and of transport as well as by improvement in the manufacture of the finished product. As a consequence, energy in the colony was drawn into the production of the staple commodity both directly and indirectly. Population was involved directly in the production of the staple and indirectly in the production of facilities promoting production. Agriculture, industry, transportation, trade, finance, and governmental activities tend to become subordinate to the production of the staple for a more highly specialized manufacturing community. These general tendencies may be strengthened by governmental policy as in the mercantile system but the importance of these policies varies in particular industries. Canada remained British in spite of free trade and chiefly because she continued as an exporter of staples to a progressively industrialized mother country.