Mr. PAUL MARTIN (Essex East):

Mr. Speaker, I should like to ask the Minister of Finance (Mr. Dunning) whether or not the province of Ontario has signified its willingness to approve or guarantee loans to be made by the federal government to municipalities, pursuant to the Municipal Improvements Assistance Act.

Hon. CHARLES A. DUNNING (Minister of Finance): No.

Mr. T. L. CHURCH (Broadview):

Mr. Speaker, I should like to ask the Prime Minister (Mr. Mackenzie King) a question arising out of the first order of yesterday's proceedings having to do with the resignation of the member for West Calgary, the late leader of the Conservative party, Right Hon. R. B. Bennett. A short reference was made to it about June 30 of last year, but it was expected that the right hon. gentleman would be back here this session. I should like to know if the government would consider setting aside a little time some day this week so that hon. members may have an opportunity to pay tribute to the right hon. gentleman who was leader of the party to which I belong. In view of his lengthy services in and out of the house I think it only fitting that such procedure should be taken and that he be thanked for his services. I should not like to have it said that a prophet is not without honour save in his own country.

Right Hon. W. L. MACKENZIE KING (Prime Minister):

Mr. Speaker, I am afraid

The Address-Mr. Cahan

I was not able to hear everything that was said by the hon. member. I shall read it in Hansard and let him have a reply later.

Hon. C. H. CAHAN (St. Lawrence-St. George):

Mr. Speaker, the speech of His

Excellency the Governor General briefly expresses the views of the Prime Minister (Mr. Mackenzie King) and his colleagues with respect to the new trade treaty with the United States. It speaks of this treaty as "a far-reaching agreement", as "a constructive contribution toward a betterment of world conditions", as "furthering the ends of international goodwill," as a reduction of customs duties and excise "much greater than that made by any previous parliament or by any other country in recent years"; and, finally, as enlarging "the advantages of the agreement concluded in 1935". I do not intend to-day to combat each and every of these specious announcements, but I should like to refer to one or two of them.

In other official pronouncements it has been designated as a policy of appeasement. Last June in the house I made an analysis of the trade of Canada and the United States under the trade agreement then in force, and I showed from the returns brought down by the Minister of Trade and Commerce (Mr. Euler) that the increase of our exports to the United States of commodities, on which there had been no change in the United States customs duties under that agreement, was far greater than the increase of our exports under the schedule of commodities on which the United States tariff was reduced by that agreement. With the permission of the house I should like to place on Hansard a short table of only three lines in which I have brought down the figures to cover the corresponding period of the calendar year of 1938, showing for 1935, 1936, 1937 and 1938 the domestic exports from Canada to the United States, and segregating the value of those commodities exported on which a reduction of duty was made in the United States tariff. If I may be allowed to place the table on Hansard, it would clarify the comments which I may wish to make.

Mr. SPEAKER:

The hon. member may do so only with the unanimous consent of the house.

All right.

Mr. CAHAN:

The figures are as follows:

Domestic Exports from Canada to the United States

Twelve months ended December 31st 1935 1936 1937 1938

Commodities subject tp reduction of duty.. $ 35,723,003 $ 59,281,878 $ 04,582,861 $ 37,975,679 Commodities not subject to reduction of

duty 225,962,369 277,635,071 295,429,282 232,485,510

Total commodity exports, excluding gold.. $261,685,372 $336,916,949 $360,012,143 $270,461,189

Our exports to the United States for the calendar year 1935, the year before that trade agreement came into force, of commodities on which the United States tariff was reduced on January 1, 1936, amounted in value to $35,-

723,000. Our exports of the same commodities during the calendar year 1938 were $37,976,000. In compensation for all the tariff concessions which we made in that year to the United States, comparing our trade for 1935, before the agreement came into effect, with our trade for 1938, we gained merely $2,253,000 of export trade under the reductions of duties made by that agreement.

A comparison of our exports of commodities on which the United States tariff was not reduced shows that, exclusive of gold, our domestic exports to the United States of com-

modifies respecting which there were no reductions in the United States customs duties under the trade agreement which came into force on January 1, 1936, were during the calendar year 1935, $225,962,369, while in the calendar year 1938 the same exports on which no reductions of duty had been made were $232,785,510, an increase in our exports on which there were no reductions in duties of $6,523,141 as compared with an increase of $2,252,676 in our domestic export of commodities on which the United States duties were reduced.

If our prospective advantages from this new trade treaty, which was signed on November 17 last, may be judged by those resulting from the previous agreement signed on November 15, 1935, the new trade treaty offers slight hope

The Address-Mr. Cahan

Mr. SPEAKER:

With the consent of the house.

Mr. CAHAN:

The statement is as follows:

Summary of Trade of Canada with the United States

Calendar years 1935 Exports of gold Imports from United States $312,416,604 Domestic Exports to United States $358,569,736 96,884,364 Excess of Imports over Domestic exportsExports, excluding gold $261,685,372 $50,731,2321936 Exports of gold $369,141,513 $406,664,567 72,747,618 Exports, excluding gold $333,916,949 35,224,5641937 Exports of gold $490,504,978 $470,181,046 110,168,903 Exports, excluding gold $360,012,143 130,492,8351938 Exports of gold $424,754,993 $345,911,915 75,450,726 Exports, excluding gold $270,461,189 154,293,804Total excess of Imports $370,742,430

Our imports of commodities from the United States in the calendar year 1935 amounted to $312,416,604. Our domestic exports to the United States for the same year are given by the minister as $358,569,736, although in fact there is included in that amount of our exports, gold bars to the value of $96,884,364, so that our export of domestic merchantable commodities to the United States was only $261,685,372, showing a real excess of $50,731,232 in our imports over our exports to the United States of merchantable commodities.

I see the Minister of Finance (Mr. Dunning) shakes his head. I defy him to find any inaccuracy in that statement.

Mr. DUNNING:

It was very carefully

worded.

Mr. CAHAN:

I usually try to word my statements carefully and to be accurate.

For the calendar year 1936 the value of our imports from the United States was $369,141,513, as officially given in the returns of the Department of Trade and Commerce, while our exports to the United States of domestic products are given by the minister as $406,664,567, which includes gold bars to the value of $72,747,618, leaving an export of domestic merchantable commodities of $333,916,949, and showing a real trade deficit of $35,224,564 on our year's trading with the United States.

Mr. DUNNING:

Is gold not a merchantable commodity?