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q^v (briv. CoVWol^ Gff;U

CUSTOMS DUTIES (CANADA).

RETURN 10 Ml AddrcM of the Honounble The Houw ofComnMnt,
dated 6 May 1864;— /or,

** A COPY of any Cobrbspondbncb between the Colonial Office and the
Authorities in Qmada, on the subject of the Remoral or Reduction of
the DuTiBS charged on Bbitish Goodi entering QtHada."

.- i . I i

Colonial Office,!
16 June 1864. J

FREDERIC ROOER&.

i I

.j>-i ■■■i..iii::

O.;^: !,

v.,.',fl

.'■■t'. I

^ :!,'•:• '■

(Afr. Aytoun^

••t?;

Ordered, by The House uf Cummona, to be Printed,
17 June 1864.

400.

s'^-'

I if 8 ; .'

I !t'

tl ' f

[ 2 ]

7, ».'/ >: f J,

] 1 )t\ H

iW . ■ t

■ iViyt/l 10 i(i' »-iM

>* SCHEDULE.

n\h

" *^'\
I ,',iii

Sir Edmund Head, Bart , to Sir E. B.
Lytton, Bart.

No. 40. 26 March 1859

Page.
3

The Duke of Newcastle to Sir Eduiund
Head, Bart.

N-). 23. 13 August 1859

Ditto - - - ditto ...

No. 57. 5 November 1859 -

Sir Edmund Head, Bart., to the Duke
of Newcastle.

No. 118. 11 November 1859

The Duke of Newcastle to Sir Edmund
Head, Bart.

No. 8. 31 January 1860

Sir Edmund Head, Bart, to the Duke
of Newcastle.

No. 32. 11 April 1860

.34

.©Of

i;^;

C 3 ]

COPY of any Correspondencb between the Colonial Office and the Autliori-
ties in Canada, on the subject of the Hemoval or Reduction of the Dutibs
charged on British Goods entering.Cfl//a</<i.

Page.
3

9
II

27
34

(No. 40).

— No. I.—

No. I.

Copy

of 11 DESPATCH from Governor the Right Honntinible Sir Edmund OovirnorthcRigLt
Head, Bart., to the Right Honourable Sir E. B. Lytlon, Bart. H"adX»..7o tha

Government House, Toronto, C. W.,
Sir, 20 March IR59.

1 HAVE the honour to enclose a copy of the Tariff" of Customs Diitiis which
hjis been enacted by the Legislature <>t this Colony.

It is to be regretted that the necessity which exists for moetinp the fliiancial
engagements of the Province, and the depression of last year, have compelled
the Government to propose rates of duty so high as tliose imposed by the pre-
sent Act.

I am aware of tlie objections which may bo offered to the principle of " ad
valorem " duties ; but I must necessarily leave the represen natives of the people
in Parliament to adopt that mode of raising supplies which they believe to be
most beneficial to their constituents. Tiiere is nothing in the system adopted
whicli professes to impose differential duties, or to fetter the freedom of trade

I have, &c.
The Right Hon. Sir E. B. Lylton, Bart., (signed) Edmund Head.

&c. &c. &c.

liight lion. i>ir
E. B. Lylton, Bart
ao March 1M6o.

Enclosure in No. 1.

Cap. II.— An Act to amend the Act relating to Duties of Customa.
[Assented to 26th March 1859.]

Enclosure in No. 1 .

Scbedulc of tluticg
under 22 Vict. c. 76,
reiiekled.

Kzcept thoe on
sugar, until lit June
IBd9.

And thone nn tea,
until 1st January
1860.

WilEBEAS it is expedient to amend the Tariflf of CuBtoras Duties now in force, in the Preamble,
manner hereinafter mentioned : therefore. Her Majesty, by and with the advice and con-
sent of the Legislative Council ard Assembly of Canada; enacts as follows : —

1. The Schedule to the Act passed in the 22d year of Her Majesty's reign, c. 76,
intituled, " An Act to amend the Law relative to Duties of Customs and of Excise, and
to impose new Duties ; and a Duty on Tavern-keepers," containing the table of duties of
Customs Inwards, the table of exemptions, and the table of prolilbltions, shall be repealed
upon, from and after the day of the passing of this Act ; except so much of the said
Schedule as imposes or relates to the duties on sugar of any kind, or mt.lasccs, which
shall remain in force until the Ist day of June 1859, and shall be repealed un that day,
when the duties Imposed on the said articles by the Schedule to this Act snail be levied ; and
except also, so much of the said Schedule as Imposes or relates to the duties on green
eofFce and tea, which shall remain In force until the Ist day of January 1860, and shall
be repealed on that day, when the duties Imposed on the said articles by this Act shall be
levied. ' '

2. Subject to the exceptions In the next preceding section. In lieu and Instead of the Dutirs in the Scbe-
dutles of customs imposed by the Schedule and Act first above mentioned, and of all dule to this Act
other duties of customs upon goods, wares and merchandize imported into this province, *° "* levied liero-
there shall be raised, levied, collected and paid unto Her Majesty, Her heirs and sue- aforesaidT''
cessors, upon goods, wares and merchandize imported Into this province, or taken out of

warehouse for consumption therein, the several duties of customs respectively described,
inserted and set forth m the Schedule to this Act annexed. Intituled, " Table of Duties
of Customs Inward " ; and the articles enumerated or mentioned in the table in the said
Schedule, intituled, " Table of Free Goods," may be Imported or taken out of warehouse Free goods.
without payment of any duty of customs under this Act ; and the articles enumerated or
mentioned m the table m the said schedule, intituled, " Tabie of Prohibitions," shall not be Prokibltions.
400. AS imported

:'ii

ISL U Vi<t. .. •),
not to lir iifli>ct<'il.

8»cl. H„(:>i Virl.
70, Kiiii'iiili'l.

I'Mvisiiirm «( li) &
11 Vict, r 31, anil

till! Aril HIIIIMnlitl^

it, to apjily.

Anilioof iiil(-r|in'>
Ution woriN.

4 I'API'HS IIKI.ATINO TO

iiii]H)rtcii into tliiR province, under the |M'ii»lty therein ineiitinnoil, ami if imported, nhall
he forfeited, and forthwith deHtrojed.

Ilut this Act nhall not uffcet tlie " C'opyrijilit Ait," 1.1 & 14 Viet. e. 6, or any duty im-
posed under it.

■'{. And in amendment of the eighth Hi'etion of the Aet above mentioned, it in enacted
that the articleH U|ion whii'h, uud the rave:* in whieh any drawback xhall be payubh; under
the H.iid Hortion, .'•ball In' lboi<u only upon mid in whirh the (iovernor in C'ouneil chull, by
tlie re^iihttiimi* to hi' from time to time made, dieliirc i<iieh drawbiiek to lie pnyitble.

4. The ("orejjoinj; provi^ionfi of this Ai't, shall In- n>ii!<trned an formiii one law with the
Aet paiRod in the «esKion held in the lOth and llth vearr* of Her Majc»iy'n reif^n, e. 31,
and intituliid, " An Ai-t for repealing; and coiiriolidiiling thr preiH!nt Duties of CuxtoniH in
this province, and for other purpoDex therein mentioned," iinil the Acta amending the Mune,
in Mt far ax they are in force, and con^'isti'iit with thin .\rt ; and all wordn and cxpreneions
iiiicd in this Act shall have the mvanlng uK<igiied to them in the said Acts, and all the pro-
visions of the said Acts with regard to the duties im|Nis<^d by them, or the regulatiuni* to
be made under them, shall a]>ply to thu duties iiii|i08cd by tluM Aet, and the regulation*
to bo made under it, except in eo far as they may be iiiconsiotent with tbia Act.

SCHEDULE

Taule of Duties or Cuwtoms Inwardh.

The following Goods shall be chargeable with Duty, according to the Value tliereof, at the RatM

hereinafter mentioned.

Good* paying 100 per cent.

Brandy

Gin

Cordials .......

Hum

Spirits and t-troni; waters, including spirits
of wine, and nlcolinl, not being whisky •

Goons paving 40 per cent, from \^t June
1850 to' 30th June 1800, botii davs in-
clusive, —

Goods imying Hi percent, from let July

1800 to aoili June 1801, both linys in-
chisive, —

Goods paying 33 per cent, from l»t July

1801 to aoth June 1802, both diys in-
clusive, —

Goods paying 15 per cent, upon, from, and
after the Ist July 18'I2,—

The present duticb remain in force until the
end of May 1850:

Susar, refined, whether in loaves or
lumps, candied, crushed, or in any
other form ; white bastard sugar or
other sugar equal to refined in quality

Goods paying 40 per cent.
Cigars ...-..-

Gnuus paying 30 per cent, from Ist June
Ig'iO to 3oth June 1860, both days in-
elusive, —

Goods paying 95 per cent, from Ist July
IHOO to 30th June 1801, both days in-
clusive, —

Goons paying 16 per cent from 1st Jnly
1801 to 30th June 1863, both days in-
clusive, —

Goons paving 10 per cent, upon, from, and
"ufti-rthe 1st July 1802.

Tlie present ihitics remain in force until the
end of Miiy 1H50:

Sugar, beini? neither refined, nor white
bastard, nor other t'Ugar equal to re-
fined in quality . . . ..
Molasses .-...-

jDuty per cent.
I ad valorem.

100 |ier ct.

per cen'

)»

per cent.

30 per cent.
23 „
16 „
10 „

Goods paying 16 percent, from 1st January
IR60 to 31st Deoenilier 1861, both days
inclusive, —

Goods pnyintr 10 per cent, from Ist January
1802 to' :il8t December 1862, both days
inolu!'ive, —

Gnons paying 6 per cent, upon, from, and
afb.T the I st January 1 863, —

The |.*ieseiit duties remain in force until the
end of the year 1 860 :

Coffe*, green .....
Tea .-.---.

Goons pnying 30 per cent.

Almonds, walnuts, and filberts . - -
Ginger, jiimento, and pepper, ground
Mace, nutmegs, and cinnamon - - •
Nuts of all kiuds . . . . .
Patent medicines and medicinal preparations
not elsewhere specified . • - -
Spices, ground . . . . .

Snuff

Wine of all kinds ■ . . . .
Currants --.....
Dried fruit ......

Figs

Coffee, ground or roasted . • . .
Blacking ......

Tobacco, manufactured . . . .

Soap .......

Starch

Ale, lM!er, and porter . . . .

Goods paying 26 per cent.

Manufactures of Leather, vii. :

Boots and shoes . . . .
Harness and saddlery . . .

Clothing or wearing apparel made by hand
or sewing machine • . . .

Goods paying 1 5 per cent.
Book, map, and news-printing paper -

Duty percent.
advaiorem.

16 percent.
10 „
6 «

I 80 per cent.

i^-

^26 per oent.

16 pereent

rte<I, hIwII

duty

IK cnactvd
iblt! under
Hlmll, by
l>Ie.

V with the
■jRii. 0. 31,
'uKtoniH in
r thr mine,
xi>r(>i<eiona
ill the \>ro-
ilatiunH to
egulation*

t the Rate*

Duty percent.
advahrem.

'IS percent.
10 „
6 „

SV^

I 80 per cent

^25 per cent.

15 per cent

CUSTOMS DVTIF.S (CANADA)

GouM pa)'inf( 10 per cent. :

Anchor*, cwt. and uiid<-r ...

Bookn, printed ; |><TitMlicaU iind piiin|ihlelii
not liiiiiif rcpriiilK ot Hriii«li C"pyrii;lilit,
nor hhiiik iiccoiiiit Ixiokii, or cnpy bookn,
or liuiikH to lie wriiti'ii or ib'iiMii u|iuii ;
ond cxccptiiijf nUo HiMi", Tcmtncnt*,
prii\fr-b iik>-, and ili-\olioii;i| Ituukii •

Hru'iH in bars roils, iin<l •.liri'l* ...

Rrniiii or cop|M.>r wire iirnl win' clolb .

Cunu'og or inoxnlc.!, reni or imitntlon, when
set ill gold, siJTor, nml otiirr inctnl -

Canada piatco, tinned platC8, f^alvanizcd
iron, and »\u'.et iron ....

Copper, in bars, rode, bolu, or «hrcts

Silk twidt, for^liat*, boots, and shoea •

Iron, bar, rod, or hoop ....

Iron, nail and ipike rod ....

Iron, hoop or tire, for driving wliceli of to-
comotiTee, bent and welded ...

Iron, boiler plate .....

Iron, railroad bart, wrought iron chain, and
ipikea .......

Iron, rolled plate . . . . .

Iron wire ......

Jewellery and watches - . . .

Lead in sheet .•-...

Mapi, charts, and atlases - . . .

Sails, ready made . . . . .

Spirits of turpentine . . . .

Steel, wrought or cast . . . .

Cotton candle wick, cotton yarn, and cotton
warp .......

White lead, dry . . . . .

Plaster of Paris, cround and calcined

Hydraulic cement, ground and calcined

Red lead

Litharee .......

Phosphorus ......

Medicinal roots . - . . .

Drain tiles for agricultural purposes -

Engravings and prints . . . .

Straw, Tusca^i, and grass fancy plaits •

Tin, granulated or bar - . . .

Tubes and piping, of copper, brass, or iron,
when drawn ......

Zinc or spelter, in sheet . . . .

Locomotive and engine frames, cranks,
crank axles, railway car and locomotive
axles, piston rods, guide and i<lide bars,
crank pins, connecting rods, steamboat
and miU shat^ and cranks, forged in the
rough .......

Goods paying 2U per cent

All articles not hereinbefore enumerated as
charged with an ad valorem duty, or here-
inafter charged with a siiecific duty, or
declared free of duty, shall be chargeable
with a duty of 20 |)cr cent, on tlie value
thereof- ......

Goods paying Specific Duries.

Whisky of any strength not exceeding the
gtrangth of proof bjr Sykes' hydrometer,
ahall De chargeable with a duty of 1 8 cents,
per gallon, and so in proportion for any
greater strength or less quantity than a
gallon -..-.-.

Table of Free (ioods.

Acids of every description, except vinegar -
Agricultural Societies— Srcdii of all kinds,
farming utensils, and iniplenients of hus-
bandry, when specially imported by, for
the encoura<;emcnt of agriculture -
Alnm .......

400.

Duty pi r iiiil
II J raloifm

10 percent

20 per cent,

Duty.

DoUt. ct».

- 18

Free.

T mi r of F'rr t}i>."U— in/.finMn/.

Anatomleal pn>piirutiiiiiii ....

AnclioM, over ilcwt. - ....

Aniiniils ot ull kind* • - • . .

AiitiiiKiny ......

Aiiti(iiiilie», col liet ions of

Appiinl, weiirini;, and oilifr |>«iHiiial ••If-.t*,
nnd iinpli'inriits of li<in)uiiiilry (mil mer.
rliiin li-e) in Bctunl ime ot "pirnii. i'i'nilii>{
to SI ttli' in lliu pruvinca. and lu'i 0'iip,iny>
iiiK till' owner .....

A|ipnrel, wearing, ol' Ilritisli •ubjicti' living
iiliruuil .......

Ar(>ol ..... - •

Anus for the Anny or Navy and Indian
nations, provided the duty otherwise pay-
able tlicreon would be paid or borne by
the Trcamiry of the United Kingdom, or
of the provinrc .....

Ash, |iot, pearl, and soda • . - •

Bark, tanner*' •

Bark, used solely in dyeing

Barley, except pot and pearl

Barley meal •

Beans -*.....

Bean meal ......

Bear and bigg ... . .

Bear am) bigg meal ....

Berries, used solely in dyeing ...

Bibles, Testaments, Prayer Books, and de-
votional books

Blcacliing powder .....

Bolting cloths ......

Borax

Bookbinders' tools and implements -

Books, maps, and charts, imported not as
merchandise, but as the personal eiFerts of
|)ersons arriving in Canada, to become
bond fide residents of the province -

Botllea eontaining wine, spirituous or fer-
II.' ■■'.'.'•{^ liquors, of officers' mess

Brail !y i.R}«orted for officers' mesa

Bian an^ ' shorts .....

Brimstone ......

Bristles .......

Broom corn ......

Buckwheat ......

Buckwheat meal .....

Bulbs and roots other than medicinal

Bullion .......

BiirrstoiieB, wrought or unwrought, but not
bound up into millstones ...

Butter

Coin and bullion .....

Cabinets of coins .....

Cables :

Iron chain, over three-fourths of an inch
diameter ......

Hemp .......

Grass - .....

Carriage" of travellers, and carriages em-
ployed in cDirying merchandise (hawkem
and circus troupes excepted) -

Casks, ships' water, in use ...

Caoutchouc or India rubber, and gutta
percha, unmanulactured ...

Cement, mai ine or hydraulic, unground

Charitable societies, donations of clothing
for gratuitous distribution by -

Cheese

Clothing fnr Army or Navy, or Indian
nations, or for gratuitous distribution by
any charitable society . . . -

Coal

Cochineal -

Coke -

Commissariat stores • . . . -

Copperas ---..-.

Free.

t I

:1'>'

)•

■m '

'■ J?

f":

PAPERS RELATING TO

'I'ADi.y. of Frc'c UootU — cnntinutd,

( uikttiHxl, or til'- l>ark of lliu rorkwoo<l lr>!«
( <<rii, Incliuii .....
Coiiriii mill fltx nume ...
(iitloti wool • • . . .
L'reiiin of lunar in )Ty»tHlN

Diaiiiontli ami prcciout itone* -

Dru^;* iiitt'd >iilvly in dyeinf;

Dye Hill)!'!!, viz. : bark, lierrio*, driif^, nuU,
v<it{Ptul<li'H, woodi), and fxtract of IoK'
wood ....--

Eurth», clin< Hnd oclirrt, dry -
£((f{s ......

Emery

Emery, ^'la^n, un<l mind paper •

Felt hat liddics and hut fait

Fire-lirick . . . . -

Firewood .....

Fish

„ oil, in lit iTiidc! or nntiiral iitnte -
., products of, unmanufactured

Fmiiint; neiH and seines ...

FiNli-huokii, liiirH, and KHh-twtne«

Flux, )iem|i, and tow, undressed

Flour ......

Fruits, prpen

Fruits', (Irieil, the (rrowth of the United State*
only, «'liile the Ucciprocity Treaty if in
force ...•--.

Furti, sliiiis, peltii, or taiU undressed, when
imported directly from the United King
doui or Britinh North Ameriean PrO'
vinccD, or from the United States, while
the Reciprocity Treaty ig in force -

Gemn and mcduls ....
Gold beaters' brim inoul'U and skins
GravelH ......

Grains :
Barley and rye •
Beans and peas ....
Bear and bigg ....
Bran and shorts ....
Buckwheat .....
Indian com .....

Oats

Wheat

Meal of above grains ...

Grindstones, wrought or unwrought *
Gums and resins, in a crude state
Gypsum or plaster of Paris, ground or on'

ground, liut not calcined
Grease and scraps ....

Hams ......

Hair, Angola, goat, Thibet, horse, or mo'
hair, uiimanuiiiotnred . - .

Hemp ...--.

Hides ......

Horns ......

Household furniture and eiFects that have I
been in actual use for one month or more,
of persons coming to settle in this Pro-
vince, and in charge of the owner •

Household effects, personal, not merchan.
dise, of subjects of Her Majesty domi-
ciled in Canada, but dying abroad -

Indigo ---....

Inventions and improvements in the arts,
models or patterns of; provided that no
article shall be deemed a model which
can be fitted up for use -

Junk and oakum . - • . .

Urd

Lime, the produce of British North Ameri-
can Provinces only - . . .

Free.

Tablb of Free Goods— roN^iiiiri/.

Maebiucry, motlela and patlemi of; pro-
vided the same lie not put to actual a*«

Manilla gruit« .....

Manuren of all kind* ...

Marble in block* or slab* unpolished

MeatK, fresh, smuked and salt •

Menngerii'K, linno*, cattle, carriage*, and
liurnp«s<'i< of; nubjeut to regulation* by
the (fovernor in Council . . .

Military riolhing fur Her Majckty's troop*
or nnlitiu ......

Military Htores ntid inuterialt fur military
clothing imported for the use of the Pro*
vineiiil niililiu, under »ucli restrictions a*
niny Ix.' piisKed by Qovernor iu Council .

Miiiivts and sen grass, fur upholstery pur-
poses .......

MuhIcuI inhtruroents for military band*

Nitre or sultjielrc .....

Onkum .......

Uils: — cocoa nut, pine, and palm, in their

crude, unrectiKed, or natural state -
Oil cuke or liniweil cake ....

Ordnance dores .....

Ores, of all kinds of metals ■ . .
Osier or willow, for basket-makers' ujc

PaukagcN of all kinds in which goods are
usually imjiorted, except the following,
viz.: spirit, wine, oil, beer, cider, and
other casks for the containing of liquid,
baskets of every description, trunks, snuff
jars, eartlienwai'c jars, glass jars, bottles,
and barrels conlaming, graiii, seeds, anil
peos .......

Pig iron, pig lead, and pig copper

Pitch and tar - . ....

Philosophical instruments and apparatus,
globes .......

Plant:', shrubs, and trees ....

Printing ink and printing presses •

Provisions tor Army or Naty, or Indian
nations ......

RsRs

Resin and rosin .....
Rice .......

Sailcloth ......

Sal soda .......

Sal ammoniac ......

Salt

Seeds, for agricultural, horticultural, or ma-
nufacturing purposes only . . .

Ships' blocks ......

Binnacle lamps . . . . .

Bunting ......

Canvas, sail, Nos. I to

Compai<ges ......

Dead-eyes ......

Dead lights ......

Deck plugs ......

Shackles ......

Sheaves ......

Signal lamps . . . . .

Travelling trucks . . . . .

Cordage which upon importation shall
have paid the duty of Customs, shall be
entitled to drawback under the 8th sect.
22 Vict. c. 76, when applied to ship,
building purposes, and under such re-
gulations as the Governor in Council
may make .....

Ships' water casks in use ....

Silk hat felU

Soda ash .......

Sago flour ......

Fres.

Tin

<;<i^-

( CUSTOMS DUTIES (CANADA).

Tabli of Frrc Uood»— rmifmud/.

Spfcimrnt of MtunI biitory, ininer«loKy,or

botany

Hlonr, unwruuKht . . . . •
8lt«« .......

StercoljTDe Llucki, fur printioff purpoitet
Statue*, liutti, and oants, uf marble, bronie,
•labwteror iilaitrruf Pari*, paintio);* and
drawing* an worki of art, •|)C('inirni of
fculplure.rabineta of coin*, medal*, gem*,
and all collection* of aniiquitie*
Sulphur or tirinittonc - - ' .

Tin and zinc or fpclicr in block or pi};

Tallow

Tcatcl*

Timber and lumber of nil kindii, round,
hewed, lawt'd, unmanufacturvd in whole
or in part ......

Tobacco, unmanufactucd ....

Tool* and implcmcnU* of trade of liimdiornfli-
men arriving in Canada, when nccompa-
nied into the Province by the actual Rcttlcr,
and brought in by Boch settler fur hi* own
uac, and not for xalc ....

Trecnaili ■

Turpentine other than spirit* of turpentine -

Type metal, in bktek* or p\g» ...

Varnish, bright and black, for i«hip builder*,
other tlian copal, carriage, shellac, maatio,
or japan .,..,,

T»it* of Fru Oanit—foitlinufJ.
Veptlable*, not elsewhere spcrifinl .
Vrhiclr* of travellers, ni,|il thuw; of i
huwker* and |M-dlara • . . .1

Water lime, ungruund • • . . I

Wine, spirits ond iermealad liquors of all '
kinds, iin|>orted for ntriceri' mess, and Ike i
packages containing Iht tuiiir

Wood for hoop* when not notched •

Woods uf nil kiiiilit .....

Wool

All iniiMirtationH for the uso of Ilor Ma*
jesly s Army nnd Niivy srrving In
Cunndn, or fur the public uses of the
I'rovinc) •

Taul. if Prohibitiunx.

The following nrtieles nro |iroliibitcd to lii<
imirarted under a prniilty of f,i)/., together
with the forfeiture of the' purcd or pnckiign
of gooda in which the same mny be
fuund :

Books, drawings, painting", and prints
of an immoral und iiiducont clmriu'ter

Coin, base or counterfttit

Free.

Prohibited.

Fra*.

Copy

— No. 2. —
(No. 23.)

of a DESPATCH from his Grace the Duke of NewcatlU,
Governor the Right Honourable Sir Edmund Head, Bart.

K.G., to

No. 3.
The Duke of New.
castle, K.O., to
(i)vernor the
Right Hon. Sir
Edmund Head,

-''l"«t in

Sir, Downing-street, 13 August 18."i9

I HAVE the honour to transmit to you the copy of a Memorial which has u^""
been addressed to me by the Chamber of Commerce and Manufactures at 13 August 1S59,
Sheffield, representing the injury anticipated to their commerce by the increased ,
duties which have been imposed on imports by the late Canada tariff.

I request that you will place this representation in the hands of your £^ecu<
tivc Council, and observe to that body that I cannot but feel that there is ^,^
mvdr force in the argument of the Sheflield manufacturers. Practically, this .
heavy duty operates mfferentially in favour of the United States, in conse-
quence of the facility for smuggling which so long a line of frontier affords, and
the temptation to embark in it which a duty of 20 per cent, offers. Regarded
as a fiscal expedient, the measure is impolitic ; for whilst any increase of con-
traband trade must be at the expense of the Exchequer, the diminution of
forvign iuiportations will probably more than neutralise the additional revenue
derived froiii the higher duty.

Whenever the authenticated Act of the Canadian Parliament on this subject
arrives, I may probably feel that I can take no other course than signify to you
the Queen's assent to it, notwithstanding the objections raised against the law
in this country ; but I consider it my duty no less to the Colony than to the^
Mother Country, to express my regret that the experience of England, which I
has fully proved the injurious effect of the protective system, and the advan- \
tage of low duties upon manufactures, both as regards trade and revenue, >
should be lost sight of, and that such an Act as the present should have been V
passed. I much fear the effect of the law will be that the greater part of the |
new duty will be paid to the Canadian producer by the colonial consumer, /
whose interests, as it seems to me, have not been sufficiently considered on this
occasion.

I have, &c.
' (signed) Newcattle.

400.

PAPERS RELATING TO

■ ■->]

\ 1

! 1* ) (

. 1! . 1

i [

Encloture in No. '2.

dumber of Commerce and Manufacture*,
M,v Lord Duke, Hheffield, 1 Augu»t IHA9.

in No. a. I IIAVK the hoixiur to rnrliwe a Memorial from thia Chamber of Commerce rrii|>crtinK
the greatly augmented dutiea levied upon manufacture<l import* into the Cunadian
Colonio*.

Thi* Memorial in preienle<l in acr<irdanre with a wiah cxuresaed by your (trace at an
interview granted to a deputation from thia Chamber on Wedneaday the Soth uf Juljr
laat.

It Mill forth the main jiointii in which thew greatly increaied duticn are hiirdenmime to
home commerce ; and thia Chamber bega that the aubject may receive your (irace'a
attention.

I have, tie,
(aigned) CharUi E. Smith,

Honorary Secretary.
Ilia Grace the Duke of Newcaatio, K. o.,
Ac. 8tc. &c.

To Hia OnM the Duke of NtweastU, Secretary of Sute for the Coloniet.

Chamber of Commerce and Manufacture*, Sheffield,
My Lord Duke, 1 Au^uat 1859.

In acconlance with a jirouiiHO made by u* on the 2()th ultimo, when we had the honour
of waiting upon your Grace on behalf of the uicrcliantti and manufacturcrii of Sheffield, to
repreaent the injunr anticijiatcd to the trade of this town from the recent advance of the
import dutieii of Canada, wc now beg rcHpcctfully to rc-ntate the reaaona why such
injury i8 apprehended. Thenc reaaona may be aaid to be twofold; first, thoee arising from
a conviction that it ia the deliberate iMilicy of the Government of Canada to foater native
manufacture* by fiacal protection, and every other meana in their power, and, second,
thoae arising from a consideration of the fact that there exiats close to the Canadian
frontier a body of competing United States manufacturers, to whom such contiguity more
than counterbalances tne fact that they have to pay the aame duties as ourselves.

For proof that we are not mistaken al)out what the policy of the Canadian Government
u, we would refer your Grace to the tone of the whole press of Canada, to the aiiceches of
members of the Canadian Parliament, on both sides of the House, and especially to the
steady increase of duties levied on Sheffield goods under every successive tariff. It will
be sufficient to say on the last ]Kiiut, that within 18 years or less, the duty levied on
Sheffield goods has been steadily advanced from 2^% ^ 20 "/o. We would remind A
your Grace, in the second place, that while there is a protection in favour of Canadian *
manufactures against Sheffield of from .']5<ya to 40%, consisting of land carriage, freight,
insurance, commission, shipping expenses, dutv, &c., that owing to the close contiguity of,
and cheap transit from the competing scats of*^ American industry, similar goods can be
sent across the Canadian frontier by United States manufacturers* at a cost of from 22}
to SS'/o. It is, therefore, plain that the American manufacturer has actually an advantage
over the Sheffield manufacturer of from 12} to 15%. As this is a natural protection,
however, and consequently one which remains about the same, be the Canadian duty
what it may, we only name it to show your Grace how great the obstacles are naturally
against which Sheffield lui)<>ur has to struggle, and for the purpose of remarking as another
objectitm to any increase of duty, that it is actually the interest of American manufacturers
that the Canadian duties shoum be raised, since any hinderance or confusion caused to
Sheffield manufacturers can only tend to divert the demand towards markets easier

aused to y
easier of/
J./'-JCis

access, and with which intercourse is more quickly exchanged than with Sheffield.>
important too, t > remember that the American manufacturer has more than 1,000 miles of
unguarded frontier across which he can smuggle with impunity. The merchants and
manufacturers of Sheffield have no wish to obtain special exception for themselves, and
do not complain that they are called upon to pay the same duty as the American or the
Gennan, neither do they claim to have their goods admitted free of duty ; all they ask is,
that the policy of protection to native manufactures in Canada should "Be' distinctly
discaimtenanced by Her Majesty's Government, as a system condemned by reason
and experience, directly contrary to the policy solemnly adopted by the Mother Country,
and calculated to breed disunion and distrust between Great Britain and her Colonies.
It cannot be regarded as less than indecent, and a reproach, that, while for 15 years the
Government, the greatest statesmen, and the press of this country have been not only
advocating, but practising the principles of free trade, the Government of one of her
most important Colonies should have been advocating monopoly and protection. Under
the artincial stimulus of this system, extensive ana numerous hard-ware manufactories

IutT»

v>^

( ISTO.MS DL JIKs I ANAl»A).

uriiiiL' 111' '''ill ill ( iitiiiilii F.aj>i mil \S<'-I. .iii>l l!» n<l<i|ili<'ii ■ I' iiirriM'-inL; >luti«M lm«
nr «ijjTi^l t'lT morr t" (>p runiniciiri'il. W'r nri' nwnii' thai tin- H«<';il ni'<'f<.<itif< of

1lH\'' Kill

ImM'Ii Inr «ljJTin

tlio ('iiiiHilimi <iii\ciMiin-iit lire iir),'«'<l ii.< llir I'liicf rjun- f'^r |i«--iiij{ tlio Int.- Turirt' Itill.
Tilt" Ik iii't the wlinlc imili: ihmhio I'uii it.tI I'lc ipiiimt* <•!" tin- |ii'ii\iii<'("> iiikI tin* i>|i<<<-i'|i<>ii
ot' till' Mfinlu'ri* ol lioili lliiiirtx. iiiiii \w iici'< i\('J li'i nil iiirliiii!, Imt i'\i n it' tlcit wi-rc
tlic ciiiif'c. 'vr «(pi)rpi\(' tlmt ll'T Mnji ■<r-V (iMvcmnifiif Im< :\ ri^lit I'l <Ifiii;ttii| itrit what
re»cniip <■ «iprilr<l i<li;i'l It v;ii ri| in i«iiim' otlior »;iy tliiiii that wliiili i- i |i|kim'i1 t" thi-
nrknnwlcil^i'il roinnii'ii-inl |Hilii-y nt tin- Ilii|><Mi:il (•<>« >'i'uiiu'iit, iimi ili •ti'ii<'ti\c it' ilio
iiitTc-t- i.r iliii,'"' iii:iiuil!i''ltiiiii;i ('iwii- ill (irc'it niltaili wliicli Irnilf willi Cnliuiln. \»
K.iinc ovi-lciHT tl?:»f tlii- now tniirt' !• I'lijiTll.'iuil'Ii' in C'llitil.i! j^'roiiniU. \\v woiilil (i:aw
yiiiir <ir:irc''i iitti'iiiinn ti f)u' t'nllowlii;^ cxtrni't: —

Tlif New Ciiuudiitii 'ruilH':— " Ml', dull'." larirt i- ln-aiiiij; wiili lircaJt'ul fc\i.rii^\ onour
Iriitli'. 'I'lif iniiiuiliul Ti'i-i'iilnrn- tlu' fir-t i-ix ni.Milli:' .if \>t'A) wi'it l,!)."l;),9:'S d illav, while
tin ".•'I' (if tlii> riiiTC.''|><>niliii^ iicriuil lii't vi'ar woic 1,,')3J.1.'M i1<<1larii, i<liii\\in){ :ui iin'ri-anc of
iiiilv !i7 |K'i- ciMit. Tlic iliitip?< o<illoi-tri1 in the Mnu' poriml. in IN.'**, were lOM.lOl ilnllan*.

Bnil in \xy.<, 'iM.W* •lolluri', wliicii Aww ' an aii^n tailun mi the laii'<leu« of tiie (leople

of vrry iioiirly 70 |ur cent. The eximrt.-, dnriiij; the "ix immtli* o' I8jl>, were only
147,444 (hiUai'i*; 37,OG!) dolhir-< le*" tliiin in IH.>H, and llls.li.Vi dollni-ieM than «e |i,'iid in
' ■'' ' With de«rea-cd means of |ia_vnicnt we haM' iiii|ii<i'ied more and |>uid more to

diitipM alone,

the <t(»veriiinent than li>i<t year, llow eau u conntry iii-oHjier uiuler "Uih lairden" ii." iho
j>rei<ent ( Joverntticnt have imposi'il?" — Tor.'iitM (_\V.t.'.K " (Jhihe"

.iiily Mill

We reuiuin, &i'.
(digncdj i'liiirlin Athintoii,

Mayor of the n>irou);h of Slieffield,

iiiilierf Jii-hiDH.

Master (.'iitler,

For John ilohsoii Smith,

Pre.-'ident of the C hauilicr of C'oiiiniei'ee.

C'/iar/«> K. Smith,

Honorary ^eeretJlry.

— No. M. —
(No. .57.)

Copy of a DESPATCH from His Grace tb.e Diiiit' of Xaicnstii; k.g..
Governor the Right Honourable Sir I'.dmtoid Hiatf, Bart.

No. 3.

TIic Duko gf
Noweastle, K.o.i
1.1 tiiivcmor the
Itiglit Hon. Sir
Kilmund lleadi

Sir, Dow luii:'- street, 5 November 1859.

With reference to my Ot-spatch, No. 23 * of the i;uh of August, relative to Hart
the Tariff of Customs Duuies recently enacted by the Legislature of Canada, 11 •'' November
copy of which was tran.Mnitted to me with your Dcsjatch, No. 401 of the
26th of March last, I er close, for your information the copy of a report on the
subject of that Tariff, w liich has been jirepared by the Board of Trade.

I have, &c.
Governor Sir E. Hea', (signed) yewcastle.

&c. &c. &c.

I860.

• Page 7.
t Page 3.

Enclosure in No. .3.

Office orCoiiiniittce of Privv Conncil fiT Tr.ide,
«ir, Whitehall, 20 Oetober 18.59.

I HAVE laid before the Lords of the Committee of Privy Council for Trade your letter Knclosiirc in No. 3.
of the 26th September last, trcneinittiiif; for their considemtion, by direction of the Duke
of Newcastle, a cojiy of an Act of the present Session of the Canadian Parliament,
an Act of the preceding Session imposing duties of customs.

In reply, I am to request that you will state to his Grace, that ilic Tarift annexed to the
present Act contains niodificntions of tlie one cstabiii-hed by the Act of 1858, the most
striking feature of wliich is the extension of ad valuran duties to tliOfC articles, which
under the latter Act were charged with specific and rated duties.

The Act is, however, still open to the principal objection to which the former Act was
liable, viz., the augmentation of the duties upon all the most important articles of manu-
facture from 1.5 per cent., which was the rate of duty charged ujwn them prior to 1858,
to 20 and 25 per cent.

400 B Among

it;

lit

PAPERS UELATINC. TO

li fl

rf :i;i

AmoiiK thrmp anirlc8 liuMc hip It r tlie )ii<><tiI TiirifTtn 20 iicr cent, ad valorem, are all
tlip lraJiii)r tcxtilf tabrics, mich nx coltoiin. wimiIU-iih, eilkH, »ii<l liiicni', nn well an inin and
himlwarc, piirilionwaro. anil unmanufactured leather, while uianutucturcM of loath r,
viz., harnesf and caddlerv, IkmiIh and flioen, are eharged with '2.j per cent, ad valorem.

( M' all these artiche the Colony lian hitherto drawn itj4 prinripal supply from the United
Kiii);di>m.

The aggregate revenue derived from the «lutie« upon tliene articles alone, exoluaive nl'
manufacturer of leather in 18,>7 wan 4K7,.'Mt6 /.

The increaHt'd taxation u]>on tiicm under the new Tariff will amount, assumlug the trade
to maintain il» i)renent value, t4i no len« a sum than l.'>»,102/.

It itt unnerenmary to remark tiiat the iuureased burden tbu8 placed uiHin a tnulc of so
uiuch im|Mirtauoe, cannot fail to be Bevcrely felt by tlie exporterit of tlie United Kingdom,
•8 well MO by the coniiunicrrt in the Colony, and cannot but be regarded by my Lords with
much regret.

This regret is increased by the reflection, that, owing to the facilities afforded by the
extensive inland frontier of Canada for contraband trade, the present measure has • direct
tendency to encourage the compotitioii of United States manufacturers in the Canadian
markets, while by the protectitm which it will at the same time afford to the manufactures
of the Province, it will favour the interests of a very small class at the expense of the
bmly of the popidiifici.

My Lords observe that Sir E. Head states in the Des]>atch which accompanies this Act,
that It is rcoiiired to meet the financial engagcmcnt.s of C'ana<la.

Having regard to the statement, and also to the local peculiarities of the Province
which may be siij)posed to render it difficult for the Legislature to draw their principal
CiistmiiK Revenue from those articles of importation, which in the United Kingdom affortl
the main rcscmrce of the Exchequer with tlie least possible injury to the trade; viz., tea,
tobacco, sugar, wine and spirits, my Lords are not prejMird to condemn the course which
lin." been adopted.

They think, however, that in leaving the Act to its operation, Her Majesty's Govern-
ment should express their regret that the fiscal requirements of Canada shimld have
C(mipellc(l it to resort to a measure so objectionable in principle, and their apprehension
of the injurious effect which it is calculated to produce ujwn the industrial progress of the
Province.

I am to add, that in the present Act a duty of 10 per cent, ad valorem is imposed upon
" " printed books," &e., not being reprints of British copyrights, which prior to 1858

duty
14th

were adniitted duty free, while reprints of such copyrights remain still subject to the duty
ol' 1;') per cent, nrf valorem, cmly imposed under the Canadian Act of the 1.1th &

Vict.

c. (i.

The effect of this c!:a.igo will be to diminish by two-thirds the amount of iprutection
hitherto enjoyed by British authors cutitl d to copyright ; and as this protection was given
in lieu of the mimopoly which they jireviously possessed in the Colonial market, inv
Lords would submit that it constitutes a dejiarture from tlie understanding uiKin which
Her Majesty was advised to give effect to the Canadian Act, to which I Tiave referred,
by Her ()rder in Conncil, of the 12th December 1850, which was issued on the ground
that the Act in ([uestion afforded a reasimable compensation to British authors Un the
loss of their monopoly.

The Duke of Newcastle is aware that under the Act above refcn-ed to, it ig provided
that the proceeds of the duty upon reprints of English cnjiyright works shall be paid
into n fund, to be distributed among those who are beneficially interested in the copyright
of such work.-, that it may be said that if the effect of this change should bo, as may be
expected, to stiii.'ilate the importation of yuch reprints, this I'und will be iirojMirtiouately
augmented ; but as this contingency appears to niy Lords to afliird a very doubtful com-
pensation to British authors for the diminuticm of the protection which they have
liithcrto enjoyed, they think that the attention of the (.ioveriior should be called to this
provision of the Act, and that he should be instructed to take the earliest occasion of pro-
posing to the Legislature of the Province to restore the original arrangements, cither by
admitting English copyrights duty free, or by augmenting the duty uiKin reprints of
suili well;.- <! 2." per cent, nd valorem.

I am, &c.

Herman Merivale. Esq., c. B. (signed) James Booth.

«;v^

ersTOMS niTTiRs (Canada).

-' —No. 4.— - ■ " '^

(No. 118.)

" Copy of a DESP.VTCH from (Jovernor the Right Ilonotirahlc Sir F.dutuud
Head, Bftrt., to His Grace tlie Duke of \ewcasllc, k.o.

Government lloiuse, Uufhtc,
My Lord Duke, 1 1 Novembtr IH59.

I DID not fail immcdintfl/ to call tlie attention of my Council to your
Despatch of 13th August, No. 23.* The subject was by them referred to the
Finance Minister, Mr. Gait, who has rejwrted thereon.

According to the recommendation of the ("ouncil, I now forward for your
Grace's consideration a copy of tliis Report.

I have &n.,
(signed) fidmumi Head.

His (-trace the Duke of Newcastle, k. o..
&c. &c. &c.

No. 4.
0»Nernorllir Uighl
H'>n. Sir F.tlniund
Hitd, Uart., to
Hi* Grace tho
UukeufNctkUMlle,
K.o.

• P.ge 7.

Knolosure in No. 4.

Copy of a Report of n Coniiuittcc of the Executive Council approved by Wit Eiicloiiure in No.4>

Excellency the (Tovcrnur General, on the 12th of NovciuDcr 1859.

On the Rc|>ort of the Honourable the Minister of Finance, dated 2.5th Octol>er ultimo,
fiubniitting ccrtnin reninrkf and stutenientu upon the Despatch of hie Grace the Duke of
Newcastle, dated l.'Uh August, and upon the Memorial of the Chamber of Commerce of
Sheffield, dated 1st August, transmitted therewith, —

The Connnittce concur in the views expres.scd by the Minister of Finance, and recom-
mend that a copy of his Report be '"'warded by your Excellency to Her Majesty's
Secretary of State for the Colonies.

Certified,
(?i<{netl) William U. Let, C. E. C.

REPORT.

The ^linistcr of Finance has the hoitoni- i°csi>cctfully to submit certain remarks and
•tatcmentt upon the Despatch of Hi.4 (inu'c the Duke of Newcastle, dated 13
August, and u])on the Memorial of the Chamber of Commerce of Sheffield, dstad
1 August, transmitted therewith.

It is to be deeply regretted that his Grace should have mvcn to so >f«>at u degree the
weitfhT'orhis ganct i on to the statements in the Memorial, without having previously afforded
to tne Government of Canada the oi>portunity of explaining the fiscal policy of the
province and the grounds u])on which it rests. The representations upon which his Grace
appears to have formed his opinions are those of a provincial town in England, professedly
actuated by selfish motives ; and it may fairly be claimed for Canada, that tlie deliberate
acts of its Legislature reprc-^enting nearly three millions of people, should not have been
condemned by the Imperial G.)Tcrnmcnt on such authoritv, until the fullest opportunity
of explanation had been afforded. It is believed that nothing in the Legislation of Canada
wan-ants the cxjirc'ssions of disapproval which are contained in the Despatch of his Grace,
but that on the contrai-y due regard has been had to the welfare and prosperity of Her
Majesty's Canadian subjects.

From expressions iise<l by his Grace in reference to the ganction of the Provincial
Customs Act, it would appear that he had even entertained the suggestion of its dis-
allowance ; and tlioiigli, happily Her Majesty has not been so advised, yet the question
haviug been thus raised, and the consequences of such a step, if ever adopted, being of the
most serious chiinicter, it becomes the duty of the Provincial Government distinctly to
state what they consider to be the position and rights of the Canadian liCgislatiirc.

Respect to tho Imperial Government must always dictate the desire to satisfy them
that the jwlicy of this country is neither hastily nor unwisely formed ; and that due re-
gard is had to the interests of the Mother Country iia well as v/i the Province. But the
Govcrunicnt of Canada acting for its Legislature and peo]ile cannot, through those feelings
of deference which they owe to the Imperial authorities, in any manner waive or diminish
the right of the people of Canada to decide for themselves both as to the mode and exteut
to which taxation snail be imposed. The Provincial Ministry are at all times ready to
afford explanations in regard to the acts of the Legislature to which they arc party ; but

400. 8s a. subject

■y

PAPEUS RELATING TO

ncral

H(l-

nubjeot to their July iinil ullogiancc to Her Majc.-ty, their rc^iion-ihility in all ttcn
(juesfionK of |Kilicy must lie to the Provincial Purliaiiioiit. liy whoso confiiionco they
miniHfer tiic aflfairH of the couiilry ; and in tlic iiii|M>i>ition of taxation, it is so plainly nccoii-
pary that the Administration and the people nhoiild he in accord, that the former cannot
admit re-ponsilulity or reriiiire aiioroval heyoncl that of the local Legislature. Self-
^(ovornincnt would "be titterly nniiiliilatcd if the views of the Imiicrial (Jovernmeut were
to lie preferred to those of the people of Canada. It is. therefore, the duty of the present
fiovernincnt distinctly to affinn the rifiht of the Cana.lian Legislature to adjuHt the taxa-
tion of the people in the way they deem best, even if it should uufortunat»'ly ha]>f)cn to
meet the disapproval of the Imiierial Ministry. Her Majesty cannot be advised to dis-
allow such .icts, tinlces Iler advisers are prc|iarcd to assume the udministration of the
afliiirs of the Colony irrespective of the views of its inhabitants.

The Imperial CJoverument are not responsible for the debts and engagements of Canada.
Tliev do not maintain its judicial, educational, or civil service ; they contriluito nothing to the
internal government of the country, and the Provincial Legislature acting through a ministry
directly res|ionsilile to it, has to make jirovisicni for all these wants ; they must necessarily
claim and exercise the widest latitude us to the nature and extent of the burthens to be
placed upon the industry of the people. The Provincial Goveniiuont believes that hia
(trace must share their own convictions on this iiniKtrlant subject ; but as serious evil
would have resulted had his Grace t:iken a dittereiit course, it is wiser to prevent future
complication by distinctly stating the jKisition that must be maintained by every Canadian
Administration.

These remarks arc offered on the general ]irinciplc <if colonial taxation. It is, however,
confidently believed, that had his Grace been fully aware of the iiicts connected with the
recent Canada Customs Act, his Despatch would not have been written in its present
terms of disaiijiroviil.

The Canadian (rovernnient are not disixiscd to assimic the obligatii'n of defending their
policv against such assailants as the Shcnicld Chamber of Commerce ; but as his Grace
appears to have accepted those statements as correct, it may be well to show how little
the memorialists really understood of the subject they have ventured to pronounce upon
so emphatically.

The object of the Memorial, is " to represent the injury anticipated to the trade of this
town (Sheffield), from the recent advance of the import duties of CanuJ.u" To this it is
sufficient reply to state that no advance whatever was made im ShcfKeld goods by the
Customs Act in question ; the duty was 20 per cent, on these articles enumerated in the
former tariff, and the only difference is, that they are now classed as un-enumerated, paying
the same duty. But on the other hand, by the present tariff, the raw material, iron, steel,
i c, used in the manufacture of such goods, iios been raised from .5 per cent, to 10 per
cent. : consequently under the Act of which the Memorialists complam, their pos'tion in
competing with the Canadian manufacturer is actually better than under the previous
tariff. Tlie establishment of this fact entirely destroys the force of the whole argument
in the Memorial, as regards the trade they especially represent.

The Chamber of Commerce, in tiieir anxiety to serve the interests of their own trade,
have taken uj) two positions from which to assail the Canadian tariff, which are, it is con-
ceived, somewhat contradictory. T''*')' **'***' *'"''■ '' '* intended to foster native manufac-
tures, and also that it will benefit United States manufacturers. iLini^Ut be siiflicieut to
say that the tariff cannot possibly effect both these objects, as they are plainly antagonistic ;
but it may be well to put the Chamber of Commerce right on some points connected with
the competition they encounter from the American manufacturers. There are certain
descriptroiis of htu-dwiire axul cutlery which are manufactured iu a 8U|)crior manner by the
Aincrican an^ Canadian manufacturers, and these will not, under any circumstances, be
imjiorted from Sheffield. In these goods there is really no competition ; their relative
merits are perfectly well known, and the question of duty or price does not decide where
they shall be bougnt. In regard to other goods in which Shefheld has to compete with the
United States, it can be easily shown that no advaiitiige can by possibility be enjoyed by
the foreigner in the Canadian market, because Sheffield is able now to export very largely
of these very goods to the American market, jiaying a duty of 24 per cent., and com-
peting with the American maker. Certainly, then, in the Canacia market Sheffield,
pay injf only 20 per cent, duty, can have nothing to fear from American c<mipetition, which
is subject also to the same duty, and even if admitted absolutely free, would yet be somewhat
less able to compete than in tne United States. The fact is, that certain goods are bought in
the Sheffield market, and certain in the American. "We have in Canada tradesmen who
make goods similar to the American, but not to the Sheffield ; and if our duty operates as
an encouragement to manufacturers, it is ratlier against the American than the English
manufacturer, as any one acquainted with this country well knows.

Tlie C'l'uwber of Commerce is evidently quite ignorant of the principle upon which the
valuation of goods for dnty is made by Canada, which is on the value in the market where
bought. The Sheffield goods are therefore admitted for duty at their price in Sheffield,
while the American goods arc taken at their value in the United States. This mode of
valuation is clearly ju favour of the British manufacturer, and is adopted with the delibe-
rate lutention of encouraging the direct trade, as will be shown hereafter.

The calculations offered by the Chamber of Commerce as to the cost of delivering
Sheffield and American goods in Canada are wholly erroneous ; they state the cost as 35
per cent, to 40 per cent., against 22J per cent, to 25 per cent. ; but their whole case rests

upon

Hi'--

CUSTOMS DUTIKS ((ANAPA).

t«

U|i'"i /t a.-'.Auiiijitit.ii liml tlu; <iiijriii.il :■-! ol' both iii liu' s.iiiiv, wlilch irt iiiaiiilVoli . aliriunl,
lidt'i 11? niiowr., ludirolly, hv SlicHirl.l 1" iiijr n larjre cxiiorfor (o tlio StatO!<. uimI, ilirivtly,
Criiiii the fait that, in the nifc oi' llic Aiiici-ioan inaki r, iiir. raw iimtorial ha* tn pav a duly
i.fL'J por ocMt.. \\hil«' lie nvjnir.'.s hi^'liir iiitcrciit lii.tli for his tixcd and w.irkiiii,' <:i|>ital,
aril lia* t<> |>av lar^ir wnp'r* tor skillt d htlioiir.

Tlic ClkainiHir nt' Cuiaiuurct' attaolicd much wcl^jht to their allcgatitiii, tliat Canada has
" iiiori" than 1,(M)0 mile-' ol" iiiif^uardod IVimtiir ;" tliis is", like most of thnhc in thf Mmiu-
rinl. a mere n-ckK'Hn iiiisi-rtinn. made in i<rn<irnni'P nl' facti*. The frontier i>f Catinda ii nut
(■r<'-r^fd by a rc>a>l ui' r.ny tU'^ciijitiim but uuc (the Kenncbuc ) caxt uf tliu -Ij iiuruUul
of latitude; it extciidri abuut 12U luilcj alou); llic pwrallvl tu thu Uivcr St. Lawrence ;
theiiee up the river alMint KKI mileH to Lake (>ntario, above whicit it U separated from ihi;
United htatCK by the (ircat Lakesi, avera^in;; (iU inileii in width, t«> the extreme we^t ot*
Lake Superior; with the two exr.eptionx of the Niagara river, 30 miles, for a considerable
extent ini|iai)i>ab!<>, and by the Detroit and St. Clair rivers, 70 miles. The lakee are not
nn\i,irated in >\inter, and in summer offer great obstacles to smuggling}, from causes which
it would take too innehH|iueu to recite; conKequontlv, the frontier which offers any avenues
f.>r Hmnjrgling is limited in reality to about 320 miles in all; and so far from being un-
guardid, a most oHieient and zealous staff' of officers is employed upon it, occupying every
available route. Kailways have also to a great extent removed the temptation and ability to
smuggle : the goods are all brought from the United Statex to the frontier by rail, and it
is cIieaiK !• to pay the duty demanded on goods generally (say, 20 per cent.) than to incur
the nd<lit!onal expense of seeking another mode of conveyance, combined with the risk of
a contraband trade. Siuug'rling, to a certain extent, no doubt takes place, but it is gene-
rally f(U' the mire supjily of frontier villages and settlements, and in most cases of tietzuro
we find that the goods arc of the most portable dcscri[ition ; whisky and manufactured
tobacco are the only bulky articles ever smuggled, and on tlicsc articles the duties are "0
jier cent, and 40 per cent. They would not be smuggled were public opinion satisfied
with the im]iosition of a lower «luty, say 20 per cent.

The Chamber of Connnerce has chosen to allege as its authority for assailing the pre-
sent Canadian Customs duties, the newspaper statements to which they have had access,
and the memorialists have permitted themselves, on such authority, to use niont unbe-
coming language towards the (ioveriinicnt of Canada. It would have been more projier
had thev iiiiotcd the statements of the policy of the Government made by its Finance
Minister, rather than those of the public press, and on this point there is now submitted
an extract rnnii the remarks made by ^Ir. Gait on the introduction of the new tariff, cud
which were fully rejiorted in all the leading newspapers: — " There is no more important
" micstion that can engage vhe attention of any country than its commercial jwlicy
" Tliere arc some who woidd do away with customs* duties altogether, and have resort to
" direct taxation. Others, again, are in favour of a tariff which sliall afford protection to
" natTve industry, auVF avoid the necessity of importing goods from abroad. 1 think it is
" imiKissiblc for Canada to adopt alto<retner cither of those measures as a iiual policy. I
" tliink we must have reference to what are the great interests of the country in refer-
" eiiee to taxation. The first of them undoubtedly is agriculture. There is also a large
" iiortion of the people engaged in the manufacture of timber, and the commercial inte-
" rest is by no means small. There is .also a manufacturin<' interest growing up, but it
" lias not yet attained the ningnitiide of the others of whicli I have siK)kcn. 1 do not
" believe that the adoption of a protective policy is possible in Canada, on account of the
" extensive frontier that she has to protect. It is plain that if we raise the duties beyond
" a certain point we of!'cr a reward to iinscrii]iulous jiersons to engage in contraband ti-ade ;
" and amiin if by raising the duty on those articles too high wc prevent their introduction,
" we must necessarily have recourse to direct taxation. I do not think it jiossible or
" desirable that taxation should be raised to the rate adverted to. The duties imposed
" are moderato, and since they had been raised from I^J per cent, to 15, various manu-
" fiictories have been created, have thriven, and arc still thriving, and I am not aware
" tiiat during the recent extraordinary monetary crisis they have suffered to any extent.
" It is right, in raising a revenue, to have respect Ut the jiossibility of finding employment
I '* for a portion of the population, but, on the other hand, it is not proper to create a hot-bed
* " to force maniifncturcs. The revenue, we have to raise jicnnitted the putting on of duties
f," which would give some encouragement to parties to embark in manufactures. When
*• a person did so under a systei-i ef moderate duties, he had reasonable ground of assur-
" ance that the system would not be altered to h'.s disadvantage ; but if the duties were
" hi"h the system would be regarded as one of class legislation, and as not likely to be
" permanent. The true object to be accomplished was to make provision for tjie public
" wants, and so to distribute the burdens as to make them press as equally - possible
" uijou ail, or to afford equal encouragement to all interests."

The nature and value of the information obtained by the Chamber of Commerce may
be judged by tlieir appending to their Memorial an extract from a paper bitterly op|K)sed
to the Govcrnincut, which, taking up the result of six months of trade of Toronto, a uort
of only thiid-ratc magnitude, pretends to give the result of a tariff which ha<l only been in
operation for three months out of the six months, from which the statement was made. It
will be hereafter shown what the real oiieration of the new tariff has thus far been, and
it will then clearly appear that the apprehensions of his Grace as to the failure of the
measure financially liave not been realised.

The Minister of Finance would not have considered it necessary to give any refutation

400. »3 **•

* \]

PAPKRS UKLATINC, TO

(>(■ ilio M< ilif-r ("oTintry wan nroteotive ami cli^rriminativp until 1»46, :inj
i «ns iniulc n?i tar ns |)rnrtir,"»ble in harmony. Differential (lutic!< in favour

tft thp (>ta'em«»nt» of the ntpmoriai IVom Shcfticld. had it not Uoon virtnaiiv adopted hy hi*
(•rare the Duke of Nowrastie. He wmild have prpfcrrcd at onre ontrnnj; ii[(on an ox-
pUnation uf the financial i)ouitiiin. n-iiiiiromont.', and jKilicy "f Caiiaila, which he iinw
reHpectfiiily r<ul)inif'«, and whirh will. In- ln'lipvc^, almiidantly prove that, uncler the most
serioiiH diflirullic-. tlii' ;)olicy of Canada, ho far from Ix'inj; opposed in principle to that of
the Mother (Vmiitrv, ha.« Keen in accord with it, ai> far m differing circumstances would
pMTtjit.

A I t.i'r'iii' lit i.' Iicnwiih apppnde<I, shewing the total imfiortg, duty, and free '^uiuU
imriiirtp<l iiit" (':iMadn niiice the union.

riic ]K)llii
tha; of < ':iiiii

of tilt' <li ret ir.idc with Orcat Urifain cxii<ted till 1848, when the? were repealed. And
in Ih.54. the |>rinciplei« of free trade were xtill more fully adojited hv Canada in the legis.
lation connected with the Uecijirooily Treaty. The rejieal of the Navigation Laws took
place in 1849. The policy of Canada han thus at three perimls, of 1M41 to 1848. 1849 to
18.<4, and 1855 to this date, followed that of Great Britain. Our -markets have been
thrown open on equal term.-< to all the world. Our inland waters are navigated by foreign
vefeels on the same terms as by Canadian; the necensarieH of life entering into the ordi-
nary consumption of the people have all been made free. Our vast limber and ship-build-
ing interests have been thus developed and our fisheries encouraged, and, as n general
principle, all raw materials have also been admitted free. The only exception in the
latter case being precisely that which most conclusively shows that the fiscal jM)licv of
Canada has been l.ascd upon revenue as the i)rimary object ; as for the manufacture of the
description of goods which has provoked the criticism of the Slietficid Chamber of Commerce,
iron and steel are the raw material, and on these very articles the duty has been steadily
raised t<i 10 per cent., which is quite in proportion to the increased duty imposed upon the
manufactured article.

The analysis of the statement herewith gives some curious and instructive residts. For
the eight years from 1841 to 1848, during which the |)roteetive policy existed, the total
imports of Canada were 27,54;j,.31'J /. s. 6 r/ , Halifax i-urrency, the total duty collected
2,808,.')(t7 /. 11.?. U)fl., and the total free goods 019,886/. l.«."8f/. ; the averages being
.3,442.91')/., .'?51,063/., and 77,486 /, ; the duty being thus about lOJ percent.; and the
free goods only 2\ per cent, of the whole imports.

For the next period of six years to the passing of the neci]>rocity Acts, and general
adoption of more liber.al views, 1849 to 18.-54, the total inqwrts, duty, and free goods were
respectively ,35,806,420 I. 6 s. 1 (I., 4,790,-372 /. 11 .«. 11 d., 2,448,381'/. 13 s. 2 </., averaging
5,967.736/!, 798,395/., and 408,063/. per annum, the duty being thus about 13J per
cent., and the free goods nearly 7 percent, of the total inqiorts.

For the last period of four years from 1855 to 1858, which is that which has more
partiiidarly excited the apprehensions of his Grace, and the criticism of the Shefifield
Chamlicr of Comnvrcc, tho following results are shown : imjmrts, 37,044.920 /. 10, ». 2 rf. ;
dutv, ;!.8:),),276 /. .?. ,) f/. ; free gomls, 10,789,705/.; the annual averages having been
9.261.2:!0/., !».)8,819/., and 2,697,426/.; the duty being 101 per cent., and the free
guodr' 29 i)er cent, of the imports.

The I'oliowing comparative result appears:—
1841 to 1848, average total imjwrta , . -
1849 to 1854, „ „ - ...

18.55 to 1858, „ „ '"'-

1841 to 1848, duty lOJ per cent. ; free goods
1849 to 1854, „ 13i
183.» to 1858, „ 104

These comparative statements abundantly prove that the j.olicy of Canada
Cu-'itoins duties has neither been repressive of trade nor onerous upon the people,
however, nece.-sary to draw attention to the fact that from causes ^vhich ■Nviil be hereafter
stated, the results for 1858 would somewhat differ from tho above average, the late
Minister of Finance, Mr. Cay ley, having found it necessary to make a considerable ad-
dition to the Customs duties by an Act which took effect on the 7th August 1858, which
uave the following residts for that particular year, and which must be borne in mind when
It is neces-ary to explain the nature of the Customs Act of March 1859.

1858, imports to 7tli August - - - - - - £. 3,970,703

I)uty, 4.39,643/. 14 .«. 61/. - - . Free g<iod8, 1,161,728 /. 5 «.

Duty, 1 1 per cent. ----- Free goods, 29 yicr cent.

„ From 7th August to 31st December, under tariff of

1858, imports £..3,298,928 15 «.

Duly, 405,703 /. 13 s. 1 </. - - - Free goods, 931,675 i 5.?.

Duty, 12J per cent. ... - - Free goods, 28} per cent.

'rhe fiscal policy of Canada has invariably been governed by consideration of the amount
of rcvenue^ rc(juired. It Jaaio doubt true that a large and influeuUal jMirty exists, who
Stf vocalc 'a" jfttotiecti vc policy, but this policy has not been adopted by either the Govern-
"i^nt pr Jycg,i8latuic, although iJic neceasity of iucreoaed taxation for the i)urj)0Be8 of
revenue has to a certain extent compelled action in partial unison witli their views, and-
'"'"""'" ha»

2^ per CL'ut.
7 „
29

£.3,442,915
5,967,7.36
9,261,230

m its
It is.

( rSTOMS Dl TIES (CANADA)

tl*

»*

lia," cauM'iI more iittciitiim to 1)0 jrivcii to flic projur adji'.^tmiiit ol' ihc ilutii'«. -.1 a< neither
uminiT tn stimiiUtp nor ilcprpgH flu; few liiiuulu ,* of inunuliaiure wliicli ixUt iu Caumla.
TTie |H>licy of Ih" iirtKC'Mt Govcrniutui in rL-uilju»tiun l''*-' '"rirt lias been, iu iho first
place, tn obtain Hufficient^ revenue fur tlio publU- wwne ; m«l, bccoiuU), lo Jo ao -i nucli a
manner ns would lno^t falrlj- <Ht<triliuto the aildilional liurllii'iir \:yi-n \\.,' ililliTcnl claiweii
of flic winniunitj-, nnd if will unili>ulit<ill_v be u Mibjcil ofgnitifiiutiDn U> tln> fidvcniiiicnt
ifJKeyfind that flic Jutie?' abwilutfly ro(iuirc(l to meet their cnpaj^^ments <ihoul<t inei-
dvntuily bcne6t and encourage the production in tlic country of many of tb('i«o urti'-les
which we now import. The Governnicnf have no expectation that the mfnlcrate duties
im|M)iH.'il by (>anada can |in>«Iuce any considcrabie duvclopnicnf of innnufacturiup inlmtrv ;
the utmost that in likelv to nrisic is the estnblifhmcnt of works rcqiiirinff coinparalivi'ly
unskilled lal>our, or of tlioiic competing with American ntakcrv fur the production ot';;<x«lf,.«
which can be cquallv well maile in Canada, and which a duty of 10 per cent, will nolW^
douLt stimulate. 'Ihat these results should flow from tlic necexsify of increased taxation lit"
is no subject of regret to the Canadian Government, nor can it be allege<I as any de- \\ \
fMrturc on their part from the recognised soumi principles of trade, as it will Bhottly be 7
shown that the Government were e^unpellcd to obtain increased rovcnne, and it is l>elicved
tlut no other counic could be relied on for this result than that mloptcil.

'I he increase of taxation ih never a jx^mlar ctcp, and bis Grace niicrbt have well believed
that no (Tovcrnment would adojit if, without the strongest conviction that pon<l faith de-
mandeil it. Ij is unpleasant enough to be exixiscd to attack in Cauiuli foi- an unavoidable
increase of duties; but it is certainly ungenerous to be reproached by I'li^laiid, waen the
obligi\f*ous which have caused the bulk of the indebtedness of Canada have been either
incurred in compliance with the former policy of Great Britain, or more recently a.^sumed,
to protect from loss those parties in England who had invested their lueaiui in our
railways and municipal bond^.

The indirect public debt of Cnnada in 18.)8 was 7.030,643/. IG s. 7 rf., bearing (» per
cent, interest, which, prior to 1857, had not been a charge uinin ♦'"> ""•■ •nue. In tiiat
year, owing to the commercial crisis, it became necessary to make larjre payments upon
It; and in 1858, almost the whole amount bad to be met from the general revenue. In
addition to the commercial depression, the harvest of 1857 was below an average, and that
of 1858 was nearly a total failure. It bc_came manifest that the indirect debt must for
many years be a charge iijion the country ; and Parliament was required to make pro-
vision for it. 'Ilic interest on the public debt, direct and indirect, thus required in 1858
774,012 /. 13 *. 4 iL, and without flagrant breach of faith, it could neither be postpmed nor
repudiated. The pressure liad come suddenly and heavilv upon the people of Canada ;
but neither the Government nor the Legislature hesitated in making such provision as in
their jndgnionf would meet the exigencies. The Customs Act of 1858 was therefore
passed, and subsequently, with the same objects in view and others which will be here-
after explained, the Customs Act of 1859 was also pusscd.

His Grace the Diik" of Newcastle has not, it is feared, given his consideration to the
official documents show ig the income and es]icnditare of Canada for 1858, or he would
have seen the absolute necessity under which the Govornment was acting, in proposing
tlieir financial measures for last year. His attention is- now res|)ectfully requested to the
ofticiai Itcport of the Finance Minister att.ichcd to the imblie accounts of 1858, wherein
be will perceive the exact jxisition in wbi<'h the affi.irs of the j)rovince stood, and that a
defieiency of no less than 2,500,000 dollars had occurred in that year.

After subjecting the engagements of the jtrovince to the strictest possible scrutiny, tlic
Governiiieut were of o])inioii that it was jtossible to reduce the annual outlay on many iteiiiy
of expenditure, and the accompanying estimate submitted to I'urliamcnt will sati^sfy his
Grace that the best efforts of the Government have been directed towards cconoiuy, the
ordinary exjienditurc in 1858 having been 8,U43,013 dollars, and the estimate for corres-
|M.Miding service iu 1859 being 7,497,000 dollars. But- after making every possible reduc-
tion, it was manifest that unless an increase of revenue could be obtaiueil, a serious
deliciency must occur in IS59. The opinion of the Government wius, that having scer-
tiiiiicil tlie probable amount required for tiic service of tliu year, it was their duty to
recominend such measures to Parliament as .vould supply the deficiency ; aud that
although during the crisis it might have been justifiable to borrow money fur tliifl purpose,
it was no longer so. A revival of trade was confidently looked to, but owing to the bad
harvest of 1858, it could not be rajiid ; and it was deemed pro]ier to recommend certain
additions to the Customs duties, to provide lor a |ioBsiblc diminution in our ordinaiy
importation.

The Customs Act introduced by tlie present Minisier of Finance is evidently believed
by Ills Grace, arid by others in England who draw their information apjiareutly from the
jioKtical prcBB oppoBcd to the Government, to have imposed verj' large additional taxation
oa imported goods, whereas, in reality, such was neither the intention nor the fact The
new tariff %vas designed certainly with the intention «)f obtaining an increased revenue of
about 500,000 dollars on the estitnated importations of 1859, but the real increase waa
looked for fVom a rc.lvul of trade ; the main object of the new tariff' v/as to readjust the
duties so as to make them press more equally upon the community by extending the nd
valorem principle 10 all importation, and thereby also encouraging and developing the
direct trade between Canada and all foreign countries by sci, and so far benefiting the
'shipping interests of Great Britain, an object which is partly attained through the duties
being taken upon the value in the market Where last bought The levy of specific duties

^'00. ^ i^'M*i'v-»*^^- fc«-^«^.«_-, ——-.-^ Bi.^. ._ » tor

^ ^^"***v-»— ^.-,^*->aiS^.i»fliaj,^^.ggj^^^

h!:^K

■ii

1«

PAIM.U.^ RLLATING TO

forMVcrnI voiir^ Imd connilclclv ilirci Ifi tlio trade of (.una)!!! in tcon, fusord, _^c. to tlic
Ammrnn intuTcl-. nnl liil dc 'irix of ii \vr\ \ain:il)k' irmif uliirli tiiniicnv i'x!hto<l from
llin Rl. Lawreui:i! lu ilu' Lowir I'nn lures ami Wcpt ludici*. It wih l)i'lievp<l tint the
i'uu>|>lutioii <il' iMir cjiiial ami railfoail i<ji'Iciiij-, t(ij;i?tlier wiiii tlic im|>r^lvon«pnl^ in the
iinvipition of tiu- I.nwcr St. Lawrence, jii.-tified tlie lirlii-f tliat lliu fupiilv I'f Canadian
wniitfl mipht bf* onep innre nr.i<le liv t^cu, iiml tlic licniifit." of fliijj coiinnrrt'C <ihtninc<l for
our own nirri'liant-' nml fni-wanle'-'. I'lidir llii^ convietion it wan dctennined )>y the
(tovcrnnictit to u|)|(ly llie |uiiicij'lr (if «(/ rn/or/'ni duties (whieli nlreiidy cxtcndcrl to all
uianuriictiirc'd -;..o*l») to tlii' iciiiiiiiiiiip' artielc.^ in our tariff".

A I'tci) III' till.-' iiatiiro, liavlii;.' I'm it^ ofl'oel tn ;;i\c a slijrlit advantage to tlic direct trade,
viA the St. Lawrence, with (irejit lliitain and the re!>t of the world, and wluu-c tendency
iWM siiinewlia; tn iiiterfiTc with the exlutini; eloce coinniercial relations between
Weiiterii Canada and the rnlleil Stat<!><, excited the bitter hostility of all the intcre«tM
prcjiidieially ali'eeted, and imtl! in rarliaineiit and in the |irc!<s the must alisiird and lalsc
statements were iiiaile un the siilijcet. The o|i|io.iition in Parliament, strnni;ely enough,
adofitcd nd their stninj^'est <rriiuiid of attack upon the tariff', that it receded from the jiru-
tccli^e |iriiici|ile said to lia\e licen adopted hy Mr. Caylcy in the previous year; ami for
] the purpose of defeating; the (iovernment, those in opfHtsitiou in the Hoiibe who admitted
J the justice and pitijiriely of the prnpnsed changes, actually voted with the iiure protec-
f tionisis. \iitwithstaiidin<; all the eoinliined efforts of their opponent!), the (iovernment
; adhered to and carried their measure; and it may now be interesting to (dwerve, from the
' short period dnriii;^ which the tariff' has been in force, how far it has produced the results
contended for by the (lovcrmnent or their op|Hinents.

The Minister of Finance stated to the IIou.se that he did not intend materially to alter the
rate of dnty pai<l on the bulk of the imitorts, but only to change the principle uptm which
they should be levied. The articles on which he proposed to <ibtain additional revenue
were, cotton goods to be raised from 1j per cent, to 20 per cent., and iron, steel, &c., from
5 per cent, to 10 per cent. This was the whole extent of increased taxation, and it was
expected to yield o(K),OUU dollars additional. The changes in teas, sugars, &c., were all
uicrely nominal, and, as already explained, were proposed as being u]iou u more correct
principle. The imports for the first three quarters of 1859, say to 30th Sept eraber, have
been, imports, 6,574,128 /. 5 »., dut;,-, 888,946 /. 15 *. 4 J., free goods, 1,915,603 /., the duty
being 13§ on the imports, and the free goods being 29 i>cr cent, of the whole.

The attention of his Grace is respectfidly requested to this statement ae showing, first,
that the increased rate of duty a^^ compared with the tariff of 1858, as given in a i)revious
part of this memorandum, has only been from 12J to 13^ per cent., which can scarcely be
deemed excessive ; while so far from the upprcheusions of his Grace being verified through
a diminution of imports and consequent loss of revenue, in both eases the estimates of tlie
Government are borne out as nearly ns could be expected, considering the state of the
country, and its gradual recovery from depression. Until the close of the year the com-
parison cannot fairly be made, inasmuch as we arc only now beginning to benefit from our
late good harvest ; but as an indication of the result, it may be stated that, in the case of
cotton goods, which were raised from 15 to 20 jier cent., the importation for the first nine
months of 1857, 1858, and 1859, were as follows: —

1857
18.58
1859

Dollars.
4,379,672
2,862,734
4,323,750

The Minister of Finance can also jioint with satisfaction to the fact that the proportion
which free goods bears to the whole importation is exactly that of 1858, and of the average
for the four i)revious years, viz., 29 jier cent, of the imports. This may be assumed to in-
dicate that the new tariff' has not produced any disturbance of trade, nor checked importa-
tions, for it is remarkable that where so large an increase has taken place in the imiwrts
as from 5,500,542 /. in the first nine months of 1858, to 6,574,128 /, 5 *. in the corresponding
period of 1859, the proportion of free goods to the whole remains the same.

The Minister of Finance relies upon these statements to convince his Grace that he has
scarcely done justice to the Government of Canada in his Despatch of 13th August, and that,
in many imiwrtant respects, the Chamber of Commerce lias been entirely misinformed.
He will now proceed to indicate the causes which have induced the Government and
Legislature of Canada to seek in an increase of their Customs duties the means of meeting
the large and unexpected demands upon them. But before finally leaving the subject of
the burdens upon the people of Canada, it is [iroper to remark tliat the rate of duty levied
under the jirescnt tariff of 1859, covering the cost of all our canal and railway expenditure,
is only 13J per cent., while in the period from 1841 to 1848, when the province had neither
canals nor railways, it was lOJ per cent., and from 1849 to 1 854, when it had only canals, but
not railways, it was 13^ per cent. If it were necessary to offer an argument on the subject,
it might be very easily shown that any increase of duty which has been placed on English
goods is quite indemnified by the decreased cost at which our canals, railways, and steani-
, ships enable them now to be delivered throughout the province, and that, if the question
' were one of competition with Canadian manufacturers, the English exporter is quite as well
off as bcfbrc, while, as comi)ared with the American, his position is greatly improved.

In proceeding to offer some observations upon the principle upon which taxation is
imposed in Canada, the Minister of Finance may remarx that the views of the Chamber
of Commerce on the question cf free trade, seem to be based upon the assumption that it

s;v

CUST()MS DUTIIS (CANADA).

i« b«ith thf jiriin'iplo ami jiriu-tii-c c«l' (ircal Itritaiii, iiii<l -ImuUi t.e a<1<>|i(i'(l tiv ('iinnilu
iireoportivo of it» finuneinl ncc«wi«itip>«.

n cortRiiily npjM'Brs r>iiigiilur lliiit t'linudu hIioiiUI 1m' i'c|iroiM'lir<l with ii ilcpiiitiirc Inmi
DOiind ]iriiici|il(>i> offinaiu'u wliiii, in Dnlcr t<> |>.iy her just tlclitr, !<hc iiiiiKii-c^ ni(;)ii>r ilutl.;i«
on flic nrti<-!(':» olie licrnolf <'i>ni»iiiii(>n niid pnyn for, when in Knjiliintl itself tlie xtunc uicann
arc rc!>nrtr<l tu, iiml nn loss than 2H,I)<)(>,()(H) /. gtcrlini; (ititaiui-<l from ('ii>t<<niH <|niiox, imil
17,tX)0,OOOA ft-om Exi'isc. If In Oioat Brituin, wI.ito i"!!!!! an (iiorniiiii^ unionnt of
reiili7.o<l wealth exi.-'ti*, it hn» onlv ua >el heen fipiind jHiririMc to niii'e onc-Hikth nf the
rcvonnc hy ilircit tnxiition, it nccil icfjuiro no cxiu-i' if Canuilu hai" |i> ruisf h«r
revenue uhnuitt whully hy indirect lacnnM.

Freo Iiiwlc ill ihr al)^t^il(■t niii-t lie lakrn ti> mean the free exohimpo of tiie |iri'ilii<'t« of
indii^'try of all couutrieH, nr of the inhnliitant.s of tlic oiuiie oountry, and it i.-« perfectly inMiia>
terial whether that indniitry he applied to the prtMluetion of a [Hjund of diigar or tobaot o, or of
a tcnpenny nail or n hn.-'licl of malt : it iit eipially an iuteri'ereneo with the i)riiiciplo to
levy Ciiiitouks duties or Kxci«o on any. liut it ik, and probably will continue to be
impoMihle to ubandou C'uittoniH dutieit or Kxci:ic lu a mcuui uf revenue ; they ntt'ord the
meano of levying large «unid by the taxation of articled of coninuiptiun, distributing the
burden in aluioat inapprei^iablu ((uantitiex, and in one respect have thii< ndvaiitage, that if
fairly iin]K)eiod, each individual in the coininunitv <'ontrihutert in a toleraMy fair pro|)ortion
to hi8 mcinH. In (treat liritain it may be poxsihlc to ndjii»t the taxation, co as to make
realized property contribute more than it now «loc« to the wanti< of the State, but ii: a
country like Canada, no i"Ut'h leisourcc existi), and it wouW be jn-Hectly hopelegu to attempt
to raise the required revenue by direct taxation ; wp neither po«»c«g the required
machinery to do it, nor are the iicojilc eatinficd that it \^ the more correct principle.
Customs cluticH muHt, therefore, for a long time to ronio, continue to bo the principal
source from which our revenue in «lerive<l.

Adinittin}?, therefore, the necessity of raising a certain aiuoiiiit for the want* of the
State, and that such amount can only be obtained through Custoing duties, the (iovem-
ment of Canada, like that of Great liritain, have to conwder how that necessary interference
with the true principle of political economy can be eilecte<l with least disturbanrc to trade,
and judging of the hscal policy of the present Government by this rule, it is contended
that, with some trifling excc)>tion8 which must arise in all human legislation, tiie Customs
duties are imi>oscd in the manner least calculated to disturb the i'rcc exchange of Canadian
labour with that of other countries. A large closs of articles, termed raw materials, are
• admitted free, amounting to 2'J per cent, of the total im|M)rts. Another large class, con-
' sisting of iron, steel, metals, and articles entering into the construction of railway*., houses,
} ships, and agricultural implements, &i'. are admitted at 10 jicr cent, duty, leathei and
partiiilly manufactured goods pay 15 per cent., manufactured gowls, made from raw
materials or articles paying 10 per cent, duly arc admitted at 20 per cent., manufactiiretl
goo<l8 made from articles paying 15 per cent, duty are charged 25 per cent., but this is
exceptional, and very limited, while luxuries, comprising wines, tobacco, cisars, and
spices, &c., are charged at rates varying from 30 to 40 per cent., but the bulk arc o*"
30 per cent. ; spirits are charged 100 per cent., tea, sugar, and molasses pay 15 per cent,
and 30 per cent.

!The distribution of duties on the whole imiiorts therefore stands thus :
_

Duties.

porta.

Free gootls . - - -

per cent.

Goods paying 10 per cent. -

ti\

I, 2o „

,, Over 25 per

cent.

includ

ing

spirits

,»

Tea, sugar, and molasses

j»

100

The foregoing statement will show that if the attempt were made to reduce the duty on
manufactured goods paying 20 jicr cent., it would necessitate an advance on (he other
items, unless such reduction produced a corresjionding increase in consumption to make
good the deficiency. Assuming, then, that the duty were reduced from 20 to 10 per
cent., it will nut be contended that this reduction, though aft'ecting the I'cvcnue one-half
on these articles, would induce double the consumption ; on the controrv, it is believed
that it would not .iff'ect the consumption at all, as is borne out by the statistics of prerioua
years, and of the present year. It would then become necessary to meet the deficiency by
increased duties elsewhere ; and in selecting tlic articles it is, in the first place, impossible
to touch the bulk of the free goods, most of which are free under the Reciprocity Treaty
and the remainder entitled to continue free, according to sound principles of trade.

400. C PaBBing

.^^

• R

rAl'ii,R>> KLI.AllNl. TO

I'aMiDf; (•> llic iirxl ctiuui i>( 10 iht < riit. {^'immIii, it will iu\, burcly, Lo coiitt-iidt'il that |J)«
K-alf III <1lll> rliolllil ))•' ralMij mi ijll:i-l-r ,i» in.itrl I.Jn Inn r.it> ill rxi'i-srt uC tliiil ilil|Mil'<i(l
nn iiiHiiiifiirliireK. 'I'hi-ro Ih, (Ik'Ii, iiiitliiii<; liTt l>iil llic ll^ti^ll'^ |iayiii|r oMr 2.i jtcT ci^tiL ;
•nii il iiiiiHt lie oLiM'r\4'i| lliiil tli('_v tiiriii oiily I' iir |>cr cent, ol' tht' iiii|Hirtx. anil pay !>} iM;r
cent. «l ihu <hiti<'» ; ii, tlifrtlori'. it »<ti' uercKnuiv to maki; ^^immI tiiu dttiririiry ariitiiig
friHu u rcilucliiiii u( iUi\y <iii iriaiiiiriu liirc!^, llir |iri>|Niitiuii of duly to tin: mIioU; llity
would liiivc to |»uy WDulil Im; iiittiTiuxd I'loiii Djj |k r it iit. t'l -10 \i-v cent., unil tliu uvcrafrc
rate of duly on tlaxc articlt'X, iiihtiud ol' 3:i! |ivr rnit. or llicitraliuut, woidd \ii: iniT<»iii;d tu
nearly IIJO [ht i-x'iit.

1 1 iH M'uri'i'ly niTi'Aiinry to |Mi!n( out lliut Kiii-h an incruuso would bo utt^iil) ini:oui|iauLlc
with ri'v«!nuc,'iind tin? rt-Kult would be a liiiamial t'ailuro.

On (oa, Hiigiir, &c., il liuii bcuii iuunl inijKir-ililc to niuintain iiigliur duties thaii tiiunu
now ini|N)itc-d, iw tlicy urc I'roo in tin; Liiitod laiuti'^, luid uufavuuruMe coin|)uriM>nH arc
even now instituted by our U|;rii'ultural populution.

Apart fruin huvli nuxlifioatlon!* in d<>t:iil, m ex|ii.'riiTi('C niuy f4U(;<r(!t<t, tlio (iovcrnint.nt of
Cwiadn bclievo that, in order t4i rai-<i: llu' n^vuniiu iin|ieruti\idy required to |ir<'surve tlie
gooii faith of the province, uml to luaintain il.s iimtilulions, the Hualu of ('uatonin duties u
not cxccMivc, and Uiut it has been adju.strd in ginerul ueeonluuec witli hound |irinr.i|>led
ol'politiejii ooonomv. Kcductioiiii in the healu of duties cnii only take pluee iw tlio inneaa-
ing uo|iulation and wvtUth uf Canudit nwvll the iinjiortations, and it will be a subjocl oi'
tlio liight!«t gratifiaation to the iirescnt (jovcroinont, when xuch reduetiuu is fMHwiitlA.

(signed) A. T. Gait,
Quoboc, 25 October 185!). Minister of Finance.

y.n. — The values are are all given in Halifax currency, except where tho prewiot
dccima] currency is used.

APPENDIX.

Rtatrhimt of the Value uf UuODS impurtvd into Canada, with the Amount of Duty
Collected thereon, from the Year 1841 to 30th September 1859 inclunive: aliio, the
Value of free GoobS ini|H>rted during same time.

Yea 11.

InroiiTs.

£. 1.
2,094,160 14
2,688,(132 13
2,421,300 16
1,331,050 17
4,101,326 10
4,61.j,8-21 1

3,009,60-2 14
3,101,328 5

2
4
4

11
10

DVTT.

FxBK Omtns.

1841

IS43

I84«

1844

1846

1847

1848

£. (. (/.

2W5,834 7 10
2;8,i;30 7 4
241,672 1> -
441,331 15 2
440,000 1 7
422,215 10 8

414,033 5
334,020 M '.)

fi. : d.

140,208 17 8
N5,944 a 4
13,626 18 -
83,066 10 4
51),0(ll 17 4
01,300 10 K

1 EstiniaUd
(. 77,139 5 4
02,078 - -

£.

27,543,310 -

2,808,507 11 10

619,H80 1 8

1849

1S60

1861

1862

1853

1864

3,002,891 18
4,245,517 3
5,3.J8,0n7 12
5,071,023 3
7,09"',050 1
10,132,!J3I 6

7
11
1

444,547 5 1
015,694 13 8
737,430 - 2
73I),2C3 12
I 12S,070 16 7
1,224,761 4 8

269,300 7 9
304,133 7 2
425,07 1 5 e
811,0li2 17 «
443,077 18 -
703,436 17 -

.f.

35,806,420 (1

4,700,372 11 11

2,448,381 13 2

1866

1867

1868

0,021,542 7

10,<lll6,096 10

9,857,649 11

7,209,631 16

3
3

881,445 13

1,127,220 10 5

081,'Jfi2 15 11

845,847 7 7

2,500,383 It H
2,1)07,041 14
3,101,970 1 7
3,093,403 10 -

£•

87,044,020 10

' 1

3,835,376 6 6 ,

10,760,70« - -

1869 to SOth Septmnber • £.

0,674,128 5

i
■|

888,946 IS 4

1,016,608 - -

Inspector General's Office,

Customs Department, Quebec,

M October 1889.

CUSTOMS miTIRS rCANADA).

•#»

S^W)

StaTEMKN I iif ttu! Value "if fiooim iTiiporli-.l into Ciiniiiln. iiml llic Hll IKr» idlt. . led
then-Min, tor Nine Monlhi to ;ii»th Sjiti'iiilifi lHii», ,-li..wiiit< llic irlmiw |i,r ('«iit .gc
whicli the Vuliu'H anil tlic Duties, at the flifleienl Kitten of l)ut>-, bear to the whole
Importations, anil the whole Amount of DutieH.

Rate of ni'TY.

VALUES.

UUTl

Amount.

Pcr-oenti|e.

Amount,
DoU. rtt.

t*tr-ctnta(t.

DoU.

8 ftnd 1 per cent. - . . .

I,fl«0,31l

100,030

10 per cent.

i,r28,73a

^:-

300,303

»iS

80 - ditto

10,784,ai>!

3,137,306

•05

«6 - ditto

31MI7

100

64,040

1 **

Tea, dUf^ar, and tnulasnea | Specitic, and j
. over 26 per
Other arlicio* . - 1 cent. - )

8,l4->,074
l,087,.173

4 --

670,031
346,707

Free goods

7,002,413

«».;:-

Tot.* I. - - DoU.

Se,306,Si3

100

3,6ue,H03

100

Inipeelor General'ii Office,

Castomi Department, Quebec,

S3 October 1860.

-^<»*T,I.

4
H

' ' • " Keport of the Inspector (iencral of C'«na(/a.

To His Excellency the Right Honourable Sir EUmunJ Walker }' cad, Baronet, one of
the Moat Honourable Privy Council, Governor (ieneral of British North Amerioa,
&c., &c.

May it please your Excellency,

I HAVE now the honour to submit the public accouutri of the province of Canada during
the year 1858.

The Report of the Board of Audit, certilying the aeeunicy of the accounts, is also here-
with submitted.

By this Report it will be observed that ccveral iinpurtnnt alterations have been made in
the lorm in which the accounts have hitherto been propiired. Under the present syatem
every item of expenditure and income is set forth in Statement No. 3, and the particulars
of expenditure in Statemefit No. 12. It if therefore no longer nece!<8ary to refer to the
eubsiuiary statements to aeijuire a knowledge of the transactions of the year. They will
occupy their proper position of showing the exact .«tatc of each special account.
By the Statement No. 3, it will be seen that —

Doll. cfi.
The gross expenditure has been ... 11,403,587 44
And the "■ifi>s income 10,271,291 81

The deficit of

1,132,295 63

having been mot by the altered state of the cash balances at Ist January liii>6 aud Ut
January 18.59, vi/.

I Do/i. cti.
Balance of cash and seciuilics on hand, less balances due

bankers, at Ist January 1858 - - - - - 847,495 53
Balances due bankers, less cash and securities on hand at .

Ist January 1859 , 284,800 10

$. \ 1,132,295 63

400.

This

if •>•*

Si'^!

r*si

■M

PAPKRS RELATING TO

Thii) •tatemcnt ini-ludcH, liuwvvcr, acvcral largo item* both ot ex|>«n(lituro and income,
whirii do not jiroporly helonj? to the onlinary norvice nf the year, and it i» therefore necet-
■ary to fumiih an analyii* thereof, viz. : —

■:

Doll.

cU. DoU. tit. \

Doh. ft$.

The GroM Expenditiin- hai been •

•

11,408,687 44

From which ronit b* deducted, Paymcnta out

of the Tnut Fundi in the handi of the

ProTinre, »it. :—

Roadf and bridaef

08,403

8ei)(norial Fund ....

2eH,3AI

Municipalitie* Fund . . - .

844,400

Debenture* iiurcba*ed for trust fund* •
Indian Fund .....

370,940

113,030

Orammar School Fund

ls,4ao

Educational Fund, Lower Canada

90,740

Sobaidiary tinea

3«S,A78

Collection of truit fundi

14,810

MiKellaneouN

8,904

1,410,037 10

1. ^

Payments in Redemption of Public Debt :

■

Delicntnrcs redeemed

304,763

• 1

Sinking Fund for Imperial Loan •

434,880

039,034 14

Payments for public workf, authorised to be

covered by issue of debentures • • •

638,310 80

Advance* for the purchase of new coinage

840,000

Advuucet lo railways and others • - •

103,840

004,013 01

8,093,008 14

Balincf, comprehending the Paymenti
of every Provincial Engagement,
either direct or indirect - - -J

The Gross Income has been . . - -

8,810,684 30

. ,

10,371,391 81

From which must be deducted, Receipts on

■t .':. .-'V

account of Trust Funds in charge of the

. ,„(

Province, vii. : —

Upper Canada Building Fund ...

70,882

Seignorial tenure ...

040

Municipalities Fund - - .

123,018

Unconimuted stipends -

10,008

In<provemcnt Fund, Upper Canada
Common School Land Fund

20,010

47,683

Grammar School Fund

31,167

Educational Fund, Lower Canada

34,800

Indian Fund ....

161,708

Tavern licenses, Lower Canada -

2,970

600

Montreol District Council -

806

Subsidiary lines

631,083

1,041,808 08

Increase of Public Debt :

Debentures issued .....

1,950,180

Repayment of loan by Great Western Rail-

road - -

760,833

Smking Fund ditto .....

8,400

2,724,410 00

Repayment of advances made in 1807 ond

1868

730,000 00

4,400,818 03

Balance, comprehending all Sonrcesj

of Revenue applicable to meet the di- 1

rect and indirect Engagements of the 1
Province J

6,774,078 70

The

•'fAt

^\^

income,
r« necet-

>U. ct$.
I,fte7 44

381 81

18 03

78 79

The

CUSTOMS DUrilH (CANADA).

The (6n'|/oiiii' \ii.ilya'<< u'lvrt [hr Inll.iwinif
Itciuhfur til.' Onliiiiiiy H»rvlre ;in'l Irii'oiiie
«.ri««8:—

Etfifnililurr

Ki'vi'oue

DoU. 1 1$.

0«flcil

(Out from tliio iimoiiiit innv In.' dpdiirted
the repaymrnt ol'ruilrnul ncivatippit, inim-
inuch ail the ciiiir l'orni>'(l |Mrl ol tlic «!)<•
ficienojr ori6S7i uiul wcri' then proviiled
for).

i>l>'i. cit.

8,aio,«84 no

5,774,»73 70

Jfolt, €U.

780,000
188,340

00
88

1,060,188 86

788,388 88

AuvknroR repaid -
Lent, made in l8o8

Artual C'aiili Deficit • . . .

Whicli ha* liwn provideil fur U4 fi>llow«:—

Iiierraac of Piililic Uvlit by IK'licnturet istued
IncrMM! Iiy n-paymvnt in cauli of part of loan
to (ireal \Vi><tern Itailroad, the debi'iiturei
for whicli wnrc intutd in 1A54, and already
form part of I'libiii; Debt, hviii^ now tmnii-
ferred from tbo indirect debt to Uie direct
debt ul' llie Province, and nUo 8,400 dollars
paid into Sinking; Fnnd • • . .

LeM D)!creai>o, ni shown !n anaiysu
Also, for pprniaiipnt public works for which
debentures arc uiithuriscd, and furminf; piirt
of issue ...--..

Deduct payments on account of Trust Fund •
Lets receipt*

New coinage, wliicli may be regarded as really
cash .......

Differences in cash baluiicii at Ut January
1868 and 1st January 1 8 SO, aa before shown

The Total Increaiie of the Provincial Liabilities^
in ISj8 i<i tiius shuwn to Imve been • •j *

680,684 14
638,819 80

3,0S&,6I0 61

686,664 67

3,734,410 00

l,e«8,063 84

1,416,087 10
1,041,808 03

1,173,064 08

374,13.1 07
340,066 68

1,161,466 0«

714,805 76

830,060 31
1,I33,'20% 68

Doi». I,0U8,0oS 84

In explanation of thl.s large deficit, it is my duty to advert to the fact that, owine to the
very serious and general deprcHsion of trade consequent upon the recent commercial crisis,
but in Canada more especially attributable to the bad harvesta of 1857 and 1858, the
imports of the country have enormously decreased. They were, in

Doll. cU.

1856 43,584,387 23

1857 39,430,598 34

1858 29,078,527 00

These returns sufHcieutly show that the country generally has been exercising a wise
economy in every article of*^ consumption, and this result must ultimately be fraught with
great advantage. The immediate effect has, however, been to produce a serious falling
oflf in the revenue from Customs, which was, in

Doh. rtl.

1856 4,508,882 08

1857 3,925,051 19

1858 3,368,157 76

The same causes have operated to reduce the revenue from all other sources. They are,
as follows : iu- 1858—

Doh. cts.

Public Works 400,727 17

Territorial 415,372 68

'"" Post Office 295,395 76

Other revenues, of Consolidated Fund - . - - 867,876 77

Receipts from other sources .... - 427,441 07

400. C 3 The

'A"

I'AIMUS ur,L.\TI.\0 TO

TTic c«|i<-ii<ritiiri', inntriul nC Mnj/^ cn\nUU' «if nimilnr rcflufti'in, ': • Immmi l:irj;>»|j
int'rfori-il, Iriiiii tlic fiiiltirr nl' I<k"iI ri>vi'nii<'< liiviii;; tliniwn u|miii tli(< pr >«!ii>H! tin; inn-
|Miraiy nii|i|ilN lA liimU o iiirit i'ii,;i);iMliriil-> I'lr uliirli tlic ^{I'lirnil ii'vri.iii! Mitu not
utrirtlv li.ililr. Till- Im« liri II I'-IM'.l iII\ 111 iiiil'c.l it) llic (vnc iif llit- ( 'iiii«iiiii| ili' I Mil ii''i|ml
I«<Kiii Kniiil. Tlir IchmI iiii|iii''i|iilili>'.'< Kiitf'Tlii^ ilircrtl) fr.'iii (lie |irr-i-iin' ti|K)n th<*
rat<- |ia)'i'ri>. luvp Immmi in nianv rnM'» iiiiiilili* to iiiccl tlio iiil)>ri-«t ii|ioii tin; ilrhi'titiirn*
iiMtUfil on llii-ir ii'vcojiit; unJ llifO<'v<'rnni('iit liavi- Iccn rv>|uiretl to ><iv.tn<'i- tlu! m-fi'o' iry

funH- 1 I |i;(Mi'nt II f'.iiliir.' in tli -ir ]iayinoiit ufiho iiitiTiitt.

in Mir lilt' iiiiiiiuut .»'> u'I\ituc«<l WM
In 1H"(M it li;i< hcfU . . -

/>«/». r/j.

4 i.

TIiCm' inlMiiiicii linTc ln'i'n ina'li! un.ii. ciminiKtimc'-t oC pnoiiliur prc'^iirc, wiilch, wlicn
nmovr'l, \>ill n'li'\i: ill- ^•■iiL'iMJ ri'vi uiio' fniin lliin rh^irjjr, n-t tin; |)ro\ inoc lion iicvor
•MtunictI llit'Hi' (IrliU UN ('ii;;ii};(<nicntit uf iti own, iiml iiiii''t lixik on ii rt'viviil of trnili; to thinr
rri<uni|)tion liy th" inuniciinliticH, who liuvu received tlic lionulit of tin- linii'*, an'' 'U
wbuio iinitt'cl iifM'iirity lliu ImhiiIx liiivc lucn ii<«Mvil.

A wry larjri', iiml, ii iniiy Ik- t'omiti, a moro pcriiinnont clmriir ti|i(in tlic r<>«mrcfi> ut' the
prf)Vince. liaK, however, liiM'n rr<'nlt'<l tlirou;il» the jfuariintorH i^rantiMJ in 1H.»2, IH,'i:i, and
|8M, to tlie (irand Trunk Uai I road, and the Ontario, Sinirm' and Huron Uailrond. In
the former raxc, I'arliainent Ici* atMunied the |)«yineiit of the interest on their udvanuc for
an indefinite periiMl ; and, in the latter naKC, it may he feared thai for hohic time tiieoniu, the
iirnvince will iiIm) have to provide the intert-nt nn itrt IioimIm i^itiied in aid of the undertaking.
ThoHO liahilitieK have amounted, in IH.')8, to $. I.*itll,7.^6. h'.

Till! outlay n]iim piihlic worko aiithoriHed to he met hy the ifntic of delieiitnrcH has boon
^, 53.1,H1!i. H'). The greater part of this* expenditure hun arifoo from enlargement and im-
provement of the ennaln, li<r|ilhou!'CH,and iieeecwiry nurveyn in connection with the important
quuRtion ol' establiithing the hcdt route for wcflcni tinxlnceto reach the hca-hoard. There
ran be no douht that a large tiorlion of this outlay h nut directly remunerative, and had it
been i)0!i.sil)le wholly to arre!*t it during a tem[H)rary period of financial duiiredtion, it would
have neen dcHinthle to have done ko. liut coiii<iderinf( that theoe worki< form part uf a
ayatem, upon which the province hax already incurred altntwt tliu whole of iUt indcbteducmi,
it would not have been politic, hai! it even been poMHilile, to have stopped thoHO workn. la
the cotic of Hurvcyg, it ih the more valuable, a* enabling Parliament hereafter to deeide
iotelli<{ently upon any future cxi>enditure.

OUUINAIIT ExPKNDITUnE.

TtiK emtablifhment of the Ocean lino of stcamiihipi) lia« added an annual eh;ir<re of
i. 220,000, which may he exnected to bo gradually met by the ocean postar;?, hut must,
lor u tousidernble time, reciuire provision from the ordinary revenue. Tlie iiame remark
applic-' to the lug xcrviec, which cudts auuuully ^. 90,4(li). ; amount in ISIS'wM
|. 2l7,')."i.i. 10.

The transfer of the ordnance hinds to the province, has entail'.-d .i heavy charge for the
maintenance of an active uiilitin organisation, costing in !8.)H. witli .ho enrolled pensioners
now dish.n.lcd, $. 162,351. 54.

The province has received a very large amount of valuable pro)ierty in consideration of
these tervices, but it will require tune to realise it; and incantunc the burden has wholly
fallen on the revenue. This charge may, however, be largely .educed in 1859, and
from the Kile of the ordnance property, it is hoped, the militia force will soim be self-
sustaining. .^

Thci oxpcusus of legislation in 185b, amuuntod to ^. G84,442. 27. But in this ;iuin are
i;'Ciuflvd tlic costs of a general election for the House of Assembly, and also the election
ot 12 nu-nil--;! for the Upper House, together bei.ig jj. 60,01)1. SO.

1'hh item may ther ^foro be regarded as exceptional, and it may also be exjiectcd that, aa
v>ie Sosiiou of 1858 proved of unusual duration, a very considerable reduction will take
^lacc on the average cost of legislation.

The administration of justice co.st, iu 1858 -
And police -------

Penitentiary and reformatory prisons -

Doh.

Dols.

608,359

41,931

61,600

ctt.
24
01
00

711,890 25

On the first item it is expected that the effect of recent legislation will be to produce a
considerable and gradual reduction. The charge for police will also be reduced during
1859; but the estiblishment of the reformatory prisons will cause some increased charge
for the future under this head. - - . ;.'; .

The

irge

i^y

(I'HVOM.s 1»1 rili.S (CANADA)

«J

Ttiu ciliii'-.ttioniil. i' iril.iMc, m'ii i.rfii-, uul ii rii".illiir.i| MK'ieti<-M* ^ri4ii' • l.t-'ir* |N^8
iitilfil n^ liillnwrt !

Kiliiciition, t'Srlii'ivc iif'triiNt fiiii'lit
(Mmrllutilii ....

S''irlllifir III) I (»lM>llK»i(Vll
A);ririilliir^il mhIi'Iiik iumI >-liitii«liu«
Imiiuii nniiuitivii uiiil |h.-iimi>uii

Vol'

t)iil» tit.

i:i.'>,t!tN liH

7ti.:t.'>U 04

'.•'i.viisfl "a

Thu runiiiiniii;; it(':ii.i iifthi' rx|irii<liliiri-, irrri4|H>i;ti>o i>r tlio |illl)lii- •li-ht ami iln iiiiiiih){C'
meut, lli:iy lie iliviili.ci inlu I'.ircu rliuac*.

Oollpction (>rrcvpnuu of all hruiichi-x (I'^roptin'^ |»o<t offlco) inolinliii;; ca.'^iial ropaird of
I'ublif VViirki )i>:liliiit; u mvi'tnic, aii<l ■>uivoy of I'uhlie lianilii, liavi- ••ivt. in INiS, —

I'ul.lir Work-, •
I'tihlic liund* -
FiiU'ri and forroiliiros
CiiHunI
Spci'iul i'limlN

n„h.

./«.

\\ \ \ ><?.i

1(1 ,2 DO

<)0

2:ii..'.7a

•JKlaK!

!)5

U,HH7

«.'>

3;j

(M)

H.IOl

.VJ

lioU.

H (It, 36 1 74

ExpoiiHc^rt tif t'ivil OovernmRiit, inrludin)^ cinif;rnti(>n (Ishcricii, anil ' DM. eit.
m\ charjji'it not H(MT.!ally npplicalile, othurwiHi} have hoon - - • HI3,tt99 11

Muc.li <>r whioli in provided for by .special ohargi-.s for the Hervice :
!i.s uppc»r8 ill t\n'. returiiH of rcveiiuo.

Expeni<c>< of niaint(man<-t> of public workii and buildingH, light-koUMca, I

coast service, roadn and bridges - - - - - - - 436,811 53

"The Post I )ttici' charge of 5f).'.,03« 37

Must be rejjardcd as exceptional ; as it includes a large nmoiinron
account of arrears of former years, and the settlement of clainis by
the railway companies for carriage of the mails. j

The two former clas-ses of outlay, collection of revenue
Civil (lovernraent ..----.

864,364 74
613,995 11

may it is hoped, be gradually reduced, without impairing, hut rather adding to the efficiency
of the service; an<l mea-snrcs are in progress for attaining this end, for some of which the
sanction of i'arliamcut will require to be obtained.

The oidy remainin;r item of expenditure, is that for interest on the public debt, and ita
management, which wa» in 1858 —

DoU. et$.

3,030,899 25

67,551 42

Interest ----..--
MuuHuement, including exchange . - .

Of thin Rih 'tn^ (lie direct debt of the province —
Constituied -.---.
Management, inci iing exchange

Leaving, as p:iid on indirect indebtedness -

On account of which there wad received from—
Great Western Railroad - . -
Municipal loan fund, west and east
Sundry minor accounta ...

Dolt. ctt.

1,236,376 45

51,085 21

227,088 40

151,932 56

30,093 73

Leaving, aa the amount advanced in 1858 by the province - Dolt.

3,098,460 67

1,2H7,-J«>I 66

1,810,989 01

409,114 69

1,401,874 32

VII

The

400.

ii!'!'

? 'i'V''

PAPKKS HKLATiNCi JU

The dftiiil ol' the advaiii'e i~ tlm.-* -Iimvii —
Railway advanciM . . . -
Loris CJrcnt Wc'iteiu - - - -

l)nl».
- I,2G0,4'>!)
227,088

ct*.
21
40

Dot:

i,o.);j,.i7f)

368,50.1

cU.
81

Muiii<'i]iiil loiin I'lind, west iiiiil I'ost
Loss rcceivL'il . - . • -

520,4.16
151,9:J2

07
50

DoU.

1,401,874

dftlii:" Imi';;!' -inn. that paid mi acoonnt of the railways cannot he ruihjcpt to immediate
rcdnrtion, hnt in the case of tlic Municipal Loan Fund and other loans, it has been already
remarked that witli rcvivin}; prosperity, the general revenue may expect to obtain con-
sidcrahlc relief in the current and future years.

On the .Huhjcct of the puhlic debt, it is necessary to offer some remarks In consequence
of the exceptional circumstauccs attendant on the transactious of 1857 and 1858 ; which,
owing to a Huddeu diminution in revenue, occurring simultaneously with the necessary
assumption of very large and unexpected charges, nave caused a serious deficiency in
both years, and a consequent resort to loans to meet it.

The direct public debt of Canada is (. 24,430,975. 17., which has been created
almost wholly for the great canals and other works of national improvement.

The expenditure upon these works is shown by the statement of assets and liabilities of
the province, at 31st December 1858, to have been —

Welland and St. Lawrence Canals - - - .
Other canals ----..-.

Harbours and light-houses .....

Beads and bridges .......

MJsceLaneous ....---.

Dots.

There has also been charged against the Consolidated
Fund for works whicn have proved unproductive,
or which have been transferred to the municipalities

And there now stands at the credit of the Sinking
Fund for the Imi)erial Loan . - - - -

Total -

Dol».

While the existing direct public debt incutTed for these
works, and including all sums raised up to this time
to meet the deficiency of 1857 and 1858, is -

Whereof Statement 1 shows to be held on account
of the Consolidated Fund . • . . -

Leaving

- Dols.

Doh.

cU.

Doh.

eti.

14,155,206

2,766,146

2,817,057

1,610,267

1,326,346

22,675,024

1,982,039

3,752,843

28,409,907

24,430,975

621,726

23,809,248

4,600,658

which has been paid out of surplus revenue, up to Slst December 1858, after adding the
whole deficiency of the two last years.

This statement will abundantly prove that the policy of Canada has not been that of
providing, " loans for temporary wants, but that in reality, after meeting every engage-
ment up to aist December 1858, there remains the sum of 4,600,658 dofiars taken from
ordinarv revenue, and applied to permanent works now belonging to the province.

The mdirect debt of tlie province appears by Statement No. 1, to be —

Railways ...
Municipal Loan Fund
Sundries - - -

DoU.

On account of railroads . . - - -
Of which the advance to the Great Western
Itailroad can nlouc be regarded as secure

Leaving

Doh.

20,295,098

9,057,792

1,169.684

cti.
47
00
85

30,522,575 32

20.:35,098 47

2,810,500 00

17,484,598 47

;i V

V73

CUSTOMS DUTIES (CANADA).

for which the provim-f iimy have iiltiiimtcly to proTidr ;] nu'iintiir.o atlvuiH'iii}r the
intercut.

Thp ailvniico of this* (>iiin hn*i intlucod tlir ir.vpHtmcnt by privatp (■ii|>it!ili.'-ti< ol' nt li'nnt
6(),000,0(K) ilolhirn in tho Qrniul Trunk, Git-at Wcntcrn, and Northern UnilioutU. luiil linn
thereby (•(■cured an iinintorruptrd railway conuiiunication throufjhout tho onliro li'ii;.'ih of
the jirovinor, conipriitiuff, with their Ijranchci', about 1,250 uiiics of rail. It will iK.t lie
di!*|>uted, that aithou};h the unfortunate disapiiointnient in tratHe lui* eauned the (irund
Trunk and Northern liaiiwiiys to Ikh-ouu- a eharjtc uj>on the )>rovineial revenue, yi't Caiuida
has, in every other respeet, \ery lar{,'ely benelite<l by thece woik^, and indirectly obtains
a return uiion her advances, llirou;rh the diinitiishetl cost and increased facility with which
the wlioic business of the country is now carried on ; while there is ;:ood j;round to hope
that ultimately the increase of |io|iulatioii and trade may jihice both these railroads in a
]K>sition to assinne the charjros, wliich for the present ilevolve upon the province.

The remaining; portion of the iiidirc<-t pro\incial delit has mainly arisen from loans con-
trncttHl by niunieipalities under the Consolidated Municipal Loan Fund Act, and respect-
ing which I have already remarked, that rcturninj: prosperity will relieve the province
from tiic principal weight of this obligation. The amount at IHst December 1858, was —

Upper Canada
Lower Canada

Doll.

Dolt. eti.
7,294,792 00
1,763,000 00

9,057,792 00

Tho Act p'^rmittinp tliesc debts to be contracted limits the amount to be issued to
^. 14,600,000, to be equally divided between Upi)er and Lower Canada. And, looking
at the ojjcration of the law up to this time, it may appear proper to the Legislature to
restrict the issue of the remainder of the loans, especially in connexion with tlic idtimate
and comjdete abrogation of the JSeignorial tenure in Lower Canada, for which it may be
necessary to make legislative provision. The payment in 1858, from the Seignorial
Tenure Fund of ^. 298,.'151. ;{7. although including a large sum for the expenses of
the Commutation Commission, would seem to indicate that the aniount re(|uired in ex-
tinguishment of the feudal tef.ue will largely exceed the present fund, and in justice
alike to the Seignior and Censitairc, whose title to their property has been entirely changed by
the Legislature from motives of public policy, it does not aii|iear]iossible to avoid incurring
further liability, in which view it may be considered desirable to relieve the province from
a certain part of its indirect liability, connected with the future extension of the Consoli-
dated Municipal Loan Fund Debt. Canada will thus succeed, at a very nicxlerato outlay.
in achieving the comj)lele freedom of her teiritory I'rom the oppressive burden of the
feudal tenure, which has in no other country been ever shaken off, without the most
prolonged, expensive, and bloody conflict ; and her people, instcnil of remaining worn out
and exnausted with the struggle, will at once feel tlie beneficial results of the cnauLC, and
by increased energy, freedom, and intelligence, far more than coni]iensate the province for
the pecuniary charge by which the object has been attaine<l.

In conclusion, I have the satisfaction to stale, that by a moderate addition to the
existing duties on Customs, combined with considerable reduction in almost cv<'ry branch
of the Public Service, it is my ojiininn that the expenditure for l85i( will be brought
within the revenue; and should no continued failure of the harvest occur, it is my confident
hojie that the ])rovince will be found to have J)as^cd througli the trying jieriod of recent
depression, with <!ertainly as little diHicuIty as any other country in the world.

All which is rcsiicctfiilly submitted.

Toronto, March 1859.

(signed; A. T. Ga/t,

Inspector-Ucneral.

for

400.

2()

PAPERS RELATING TO

O I". N 1 : 1{ A L KSTIMATE of the Probable Amount of the Plulic Ezpenditurk and also of the Gross Revknie

of the Province of Canada, for the Year 1859.

■ i

ifli

,ii

1' <i Y M K N T S.

InUirrit cm Puhlii! Debt

Oiargrs of Minigemmt

Sinking F inj , . .

OUconnt ....

Exchange ....

Civil Gcnernm.^nt - - .

Adininintriitii'ri of Junior, Eut

Uiitu - • ilitti> - West

Police

]'ro«iii>'ial IVMiliin'.ltr; and Raformitar^
I'fiijiis - - • .

Legi^lu'.iun . - . .

Educaticii, ICa^t ...

Pitlo . Wot ...

Literary nnd Scientific Inititulioui

Hoipitala and Cliaritiei ■

Geological Sun-ey ...

Militia and Enrolled Force

Arts, Agriculture, and iStstistin

Agricultural Societiei .

Emigration and Uuarantinu -

Pension.^ ....

Indian Annuities ...

Public Worka and Uuildingt (exclurive of
Perinnnint Workt) -

Rent9, Itepaim, &c. (eirlu»*'u oi Perma'
nent \Vorki> ...

Roads and Uridges, excluilTe of Truat
Funds ....

Ocean and lliver Steam SerTice

Lightliousc!) and Coast Service

Fisheries ....

Culling Timber ...

Railway and Steamboat Inspections

Advances ....

Miscellaiuous . - -

Collection of Revenue ;

Customs ...

Excise - . - •
Post UfHee -
Public Work* (Collection)

'iVrritoiial, including Oidnance Lands

(Collection) - . •

Fines and Vorfeitures

Casual . - . - -

Special Funds (eicluding Tnilts)

Actual

Expeuditurc

in ISAM.

Dot:

:i,o:io,899

i6,738
43<,f<HO

311,942

10,812
31)1,734
360,883
247.475

4L931

61,GU0
fi84,4l2

301,734

224,650
33,3G0

194,988
19,566

162,351
21,016

111,032
49,982
ta,3!)9
31,020

187,030

38,305

94,859

217,555

116,613

15,628

50,198

14,778

163,345

57,728

TOTAl

- - Boh.

341,863 37

16,290 00

565,636 37

270,578 18

221,316 95

11,887 OS

33 00

2,401 SO

Estimate for
1859.

8,943,013 53

Doh, cit.

:i,0.10,0()0 00

30,000 00

. 270,000 00

00 oo

00 00

350,000 00

320,000 00

245,0U0 00

25,000 (X)

73,000 00

.18.">,000 00

225,000 00

15,000 00

200,000 00

18,000 00

75,000 00

10,000 00

00,000 00

25,000 OO

45,000 00

31,000 00

150,000 00

40,000 00

50,000 OO

250,000 00

llO/KK) 00

15,000 00

50,000 00

8,000 00

00 00

55,000 00

300,000 00

25,000 00

350,000 00

230,000 00

150,000 00

12,000 00

00 00

3,000 00

RECEIPTS.

OnDI.NARY lUvKNVIS :

Customs

Escise ...
Post Office .
Public Works
Territorial -
Ca«ual . . -
Quebec Fire Loan -
Interest on Investments

Sinking Fund Interest, and gain on InTCSt-
mcnts ....

Actual
Receipts in

1858.

Bank Imposts . • -
Law Fees, 22 Vict. cc. 63 and 64
Fines and Forfeitures -
Premium ....

driciAi. Revinvis :
Law Fees, Upper Canada, 8 Vict. c. 13 -

Law Fees, Lower Canada, 13 Vict c 37

Tonnage Duties, Quebec and Montreal
(Mariner's Fund) . . . .

Passenger'* Datf .....

Tonnage Duties, Qaebee (RiTCr PoUoe)

Culler's Fond* . . . . .

Steamboat Inspection . . . .

tMU. elt.

.3,368.157 70

138,760 22

295,395 76

400,727 15

415,372 68

12,856 08

729 70

46,599 21

142,880 80

45,208 41

42,176 22

20,845 64

239,568 75

.35,618 24

59,710 58

8,360 40

11,418 77

8,514 40

49,338 13

5,293 26

Guarantied and Advanci Accocntb i

7,497,000 00

Municipal Loan Fond, Upper Canada
Ditto . - ditto Lower Canada
Law Soeietj, Upper Canada •
Court Houses, Lower Canada
Upper Canada, Building Fund
Quebec Fire Loan ...
Repayment of Advances
Great Western Railroad Interest

Total

- DoU.

140,198 S»

11,734 27

10,191 09

25,135 05

12,138 00

72 01

227,088 40

Estimate for
1869.

Dolf. ell.

5,200,000 ()fl

200,000 00

350,000 no

450,000 00

400,000 00

15,000 00

00 OO

46,000 00

120,000 00

75,000 0(1

42,000 00

21,000 00

GO 00

35,000 OU
00,000 00

8,000 00

10,000 00

9,000 00

50,000 00

6,000 OO

300,000 00

150,000 00

10,000 00

25,000 OO

12,000 00

00 00

70,000 00

170,000 00

5,774,089 23

7,734,000 00

.oc

Geoss Revem £

■ in

Eitimttc fur

lWi9.

ell.

Dolt.

C/l.

• 70

5,200,000

) 22

200,000

i 76

.150,000

1 15

150,000

> 68

400,000

} 1)8

15,000

) 70

) 21

46,000

) 80

120,000

1 41

75.000

S 22

42,000

i &4

21,000

3 75

i 24

35,000

) S8

60,000

) 40

8,000

1 77

10,000

9,000

.V),000

6.000

200,000

liO,0OO

10,000

25,000

12,000

70,000

170,000

7,734,000

'i^^'

CUSTOMS DUTIES (CANADA).

— No 5. —

(No. 8.)

Copt of a DESPATCH from his Grace the Duko of Xewcastle, k.g., to
Governor the Right Hono rable Sir Edmund Ilend, Bart.

lli»Grncc llic
OiikeofNuwcattlai
K.O., to (iuvciiior
the Right Honour-
able Sir r.ilmtind

Sir, Downiiig-strect, :il January IW6(>.

I HAVE refiTrod. for the cronsidcrafion of tlic Lords of tlie Committee of licail.Bart!
Privy Council for Trade, the Hcport of tlic Minister of Finance in Canada 'l' Junutrv iSfo
(enclosed in your Despatch, No. 118,* of the llth November) respecting tlie • I'agc ii.
import duties levied in the province upon certain Hritish manufactures ; and I
transmit, for your information, a c(i|)y of their Lordships' reply, accompanied
by a memorandum on the subject, prepared in the Statistical Department of the ^~~~--^.
Board of Trade. """"---^ "~^

1 have, &c. ^"~-

Governor the Right Honourable (signed) Navcastk.

Sir Edmund VV, Head, Bart., k.c.b.,
&c. &c. &c.

Enclosure in No. 5.

Office of Committee of Privy Council for Trade, "Wiiitchall,
■ Sir, 17 January I860.

The Lordc of tliis Committoc liavc had under their consideration your letter of the
15th December last, tran.smittinft, by direction of the Duke of Xewca.stle, a ropy of a
report by the Finance Minister of Canada upon a Memorial from the Chamber of Com-
merce of Sheffield, respecting the import duties levied in Canada upon certain Itritieh
manufactures, and also a copy of that memorial, and of the Duke of Newcastle's Despatch,
in which it was conveyed to the Governor of Canada.

In accordance with liis Grace's desire, my Lords have carefully examined the state-
ments and arguments of Mr. Gait's report; and I enclose herewith a copy of a memoran-
dum which has heen prepared in the Statistical Department of the Board of Trade, and
which shows in detail the result of this examination.

In .submitting this memorandum to the Duke of Newcastle, I am to request that you
will state to his Grace that my Lords do not jjerceive anything in Mr. Gait's explanation
of the recent Canadian tariff to affect the conclusions at which they an'ivcd upon an ex-
amination of tiiat tariff, and which were communicated to the Colonial Office in my letter
of the 20th October last.*

They tliink that the Justification of this measure is to be found in the financial exigencies
of Canada, and the difficulty, if not impossibility, under the peculiar circumstances of the
province, of raising the necessary amoimt of revenue from any other source than the
import duties upon manufactures which enter largely into its consumption.

Upon this ground my Lords stated, in their letter of the 20th October, that they were
not prcjiared to disai)provc the course which had been taken by the Government of Canada
in framing the Tarift' Act of 1859. They think that the explanations given in Mr. Gait's
report of the principles upon which it was framed are, on the whole, satisfactory.

They cannot, however, lose sight of the fact that under the present tariff the rates of
duty levied upon quite two-thirds of the duty-paying imports into Canada have been
raised since 1856 from 12i to 20 per cent., being an increase of 60 per cent. ; and that
this increased l>urden has been since that date placed upon the principal manufactures
exported from the United Kingdom to Canada.

INIy Lords therefore cannot but regard with regret the fiscal necessities whicii have
compelled this most iiiiportaut Colony to adopt a policy, the tendency of which, whatever
its immediate effect may have been, unquestionably is to check the natural development
of her foreign trade, and impair her industrial progress.

Mr. Gait disclaims on the part of the Government of Canada any intention of
affording, l)y means of n tariff of increased duties upon foreign manufactures, an artificial
Stimulus to the industry of the province. And my Lords are glad to find that such
an object formed no part of the uitcntion of that Government in readjusting their Customs'
system.

They cannot, howoveCi concur with Mr. Gait in thinking that it shoidd be a subject nl
gratification to the Canadian Goveniment, if it is found that the duties absolutely
required to cvable them to meet the engagements of the pro\ince, should incidentally'
beneifit and encourage the production at home of many of the articles which she now
imports. ,—

4»0. b 2 On

Enclosure in No. 5.

• Page. 9.

^^'

' .

li I

9ft PAl'KRS RKLATINt; K)

Oiillic riiiitniry. ni\ Lonl" :ire nl' upinii'ii tli:it, clioiilil tlii- itii'iili iit:il rBrct l)r pro-
ilufcil liy till' (i|Mi;iliii|i III' the |in'i<(nl t:iiitl, :iii'l l>niiirliis nf iiativr inJu-trv lie i'i-i<ut< )l
wliicli ciiiilil not have ii|ii. illy |iI'ii.-'|kt< il witlidut | loli'cliM- diitir^: it iii:iv Ix' Icpiind wlicil
till' fiiiuiKiiil cnnilitii'ii m|' tlir |ir(ivinc(" iiii^lit cnnlilc ihc ( ii)vrrniM' iil tn rciiiKi' tlicir

import (liitii'ii; that I'iii.-'s iit' iiitfiv^t \vi" ' ' - ' *'

I ilutirs, wliirli will iiit( rjioM!

jrct III

lavc pruwii lip III (l» |n'ni|i'iii'c ii|iMn tlione
.- rjioM! H very rii'i-'ioiis oli<t:i(le in tlic wuy of a rctiirii tn n Hoimdcr
coniiiierrial policy, nmJ that a r-yslem of taxation ailopti'.l for tin' U'j;itiiiiati'
revenue, may he roiitimicii lor thn niiM-liicvoii.-i purpose of" pn.tci'fioii.

The I'ndiT SciTCfary of State,
Culouiu! OIKcc.

1 ha\o, Kr.
(sigiieil) Jaiiira liiiot/i.

Stib-Enclosiin'.
MKMOKAXDUM on the Report from the Miiii-ter of Finniiee in Ctiiui^tn.

Mil. (i ALT, in liii» Roport, first tliseupses a ^Ifniorin'. from the ShcHieit! Chamber of
Coninieree ajiaiiist the recent iniTca-o of import tliitief in C.nada, aiul then entern into
cxnlanntionH of the finaiieiul |Hi,-ilioii and policy of the I'mvinee.

In replyinnr, in the first iihico, to the oiieiiini' coinjiiMint in the Memorial, of the " recent
" advanec of import duties in Cana<ln." Jaten are overliNiked by Mr. Gidt, when he eouuects
thin " recent advance '" with the tariff" of Aiignst 18.)J>, and obgervesthat no advance what-
ever was made on Sliefficld {{(kkIr bv the Act in (luestinn. TJiat this Act coiiUl not bo
tlie one in ipiestion is proved i)y the Memorial buiii<r dated the 1st of Aii<riist, and the last
Tarifl' Act the 7th of August 1M59, and on the 2(lth of the previous month of July the
Memorialists had had an interview with the Dnke of Newcastle, to represent the grievance
Bet forth in the Memorial. The " recent advance" therefore must have had reference to
the tariff's of 1M;)(» and 18j8. In these years the duties on hardwares and some other
manufactured articles were raised f"rom 12 J percent, (the rate of duty in foree since 1849)
to 20 per cent. This alteration f"roni 12 j to 20 per <'ent. was an increase of duty to the
extent of GO per cent. In 1846, British hardware was admitted into Canada at a duty of
') per cent., and foreign at 12 per cent. There can be no doubt, therefore, as to the fact of
a" coiTsiiTcridjIe Increase of the Canadian duty in recent years on hardwares and cutlery,
and other im|)ortant articles produced by the n\anufactnrers of the United Kingdom.
Whether this increase of duty has occasioned any decrease in the trade of Sheflichl with
Canada, by encouraging the competition of Canadian or American priKluctions, is another
question.

The Canadian dtity on hardwares have been too recently augmented to admit of the con-
sequences to the ti-aiie with the Province being siiiisliictorily ascertained; and the period
during which the higher duties have been in force has been one of much depression in the
import traile of Cantula.

The f"ollowing Table exhibits the total value of manufactured iron and hardwares
imported into Canada, and the vahie thereof from the I'nited Kingdom and the United
States respectively, in each year from 18.70 to 18.58: —

YEARS.

Total Vai.uk

1850

33U,20I

1851

403,845

1868

466,096

1853

648,7-.20

1854

800,558

1855

035,630

1856

045,863

lSi57

480,043

J858

;!3 1,078

Value frriu

Value from

'United Kingduni.i United 8tatea,

i".
i."2;,l»10

yifi,i)o-i

204,208
367,031)
5II,01'.j
298,054
288,19-2
344,»OI
182,610

£.
08,363
144,747
100,460
284,071
338,3.j3
3:!0,80 1
350,787
240,310
147,330

A large increase will be observed down to 18.54; and the large amount of imports
between 1853 and 1856 is attributable, probably, to some special demand, perhaps, in con-
nection with the railroads, as wrought iron and steel are included in the Canadian returns,
under the head of manufactured iron and harihvarcs. As regards the imports from the
United Kingdom, it will be observed that a great falling off occurred befoie the duties
were first increased (about the middle of 1856) ; and the decrease in 1857 and 1858 could
have been but little influenced by the change of" duty, as until August 1858 the duty had
only been raised from 12 ^ to 15 per cent. Whether the further augmentation of duty to
20 i)er cent, will seriously check the importation of British hardwares remains still to be
s'lown by the results of the Canadian Trade Accounts for 1859, and one or two subsequent
years. By a Return obtained from the (.'nstom House, it ap])ears that there has been an
increased ex|)ortation of hardwares and cutlery to Canada in the 11 months of 1859, as
compared with the same period in the previous two years.

The

•m

( USTOMS DUTIES (CANADA).

Tlio tiil)U' tir.-t liivon .-Imw.-i undoiilitnllv n l.irpo iiicii-jnc iu tin- -ui.i.lv ..I" \i,i<-rii-itn
miiiniructiiri'il inm iiiul liiinlwarfs to the (■uiiniliiin niiiiliC!-' ; Imt it ili>i,-< not fnllow tlntt
Uriti.-li ;;i>ii<li Imvo fjivi-n w.xy tn Am"ri(:in. Altli(«uj;li tlie xjiliic . i" ilu'-i' Aiiiinc:ni "mihU
cxi'ocdeil that nl" llio Hiiti.-li in In.').) iiiul 1H.')(), they cxwttrit'nci'd :i •tn-.a ilirliiu- '.i !s,'>7
and iH.jS, and in tln'^e vearn tiic iinpurt.'t iVoin tlio I'liited Kiii;,'(loin oxccnUil In \aliio
thosie Iriiui tlio United Stuteit.

Mr. (iiilf, in his ropnrt, stato^ tliat fliere an; I'lTtain de.''on]itiiin< of Imnlu.iri- ;n\.l mi-
lery wliii'ii arc ina'nir:ii'lMr( d in a sn|iorii)r manner l)y the Amerieun and Canadiiii; in;imi-
facturer . In \\n!*c irnnci:^ ire saN", " there is really no eoiii|ictiti<in ; their relative m;iit4
" are pcrt'ectly well l>niiwii."' Tlie fart ii>, Mr. (ialt :n\iU, '• tiat certain ;^imhI> urr l)i'M;,'ht
" in the Slieflield market, nn<l certain in the Ameriean."

Thcgc iihsorvatinns upon a dillercnce in tlic dexeription of pKid.'t ohtained fn>m Kn^lan*!
and the United States are rather borne out bv an (.xaminatioii of tlic value of the exiMirt.s
of hardwares and cutlery from the United Kinf;doin to Camuln between IH.'i't to XMH.
Under this heading uur accounts arc miieh more restricted to actual wares of iron than
the Canadian acctnintB previously refeired to; but a comparison of the movenicuf in thin
class of our exports and in the imports from the United States, as shown in the |revious
table, leads to the conclusion that the exports of liritish hardwares and cutlery to Cu.iada
has not been much affected by the growth of the American trade in the same elasi< of
goods. These import.s from America show a large annual increase from 1850 to 185G,
whereas, as appears bv the following figures, the British ex|)orts of hardwares and
cutlery to Canada in the same years show, with the exception of the two years 1854
and 1858, a somewhat steady fluctuation, decreasing and increasing to about the sa.iie
amounts.

TEAKS.

DECLARED
VALUE.

TEAU0.

DECLARED
VALUE.

1850 •

1851 -

1852 -

1853 -

1854 -

£.

92,561
130,305

93,316
135,105
220,941

1855 -

1856 -

1857 -

1858 -

£.

92,391

123,642
124,309

72,399

The

A comparison of this and the preceding table, in t!>c manner suggested, certainly helps
to sustain Mr. Gait's statement as to the different description of goods supplied by the
United States and the United Kingdom to Canada respectively, rattier than to alTora evi-
dence of British goods suffering by competition with the American.

In judging of the effect that the new duties in Canada are likely to have upon the trade
of Sheffield with that Colony, it is important to consider the mode of valuation adopted
in Canada, and the amount of the Canadian duty comi>ared with that levied in the United
States. Mr. Gait refers to these points, and the remarks that he makes certainly tend to
lessen the probability of the new duty iu Canada being very oppressive on the exjwrts from
Sheffield.

The valuation for duty in Canada is, as Mr. Gait slates, upon the value of the goods in
the market where bought instead of ujjon the value at the port of entry, as i3 the case iu
the United States and other countries, where ad talorem duties prevail. The principle
adopted in Canada must considerably mitigate the ])ressure of the ad valorem rates of
duty in that country. The difference in the value of goods at the market where bought
and at the port of entry, including in the latter value all costs and charges (except insu-
rance, as in the United States') cannot be less than 12^ per cent., so that goods which
would be valued for duty at UK)/, in the ITnited States would not be valued at more thon
87 /. 10 ». in Canada. But, taking the case of hardwares and eutlcrv when Importetl into
Canada and the United States, besides being subject iu the I'niteu States to the higher
valuation for duty, such articles are liable to a duty of 24 per cent., instead of 20 per cent.,
as in Canada. Therefore hardwares and cutlery of every 100 /. value at the j)ort of entry
would have to pay a duty of 24/. in the United States, and but 17 /. 10 «. in Canada, a
di£ference of 6 /. 10»., or 27 per cent, in favour of the latter.

If Sheffield is not shut out from the American market by a duty of 24 per cent, ou a
valuation at the port of entry, the trade of that town with Canada is not likely to be
seriously injured by the duty of 20 per cent, on a valuation at the market price at
home.

Mr. Gait refers to this fact, when he maintains the power of the iiiantifa<"turers of
Sheffield to compete with those of America in the Canadian markets. Mr. Gait says,
" Sheffield is able now to export very largely of these very goods to the American
" market, paying a duty of 24 per cent., and competing with the Ameriean maker.
" Certainly then in the Canada market, Sheffield paying only 20 per cent., can have
" nothing to fear from American competition which is subject also to the same tluty."
)Some opinion of the extent to which Sheffield is able to export to the United States, may

400. D 3 'Je

^^"^

PAPKUS RELATING TO

[up

»!!

be foniiPiI from the fullowinn htiitonnMit of t\w *aliin of Jlritish h»prfw»r.>< and cutlery,
ex|Hirtcil to tlir United Statcn in «'H4-1i vcar t'rom 1850 to '.i<.W :

YEAItH.

\Hr>() . . - '

!«')! -

1H52 - - - I

IK.Vl -

1H54 - - - I

TALfK.

vcakh.

TALCE.

£.

1.04!l,9();5

]><:,:> -

OOO.H.'H

l,080,t87

IS.'jfi -

1,222,419

!MiH,4S2

18.57 -

l,n;n,867

l.;t.<4.127

lH,-)8 -

6f)4,097

l,4;Jl,fii»6

IS.')!) (11 nioi

itlii>)

1,047,032

Tlienc fifftircii aluiw nn oxjiort five tiincH iis hxr^c nn thnt to Cannda, and it is to be
ol)i>i'rv('d tlint these ex]«)rt!< wore, for almost the wliolc period, suliject, upon importation
into the I'liitfd State-', to a duly of 30 per eeiif. It was not l)cfore 1857, that the
American duiv vm rrdneed to its present latc of 24 jier cent.

It will not ne necessary to make many remarks upon that part of Mr. Gait's Report,
which refers to the calculations by the Memoriali.«ts of the relative costs of delivering
Shetficid and American goods in Canada. As the Memorialists fix these costs when the
duty is deducted, at from 15 to 20 per cent, to themselves, and at no more to the American
manufacturers than from 2 J to 5 per cent., they prebably represent the advantage of
proximity to be {greater than it really is, and expose their calculations to Mr. Gait's
charge of being erroneous ; but against such an advantage having much influence on the
competition between the English and American hardware manufacturers, there is, as Mr.
Gait oliscrvcs, the fact of the large export of Kiiglish goods to America itself, and also
the probable higher cost at which the goods are produced in America.

The Memorialists assert that Canada has more than 1,000 miles of unguarded frontier
across which the American manufacturer can smuggle with impunity, but Mr, Gait says,
this is a reckless assertion, and shows that the Canadian Government is not indift'ereut to
the protectiim of its Customs Revenue on every availaVjle route. The Americana have
certainly availed themselves to a great extent of the legitimate channels of trade with
Canada, until the recent alterations of duty and the facilities for smuggling do not appear
to be such as to encourage a contraband trade to any extent, under the present system of
higher duties.

Judging, therefore, by the exports of hardwares and cutlery from the United King-
dom to Canada, during years in which there was a very largo increase in the American
supply of manufactured iron and hardwares, and by the exports from the United Kingdom
to the United States under higher duties, there does not appear to be much ground for
a]>prchending auy serious injury to the trade of Shetiicld with Canada from the recent
increase of duty in that Colony.

That it would have been better for both the Sheffield produ<!er8 and the Canadian con-
sumers had the Canadian duties not been raised is not to be disputed ; but the necessities
of the Province must prevail over these interests for the present.

4.ftcr controverting the Memorial, Mr. Gait proceeds to give a detailed explanation of
the commercial policy and legislation of Canada, which " He believes will abundantly
" prove that the policy of Canada, so far from being opposed in principle to that of the
" Mother Country, has been in accord with it, as far as differing circumstances would
" permit."

Mr. Gait then briefly refers to the policy in force, and the changes made in it between
1841 and the present time.

But a comparison of the changes in the commercial legislation of Canada and of the
mother country in the period alluded to, will scarcely entitle Canada to claim the accord-
ance which Mr. Gait would establish.

The principle of i)rotecti(m was much more general in the English than in the Canadian
tarjfl', and the rates of duties were much higher in England than in Canada.

The chief instance of similarity in the Imperial and Colonial policy has been as regards
the importation of corn; but in this respect the circumstances of the two countries were
so dissimilar, that the repeal of the duty on corn, though corresponding in principle, was
a change that operated very differently at home and in the Colony.

If, however, as regards protective duties, some identity of principle may be traced in
the policy pursued in Canada and Great Britain, Ihe same cannot be done with respect to
discriminative duties. In Canada, the discriminating duties, whic i admitted British produce
at less than half the duty on foreign, were wholly discontinued in 1848 ; and -here duties
were retained, the higher rates were made applicable to both British and fori ign produce.
In England, on the other hand, discriminating duties have been retained in favour of some
articles of Colonial produce, especially as regards timber, the chief article of export from
Canada. And in discontinuing the principle of diffeicntial duties for Colonial and foreign
produce, the policy in England has been, where the duty has not been altogether repealed,
to lower the rates for both foreign and Colonial imports ; the policy of Canada has not
therefore been in accord witli that of England as regards discriminating duties. The ces-
sation of such duties in Canada so far back as 1848, must be considered rather more the

result

*i^'\

CUSTOMS DUTIES (CANADA).

remilt of Iinjiorial timn of Cana<linii U-^'ii'lution. Tlif I'liimilinn^ linvt- frfi|iit:iitly nioiiuw
riiilizoil the lloinc (lovcniment fur the iiiniiitOMniu'c of tliJlorcntiiil iliitio* in fn\(mr of tlii-ir
jiroductioiis when iiiipji-tt'tl into Kn^flnml ; ami liud Kii^jlnml rciiuiroil i')'t'i|iri>citv on tliu
part of tlip colony, the p<|U!lIi/ation of the Canadi.in ihitli'H on IJriti.-h anil torcigu ini|Hirti«
ponltl not have taken jilnce "o loiij.' ris' the ])ri><ln(tiiiii> <i|' ('Hn!\(hi were favoiircil liv the
liritiKli taritl'.

Tlic re))enl of the Niiviij;:ition I^iiWf' ii" alliiihMJ to hy Mr. ( ialt. It wan a clianjjc of |)oll-y
higlily licncrii'ini, nmloulit. to the lomniunliil iiite;c.»t< of Canada ; liut for niui liof the coimI
that ('anaila lU'rivcs from inipioved e<niini(riial relatione, umlcr free navij,'atiiin ancl an
e(|iiali/.0(l .^ystelu of iliitic>, ^lle is chiotlv iiuh'litej to an tin.-elfi-li jHjlicy on tiie part of
(ii'eat Hritain.

In referring to the value of the inijiort;- into Canada lictween 1n41 and iM.Vs. Mr. (ialt
liroininently notices tlie j;''eat inerea.-o in the amount of ijood^ ini|"prt(il duty free.

it i.t true that many mi.<eel!:'.ncims ar'.ic-les aie now admitted into Canada free of duty,
but the nnijorily of them are only iuJiMirted In ^innW nuantifieiii.

The <;reat incieanc in the imports ol free irood.-' ix owin^ lo the lari;e tnule with the
I'nited States, sinec tlie Heeiproeity I'leaty of I8.'i4 in corn and nu'at |irovi-ionK, Wheat
p' d Indian eorn were made I'ree in t aiaula in Is.'il), Imt there were no eon.-iderable iniportti
of .sueh ;;rain before 18.31, when the Keei|iroeily Treaty was made, and when other kindt
of t;rain and tlour of all kindM were also made free of diitv. In eaili year •<inee 18,'>4,
(Canada has iinjiortcd f;rain anil tlour very largely: [irinci|ia(iy ofeoiir-e from the United
States, liut in lliu tame years, and under the same ticaty, tliere has been a very large
e.xport of the came artielei* from Canntia to the I'nited State?, much exeeedinfr, in faet,
the imports from the United States. There is therefore a -inijile exehaupre, as it were, of
eorn between the two countries, aeeording probably to tlie jiroductiipn and i'.'i|uirement8
of particular and eontij;uoU8 locidities. Sueh an arrangement is doubtless very benefieial
to Canada and the United States, and is in it.-ell' a free trade ; l)iit it is special in its
ehar.ieter, and induoiiees so largely any illustration of the eonnnereial jioliey of Canada by
means of a eomjiarison of the value of free goods imported at ditt'erent jieriodsj that it Ih
desirable to see how tlie free gi^ods have ad\aneed in |ir(portion to the total imjiorts, if
corn is excluded. Mr, (ialt shows that the value of free goods imported into Canada was,
on an annual average, 2J per cent, of tiie total imports from IHII to lH4l^,7 percent, from
1849 to 1M.J4, and 2!> jjer cent, from 18.5.5 to 18.58. Ilow largely tliif increase in the free
good.s is due to the reciprocal trade iu corn with the Unite<l States, the following figures
will sliow. The periods taken by !Mr (jalt cannot be conveniently followed, for want of
the iiriginal returns; but a comparison of the I'ree goinls with and witlamt corn in 18J0,
when wheat and Indian corn were first admitted free of duty, and In iHoj, the year following
the Kceliirocity Treaty, will .suffice for the purpose.

I 8 .5 0.

I ■■ ■

1 8 5 .).

Total value of imports into Canailii

£.4,24.5,517

£.!),021,542

Value of free goods with corn

294,1 ;i:j

2,596,38:}

I'roportion of total imports - . -

•

7 per cent.

28J per cent.

Proportion without corn . . -

£. 2,'iG,21G

£. 1,507,125

Proportion of total imports - - -

G per cent.

16 per cent.

The per-ccntuges, luuluding corn, iu IH.jtl and 18.55, oorrespocd with Mr. UaltVavcrugCd
for 1849 to 1854, and 1855 to 1858. P,ut omitting corn IVoni he free goods, an luereuso
Is !^hown of from 6 to 16 per cent, against that shown by Mr. (ialt of from 7 to 29 per
cent. 'J'liMS, by making allowance for the special and large Increase in the imjwrts of corn,
the Incrcasi in the value of free goods cannot fairly be reckoned according to the rates
stated by ili\ Gait. In 1850, the eorn adniitti'd free of duty formed but 13 per cent, of
the free goods ; whereas In 1855, 42 per cent, of tlie free goods consisted of corn and meal.
It Is deserving of notice how much the increase In the value of tlie total imports of Canada
between 1849 and 1858 is occasioned by the great advance iu the free goods. According
to the figures appended to Air. Gait's report, the annua! average value of the imports
between 1849 and 1854 was 5,067,000 /., and between 1855 and 1858 it was 9,261,000/. ;
.sliowhig an Increase of 3,294,000 /. or 55 per cent. Deducting however the free goods, the
value I'or the first period was 5,559,000 /., and for tlie .«econd 6,564,000 /., the increase being
only 1,005,000 /,, or 18 per cent.

In connexion with the value of the total imports and free goods, Mr. Gait exhibits the
amount of duty recjeived, and he attaches much importance to the proportion which tiie
duty bears to the imiwrts, as being a proof of the trifling aildltion that has really been
made to tiie Customs Duties in Canada. Mr. Gait deduces tlie following results of vhe
proportion borne by the total amount of duty received to tiie total iinportB on au annual
average : —

- - - Duty lOi per cent.

- . - - „ 13i „

- - - - » 104 „
D 4 But

Between 1841 and 1848
1849 and 1854
1855 and 1858

' t*

400.

3-1

PAl'EHS RELATING TO

H:\

;<!'

Hut as tliu prill', ipnl clittr^tcH in tlio Cniiadian tnritt' were made lu Aiigiiitt lH,jH, Mr. Gait
gives II ocparalf rcfult for tlmt yeiir, iIiiih : —

IHJH to 7tll AuKUct -
IH.'iS from 7tli Augunt

Dutv 1 1 i>er cent.

Fmllicr on in llio Rc|M)rt, Mr. fjiilt ikIiIh n riiniliir result for tlie first nine iiionlli.i of
18.')!), ihiniig wliii.'ii |iriio(l ilie new lurHf of the present Canailiiiu (iovcrnnunt lia." bceu

ill force.

1H.')<>, !» iiiontlis

Duty 13* jier ■•out.

To lliene resiiit.-, iin<l <'s|iecinlly the hist, Mr. Cinlf requests file iittentioii of the Dnkc
of Newe':stle, "lis showing; that the iuereased rate of duty in 185!*, ac ci/iiiiiari'd with
" IS.'iH, has only been from 12.J to l.'JJ per cent., whiili can Fenreely lie deemed execssive."
And further on in the Keport, Mr. (iait again etunpares there per-<'entag(' to sh.iw how
little the rate of dutv ie\ied in iH.'ii) ex('ee<ls tlu' rates in previous vears. If the
rchitive rates of duty in dirt'creiit years, and under different lariHs, eoiiid he enrreetly
dediieed in the ninnner adopted hy Mr. (ialt, tiiere would still he the ohjectiun that
the proimrtion of dutv is ealeulated ii|)on tlic total imports, instead of upon the duty-
pay ing goc'de only. 1 his makes a eonitidcrahle dilferencu in the results obtaiiir. I, as tde

14.3

13.25

14.6

10.25

15.6

11.0

17.1

12.50

19.0

13.50

larger proportion r.' free good* in the 'atter periods has the eflcct of keeping down the

Ser-centage of the duty to the total imixirtd. Vy calculating the projioition of the
uty received on t':c dutv-jiayiug goiAa only, the results would be,

Per Cent. Per Cent.

Between li41 and 1848 10.4 instead of 10.25

„ 1849 and 1854 ....

„ 1855 and 1858 ....

1858 to 7th August

„ from 7th August - . - - -
and 1859, 9 montlis

Here then, inHtead of a diftereiuc, as shown by Mr. Gait, of only from 10.25 to 13.50,
there is an advnnce of from 10.4 to 19 per I'ent. And as regards the comparison of 18,')9
with 1858, the increase of 2 jierient. upon a 17 percent, general rate of duty, instead of 1 per
cent, upon a irenernl rale of 12^ per cent, would, in cifect, be a much heavier increase of
duty than is indicated by the relative dillcrencc between 2 per cent, in the one case and
1 per cent, in the other.

The great increase in the tai-iH' of Canada has been the raising of the duties upon
manufactured arli<'le8 from 12^ to 20 per cint., and from these articles, under both of
these Off valorem rates, more than two-tiiirds of the Customs Keveiiue li' Canada h.'.s been
obtained.

Ft is clear, therefore, that the results deduced by Mr. Gait, showiiig only a small per-
centage increase iu the proportion of the duty to tlie total imports since the duties have
been raised, does uot aftbrd any true indication of the actual augino itations of duty in
Canada. The rosults jhown by coinpiiliiig the projiortion of the duty to the imjiorts of
duty-jiayiiig goods. o,;'v afl'ord a better indication of the changes iu the commercial legis-
lation of Canada. No sound iDferciu'c as to the advance in particular rates of duty can,
however, be drawn from such iircinije.-.

The fact is itateiit that rate.-; of duties which arc levied ujion quite two-thirds of the
duty-paying iinport.< into Canada, have been rai.icd from 12J to 20 [icr cent., an increase,
as has been j)revioii.^ly slated, of 60 per cent. It is quite true that such an addition to the
rate- of duty may not prevent some increase in the traile of Canada, but it is, probably,
quite suflicient to chcik any con.sideiablc dcvcK)pinent of the import trade of the province.
Mr. Gait states that " The real increase of revenue was looked for from a revival of trade,"
but a revival to any extent is certainly made very uncertain by a considerable increase in
the rates of duty. The opposite policy is adopted in tiic Mother Country to promote an
extension of commerce.

The change in the system of duties from siieeific to nd valorem for certain goods, may,
with the mode of valuation adopted in Canada, encourage and develope the direct trade by
sea, between Canada and foreign countries, which, Mr. Gait says, was one of the objects
of the tariff of 1859. The trade accounts of Canada show that tea and sugar have been
for some years past almost entirely received from the United States, but it is difficult to
ascertain whether the trade has been directed to this channel by the operation of specific
duties, as stated by Mr. Gait, or by any facilities of communication existing in the United
States.

With regard to the article,' selected for an increase of duty in order to meet the defi-
ciency of the Canadian revenue, it is probable that the clas.s chosen by the Minister of
Fiuance was the one the most to be relied upon for affording an immediate increase
of revenue. Although this object may have been attained by the recent augmentations of
duty, it does not at all follow that the development of the commercial interests of Canada,
and of the British trade with Canada, will not be interfered with by the maintenance of the
existing duties on manufactured goods. As the Minister of Finance states that " The fiscal

" policy

y%»

CUSTOMS DUTIES (CANADA).

£■■

" policy of C«n*(la ha» invarUlily been govcrnotl bvconi<i<lcnition of the amount of revenuo
" rcciuirpd," and ax he conclude* his re]>ort l>y intimating; that " it will he a Kiibjert of the
" highcHt gratification to the jirepent Government when a ri'duction in the m'uIu of dutiea
" is po8»iblc," a nuNlification of the 20 jier cent, dntien may lie reafoniilily expected, if the
import trade of Canada should sufficiently recover fntni itit recent leprcMiou.

However little the Imperial (Sovernmcnt may think it right actively t<i interfere in
the financial Icgiiilation of Canada, the Kxecutive nuthoriticM in that I'rovince hIiouM bear
in mind that so lon^ ni* diKcriminatini; ilutiei> exir<| in the Krili^ii taritf in favour of
Canadian timber, the manufncturerit ol England will naturnlly be very sensitive to the
iniiMMiitionof heavier duties in Canada, when the increased taxation will more particularly
fall ou the BritiHli trade.

It may be right, in conclusion, to notice that at paifo fi of the l{e|)f>rt, Mr. Oalt states, '
that " the articles on which he pro|M>sed to obtain additional revenue were cotton goods,
" to be raised from 15 to 20 jkt cent., and iron, stoel, &c., from .0 to 1(» per cent."

But, by comparing the Canadian tariff's for IHAS and IH.'jH, the duty U|Hin linens and
earthenware would also appear to have been raised, in 1859, from 15 to '20 per cent. In
the tariffs in force in 185H these articles were mit specially eiiiinicrated, and the duty of
15 per cent, on " unenumerated goods" applied to tnem, and under that rate of duty they
appear in the Import Accounts for 1858. The tariff of IH.VJ also docs not separately
enumerate linens and earthenware, and therefore it is ]iresunied they must be uicluded
under " unenumerated goods," which ore charged with a duty of 20 per cent.

Statements are appended of the imports and expfirts of grain into ond from Canada ;
and of the exports of^the principal kinus of timber to the United Kingdom.

•1

Value (in Currency) of the Principal Kinds of Corn and Fi.Ofu Imported into

Caniida,

Other Kinda

ToUl Grain

YEARS.

Wheat.

Indian Com.

of Grain
and Flour.

Total.

and Fln'^i'fK ii th«
Ihuted Sulci.

£.

1850

28,484

0,433

8,378

44,105

43.117

1851

73,746

18,057

6,408

90,200

05,400

1852

10,238

20,506

4,706

00,570

40,740

1863

3,088

01,031

11,022

77,110

70,-i05

1864

84,728

177,735

1H,105

23(1,028

226,832

1835

305,406

280,130

443,716

1,080,258

1,077,488

1866

423,523

200,676

201,006

804,104

8;R,415

1857

50.'),»44

180,100

360,278

1,140,031

1,120,802

1853

411,872

08,164

213,041

723,077

711,400

Value (in Currency) of the Principal Kinds of Corn and Flouk Exported from

Cana<la.

Barley
and Rye.

Other Kinda

Total Grain

YEARS.

Wheat.

Flnnr.

of Grain

Total

and Flour to the

and Flour.

United Statei.

£.

1850 •

268,034

7,767

086,706

76,701

1,038,208

661,633

1861 •

171,705

21,557

670,820

67,550

031,727

471,308

1852 -

355,457

10,337

080,378

61,220

1,145,401

780,002

1853 •

772,610

6,505

1,062,200

138,800

1,078,174

1,212,706

1854 -

624,534

23,580

1,100,175

04,023

1,802,212

1,307,110

1855 •

1,482,217

146,807

1,450,480

135,032

U,2 14,438

2,000,201

1866 -

1,744,461

t-J,"20

1,502,452

235,177

3,708,010

2,034,605

1857 -

607,403

171,016

1,134,411

183,043

2,166.083

1,724,603

1868 -

688,774

263,000

766,452

328,830

1,037,085

1,400,204

400.

<^^

\y '

P\PRHS RELATING TO

Value (in Currency; of the Principal Kindn of'TiMHKU* £i|H)rlod from Canada to the

I'niM Kinqdnta,

YEAKS.

VALfE.

YEAHA.

VALUE.

•

18.00 -

18.01 .

18.02 -

18.o;{ -

18,04 -

£.
727,9fi;»
!l.1,»,O,08

!t;»7.8,oo

1,482,181
l,(i7.'»,40l

18.05 -
I8.0fl -

18.07 .

18.08 .

£.

It8».().1|

1,. 178, 70.5
1,(594,9,09
1,218,842

•

Including Pine, red and white. Deal »tavc8. Elm, nu<) Oak.

% ,"•

'*;^'l

V; '%

H'l

No. 6.

Gnvcrnur Sir Ed-
mund Haad, Dart.,
\o the Duke of
NewcMtle, K.o.
11 April i860.

• Page 87.

(No. 32.)

No. C. —

Copy of a DESPATCH from Governor the Right Honourable Sir Edmund
Head, Dart., to His Grace the Duke of Newcastle, k.o.

Government House, Quebec,
My Lord Duke, 1 1 April 1860.

Referring to your Grace's Despatch of :.\d January, No. 8,* I have now
tlie honour to enclose a copy of a Minute of the Executive Council of Canada,
approved by myself.

I have, &c.
(signed) Edmund Head.
His Grace the Duke of Newcastle, k.o.,
&c. &c. &c.

Enclosure in No. 6.

End. in No. 6. CoPT of a Report of a Committee of the Honourable the Executive Council, approved
by His Excellency the Governor General, on the 16th March 1860.

The Committee have attentively perused the accompanying Memorandum, dated 13th
March 1860, from the Honourable the Minister of Finance, submitting certain observa-
tions on the letter of the Committee of Privy Council for Trade, dated 17th January
1860, and upon a communication from the Statistical Department of the Board of Trade,
transmitted by his Grace the IJuke of Newcastle by Despatch of .31st January I860; and,
concurring in the opinions exjjressed by the Minister of Finance in his said Memorandum,
respectfully advise that a copy thereof be forwarded by your Excellency to Her Majesty's
Secretary of »State for the Colonies.

Certified,

(signed) H'm, II, Lee,

Clerk of Executive Council.

The Minister of Finance has the honour respectfully to submit to his Excellency the
Governor General in Council certain observations upon the letter of the Committee of Privy
Council for Trade, dated I7th January, and upon the accompanying Memorandum from the
Statistical Department of the Board of Tradi;, transmitted by his Grace the Duke of New-
castle by Despatch of Slst January 1860.

The Minister of Finance finds that, on full consideration of the subject of the late Canadian
tariff, my Lords " think that the justification of this measure is to be found in the financial
" exigencies of Canada, and the difficulty, if not impossibility, under the peculiar circum-
" stances of the Province, of raising the necessary amount of revenue from any other source
" than the import duties upon manufactures, which enter largely into its consumption. Upon
" this ground my Lords stated, in their letter of 20th October, that they were not prepared
" to disapprove the course which had been taken by the Government of Canada in framing
" the TanfF Act of 1859. They think that the explanotions given in Mr. Gait's report of
" the principles upon which it was framed are, on the whole, satisfactory."
^, The Minister is gratified to observe that my Lords have thus, on roconsideration, with-
drawn

%*^

"oiincil.

llency the
1 of Privy
i from the
: of New-

CUSTOMS DUTirS (CANADA), j,

drown the PtrririR esprrHdioiiM ofiliiniiiiroviil i-onlainoil in the I>ofi|intrli from hi« Onirr the
Diiki- of Ni'wcni>tlc <>r I'ltli Auffiir<t liiHt.

The iiniMirtaiit iMiint, in whirli tlio Cniinilinn (inviTiiincnt rutfidcnil iliiir |H.lii'N to ha\i'
been mii'iimlfr»'tiK)il, liavin); ' ocn tliii» nctilcil, ii in tint i)c«'ci.r<iiiv tu iimldnjr ilic iliMMir-iini
uiM>n tlctaila ; but the Minister of Fiiianri' In-N It lii'* duly tiimlxt'rt ii> tM.ini' d' ilic iiriru-
incntH lined by my LonlH, lent the nh^rnec of uutii'c kliuiild imply a«iM.-nt on hiit [Ntrt.

My Lonlx itatr thnt " tboy do not roiinir in thinking it Mboiild Ih; a miLjcct of ;(raiifi)'a.
" tion to the ('nnadinn (io\ eminent, if it \* ftniiid thnt the diitie« iiloohitelv rei|uired tu
*' ennlde them to meet the (■M^ii;;ement.'< of the I'roviiire ithniilil incidentally benefit aiui
" cncoiirn^e the ]inKluction nt iioine of iniiny of the nrlielea whieh nhe now iiii|Hirtrt: on the
"contrary, my LoriU iirc of oiiinion tlint, Rbould thin ineidental etleel be priMliieed bv the
" o]K;ration of the preitent tnrin', imdbrnnehcii of native industry b« erented, which roiilil imt
" have equally proi>|>ereil without protective dutieii, it mity be found, when the finnncini
" eondition ot the I'roviiiee ini};ht enable the (ioverniiient to redueu their iiniMirt duties, llmtn
" clacMof iiitereHt« will hitve );ro\vn up in dependeiire ii|Nin tlMLtediitieK, which will iiii|Nii>c a
" very xerioua olmtnclu in the way of n return to a cnundci' (iiiiuiicrcial policy, and that a
" oyntein of taxation nihutted for the leijitiinatc object of revenue iiiny bu continued for the
" niierhicvoui) ])ur|io8e of protection. "

In thid eatic it appears tu the Minir<tcr of Finance thnt my LonU object ton i'o<iill
which, iu the fir»t inntancc, miixt neceKi<arily be advaiitii;;<'cin!< totlic country, from a va^iio
apprcheuHion that, in the uncertain future, it may prevent a iliniiniiticMi ofduticH on niaiiu-
faetiired goiMlx. In any (duiitry it would hcciii dc-irjible tn \ary the cin|il<iyiMcnt^ for
capital and industry, and thuK iliminiF'li, if imt altogether |ircvcnt, the diKusterH whiidi
attend a failure in tlic caxc of a ])rople dcpendiii<; alto^rctlicr <iii one means of subsi'-tcnce.

The firct eHtablii«hinent of even the lower jfriidcB of iniinulii(,nin'H is »lwiiv-< attended
with difficulty ; and investment!* of thi»< nature, when once in operation, and Inn in;; m'cmiciI
the ><killed labour required, will be able to maintain tlicmMelves, even in the face of a
gradual future re^luctum of duty. It may alno Ik- ob->erve(l that if the coarser articles Ik;
manufactured in any country, the larj^er ability will it |k)sscss to iiu|Kirt those of a more
cxpcDf'vo character. A larf;e part of Canada in not capaldt! of pn«lnein^ a snrplns ol'
cereals lor cxjiort, und it oii^rht, therefore, tu be a subject of con^rratiilation if, witlioiit
im|ioo'.iig any duty for the piiriio«e of protection, ciiiploymeiit ci'ii b(> found f r tlio-o
lalxmrin); elaD^es who now seek it in the I'nited Slates.

The Miniiiter of Finance (h>e.i not therefore share the apprehensions of my Lords, but
believes that, hnvinp; the advantage of the expcrieiu'e ot'tlie Moibcr Country, (Canada will
be enabled, in the future, to Bhajic her commercial policy co as to i^ivc the freest seope to
the inilustry of the ]ieople.

In the Afcmorandum from the Statinticnl Department of the Hoard of Trade, it is slated:
" Iu replyinp, in the first place, to the openinj^ coniplaint of the Memorial of the ' recent
" ' odvnncc of import duties in Canada,' dntcH are overlooked by Mr. (ialt when he eon-
" nects this ' recent advance ' with a tariff of August \H5'J, and observes that no advance
" whatever was made on Sheffield goods by the Act in question. That this Act could not
" be the one in question is jirovcd by the Memorial being dated the l«t of August, and
" the last Tariff Act the 7tli of August 18.59, and im the 2(ttli ol the |irevioiis month of
"July, the Memorialists had an interview with the Duke of Xewciistle to represent the
" grievance set forth in the Memorial. The ' recent advance,' therefore, must have had
" reference to the Tariffs of IwrjO and 185H."

In this case, it is submitted that the mistake will be fimnd to have been originally made
by the Board of Trade, and is again repeated in the above extract. The dates of the
Memorial (1st August 18.59) and of the interview with his (Jnice are correctly stated,
but the last Tariff Act passed on the li'Ji] March IH.i'J, and tlu! previous Act of the 7tli
August 18,58 ; and the fact that the Memorialists from Sheflicid a]ipeiided to their Memo-
rial an extract from a ("olonial paper of ,Fuly, animadverting ex])ressly u|)on '• Mr. (ialfs
Tariff," shows that they must have been aware of its being in iim^e bel'oro the date of the
Memorial.

The Minister of Finance is gratified to observe that, as regards the various jioints com-
plained of in the Memorial from the Chamber of Commerce, the lioard of Trade is of
opinion that they were not well-founded, and that " 'J'liere does not appear to be much
" ground for apprehending any serious injury to the trade of Sheffield with Canada, from
" the recent increase of duty in that Colony."

Exception is taken in the Memorandum from the Boai;^ •'' Trade to the general state-
ment made by the Minister of Finance, that the " Policy of Canada has been in .lecord
" with that of^the Mother Country, as far as differing circumstances would iiermit ;" and it
is contended that, inasmuch as England reduced her datics on foreign gcxKls to a j)ar with
those levied on Colonial, while Canada increased those on British goods to the rates levied
on foreign, a material difference in jioliey existed. In reply, it may be urged that the
principle in both cases is the same, and also that the operation of the change iu ICngland
of reducing the discriminative duties which existed in favour of the Colonies, is exactly
similar in effect to that adopted by Canada, in increasing the duties on British goods.
The result is to do away with exceptional advantages on both sides. The amount of duty
levied in either case does not affect the princij)le on which it is imjiosed.

It may not be desirable to enter upon any discussion as to the repeal of the Navigation

Laws, or the advantage whieh Canada may have derived therefrom ; this step became

absolutely necessary, as regards Canada, after the previous legislation of Great Britaiu.

But it is quite certain that, as regards the trade of the Great Lakes, without reference to

400. F tk«

.«*

I«^''

3«

PAl'ERS UEIATINO TU CUSTOMS DUTIES (CANADA).

the genenU question of the cnMliriK trwlo of tlii* C'oniinrnt, the policy of Great DriUin
liM Ik'i'ii ..lore fnviiimililc l<«tlic citi/ciiK of tlic I'liitol State* tli«ri to Canwl*.

Tiiu Mpiiioraniluin nl' tliv Konnl of TpmIo rnlvn at roiii>i(lfnilile Icnath into the diacu*
lion of thn rorrvi'ttirM of thu iikmIo in whi. h the Minintor of Fl'ianro ha* citahliiheil tlia
amount of lajiiktion in Camilla, at iliHvrent |wriiMU; an<l it iit i-ontcndnl that, in thr 6nt
plai'i', the ini|Kirlii an<l cxiiortrt of corn nhoiiltl he pxcluile<l from any calculation, itnd,
•t'Conilly, tliHt tilt! correct rvmilt can lie urrivcil at liy takiii)^ the <liity-|>avin); ^mk1« only.

Ah rcfjicctH the cxclunioii of cum from thu calculation, it in i>talc<l correctly in the
MciMoraniliini to arii<v frnin iho varicil |ir<Mluciioh ami r«'i|uirvincnti< of particular ami
conti|{iioiiii liK-aliticH : liiit no far from it rci|uiriii^ thin article to bu pxcluilcil from the
coni|mrntivu »tntcinvntii of trailc under tli(3 HVKiem of free trade, it i« plainly nccciwary to
include it on the very );rounil ntated hy the Itoaril of Trade ; liecnune, had the duty been
maintained, tiiu cxcchh of corn |irodui'ed in one ticction nf Cannda would have hien arti-
ficially forced into conHiiin|ilion in another, at increuHcd cont, or a cnrrcMiKuidin^ quantity
would hnvo hcen im|Nirtc>d from the t'nited Stuten, and would have jtaiu duty — in cither
caou ciiiiMin)r a hiirthen u|Hin the conuiiunity. Kvcii cxcludinft corn trom the free ffiKxb,
it iit admitted that hetween 1H4!> to 18.'J4, and 1H22 to IH.^H, they have incroaaod from
G to If) per cent., which Hutticivntly indicntci* the dircctio.'i uf the policy uf Canada.

Iliit the Memoraiidum demaiolH noi onlv thu vxcluniun of com but that of all free
|{0(Mlit, and oderH a calcidalion liancd uj on tliv dMty-i>:>ying goodo only, whereby it is con-
tended that thu duly baa been incrcafci from 1()'4 '.> lit |>crcont. I>etween 1H4I and 1859,
and from I7'I to ll> [icr cent, by the lac Ciiiiad).a tArift', instead of fnm lU^ to 13| and
from 12^ to \'.ik per cent.

That thin mtMlu of calculation Ih fallaci<.,.n may be shown by simply pointin|:( out that, if
the Uoanl of Tra«lc be correct, the LcgiHlaturu of Canada could, by extending; the Customs
duties over the free piodn, actually ruinu the same revenue, while at the name time thcjr
reduced the duty paid from 19 per cunt to 13 J, as stated bv the undcmi^cd, which would
manifestly bo a complete delunion, as the amount levieii on thu couHunicr would rem*in
the same. It appears evident that ho loni; ah CustoiuH duties arc leviud, the gross amount
collected must be subdivided over the entire im|)orts in estimating the relative weight of
Customs, comparing one year with another. It docs not abwdutely settle the amoimt of
taxatiim paid Ity thu people, ns that must depend u|)on other fiscal burthen* aa well, but
it certainly forms a correct mciisurc of the amount levied u])on the imi>ort trade.

The Board of Tr»du rest much weight u|K)n the fact, that manuiacturcd goods have
been raised from 12^ per cent, in IH.'ie, to 2U pur cent in 1859; but they do not advert
to *he fact that between the same periods the duty on sugars, molasses, teas, and a varietv
of other articles had been greatly reduced, and in some cases removed altogether. It is
quite true, us stated in the Muinc ..ndum, that nn increase of duties must operate against
an cxtenniou of commerce ; and the undersigned admits, that if the duties on manufactured
gootls were removed altogether, the consumption of Canada would be enlarged ; but the
same remurk applius to the tea and sugar duties in Great Britain, which, in like manner
as the C'unadian duties on goods, arc mniiituincd from the necessity of procuring income.
The point to bo desired is evidently to fix such a rate of duty as wdl not, by a diminution
of consumption, defeat the object of obtaining revenue, and the uudersigned contends that
this point iias not been exceeded in the 20-pcr-ccnt. duties.

The Memorandum adverts to the increase of duty from 15 per cent, to 20 per cent on
linens and earthenware, and appears to have been written under the iin])ression that the
Minister of Finance had stated there had been no increase in those articles. A reference
to liis report will show, that while he spoke of " Cotton, iron, and steel, &c.," as the prin-
cipal articles upon which increased duties were levied, he did not by any means state them
to bo the only ones.

The conclusion of the memorandum states : —

" However little the Imperial Government may think it right actively to intervene in
" the financial legislation of Canada, the Executive Authorities of that Province «hould bear
" in mind that, so long as discriminative duties exist in the British tariff in favour of Cana-
" dian timber, tlte manufacturers of England will naturally be very sensitive to the imposi-
" tion of heavier duties in Canada, when the increased taxation wul more particularly fall
" on the British trade."

On this it is only necessary to remark that the British tariff is now proposed to bo
altered so far as to remove the discriminative duty in favour of Colonial timber. The
Minister of Finance does not presume to question the propriety of the British Government
arranging its tariff in the mode considered most advantageous to the British consumer ; but
it may be regretted that the intention to effect this change hod not been announced before-
hand, BO as to prepare tiie Colony for it, as the timber trade is peculiar, and requires
preparation many months before the timber can be brought to market

The Minister of Finance trusts that the explanations which have been afforded on the
subject of the Canadian tariff will have removed all misapprehension from the minds of my
Lords the Committee of Privy Council for Trade, as to the policy of Canada being in any
way opposed to the interests of the emjMre at large, but has been adopted with ^e view of
maintaining unimpcachcd the credit and good faith of the Province.

13 March 1860.

Bcspectfully submitted,

(signed) A. T. Gait.

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