Canada, like the United States and all other Federal countries, has long been faced by questions affecting the relations between the central government and the sub-divisions of the union. These Canadian problems, when studied by an American writer, can be approached with a certain objectivity that adds to their value for purposes of comparison with similar matters on this side of the border. In this spirit, James Maxwell considers unconditional subsidies and conditional subsidies. He is inclined to think that although the latter have fallen short of reasonable expectations, nevertheless they have possibilities for good which have not yet been utilized. The whole discussion merits the closest study on the part of students of contemporary governmental conditions in the United States.