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Les diagrammes suivants lllustrent la mAthode. 1 2 3 1 2 3 4 5 6 '^ 'WTTTf'r^^ »• •.REMARKS ■i * ON THE 1^: EXTENSION OF RECIPROCITY BETWEEN CAIADA AOT) TIE UNITED STATES, (NOW CONFINED TO THE GROWTH AND PRODUCE OF EACH,) * TO MANUFACTURES, SHIPPING & COASTING, St AND SS7ABI.ISHINO A ^ COMMERCIAL SYSTEM ADAPTED TO THE * GEOGRAPHICAL POSITION OF CANADA. * ! -'Mf^^WVWM*) By WM. 1iA.1lilL.TO?l Sl&milTT. -^w^f/^^Mw ^ ST. CATHARINES: II. LEAVENWORTH, BOOK AND JOB FRINTEK. 1855. i Si ^ I i I ' '. <_ f ^i I -a i m 4 I r / i ^ ■'-.'.: i / . '.1 • i : <0> m ' . ' 1 .1 ' I :M *''; i ''':." *'. ■;,''^^- WiiV I . 'Mr A .i \ .■ ' ..' '■ ^ 1 fi' ; -^ ■, , III «^^'•• j'/y ■ ■,/«.?''' .•>; ■'-?/.• #f . V .-■.■'■ til Wi .'.•" I '■. . ,.'f "■ > '. 1 1. I ••> ■ '' 1 i ■ ; i; I' ' M, ;,(':■ ■'.'•I, i ! '. >■' . !■ .: 01: ' : I I ■ .; , REMARKS ON THE ' EXTENSION OF RECIPOCITY. To comprehend the advantages likely to arise from this bhange more fully, public attention is directed to the Report of a Com- mittee of the Legislative Assembly, on the Trade of Canada, and the Statements and Returns appended thereto. \st. The Report commences by pointing out the geographical position of this Province, on a Map extending from the Pacific to the Atlantic,— the magnitude of its navigable waters, — the peculiar natural advantages it possesses, — and the causes which diverted the Trade of the West therefrom; also, its diminution with Great Britain, — her North American possessions, — the West India Isles, and all other parts of the world, compared with its rapid increase with the tf. States. — (See pages 1 to 7.) It also contrasts the relative amount of capital invested in Manufactories, amount of Foreign Imports and Exports, and the average amount of consumption from foreign parts, per head, between the tvoo countries: and closes by submitting for the con- sideration of the Legislature, (page II,) First — The removal of all duties on the productions of the British possessions in America, . upon the same principle, and placing their exchanges upon the same footing, as between the different States of the American Union, or the German confed- eracy in Europe. Second. — Extending the principle of Reciprocity to Manufac- tures, Shippmg and the Coasting Trade, between Canada and the Uniteii States. Third. — Removing the public bounty paid by Great Britain to steamers running between Liverpool and New-York. jFbwrtA.— The removal of all duties on the raw material used in Manufactories, and on all cheap, heavy and bulky articles im- ported by the St. Lawrence. ' Fifth. — Removing evenr obstruction on the St. Lawrence, extending public aid in affording facility to its Trade, and con- structing the St. Lawrence and Champlain Canals, with locks of the same magnitude as those at Sault St. Marie. Sixth. — Abolishing the Ware-housing system, and extending a credit to the Importer, in its stead. ' The opinions, tabular statements, and official returns, both from the United Stkt^^ a,ntljQ above, that^ly a few simple changes are necp":' "y to iestilSiiteli a ^cmadidit Ccfrnmerciai Policy-, - 2nd. Canada has been made the victim of a scries of experi- ments, on the diflTerent Theories of Trade. Under jProiectipw, up to 18Sl|^ (except three yeairs: subseq^i^ent to ih^ Imperial Act of 1643,) her productions could; notibe shipr ped tQ the Market of the mother country, at a pifofit, from the duties imposed by the sliding, scale., n' ;! i. j. f?*iv v . ;: - • . i \ Under Bounties^ paid bv the Government of the Uiiited States, li^l' citizens were enabled to export fish fox! the support of Canada^ to the amount of £19,000, while our exports to the United 3tates only amounted to <£31,000; and the annual Boun- ties paid by Great Britain and the United States to steamers l:ie,tween NewYork and Liverpool, (page 3,) enabled them to transfer the Trade of the Western States and Canada from Que- bep to New-Yorlt. A more striking instance of the effects produced by the sys- tem could not be pointed out, than in the exchanges of ffsh, on which the inhabitants of . Catiada, paid one-eighth, or J&2,375, dyty,— f)ai4 freight thereon to New-York; thence on their ca^ nals and railways to Canada, and purchased, thorn at less cost^ although caught in the same waters, than from, our own fisher- ipep, 00 our own coasts, without duty. At the same time the CQUsurner in the United Statiss" was subject to a double tax on our, fish, in the payment of bounties and duty, averaging about 2ft per cent. each. I'he latter is removed, but not the former, - Un^eS" Free Trade^ wd hav0 lost all direct foreign intercourse by th ; St, Lawrence, and the capiital expended in our Canals conn !Cting that river, without creating a single Cotton^ Wool- len ,Oj:;Ir,on,!Rtanufactory, a Home Market, or any other equiv- alent whatever. These disastrous, results were npt paused by the a4c^tion of the principle of Pree/trade,— rthe souudne«^ of wlj^ichj cannot be controverted. The ncmQ has been ^8ed w^th-s out Its spirit : Free Trade without removing: Cqatoins )[)uti^ is> a fallacy. The effect of the policy of the late Sir Robert Peel, not to exact Reciprocity Jrom other countries, was to lessen the prices of the productions of Canada one-fifth, (the exact amount of the duty imppded.) as compared with the like articled in the United States; if therefore, it was the interest of Great Britain to adhere to this politiy, it is clear, that' the principle cannot ap- ply, or thit the corrmercial interest of the United Kinfidom and Canada are adverse to each other. " ' ' ' "' ' ' '' ' ' ' 3rd!. The most injudicious statenjents have been circulated on this subject. Canada has been represented to be essentially an Agricultural country: whereas, it is notorious that the growth of her principal export. Wheat, is confined to a very limited space, when compared with the West, viz: — the upper part of the St. Lawrence, the borders of Lake Ontario, with the pen- insulas of Niagara and Huron; and although the best Wheat in America is produced on the above frontiers, her position is more peculiarly adapted for Manufactures and Commerce, to which public attention has not hitherto been directed. Ath. Under the present system, from 20 to 40 per cent, duty is imposed by the Government of the United States, on all arti- cles manufactured in Canada; and 12J per cent, duty is levied in Canada, on the like articles manufactured in the United States. This difference enables the Manufacturer there to send his sur- plus stock to be consumed here, under the lower, while the Cana- dian Manufacturer is prohibited from sending his productions to the United States, under the higher duty. The only means at our disposal, is to impose the like duties on their Manufactures, which will counteract their unwise Le- gislation, and not increase prices to the consumer; and place the Manufacturing interest in the two countries on an equal footing. hth. Vessels can neither be bought or sold, or cargoes trans- ported from port to port, unless built or owned by individuals residing on the same side of the boundary: they are compelled to call at an opposite port, at additional cost; and even this eva- sion is not free from interruption. The effect is, to increase the price of freight to both consumer and producer, without any cor- responding advantage. The St. Lawrence being now open to vessels of both countries, there can be no good reason for con- tinuing tfiis absurd restriction. \ in « I II «■ ) . M e OOT7XISS OF TZ^JVIDE. '! .'i Qih, The Treasurer of the United States is required by law, to publish every year, a Report of the value of Imports and Ex- ports. Prior to 1850, the Trade with Canada was included in the returns of British North America: since then, it has been set apart; and similar returns have been published by the Cus- toms Department in Canada. ^;.i'. ..•s"!>rc;<..i:Tt fill i'''.'l .''■' ■>,: ■]■'.:>: ' United iStates Commtrce and JNltvigation Returns for 1854. y«lae of Domestic Goods exported to Canada, . , £2,627,593 " " Fbreign Goods, duty paid, ' ' 1,353,947 h 1^ .; . ; ):do.' free, (pp 40 to 136,) . 'I - i. ^ 345,637 '1 1 ) ?'n: ( '"'■'■";) - ■ ■ > i ' . ,, ,j I ^ ,,.,,. , '. ; . , ...,, Total Exports, £4,325,177 (■; 'j; M // V '': -.li.' • y:'s, .'.,.;/ <■• *"" ,, mi Trade and Mivigation Returns of Canadaifor 1854. Imports from the United States paying specific and ad valorem duties. Value £868,503,— averaging 32 per cent dutv, - - - £277,921 ~ '. . . . 12,743 "?- 8.571 - . 237,669 ;t 12,628 • - . ' - £549,532 , ' . / . 42,479 42,857 " 1,903,256 505,140 " £3,362,355 520,940 36 20 u Free. i>. \ £3,883,275 Total Imports. ^ ITTJI>^BER THREE. Commissioner of Customs' Report^ (JVb. 8, page 10.) - £1,336,770 Value of Foreign Goods passing under Bond, " .Purchased in the U. States, do. « do.' / on which duty had been paid, do. " ' Free, Domestic Goods, - - - :ii '. c, 299,428 144,021 230,605 2,835,525 Total Imports, £4,846,349 . 1 ; .1 I I , Commerce and Mivigaiion Returns of United States for 1854. .,,,, , ,. .^, Imports from Canada, (pagd 272.) .Mrnt i . . ^ Value, free of duty, - - » ;-, . ... fkit; ,! £95,000 paying duty. ••■.!i? .'.■•;■. r,ui!'' H:ot' .,i<>:'-U' i : 1,585,374 11>tal, £1,680.384 .f::'«",l!i^} '; •I) I sTXTXtdiBBzt Frva« , f : ( » "1 Id jVtl'f « .■•■.•;■ '.'.J ' Drade and Mivigation Returns of Canada, Exported to the United States, (No. 30, p 512.) ', . Frodaco of the Mines, '^■■' '■•*'• '■'•■■ Sea, .i.l>(«i;;' ) . ■. Forest, ; , . f^ , . ; . r , Agriculture, - !•' ) ** Manufactures, ** Liquors, *• Other articles. £69,540 i ^,., .,,,; ^ -• • 534,956 ,!'■ -10(1X0^ • i*. 1,493,691 V }, .i>/[ Now free, , £2,l»8,a5"2 Still subject to duty, £52.-205 2.836 8,356 ,r ' ■'.' ;. \ii £63,395 r' !.?«•■■■ Total, £27162,249 STTTX^rCSEZi SIX. ' '' •■■' ' 'MUI Commerce and Mivigation Returns^ {"po^^ 360.) Value of Goods in transitu through Canada, for the United' States, Same, through the United States, for Canada, (p 3) 'TfC ili; .,' .• . xrXTX^SEXi SB-VS3^T. £123,331 2,oio,f?ai Value of Im. [p 268,1 iiOS^O. £1,648.715 Value of Ira. [p 253,1 in I854Z£3,833i From U. States do. Ex. [p 4Jl, 1,405,138 Exports, [p 512,] •• 2^2,305 £3.053.138 '. -tP! ! . '• (»;;;; >!■"<• 1 1 .i ■ 1. 1 rt" £6,045,544 The Statement of Revenue collected in the 17 Ports of the United States bordering on Canada, from 1830 to 1849, (19 years,) before the Com Law of 1846 came into operation, (App. to Report of Committee, No. 10, page 39,) was $1,600,000: the gross revenue collected, near $1 ,200,000. t , , r,- •'I. . i'';'Ki:.t vpl Returns of Treasurer of the United States. In 1854, the Talue 9f Imports from Canada, were • • $6,726^133 The amount of Revenue collected, • • l,052,3b8 o The expenses of collection, '- 'i< • ^ •>• 137,190 • ii'i ;'. ■■;: ,^- t ^tt :.!,■-•' i ^^ . '■ ■. ' <■ ' .'i . !.!i ; • ' . ' >; * i- ■■• ~~~~"~~ t, .< XO-XTItfCBSXi TB3ST- , ' Returns of Treasurer of the United States, j , ; Statement of articles made free by the Reciprocity Treaty, (No. 6, page 36.) Jr :^o -ws^'/r., ■■^.u • ^' ;■ ' ; •' . 6,097,2031 .000,000 In 1854, the value of Impiorts ft6m'0anada, were . , . Amount of Kevenne eatimftted on above. \ •] ■'%'4 : ,) If i 1 The above official Returns ara exhibited for the purpose of pointing out, in a concise manner, the practical operation of our present Commercial Intercpurse \n^ith \he United States. Tabl^ No. 1 — gives the value o^ foreign articles imported into the United^States, on which a duty is Hrst paid, then again exported, and a second duty paid when brought into Canada. No. 3 — shews a reduction of one-tenth on the above; but as the Trade Returns give no separate statement of the amount of drawback returned in the United States, the real amount of this double duty cannot be satisfactorily ascertained. However, more full information will be afforded in future. (See Report of Committee, page 28.) No. 2 — gives the amount of ad valorem duties paid on Imports into Canada, — articles subject to 32 per cent, will be found in the Report of Trade, (page 34.) It will be observed, that near one half of this duty is collected on Tea, Coffee and Molasses, on which the consumer in the United States pays no duty. Nos. 4 and 5 — ^give the value of Exports from Canada to the United States, which, during the past year, were subject to 20 per cent, duty: this duty is now removed. The amount of Exports still subject to duty, are not worth naming, and fully corroborate the Returns of the United States Treasury, Nos. 3, 8 and la. No. 6 — gives the amount of foreign Imports into the United Stites, through Canada, by the St. Lawrence, and the amount of foreign Imports into Canada, through the Atlantic Ports of the United States, — from which it appears, that the once flour- ishing trade in British merchandizej on the ^Canadian frontier, with the United States, has disappeared, as well hs the transit trade, for the supply of the interior of Canada, .via Quebec. No. 7 — shews that the trade between the United States and Canada has doubled within four years, under all the disadvan- tages of the high duties in the United States, , ^ Nos. 8, 9 and 10 — convey still more important information. ' First. It proves, that during a period of nineteen years, the expense of collecting the revenue m the United States opposite the Canadian frontier, cost the public $400,000 more than the whole amount received. ,. ^ , rv ' Second. Tha^ the revenue from our productions, since the Corn Law came into operation in 1848, increased over one mil- lion of dollars. V i- Third, That the amount of revenue on those articles freed by the Reciprocity acts, will be reduced about one million. If correct, the revenue, in future, on this frontier, will be reduced far below what it was in 1848; as before that period a largo amount of foreign igoods Were exlported to the United States from Canada. "xr n o o :>£ ' J. r, ;ri .> i ^These Offiqiftl Returns, covering a series of years from 1830 to 1854, prove conclusively, that a change in the commer- cial intercourse between Can^cia and the United States is ine- vitable. The revenue on this frontier rvyUl not pay the cost of cpUection; t|t»ereforp, the people of th^ United States will not find it their interest to continue the support of eighteen Ports of JEntry, on t^Q frontier of Canada^ at an annqal outlay of tlSTyOPO. Nej^hqr jvill it ,be the interest of the jpeople of Can- ada, after thpse eighteen Portfj are withdrawn, to Keep up eighty difierent Customs esftabUshments in the interior, at an e?cpendi- ture of 1200,000 per *nnum.* (See Estimate for 18M.) . .,, , Vk Under our present systehi, each Province maint^ns a se- parate Government, althoUj^h the united p<:)ptilation does riot equal that of some of the srng)^ States in thb AmeHcab Union. In 1851, their Trade was taxed in the following ratio, per head: Newfoundland, - - , - 15^ 8ld. New-Brunswick, \ t • ! - ' '■', 18s. Old, ,'^ Canada, ^ - ,-, , r, •, 9s. 4d. j,. Nova Scotia, '- : "^ , V 7s. Sid. Prince Edward^s Island, - - 7s. 2 id. {See Report of Comtnittee, pages 32 and 33.) There are no means from official Returns, to ascertaia wheth- er this average has increased or diminished since^ 1851, except for Canada, which, from the public acc'ts of 1854, (Na 2, page 14,) shew an increase to 12s. 3 id. perhead^ — exceeding the av- erage amount of duty in the United States, during the same year. [See Finance Report, No. 48, p. 144.] Since the Offi- cial Returns of the two Governments were brought under the notice of the Finance Committee, in 1850« these facts have been ^ denied by the highest authorityp although without a shp,dow of proof. The latest Returns are again re-produced, to prove that every expenditure appertaining to an Independent Qovefn- ment in the United States^ [from which each of the 4^ove de- pendencies are exempt,] are sustained with less TTaxes on Trade than for the expenditi^-e of the Colonial Government in British * Since the above was In the bands of the ^nter, it has been ascertained that on the United States side of Cie Sva^ensioa Bridge, where seme 30 ciia ptas daHyr- .from March to Septanbei;, net an article Jiaf been entepBd except w^ggoqs and hafnes8» spars, ornaments, and one barrel of ale,<^he dtttj not having ^losched on s tBovsAifo DOLLARS fof the stoason. ' ' I !i m 10 j>JortIji Ameriqa. Therefore, an,>eatire chitoge; in our Comiperr. cial polic}ri^.npt only desirable, but ipdespens^bie. ;)<• , t'.|< |,Ui"(t 8M. The advantages to ari^e IVoni the introduction of this princijjle are obvious, \'' ;'•''' .■^}'rnKiihwK>,.j'>'ui .i..<: .., . ;:.^{ Ga{iital will be introduced ind expfendiftd in the' erection of Manufactories, — a' poptilatiGh now idle, will find profitable em* pldy^ht during the long^ wintfer seasori; without diverting the iiidtis^ry of a Single mjtn from Agriculture,— ^iir extensive wat^i* powei*, now usetess, will bd conVei'ted into a source of wealth) and out lakes, rivers, canals and riiilWays, How unproduetivie, will transport the raw material ahd manufactured articles, 'at thes lowest prices, frohi or id anV portion of the Continent, at tf profit. With those facilities, and every material for building^ bread and every description of ■provi8iona:at the cheapest rates, no re^^pn cai) be assigned^ when plaped upon the same footing, why.Caiia.dashould not manufacture the like article i\s cheap and extensive as any o^he^ portiion of America. ' ^bip building will ,spi;ing up in eyery locality where the ma- terial, labor and skill can oe furnished on the best terms, and reduijejl bj^ cjompetition, to the lowest rates. ; Th6;pr6diictions oh either side of the boundary, WiU reach the ocean by water, through Caiiada, during the summer, and the United States during the wmter, by the shortest routes and £it the cheapest Trates,^ — thud s66uring the best markets, in all seasons, and at all times. The productions of Agriculture, Maftufafetprieis, Ltrmber'anid Fish of the North, will be exchan- ged ''fbrSu^ar,Molass69, and the tropieal productions of the SdUtb^ on the'same terhis ks between Maine and Louisiana. In' place of from due-reightl^ to one-fifth of our industry -be'ln^ lost, in the. ej^cjiahge df our prodi^ctions, the grower Will VeceiVe tb6 highest prices for every article he sells, and the cOnsiihiei: "^H be furoishibd, kt the lovvest prices, with every .krticl^ that h^ pufbb^s'es, aiid thd profits will be added to the 'gehe!r*sil Wealth of bo^ tn short, every individual Vtrhbsiaiind a living^ 'bV labor, is personiaily interested in the early ■adop^;^^ ' ':;" V''- ' '914^ The bnlybbj^^^ commierdial jio- lilonial Government were then powerfess, wholly dependant upon the Voluntary action of the Government of the United States. We now stand upon a very different footing. Then we were most interested in seeking admittance for our Agriculo tural productions in their Markets: now, they feci most interes- ted in seeking admittance for their manufactured productions in our Markets. I, The distrust which existed on this subject, has in a great mea- sure been removed; public attention has been directed to it, frorn time to time, by able men. In November, 1847, the late Hon. Robert Baldwin Sullivan, at the request of the Mechanics' Institute of Haipilton, delivered a Lecture on the connection be- tween Jlgrkutture and the Manufactures of Cdnaday which was printed and extensively circulated. "No man," says he, "in his senses, can question but that a connection with the United States would soon place us in th^ condition they are; and yet our backwardness, as compared with them, cannot, with any show of reasoning, be attriouted to any necessary consequence of our dependance upon England." Concurring in this opinion, and still adhering to that expres- sed in 1846. "Many men of sound judgement entertain the opinion, that were a free intercourse opened with the United States, on the same terms as 'between the citizens of the different States, it would produce a change in the sentiments of the Colonists, to- wards the Mother Country. This change can only arise frppi being deprived of this fre^ intercoiirse. In support of this opin- ion, which it is important should, be well understood, I will as- sign but one reason. The farmer or producer values his Mar- ket by comparative, not remunerating, prices : he would resjt ^ satisfied with 2s. 6d. per bushel for wheat, if equal on both sides ' of the boundary; but not, if he received 5s. here, w|ien it com- manded 6s. there.*' The sanie reason will, apply at this moment tc^'the comsumer. !;, ';;'."'',! m-v.V'.' ■" -'"^ •^:-. v-- > ''■ '-v;-'-/ ':' We liiaye no reason to apprehehd oppp^iiion from the Impe- rial Government, although tne hasty and indiscreet opinion on the subject of Reciprocal Free Trade between the colonies, as announced by Lord John Russel, in the Imperial Parliament, ^nay have create^ that impression; neither have we any good reason to anprehend, that annexation must be the result of un- restricted exchanges in the productions of the" two countries. 1 S" ,. 't t mm u :■;*: i ; «« ;!■■ 19 . his quite true the Lordd of Trade heretofore have been slow in comprehending the true interests of Canada^ The Act for , the admission of colonial wheat and floui* into the markets of Britain, although originating by an Address of the Canadian Parliament, in 1832^ was not sanctioned until 1843. A delay of eight years occurred in li^ie manner, in the British Possessions Act of 1844; still, in scarcely any instance has the Imperial authority been withheld, when understood. ; ; i ' But we may look for an active opp6sition from among our- selves. It is the general impression, that Reciprocity between the United States and Canada will lead not only to the removal of duties on the particular article produced, but to the removal of every Customs establishment in the interior. [See Report, page 0.] Individuals who may compose the Government for the time being, will be I'nwilling voluntarily to surrender that patronage by which they retain power; neither will indi- viduals who afe dependant for their subsistence on the sailaries and perquisites they receive, be Willing to give them Up,—- while the public feel very little, if any, personal interest in the ques- tion; and I am constrained to admit, that we have not yet a sufficient growth of Canadian feeling to advocate any measure with no other motive than promoting the interest of Canada. lOth. The Report of the Committee advocates no protection: no public bounty — no temporary aid to build up any.separate in- terest. Its object is the removal of all Legislative restrictions on Trade. No movement on the part of the people of Canada is requi- ted. The ip'tiation must be taken by the Colonial Governments and the United States. The different Boards of Trade in New York, Boston, atid other prominent points, should petition Con- gress to pass a conditional act, similar to the bill introduced by the Hon. Joseph Grinnell, in 1848, or the Canadian act of 1849. It requires no negociation,— no treaty. This law will bring the . question fairly before the Canadian public: it wiU be reduced to otib single point. After the Governments of the different col- onies and the United States remove all duty on the productions of Canada, will the inhabitants of Canada feel it their interest to remove all duty on the productions of the colonies and the United States'? The question by that time will be well under- stood, and no reasonable doubt can be entertained, as to the result. I have the honor to be, Sir, your obedient servant, WM. HAMILTON MERRITT.