IMAGE EVALUATION TEST TARGET (MT-3) 1.0 1.1 1.25 Li 128 mm 2.5 ■ 22 I 1^ |2.0 It u tt«b w =^ Hiotograiiiic Sciences Ckjrporation 23 WBT MAIN STRHT WnSTn,NY. USM (7I«)I72-4SC3 '^% <^<^ ^ .^ CIHM/ICMH Microfiche Series. CIHJVl/ICMH Collection de microfiches. Canadian Institute for Historical Microraproductions / Institut Canadian da microraproductions historiquas :V i«^ ©1984 Technical and Bibliographic Notas/Notaa tachniquaa «t Mbliographiquas Tha Inatituta haa attamptad to ohtain tha baat original copy availabia for filming. Faatur«a of thia copy which may ba bibliograpkiicaNy uniqua, which may altar any of tha imagaa in tha raproduction, or which may aigniflcantly changa tha usual mathod of filming, ara chacltaid balow. □ Colourad covara/ Couvarti^ra da couiaur I — I Covarft cSamagad/ D D n n D Couvartura andommagAa Covara raatorad and/or laminatad/ Couvartura raataurte at/ou pMlllcuMa I — I Covar titia miaaing/ La titra da couvartura manqua □ Colourad maps/ Cartas gAographiquaa an couiaur Colourafi inic (l.a. othar than blua or blacic)/ Encra d« couiaur (i.a. autra qua blaua ou noira) □ Colourad plataa and/or iliuatrationa/ Planchaa at/ou iliuatrationa wn couiaur □ Bound with otiiar matarial/ Rati* avac d'autraa documanta Tight binding may cauaa shadows or distortion along intarior margin/ La r« liura aarrte paut causar da I'ombra ou da la diatortion la Irng da la marga intAriaura Blank laavaa addad during raatoration may appaar within tha taxt. Whanavar poaaibia, thaaa hava baan omittad from filming/ ii aa paut qua oartainaa pagaa trfanchaa aJoutAaa lora d'una raatauration apparalaaant dana la taxta. maia, loraqua cala Atait poaaibia, caa pagaa n'ont pas 4t4 filioAas. Additional eommanta:/ Commantairaa aupplAmantairaa: L'Inatitut a microf Hm* la maillaur axampiaira qu'il iui a At4 poaaibia da sa procurar. Las details da eat axampiaira qui aont paut-ttra uniquaa du point da vua Mbliographiqua, qui pauvant modifier una image raproduite, ou qui peuvent exiger une modification dana la mAthoda normale da fiimage aont IndiquAa ei'deaaoua. r~1 Colourad pages/ iPagea da couifiur Pagaa damaeed/ Pagaa endo'nmagtea Pagaa raatorad and/oi Pagea reataurtkaa at/ou peilicuMes Pagaa diaeoloured, stained or foxei Pagee dAcolorAaa, tachattes ou piquAes Peges detached/ Pages dAtechAes Showthroughy Transparence Quality of prin QuaUti inAgala de I'impreaaion Inciudea aupplementary materii Comprend du matirfel suppMmentaire Only edition available/ Seule Mition diaponibia r~1 Pagaa damaeed/ pn Pagaa raatorad and/or laminated/ EPegea diaeoloured, stained or foxeci/ Pagea I I Pagea detached/ rpi Showthrough/ p~l Quality of print variaa/ pn Inciudea aupplementary materiel/ I — I Only edition available/ D Pagee wholly or pertially obacured by errata alipa, tiaauea, etc., hava been refiimed to enaure the beat poaaibia image/ Lea pagee totalament ou partieltament obacurciea par (m feuWet d'jrrata. une pelure, etc ont *t4 fUmAea i nouveau de fa^on A obtanir la malHeure image possible. 1 a 1 V d a b ri n n Thia item ia filmed at the reduction ratio checked below/ Ce document eat filmA au taux de rAduction hfidlquA d'de a aput. 10X MX itx nx aix NX ^ 12X itx am MX »x »x ■ Tht copy film«d h«ra has lM«n r«produe«d thanks to th« o«Mr(Mhy of: Library of tha Public Arehlvas of Canada L'axampiaira filmA f ut raproduit grica i la 0*n4rosit* da: La bibliotMqua das Arehlvas publiquas du Canada Tha imagaa appaarlnfi hara ara tha bast quality poaaibia aonaidarlng tha eondltion and laglbility of tha orlfllnai copy and In kaapino wUh tha filming contract spaolf loationa. Original coplas In printad papar covara ara fUmad baginning ¥vlth tha front covar and anding on tha laat paga wdth a printad or IHustratad Impras- sk>n, or tlw back covar whan approprlata. AN othar original coplaa ara fNmad baginning on tha first paga with a printad or IHustratad impras- sion, and andIng on tha laat paga with a printad or iiluatratad lmpraask>n. Las Imagaa suh/antas ont 4t* raproduitas avac la plus grand soin, compta tanu da la condition at da la nattat* da i'mamplaira film*, at an conformM avac las conditions du contrat da filmaga. Laa axamplairas originsux dont Is couvertura an papiar aat imprim^a sont nimAs an commenpant par la pramiar plat at an tarminaiit soit par la darnlira paga qui somporta una amprainta d'Impraasion ou d'iHustrstlon, soit par Is sacond plat, aakm hi cas. Tous las autras axamplairas originaux sont filmAs an commandant par la pramlAra paga qui comporta una ampniinta dimprassion ou d'illustration at an tarminant par la damlAra paga qui comporta una taila amprainta. Tha laat racordad frama on aach microflcha ahaN contain tha symbol "^ (maaning "CON- TINUiD"). or tha aymbol ▼ (maaning "END"), Un daa symboiss suhrants apparattra sur is damiAra imaga da chaqua microfioha, ssion la caa: {• aymbola -^> aignHIa "A 8UIVRE", la aymbola y signifia "FIN". Mapa. piataa, eharta. ate., may ba fNmad at diffarant raduetlon ratkM. Thoaa ton largo to bf/ antlraiy Inchidad In ona axpoaura ara fNmad baginning hi tha uppar kift hand oomar. loft to right and top to bottom, aa .iiany framaa as raqulrad. Tha foNowkig ittagrama iHustrata tha mathod: Las cartaa. pianchas, tablaaux, ate, pauvant Atra fHmda A das taux da reduction diff Arants. Loraqua la document ast trap grand pour Atra raproduit an un saul ciichA, 11 aat filmA A partir da I'angki aupAriaur gaucha, da gaucha A droKa. at da haut an bas, an pranant la nombra d'imagaa nAcassalra. Las diagrammas tjivants INustrant la mAthoda. 1 2 3 1 2 3 4 5 6 OSWEGO BOABD OF TEAM RECIPROCITY ■WITH riM lorth %mtxm VINDICATED. OSWEGO : JAB. N. BBOWN, PBIHTEB. 1860. ^mpmtt) Miitb ^t^tfeb ^^xtk ^mmm. The Committee of tbe Oswego Board of Trade, to whom was referred the subject of tho Treaty of Reciprocity with Great Britain and her North American Provinces, together with the Proceedings of the Board of Trado of Chicago thereon, beg leave to Report : That they have examined the Report of the Hon. Israel T. Hatch to the Treasury Department, which prompted tho action of the Chicago Board of Trade, and which has brought tho subject of tho Treaty before the public for discussion. Your Committee premise that they have found it difficult to imagine why this Commission of Mr. Hatch and Mr. Taylor, was instituted by the Department without any popular call or legislative pi'omptiug, at a time, too, when tho Treaty was vindicating its own merits, and was appa- rently satisfying all parties. Mr. Hatch's labored and protracted investigation results in his own conviction that all tho benefits of this Treaty inure to the British Provinces, while it inflicts great injuries upon the United States ; that its operation is unequal and unjust, containing no single element of Reciprocity. And to crown all, Canada, in his opinion, has violated the Treaty. To enforce and fortify these conclusions, Mr. Hatch has elaborated his Report in a pamphlet of forty-six pages. Mr. Taylor makes a brief Report to the same Depart- ment, with different results. He believes the Treaty confers reciprocal benefits upon both, or all the contracting parties, and that its provisions have been violated by none. Your Committee concur in opinion with Mr. Taylob, and hope hy a brief, but careful examination of the provisions and working of the Treaty, to OBtablish the fact that its benefits are reciprocal and universal, so far as their opera- tions extend. Before entering upon the discussion of this Treaty, a brief allusion to the former commercial relations of Great Britain and the United States, will be appropriate. The famous Navigation Laws of Great Britain are familiar to commercial men. Their origin was in 1651, their object, the monopoly of her own trade and that of her Colonies, to the exclusion of all other Nations. By their operation she drove Holland, her principal rival, from the Ocean during the last century ; and when by Treaty she acknowledged our Independence, she applied the system to us in all its rigor, subsequently modified a little by an occa- sional Treaty, relaxed and enforced by orders in Council, as the exigencies of war, famine, or plenty, dictated. Her utmost skill was exerted to cripple and restrict our trade, and ours to counteract and defeat her measures. We fol- lowed her enactments step by step, by retaliation and sharp reprisal, down to 1849, when, instead of driving us from the Ocean, as had been the fate of Holland, we had, under this damaging warfare, well nigh divided the trade of the world with her, having at the present time attained equal tonnage with the mistress of the seas. In 1849, Sir Robert Peel swept these ancient and odious Navigation Laws from the British Statutes, with the exception of some slight remnants. Our retaliating mea- sures fell with them, — we having enacted a law in the early part of the present century, tendering reciprocal free trade to all, and under it, had formed Treaties of Commerce with several European Nations. Sir BoBEBT yielded this conflict in the most gracious manner possible. While abrogating her Navigation Laws and her long cherished Corn Laws, Great Britain opened her ports to the admission of most of the raw materials for manufactures, and all agricultural products, free of duty, other than nominal duties, to preserve a record of trade ; demanding no equivalent, and stipulating for no relaxation of restrictions or duties in return for this boon. Another commercial movement in the same direction preceded this two years. In 1847, Great Britain withdrew her protection of the trade, and her pupilage over her North American Colonies, withholding her bounty or dis- criminating duty on Colonial products, and pn trade through the St. Lawrence, with the exception of square timber, (which till the last year enjoyed a greatly diminished bounty or protection, now wholly withdrawn) ; Canada was left free to regulate her own trade, and construct her own tariff. Availing herself of her newly acquired power, she raised the duty on British manufactures from 5 to 7^ per cent, and reduced duties on our manufactures from 12 to 7^ per cent., thus abolishing differential duties. She also tendered us by legislation, reciprocal free trade in all the commodities of the two countries, which we did not accept. Such was the condition of things in Great Britain and her American Colonies, and such our relations with both in 1854, when the Treaty of Reciprocity was negotiated and ratified, each province being a party, and ratifying for itself. This Treaty provides for the free navigation of the St. Lawrence, Lake Michigan, and the Canals of Canada ; abro- gates the restrictions on the Fisheries, and exempts from duty the following natural products, viz : of the Sea, of Mines, of the Forest, of Animals and their products, and of the Soil. It is not alleged, so far as regards the free articles of the Schedule, that the Treaty has not been carried out in good faith by all parties ; but Mr. Hatch avers that it has been violated in spirit and letter by Canada, in her tariff of duties 6 on our manufactures, and on foreign products which she haa been accustomed tv> purchase in our markots, and also in circumventing our Debenture Laws, and in thwarting our restrictions on Lake coasters. Your Committee will address themselves to these i^itVactions of the Treaty before they examine its working aad its merits. TREATY VIOLATED. Mr. Hatch says, a treaty broken is a treaty no longer ; and proceeds to show that Canada has violated this Treaty by raising her tariff of duties on our manufactures (from 12 to an average of 16 per cent, according to Mr. Taylor), and also by protective and discriminating duties, intended to shut out our manufactures from her markets, and divert our trade from its accustomed channels. This being the great feature of his Report, has been sedulously labored and skillfully elaborated through many pages of the work. Canada, like the State of New York, has embarked in an expensive system of Canals, without much regard to revenue. Both parties, and both systems were avowed rivals, and competitors fur the same trade, viz : the trade of each other and the trade of the West beyond and remote from both. New York in this sharp competition has embarrassed her- self, and has been driven for relief to direct taxation ; but for the Federal Government standing in her way, she would have sought this relief in the more secret and insidious method of taxing imports and consumption. Canada has even outdone us in extravagance and improvi- dence, and has well nigh swamped herself ; not only by her unproductive Canals, but she too, like ourselves, has com- mitted the folly of subsidizing her railroads ; not like us, to the tune of three or four, but twenty millions, and all hope- lessly sunk. She must seek relief in revenue or repudiation. More fortunate than New York, the Imperial Government having left the door wide open for indirect taxation ; she has taken a leaf from our federal book, and imposed taxes on imported manufactures, and other products, almost as lioavy as our federal impositions. Hers average, according to Mr. Taylor, 16, while ours average 21 per cent., ours being still some 25 per cent, higher than hers. She har also copied another feature from our book, that of protection to domestic indus- try, to render herself independent of both Old and New England. Of her revenue tariff, prompted by poverty, wo have no right to complain. Protection is a problem for her to solve. Whether it is wise for a young people, like Canada, with illimitable forests, an ample and growing market at her door for her sawed lumber, and an unlimited market across the Ocean for her squared timber, with a soil productive of bread, and in England * and the Lower Colonies an ample market, whether it reaches them through the Hudson or the St. Lawrence ; with labor dear, and capital scarce ; whether it is wise for such a people to s-^ek a change of industry by copying from Old or oven Now England, time must demon- strate. Mr. Hatch not only charges the infraction of the Treaty upon this tariff, but represents it as a breach of faith, an act of ingratitude after receiving tho benefits of the Treaty, and p groat wrong inflicted upon us. It should be recollected that Canada suddenly awoke from her splendid dream of monopoly, to find herself loaded with a debt of fifty million of dollars, sixteen of which was sunk in the crowning folly of tho Grand Trunk Railway ; with an annual deficit of four millions of revenue. It mat- ters little to us whether she imposes this deficit upon her consumption, including our manufactures and those of Great Britain, or whether she raises the required revenue by direct taxation, both impoverish her alike, and lessen her ability to purchase and consume our products. But Mr. Hatch presses this grievous wrong and imposition into his an service with skill and industry, reiterates the charge with every variety of expression, such as " taxing our labor to build works to rival and rob us of our commerce ;" " by imposing extraordinary taxes upon the products of American industry, she is compelling us to bear her burdens, created to sustain gigantic rivalries, worthy of Imperial ambition, for supremacy by land and water over our inland commerce, and for the grave influence which thus may be exercised upon our political career, " leaving the impression that we are a greatly injured Nation, and that too, by a people on whom we have just bestowed boundless benefits. In pushing his complaints so far, he has betrayed Mr. Ely into the avowal in his Congressional speech, thcU we pay these duties, not Canada, The plain English of all this declamation is, that Canada takes three or four millions of our fabrics and products for consumption, imposing upon herself through her tariff, a heavy duty. England, too, is subjected to the same imposition and the same sufifering, and bears it with becoming equanimity, and would willingly relieve " the fruits of our industry," as Mr. Hatch has it, from these impositions, by furnishing these three or four millions herself, to be taxed as best suits the interest or theories of Canada. We desire to treat Mr. Hatch with the respect due to his talents and his position, but if he will indulge in clap- trap he must not ask us to treat it with the gravity of an argument. If it is a great wrong to impose duties on our manufac- tures, it must be right to protect and fabricate them for herself, yet here, too, Mr. Hatch finds a fruitful topic of complaint. Here lies the sum and substance of the infrac- tion of the Treaty. The parties agree to exchange bread and meai without duty, and forthwith Canada raises Ler- dnty on cotton fabrica and wUahy which were not embraced in tiie free Schedule. Had Mr. Mobrel's bill passed Congress, raising duties and imposing specific and protective duties on similar arti- cles, we too, should have come under Mr. Hatch's charge of Treaty breakers. Although a union exists between Oanada East and Canada West, there is not harmony. The Lower Province found when the staple and other natural products of Upper Canada were relieved from duty, and from the formalities and expenses of our debenture bonds, that a strong impulse was given +0 her trade with us, and through us with the Lower Provinces and Great Britain. To counteract this tendency, and force her trade and allure ours to the St. Lawrence, the undue power of Lower Canada, which was paramount in the union, was called into requisition, and arrayed (.gainst Canada West and our channels of trade. The gratuitous use of her locks and canals was tendered to the trade of the St. Lawrence, and her discriminating duties were shaped to promote it. This Legislation, unfriendly and unwise, as your Committee believe, has well nigh proved abortive. The Montreal Herald reports the arrival to Sept. 27th, 1854, (thefirst year of Reciprocity), 258 vessels, tonnage 71,072 ; and 1860, 140 vessels, tonnage 82,460, and this is the port at which the provincial trade centers, with the exception of the timber trade of Quebec ; no more than a natural increase of trade without the effect of discrimination. Mr. Hatch's remedy, or retaliation for this hostility from one-half of one of these five contracting parties is, to abro- gate the Treaty with all ; revive our duties, retire from the St. Lawrence, withdraw our debenture facilities from Upper Canada, and thus com/pd her to trade through the St. Law- rence, playing into the hands of Lower Canada, a system of non-intercourse, which would reduce a trade of more than forty to less than ten millions again. 2 ■ix -0 We cannot, in justice to bur citizens and our creditors counteract these measures hy the gratuitous use of our locks and canals ; but your Committee believe sound wisdom dictates that we cherish free trade with all the Provinces ; counteract their protective and discriminating policy by continued and increased facilities in our own, and to other markets through our channels. "We would drive them from the forge and the anvil, to the forest and the saw mill, by buying their boards ; and from the spindle and loom, to the plough, by transporting its products through the cheapest channel to the best market. A little patience and good temper on our part will set a]l right. Canada West with her fine climate, rich soil, and com- mercial capabilities will grow populous and rich, and soon assert and maintain her rights, and under a liberal and just policy, minister largely to our prosperity. She is already taking efficient measures to reform the (government and secure the power due to her population. CANAL AND RAILWAY RIVALRY. Mr. Hatch inculcates the theory with zeal and industry, ^]nt the two Canadas, the British capitalist, and the Impe- rial Government, have combined to monopolize the trade of the far West, by means of Canals and Railroads, without regard to income oi profit. The same theory has been widely propagated by our Railroads, and great merit claimed for counteracting this gigantic monopoly. Mr. Hatch says, page 34 : " The changes to be produced by this grasping monopoly will l)e developed with the rapidity characteristic of modern times. They will include the whole system of our commercial industry." Again, page 35, " This vast commercial struggle where monopoly is the end to be gained, must terminate in a colossal combination of American capital and ability, or the I •IK' ■'9 M iris u field must be abandoned to their Royal rival." Here we have eloquent declamation to propagate a bald fiction. Canada, one of the British Provinces, has inaugurated a system of Canals with her own means, and her own credit, " out of all proportion to her wants," as Mr. Hatch avers, looking to the trade of the W^st. New York, one of the United States, has done precisely the same thing, the magnitude of her works is out of all proportion to her wants. The Railroads of both Canada*, and New York are constructed and managed by private capitalists, and both upon the same scale, and looking to the fw West for patronage ; the New Yorlc Roads subsi- dized moderately, and the Canadian largely by the Local Governments. All were gainful schemes, many have proved delusive ones ; none have been prompted by politics or patriotism. It is believed that more British capital is embarked in our Railroads and Canals, seeking Western trade, than in similar Canadian works. The British Government constructed the Rideau Canal, 127 miles in length, soon after the War, from her military chest ; it is in no sense a rival for trade. The Commission- ers of the Board of Works say in their Report, December. 1859, page 23, that " the work was handed over to this Department in a dilapidated condition, demanding a large expenditure of money ; that its revenues are <'erived chiefly from local traffic, lumber, iron ore," Foreign products $0,898,856 ProdncU of United States 12,287,641 or which pays 25 per cent, duty | 140,011 " " 20 and 15 per cent, duty 2,487,251 " "10 and 5 per cent duty 500,724 Free goods 8,04U,22o Total imports |22,139,89T Of the foreign products, tea amounts to 5,825,052 lbs, of the value of $2,071,339, which is imported from China in American bottoms, exported to Canada through our canals and railroads, yielding freight, warehouse charges and mer- cantile profits. It is difficult to imagine a more suicidal measure than the one proposed by Mr. Hatch, of repealing the Debenture Laws, so far as they relate to Canada, COASTING TRADE. The only remaining subject of criticism and complaint is the International Coasting Trade. Mr. Hatch says : " In this competition of shipping, American ship owners run a race in fetters. The staple manufacture of Canada has long been that of ship building for exportation,"