Canada and the Canadian Question/Appendix C

The continent of North America is abundantly supplied with economic minerals which are distributed alike through the Dominion of Canada and the United States, and are confined by no international boundary. The British Provinces are as rich in mineral wealth as the neighbouring Republic, with a striking difference, however, in favour of the latter in the matter of development. The industrial situation of the world is changing; the supremacy in iron and steel manufactures hitherto held by Great Britain is about to be transferred to the continent of America. Reports of the late census show that the manufacture of pig-iron in the United States during the last ten years has been extraordinary, and at the present rate of increase that country is destined to become the leading producer of pig-iron in the world, possibly reaching this distinction very soon.

The quantity of pig-iron produced in the United States during the census year 1890 was 250,000 tons in excess of the production of Great Britain during the calendar year 1889, being 94 million tons as compared with 3 millions in 1880 and 2 millions in 1870.

Whereas England supplied in 1878 as much as 45 per cent of the world's production of pig-iron, as against 16 per cent supplied by the United States; in 1889 England only supplied 33 per cent, while the production of the United States had increased to over 30 per cent, and is rapidly growing.

While the production of iron ore in the Lake Superior districts was 5,000,000 tons in 1888 it grew to 7,000,000 in 1889, and in 1890 will exceed 8,000,000 tons.

The United States contain a population of about 65,000,000 and Canada is supposed to contain 6,000,000, so that to be even in the race the Dominion should show one tenth as much as the production ​of her great neighbour, and in this the greatest of all industries should produce annually nearly a million tons of pig-iron.

According to the Government returns, however, Canada produced less than 60,000 tons last year, or not quite one fifteenth of what she should produce to be on a par with the United States in proportion to population.

This disproportion is not the fault of our ores, for Canada possesses a great abundance and variety of iron ores. Sir William Logan, our great geologist, predicted that Canada would become eventually one of the greatest iron producing countries of the world, but for want of a market our iron manufactures have as yet made little progress.

In Nova Scotia near the Atlantic coast are found numerous deposits of iron ore in close proximity to coking coal; these are as well situated as any ores on the continent, and possess all the requirements for cheap manufacture, and being so near navigation, have great facilities for transport.

The manufacturers of Massachusetts and the Eastern States are earnestly urging their Government to admit coal and iron ores free, so аs to enable them to compete with Pennsylvania, and represent that free trade in these articles is highly essential to their welfare.

The United States last year used upwards of 15,000,000 tons of iron ore, and Canada should in like proportion use 1,500,000; but the production of Canada in the same time was less than 90,000 tons. The Canadian production of coal is only about one-fifth of what it should be to make it proportionately equal to that of the States.

Some excellent hematites showing 65 per cent metallic iron, and almost free from impurities, suitable for steel, are found in Nova Scotia, while in other sections are found magnetites and limonites of good quality.

Manganese occurs in numerous places both in Nova Scotia and New Brunswick, some rich enough to be used in glass-making, and a good deal rich enough for spiegel-eisen and steel manufacture.

Although there is no coal in Ontario or Quebec, there are iron ores, both magnetic and hematite, of the finest quality. These ores are generally found in well-wooded districts where hard wood suited to make charcoal abounds, and there are just as great facilities to make cheap charcoal iron as anywhere in America. Estimates show that in well-situated parts charcoal iron might be manufactured for $10 per ton, which would allow a large margin for profit; yet there is not a single blast furnace in operation in Ontario, while the charcoal furnaces in Michigan produced last year about 200,000 tons of pig-iron worth nearly $4,000,000.

Within about 100 miles east of Toronto an iron mine is being developed containing ore giving 68 to 70 per cent metallic iron with practically no phosphorus or sulphur, and suitable to make the finest ​steel. There is a large bed of this ore which, if it were in the States, would doubtless be employing 400 or 500 men and producing several hundred tons per day. This ore is about one-half the distance from Pennsylvania furnaces that the furnaces are from Lake Superior mines; and if such ore as this had free access to the States it would greatly cheapen their steel manufacture, but the duty of 75 cents per ton is a heavy impost.

A leading English iron trade journal lately stated that the principal reason the United States could not make steel as cheaply as England was that their Bessemer ores cost too much, the cost being quoted at $7 per ton in Pittsburgh, Pennsylvania.

But this Ontario ore can be delivered in Pittsburgh for $4 per ton (if there is no duty), which is about as low as the best Bessemer ores cost at English furnaces. If there were no trade restrictions, Toronto, the capital city of Ontario, should be an excellent point for the manufacture of iron and steel. It possesses fully as great facilities for such manufactures as Chicago had thirty years ago, before that city commenced to make iron.

Ores could be laid down in Toronto for $2.50 to $3.50 per ton, which cost $5 to $6 in Chicago; and coke could be obtained from Connellsville, Pennsylvania, as cheaply as in Chicago. But the population of Canada alone is too small and too scattered to support iron and steel manufactures, except at one or two points, of a size sufficient to make them profitable, for experience teaches that small works cannot manufacture nearly so profitably as large ones.

West of Port Arthur on the Canadian side of Lake Superior are found extensive deposits of magnetic iron ore, very rich and suitable for steel making, which are not worked as yet, although from the adjoining districts of Minnesota about one million tons annually are being mined. On an island in Lake Winnipeg is a large deposit of hematite. In British Columbia are numerous deposits of good iron ores, with great facilities for smelting, as coal abounds in that Province. In British Columbia, as in Nova Scotia, coal is found close to the sea shore; the best market for both is in the neighbouring States where a large population requires cheap fuel, and free trade in fuel would be of immense benefit to both countries.

The nickel ores recently discovered in the Sudbury district, on the line of the Canadian Pacific Railway about 300 miles north-west of Toronto, are extremely valuable, and promise to become of great importance. The nickel occurs in magnetic iron pyrites yielding from 1 to 3 per cent nickel, and in some cases as high as 4 to 5 per cent, the ore also often containing a paying proportion of copper. By roasting with charcoal most of the sulphur can be expelled, and it is then smelted with coke, and reduced at the mines to a matte containing about 15 per cent nickel and 20 per cent copper.

​A small proportion of nickel is found greatly to improve the quality of steel, rendering it tougher and stronger. There is no doubt steamships will hereafter be made of nickel steel; and if there were no artificial hindrances to trade much of the manufacture should be carried on in Canada.

Estimates based upon the past increase of production, and taking into consideration the increasing population of the States, show that the probable consumption of pig-iron in the United States will be 20,000,000 tons by the end of the century. The consumption of iron and steel is the index of the industrial prosperity of a nation. Is Canada to share in the wonderful prosperity which will ensue from such an immense consumption of iron on the American continent, or are we to be shut out by trade restrictions?

The discovery of platinum in the Sudbury district also promises to be of some importance, and is opportune in view of the increased demand for that mineral. The production of asbestos in the province of Quebec is rapidly increasing, 4400 tons having been mined in 1888. and upwards of 6000 in 1889, with considerably more in 1890, the value being from $30 to $150 per ton. New uses are constantly being found for this interesting mineral. The demand at present exceeds the supply, and asbestos mining will no doubt be a source of much profit in the future.

The production of phospate of lime (apatite) is also increasing, 30,000 tons having been mined last year against 22,000 the year before. Canadian apatite is a fertiliser of high grade, some of the ore containing 80 to 87 per cent pure phosphate of lime. Phosphate and asbestos are allowed to enter the United States free of duty, and although that country is not by any means the only market for them, the rapid increase in their production shows the benefit a free market gives.

In contrast to this take the item of grindstones, upon which there has been a duty of $1.75 per ton. In 1888 were produced in Canada 5764 tons, which fell to 3404 tons in 1889. Excellent grindstones are found on several parts of the Nova Scotia coast, whence they could be shipped to Atlantic ports in the United States much cheaper than the present cost, but here again the tariff obstructs trade to the detriment of both countries.

There are many copper ores in Canada. Nova Scotia has rich copper glance, and there is cupreous pyrites in New Brunswick and the eastern townships of Quebec, while British Columbia contains some copper ores which often carry gold or silver. There is a great field for industry in the development of our copper ores.

Lead production in Canada suffers severely from tariff restriction. Galena is found in several parts of Canada and baryta often accompanies it, but owing to the small demand in Canada and prohibitory duties in the States, the market is very limited, only 337 tons of lead being ​produced in a year against 180,000 tons during the same time in the States.

British Columbia has many mining districts which produce lead ones rich in silver, now only beginning to be developed.

Already large veins of galena are known which carry 40 to 50 ounces of silver to the ton, and some as high as 200 or 300 ounces A great future is, no doubt, in store for this industry, and there can be as little doubt that the Pacific Province will prove one of the richest parts of the continent. Bismuth has been found in British Columbia, and, if proved to be in quantity, will be of great value, as it has not hitherto been found in commercial quantities in America. In Ontario and Quebec there are many veins of fine white feldspar suitable to make porcelain. The best. Muscovite mica occurs in many places, but is shut out by a tariff of 35 per cent. There is plenty of graphite in Canada, but very little demand for it.

There are many varieties of marble and serpentine; some beautiful white marble suitable for statuary, which is little developed owing to the small Canadian demand and the high American duties.

The same may be said of mineral paints, quantities of which are found, but put to little use. Canada possesses great stores of petroleum. In addition to those in Western Ontario, which are extensively worked, there are large districts in our North-West Territories containing inexhaustible supplies of mineral oil.

The Western part of Ontario has numerous salt wells from which a much larger supply could be produced, and from which many people in the United States can obtain cheaper salt, one of the necessaries of life, if it were not for the duties. In many parts are good qualities of soapstone and in Quebec excellent roofing slates, the production of which could be greatly increased if that commodity were allowed to find its natural market.

Canada has her share of the precious metals. Nova Scotia is annually increasing its gold production; the district west of Port Arthur in Ontario is becoming an important silver producer; and both silver and gold are found in many parts of British Columbia.

From what has been said it will be apparent that although Nature has bountiful to Casola in the distribution of mineral wealth, yet her gifts are deprived of much of their benefit by artificial barriers to trade, which it is to be hoped the good sense of both countries will shortly remove.