There is always a certain presumption that colonials, partly from
tradition, and partly from commercial patriotism, will deal with their
home country. The merchant in British colonies is familiar with
British firms and trademarks and rather resents the necessity of
becoming acquainted with foreign wares and the standing of foreign
merchants. Prices being equal, we patronise the people we know and
like. Investment also leads to trade. The Englishmen who control the
vast resources of India, tend, without compulsion, to buy of British
merchants. The possession of even a free-trade colony often insures
the retention of its most profitable commerce.

It is true that this presumption in favour of the home {102} nation may
be overborne. Lower prices, better service, a more active and
intelligent business propaganda may divert trade to foreign merchants.
Before the war, German manufacturers found an increasing market in
British colonies, overcoming colonial prejudice as they overcame the
prejudice in Great Britain itself. Geographical nearness is even more
decisive. Thus Canada is economically far more closely bound to the
United States than to England. In 1913-14 we sold Canada $3.11 worth
of goods for every dollar sold by the United Kingdom.[2] To Jamaica
our exports exceeded those of the United Kingdom, while our imports
from the island were over three times as great as the British
imports.[3] The United States profits far more immediately from the
economic development of Canada and Jamaica than does the United
Kingdom.[4]

In the main, however, even under free trade, subtle influences are
constantly at work to bring the colony into closer commercial relations
with the home country. Thus in 1913-14, 64 per cent. of the imports of
British India came from the United Kingdom, and other British
dependencies showed a similar preponderance of trade with Great
Britain.[5] The volume of the entire traffic between the home country
and its colonies is overwhelming. In 1914, the United Kingdom imported
from British {103} possessions no less than L205,173,000, or over 29
per cent. of its total imports, and exported to these British
possessions L179,350,000 or almost 42 per cent. of its total exports
(of British produce).[6] This trade, which is increasing faster than
the total trade of the United Kingdom, is peculiarly valuable. From
her overseas dominions Great Britain secures a far larger proportion of
food produc