Trade within the Empire.  All the other self-governing States are in favour of it.  The United Kingdom alone blocks the way.  What does that mean?  What is it that we risk losing as long as we refuse to accept the principle of Preferential Trade, and will certainly lose in the long run if we persist in that refusal?  It is a position of permanent and assured advantage in some of the greatest and most growing markets in the world.  Preference to British goods in the British dominions beyond the sea would be a constant and potent influence tending to induce the people of those countries to buy what they require to buy outside their own borders from us rather than from our rivals.  It means beyond all doubt and question so much more work for British hands.  And the people of those countries are anxious that British hands should get it.  They have, if I may so express myself, a family feeling, which makes them wish to keep the business within the family.  But business is business.  They are willing to give us the first chance.  But if we will give nothing in return, if we tell them to mind their own business and not to bother us with offers of mutual concessions, it is only a question of time, and the same chance will be given to others, who will not refuse to avail themselves of it.

You see the beginning of the process already in such an event as the newly-concluded commercial treaty between Canada and France.  If we choose, it is still possible for us not only to secure the preference we have in Colonial markets, but to increase it.  But if we do nothing, commercial arrangements with other nations who are more far-sighted will gradually whittle that preference away.  To my mind the action of Canada in the matter of that treaty, perfectly legitimate and natural though it be, is much more ominous and full of warning to us than the new Australian Tariff, about which such an unjustifiable outcry has been made.  Rates of duty can be lowered as easily as they can be raised, but the principle of preference once abandoned would be very difficult to revive.  I am sorry that the Australians have found it necessary in their own interests to raise their duties, but I would rather see any of the British Dominions raise its duties and still give a preference to British goods than lower its duties and take away that preference.  Whatever duties may be imposed by Canada, Australia, or the other British Dominions, they will still remain great importers, and with the vast expansion in front of them their imports are bound to increase.  They will still be excellent customers, and the point is that they should be our customers.