign countries.... We have now reached a standard as a nation which necessitates the establishment of a Department of External Affairs.' On Sir Robert Borden's accession to power one of his first steps was to increase the importance of this department by giving it a minister as well as a deputy, attaching the portfolio to the office of the prime minister. For other purposes special envoys were sent, as when Mr Fielding negotiated trade relations in France and in the United States, or Mr Lemieux arranged a compromise with the government of Japan upon the immigration issue. In these cases the British ambassador was nominally associated with the Canadian envoy. Even this formallimitation was lacking in the case of the conventions effected with France, Germany, Holland, Belgium, and Italy in 1909-10, by negotiation with their consuls in Ottawa. Finally, in the Waterways Treaty with the United States, the international status of Canada was for the first time formally recognized in the provision that the decision to submit to arbitration matters other than those regarding boundary waters should be made on the one hand by the President and Senate of the United States, and on the other by the Governor-General in Council, the Cabinet of the Dominion.

At the close of this period, then, every phase of our foreign relations so far as they concerned the United States, and an increasingly large share of our foreign relations with other powers, were under Canadian control. It remained true, however, that Canada had no voice in determining peace and war. In other words, it was with Britain's neighbours, rather than with Canada's neighbours, that any serious war was most likely to come. Diplomatic policy and the momentous issue of peace or war in Europe or Asia were determined by the British Cabinet. In this field alone equality was as yet to seek. Theconsistent upholder of Dominion autonomy contended that here, too, power and responsibility would come in the same measure as military and naval preparation and participation in British wars. Just as Canada secured a voice in her foreign commercial relations as soon as her trade interests and industrial development gave her commercial weight, so a share in the last word of diplomacy might be expected to come almost automatically as Dominion and Commonwealth built up military and naval forces, or took part in oversea wars.

In this conception the Crown became the chief visible link of Empire. Autonomists believed that 'His Majesty's Government' should remain a manifold power. 'We all claim to be His Majesty's Government,' declared Sir Wilfrid at the Conference of 1907. The Government at Sydney was as much His Majesty's as the Government at Westminster. The Canadian Privy Council was as much His Majesty's as the Privy Council of the United Kingdom. The tendency in the Dominions had been to magnify the powers of the king, who was equally their king, and to lessen the powers of the parliament elected in the United Kingdom. In fact the Crown became, if the metaphor is not too homely for such greataffairs, a siphon which transferred power from His Majesty's Government in the old land to His Majesty's Governments in the Dominions.

It was, however, not enough to have independent control. It was equally necessary, as the other half of the policy of co-operation, to provide means for securing united and effective action. These were provided in many forms. High commissioners and agents-general became increasingly important as ambassadors to London. Departments of External Affairs ensured more constant and systematic intercourse. Special conferences, such as the Naval Conference of 1909 in London, or the several exchanges of visits between the Australian and the New Zealand ministers, kept the different states in touch with each other. But by far the most important agency was the Colonial or Imperial Conference, now a definitely established body, in which Dominions and Kingdom met on equal footing, exchanged views, and received new light on each other's problems. Thus the question of co-operation between the Five Nations became much like the problem which faces any allies, such as those of the Triple Entente, save that in the case of the British Empire the alliance is not transitory and acommon king gives a central rallying-point. Nowhere has this free form of unity, as unique in political annals as the British Empire itself, received clearer expression than in the words of Edward Blake in the British House of Commons in 1900:

For many years I for my part have looked to conference, to delegation, to correspondence, to negotiation, to quasi-diplomatic methods, subject always to the action of free parliaments here and elsewhere, as the only feasible way of working the quasi-federal union between the Empire and the sister nations of Canada and Australia. A quarter of a century past I dreamed the dream of imperial parliamentary federation, but many years ago I came to the conclusion that we had passed the turning that could lead to that terminus, if ever, indeed, there was a practicable road. We have too long and too extensively gone on the lines of separate action here and elsewhere to go back now. Never forget—you have the lesson here to-day—that the good will on which you depend is due to local freedom, and would not survive its limitation.

But to many this trend of affairs was far from satisfactory. They urged that Canada should retrace her steps and take the turning that led to imperial parliamentary federation. This agitation was carried on chiefly in private circles and through the press. One organization after another—British Empire League,Pollock Committee, Round Table—undertook earnest and devoted campaigns of education, which, if they did not attain precisely the end sought, at least made towards clearer thinking and against passive colonialism. Occasionally the question was raised in parliament. Typical of such debates was that of March 13, 1905, when Colonel, now General Sir Sam, Hughes moved a resolution in favour of parliamentary federation. Mr Borden refrained from either opposing or approving the motion, but, as did other members of his party, made it a starting-point for a speech in favour of imperial preference. Sir Wilfrid Laurier declared:

I do not think that it would be possible to find in any of the self-governing colonies any desire or any intention to part with any of the powers which they have at the present time. At present we are proud to say and to believe that the relations of the British Empire, within all its parts, are absolutely satisfactory.... It is not in accordance with the traditions of British history, it is not in accordance with the traditions of the Anglo-Saxon race, to make any change in their institutions until these institutions have been proved insufficient or defective in some way.... The British Empire to-day is composed of nations, all bearing allegiance to the same sovereign.

At the Conference of 1907 it was proposedthat the Colonial Conference be changed into an Imperial Council. This suggestion met support from various quarters, but was blocked by Sir Wilfrid's firm opposition. He agreed heartily that the Conference should be styled Imperial rather than Colonial, but, backed by all his colleagues, opposed any attempt to turn the Conference into a Council, with independent powers and an overwhelming representation from the United Kingdom. In fact the Conference was established more firmly than ever on a basis of equality. The prime minister of the United Kingdom, rather than the colonial secretary, became the special representative of his country, and the Conference was declared to be 'between His Majesty's Government and His Governments of the self-governing Dominions overseas.'

SIR WILFRID LAURIER IN ENGLAND, 191SIR WILFRID LAURIER IN ENGLAND, 1911

SIR WILFRID LAURIER IN ENGLAND, 191SIR WILFRID LAURIER IN ENGLAND, 1911

Left to right—General Louis Botha, Sir Wilfrid Laurier, Mr. Asquith, Sir Joseph Ward

Children standing—Doris Harcourt, Olivia Harcourt

Children seated—Barbara Harcourt, Anthony Asquith

At this Conference, perhaps more significant than anything that was said or done was the presence of General Botha as prime minister of the self-governing colony of the Transvaal. It was only five years since Botha, as commander-in-chief of the Boers who had held out to the last, had laid down his arms. Now he sat in the highest councils of the Empire, saying little, studying his fellow-ministers and the common problems, and impressing all byhis strong common sense and his frank loyalty. His presence there was due to the courage and confidence which had been displayed by Sir Henry Campbell-Bannerman. One of the first steps taken by Campbell-Bannerman's Ministry in 1906 had been to grant to the Transvaal full and immediate self-government without any intervening period of half-freedom. The policy had been a bold one. To a German empire-framer it would have appeared incredible folly. The king had remonstrated against it, the leader of the Opposition had termed it dangerous and reckless, Mr Kipling had hurled sonnets against it. But the Government had stood firm, with the result here seen, and with still greater justification to follow. In this and the following Conference General Botha manifested a special regard for his Canadian colleague, like himself a leader from a minority race. Undoubtedly Wilfrid Laurier's example, Canada's example, counted much in making clear to Louis Botha the path which led to loyal and lasting co-operation.

The centralization policy found a new champion at the Conference of 1911.

Sir Joseph Ward, Mr Seddon's successor as prime minister of New Zealand,submitted some months in advance a proposal for an Imperial Council of State advisory to the British Government, and then, having meantime been persuaded to go the whole road, made a speech in favour of a central parliament. The proposal met with still less favour than before. British, Australian, South African, Newfoundland, and Canadian prime ministers joined in pronouncing it unworkable and undesirable. 'The proposal seems to me to be absolutely impracticable,' declared Sir Wilfrid Laurier. 'It is not a practical scheme; our present system of responsible government has not broken down,' agreed Premier Fisher of Australia. 'The creation of some body with centralized authority over the whole Empire would be a step entirely antagonistic to the policy of Great Britain which has been so successful in the past, and which has undoubtedly made the Empire what it is to-day. It is the policy of decentralization which has made the Empire—the power granted to its various peoples to govern themselves,' added Premier Botha of South Africa. 'Any scheme of representation—no matter what you may call it, parliament or council—of the overseas Dominions must [give them] so very small a representation that it would bepractically of no value,' said Premier Morris of Newfoundland. Mr Asquith summed up:

We cannot, with the traditions and history of the British Empire behind us, either from the point of view of the United Kingdom, or from the point of view of our self-governing Dominions, assent for a moment to proposals which are so fatal to the very fundamental conditions on which our empire has been built up and carried on.... It would impair, if not altogether destroy, the authority of the United Kingdom in such grave matters as the conduct of foreign policy, the conclusion of treaties, the maintenance of peace, or the declaration of war, and, indeed, all those relations with foreign powers, necessarily of the most delicate character, which are now in the hands of the Imperial Government, subject to its responsibility to the Imperial Parliament. That authority cannot be shared, and the co-existence side by side with the Cabinet of the United Kingdom of this proposed body—it does not matter by what name you call it for the moment—clothed with the functions and the jurisdiction which Sir Joseph Ward proposed to invest it with, would, in our judgment, be absolutely fatal to our present system of responsible government.... So far as the Dominions are concerned, this new machine could impose upon the Dominions by the voice of a body in which they would be in a standing minority (that is part of the case), in a small minority, indeed, a policy of which they might all disapprove, a policy which in most cases would involve expenditure, and an expenditure which would have tobe met by the imposition on a dissentient community of taxation by its own government.

Mr Asquith's statement that 'that authority cannot be shared' has sometimes been taken to mean that the United Kingdom could not and would not admit the Dominions to a share in the control of foreign policy. As the context and later action showed, however, it was to sharing control with a new super-parliament that the prime minister of the United Kingdom, in common with the prime ministers of every Dominion except New Zealand, expressed his opposition. Later in the Conference a further, if far from final, step was taken towards sharing control with the Dominions. Upon Mr Fisher's demand that the Dominions should be consulted in international agreements such as the Declaration of London and the conventions of the Hague Conference, it was agreed unanimously that, at further Hague Conferences and elsewhere when time and subject-matter permitted, this would be done. Sir Wilfrid Laurier agreed with this proposal, though stating his view that in such negotiations the United Kingdom should be given a free hand. Some greater share in foreign policy, most nationalists andimperialists alike agreed, the Dominions must possess. The real question was, whether they should seek it through a central body in which they would have a minority representation, and whose functions it was impossible to define without serious infringement of the existing powers of the Dominions, or whether they were to secure it along the line so long pursued, of independence in what was overwhelmingly the prime concern of each separate state, plus co-operation in what was distinctly of common interest.

Hardly had preferential trade as a mooted topic receded into the background when the question of Canada's share in the defence of the Empire came to the front and took on a new urgency and a new interest.

The forces of Canada for land defence had been made much more effective since the twentieth century began. The permanent militia had been largely increased; engineer, medical, army-service, and ordnance corps had been organized or extended; rifle associations and cadet corps had been encouraged; new artillery armament had been provided; reserves of ammunition and equipment had been built up; a central training-camp hadbeen established; the period and discipline of the annual drill had been increased; the administration had been thoroughly reorganized. In 1911 over six times as much was spent upon the militia as in 1896. Though the service was still very far from ideal efficiency, there was no question that it had been greatly improved.

In Canada as in the other Dominions the problem of bringing the military forces into relation with the forces of other parts of the Empire was solved without any sacrifice of the principle of self-government in command or administration. After 1902 little was heard of the proposal to give the British War Office control over a section of the troops of each Dominion. Matters moved rather in the direction of co-operative action. In 1907 it was arranged that each of the larger Dominions should organize a General Staff to act in close touch and to exchange officers with the newly reorganized Imperial General Staff. It followed that equipment and administration became largely uniform. In 1909, and again in 1911, further steps were taken to secure effective co-operation between the General Staffs.

Naval defence proved a harder problem tosolve. A beginning was made. The fishery-cruiser service was extended. In 1905 the Dominion took over the garrisons at the naval bases of Halifax and Esquimalt. The minister of Marine, Mr Prefontaine, took some steps towards the organization of a Naval Reserve, but with his death (1905) the movement ceased. The belief in Britain's unquestioned supremacy, a reluctance to enter 'the vortex of European militarism,' the survival of passive colonialism, kept the vast majority of Canadians indifferent. And, though a persistent minority of enthusiasts called on the country to awake, the unwillingness of the British authorities to sanction Dominion action along national lines blocked the most promising path.

By much effort all the self-governing colonies except Canada had been induced to send annual cheques to the Admiralty. But the total amount was negligible, and no permanent results had been achieved. After fifteen years of contribution not a single Australian had been trained as a sailor. At last, opinion in the Commonwealth took decided shape and demanded immediate national action—demanded the creation of a Royal Australian Navy.

Heretofore Canada had blazed the trail that led from colonialism to nationhood. Now Australia took the lead. The reasons were clear. Canada's chief neighbour was the United States—on the whole, not a militarist country—and there was little fear of military aggression. But commercial intercourse with this neighbour, along a frontier of three thousand miles, was close and constant, making it necessary for Canada to take into her own hands the control of commercial relations. Australia had no such overshadowing commercial relations with any power, but had neighbours in the Pacific—the colonies of aggressive European states, first France and later Germany, and the teeming and awakening powers of Asia—which gave urgency to the question of defence. A Commonwealth which ruled a dependency of its own, in Papua, and shared dominion of the world's second greatest island with imperial Germany (nowhere except in this anomalous, precedent-defying British Empire could any one have dreamt of 'the colony of a colony'), could not long remain indifferent to naval defence. For twenty years discussion of the issue had gone on in Australia, clarifying and precipitating opinion. It was no wonder that Canada, which tried toconcentrate the same discussion into four or five years, years of great economic pressure, proved more confused in opinion and less unanimous in action.

At the Conference of 1907 the Admiralty modified its former policy and suggested that instead of a money contribution any Dominion might 'provide for local service in the imperial squadrons the smaller vessels that are useful for defence against possible raids or for co-operation with a squadron.' The prime minister of Australia, Mr Deakin, welcomed the proposal as a step forward, but on his return to Australia it was still found impossible to reconcile the national aspirations of the Commonwealth and the desire of the Admiralty to control all ships, however provided, and no definite action followed. Canada for the present remained content, having extended the fishery service and garrisoned with her own troops Halifax and Esquimalt. Both parties in Canada agreed in giving no attention to the question. During the general elections which followed shortly after the Conference of 1907, neither Sir Wilfrid Laurier nor Mr Borden said one word about naval defence. Nothing but a dramatic crisis would rouse the people to givethe support necessary to enable either leader to take a decided stand.

The Kaiser provided the crisis. During 1908 and 1909 cries of alarm over the growth of the German navy awoke the United Kingdom and found echoes in Canada. It appeared that Britain's margin of safety was being dangerously lessened, that the Mistress of the Seas had been challenged. The British House of Commons voted eight additional Dreadnoughts and the Admiralty continued to withdraw ships from the ends of the earth and to concentrate the fleet in the North Sea.

Since the eighties international affairs had shown increasing tension. In Europe the struggle for national freedom, which marked the previous era, had in many cases been perverted into an endeavour to impose one nation's will upon another. Not only did France cherish the memory of Alsace-Lorraine; not only did Italy dream of her lost provinces; not only did the Balkan states plot to complete the half-done task of driving out the Turk; but the German Austrian sought to dominate the Magyar and the Magyar the Slav, while Italy swelled with visions of the Eastern Mediterranean once more a Romanlake, and Pan-German and Pan-Slav drew and re-drew the map of Europe to their liking.

But it was not in Europe alone that these nations sought expansion. The belief that empire overseas was necessary to national greatness, and that sea-power was the means to that end, spread through Continental Europe. During the thirty years following 1880 France added three and a half million square miles to her colonial possessions, Germany a million, and Italy a quarter-million. Even the United States was carried away by the current, and Great Britain, already the greatest of colonial powers, picked up nearly four million square miles more. Europe's aggression stirred sleeping Asia, and Japan gave promise of beating her teachers at their own game. This hasty parcelling out of the non-white world brought friction and often threatened war. For years a conflict with Russia was believed inevitable in England. Then France became the inevitable foe. Next Germany took up the rôle. Though felt at fewer points, her rivalry was more serious. A state with the ideals of mediaeval feudalism and the might of a modern industrial nation—with all the wealth and organizing power of industry and science at the disposalof a monarchy based on 'divine right,' and a military aristocracy which moulded and mastered the nation through control of school and press and army—was a constant danger to its neighbours. Germany's aims were more aggressive than those of the western democracies, and its methods were more efficient than those of other European states of no higher ideals. True, the democratic and anti-militarist forces were gaining ground in Germany itself, while elsewhere the folly and waste of militarism were rousing unprecedented efforts towards peace. But no way out was found. It was clearly impossible for one state to disarm while its neighbours armed to the teeth. A few fitful efforts, in which Great Britain took an honourable part, to bring about a concerted halt came to nothing. The world appeared convinced that the only statesmanlike way to avert war was for each state or group of states to make itself stronger than every other state or group. The war of armaments went on unchecked. Europe slept on a powder-mine.

In every Dominion the new sense of peril stirred instant response. If Britain's rivals had counted on the Dominions holding aloof in the hour of her need, or had held theirresources negligible, they were speedily awakened. In Australia, in New Zealand, in South Africa, and in Canada, press and parliament voiced the new realization of danger and the new determination to face it more effectively.

At first the prospect in Canada of speedy and harmonious action was of the brightest. Mr Foster gave notice in the House of Commons of a resolution in favour of Canadian naval preparations, and the leaders of both parties met in private conference and agreed upon the general course to be followed. Late in March 1909 Mr Foster moved his resolution and supported it with powerful and kindling eloquence. He dwelt on the burden which Britain bore alone and the urgent need that Canada should take a more adequate part in naval defence. He opposed strongly the policy of a fixed annual contribution. The certainty of constant friction over the amount, the smack of tribute, the radical defect that it meant hiring somebody else to do what Canadians themselves ought to do, the failure of such a plan to strike any roots, were fatal objections. A Canadian Naval Service was the only possible solution, though for himself he would agree to vote a Dreadnought asa preliminary step. Mr Borden emphasized the need of action, and advocated 'a Canadian naval force of our own.' Sir Wilfrid Laurier declared that Canada must realize to the full both the rights and the obligations of a daughter nation by rising to any sacrifice that might be needed to maintain unimpaired the power of the British Empire, essential as it was not only for Canada's safety but for the civilization of the world. As to the form of action, he opposed being stampeded into any spectacular policy inconsistent with the principle of self-government, and closed by moving a series of resolutions, which, with some changes suggested by Mr Borden, were unanimously accepted by the House. The resolutions recognized the duty of Canada to assume larger responsibilities with growth in strength, declared that under existing constitutional relations money payments to the British Treasury would not be the most satisfactory solution, and expressed cordial approval of any expenditure necessary to promote a Canadian Naval Service to co-operate in close relation with the British Navy.

During the summer a special Conference was held in London, attended by ministers from all the Dominions. Mr M'Kenna, whilerepeating the orthodox Admiralty view that considerations of strategy favoured a single navy, now recognized that other considerations had to be taken into account, and that 'room must be found for the expression of national sentiment.... While laying the foundation of future Dominion navies to be maintained in different parts of the Empire, these forces would contribute immediately and materially to the requirements of Imperial defence.' No wonder that the LondonTimescongratulated Australia and Canada 'on their achievement in having at last educated the Admiralty up to their own point of view.' Unfortunately the convert was soon to backslide, but for the present hearty and ready aid was given in establishing the Dominion naval policy. Australia agreed to form a distinct fleet unit, consisting of a large armoured cruiser, three unarmoured cruisers, six destroyers and three submarines, with auxiliary ships. Canada, not an island like Australia or Great Britain, had two seaboards to protect, ten thousand miles apart. The Canadian representatives, therefore, while agreeing that a second fleet unit in the Pacific would be desirable in the future, requested suggestions, which were given, for the expenditure, first, ofan equivalent and, second, of a lesser amount on two squadrons.

When the Canadian parliament met in January 1910 Sir Wilfrid Laurier submitted the Naval Service Bill, which provided for the establishment of fleets according to the plan finally approved by the Admiralty. The ships were to be under the control of the Dominion Government, which might, in case of emergency, place them at the disposal of the Admiralty, summoning parliament to ratify such action. The bill was passed in March. In the autumn the cruiserNiobe(11,000 tons) and theRainbow(3600 tons), purchased from the Admiralty, reached Canadian waters, where they were to serve as training-ships. Recruiting for these ships was begun and, while not speedy, was reported by the department as satisfactory. The Halifax and Esquimalt dockyards were taken over. Early in 1911 a Naval College was opened at Halifax; and in May tenders were received, ranging from eleven to thirteen millions, from six British and Canadian firms, for the construction, in Canada, of four Bristol cruisers, one Boadicea cruiser, and six destroyers. In June (1911), at the Imperial Conference in London, agreement was reached as to the boundariesof the Australian and Canadian stations. The naval services of the two Dominions were to be 'exclusively under control of their respective governments'; but in time of war any fleet or ships placed at the disposal of the British Government by the Dominion authorities would 'form an integral part of the British fleet and remain under the control of the Admiralty during the continuance of the war.' Training and discipline were to be generally uniform. Dominion ships were to fly the white ensign at the stern as the symbol of the Crown's authority and the distinctive flag of the Dominion at the jack-staff. Then came the reciprocity fight, the blocking of supplies by the Conservatives, and the general elections of September, all intervening before any tender had been finally accepted.

Long before this time, however, the issue had given rise to bitter party controversy. The unanimity of parliament in 1909 had not truly reflected the diversity of public opinion. Mr Borden was not able to carry his party with him. In the English-speaking provinces many Conservatives denounced a Canadian fleet as 'a tinpot navy,' useless, expensive, and separatist, and called for a gift of Dreadnoughts. Mr Borden's lieutenant from Quebec,Mr F. D. Monk, came out strongly against either Canadian navy or contribution, unless approved by popular vote. So, after a loyal attempt to defend the agreement of 1909, Mr Borden found it necessary to change his position. By attacking the Laurier navy as inadequate, and at the same time declaring that no permanent policy should be adopted without an appeal to the people, he endeavoured to keep both wings of his party in line. The opposition in Quebec was strengthened by Mr Henri Bourassa and his following—'Nationalists' in some respects perhaps, but more rightly labelled Colonialists or Provincialists. They dealt a shrewd blow in defeating the Government candidate at a by-election held in November 1910 for Drummond-Arthabaska, Sir Wilfrid's old seat. And, though in all the other provinces the general elections of 1911 were fought on the issue of reciprocity, the navy was made the chief issue in Quebec. Conservatives formed a close working alliance with the Nationalists, who attacked the prime minister as a tool of the English imperialists, and pictured to the habitants the horrors of themarine, of conscription and the press-gang.

A little over a year after his accession topower in 1911, Sir Robert Borden brought down his naval proposals, providing for a gift or loan to Great Britain of three Dreadnoughts to meet the current emergency, and promised to submit later on his permanent policy to the electorate. What that permanent policy would be he did not reveal. It was stated that the Government had not definitely decided against a Canadian navy, but the insistence upon the difficulty of building up a naval organization in Canada, and other remarks, made it appear that some plan of permanent contribution, with a share in the central controlling body, was under contemplation. Sir Wilfrid Laurier vigorously opposed the proposals and adhered to the policy of a Canadian navy. And, not to be outdone in bigness, he now advocated two fleet units. After a prolonged discussion and determined obstruction by the Opposition, the Government introduced the closure and forced the bill through the Commons, only to see it rejected by the Senate on the motion of Sir George Ross, 'that this House is not justified in giving its assent to this bill until it is submitted to the judgment of the country.'

The Government's abrupt change of policy was in part due to the activity of the firstlord of the Admiralty, Mr Winston Churchill. Whether moved by his own impetuous temperament or by the advice of others, Mr Churchill threw overboard the M'Kenna memorandum, and endeavoured once more to revive the contribution policy. He was not content with laying before the Canadian prime minister the opinion of experts on the strategic questions involved, and advising on means to reach the desired end, but sought to influence public opinion in the Dominions by word and act. The memoranda sent at Sir Robert Borden's request in January 1913, emphasizing the difficulty of building battleships in Canada—which was not proposed by the Opposition—and the difficulty of helping to man the two Canadian fleet units—though at the same time men were declared to be available for as many as five Dreadnoughts, if contributed—were preceded by pressure on the Malay States to contribute a battleship, and were followed by Mr Churchill's announcement of his intention to establish at Gibraltar an Imperial Squadron composed of Dominion ships, under the Admiralty's control. When Australia suggested that a special Dominion Conference to discuss the matter should be held in Canada, New Zealand, or Australia,the United Kingdom would not consent. It was made emphatically clear that Mr Churchill was in favour of contribution, not as an emergency but as a permanent policy. It was his doubtless well-meant—and invited—intervention in the dispute, ignoring the principles by which imperial harmony had been secured in the past, which more than anything else stirred up resentment in Canada.

The dispute in Canada turned partly on constitutional, and partly on technical, naval considerations. A Canadian navy was opposed by some as tending to separation from the Empire, and by others as involving Canada in a share in war without any corresponding share in foreign policy. It was defended as the logical extension of the policy of self-government, which, in actual practice as opposed to pessimistic prophecy, had proved the enduring basis of imperial union. The considerations involved have been briefly reviewed in an earlier section. It need only be noted here that the constitutional problem was no more acute in December 1912 than in March 1909. Whatever the difficulties, they had been faced and accepted by all the other Dominions. Australia was irretrievably and proudly committed to herown navy—'His Majesty's Royal Australian Navy'; New Zealand announced her dissatisfaction with the original contribution policy; General Botha declared that South Africa would prefer 'a navy of our own.' Not contribution therefore, but local navies, afforded the only basis of uniformity throughout the Empire. Given this attitude on the part of all the Dominions, there was little question that forms would soon follow facts, and each of the Five Nations be given its due place and weight in settling common issues of policy.

On the more technical issues there was equally wide divergence. A Canadian navy was attacked by some as useless even in the long run. Canada could not build up an adequate naval administration in half a century. Inefficiency and jobbery would mark the navy's management. The sea was one and the navy should be one; concentration at the supreme danger point, defence by attack, were the latest maxims of naval strategy. On the other hand, it was urged that what Australia had done Canada could do, and that the German navy itself had been built up in twenty years. The sea was one, but it was tens of thousands of miles in width;the trade routes required protection, and the coasts must be guarded against sudden raids.

Greater stress, however, was laid on the 'short-run' arguments. That there was only one possible enemy, Germany; that war with her in a few years was inevitable; that when it came Great Britain's fleet would be overmatched, or perilously equalled, were the insistent contentions of one party. That the Pacific required watching as well as the North Sea; that relations with Germany, on Sir Edward Grey's testimony, were improving and war unlikely; that if war came in a few years the naval power of Britain, to say nothing of that of France and Russia, would be overwhelming, was the other party's oft-reiterated answer. It was urged, also, that the Canadian Government's belief in the seriousness of the emergency must be judged by its acts, not its words. Had it believed war imminent and the naval situation so dangerous that its three Dreadnoughts were required, it would unquestionably have been too patriotic to think for a moment of any other course but to bring on a general election in 1913 to override the Senate.

That is now ancient history. The outbreak of the Great War threw the Canadian navalquestion, along with so many greater questions, into the melting pot. The temporary easing of the international situation after 1912 was followed by acute tension again, and this time the restraining forces gave way. The rivalry of Teuton and Slav in the Balkans, where of late the balance had tilted against the Central Powers because of the defeat of their quasi-ally, Turkey, provided the setting. The murder of an Austrian prince by a Servian subject gave the occasion, and Germany set the fatal drama in motion. What part was played in her decision by dreams of world conquest or dread of being hemmed in by ever-stronger foes, what part by the desire of a challenged autocracy to turn the people from internal reform to external policy, will not be certain until the chancelleries of Europe have given up their secrets, if certain then; but, whatever the motive, all the world outside Germany has agreed that had she willed she could have averted the fatal ending of those tense days of July 1914.

When the intervention of the United Kingdom was made inevitable and practically unanimous by the brutal attack on Belgium, Canada never hesitated for a moment as to her attitude. The rights of the immediate issuewere clear; the whole world's liberty was plainly at stake; the struggle promised to task, if not to overtask, every resource of the mother country. Sir Robert Borden acted promptly and effectively, and parliament when called in special session unanimously backed his actions. In a few weeks the largest force that had ever crossed the Atlantic sailed to England, and throughout the war ten thousand upon ten thousand followed. The Dominions surprised the world, and not least themselves, by the greatness and effectiveness of the efforts made in the common cause. At first, distance or over-confidence prevented a full grasp of the crisis by the general public, and even by the leaders of opinion; but, as time went on, the sense of the greatness of the issue deepened, resolution hardened, and the only measures of effort were what the crisis called for and what Canada could give.

The country was united as on few occasions. Here and there undigested groups of immigrants from the enemy lands stood out from the common enthusiasm, but gave little overt trouble. In Quebec some, but not all, of the Nationalists opposed Canada's participation in the war, taking either the belated colonial view that it was Britain's part to fight theEmpire's wars, or the more logical but inopportune view that Canada should not fight in a war when she had had no part in shaping the policy that went before it. They claimed to stand where practically all Canadians had stood a generation before. They forgot that meanwhile the world, and Canada, had moved forward.

The ordeal of battle put to the test the facts and the theories of empire which had been shaping in the years which have been reviewed. The splendid response of the whole Empire to the call of need proved that it was not the weak and crumbling structure that enemies had hoped and zealous friends had feared. Of their own free will the Dominions and even India poured out their treasures of men and money in measure far beyond what any central authority could have ordained. Freedom was justified of her children, and the British Empire proved its right to exist by its very difference from the Prussian Empire. When General Botha and General Smuts, after crushing with ease a rebellion which under a different imperial policy would have been triumphant, led the army of the Crown in triumph against the German dominions to which it had once been proposed to banishthem, they gave a most dramatic proof of the power of the unseen bonds of confidence and liberty.

Yet, as the war proved, the Empire had not yet reached its final stage. Now that the Dominions helped to pay the piper, henceforth they would insist on a share in calling the tune. That the decision as to peace and war must no longer rest solely with the government of Great Britain, however wisely that power had been used in this instance, became the conviction of the many instead of the few. It was still matter for serious debate how that greater voice could be attained, and the conflict between the policy of consultation between existing governments and the policy of creating a new central over-government, which had marked the years before, bade fair to mark the years after the war as well.

The subsidiary question of naval defence had also its after-lights. Those in Canada who had urged the contribution policy had the gloomy satisfaction of seeing their prophecy of speedy war with Germany fulfilled. Those who had urged the policy of a Canadian navy had the more cheerful satisfaction of seeing that the only 'emergency' was that which faced the Kaiser's fleet, bottled up bythe vastly superior allied forces. The battle of the Falkland Islands, redeeming the defeat at Coronel, proved the wide range of action of fast cruisers based on European waters, while on the other hand the raids of theEmdenproved the need of cruisers for defence on every sea; and the exploits of theSydney, sister ship of Canada's unbuilt Bristols, ended all talk of tin-pot navies. The lessons of the war as to ships and weapons and strategy were all important for the reconsideration of the question. Still more vital for the decision as to this and weightier matters were the secrets the future held as to the outcome of the war, as to the future alignment of nations, and, above all, as to the possibility of building up some barrier against the madness, the unspeakable sufferings, and the blind, chaotic wastes of war, more adequate than the secret diplomacy, the competitive armaments, and the shifting alliances of the past.


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