great deal of damage and caused considerable distress to the natives.

Tutuila, Manua and some smaller outlying islands became the property of the United States as a result of the termination of the Samoan condominium, by which Great Britain, Germany and the United States ceased to exercise joint control over the Samoan group, Great Britain withdrawing entirely from the islands, Germany and the United States dividing them. Tutuila gives the United States a naval base in the Pacific with a magnificent harbour, Pago Pago, said to be one of the best in the Pacific, and the only good harbour in the entire Samoan group. The Germans were anxious to obtain possession, but the United States held it under treaty rights, and would not surrender their great advantage. The commerce of the islands is insignificant, amounting during the year to less than $40,000. The Governor is Captain Uriel Sebree, United States Navy.

The territory of Hawaii has offered few problems for serious consideration by the Home Government during the year. Hawaii is on the same basis as the Territories of the mainland,

and is governed in the same way. It has a governor appointed by the President, a Legislature consisting of two Chambers, and a Delegate in Congress, who is without a vote. Practically universal manhood suffrage prevails, the requirements being a year's residence in the Territory, registration in the electoral district, and ability to read and write the English or Hawaiian languages. The currency system is that of the United States. Elections were held in November, the Republicans electing a large majority of the Legislature, and also electing their candidate for delegate in Congress. The delegate, Prince Kalaianaole, is a native Hawaiian and a descendant of the former kings of the island. Politically the Hawaiians, like the people of the United States, are divided into the Republican and Democratic parties. An attempt was made to organise a Home Rule Party, but it met with little success.

The commerce of Hawaii is valuable and constantly growing, practically all of it being with the United States, and all of its imports coming from that country. The finances of the Territory are in good condition, and the Territorial treasury has a substantial cash balance on hand. The American authorities are increasing the school system as rapidly as possible, and the number of native Hawaiian children who now read, write and speak English is gratifyingly large. Vigorous efforts have been made to stamp out leprosy, and the death rate from that scourge shows a marked decrease during the last few years, largely due to improved sanitary conditions and the segregation of the lepers. The Governor of Hawaii is Sanford B. Dole, and the seat of government is Honolulu.

A. MAURICE LOW.

II. CANADA.

The welcome close of the South African War marked the early part of 1902. The two last contingents, despatched within the year, returned without having taken any serious part in the conflict. One fine military performance by Canadian soldiers was reserved for this year to close the honourable record of Canada's part in the Imperial line of battle. On March 31 a small number of Canadians, under Lieutenant Bruce Carruthers, beat off overwhelming odds at Hart's River, showing splendid determination under the most terrible losses. In Canada many mourn their dead; but all alike share in the pride of military work well and bravely done for the Empire.

The Alaska boundary question still remained unsettled. Some disappointment was expressed that this matter was not dealt with when the Clayton-Bulwer Treaty was abrogated.

The Message of the President of the United States was of interest to Canadians mainly in regard to its renewed declaration of the "Monroe Doctrine." The interpretations of this "Doctrine" that emanated from some sources during the year, setting up large and vague claims of dominance over the two American continents, were regarded in Canada with distinct disapproval. The attitude of the United States Government with regard to the Anglo-German dispute with Venezuela indicated a return to the original meaning of the "Monroe Doctrine," to which no exception would be taken in Canada.

The coal strike in Pennsylvania was of great importance to the Provinces of Ontario and Quebec, which are dependent on that region for their supply of anthracite coal-a very vital necessity. The settlement of the strike in October came only just in time to save the two great industrial Provinces from a serious disaster. As it was, coal became scarce and dear, and there was much inconvenience and some suffering. Considerable contributions to the strikers' funds were forwarded by Canadian labour organisations.

The Dominion Parliament opened on February 13. The subject that occupied by far the greatest amount of time and interest during the session was the transportation question. Three important railway bills were brought forward-one authorising the issue by the Canadian Pacific Railway of $20,000,000 additional common stock; another for a charter to the Canadian Northern Railway, granting powers to construct a transcontinental line; and a third authorising the Government to appoint a commission composed of three persons, with large judicial powers, to take the place of the Railway Committee of the Privy Council. In the course of the debates, clear evidence was elicited of the inadequacy of the present railway facilities for handling the Western crops, and the various complaints of the inequalities and excesses of freight rates charged by the

railways clearly indicated the necessity of a strong commission to deal with the complicated problems involved.

The attention of the House was called to the operations of capitalists in the United States in buying controlling interests in competing lines of railway, with a view to consolidation. It was pointed out and admitted that it was possible that such a fate might conceivably overtake the Canadian Pacific Railway system, but the reply was made that foreign ownership was unobjectionable as long as it was controlled effectively by Parliament, which possessed ample powers for the purpose.

The Budget was brought down to the House on March 17 by Mr. Fielding, the Minister of Finance, who, in moving Supply, observed that it was his "happy privilege to present to the House another chapter in the continued story of Canada's prosperity." The revenue for the fiscal year 1900-1 was $52,514,701, as against $51,029,994 in 1899-1900, showing an increase of $1,484,707, which was made up as follows: Customs, $51,136; Excise, $450,190; Post Office, $235,969; Railways, $439,219; Dominion Lands, $129,295; Miscellaneous, $178,895.

The expenditure on Consolidated Fund, Capital, and Special Accounts for 1900-1 showed an increase, as compared with 1899-1900, of $5,265,399, which was thus made up: Consolidated Fund, increase $3,891,088; Capital,-Railways, increase $605,116; Canadian Pacific Railway, increase $8,742; Dominion Lands, increase $69,590; and "Special," - Railway Subsidies, increase, $1,786,608; against Capital,-Canals, decrease, $278,995; Public Works, decrease, $82,843; Militia, decrease, $94,965; "Special,"-South African War and Halifax Garrison, decrease, $638,942. The net increase on Capital and "Special" together was $1,374,311.

The debt on June 30, 1901, was $268,480,003, as against $265,493,806 on June 30, 1900-an increase for the year of $2,986,196.

The aggregate foreign trade of the fiscal year ending June 30, 1902, was $414,517,358, as against $386,903,157 for the year 1899-1900-an increase of $27,614,201.

The exports of domestic produce for the years ending 1901 and 1902 respectively, were as follows:

showing an increase for 1902 of $18,874,125.

The estimated revenue for the year 1901-2 was $56,800,000,

and expenditure $51,000,000.

A Bill was passed granting Mr. Marconi the sum of $80,000

to construct a wireless telegraphic station on the coast of Nova Scotia.

The Government, in answer to inquiries, stated that no progress had been made in regard to the establishment of a fast Atlantic line of steamers.

The session was prorogued on May 15.

Early in June, the Canadian contingent of some 600 officers and men, under the command of Lieutenant-Colonel Pellatt, of the Queen's Own Rifles, left for England to take part in the Coronation ceremonies. In Canada, a general holiday was fixed for the Coronation Day, and every preparation was made for a loyal celebration of the event. The news, received on June 24, of the King's sudden and serious illness was a shock to the whole country. The holiday was cancelled, and every evidence of loyal solicitude and sorrow was shown, and the genuine attachment of the Canadian people to the British Crown once more clearly manifested. The first Coronation contingent returned in July, and at the ceremonies of August 9 their place was taken by a smaller representative force of men.

The Coronation, the illness of the King, the presence in England of so many Canadians, and the various conferences, formal and informal, at which Englishmen, Canadians and other Colonists have met on common ground-all this, following upon the experiences of the South African War, has certainly given a new reality in the minds of the Canadians to their connection with the Empire.

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None the less, the year has brought some disappointments to keen Imperialists in Canada as elsewhere. The cold tone in which the Canadian Government replied (Feb. 23) to the invitation of the Imperial Government to the Colonial Conference, discouraging the discussion of projects of common defence, and Sir W. Laurier's protest in the Dominion Parliament in the spring against allowing Canada to be drawn into the " vortex -or curse"-" of Militarism," prepared the way for the refusal of the Canadian Premier at the Conference to propose any direct contribution from Canada to the Imperial Navy. This line of policy met with a good deal of unfavourable criticism during the year in the Opposition Press of Canada, and though Liberal journals generally made the best of it-as by arguing that there could not be a sharing in the defence of the Empire without a sharing in its controlling councils, and that for that, viz., Imperial Federation, the time was not yet ripe-there is reason to believe that Canadian citizens, generally, are by no means gratified by the Dominion's conspicuous abstention even from the modest kind of participation in Imperial defence to which the other self-governing Colonies have pledged themselves. On the other hand, it is also true that there would have been a much stronger disposition in the Dominion towards participation in the burdens of Imperial defence if Canadian representatives had found it possible to

persuade the public and the Government at home to give Canada some fiscal preference in return for the very substantial preference allowed to British goods in her tariff. On behalf of the British Empire League in Canada, Colonel Denison, its President, an ardent Imperialist, addressed meetings in England in the early spring and summer in favour of a plan for providing an Imperial Defence Fund by preferential duties against foreign goods at all British ports. From a somewhat different point of view a Conference of the Dominion Board of Trade held in Toronto, in June, and dominated by manufacturers with high tariff opinions, passed a resolution strongly urging "that Great Britain can best serve the interests of the Empire by giving the products of her Colonies a preference in her markets as against the products of foreign countries, it being believed that such preference will stimulate trade and develop colonial enterprises, and, moreover, serve to make the Colonies attractive, not only to the large number of British subjects emigrating annually from the British Isles, but also to the surplus population of other countries, and at the same time benefit Great Britain by largely freeing her from dependence upon foreign countries for her food supplies." The failure of the predominant body of British home opinion, official and unofficial, to fall in with proposals of the kind in question-the gravity of the arguments against which from the home point of view were, perhaps, not fully appreciated in Canada-caused distinct disappointment in the Dominion, and the Premier encountered some unfavourable criticism on his return for having agreed to the continuance of the "one-sided" preference of 333rd per cent.-given by the Canadian tariff to goods from the Mother Country. To some extent the hands of the opponents of that preference have probably been strengthened.

On July 26 Lord Dundonald arrived in Canada to take command of the Canadian Militia and received a hearty wel

come.

The remarkable progress of 1901, financial, industrial and agricultural, was more than equalled in 1902. The crops all over the country, even when compared with the preceding phenomenally good season, showed large increases. The total grain crop of the Province of Manitoba was over 100,000,000 bushels, as compared with 85,000,000 in 1901, wheat being 53,000,000 from 2,040,000 acres, as compared with 50,000,000 from 2,011,000 acres. The average yield of wheat in 1902 was twenty-six bushels per acre.

The total product of grain in the North-West Territories for 1902 was estimated at 36,000,000 bushels, as compared with 23,000,000 in 1901. More important even than the increasing quantity of agricultural produce grown in the North-West is the fact of the rapid growth in the immigration of settlers. In 1901 it was estimated that about 50,000 came into the North-West. In 1902 over 100,000 came in. Of that number about 50,000