The coming into power of Mr. King may bring, about important changes in Canada's policies. One such change may be in connexion with relations with the United States. The new Tariff Bill which has just been passed by the United States hits Canada hard, but it may be said to have been already discounted, as it is but an extension of the Forduey Bill, which put heavy duties on Canadian products, and to which Canadians have become accustomed, though not reconciled. The effect really of these high duties has been to make Canada seek for new markets, and to improve her trade with Great Britain and the Overseas Dominions. Thus, at the present moment, a Minister is engaged in making a new trade treaty with France, and another one will start this week for Australia to make one there. It is also said that the new Government in Ireland is most anxious to foster trade with Canada.
AN AWKWARD COAL PROBLEM, In my last letter the very serious condition of Canada with regard to coal was dealt with, and since then matters have not improved. As a consequence of the strike in the United States Canada can expect to receive only 60 per cent. of the hard coal which she requires for the winter and the remainder will have to be made up with substitutes. These substitutes will be Welsh coal, soft coal—either Canadian or American—wood, coke, electricity, oil, gas and an infinitesimal amount of peat. It is not at all a pleasant outlook, for the substitutes, with the possible exception of the Welsh coal, cannot compare with anthracite in heating houses, and the price of them will be about the same, or perhaps. more. The Government has at last come out with a declaration that it will begin an aggressive campaign to make Canada independent as regards her fuel supplies as "the result of this year's serious shortage of coal which has taught Canada a lesson that she is resolved to exploit to the fullest extent."
Text read from the printed page and cleaned; old type leaves the occasional error.