Tariffs, sovereignty, regional divides, relations with Europe and the United States. This informative article on Canada’s 1926 election where Mackenzie King’s Liberal’s formed a minority government from one hundred years ago helps to illuminate today’s election.

‘The Significance of the Results of the Elections in Canada’ by Stewart Smith from International Press Correspondence. Vol 6 No. 64. September 30, 1926.

The Canadian general elections of September sound the death-knell of British Imperial domination in her first Dominion. In 1918, Canada became an equal signatory with Britain in the Versailles Treaty; in 1921, supported by the United States, she pressed in the Washington Conference for Article X., giving the Dominion parliaments the right to decide on external conflicts; in 1922, she strongly resented Winston Churchill’s call to arms after the abrogation of the Anglo-Japanese Treaty; in 1923 she concluded a Fisheries Treaty at Washington, without the signature of the British Ambassador; a year ago, she refused to sign the Locarno Pact, and sponsored Art. IX., “The present Treaty shall impose no obligation upon any of the British Dominions or upon India, unless the government of such Dominions or of India signifies its acceptance thereof”; Canada concluded a Treaty with Belgium, her representatives replacing the British Ambassador; she replied to a suggestion that Canada should contribute some millions yearly to the upkeep of a squadron in the British fleet with an Act of Parliament making it impossible for governments, without the consent of Parliament to conclude agreements involving military expenditure; and decided to send a special, permanent representative to Washington. And as if to cap all this, in 1926, with the odds of a smuggling exposure against him, Mackenzie King and his government are returned to office, with the Wall Street Journal loudly acclaiming him the representative of American Finance.

And this, after the whole tradition of “British Democracy” was violated to give his conservative, flag-waving imperialist, opponent, Meighen, the inside of the election track. Lord Byng, the Governor-general did, what no English King has done for a hundred years. And in so doing definitely returned Canada to the position of a “colony”. He refused King the dissolution of Parliament, gave the government to the conservatives, and then granted dissolution. Upon this, the unripe nationalism of the Canadian bourgeoisie matured to full bloom. Its chief spokesman, Bourassa declared:

“Beware of tomorrow! If you allow a Governor-general, a subaltern of the British government to accord or refuse dissolution as he likes and he decides which party shall be out and which Party shall be in, you will wake up to find Downing Street will be the judge in Canada’s political matters.”

White House or Westminister?

Bourassa merely gives voice to the antagonism between the interests of Downing Street and those of the Canadian bourgeoisie. Actually, the political interests of the Canadian bourgeoisie lie much closer to White House than to Westminister. The rapid industrialisation of Canada during the war, and the post-war depression, which brought a large part of Canadian industry under indirect American control, has made Canada, economically, socially and so far as foreign policy is concerned, no more than, (as the U.S. department of Commerce says) “the northern extension of the United States”. Thus, in the question C the Anglo-Japanese Treaty, Canada’s position was virtually that of White House. And still later, at Locarno, Canada saw clearly the possibility of implications with France, and refused to sign. In the eastern questions, this is even more the case. Bourassa assed in Parliament, “have we the same interests in Irak and Mosul as the oil hunters of England have?” And in accordance with the position that King has taken at the Imperial Conferences Since 1923, an Act of Parliament was passed, that “before his majesty’s Canadian ministers advise ratification of a treaty, convention or agreement involving military or economic sanction, the approval of the Parliament of Canada shall be secured”. King’s victory at the polls is a victory for White House and a defeat for Westminister.

Downing Street and Wall Street.

Canada, nonetheless, remains a part in area one-third of the British Empire. Half a million square miles larger than the United States; possessing 537,8 million acres of productive land against America’s 293.8 million; 800 million acres of timber against America’s 500 million; 3,635 millions tons of iron ore on the island of Newfoundland alone, against America’s total 4200 million; one-sixth of the earth’s coal reserve and 90% of the world’s nickel; water-power to supply the industrial demands of one hundred millions of population in this Canada, England sees gigantic immigration possibilities and resultant upon this an enormous trade impetus. In regard to the new interest of British capital in Canada (noticeable particularly in the Midland Bank chairman becoming a director of the Canadian Pacific Railway) the “Morning Post” of Aug. 11th, states, “that policy is necessarily related to the policy of inter-imperial migration”. Already the flow of capital has commenced, and immigration to Canada, according to official reports is 66% higher for the first six months of 1926 than for the corresponding period of 1925. Apart from Canada’s grain, this is her primary importance for England.

On the other hand, for the United States the situation and attitude of Canada is of equal significance. One-fourth of her total foreign holdings are in Canada. She is already dependent upon Canadian timber resources for her pulp wood, and Canadian mines for some of the most important non-ferrous minerals. But of greatest importance is the fact that “within a few year the United States will cease to produce a sufficient supply of wheat and meat to feed it’s own population. The Canadian wheat fields will then become indispensable”. (Nearing and Freeman in “Dollar Diplomacy”). The continuation of Amerika’s prosperous home-expansion is going to depend to a large degree upon the breaking down of the trade boundary to the north. And already in June, 1925, the Bulletin of the National City Bank was urging freer trade with Canada, and bemoaning the high Fordney tariff, and Canada’s duty on grain going to America. This is Canada’s importance for America.

Political Interests in Canada.

But the Canadian bourgeoisie, itself, is a much larger factor than either of these two, having in its possession a preponderating proportion of Canada’s wealth, and there will be no bridging of the gaps between these interests in Canada. By a brief examination of them, the real significance of the election becomes plain.

Britain desires to exclude America from the Canadian market by a high tariff wall, at the same time maintaining her 33% preference on the Canadian market; America seeks freer relations in trade with Canada, and would possibly be willing to offer free trade in natural products, allowing Canada to maintain intermediate tariffs on manufactured commodities. On the other hand, while the American factories in Canada (automobile etc.) are thriving on preferential treatment within the Empire, the cotton, woollen and boot and shoe industries, etc., are in the most vigorous opposition to British preference, which is successfully competing with them.

Meighen is the representative primarily of the large rail. way interests and the British Empire Steel Corporation, but also of the smaller anti-British preference Canadian capitalists. He would raise a high tariff wall against all imports. This would make possible the profitable transport of B.E.S.C.O. coal to central Canada, and would be a severe blow to U.S. coal interests. He would cancel all Empire preference agreements a blow to the American branch factories. And finally, his avowed policy would be to maintain the grain duties, and possibly raise them to guarantee shipment through Canadian ports, and longer haulage for the Canadian Pacific. But even this stolid Orange, imperialist changed his previous slogan of “Ready, Ready”, and declared the decision of a government to enter foreign conflict “should be submitted to the judgement of the people at a general election, before troops leave our shore Even in Meighen, Downing Street finds no true representative.

But King is much more the representative of pure American interests, than those of the Canadian bourgeoisie. Behind his slogan of American reciprocity he has united the right wing of the farmers’ Progressive Party, after splitting them away from the increasingly class-conscious left. His autonomist attitude to British Imperialism has drawn to him the support of the French masses of Canada. And his pose on Old Age Pensions, and the sedition clauses of the Criminal Code, enacted at the time of the Winnipeg Strike, has been a fairly successful bid for the support of the workers. He stands at the same time for Reciprocity with America, and a policy of Imperial Preference. The former in response to a natural economic development; the latter, to secure orders for American “Made in Canada” goods.

“Imperial Influence” in Canada.

In 1911, Laurier refused to accept in entirety, Churchill’s Dreadnaught building plans. “Imperial Influence” was brought to bear upon him. America offered him, what Canadian governments for fifty year had gone begging for to Washington, free trade in natural products and the maintenance of intermediate tariffs on manufactured goods. He was defeated at the polls. Canada was at this time a British possession in the real sense of the term. The English capitalist class had awakened to Canada’s importance.

In 1926, King has over-stepped the colonial bonds a hundred times. In his resolution on military agreements, he has created a dangerous precedent for all of the Dominions. And at the same time has created the basis for a more decisive position at the forthcoming Imperial Conference. In 1926, rather than being defeated, with odds against him, he is returned with a larger majority in parliament than he received at the last election. How will “Imperial Influence” deal with King?

This leads to the fundamental question. Can England check the separationist tendencies of her Dominions across the seas? Can the “far-flung Empire” be held under her political domination? Australia demands the withdrawal of the British governors. South Africa would fly a flag of her own. In Canada, the bourgeoisie demands the abolition of British Preference, the farmers demand reciprocity with America, the French masses declare for independence, the Labour Party calls for Complete “Self-determination”, and the Communist Party, the real party of the masses leads the fight for complete separation, and a Workers’ and Farmers’ government. America’s “peaceful penetration” threatens to develop implications of a different character. The interests of the mature bourgeoisie of the Dominions is incompatible with British foreign policy. The manifest destiny of the Dominions is separation from the Empire.

International Press Correspondence, widely known as”Inprecorr” was published by the Executive Committee of the Communist International (ECCI) regularly in German and English, occasionally in many other languages, beginning in 1921 and lasting in English until 1938. Inprecorr’s role was to supply translated articles to the English-speaking press of the International from the Comintern’s different sections, as well as news and statements from the ECCI. Many ‘Daily Worker’ and ‘Communist’ articles originated in Inprecorr, and it also published articles by American comrades for use in other countries. It was published at least weekly, and often thrice weekly. Inprecorr is an invaluable English-language source on the history of the Communist International and its sections.

PDF of full issue: https://www.marxists.org/history/international/comintern/inprecor/1926/v06n64-sep-30-1926-Inprecor.pdf