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Les diagrammes suivants illustrent la mAthode. by errata ned to lent une pelure, fa^on A 1 2 3 32X 1 2 3 4 5 6 EE TO ^... qD V- \^ju- /j'>^-'**i 4fr 171 -i THE EECIPROCITY TREATY : ITS ADVANTAGES TO THE UNITED STATES AND CANADA. 1 % b 'i -J IH r ^ ^v THE RECIPBOCITY TREATY : Its advantages to the United States and to Canada. FIRST PRIZE ESSAY. By Arthob Harvey, Esq., Fellow of the Statistical Society of London, Eng., Slatistical Clerk, Finance Department, Quebec. FOR many years after the United States had estab- lished their independence, tlieir trade witli the Colonies which continued to own allegiance to the ISritigh Crown was subject to most galling restric- tions. Partial relief wa.s afforded by the convention negotiated in 1830, by Mr. JlcLane, President Jack- eon's Minister at the Court of at. James ; and a further step towards freedom in commerce was taken in 184(), when the American Government secured the enact- ment of a drawback law. The beneficial results of these measures led to the introduction into Congress, in 1848, of a BUI for Reciprocal Free Trade with Can- ada in certain articles. It failed to become law, but attention having been thus directed to the subject, the Senate, in 1851, requested the Secretary of the Trea. eury to eomunioate to it all the information he could gather relating to the commerce of the Provinces with the States. Mr. Corwin selected Mr. Andrews to col- lect and tabulate the statistics bearing on this Trade ; and that gentleman's report, transmitted to the Senate in August, 1852, had a most important influence on the lubsequent action of the British and American Gov- ernments and Legislatures. Mr. Andrews reported : " That the fhje navigation of the St. Lawrence was greatly desired by all those Western States bordering on the great Lakes, as their natural outlet to the Sea. " That the fVeo navigation of the St. John would be of great advantage to the extensive lumber interest in the North Eastern portion of the Union, and that the repeal of the New Brunswick export duty on Ameri- pun lumber floated down that river would be but an act of justice to the lumbermen of that quarter, upon whom it presses severely. "That without a free participation in the fisheries near the shores of the Colonies, the American deep- sea fisheries in that region would become valueless. " Tliat it would be wise to place the border trade be- tween the United States and tlio Colonies on a iliirc- rent basis, and uiider the influence of a liighcr princi- ple, so as to mature and perfect a comiilcio nystcni of mutual exchanges between the dilforent sections of this rast continent— an achievement not only wise and advantageous, but .yorthy of the high civilization of the country." After much correspondence between the Govern- ments interested, and many debates in the American and Colonial Legislatures, in wliich some opposition to freedom of Trade was shown by the Pennsylvania manufacturers and the Maine lumber interest, and much opposition to admit Americans to the coast fish- eries was displayed by the Maritime I'rovincos, the British Government gave the Earl of Elgin fidl powers to negotiate a treaty in accordance with those views, and Mr. W. L. Slarcy having been named plenipoten- tiary by the President of tlic United States, the Reci- procity Treaty was drawn up. (a) It was " done in (a) The Reciprocity Treaty consists of seven articles: Article I gives to the inhabitants of the United States, In common with tlie subjects of Her Biitannio 3Iajef ty, the liberty to take fish, of every kind except shell fifth, on the sea coasts and shores, and in the bays, harbours and creeks of the British North American Provinces. Article /A gives similar privileges to British subjects in American waters. Article III stipuliites that the following articles, being the growth and produce of tlie British Colonies or the United States, shall be admitted into each coun- try respectively, free of duty : Grain, Flour and BreadstufTs of all kinds; Animals of all kinds; Fish, smoked and salted meat^; <;otton wool, seeds and vegetables ; Undrled fruits, dried fruits ; Fish of all kinds ; Products offish, and all other crea- tures llvinj; in the water; Poultry and eggs; Hides, furs, sl'.ins or tails, undres.sod; Stone or marble in Ita crude or unwrought state; Slate; Butter, cheese, tal- low; Lard, horns, manures; Ores of metals of all kinds; Coal; Pitch, tar, turpentine, a8h ami th(> caniils in <'aiia (iri'Ut l,uk(>s and the Atlantic Ocean, witii their vessels, boats and crafts, as freely as the subjecta of Her Majesty. It also gives to British PRIZE ESSAY. triplicate at Washington on the 5th of Juno, 1854." It went into elToct in Canada on the 18th October, and was put into full operation in the States by tlio I'resi- dcnt's Troclamation of March ICth, 1^55. For several years afferwiinls, iintliiiij; but satisfac- tion was expressed at the working of the new arranffe- mentM; but when the liscnl necessities of Caimdu ren- dered an increase in its revenue necessary, and heavier duties were levied on manufactured goods, the frontier towns of Now York State, whose exports of such arti- cles began to decline, complained that the si)iiit if not the letter of the Treaty was being broken. Each suc- cessive increase in the Canadian tarilf was made the pretext for renewed complaints. 'I'lie American (Jov- ernment began to act less liberally thar. they were wont towards Canadian merchants. Heavy consular foes began to be exacted on imports from Canada. I'roof began to be demanded, that our exports of grain were " the growth and produce of Canada," ami much of the carrying trade wo liad begun to enjoy v.. is tlius cut off. The Legislature of the State of New York re- ported that the action of the Canadian (iovernmeut was nnfair, and requested its representatives in Con- gress to protect tho interests of the IJepublic from the "unjust and unequal system" said to prevail. And although this statement was ably answered by 3Ir. Taylor and the Chamber of Commerce of St. I'aul, Minnesota, (a) and refuted by Hon. Mr. (ialt, (h) then, as now, Finance Minister of Canada, who pronounced subjects the right freely to navigate ],ake Michigan. Hy this article tho (Government of the United States engages to urge upon the Stati- governments to secure to the subjects of ller IJritannic Alajesty the use of the spveral State canals, on terms of equality with tlie in- iiabitants of the United States. It also s'tipulates that no export dutie.^ shall be levied on lumber cut on Ame- rican territ'..ry, float. ' down the St. John and ox- ported from New Br'. . ■•ok. Article V state* t',;.' ihe treaty is to continue in force for ten yearr '■ ■■■ 'le time of 'its going into ell'ect, after which it shal. ; , ninate on either party's giving one year's notice. Article VI provides for the extension of the Treaty to Newfoundland ; and Article I'// makes tho arrangements for its mutual ratiiication. (a) " Wo venture the further statement thct all par- *' ties to this Treaty have hitherto observed its stipula- " tions in good faith. The Americans possess and en- " joy their enlarged rights in the Hritish fisheries of " the North-Eastern coast, and tho free navigation of "the St. Lawrence; neither (iovernment has inter- " rupted the exchanges of tlie free list prescribed by "the third Article; while upon a subject purposely " excluded from the provisions of the I'reaty; viz.: the " Tarilfs of the United States and the adjacent I'ro- " vincesin respect to articles of manufacture and fo- " reign productions there is no legitimate ground of " complaint in any nnarter. Trior to ISUl, the duties " by the Canadian Tarift' were considerably enlarged " after 1854; but recently the American scale of duties " has been advanced in a still greater proportion. Jn " both ca.ses the changes have been enrorced I y tjian- " clal necessity, and do not conflict with tlie Tieai-' of " 1854."— Memorial of the Chamber of Commerce,'.-;!, raul, Minn., January 17th, 1862. (6) " To allege that the policy of this Government " has been avowedly to damage our neighbours is an " injurious imputation which was scarcely to be ex- " pected from the repre.sentatives of a nation whose " commercial policy is itself so exclusively national " and restrict!' e. * * « If complaint can Justly be " made of the infraction of the spirit, and, it may be " added, letter of the Treaty, it rests with Canada to ' be the complainant. * * * It is a subject of deep " regret to tho undersigned that the Committee on " Commerce should have framed their reixirt and re- " commendations in a sjjirit of aeonsation and eom- " plaint, rather than upon a correct appreciation of " mutual advantages in the past inducing further pro- " gross in the same direction in the future."— Keport • Jtfr. Uftlt, March 17tb, 1862. it " unjustifiable," a resolution introduced into Co gross, by Mr. Ward, in December, 1S63, was carried and tho I'resident was authorized to suspend the ex- isting Treaty, and ai)point Commissioners to negotiate a new one. (a) Notice was accordingly given in Lon- don on the 17th Starch, 1S05, and information thereof reached the (iov(.rnor (ieneral at Quebec on the Ord Ai>ril. It is perhaps allowable here to take a rai]iiiiiiirt, to ly boasts of far r have the rural id climate for tho d beliind. Thoy of immigration, )uld seem that a connected with ion amongst tho rn continent, (rf) House of repro- !tates be, and lio tho advice and •ee C 800. 5,24G .t,2f)0 5,619 1,129 ?,204 1805. 70,000 180,000 60.000 100,000 (jO.OOO !,312 1,250,000 m. 25,000 50,000 15,000 ■'20,(K)0 p:sti. 1,096 1,821 !,(43 ,602 Canada. ), &c. d of Canada is ESTIMATED. 1865. 1,000,000 900,000 2,000,000 1,500,000 2,500,000 3,000,000 4,200,000 67 2,000,000 23 250,000 13 800,000 absolutely be. relative pro- I ill Jfr. Ken- lews that New iu their proud The value of real estate and personal property in Wis- consin, Michigan, Illinois, Indiana, Oliio, I'ennsylva- nia, New York, and Canada, increas(>d from .«3,000,*XK), 000 in 1850, to nearly S7,000,000,(KX) in 18r/).(a) Tho improved lands increased from 51,(K)0,fHXt acres to 77,00O,fXKt, and the grain raised shows a similar increase, viz.: 1850. 1800. ■\Vheat grown, bus.(&) 8.3,500,000 127,01 09,041,591 Michigan, " 5,041,420 12,152,110 New York, " 17,858.4<"K) 2(),(Hil,048 I'enn., " 19,8aV214 28,190,821 Wisconsin, " 1,988,979 7,505,2iX> Ohio, " 59,078,095 70,037,140 Canada, " 2,090,094 2,591,151 217,104,119 320,141,930 in 1800 there were 17,000, (a). Ihe tonnage of llio lakes, which was but 215,787 tons in 1850, was 450,000 tons ill 18(2, {/>). As might naturally be exnectod fniiii such an increase in the means of transportation, the commerce of the Luke region has increased in pro- portion. To give one item only. The movi ment of grain Ka.-tward, which was about 20,000,000 bus. in 18.'>0, reached tin- enormous aiiiouiit of 137,772,441 bus. in 1802, (c) and 1:58,798,074 bus. in 18(i3. Oath {shown — Illinois, bus 10,087,241 15,ay>,072 Indiana, '• 5,t'.iV),014 6,028,755 Michigan, " 2,80t),0.50 4,073,098 New York, " 20.'>)2,814 ,'55,176,13;j I'enn., " 21.5;iS,l,-,ii 27,387,149 Wlscou.sin, " 3.414,r,72 1I,(j69,270 Ohio, •' 13,472,742 15,479,133 Canada " 20,309,247 3.8,772,170 103,9.55,942 152,310,780 Nor did the jiro^rress of the .States stop even when the Iicliellioii began. Kiiriii IJlodget, in a remarkable pamphlet on •• the Coniuieri'ial and Kiimncial .Strength of the liilted .States," 18154, shows that tin? "quanti- ties handled" in 18t53 were " more than thirty »<;rce«<. over the (nuintities of 18tj0." and gives the udlowing table of" Domestic Kxports of the Loyal States": In 18;j9-00 S173,7,59,(5(i4 im)-m 201, (551, .5.54 ^>il\\-^fZ 213,0(59,519 lS02-0;3 305,884,998 lie adds, " we have a right to claim tliat almost the entire advance in value from 1800 to tlie close of June. 180.3, was a legitimate and reasonable increase, caused by no intlation or deiireciation of the currency." Compare ti.'" nddress of the Illinois delegates of 1803 to the (ioveriior (i^""ral of Canada: " With otic-tviitli " of the arable surface ..:.'— cultivation, the iirodiict " ef Wheat of the North- Western States in 1802 is "estimated at 150,000,000 bus., and of Indian Corn at " 5(X),000,000 bus." (a) Itailroads in the Lake States and Canada : 1860. 1860. New York, miles 1,403 2,702 I'ennsylvania, " 822 2,542 Ohio, " 575 2,999 Indiana, " 228 2,126 Michigan, " !W2 799 Illinois, " 110 2,808 Wisconsin, " 20 922 Canada, " 12 1,974 3,512 10,932 Cost of the same $132,220,000 $723,579,641 (h) Tonnage of 1S.',0, from Andrews' Keport, page ,52. That of 18(52 from Keport Chicago Hoard of Trade, 18(53, p. 59. The nationality of the craft was : American, iTons... 3(51,997 .... Value. . .!?ll,3&t,100 Canadian, " ... 88,896 .... " ... 2,607,500 450,893 §13,971,000 (f) The amount of grain sent Kastward depends much on thi- abundance of the harvest. Wo have no figures for the jieriod between 1850 and 18,50, but the following table shows the entirely diffi'rent scene. 'I'he Noth-Eastern communi- ties, living under a less genial sun, and possessing a l(>ss fertile soil, look to the sea for a great portion of their harvest. The value of the deep sea fisheries of Massachusetts, in 1860, (a) was no less tlian »9,300,442, of Maine and Connecticut over 81,000,000 each, and that of the British Provinces $8,000,000, (/<). The tonnage engaged in fishing, exclusive of whaling, is not stated ill the American returns, but it i)rol)aI)ly equals that of the Provinces, which is uliout 1(JO,(K)0, worth, at a low estimate, ,'!?4,000,000. The population of these coiiiitrie.-* has not increased with great rapidity, but the trade of the States with the British I'o.s,sessions lias increased, under tlie opera- tion of the Keciprocity Treaty, from 88,000,000 to 816,- 000,000 per annum, (c) (a) Kennedy's Preliminary Ueport on the Census, page 188. Value of fish caught by United States fishermen, (United States census :) — Mackerel and cod fishery J Maine .SI ,060,755 including, it appears, J Massachusetts.. . 2,774,204 hake, lierring, iic ) Connecticut 281,189 $4,106,148 The statistics of the fishing industry of the United States, as given in the census, are very incomplete. The total .'alue of fish taken is given at $12,924,092, which iiiclud"s 87,621,588 value of products of the wlialo fishery. The onlv other important figures relate to the mackerel, cou and herring fishery, given above. (6) The following figures show the extent of the fishing industry of the Lower Provinces: — Value of fish caught, (from the census tables of the several Provinces, 1860): Newfoundland— .seals excluded $4,440,000 Nova Scotia— cod, mackerel, and herring.. . 2,602,000 New Brunswick— cod, mackerel, lierring, alewives and hake 388,235 Prince Edward Island — cod, herring and mackerel 272,532 Lower Canada— {estimate) 700,000 $8,862,767 (f ) Population of the North Eastern Atlantic States and Province.^, 1850 and 1860: States— 1850. Maine 581,813 Miussachusetts 986,450 Connecticut 363,099 New Hampshire 317,466 2,247,818 Provinces- Newfoundland 122,638 Nova Scotia 276,117 New Brunswick 193,800 Prince Edward Island 71,496 1800. 620,962 1,221,464 451,520 325,579 2,625,515 124,288 830,857 262,047 80,867 664,051 788,049 Trade of the United States witli the Maritime Pro- vinces ;— 1849 1860 1861 1862 1853 1854 1855 1856 1857 1868 1859 18()0 1861 1862 1803, U-stlmated). Imp. from them. ,$1,358,992 . 1,736,651 . 1,620,330 . 2,272,602 . 2,206,021 . 2,954,420 . 3,822,224 . 3,832,462 . 4,224,948 . 5,518,834 . 4,989,708 . 4,417,478 . 4,(>16,843 . 5,000,000 Exp'ts to them. $3,869,543 3,618,214 4,085,783 3,791,966 6,311,643 7,266,154 9,085,676 8,146,108 7,6;i7,587 6,622,473 9,213,882 8,623,214 8,383,755 8,236,811 11,382,312 From the letter of ilia Secretary to the Treasury, January 18(54. 1 wo iiliall goe ai eastern communi- and po!1 788,049 Maritime Vto- Exp'ts to them. If3,8fi9,543 3,618,214 4,085,783 8,791,956 6,311,643 7,266,164 9,086,678 3,146,108 7,6;37,587 6,622.473 9,213,832 8,623,214 8,383,755 8,236,611 11,382,812 the Treasury, Until tlio passage of tlio IJeciprocily Acts of 1864, the Americans were excluded, in terms of tlie Con- Tention of 1818, from the rifrlit to li:*li within thiTO milts of the sea coastof New liruiisuick. Nova .Scotia, I'riiicu Kdward Island, and (iinadu. Neither could they legally resort to all jiarts of the Newfoundland shore. Since, however, mackerel can only be caught within that limit, (ai where also the best kinds of other lisli are often to be found, the lishernieii from the States were frei|iieiitly led both clandestinely to evade and openly to defy the terms of the Iiileriiatioiial agreement. When detected and caught, their ves.-els were; often conliscated; and, just bel'ore the negocia- tion of the Treaty, the Ini])eriul (jovernment (.ent out a tleet of armed vessels, {/<) while the Colonies them- selves fitted out six cruisers, fully armed and manned, to prevent further aggressions. There was an addi- tional cause of irritation in the misunderstanding which existed as to the jirecise nieaning of the <'on- Tention — the iirovinciiil authorities contuniling that the line from which the marine league was to be measured, was, not the coast-line, but one stretching from headland to headland. The Keciprocity Treaty happily brought these disputes to an end. American fishermen coining northward ceased to be and to be regarded as thieves; und were no longer liable to bo chased from one secluded port to another. They now ply their honest calling in an honourable way. Fleets (a) "Our fishermen cannot go through another summer without involving themselves in serious dilli- cultios with the British I'roviiices. . . Not that war will ensue, unless the fishermen arc <]Uieted, but I believe there is danger of bloodslied. Tlniv nru no mackerel left on the shores of the United Slates, and that fishery cannot be succe.s'sfuUy jnosecuted without going within three miles of the shore, so that unless we nave this privilege, to enjoy the shore fishery without annoyance, the mackerel fishery will bo broken up, and that important nursery for American .seanion will be destroyed."— .Speech of lion. Amos Tuck, of New liumpshirc, i!i ll'seofUep's, 1851. " Accounts dated the 17th instant, from I'ort Hood, " mention that all the United States craft fishing " along the Nova Scotian coast ' are detained by the " • steamer Devastation, for alleged informality in their " ' papers, and any vessel attempting to leave will be " ' fired into.' "— Lxtract from tiuebec Mevcunj, Sept. 1852. (h) " A circular letter has been sent to the governors of the several colonies, announcing that Her .Majesty's Government has resolved to send a small force of armed vessels and steamers to North America to pro- tect the fisheries against foreign agj're.ssion. The Colonial Ciovernments have fitted out si.v cruisers, fully manned anc". armed, which have sailed for the best fishing grounds, and there is imminent danger of a collision. The colonial cruizers threaten to make prize of every vessel "fishing, or preparing to fish," within certain limits, which the colonial authorities contend are within three marine miles beyond a line drawn from headland to headhnid, and not three miles from the shores of the coast, which our citizens contend is the true reading of the convention." — An- drew's Keport, page 30. One of the most serious consequences of this ha- bitual eva.sion of the terin< of the Convention of 1818 was, that the American fishing vessels were obliged to place themselves in diflicuit ond dangerous posi- tions to avoid detection. In 1851, over 100 ves.sels were driven asliorc on I'rinco Kdward Island in a gale, and over 300 lives lost. The fleet braved the storm rather than run for port, and thus confess their inltactiuu of British rights. "The return of mackerel tliis year will fall short " one-half of the ([uantity taken to this date last year. " This is attributeil mainly to the vessels being " obliged to keep further from the shore than here- " tofore. Another cause is their being prohibited from " fishing in the Hay of Chaleurs, where full fares could " have been obtained."— From the Gloucester 2We- graph, Sept., 1862. <.f/ of fishing craft, owned in ^faiiic and Massachu.scttH, now visit, unhindered, every Now Brunswick island, every Nova.'^cotian bay ; while, preceding the advance of spring, they jxnir in almost countless numbers through '_■ gut of Canso, the side gate to the (iulf of .St. Lawrence, and taki' homo full cargois from the Bay of Chaleurs and Canadian waters. A return laid before the Canadian ruiliainent last year gives some important inl'orniation on this score. It shows that the value id' fish taken in our waters by American llshermen, which was but .f2S0,fjo0 per annum pre- viously to XKy'i, rose at once to .'«t).','2.400 in that year, and reached no less a figure than $1,205, 70relien- sion has not been realized to any great extent; and any injury that may have rosulteil in this respect has been more than counterbalanced by the increased energy wliich the comiietition of the Americans has taught their cousins to employ (b). As a proof it may bo mentioned that the value of the fish taken by Nova Scotians and Now Brunswickers, which was j?2,llO,750 in 1S50, reached no less a figure tlian iS2,9u0,2;l5 in IStjO ((•). Tlie fisheries of the lakes cannot coinpan. in value with those of the ocean, although they are of the annual value of about !i?7.')0,0},(H)0 18.58 4.'>;j 31.710 6,170 6;J4,50<) law 3K0 ati.ooo 6,it;o 628,i)oo 1800 yro 25,01 K) 4,itS0 459,(KX) 1861 3.',6 24,0-20 4,840 410,400 1802 274 lit,^) 3.740 267,000 18tJ:J '235 10,450 3,2;i0 249,750 Ueturn compiled by Sir. Whitcher. Fisheries Branch Crown Lauds Department, 27tli June, 1804. (h) Vide speech of Hon. Charles Fisher, of New Brunswick, delivered at Toronto, 1864. (c) These figures relate to the cod, herring and mackerel lisheries. The total value of all kinds offish taken in N. Brunswick was 1f518,,')31 in 1860 as ..gainst S!3'31,328 in 1850; and the census compilers state in 1861 that " a considerable proportion of the catch of the past year has not been reported." (d) The white fish taken in the lakes, 1860, by the Americans, was given as $,587,479, of which $250,467 was the result ol the industry of Michigan.— Census, p. 188. The value of the fisheries to Canadians, vide census, was about $150,000. This is probably an under-state- meut, as it does uot tal)y with the export tables. 8 PRIZE ESSAY. ■\ havo been allowed frcoly tu (ako on our lake shores tluli worth • Sout ?250,000, while tln> Cunttdianx havo had tlic III ,■ >it ' t lh< market ol' llio Ktates for their catch, uf which about 976,00U worth had been annually exported acrosM the border. It would not be difficult to occupy, in trcatin;; of this branch of the Hubject, the few columns allowed for the discussion ol the whole. Suffice it, however, to remark fUrther, that a good supply of llsh— a necessity of life to the members of at least one numer- ous creed— is of no little conseiiuence to the health and comfort of all classes. Without reference then to the exjiort trade in ffsh, it follows that every measure which enlarges the Held of the llsherman's calling must be advantageous to the whole community. Moreover, (without alluding to the recii)rocal trade In ffsh and flour between the Stat( s and the Maritime Provinces, of which hereafter,) it is evident that, since the ffshcrman is a consumer, not n producer of vege- table food, every measure which encourages the rtsli- inft induhtry of the Kast benefits the funning commun- ity of the We; t, as well as the forwaidiiig and commercial interests of the middle States. Wc need not, however, look to such indirect effects to sec the enormous advantages of which the Treaty has been productive to the agricultural interests of the States and of Canada. Under the clause which per- mits the free importation into either country of most of the raw products of the other, the trade in these articles betw -n Canada and the States, which was only some •¥10,000,000 in the best years before the Treaty, has expanded to an average of 823,000,000 per annum, I'cople do not buy and sell unless for mutual profit, and when wo look at this enormous increase of trade, wc must infer that the gains of those concerned in it have been increased in proportion. It is indeed diffi- cult to over-estimate the influence of this enormous volume of commerce in building up the fortunes of commission merchants, railway shareholders, steam- boat and ship owners, and their dependents, as well as of the farmers themselves.(a) Wo gain an insight into (a) Free imports into United States from Canada, under Reciprocity Treaty. l'"rom Secretary Chase's returns :— Half year to June, 1855 9 5,950,500 Year 1855-50 15,927,185 " 1860-57 16.450,788 " 1857-58 10,475,133 " 1858-69 11,444,330 " 1859-00 10,1210,128 " 1800-01 10,300,377 " 1801-62 14,293,922 " 1802-03 12,807,3li4 Estlm'e 1803-ti4 13,000,000 Do. iof'64 0,500,000 Total trade under the Reciprocity Treaty for ten years »139,.3C5,727 Free Imports into Canada, nnder Reciprocity Treaty. From Canadian T. St N. Tables:— Year 1855 » 7,725,672 " 1856 8,082,820 " 1857 8,642,044 " 1858 5,5(54,015 " 1869 7,106,116 " 1860 7,009,098 " 1861 9,980,937 " 1862 14,430,()26 " 1863 12,339,307 " 1864, (I'istimate) 12,000,000 * 92,941,195 8139,365,727 Total trade both ways $232,300,922 Excess of imports into the States $40,124,632 the reciprocity of this beneflcial influence by observ- ing the course in which it is conducted with respect to the leading articles of e.xchangc. In 18ti3, wo importeil from the .States 4.210,!KI0 bush, of wheat, and exported thither 1,100,000. The imports were chiefly at Kingston (3,175,055 bush.), and at Sarnia (78,795 busli.) The exports were princi|)ally across the Lakes. We al.-o imported 225, 4.39 bbls. of flour anil exported 490,) From Secretary Chase's report, pages 10-18, it appears that the total trade with the Maritime I'rovinces, under the Treaty, for the flrst ten years of its con- tinuance, was :— Imports into U. S. « 35,500,000 Add the Trade with Canada, as above. . 139,305,727 Imp^rt8 into I'rovinces. 840,000,000 92,941,195 Total trade under this Treaty $174,805,727 $132,941,196 The U. S. Tariff" on the principal articles mentioned in the Schedule attached to the Reciprocity Treatv, was on— Animals, 20 per cent.; Rutter, 20; I'ork, 20; Fish, 20: Kggs, 20; I'elts, 20; Wheat, 20; Flour, 20; Rarley, 20; Oata, 20; Rye and Corn, 20; Vegetables, 20; Fruits, 20; Lumber, Timber and Wood, 20; Wool, 30; Clover and Grain Seeds, 30; Coal, 30. The present United States Tariff" is considerably higher, although few of the above articles are speci- fled in the Tarift". It only mentions— Coal, $l.2o per ton; Seeds, Garden, 30 per cent; Sheep skins. 20; Tobacco, unmanufactured, 35 cents per lb.; Wool, unmanufactured, if less value than 12 cents per lb., 3 cents, 24 cents per lb., cents. (6) Compare Hon. Mr. Ilowland's nmort to the Executive Council on Intercolonial 'trade, 1801. Also, speech of Hon. T. Ryan. (I'arlliiiucutary Re- ports, 1865 ) The figures for 1803, arc the following : Imports of wheat and flour from the United State** into — brls. bush. Newfoundland, flour 216,595 = 1,082,975 New Urunswick, wheat 16,157 Flour 217,420 = 1,087,100 Nova Scotia, flour 286,000 — 1,430,000 Total, bushels 3,615,232 Exports of wheat and flour from Canada to United States- Wheat Bush. 1,400,000 Flour, brls 490,000 — " 2,450,000 Total, bushels, 3,860,000 Looking n we exportei while we ini exports to ■112,097,688; t other hand, !*975,014, am see that the enabling tin to u-ie their f,ir which tl Canadians corn. 'l'he( tiige of chei had been ili corn. >' wort'i >2,3;i Imt ue impel only to thee who grows American, The exchan henefieial to recent war, and cattle n rican peoph farmers wel their usual > overlooked. States abou 1863, the an of theutnui possesses vi fleece of tlu their manul 'fuming 1 mine, we fii tages result articles free sold 5,000,0( ciprocity Ti thracite, ar gave in the 15ut the biti so far Wes (a) Imports 1865 1850 18.'i7 18,58 1859 Animals fo 1855 1856 1857 1858 1859 Horses— 1865. . . . 1856. . . . 1867. . . . 1858. . . . 1859. . . . Our exy Mais are ( •' ih) Expoi 1860. . . . 1861.... 1852. . . 1853... 1854... 1855... 1850... •' (.)urt " can wo " worth " ricau v PRIZT ESSAY. iiiflucnco by obson- nilucfi'd nitli rcsptct SliitL>.i4.210,!J(iO bu.-h. 1(H),nly S75,793 worth. Similarly the exports to the United States of oats, amounted to .?2,0!t7,688 ; the imports to but !gl7,637. Hut on the other hand, we imiKirted Indian Corn to the value of •*(>75,014, annetieial effect of enabling the farmers of Canada and the United .States to (lie their lands in raising just that kind of produce for which their soil and <'llinate are best a(la])ted ; the Canadians growing oats unds horses and cattle; and the American, who grows corn, converts it info pork. The exchange, pcrmitfed by the Treaty, and always beneficial to both, was never more so than during the recent war, when the command of the Canadian horse and cattle market was of the utmost value to the Ame- rican jieojile, and the hard times in Canada nuide our farmers welcome the American buyers with more than their usual cordiality. Nor nnist the article wool be overlooked. ISefore the Treaty, we exiiorted to the States about •'i?100,0r lb. more than the tine Anie- " rican wools."— Newspaper paragraph, 1865. ,090,,3.34 729,679 597,492 ,925,719 9,-)7.411 (iii7,315 664,083 ,4(35,080 cities have to depend upon Nova Scotia for their sup- plies, (a) That colony yielded only 100,000 tons per an., until of late, owing to the mining monopoly held by a powerful corporation. Now, liowevrT, this monopoly ha.s li«'en destroyed, and the report of the Nova Scotiu Commissioner of minii* shews that 429,.']51 tons were brought to surface in 184k!, and 40 first lliree m American mines. The I'lnibcr trade is of e(iual importance to Canada with the trade in grain; but, contrary to the usual im- pression, t does not appt ^r to have been so beneficial- ly effected by the UecijiroLi'v Treaty, (ireat Britain remains the consumer of by fa. the greater portion of our annual export, the States taking little from us save I'lank and Boards, wbicli they bought in largo quantities before th Treaty, and will continue to buy (a) Tons shipiied to U. States from Nova Scotia— TOXP. TIIXSJ. 1S49 92,000 11851 80,000 1800 98,000 I Mines in o]K'ration — 1850 4 I 1864 20 In 18ii3, exports of coal to U. States— nearly— Tons .3(10,000 | Valued at .«679,4.30 (')) Imports of Coal from flic U. .S. info Canada:— Value of coal imjiorted in 1851 (from U. S.), ."JSS.CSa. -Andrew's IJeport, p 4.31. TONS. VAI.l-K. 18,55 80,000 .«326,512 1866 84,0()0 386,.3()1 18.57 94,816 400,'297 1858 70,097 242,760 1869 78,567 237,776 1860 79,886 364,(179 1«61 171,5(51 4.58,6()5 • 1862 105,905 437,391 18(!3 103,647 548,846 Compare speech of Mr. Towusend, of (»liio. Use. of Reps., 1863: — "The coal imnorted from Nova Scotia and New Rrunswick is highly bituminous. • » * Some factories in the East are now lying idle because they cannot, without paying a high duty, obtain a cer- tain amount of I'icfou coal, which they find it beiiefl- cial to use in connection with that from rennsylvania. * * • * Now the question is: shall we, bv legisla- tion preventing competition, conqiel the millions who want coal, and must have if, to i)ay an extra and ex- orbitant price in . rder that a few brokers, owning coal stock, may re- :ize enormous jjrolils?" (c) Ores of Jleials imported into the U. S. from Canada (Sec. Chase's return):— TONS. v.\LrE. 1855-56 26.372 .*19.213 1866-57 3,231 42.824 1857-58 6,28i) 236,858 1858-59 2,7:« 2'26,086 1859-60 6.681 .360,714 lS(i(>-61 12,267 .'J92.314 1S61-62 4(l,7!)9 .'J7.3,(>58 1862-63 4,916 266,22;* (This statement of tons is fcvidcutly incorrect. The values are probably reliable). 'tl li! li 10 'IRIZE ESSAY. if it should not bo ronowcd. Tho amount of our ox- port of lumbor to tlio States has indeed increased con- siderably, but not much faster tlian tlie trade with England (a), or than the increa.so of the population of tliese regions and the denudation of tho American forests would lead us to expect. The truth is, tliat al- though tlio Lake Cities may for a time be supplied by Michigan lumber, tl:e Atlantic States must liave ours, for which they must pay us what it costt- uc to procure it, and a reasonable profit besides. If they put a duty on it they but enhance tho price of liouso building, and consequently of house rent in every one of the Kastoru cities, of which public injury a few lumber manufacturers in the well-nigh exhaus- ted limits of Maine will alone reap the temporary benefit, (h) The restricted intorprefation given by the American Goveniment to the clause aflTecting lum- ber has no doubt cliocltcd tho increase of trade. Tlie words ure that lumber is to bo rociprocally admitted free, if "unnuinufactured in whole or in part." Under this phrase tlic United States have considered them- selves entitled to charge duty on boards, if so much as grooved and tongued; on shingles, if oO much as dressed. It will behove tliose interested iu the lumber trade, on both sides of tho lines, to see that, in the event of the renewal of the Treaty, a more liberal policy is adopted in fliis particular. t)ur limits, now fast being filled, warn us to pass at once to the consideration of tlic last important article ofthe Treaty ,-tliat which .-iecuros to the United Stales the right of using our canals, and enables Canadian vessels to navigate Lake Michigan. This, the a tide wliich i)C!liiips most deeply concerns the Western Slates, ijiiiears to be tli:\t which ha> led to all t)ie agi- tation luistile to tlie Treaty. Freedom to use our canals, especially on the liberal terms fixed by the Canadi;cn Govennnent, has naturuily interfered witli the mouo- poly of transport enjoyed by those of New York State, wllo^:e po'icy has always byen to raise as much revenue from lulls as the Western producers could be made to pay. lUilIUlo and New York conseijnently fir.st took grunnd against the Treaty, and the Committee on Com- merce (if tho New York Legislature, in re]iorting against it, plainly shewed their animus in tho com- plaint that we liavo " built canals and railroads in {a) Exports of Lumber from Canada. Til nil roimtri'ii r„r,rri,t Uriiiiin. To til.. V. S. ISol.. !if5,085.fi28 .... !g3,873,0S0 . . . . Sl,147,2()8 1852. 5.548,132 .... 3,918,('88 . . .. 1,590,310 1.85'1. . 8,(!i;(), 11)11 .... ti,l»i2.")ii8 .. .. 2,-,S3,184 18f- . . 9,275,781) .... 7,24l),9(;S . . . . 1,975,030 185^'... . . 7 127 1114 .... 4,370,(]ii8 . . .... 5,935,892 .. . 2,ii94,23() . . 2,897.548 m-.n. . 81894,948 1857... li',;:",i)o<5 .... 7,212,132 .. . . 3,121„550 1853.. . . . ^' "■)'t,755 .... 5,10ii,iJ9i> .. . . 3.2(l7,9ii4 18;-.9. . . .- . :i,u;JH,»'91 .... 5,204,218 .. . . 3,.301,819 18(i0... . .J'l.UOl.liT .... ').130,77i! .. .. 4„H4H,»)11 1861.. . .. , 'isiaH .... f|..«l)H.7H9 ., . . 2.005.870 lSportution cuniiot bo over-rated. Each cent per bushel taken off tho cost of carrying tlieir produce to market increases tho value of their annual (•ro]) by ii50,5(K),O(Ki; ihey having laised in 1802 660,000,- m the natural Chan- : the Lcgislatnro of the State of Illinois. 0, appointed under ionfcr on the subject an authorities, said ears past, a lament- tod has occurred in railways and canals ir tho excess. Tho irrivod at a point of )acity for transpor- iccpt by tho groat > successive years ith more than ono n, besides immense I vast numbers of i'olumo of business urso to the natural The St. Lawrence ; upon the Lakes a ianal system, then, f New York, does of Illinois to bo Wo have not yet fas wo could wish ''est. Owing to a insported in 1863, ho Welland canal, lown the St. Law- of great assistance dcrs. AVe hope, is. We have now lecting Lake Erie have three. Wo r existing canals, onuect tho Geor- :. Lawrence, and ■dent hopes of the ty depends," say ;Iieap transporta- ownver, it is per- not been permit- mplatcd by that e Government of c upon the State of llorlJritannlc analsun terms of United States." shipping passed ;ainst 521,808 Ca- nals also shewing feac!; additional )ver-rated. Kaoh )f carrying their ■^ of tlieir annual din 1802 650,000,- ing trade, that ia Canals in 1863. Am'n. Cdrt'n. • ... 100 4941 Icau 66 4798 30813 Am'n. rii extension of the privilege in both countries of buying foreign goods in bond, or by re- turn of drawback, the addition to the tree list of all wooden wares, agricultural implements, machinery, books, and many other articles peculiarly of American manufacture, and tlieir assimilation of tho I'atent Laws — all these, and many other topics, naturally offer themselves for consideration." To this sni'cinet enumeration we can only add metals in |)igs, and crude ]ietroIeuin; but the Hoards of Traiie of doth countries may be able to suggest other addi- tions. 903796 207017;