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 OF 
 
 i 
 
 
 ON 
 
 BRINGING DOWN THE FINANCIAL &TAT£M£KT^ 
 
 ),/( ^";i 
 
 • -<*. liill T.T.; 
 ■ '■i-. .0 .,: 
 
 ^ugfust 2&th.9 lSe£5. 
 
 On mptioa of Hon Mr. OALT tbo House 
 went inftp Committee of Ways and Means,— 
 kr. STKBfiT in tbe Chair. 
 
 Hott. Mr. GALT was sure that on this occa- 
 ■Lon be would meet with tbe wonted indulgence 
 of tte Hbuae, while laying before it the state- 
 ment he was about to make. In this case, as 
 ia previous years, he had to consider the An- 
 oaal Bklaince Sheet of the Province — to state 
 wtet had been the results of the past labor 
 and indoatry of the country, and observe what 
 mi|^t be the prospects for the future ; but on 
 this occasion he bad to review a longer period 
 thab usual, and to consider tbe transactions of 
 not mertly twelve months, but he might say, 
 of eighteen. During that time we had seen 
 SOBW important changes affecting tbe condition 
 of the Province. At the commencement of the 
 period the neighboring country, the United 
 States, was convulsed by tbe greatest civil war 
 the world ever saw — a war which had inter- 
 ferred {not only with its industry, but also 
 with oor own; and it would be interesting to 
 .•iMtorvfl what its disturbing eifcct on ourselves 
 bad been. (Hear, hear.) Before considering 
 that e(flbct, however he would state what had 
 bees tht extent of our import and expoft trade. 
 The imports of tI)o half year ending June, 
 1864, amounted to $23,882,216, of which coin 
 fUid bnlUon amounted to !{;3,'175,r>04, so that 
 the imports, exclusive of coin, were $2 1,406,712. 
 Theaxporta for the same period were $13,88,3,- 
 
 ■* less coin imported, $704,166, leaving as 
 aalance $13,179 342. The totui imports 
 
 . exports for tbeso si.t months were, 
 therefore $34,586,034. 1; shuuld be observed 
 that during this period the imports largely ex- 
 citeded tbe exports. Whether ..this had affected 
 the smbseqnent revenue of the country he was 
 not prepared to say, but the probability was 
 tbat.the'exeess had exercised influence on the 
 coaditipa of trade during the next (bw months. 
 (Hear, beat.) Tbe imports for the year just 
 dosed, ending Jane 30th, 1860, wree $44,620,- 
 46&^'lett toin, $4,768,478, leaving as the value 
 of Ordinary imiiorts, $39,86 1 ,99 1 During the 
 aaHM/ear tbe exports were $42,481,161, lesa 
 ooIb 9lt«i8»,l9l, leaving a balance of 
 t40,ns^iO. The total trade bad tb«», 
 l,9fil. B&:<-'wai bapp/ 
 It while daring the 
 Jiif ^^^^«fttor«l jear tit» ex 
 
 nearly a million. (Hear.) If we 
 the disturbing causes that had 
 Ibhould find cause to ; coDgra^\lat|»r< 
 that we had passed throu(|ii.tfi^ ' 
 with so little ; injuqf ^, Tlyx^gl^. rf.^ 
 been maiAtaii^ed, ,onri ^ijiie; , p^gji^, ,J| 
 larger, it was satisfactofjtj 1(91;^^.,, 
 trade had been main^il^ /^ .ajbtfljull,,' 
 volume as before . t^e war cpf>^p^|9f 
 would now proceeid to advert tgt.t^i^ „., 
 and expenditure of the countr; fii;ii^ ji|i\|)^^ 
 which was past, Before doing e;o heVt^ljjt 
 it necessary to refer to the remwItP ^I^^t 
 had the honor of addressing % tt^e.Qoinmme* 
 at the time the estimates were 8iiji|«iuit^i it)*- 
 results of which they were! now aboiiit t<t«i^- 
 sider. On^ the 10th of Ifey, l8W,,t%,l3w^ 
 ernment stated that they had to pcopc^ajto^ntS' 
 House a change in the financial year, sp tM^ it 
 should commence with the 1st 9f Jub foliat- 
 ing, and that consequently they b^d ,o^^f 
 occasion to submit estimates pf the. nrwi^t. 
 and expenditure for the six montt|8^ C|f wbwll 
 four had then expired, and tb,e twelve .^oilftu. 
 following. Having read from, the ^pf(f%ih9 
 made in Mfy 1864j ^«m^^lf3,''q^wir^f,i^)(,,^. 
 tlie,9ircun: j^oues under whijjib iihe chf ^ga i«M< 
 adopted, thei'e„;mu8t m^itri^'^ /B^pnii^jilf^- 
 less an intermingling of' the two iic%bjgiAts lOr. 
 the six mouths and the twelve moqth^, I^ 8a{^ 
 he recalled these reinai^ks to the at^enuj^n of: 
 the House, to explain why theabA!tn^t,Qf; ej^Mor. 
 diture now brought down was ian «08ir«et,j|o« 
 eighteen months. .The account -!A>i'.'jt^.Jl^ 
 months were kid before the Honse iMtjtf^ffM^t 
 and those for the twelve mpojOis yeie^i^jK. fa. 
 course of preparation, and WOJlii|<t ,ff^i^. 
 ready. He wassorry they, were not nai)( i|B;.^^ 
 hands of the members, but-jlM couM^.ii|<fM«V'. 
 offer an apology for this to'it^e C6d|ini)l^t«%, QJt- 
 cause they must kuo;w it was pejrbcfljr Ji^y^>i4 
 ble to have the accounts pzcMH^ ^j^b, j|e^a, 
 weeks of the termination 9^; tft^,&f»n^ifiL' ^Mfi 
 He bad, l]p#eyer, prepwed' aJt^..etot^€(V,',f^j^ 
 expenditure and i iiMUie« ^biciti .be. j^6||pne(}, 
 was in tbe hands of every mjMaher of tM Com- 
 mittee. He woBld proceed, then, ,tp inni^.to 
 tbe Hqnse a atat^n^sint of t^. reyei^ ' ''" 
 i^re of tb9 ooootry. d|ur{q||^J 
 «d: , duxiag vthie tjirtlWj^ 
 tot sepuwefy, ' afvd. '"" 
 ieotivelf. And 
 
 T^fefa^i^'l" ■Si*' 
 
 m 
 

 thmj had been tod^somu extent exceeded, the 
 1 eiuions for jg^p^xcnas ; nnd in other caaus, 
 where the exp^Mitiire had fallea short of tlie 
 estimate, 0fl rensou.s for tbi.i nlso. For tlio 
 pregea||lK would exclude tlio items bcilonging 
 tojjifo'redoinption of tlio public debt, a < in to 
 present a comparison of the ordiniiry revfuue 
 «nd expenditure. For tlie half year ending 
 30th June, '64, the estimated income wn.s :?4,- 
 774,000, and the actual receipts/vcie ^■'"ii'l'5't,- 
 000, the excess being $000,000 ' For tlic year 
 ending 30th Juno, '65, the ciitimntiMl income 
 was S 1 0,603,000 ; the actual recciptfi, H.MO,- 
 528,000, the rcceiiils for the year beiu;;,' Ic:.:! than 
 the estimates by $1 .'ir.,000. The I iliil excpis of 
 income over the rsiiniatcs whs thcrcforo !?.'ir)r), 
 000; but it was his duty to draw tiie Httciition 
 oi" the Committee to the fact that there were in- 
 cluded in that income certain items which ap- 
 peared on the other side of the account as pay- 
 ments, and, therefore, strictly speaking, vei-e 
 not before the House at the lime the estimates 
 were submitted, and did not term part of tiie 
 ordinary income of the year, lie referred to 
 the refunding of duties and payments connected 
 with the Provincial Penitentiary. The reCnnd- 
 ing of duties amounted to$185,6H.'1. There wits 
 another point to which he sbonld allude — nauip- 
 ly, the arrangements now made, by wliich nil 
 monies received by pubic oilieer;! were carried 
 to the account of the Receiver tieufinil of llii; 
 Province. Tliey had been endeavoring, yeiir 
 by year, to ai)pronch as nearly as. possible to an 
 absolute order that no public money should he 
 paid out except through the Keceiver (Senprnl'.s 
 Department, and he thought they had now ar- 
 rived at a system as nearly perfect as po.= =.ilile 
 in this respect. In the accounts of tlio paiU 
 year a new item would be found ri" $l'.i,iH)ti 
 from labor of convicts in the Provincial Peni- 
 tentiary, which appeared on one side as a re- 
 ceipt, and on the other as a dishnrsi-ment, and 
 which did not so appear, nor was it so regarded 
 at the time when the estimates were bel'or;! the 
 Committee. Tht amount of refund was, a:? he 
 bad stated, S185,683, and of receipts I'rom 
 Penitentiary, .&c., 56.5,000. Then there wa?i 
 an item of American money received 
 for postage, which waj estimated at 
 its par value, but upon which, as the 
 House had learned from the public accounts in 
 June 1864, there had been a loss of.:8{,000, 
 which had since been increased to ;*lon,ooo. 
 It appeared, therefore, that while on one side 
 this item was still entered at par, on the other, 
 under the head of ])remiuni3 and discounts, 
 would be found discount that had to be paid 
 on this money. When, con. equentiy, he stated 
 the excess of income over estimates to amount 
 to $555,000, he found it necessary to deduct 
 the amount of duties refunded, the receipts 
 from the Provincial Penitentiary, and the 
 difference of value of American jiostal money, 
 leaving an actual e.xcess of §206,319, .as 
 compared with the estimates snbrailted to the 
 House. He would now refer to the outlay .)f 
 the half year, which had been estimated at 
 $5,223,000. The actual outlay which took 
 place was $4,991,425. So that the excess of 
 the estimate over the actual outlay was 
 $231,575. The estimates for the 
 whole year amounted to $10,486,000, and 
 
 actual otitlnj' to $1 !,f)41,:!;v.», making excess of 
 expenditure over estimates of $1,055,339, or 
 deducting, the amounts short expended in the 
 l)revious half-year $231,000, and the refunds, 
 itc, whi'cll appeared alio on the other vide of the 
 account, :*^.^.i8, 681, there was an actual excess 
 of out lay' over the estimates of $475,000. This 
 excess had been caused by disbursements con- 
 nected with the militia and pidice on the front- 
 ier, ami also oii acr'ount of the necessity of mnk- 
 in<f (i;o()d the sum of which the >St. Alban.V 
 hank.j had been r(tl)bed — all of whicii disbiu'se- 
 ments the (Committee, when it last sat, had no 
 reo.-'on to apprelieu'l would arise, 'i'hese items 
 amounted altonethor to §r)0(),(i()0, which was 
 within a' fraction of the <xcess over Iho esii- 
 niated e.vpendilnre. He would now refer tf> 
 actual nceouui:!, ;\iid would trivo tlie Commit- 
 tee the results as coriijtared with (ho estimates. 
 The expenditure for the half-year was §4,091,- 
 •126; for the year, ."^l 1,5 H ,3:i9 : total, §10, 
 r.:i2,764. Ineoiiie for halt-year, $5,464,000; 
 for the year, $10,527,032 : total, $15,001,041 . 
 Deliciency as cominred willi outlay, $540,823, 
 af'ainst the estimated deticiincy for 18 months 
 of $272,000 : ditference, $268,823 In rofer- 
 ing to the deliciency of $510, S23, he thought he 
 mi;i;ht be warranted in drawinjj; the attention 
 of the Committee to the fact that 
 included in that, were two items that could 
 scarcely belong to the ordinary expenditure. He 
 referred, in the lirst place, to the sinking fund, ' 
 and the ]iayinenl to the (irand Trimk for postal 
 .service of §107, 120, that sum being a debt 
 w'lieli wns owiufi. These two amounted to 
 $442,758 ; and if we consider this as apart from 
 the ordinnry expenditure of the country, it 
 would reduc(! tliu tlehciency to $98,065. Under 
 the expptiditiiie were included items not con- 
 templated hy the country or the House at the 
 heji;iMiiini,' 'jf the year, sucli us that already 
 mentioned for the frontier police. .Vnd he miglit 
 al-=o draw attention to the lad tiiiil on the 
 UUawi' buihlin;/.-;, wliich was a public work, in 
 eighteen inonlli.-, we had $715,000 diohursed. 
 He now proposed to show iiov the de- 
 T'citncy was provided for, and would leferto 
 the hulanees These were on the 1st Jan., 
 S2,60L<,8tO: Isl July, 1S65, $3,444,531; in- 
 cie;ise, :?f!40,741; debt paid oft', S4,087,:*d; 
 seeuritieri pokl, ■li:^.,7:<7,5H8 : taken from c'.sh 
 balances, $2;t;i, IMS, leaving $540,823 as the 
 diir.Teiicp heiween the income and the total 
 outlay." In estiniatinj; theexpenilitiire on this 
 oce.iBi^tu, evf?i ything was brought in up ta iho 
 .■lOt.i June. No items were allowed to stand 
 over. The who^e. came in within the financial 
 year. It wa.^ well to kni>w that the total result 
 coiiipreliended all expenditure of the country up 
 to tlie 30th June. He thought he might cou- 
 ^ratulate the Committee nnd the country that, 
 notwithstanding we had sustained a most 
 serious falling ofif in the Customs' duties, and 
 increased cli rges upon revenue, we had been 
 enabled ifo surmount these difliculties. He 
 would now proceed to revert to the estimates 
 for the current year ; and he first proposeed 
 to take-up the question of the estimated in- 
 come of (he country. The principles ho had 
 endeavored to carry out in snbmitting those 
 estimates had been to form a reasonable and 
 moderate view of wiiat was likely to l^ tb» 
 
 had 
 
 mate 
 
 We 
 
 ofl: 
 
 the 
 
 thin$ 
 
 to w 
 
^l. ^ 
 
 '.-jr- 
 
 1 . 
 
 income of the country ibr the incoming 
 year, and to endeavor to eatlni.'ito I he ex- 
 penditure withiu tlie estimated income. He 
 therefore felt it liis duty to jro nioie,' lully inio 
 the reasons tliat induced tliu Uoveinuiont to 
 frame the estiniaiod iucouio tlmu liad been done 
 on former occasions. Ho tliougljt Hint in con- 
 sequence of the priucipie llio tJovoiiMutnt were 
 endeavorimf '" eoiry out in llji.'s nmlter, it wa.i 
 hid duty to give the Cuminitt'jo ilii;' gruund.j 
 ujiou wliicli tlie (Stimatci ol' tlie iuc.nue \vei\i 
 bused, lie would lirst levuit to what Imd al- 
 ways been the priucipiil source of income in 
 tliis country— the Customs d\iliL'j ; and would 
 repeat the statement of tlie lluu. Attorney Gen- 
 eral East, that it was not tlu! iutoution of tlie 
 Government to propose any ((!IiimI1,,ii in tliu.-ie 
 duties. It is true there were ilenid coiinecled 
 with the rates of duties im[iost.-d under the pns- 
 eat Customa'act whidi the (Juveinuruit ntight 
 desire to call attention to. Bui, Ijukiugul the 
 controlling' iuthuuu'oj in opcnaiou at IhU uio- 
 incnt — looliirijf at Uie I'.ict ll;;if \\>\ Kli,,uld hiivc 
 undoubtedly to ii-couriider ni.uiy jiuiiiU i>f our 
 customs and exci.-e duties, in conutctiou with 
 negotiations shortly to t.ike placo with the Uni- 
 ted States, and also looking at the f.iot tiiat we 
 would have to consider, conjointly with our 
 sister provinces, the as.^imiiniinu otour cu.stoms 
 and excise duties, lie thou^^ht it would nol havi 
 bc-a wise for the Guveinmeut to, attempt to 
 c. irb llie e.xi.stiu>,' rates. Tho.io duties hud 
 n-u ijeen in opor.ilion a cousitliiaLli- puriudl 
 nuu it would not be desirable to dijlurb our 
 trade in regard to those matter.^-, when, possi- 
 bly, it might be subjected to still auiitlicr dis- 
 turbance within twi;he moulln. Il,was neces- 
 sary that he should refer I u the course of the 
 customs duties during the l.iU year and a 
 half or two years. The Iloiwe would liiid, oil 
 turning to the statement l.iid bd'orc tlicia 
 in .March last, an abstract i.l" the i'.\penditure 
 and income up to :Jlsl Dec. last,' from which 
 it apiieared that the customs duties lor ilie 
 whole of 1861 amounted to !il'.i;/;(;G,0i)0. Ou 
 comparison of tlie im|)orls of the |)reseni veuii 
 from 1st January up to 1st July, with tho.se fo^ 
 corresponding [leriod of isut, it wji.ld be ob; 
 served that a very considerable falling off took 
 place, amounting to $9-10, :!TU. This loss had 
 fallen on the linuncial year just closed. AVe 
 had now to consider what w« might fairly e-lii. 
 mate the Customs duties at (rom IslJuIy last. 
 We found the causes that produced the falliui 
 off in the early part of iSGj, as compared with 
 the same period of 13C4, arose from two 
 things. First, the b.id harvest, and second — 
 to which the uecline might be more immediate^ 
 ]y attributed— the fceliug of insecurity and del- 
 pression ^.. sting in this country, and wliich 
 ..prerentod the merchants from milting their or- 
 dinary importations of goods. Ife had consult- 
 tod the Government cullect(u-,s at Quebec, .Mon- 
 treal, Kingston, Ottawa, Toronto, Hamilton, 
 and Loudon — at which nineteeii-twuntieths of 
 the whole imports of the country arrived, iuu! 
 had ol)tained information as to the views of ti.; 
 merchants generally in regard to the fall trade ; 
 and in view of the abimdant harvest, which' it 
 liad pleased Providence to grant this country, 
 and the low estimate of stocks of goo^s exist:. 
 H^iMtM ftU pwts «f the cuiiijf}'/, nai tUo unjveiv 
 
 sal report received as regards stoclu of griMMN 
 ics, which yielded a largo proportion of oor nra- 
 nne — tea, sugar, etc.,— it was npect«d . then 
 would be much larger importations this Akll 
 than were ever seen before. With regard to dry 
 goods, although there was reported to b«.An 
 ovr.r-3upply of certain kinds, it was represenfed 
 that the gt;neral importations would equal 
 those of past periods. As to spring trade, esti- 
 mate was more conjectural, but opinion seemed 
 to be that the importations of next springwould 
 be very much larger than this and previous 
 years. Fie believed the sources of information 
 to which he had applied were most likely to 
 to guide us correctly in estimating revenue 
 from customs ; and when we found the revenue 
 from customs last year reaching $5,G86,27l'' — 
 speiiking of the fiscal year ending 30th June, 
 186.") — the whole tenor of the reports received 
 was indicative of there being considerable in- 
 crease in that trade. He proposed now to take 
 the receipts from custims for 1864 as from 1st 
 January to '.Hit December, which amounted to 
 S^(i,(i(>0,0(tO, and deduct from that $500,000, 
 which, he thought, would certainly bring the 
 estimate for customs within the limit to which 
 it was likely to attain. He believed the reporti 
 received would indicate the collection of a 
 larger revenue than that. 
 
 Hon. Mr. HOLTOX-In the fiscal year? 
 , Hon. Mr. G ALT— That is from Ist July, 180,1 
 till; next 1st July, covering the fall and spring 
 triide. He might mention in reference to this 
 subject that, although the fiscal year was not 
 far advanced, yet he already began to find the 
 Customs revenue reviviDg, in proof of which he 
 would give the House a statement of the receipts 
 from Customs for the corresponding periods of 
 1HC3, 18G4, and 1865— the recei]>t3 for 1864, he 
 must remark, being the largest that had ever 
 been recciveti at the same period of the year. 
 The revenue from Customs from July Ist to 
 Augu.st 2t;th were — 
 
 In 18(i3 $936,600 
 
 " 18C4... 1.254,397 "• 
 
 " 1865 939,208 
 
 The amount for the month of July, this year, 
 was less than in 1863, but the receipts in August 
 had made up the deiiciency, and somewhat 
 more, though they were about $300,000 less 
 than in ISGl, when very exceptional circum- 
 stances existed. (Hear, hear.) lie might also 
 take this opportunity of stating, though the 
 figta'cs belonged more properly to the next part 
 of his remarks, that receipts from excise had 
 l)een $S3,414 for tho same period (8 weeks)of 
 18G4, and $250,371 in 1805- tie therefore 
 thouglit iho estimate the Government had form- 
 ed of the receipts from customs was likely to be 
 a safe oue, viz : that they would only bo $500,- 
 (100 less than in the natural year of 1864. 
 (Hear.) With reference to the excise hepro- 
 po.-io<l to estimate tho receipts fi "'m licenses at 
 i«;G,-),uOO — they might be a little less or a little 
 111 n— -b'lt they would not vary much from these 
 ! ':■ ligures of last year. With reference to spirits, 
 lua receipts last yonr were werf 30 cjuts jier gf.1- 
 on on 3,000,00i> g.illons, the exact sum being 
 $891,93t). The e.nimitc bad beeu based OQ an 
 expected distillation of 3,'.^00,000 gallons, but 
 
V 
 
 4baijlpt)tlii'«ltimliic for the current year, the 
 ■ itarModHatbad had reference to what was 
 ■4<MlMkl*rt4 the regular consumptiou of the 
 i:#>«itt7,A8 indicat^ by the experience of seve- 
 '^1fel:fMn fast, inAking allowance for cxcep- 
 i/iHodalCAUaes. Qne of these wns that i\ large 
 {.''jiflMHiat'DfapiritA bad been fiken out of bond 
 
 . .bffcrt^Jaiy l»t, 1864, t^nvold the auticlpated 
 -iioeiieteBJofiduty, thmtgh the Qorcrnmeiit had 
 ..MaiiMd.4(|}ood:dealby haviug the duty collec- 
 ; tedvftpm.ttejtiiQeitbe resolutions wore first in- 
 triodaoed to the :Hou«e. Tho average ninount 
 ; distilled ilriu from SiQOafOOO to 3i,80Q,bop gal- 
 . dontt^l 1 iidcdiMition had been made in last year'^ 
 ''oalionteAf i<M>,000 gallons to allow tor thtj 
 ..flrnion'Ol' duty, dim inislied uonsumptiou, &c., 
 -bUtijlB thought, the probability was tliat the 
 . tdiflltUl«tl09 :^ tpirits would be somewhat larger 
 ^< tUtjycar than .last. He did, indeed, thiuk it 
 'i#«Ud b^ considerably larger, but he had only 
 > tatim«ted;cln • basis of 3,250,000 gallons which 
 li^^aahi yield $975,000. The distillation might 
 jMteMd this amount, but a good deal whs being 
 ,'iMi^t:out of the country, some legally, and 
 itomajiierhaps, illegally. Ho proposed to cali- 
 ..'■niUe. the excise, on beer at $160,000. Ue 
 ifoqnd it hadnot raried much from that amount 
 AfdBSMMj (ins.c. In the cqse of tobacco, the 
 House was aware that a considerable revenue 
 had>4>eei^ ftnlicipated last year from this source, 
 . Jmt t^cHQusft would remember that it bad been 
 ^'^^fSl7Ji^ph'"io' levy duty on tobacco then 
 •imnnfactured, iatad, as had been stated at the 
 '^iqe if^Oqild be the case, this had seriously 
 , iffiscted the reyeitue for the year just ex- 
 ■jf}^'),- -^^^^ ^"^^ ^^^ <^ large stock then on 
 . P^^, ' which had gone into consumption, 
 y'^ii^nsecitiently thfe contltry was deprived of a 
 '. KQ04 ^ cteai of What would otherwise have 
 'I'j^isj^ realised. Under these adverse circum- 
 /^^cek, tbei . revenue collected during the fiscal 
 ^■ji5»tH^dbisen $115,500, but he might stato that 
 'in addHioh to this, there was a duty accruing 
 on tobacro in warehouse of $75,180. All this 
 mig;6^;,iDtirt'bfr received, because some of the to- 
 bacco idigbt^ be «Kf>oFted and thus not pay du- 
 ty, but .tbii was the amount leviable on the 
 'tqqaittT,^ intond. on July 1st. (Hear, hear.) 
 '. Ib efi^natlhg.the receipts from excise ontobac- 
 tiBQrJiwc^Bd toi be, governed somewhat by Mer- 
 ^ifP^^^thBOfdrnafy, imports of nianuwc'tijred 
 nttl^Scq l|i farmer years. Iii 1860, it was Si 
 i^milllM^, of , pounds. Before the American war 
 ,ij|hqra;Was a Ivge import of manufactured to- 
 iJha^^,, jPuring the American war, the fmport 
 [„9r dn<lt«%tui|e^ tohabco fell '6S .y'pry iiiuch, 
 •u.wju^if^ qf; Vunwajiu^Bictured toBacco largely 
 o-!W9ri*t^»,.sov(twp\f t{;ft it amounted in ttLi;.last 
 r,l««Pfl«»»:t»:Jli5.Q0(>,00O.Us, A., Jarge .^fropor- 
 d^^-p^iitibat^aa been, C9n3'umQi|.'in the bouhtry, 
 .{tfasufik »liSocA deal, had beeft,expprted. The 
 ! j^jBttjOfi .jre^iyed during the past year undoubt- 
 -Hflte ind|9^d ; ,th^t the consupiptioh hiid been 
 s.-.m^^fifjipugj^i^^- itom' ,sliO(A? ' qn hand— the 
 -<l#m(W9|s ;iinpjw^d.,ai¥i. manufactured having 
 2b^l»-,sm»l),--,Ui^4M these cir!9um3tance», we 
 tnii^tlvAgoiiablyapticipate that the amount of 
 -(.j^wseoyieldinil revenue to thepounttir, would 
 g4RPrWW>9^.JiP'oewhat to the cuistiiubtibh of 
 uthft WWWtSfyjJ yiie opnaumptloA c^^t be 
 
 Uiot P^ndf ; f^^^a/tiin nuntlnit it waof fnnKA^lil 
 
 Ui9 Uw VM noi 
 
 >ij{,pif(otioeit 
 
 perbapi, lufllcieSl 
 
 , Jbat 
 
 that in some cases fraiids were'SucceMfully com* 
 mitted. It was better, therefore, to makii a 
 low estimate, and he accordingly ptit th« coR- 
 sumption of tobacco for the current jnr at 
 three and n-half million pounds, yieldin^fSSO,- 
 000. The recfipts on tobacco this year, SlDc^ 
 IH July, indicated a receipt at the rate of about 
 $275,000 forthoyeur. But it was Clear that 
 the c msumptiun, which would become prodac* 
 live to the revenue, would mcreaae, month by 
 month, inasmuch as tho stock of tobacco In the 
 country wa.<* gnuluully becoming less, aqd 
 ^ontinmeru wmild bo obliged to purchase that 
 wltich had been subjected to excise duty. 
 'those fonr items, licenses and ekdse on 
 ^Jljiits, beer uiid tolmccp, would , give 
 itltogrtlier Si ,.'").')0,0(iO. While on the subject of 
 exci,-c he miijht also remark it was also fail iu- 
 tmitiou to introduce 11 bill, of which' h^ had 
 given Mutice, fur amending the excise law, 'so 
 us to provide for some cases which he did hot 
 think were sullicieutly provided for under the 
 present act. It was ({uitc evident uow that the 
 excise duties were considerably augmented, as 
 they hud been from C to liO cents within three 
 years, :hat the temptations to commit fraud 
 were much increased ; and Covcrnment re- 
 quired to have all the additional power with 
 which tiie Executive could arm the excise offi- 
 cers, for the purpose of checking these frftods. 
 The Government had, he might say, determin- 
 ed in all cases to put the full force of the law 
 into effect against parties who were found vio- 
 lating it. (Hear, hear.) The Post Of- 
 fice last year produced $470,000. The 
 receipts from postage were, year by year. In- 
 creasing. Tho increased population and In- 
 creased business of the country natiirally told 
 on the postal receipts, and we might fairly 
 estimate some addition under that bead, - He 
 preferred, however, putting the estimate at the 
 same figuire— $470,000. The Public Works 
 last year produced $395,000; this year he 
 estimated them at $450,000. He mfghtbere 
 give a very brief explanation with regard to the 
 question of "canal tolls. The policy of the Gov- 
 ernment as regards the tolls was the policy 
 adopted at the time thd President of the Conn- 
 oil joined the Government. That, like some 
 other questions, was felt to be entirely subttr- 
 diriate to the great point of settling the cdnsti- 
 tutional difficulties of the country. H9 (Sir. 
 Gait) at that time held his own yiew8,-'fmd he 
 held them still, as to the policy oit making our 
 iuland navigation as free from bmdens as pos- 
 sible, and he believed the President rif ' the 
 Oonncil equally held to his- expressed ■rtews. 
 When' he (Mr Gait) came into office, the tolls 
 fed btett 're-iihf posed by his hon friend behind 
 piin, (Mr. HdwtAnd) and miiintalned by the i^n 
 ■jfeWtle*ihnopi!t08lt& (Jlr. lloltbn.) They wtre 
 af^erWaids^ sfi^lly modified by himself (Ur. 
 Gait.) There might be some mlno^ cbsittges 
 to meet the requirements of trade, but the ■Gov- 
 ernment did not intend to alter the ratfts or the 
 principle on which they were now admiinisier- 
 ud. The increased estimate of $55,000 was 
 what 'he believed would arise from the tnticb 
 -moiV ^odnotive harvest whicb the Western 
 cohhtfyhad Lad, and which he tfaotlght we 
 '.hilg(HllreBi^,jnftbly hope would yield that in. 
 6fjifa^ df' tolls, which was oaly half tlw •iMM 
 Wlfile^YMiouiiyMrDrerUutk }D.tb»-fiwN|ttl 
 
■SSi^^a 
 
 
 «•!» ppwtrdi pf 
 
 W»0<?9.. ^9' V^^ 
 
 frOjflPO^ ;%Ml(t«Wl il<iome lwtye«ir.va» 
 $899^op. .But lifc|ud*d ia;t||at wAsftconsiU- 
 «r»^|f M^n^ni^ mm th« .Cafia^ian Lan4 aiid 
 
 Julian Hl!»« ^S^Wi.^l W9PW«a. tWf Rajr- 
 
 Jn t(N».wUs?iaf)« pr tlMcar^ntycM of |180,QOO. 
 
 U yift$;p»^p)kti9i wew9ttid nqelye $6S&,000 
 
 ,i«itf ltd, 0(1^310,690., Taking tte , hopeful t to w 
 
 ^b^ lire irere ioftiSed in takipf of the position 
 
 ,of «^4«^ i^^s)>0"^ tb«coMat;|i7. we might 
 
 ipp^ .tlipre Fpqld be n puch larger amount, of 
 
 arr^arp opljiected.tiilt jei^r than Ifsl year. He 
 
 4i44 jfo^ijQiid^, injr, ••ttmatfi, howoTer, op this 
 
 •r«0|int, iflijifrt receipts of theiprestnt year. 
 
 fltac<M7V°)4*i9, ^11 9,000 during the fiscal year 
 
 .,J9tt«(QMd,.sonfe.what more thajD the estimate. 
 
 ,,Tbf^.'4'>f*i yf^^ A^^ exceediogljr imjwrfect. 
 
 ^Ik9 j;e(tuifiif dbti^hed from the ba^ks gave an 
 
 ja^p^j^ 990,090, i^nd he had estimated from 
 
 . f «th|Brn squroajl an ibcceased revenue of ilO,000. 
 
 .7}>e >)|Oe<pt% hM hocn considerably greater, 
 
 JuifjMgiyitldtl |]^i9,000. It would be hia duty 
 
 /1nA>K« ^ ai>i,4P*i|>i! ^ "'ove a resolution on the 
 
 .!«m);^o^,^f,ftmp duties. , It ^aa found that the 
 
 ^}i.IBiM#>R<>f,l^^<i■P*^ b>li> and promissory noiea 
 
 'tit 9199 ;VIP.,P'pdnctive pf T^ gveat evasion . 
 
 Ifo^a; .^i^r* uvi^jBd .^o <^ ^^ry great ei^tent. Ko 
 
 9O«gltve;|^qotefor$l00, but it was divided so 
 
 M to Mcap^ the ^uty altogether. This was not 
 
 lair to. tbp re^t pf the community, aod oer . aiuly 
 
 ,it::irM not. df^s^bjie to allow pepple to'evade the 
 
 .jfSTfnae in tbl# iway. U Wi9«;thpnfoie pro- 
 
 /.-fmA, fh^^j aU hUl* #nd promis^Ofy notes 
 
 ef. wiwtAVKr r^lne, #botfld bear a, stamp, one 
 
 , (tent PR |W>^>i:9f:i9^^d under. If tents on $^0 
 
 . #lKl,Vi)49r, 3, feiUii PPifliQ©! and under. $y 
 
 Xh»ivmv% k«,i«fefOted fome increase would 
 
 ')B»..4lBpyp4. .Tfbve iwere alao some minor 
 
 .jf^^H^H^ipeaM tJD.t;^ 9tamp Act) which h« would 
 
 , !fiW>Wj.,fB,A m\.^ ^.|fc|roj>g'\t, before the 
 
 ...BoMB thif]mm^ Bp,»#.3tfl»mQV<» soiqe doubts 
 
 .,.4|iflU»hrl»a*)»n|«»BM/t«'l>'»P>»*«P7t»^"»'» °f 
 u.Hwf A<rt. Jfhit.wWjii^'iWtrpyWs ,^0, as far 
 
 .)W4KPiU»l?.lfert ^/rm of ,»^a»PPtt; wper in- 
 4;it»i»d,(»fjaiJi«AjtawBB,.>beVCTvepue being iin- 
 .!,4«»Wfdfclt •«»»}eot|»4 to pomf) foioupt of fraud, 
 t,:^ mr^m'^A'Wim, ofiH thofpiigUy defaced, 
 i.^slWI./ofF. the, aot^. Before he left the 
 . , ia(k^|Btqf«aikmps: ho ought to give some infor- 
 
 jPM^DOi.Wl^ i!M?^^ to the operation of the act 
 . imjiiNiiW/lair ..ftamps, which had been ^ubstii- 
 
 jmi 6p;l*o iRWiWa formerly eziatiag in ttpper 
 
 •»^ ,l«WW pan***- Be would road the figures 
 I luffing ^fU^te of the.ranoua fi>hcls >i> Upper 
 
 iCdStdt fuff^^efcyaariSincis ispi, otpUtipg 
 . ftMMw«4 iM M^k tho Cjtper qanadai Fee 
 
 faii4lim9mt|id to4M7,00(>| in 1862, ^61,00* ; 
 
 in l863^,t68,Q!00 ', and last year it had {n't 
 
 - ,«rM#ed, tbroiigh ^th• operation of stamps, to 
 ,;Mi,Q^,..;T*i^»TWgf receipt top the pwvi. 
 
 - OM WMTMOT iwvlBg \mu 9fi3,000, ibowtd 
 Ite 1164 Wb« •16,000. TiMatlM 
 
 sMldis fp iffSl . THe f^cftAts of tM tayr J 
 
 qoQiolidaUd .Fuii4 
 
 latoof: la \m 
 
 tq S29,600, il^owi^f 
 Us^ -"^ - —" 
 
 recti 
 
 law th^y ro^ toiiiO^Vlib «Wn in jp|ik3W^K 
 equK,! to the receipUi,ofth» highest p»vJou»y««r, 
 IStJl.Thew Items, W|tbaIafgpniro>|b!jrWqt^ 
 i]Dcl^d)eff;ih the term iBiswnanebuil^t he 
 
 w«re| 
 
 did.noipuw^ to delfv the. Cjff^ml^hj 
 lyer thfim Mrui/iiii. Tjie io^ii^[iliia(i^' 
 
 fund, t^e Indian fund, and c'ujli^iloiaB un^de^^ 
 Muiui;{pal I^oau Fu|n3 jfbrpeq., ,U^ pjrinoipal 
 Ittiras, while with the^e there. wefV'ja uriwr |0f 
 minor sourd«s m income wh^Ii] pi;odN^wd.lujto- 
 ge'tlier In tliej'ear ISG't-OS the sum o'f\i|fl,870,- 
 000. fle purposed to istimate tbtm nlKaa pi^o- 
 dt^cing next year 81^650,600,, bein'ga.r^uctipD 
 of 020,000. lie then, in cohn«<ijt(on; .'with^ 
 purpose of the Oovemment aa to the node ,of 
 expending tliese sums, adverted to tho OjMfa- 
 tiondfthis Audit Act, and sWed to the Ghm- 
 roittee certaiu modifications of- form whicSi Oo> 
 vernmeut were adopting, with a view of creat- 
 ing a greater checl^, H^on pu)fI|c..,fiXMBdit^. 
 There was por dpubt we' wtre gcaAuftly l^p- 
 proacbing 4 more pertect ^ystcm in ^ujafespect. 
 It had taked us several years Ho do so, a* it 
 must necessarily do in any cpujttry, bat it 
 waa'a system more, |)ei)^ct than thaVai^opted.in 
 any country of which he had knowledge. It 
 waf certauily more perfect than ,lhat iof , Bug- 
 land or the United Stages, .but he could qot 
 speak with the sam^' finowledge aa to Uie 
 systems of other countries. Under ih^ ,{Hio- 
 ciple of t^ Audit Act the authority d^ t^arlja- 
 mcnt was inquired for every expenditu^, and so 
 far it wa^ perfectly good and oar efiiUy carrijBd 
 out. To that, extent this Bo^se .'^ad control 
 oyer the ^xpeijdituro, but as ^ matter of fact 
 Parliament continually oif «e . iapprqp^iaUaiis 
 
 which 0,(iKht,to b^ and >(refl|^r(|jri)(flr«,, jub- 
 jecl to. t^e discretioi^. of <^3y<proini»'^t fis 
 to whether', they should ' t - :<Ttec^|rd#' ex- 
 pepded. A»prdpwatI()n8;;for, ^e 'Htafrff^a^- 
 
 , _ ^ _ . (<W0 wolrk 
 
 benencially for the purppsetof (jhocking, Uie, ox- 
 penditiiEetaf require ibataU fbe, idliabitM^ pf. 
 QciBrs of tkie Oovprnmep t tlii^uglhhp t! tlu ooiiv^ 
 should make monthlly^ '^tntpq .io ,0m ' , {p^ram- 
 
 ihat they would have 
 progress of publi<; v^oi 
 
 , , ch?ck up«i».^e 
 
 . - . 'W¥jw^ '?,"*Wfw««»y 
 expenditure that mi^Mb^ ,faved,«nd ft.ivoijld 
 aflford the further aaya^tHgfiiath^ jGoyerniAent 
 ofcontrolllng.tfie '.dein^nds wliicb iwere being 
 rpado fcoia tiriie to .time upon -the pul^lic «x- 
 cheqVieivwhicli dfltninda bad idftep^fo bo met 
 UMxpectudly and at inconVehiept Mi;iod8. 
 VThUeBpeakjngofttiishe miBb^,.sjyr the time 
 at which thp fwynfients of ^jtho Proyiifces matur- 
 ed was somownat' moohvenicnt^tbo Tat of 
 January and Istof July, especially the Igt of 
 Jaljr, At (h«ae wriodg the QoTtroionot bed 
 not wAj td proflda for iaiiiaiit os pabtlQ.r4fibt 
 bat dif A)P Um dH^lbtttioft oirtiw ibttB^j^rillltg 
 
IneMT, the cdneational gnnti and other ap> 
 ' JtropnatioDi. CoDiequentljr large sums fell due 
 at tiM beginning of every half year, and it was 
 a question with the Government whether these 
 periods of payment could not be altered, not to 
 deprive any one of money due him, but to spread 
 disbursemeniB over the year and make them 
 due at more couventeut jMrioda. The amount 
 of public debt to be redeemed this year was 
 91,100,000, of which the greater part was tho 
 final payment of tho Imperial loan. It wns 
 now all paid off with the exception of £140,000 
 sterling, and the Government held that nmouut 
 of India bonds to pay it. The romaiiider uf 
 the amount consisted of small debentures 
 which were now falling due, amount- 
 ing to between $300,000 and 8400,000. 
 The interest and charges on public debt were 
 $3,890,000, including sinking fund. The 
 charges embraced uuder the head of Civil Gov- 
 ernment, were all mentioned in the estimates 
 already in tho hands of members, and amounted 
 to $4,633,000. A good deal was provided for 
 by statute, and wiisi therefore not shown in the 
 estimates in member!)' hands. It was propo'tcd 
 to expend for Militin during the next year f.'iOO,- 
 000, which would be more fully explained by 
 the Minister of Militia on Thursday next. In 
 regard to public works, the buildings at Ottawa, 
 and the completion of the enlargement of the 
 Welland Canal, were the chief. It was expect- 
 ed that the total outlay of the Hoard of Works 
 would be $600,000. The collection of ntvonue 
 was put down at $1,350,000. Tiiat did not in- 
 clude the refunds, which, if included on one side 
 as revenue, bad to be included on the othier as 
 eipendiltire. Tliese ambttnted to' '$100,000. 
 Tho aggregate of those outlays, c'xclualve of re- 
 demption of public debt, WfiS $11,074,000, 
 against an income of SI 1,136,000, leaving a 
 surplus of $62,000. In regard to them tlie 
 Government had exercised every economy. 
 There was no doubt that, in a country like 
 Canada, increasing so rapidly, there must neces- 
 sarily be a gradual Incfeaso in the cost of the 
 Government. Itivusimpcssibla to govern three 
 millions for the same sum as two millions. lie 
 alluded specially to the great influx from the 
 States during late years, causing an increase of 
 -population which was very troublesome and ex- 
 pensive to us. The Government was also oblig- 
 ed to provide for a good many items of expen- 
 diture which, perhaps, were omitted before, but 
 could not now appear in unprovided items. 
 Tho determination of the Gbyernment was to 
 exercise ' every economy in ' ihe expenditure 
 of the sums which Parllamcttt might 
 place at its disposal. The Atidit Act 
 would be supplemented by such re- 
 strictions as would give the Government 
 stricter control than ever before exercised. He 
 went on to allude to tho necessity of making 
 additional provision f)r the Toronto Lunatic 
 Asylum ; #25,000 out of the Upper Cai-ada 
 Building Fund, but requiring to be taken from 
 tbe estimated surplus would l)e expended on 
 that up to 30ih June next, in the commenco- 
 nient of two wings. As to the balances, on 
 30th .luno lust, tliey were nearly ft-3,1 44,000. 
 Tho House hud already clothed tho Govern- 
 loae&t with power to dioposQ of four miUions of 
 dab«Btnrei| bat that hftd not boon exercised, the 
 dctMatiuM being lodged irlthtbe flauoUa 
 
 Agent and the Bank of Montreal, for rinil of 
 money obtained from them. The balances due 
 to the London agents hud been considerably 
 reduced, since Jannary 1861. On the other 
 hand the Government had obtnined temporal-y 
 assistance from the Bank of Montreal, to the 
 extent of Sli-fiO,000, at the commencement of 
 the new year. Tho Government had already 
 paid off :<l^250,000. aivcn per cent was the 
 rate, while that, of the London agents was fiVe 
 p?r cent. With regard to thoie balances the 
 Government had not proposed to ask the House 
 to make any special provi^iiou. They did not 
 think there would bo any difliculty in currying 
 over these balances to such time ri^i'mfght be 
 convenient for tho public service. Tho London 
 agents at once assented to currying them over 
 till January l$t. Tho GovernmL-nt would not 
 like to sell their seciiritios at their present rates 
 for tlie purpose of covering this. They had 
 every confidence that the credit of the country 
 would very speedily be improved. Tliey had 
 indications of that already, and there could be 
 no doubt, now that peace had been restored 
 in the United Slates tliut confidenco in ourse- 
 ciintios would rise to the former rate. Tho 
 Goveniment would exercise its authority un- 
 der the supply bill of last year, in reference to 
 the i.isiie of debentures should some favorable 
 opportunity arise for placing short dated de- 
 bentures on the market. IIo would now ad- 
 vert, at some short length, to our present re- 
 lations towards tlio United States, and what he 
 might term our foreign trade generally. 
 In view of the fuel that the Reciprocity Treaty 
 might possibly exoire on the 17tli March next, 
 under the terms of the notiice given, and that 
 a great disturbance of our trade would ensue 
 which TOight effect the conclusions to which 
 the Government had come in reference to our 
 revenue, he ought to say what tlie Government 
 hoped might be tli6 result of their negociatious 
 with the United States, And make some state- 
 ments in regard to tho dlspfosiiion with which 
 they were preparedto enter into arrartgemonts 
 for a teneWal of c6mnimorcial intercO'.trse. Our 
 trade with the United States consisted of two 
 part's. One Was independent of the Reciprocity 
 Treaty altogetherjand'the otlier was that exist- 
 ing uhder it. As to the fortner, the privileges 
 applying to ihe rtoSt favored nations would 
 apply hi out case in evfery iiarticular. But the 
 great bulk of our tfade^ was 61 the other klnd,atid 
 that which created the greatest apprehension in 
 the minds of our people^ was tlie belief that we 
 ■Were toa very 14rge'u»;tent dependent npon the 
 United States for- • the market for our produce. 
 He would not desire to diminish or derogate ffbm 
 the importance of the trade enjoyed with that 
 country. It was impossible that two kindred na- 
 tions, speaking the same language, having tho 
 same commercial instincts, and actuated by 
 friendly feelings, could exist alongside ofeacli 
 other without having intimate commercial rela- 
 tionsJ& interconr.se.and it was evident they cnnld 
 not be interfered vfith by either nation without 
 aerioiisly ifijiirirfg both.' But.while he acknow- 
 ledged t he iiiffiortartte' "Ml '^liie ti^de with the 
 United States, it was not our interest, nor was 
 it his duly to exaggerate its impor- 
 tance. In view of tho possibility, and, 
 as many thought, probability, of > that 
 trefttjr being Abrog «ted is Uuob ntit) ItlTM 
 
for iiim* of 
 itlances dtie 
 onsiderably 
 n the other 
 1 tcmporaVy 
 real, tu th<« 
 snc^tncnt of 
 Imd ulreiidy 
 nt wag tliii 
 rits Wtt3 fivi! 
 mlonces thn 
 < tlie H0U8U 
 hey did not 
 ia Carrying 
 li ' mtght be 
 rho London 
 ? them over 
 ; woutd not 
 resent rates 
 
 They had 
 the country 
 
 They had 
 ;re could be 
 en restored 
 } in ourae- 
 • rate. The 
 ithority un- 
 reforence to 
 le fiivorable 
 t dated de- 
 Id now ad- 
 
 pre.sent rc- 
 md whAt he 
 
 generally. 
 )city Treaty 
 March next, 
 in, and that 
 oiild enfiue 
 to wbith 
 :ence to our 
 Government 
 \ef{ociatioiis 
 some state- 
 with which 
 rartgemonts 
 cO'.lrse. Our 
 ited of two 
 
 Reciprocity 
 I that cxiat- 
 I privileges 
 ions would 
 ir. But the 
 ler klnd,atid 
 rehensionin 
 ilicf that we 
 nt upon the 
 lur prodnce. 
 Togate fW)m 
 d with that 
 
 kindred na- 
 
 having the 
 ictuated by 
 fside ofeacli 
 lercial rela- 
 
 t they conld 
 
 ion without 
 
 he acknow- 
 e with the 
 St., nor Was 
 its irapor- 
 ility, find, 
 it of ' that 
 
 'Icairable for the llouso and country to 
 look somewhat into tho condition of 
 the trade aa it now existed, and into the 
 reitsom whlrh induced us on th3 one hand, to 
 buHiTo it would be continue 1 and extended 
 and to uoniidur the pD.iition wu gliould, on the 
 other hand, be placed in, if our anticipations in 
 that respect should prove to be unfounded. 
 He had a statement of our trade with the 
 raited Stati!d, since 1850 ; but would not now 
 1^0 into all the (igurus. lie would nieiely 
 advert to what that trade had Ixtcn for some 
 short time piist, beginning with 1800. The 
 imports from the Uiiitud Slates had been, taking 
 o It the coin uud bullion : — 
 
 For 1800 S17,'2r.8,r)8S 
 
 . " 1801 20,206,080 
 
 " I8i;2 22,042,860 
 
 " 1803 18,407,683 
 
 Half of 1 864 7,».')3,40 1 
 
 Fiscal year 1864-5 14,H20,B07 
 
 This woa, in proportion to our wliolu im- 
 ports, less coin and bullion, 50, 51, 4'J, 44, 37^ 
 and 37 per cent respectively. Our export 
 trade was thus shown : — 
 
 For 1860 418,427,918 
 
 " 1801 14,261,427 
 
 " 1862 16,063,730 
 
 " 1863 18,426,891 
 
 Half of 1804 7,040,267 
 
 Fiscal year 1864-5 21,340,360 
 
 The relative proportion this trade bore to our 
 total exports (less coin and bullion) was thus 
 shewn : — 57, 41, 49, 49, 58 and 50 per cent 
 1 respectively. He would now tako the llgures 
 >j for the year, for the purpose of looking into the 
 operations of our trade with the United States 
 under the treaty. He would tako the year 't 4- 
 '00, for this reason, that in Ihaft year our im- 
 ? poris from the United States were proportion- 
 ately tho lowest, and our exports proportion- 
 ately the highest There was no year since the 
 lre:ity was enacted, in which our export trade 
 and our market in tho United States was so 
 \ large as in 1864. The leading articles in our 
 j. trade wit!) the United Stales under the treaty, 
 were fir.st the products of the forest. Those 
 iimounled last year to five millions of dollars. 
 In considering thd ' value of that trade to 
 us and to tho United States regard 
 . must bri had to tho present state of the 
 ■ supply in the United States market. It would 
 be found, ho tlioughf, that the obtaining of that 
 J lumber from Canada was quite as essentia] to 
 the consumers in the United States as its sale 
 I was to ourselves. He might advert to the 
 ' ; average prices of lumber entered for export as 
 iji indicating this. The prices were raised from 
 a S7 and #7 75 per thousand ftot in 1851 and 
 "'i 1852, to 98 in 1859, ,?9 75 ill 1860, $9 50 in 
 ', 1801, S9 75 in 1862, and $10 in 1863. Now, 
 the diatrlcts from which the United States ob- 
 tained their supply of lumber, exclusive of Oa- 
 n\da, were the Slate of Maine, some portions of 
 the Western States, Michigan, and States bor- 
 dering on the upper waters of Lakes Michigan 
 and Snperior, aijd the Southern States. The 
 trade with the 8ffuthern States had, of course, 
 been completely^ stopped Ibr several years past, 
 which had given vitality to the trade here, from 
 our being called upon to supply the Northern 
 SUtM with sbip-buMding timber to a lane ex- 
 •- ' '■>■'■■ ... , T 
 
 tent daring the rebellion. The portion of th« 
 I'liited States which consumed timber was not 
 that which produced it. Large districts of 
 New York and Pennsylvania, and the New Eng- 
 land States, w«re dependent for lumber on Im- 
 portations from other parts of their own country 
 aiid from Canada. Even iu the Western States 
 u very considerable market fur lumber existed. 
 Now, what would be the eltbct of the United 
 States impoHing a duty on lumber ? It would 
 either raise tho price so as to induce the article 
 tu bo brought from portions of their own coun- 
 try, whence it could not at present be brought 
 nil account of the distance, or they would have 
 to import It from this country, paying tho duty 
 themselves, and paying iis the same price aa 
 now. They might raise tho cost of the building 
 material used in their bouses and ships, but they 
 could only do ao at the expense of the consuih- 
 iiig interests, without injuring the producing 
 interest. Unless the effect of the increased cost 
 was to diminish tho consumption, they must 
 necessarily go either to Canada, or to the 
 more remote districts of their own coun- 
 try for the supply. He contended that 
 where a country was compelled to consume 
 an article on which they charged duty, they 
 nut merely paid the duty themselves, but 
 alisplutely made a present of n similar amount 
 of duty to all the producers of the article with- 
 in their own country. Tliere would be an In- 
 crease of price on the whole production of lum- 
 lir<r in the United States ; and he believed that 
 in the case of so bulky an article, which wvuld 
 not bear a long carriage, they could not suppiv 
 their market without coming to Canada for it 
 to a very great extent. The exports of tho next 
 class, animals and their products, reached a 
 very large and exceptional atncant in '64"'66.. 
 In that year there wore no less than $1,812,334 
 worth of horses, and $1,781,965 worth of cattle 
 exported to the United States. If anything 
 were wanting to shew the extent to which the 
 Northern States were exhausted by the war, it 
 was the exceptional amount of exports from 
 Canada under the head of animals during the 
 past year. In 1861, they amounted to $1,397,- 
 030; in 1862, toSl,262,13l ; in 1863, to $2,- 
 391,747 ; and in 1864-5, to $4,478,000, being 
 an enormous and exceptional amount of export 
 in that year, and one which we could not 
 reasonably expect to continue, now that the 
 cause to which it could incoutostably be traced 
 bad been removed. It was clear that, being 
 compelled to come to Canada for this large 
 supply, if they had put a duty on it. they would 
 have had to pay it themselves. As regarded 
 meats, we had only exported to the United 
 States one-half of what we had imported. The 
 imports were $876,96.3 ; the exports $434,890. 
 The effect of their imposing a duty would be, 
 that instead of our exporting to them our $484,- 
 OUO worth of moats^t^ud importing $876,000 
 worth of beef, bacon and pork, chiefly pork, for 
 our lumbering establishments, our lumberers 
 would get theirj'supplies/rora our own farmers, 
 instead of buying Westero pork. Of butter and 
 cheese, the exports and imports were almost 
 alike in amovint, bat with this singular diifir- 
 ence, that we exported $340,899 worth of bat- 
 ter to them, and they exported $306,618 
 worth of cheese to U8. Oar export of wool wU 
 considerable, and wasgiQwing. tuty«tr'H 
 
MMBOtod to |1,3SK733, «gftlnit nn !»pQrt of 
 •174,071. rte dfUcrlpUoi of wool w« exjfort. 
 cd.to. tUip Ui|ite4 8(4tM wAi fl««QtiftI tQ their 
 iii4niifiMp(|iirt|ri, Md ^(itj iook II tttm ua be- 
 c«l)|9 t^T «ou|d (utt j(«t * botitr ^rtiqlo, or op* 
 mfi »al\fi!m%r tUir purpOM »o/wl)6r« 4)m. 
 
 
 f 4tttjr, CO M to nel6d* p<ir 
 w^f l}i§jf^4'oa\d t*T« citbet to c^niD» (inir 
 node of .mtnaftetdra, or to And wool thitt 
 Would kolwtr tUir t>arpoM in lott* oth^r pftrt 
 or (hie world. Of other product* of animali, 
 ttMTB WM «n import of $814,509, againit ex- 
 pert or|i391,000. With respect to agriculturnl 
 praductioDi, the trade wai naturall/ two-fold, 
 cOvritioK iq wb^at fnd flour, the pi ices of 
 wWuh wf ^ i^Vf yned ^ the conAumpUoti of 
 ti^ Kuropeaa tnarVe^ and, in cparse graiut, of 
 which (be jprioB w^g chiefly fixed by the con- 
 •q[tqption of thia cohtineat. The trade in wheat 
 •od'tfour might be conaidered as a transit trade. 
 The price was not regulated by the American 
 market, nnd the American market did. not con- 
 ■noie these ftHicles. The United Spates export- 
 ed to the Maritime Plovinces alone abput as 
 t^uQh as thej imported from us. (Hear.) Being 
 •.transit trade, the Americans reaped the bene- 
 fit of it^tbey had the advaptag^ of tran^port- 
 ittg it And of the commeircial profits th^t arose 
 fh)tQ j(rani«ctitlg it. The effect of preventing 
 tltKi coptinu^Bce of that trade would be that if 
 w^ siicONdtid, as he trusted we should, in cs- 
 tabUibing p^iil^er commercial relatione with 
 onr ^n^ritime bt^thren, the trade would be con- 
 diwit^d directly with the Lower Provinces in- 
 stfia;^ o^. as, npw,. With Boston and New York. 
 (Be4ri hear.) As to the trade in coarse grains, 
 the ic'ailewas lomewhat different, but the same 
 argiitai^iit bield good wliiiih be had used with 
 reteteiice to liinqber. Indeed, It applied more 
 itroiigly to coarse grains than to lumber. It 
 lumber could not bo tarried tar, except by 
 water, it was clear that grains like barley and 
 0|tt8 could not. Now, the market for thi-so Ar« 
 tides was to be found in the manufacturing 
 districts- of tlio United States, and wo knew 
 that by imposing duties on them the oust 
 of manufacturing would be enhanced, in which 
 case it was plain that while the New 
 England manufacturers were now complaining 
 of th^ difiiculties of competing with the fprejgn 
 manofacturers still mure Would they complain 
 then. (Hear.) We should hear an outcry 
 from them which the American Government 
 would have to meet, cither by allowing tbc.^e 
 grainii again to enter free, or by increasing, the 
 custoptsMuty oh foreign ipadtifkctures, which 
 iner^as^ the Nol-tb-West WOhtd : r^sist.and re- 
 seat. '(A<^ar.), $ut'wi^!Te we ejtpohed a l^rge 
 amount of oats, b'aHey, &c., Worth about four 
 •hda-half .ttiilUoji dollars'^wt imported nearly 
 91,|Q0,pOQ worth of Iqdiah corn, jtnd, . (^parse 
 gttins. Now lodian corn WjU used to a great 
 cxtiBtit in thiii country in our di^tii)eri04,and if 
 th« Amari^ns' riefused to take; Oti):, coarse 
 ghiins, )l wdiild beqotqe necessary for . <^Ur dis- 
 HmkS^. ^ *«»• :i5iS,A«>>f^«ib d|ittilie>9, in 
 
 conrenient to both partltt. nay, It ^onl4 ht lo* 
 jurlous to both, but t)M itnbbipif'l' oH^M', Wiqalld 
 be to chani^the natufa ofy ' "^ 
 
 ^m\ 
 
 Bik£l^^%k^iinti' oujr, Aarfey, 
 ihim' wy^jtJjiiy Wurd g[row 
 
 tfiteVigfte^ljo ni^ ^eir 
 
 W ytt^'ihliil y*, ' w:lihe 
 " the exciilake Wtmiaf U In. 
 
 riftd on on either 'ndiolr' 
 There wen ottwr iyArAAP 
 not detain tb* Oot^lttM 
 r«(|>i«no« to thftn, 'Tm 
 wat not iait tmJMriA^t (al 
 
 ' ' ig>,v If: 
 
 was a growing' ({.n^y 1t\M'.\M" tot* ,.„ „ 
 oess to the AmisficaA markat tbr bu^, onii, >t 
 should lose the idraOtago of a >iafiit'^ttlt 
 which we could comomnlOAte ^ ttUtJfriipb <ti a 
 few hours, and by itnail iAii,coupl*,df dm, but 
 at the same time Itwu notJQb Ameri^'nur. 
 ket which gave valaa 'to the proda^ bf tbo 
 mine. Tbii was gi4<eo by tb» -demluidi of tb« 
 world at Urg^, aid tiMmgh - 4ka ' 'Ainarfcans 
 might dopriire us of the priTilagO of aMling 
 our oraa in their aiarket, and- forto our frad* 
 in minerala into a diObront chMmal, they oould 
 not prevent ua from raialng our . ^a and 
 disposing of them abroad. (Ucae, .hrar.) lit 
 the, ca^.of thf flabariea, It waa.aiDgttUr,tlutt,w« 
 imported from the Statea • graat dtal .mora 
 than we exported, the ex|)orttf.iMia|t t09,316, 
 while the imporU ww ft267i961. lUffnfffmtd 
 the'importa wwf of nan apd md, o^l i.tpat. nad 
 come fro\n tbeJ^ower ^'rbv^nceahy .iffy of th* 
 United Qtatef.' Our ' fmporta of lMl9^faoturea 
 were qfcouraa very much larger tpa^ ow ex- 
 ports, but it was wortb nptioe Uiajt wei h^ ^ex- 
 
 make or not, bii^lte ' wk|:",^ya)r«, tb4^'"l|lit.Wrly 
 considerable orders I^ l)Of,p |r*oeJvodftMk>j{^p* 
 erican booses, and it.w:w;^t|Wb'a( w'ijii^W 
 that our manufaclnrera, ^r^^jln a.jl^|io)|(,^fpl|I 
 goods to .be Anw^^invMAtiL ctfin ,a»!^.ppiy-' 
 ing the 40 or 45 p^r cent dunes tp ;w^)^h.'jt^'y 
 were subjected. TMs wm a gdod i|ii|nt,f^d]o- 
 dicatcd that the period was arriving when tliey 
 would require no protection at i^ll to onablie 
 them to carry on their business. (Bear« ^^r.) 
 To sum up. The expiprta to the United ^tjitM 
 which might be said to be dep«i)4<ini op ,.tha 
 Reciprocity treatyr—that waa, .tho,b|Ui^c^'of 
 exports over imports-TTwia*— 
 
 Lumber,, about. S5,P0Q|00p 
 
 Coarse Oraina 4,i6oO,0Qb 
 
 Animals I^!i00,()(>0 
 
 [The trade in aoimaU wa9 . mnch 4arcar Uat 
 year, but thia was about the average.! TJhua 
 a balance of about lOj milUonajof our f^ports 
 wi|i3 mi^e, or i«BS. .dffp^ioideDt ,qn the..TM|at7. 
 That waa About theimouot they, opoJ14offfeot 
 by levying tA^iop OlvtiHtidifemiiytppminQtioQa 
 of thta nouQtry,.,Vft would wot ^apoai a«y of 
 thA iirguaie^ta, i|f itjt, .nnp^pt-ito «(cti «^lt, 
 but j^e pcouliar », pysKiqa i vt r ,tb»t 
 portion of therA«ieriM« iwrket, KWcfc .T»M 
 
 supplied ttpm qMQ|i4»iw)i> mcMUfittklMioMi A«t 
 thiiiki^Uw w<wW.^4' •fc*'*^'*?'' i»MiW» to 
 impoae:4tttje«r«a 9«r!,Koduet#. jt-wr if .ttoy ,dfd, 
 thex w»uid not. ,w»i!»Jyipciewahtfc«.,oo«/ of 
 •fwsyi^m of .tlwie*rJWh#fXa$i^ 4i a1l)«|ra(«»wn 
 QOHJPtry,ob»fe ^lOyitlWWKiiMf^a^^fliMAMiiltiO 
 
 pajF,; tkiB.\4jttj: 09^1^ fvm^^ tiif/diMoiMd' 
 frua, «t«90di,fW09tM il^t^^'Mfimmtisp. 
 
 «oiPi^:tft,ti>itilr*^i»M»p,M$yo99u,||HJii9if!i 
 compelled by drcumstanoet to Uws $X tb» poi* 
 
 im^>'^_< 
 
Sk#'':i 
 
 
 tkmt M 
 
 iht, bat 
 
 I bf tb« 
 d« oftb» 
 
 of iMUog 
 otr tr^d* 
 Ihay oould 
 .^t And 
 hMT.) 1» 
 
 »r;»h*V*» 
 ML .nor* 
 
 ^y of. th» 
 ,gq«^fKotartt 
 >a^ oifftx- 
 
 lU to «MWe 
 Hew, >5«rr) 
 Jnlt^i4 ,^t#t«t 
 
 >,P09,OOP 
 kOOO.PQO 
 »^500,<)|t>0 
 ,1, Aara^r iMt 
 
 •r»g«.]; TJ»« 
 f owr wports 
 
 ^•pf^iwyof 
 
 » iMcii •«*». 
 ,il I ...of . I ,«>w 
 et, "WWc]. HM 
 
 ntloou 
 
 
 «il)illt7 of ita b«lag diverted, w« luould not 
 iiiok >iO much at th« proportion it hon to the 
 total ri|>orti or importa of the country m to tlie 
 proportion it bore tu tbe wliole products of the 
 indoatrj uf tho Province. (Hear, hear.) We 
 ought not to conclude that because, snr 30 per 
 cent, of our esports went to the United State*, 
 'iS per cent, of the industry of the Prorinee 
 MPOuld be ))«rulvced if they did not go there 
 The worst result would be the change that 
 would have tu be made in a certain amount of 
 the productive labor of tbe country. Labor 
 rendered unremunerative in one direction must 
 be made piuduclive in another. U was so in 
 manufacturing pursuits; it would be so in 
 others. Apart from the derangement ot com- 
 mercial transactions, which would undoubtedly 
 bo a source of annoyance, the ouly consequence 
 would be that if we bad an absolute interrup- 
 tion of the American trade, we should hare to 
 t^hange the character of our produce before 
 Bcuding It to market — our productive industry 
 would not be paralysed. (Hear, hear.) He 
 tliouglit the Oommittee would agree with him 
 tliut \ro could do no greater service to the cause 
 tif Kt xiprocal Free Trade with the United States 
 — -wu could do nothing better calculated to 
 bring about such a state of feeling in the United 
 tSlRtes as would lead to tbe renewal of the 
 treaty — than to do away with exaggerated 
 views and ideas on one side or the other. When 
 the Americans found that the loss of their 
 trade would not affect us so seriously as 
 to change tho allegiance of the people 
 of this country, they would, in all likeli- 
 iiood, commence to exteud commercial facili- 
 ties to us again. In this connexion he must 
 remark thut when a gentleman occupying tho 
 important position of the chief representative 
 of the commercial interests of the United States 
 in Canada asserted that the loss of free trade 
 with them would affect our allegiance, he 
 shewed a most lamentable ignorance of the 
 state of that trade and of the country. ^Hear, 
 hear.) lie (Mr. Gait) could not think such 
 views were sanctioned by the authorities to 
 whom that gentleman was responsible. (Hear.) 
 to do away with such views as be expressed it 
 was essential we should have it clearly and 
 porftctiy understood that we were not so de- 
 pendent on this treaty as was supposed. (Hear, 
 hear.) Tbe political quebtion was quit* distinct 
 from tbe commercial one. The American poli- 
 ticians said themselves that they desired us to 
 be in such relations with them Uiat more com- 
 mercial intercourse would follow. They did 
 not desire a suspension of trade with us, except 
 for tbe purpose of forcing us into annexation. 
 If then we could show them that the trade was 
 not of such magnitude that its intermption 
 ifOttld produce a complete change in oar hopes 
 and Mpir<itions, vaA render us willing to aban- 
 dpn our whole fkiture, we shonld remove one of 
 t|ie greatest obstacles to the re-esUblishment of 
 ibtimftte tradtt-xeUUons. (Hear.) Agaib, it 
 WW d^MT tbat another <4m8 of people we had 
 
 et was Uioae wno wereltonesUy ooavinced 
 rttad« n^idai; f^ "rreikty Was Tety mnob 
 
 .•iTMitAKeotu \9 .OMutd* than to the 
 TiUm Qtitu; 10 fATaatMeooi, Indeed, to 
 
 t« «M4wt«wl mm W t • """* 
 
 wi^ to eater into • hargaia with ^ TIait«d 
 States by laying down qor haod* cad ■•yiayr 
 wemaatooac«d««T«rytbing tiiay m);«<). B( 
 contended that this WM not tb* position of Om 
 nada. He admittsd that the Treaty wm M|lr 
 portant.— that there were important iQtersfts 
 which would suflter if It were lateri^red witbw 
 but he denied that they were so important that 
 we should give up everything In a oonuneroial 
 and financial sense to have it renewed. (Bear.) 
 We were called on by the Detroit Convention 
 to enlarge our canals— to give Uiem certain Ur 
 suranrt's with regard to the use of these oaaw 
 — aiiiu to alter our customs' and other dntles, 
 in the sense which they thought wottl4 !)• 
 more advantageous to their manufacturing 
 interests than at present. Now, we were 
 prepared to enter into discussion on all these 
 points. We said we were satisfied with Uk 
 Treaty, though it was not so advantageous fo^ 
 us as wo could wish, and asked them if they 
 did not desire an absolute suspension of com- 
 mercial intercourie, to tell us tbe points which, 
 in their opinion, demanded modification. No.v, 
 tdting the Detroit (Convention a* an exponent 
 of the views of the United States, we saw th»; 
 the enlargement of our canals was one of the 
 points urged by them. The position of tbe 
 Government on this subject was dearly and ia- 
 telligibly stated the other night. We had ni/ 
 trade ourselves which required such enluige- 
 ment — no trade which of itself would Justify us 
 in enlarging the canals. We conld only b« re- 
 paid for such improvements bv obtidning th« 
 American trade and making it pay tpju, or 
 otherwise contribute to our reveaue. If, then, 
 the Americans did not want to have any tr^de 
 with us, it would dearly be tl^e gjreMest mis- 
 take in the world to enlarge oar canals ; tbftt 
 should only be done In the event of the Ameri- 
 cans desiring to send their produce by our 
 routes. It was very well for them to ask us to 
 enlarge our canals, so that they might havo 
 some check on the rate of toll taken on t^ 
 Erie Canal— all very well fbr them to demand 
 the enlargement of our canals, whether tJE^ey 
 used them or not— but he thought that when 
 they came to ask for It. we might very fairly 
 refer to some points which requ^d to be alter- 
 ed in our interest. There was, for instance, ^e 
 registration of shipping, and the admission of 
 onr vessels to their coasting trad9. The Gov- 
 ernment of Canada contended tb^t the mteresti 
 of the Maritime Provinces were identical with 
 those of this couatry. Well, we sbouldhava 
 to consider whether the facilities we "n^n iwk94 
 to fhrnish to the North West to re^oh afo|«{|;a 
 market, were not of spph value as to ^wf us 
 in asking that our vessels should \m 94inltti»4 to 
 a particmation In their (casting tra4«« [9ear, 
 hear.] The Hegistratioa of Shippii^ wa|B (^ 
 great Importance to the interests Of j(lw very 
 place in whioh tbe House was aow aittiag. 1% 
 was to Be hoped the AtPeritMi Oovara^sml: 
 would take a difsnnt ▼low of t^ la tn^sm 
 flrbni what they had tt)kw bentonr*. ^U|^ 
 numbers of Amer|caa abips bft4 bmi:tr*ni|w^ 
 to VagUsb owoeKi dvfag jUie h^ iiVt ^it 
 would be vary dUBouJt, If be uii(|ttrftoo4 ijb^ic 
 lAw •right to nt tbeir nglstiici cili»QMl« 
 
 1 na anite idaia toaar Mki 
 
-;,- ; ..w.mi<^m^:.: 
 
 10 
 
 ftt what Waa passing ia the United States that 
 the question of their revenne had a most im- 
 portant bearing on our commercial relations 
 with them. That country could not sustain 
 vet/high duties on a variety of nrticies, without 
 a great deal of illicit trade being carried on from 
 Canada to the United States. Ho thought, and 
 his colleagues too thought, that Canada ought 
 to perform the part of a friendly neighboring 
 country ; that we should, as far as possible, 
 prevent their revenue being subjected to fraud, 
 but it was at the same time clear that the check 
 whichcould be exercised by us on smuggling from 
 Canada to the United States was next to noth- 
 ing ; it must be checked from the American 
 side, not from ours. There was only one way 
 in which it could be effectually prevented — the 
 selection of certain articles on which the duties 
 should be so nearly assimilated as to present no 
 inducement to illicit trade. The Americans 
 had now a Commission sitting to revise their 
 revenue laws, which Commission was invited 
 by the Detroit Convention to confer with the 
 Finance Ministers of the British Provinces. Any 
 suggestion that might be made by them would 
 be considered in the most friendly spirit ; but if 
 we were to bo met by an absolute Chinese wall 
 of restriction ; if there was to be no intercourse 
 between the two countries, well, then, let them 
 look after their own frontier ; we would have 
 such duties as we pleased, and let tliem have 
 the duties they liked. [Hear, bear] He would 
 now leave the ^estion of our trado with the 
 States, and would like to be permitted to oc- 
 cupy the attention of the Committee for a few 
 moments by a reference to the state of our 
 foreign tr8.de ; that was our trade with other 
 countries b< sides Great Britain and the United 
 States ; and in the flrst place he would refer to 
 the trade of the Maritime Provinces. That 
 trade had not been so large as had been 
 desired, nor increased so rapidly as might 
 have been expected, because under the Re- 
 ciprocity Treaty they had obtained in the 
 American markets those articles they might 
 have obtained from us, which had been sent by 
 us into the United States, and by the United 
 States exported to the Maritime Provinces. 
 The actual results, as comparing several years, 
 were that we had imported in 1860 goods 
 worth $393,864, while in the fiscal year ending 
 June, 1865, we imported $511,570. Our ex- 
 ports had increased during the same term from 
 8723,534 to $1,060,067— an increase of about 
 25 per cent. From the British West Indies the 
 increase in trade had been more considerable. 
 Our imports were $15,802 in 1860, and $209,- 
 327 in 1866 So there had indeed been a re- 
 newal of the West India trade we formerly en- 
 joyed. The exports to the Maritime Provinces 
 had risen from $723,000 in 1860 to $1,065,000 
 1865, and to the West Indies they had risen 
 from nil in 1869 to $41,000 in 1866. Bat while 
 that liad been the ease with our own West 
 India; Islands our trade with the foreign West 
 Indies was beginning to assnme somewhat con- 
 siderftble dimenaions. This was particularly 
 the HUM u regarded CQbk,and he found tbs total 
 ralue tit arUeles imported fh>m the foreign 
 Weat ladlwL in 1864, was no leM than •1,048,- 
 946,ofirbmithenhKd oome bj way of the 
 Sk Lsimiio^ $S55«146 : tv wtj Of the United 
 am^l^mt anlbj inir or Vota Seotift, 
 
 $126)447. The general foreign trade of Ca- 
 nada amounted to so little three or four years 
 ago that it was scarcely worthy of notice. In 
 I860 the total import trade of Canada from 
 foreign countries, except United States, 
 was only $905,260, and in 1866, notwith- 
 standing the depressing influence of the Ameri- 
 can war, it had risen to $3,274,614, an in- 
 crease of nearly four-fold in that short period. 
 [Hear, bear.] It now amounted to eight per 
 cent, of our whole exports instead of only 2^ 
 per cent. It was gratifying to the Govern- 
 ment, and he was sure it muat also be gratify- 
 ing to the House and the country, to know that, 
 at a time when we were threatened with the 
 interruption of trade relations with the United 
 States, we had trade with other foreign coun- 
 tries, independent of British possessions, which 
 was growing with the rapidity indicated by 
 these returns — a trade that now amounted to 
 about one-ienth of the whole industry of tlie 
 country, if trade with the United States woro 
 put an end to to-morrow. (Hear, henr.) These 
 observations respecting our trade with the Unit- 
 ed States, the Reciprocity Treaty, and our trade 
 with foreign countries generally, acquired per- 
 haps additional importance at this moment, be- 
 cause we knew that, under iustructions from 
 the Imperial Government, representatives from 
 the different Provincial Governments would 
 meet in this city during the month of September 
 next. It was peculiarly happy that, at this 
 moment, such a meeting was to take place, be- 
 cause we had to consider two points in refer- 
 ence to our trade with the United States. Wc 
 bad to consider first — what action should be 
 taken in case the American Government should 
 undertake to enter into negotiations for the re- 
 newal of the Treaty ; and we had to consider, 
 in the second place, what action should be taken 
 if it declined to negotiate at all. Now, it must 
 be clear, with reference to the trade of the 
 MariMme Provinces with Canada, that it was 
 most important that this meeting should be 
 held, and thai a common understand- 
 ing should be arrived at by the repre- 
 sentatives of the different Governments. He 
 did not ap])rehend that there would be the 
 slightest difficulty in negotiating, or eoming to 
 an agreement, upon either one point or the 
 other. (Hear, hear.) The Canadiavi Govern- 
 ment did not desire to engross the negotiations 
 that might take place respecting the Treaty. 
 If they stood alone, they would as much con- 
 sider the interests of the Maritime Provinces as 
 their own, but on this occasion, they would 
 have these interests represented by gentlemen 
 from the Governments of those Provinces them- 
 selves ; and they would have the advantage of 
 obtaining from them information on points re- 
 lating to those interests, and by this means he 
 did not doubt that they would be able to unite 
 in placing before the representative of the Im- 
 perial Government at Washington the united 
 views of the Governments of all the colonies, in 
 reference to trade with the Unitei States, and 
 especially with reference to the fisheries of the 
 Gulf of St. Lawrence and NovaSootIa, which 
 formei tuoh an important part <^ thf^t traSe. 
 Bat if, anfBrtanately, we shoald be dllM^ 
 pointed ia oar aatftipaUw that the ipa|n<iMi 
 QaMtaiBtnt wonlA mMt wo t 
 tb«t«D«Wtt«rai ' 
 
 receive 
 
 z. 
 
11 
 
 come more than ever necessary that an under- 
 standing should be had with the Maritime Pro- 
 vinces, in referer.ce to the future of our trade. 
 It would become necessary with regard to the 
 supplies they now obtained from the Urited 
 ■states, and also with regard to the means of 
 transporting their products by way of the St. 
 Lawrence to the West ; for he did not doubt 
 that, even if the Tieaty were not renewed, the 
 fish and other productions of the Lower Pro- 
 vinces would find a large sale in the Western 
 iStates. It would also become necessary to 
 understand what articles they wanted with 
 which we could supply them, and what it 
 would be advantageous to receive from them. 
 This Goveroment certainly felt that it would be 
 advantageous to meet their representatives at 
 Ibis time on these and other grounds, and 
 tliey hoped that this meeting would hare re- 
 sults oven beyond that. He did not refer 
 now to political results, but to commercial ones 
 simply, and he thought that they would be 
 able, by putting their views and opinions to- 
 gether, to see how far it was possible to assi- 
 milate their several commercial systems, and to 
 provide that the industry of one Province 
 might have access to another without meeting 
 any obstacle or burden whatever. [Hear, bearj 
 Again, they had reason to believe that the 
 European trade of the Lower Provinces could 
 receive very considerable development, by an 
 extension to them uf the concessions which the 
 French Government with great liberality had 
 made to Canada. To this country only, of all 
 the British Provinces, had been extended the 
 privileges of the commercial treaty between 
 France and England, under which our ships 
 and lumber were admitted into France on the 
 same footing as from England. This privilege 
 had been given to Canada alone, because, pro- 
 bably, it was looked upon as'tlie largest and 
 most desirable colony with which to cultivate 
 commercial relations. Under it an extensive 
 trade had been growing up with France which 
 amounted last year to about three quarters of a 
 ralllion dollars. The meeting might be instru- 
 mental in obtaining a similar advantage for 
 the Maritime Provinces, for whose productions 
 Franco afforded a very considerable market. 
 Ke then alluded to information collected with 
 regard to our trade with the West Indies and 
 South Amoiica in the event of its being neces- 
 sary to seek new outlets for our commerce. In 
 conclusion, he thought he would be warranted 
 in referring for a few moments to the altered 
 position in which the House now met from that 
 under which they had last separated. For 
 :Ome months before the House rose we had 
 been suffering in common with the neighbor- 
 ing country from the vast civil war there rag- 
 ing, which had not then approached that period 
 when any one could prophecy its termination. 
 It had produced, among other lamentable caa»- 
 es, a very great and increasing degree of bit- 
 terness between that great country and 
 ourselves, and at that moment we were snCfer- 
 ing, not only from the direct effect of the war 
 intlMUnit«dStates,butal|K>fimina feeling of 
 
 
 •■^^mf^'f%,^ 
 
 duoed by the war, bnt from the fear of hoatUi* 
 ties extending to ourselves also. Erery one would 
 remember that, at the time the Government an- 
 nounced its intention of sending a delegation to 
 England, the feeling amongst the public was 
 one of apprehension. Defences and fortifica- 
 tions were the common talk from one end of 
 the Province to the other 
 
 Hon. Mr. HOLTtJN— For which you are re- 
 sponsible. 
 
 Hon. Mr. GALT thought the responsibiity 
 might rest as fairly upon other people as npon 
 the Government. The irritation in the United 
 States had given rise to a hostile commercial 
 policy towards this country. We had been 
 subjected to all the interference and annoyance 
 caused by the passport system; one never known 
 on this Continent before. Our trade with the 
 United States had also bieen subjected to the 
 greatest possible inconvenience by the Govern- 
 ment requiring Consular certificates, which 
 were both expensive and troublesome. They 
 had given notice of the abrogation of the Reci- 
 procity Treaty, and this hostile commercial 
 feeling many feared would change to hostility 
 in a material sense. We were also suffering 
 from bad harvests, which were considerably 
 below the average, and the country, from all 
 those causes, was in a generally depressed 
 stdte. Politically a very serious check had 
 been given to the policy which the Government, 
 with the sanction of a very large majority in 
 the House and the country, had endeavored to 
 carry out successfully, the policy of Confe- 
 deration. They had received a check to 
 that policy to which they looked for the ter- 
 mination of our sectional diflSculties, by the re- 
 sult of the elections in New Brunswick. At 
 the same time, too, instead of having the support 
 and encouragement of English public opinion, 
 we had it to a great extent against us. Those 
 who advocated a change in the colonial system 
 and the severance of the tie which bound the 
 colonies had got hold, to a great extent, of the 
 public mind in England, and, consequently, had 
 produced a tone of feeling adverse to the colo- 
 nies, and which this country had not been ac- 
 customed to see prevail in England. (Hear, 
 hear.) Those causes combined bad unfortu- 
 nately produced on the public mind a feeling of 
 insecurity and discouragement which was pro- 
 ducing the most unhappy results in every pos- 
 sible way. There was a conviction in the 
 public mind that a change was coming, and 
 every one feared it would be attended with 
 great disaster, perhaps with bloodshed and war. 
 At any rate, the whole state of the country was 
 one of expectancy on the one band, and de- 
 pression and uncertainty on the other. The 
 Oorernment did not profesn to take credit to 
 themselves for changes beyond their influence ; 
 it might well, however, become, bim to con- 
 gratulate the House, the Oommittiee, and the 
 country on the fact that they nqw met Parlia- 
 ment only a few months after the period of thia 
 uncertainty, with almost an entire change in 
 theae respects. We had to oongnttnlato our 
 migbbon of tbe United Statef on tte twmfawr 
 tiw of tlMbr eiTil war, Mid qpoa liMir lotom to 
 tbe haUti oC peaoe, with an inflBttrty l aa i ai 
 
 *- 
 

 :.;i!?'' 
 
 12 
 
 ..* 
 
 ■I 
 
 
 oeeuioned conitant surprise, but id no respect 
 gtMtet tbku in one particular which gave at 
 the greatest pleasure, nanely, the sudden resto- 
 ration of peace over a country that hud been 
 oOBTulsed with a most gigantic, and destructive 
 war. As to ourselves equally with them had 
 the fears of war been dissipated. We no longer 
 stood in dread of armed bands crossing onr 
 frontier to ravage and destroy, or of having to 
 expend large sums of money to send volunteers 
 for the protection of our own people 
 and to prevent raids into the United States. 
 Besides being relieved from thoye bur- 
 thens and fears, we found most happily an im- 
 ]Mtived feeling towards us growing up in the 
 American mind. [Hear, hear.] He thouglit 
 that good feeling was increasing rapidly, and 
 that the irritation which our neighbors felt to- 
 wards ns— not so much on our account as on 
 that of Great Britain, but which was reflected 
 upon us— was disappearing quickly. He thought 
 the Americans were beginning to sec that the 
 Qovernment and people of this country had 
 discharged, their duties towards them, under 
 circumstances of great diflSculty, with a degree 
 of honesty and straightforwardness which,he be- 
 liered, they would see and appreciate fully in 
 the time to come. He believed they would see 
 that no step our Government could have talien 
 to prevent the outrages an^ losses which had 
 been inflicted upon them had been omitted; 
 that with our limited revenue we did all we 
 could to preserve peace upon our borders with 
 our neighbors ; and we were now able to find 
 an acknowledgment on their part in published 
 despatches that we had done our duty in this 
 matter. When that came to be generally re- 
 cognized by the American people he believed 
 the irritation arising from the hostile acts 
 complained of would be entirely removed, that 
 we would bo separated from any responsibility 
 for those unfortunate acts, and that the Ameri- 
 cans would recognize that they owed us grati- 
 tude and thanks for the way we had performed 
 our duties throughout the late conflict, when a 
 different course on our part would have entail- 
 ed upon them serious difRcnlties and losses. 
 Then in regard to the state of feeling in Eng- 
 land, he thought it would not be denied that 
 there had been a manifest change in the ideas 
 of the people there, and that the class of poli- 
 ticians who looked upon the colonies as a bur- 
 den instead of an advantage to the 
 mother-country was no longer leading 
 public opinion, but that the time had 
 again come when England regarded her 
 colonies as a main source of her greatness, and 
 that her proper policy was to consolidate and 
 unite them more closely with herself, as in this 
 position she would be able to stand the brunt of 
 any attack or any difiiculties to which she 
 might hereafter be subjected. [Cheers.] He 
 believed, fturther, that England [considered that 
 the feeling of Canada was one she might fully 
 dependupon, should danger ever come. [Hear, 
 hsar.] With ragard to tlOBftderation, he need 
 only vsHmt to ths d«q>atefae8 before tiM House, 
 wtaUsh ftdhr Miwsred the boast «f the hon 
 > IwCtetsanciuji thsi^ 
 
 Hon. Mr. OALT thought that lie rr ;.i«t(> 
 sanction given the scheme of uniting the colon- 
 ies, not only by the Imperial Government, but 
 by the people of England, and the unmistakable 
 way in which it had been mentioned in the Ad- 
 dress from the Throne, M'as an answer to the 
 taunt of the failure of Confederation. He 
 thought we did, therefore, stand in a widely 
 different positiou from that occupied in March 
 last when one of the Lower Provinces pro- 
 nounced against the scheme, and when we 
 were quite uncertain as to the view England 
 would take upon it, or as to her future policy 
 thereon. 
 
 Hon. Mr. HOLTON— Yes, the policy of co- 
 ercion. 
 
 Hon. Mr. GALT — The coercion was that 
 kind of coercion the mother country was en- 
 titled to exercise in exchange for the burden of 
 defence of the colouies. It was the kind she 
 could fairly exerci:^e, and not tiie kind which 
 was exercised in Cunbda in time past. [Hear, 
 hear from Hon. Mr. Holtou.] The Imperial 
 Government was burdened witli the expense of 
 defending these colouies, and if she was to be 
 considered as coercing us in expressing tlie opi- 
 nion that the Union would liclp us and promote 
 the work of defence, then he maintained that 
 was a coercion she was fully entitled to exert 
 But the coercion the member for Cbateauguay 
 meant to insinuate as being exercised was nut 
 an appeal to tlie reason, loyalty or interest of 
 our fellow-colonists, but an interference witlj 
 their rights and privileges and a use of stern 
 compulsion— 
 
 Hon. Mr. HOLTON— Tliat is not the compul- 
 sion of the Imperial Government, but that you 
 wish for. 
 
 Hou. Mr. GALT said we did not desire to 
 exert any such influence, but one that would 
 make them go heart and hand with us, and do 
 everything for the common good. We desired 
 to appeal to their interest and patriotism, be- 
 lieving that in so doing we wore using the 
 strongest kind of coercion. (Cheers.) Ho 
 would not have referred to this subject but for 
 the interruption of the bon. member for Cba- 
 teauguay. He was going to remark that in ad- 
 dition to peace being restored and the dread of 
 war removed, there was a prospect— whichjhe be- 
 lieved was now stronger than ever— -of the union 
 of these Provinces being accomplished. (Cheers.) 
 Instead of haviug a feeling of want of reliance 
 on the Colonial system in England, we 
 found the contrary was now the case. Besides 
 we in Canada itself had to thank Provindence 
 for having given us an abundant harvest, and 
 we might certainly look to this to restore gene- 
 ral prosperity. The people having suffered from 
 bad harvests, and the fear of an interruption of 
 industry by war, were now being reassurad, and 
 these disadvantages no longer Qzisting— we 
 might well hope that peace and contentment 
 would overspread the land. [Cheers.] 
 
 Mr. GALT concluded by moving — That in 
 addition to the stamp duties now levied therd 
 be bereaftsr levied on every prondflsory Hbta of 
 f 15 and under one eeat, and oauwuj promie- 
 
 •■"^v**-- 
 
 •^weiidtit- — -c^ 
 
 ■IMilliBKiP*