Almost as important to Canada as her railways are her canals and her waterways. In 1897, on the accession of the Liberal Government to office, it was determined to deepen the St. Lawrence canals and enlarge the locks sufficiently to allow the passage from the great lakes to the sea of vessels { 419} drawing not more than fourteen feet of water. These canals afford a through water route, with a minimum depth of fourteen feet, from Montreal to Port Arthur on Lake Superior, a distance of 1,223 miles, 73 of which are by canal. The total expenditure of the Dominion on canals up to 1919 amounted to over $127,000,000.
Alongside the improvement in the means of communication--railways and canals--has gone a considerable growth of Canadian manufacturing industries. The iron and steel industry was scarcely in existence at Confederation. The Marmora plant at Long Point, Ontario, and a smaller plant at Three Rivers, Quebec, had been in existence since the forties; but the iron and steel industry, as it exists to-day in Canada, is largely the creation of the national policy of protective tariffs and bounties. The bounty system was instituted in 1883, chiefly for the benefit of a blast furnace of 100 tons capacity at Londonderry, Nova Scotia, which was then in difficulties. Besides this furnace, only two others--charcoal furnaces with an aggregate capacity of fifteen tons, at Drummondsville, Quebec--came on the bounty list in 1884. In 1897, when the Liberals came into office, furnaces had also been erected at New Glasgow, Radnor, and Hamilton, and the aggregate daily capacity of the furnaces of the Dominion was then 445 tons.
At the revision of the tariff in 1897 the bounty system was greatly extended, and under its aegis two great modern iron and steel plants--one at Sydney, N.S., and one at Sault Ste. Marie, O., came { 420} into existence. Modern furnaces have also been established at North Sydney, Hamilton, Welland, Midland, and Port Arthur, and in 1908 the output of pig-iron from all these plants was a little over 600,000 tons. A large proportion of this pig-iron is converted at the Sault Ste. Marie and the Sydney plants into steel rails, for which the constant extension of the railways furnishes a steady market.