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Maps, plates, charts, etc., may be filmed at different reduction ratios. Those too large to be entirely included in one exposure are filmed bog!r>ning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: Les csrtes. planches, tableaux, etc., peuvent dtre filmAs d des taux de reduction diffdrents. Lorsque le document est trop grand pour dtre reproduit en un seul clichd, il est filmd A partir de I'angle sup^rieur gauche, de gauche d droite, et de haut en bas. en prenant le nombre d'imeges nAcessaire. lies diagrammes suivants illustrent la m^thode. 1 2 3 4 5 6 32X q^v (briv. CoVWol^ Gff;U & ^M 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. t s'^-' it I if 8 ; .' H m I !t' tl ' f I [ 2 ] 7, ».'/ >: f J, ] 1 )t\ H iW . ■ t If ■ iViyt/l 10 i(i' »-iM >* SCHEDULE. '1 hu n\h " *^'\ I ,',iii i Sir Edmund Head, Bart , to Sir E. B. Lytton, Bart. No. 40. 26 March 1859 Page. 3 2 The Duke of Newcastle to Sir Eduiund Head, Bart. N-). 23. 13 August 1859 7 3 Ditto - - - ditto ... No. 57. 5 November 1859 - 9 4 Sir Edmund Head, Bart., to the Duke of Newcastle. No. 118. 11 November 1859 11 5 The Duke of Newcastle to Sir Edmund Head, Bart. No. 8. 31 January 1860 27 6 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//at 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 l! :'ii ISL U Vict<'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' lboiii!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. 40 per cen' 30 i> 25 n 16 )» 40 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 rteIe. V with the ■jRii. 0. 31, 'uKtoniH in r thr mine, xi>r(>iro- 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 ; |>-, and ili-\olioii;i| Ituukii • Hru'iH in bars roils, iinr 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."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{ 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 ---..-. A3 Free. t I :1'>' )• i I ^1 ■m ' '■ J? m ;^ f": I. 11 PAPERS RELATING TO 'I'ADi.y. of Frc'c UootU — cnntinutd, ( uikttiHxl, or til'- l>ark of lliu rorkwoo!« ( <iilvly in dyeinf; Dye Hill)!'!!, viz. : bark, lierrio*, driif^, nuU, vorted 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. A4 s" PAPERS RELATING TO 'K ■ ■->] t 1 \ 1 !' 1 ! 1* ) ( . 1! . 1 1 i [ y 1 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 manufactureur 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!» nluti«M lm« nr «ijjTi^l t'lT morr t" (>p runiniciiri'il. W'r nri' nwnii' thai tin- H«<';il ni'<'f<. 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 ■« >'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 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, 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|iiuid more to diitipM alone, the ireiirou);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. to 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 tl it; lit PAPERS UELATINC. TO if m ', li fl hi rf :i;i r AmoiiK thrmp anirlc8 liuMc hip It r tlie )ii<>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'anan. 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 iisei>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 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 if 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(■ 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 far m differing circumstances would pMTtjit. A I t.i'r'iii' lit i.' Iicnwiih apppnderinciplei« 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 trocity 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 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- ulit tln> fidvcniiiicnt ifJKeyfind that flic Jutie?' abwilutfly ro(iuirc(l to meet their cnpaj^^ments 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';;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 ""•■ •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|>lutioii 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.iy 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!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). If i« b«ith thf jiriin'iplo ami jiriu-tii-c c«l' (ircal Itritaiii, iiii|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'liri> offinaiu'u wliiii, in Dnlcr t<> |>.iy her just tlclitr, !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,()(H) /. gtcrlini; (ititaiui-t<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 «lerivetion8 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 gooi I, 2o „ . . M 1 ,, ,, Over 25 per cent. includ ing spirits - - 9i 4 ,» Tea, sugar, and molasses Ci U j» 100 100 ), 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 II I 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'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 |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(;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 d. 2 4 4 11 11 10 DVTT. FxBK Omtns. 1841 IS43 I84« 1844 1846 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 - 6 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 3 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 1 4,700,372 11 11 2,448,381 13 2 1866 1866 1867 1868 0,021,542 7 10,-, 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 HO *S 10 per cent. i,r28,73a ^:- 300,303 27 »iS 80 - ditto 10,784,ai>! 11 3,137,306 78 •05 «6 - ditto 31MI7 u 100 64,040 36 1 ** IM 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 04 00 Free goods 7,002,413 «».;:- ~~ _ Tot.* I. - - DoU. Se,306,Si3 100 3,6ue,H03 73 100 1 Inipeelor General'ii Office, Castomi Department, Quebec, S3 October 1860. -^<»*T,I. i' d. 4 4 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 $. \ 1,132,295 63 400. C2 This iT if •>•* Si'^! r*si 1 i 1 11 i i f ' ■M 90 PAPKRS RELATING TO Thii) •tatemcnt ini-ludcH, liuwvvcr, acvcral largo item* both ot ex|>«n(lituro and income, whirii do not jiroporly helonj? to the onlinary norvice nf the year, and it i» therefore necet- ■ary to fumiih an analyii* thereof, viz. : — ■: Doll. cU. DoU. tit. \ Doh. ft$. 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 36 8ei)(norial Fund .... 2eH,3AI 37 Municipalitie* Fund . . - . 844,400 78 Debenture* iiurcba*ed for trust fund* • Indian Fund ..... 370,940 67 113,030 28 Orammar School Fund ls,4ao 91 Educational Fund, Lower Canada 90,740 89 Sobaidiary tinea 3«S,A78 03 Collection of truit fundi 14,810 00 MiKellaneouN 8,904 4S 1,410,037 10 1. ^ Payments in Redemption of Public Debt : ■ Delicntnrcs redeemed 304,763 84 • 1 Sinking Fund for Imperial Loan • 434,880 80 039,034 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 08 Advuucet lo railways and others • - • 103,840 33 004,013 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 87 Seignorial tenure ... 040 61 Municipalities Fund - - . 123,018 76 Unconimuted stipends - 10,008 00 InU. ct$. I,fte7 44 381 81 18 03 78 79 The CUSTOMS DUrilH (CANADA). il The (6n'|/oiiii' \ii.ilya'<< u'lvrt [hr Inll.iwinif Itciuhfur til.' Onliiiiiiy H»rvlre ;in'l Irii'oiiie «.ri««8:— Etfifnililurr Ki'vi'oue DoU. 1 1$. 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>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»|j int'rfori-il, Iriiiii tlic fiiiltirr nl' Ivi'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«'.'< 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 > u'I\ituc««/». r/j. !' if 1 ,s 4 i. m 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};(«mrcfi> ut' the prf)Vince. liaK, however, liiM'n rr<'nlt'enditure. OUUINAIIT ExPKNDITUnE. TtiK emtablifhment of the Ocean lino of stcamiihipi) lia« added an annual eh;irie 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 (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|iriii;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:liliiit; u mvi'tnic, aiiuivoy 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. ./«. \\ \ \ > 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< 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; anI 66 1,810,989 01 409,114 69 1,401,874 32 VII t .1 M The 400. C4 ^^ ii!'!' ? 'i'V'' 24 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 51 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 32 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 35 2,766,146 40 2,817,057 92 1,610,267 34 1,326,346 21 22,675,024 22 1,982,039 70 3,752,843 22 28,409,907 - - 14 24,430,975 17 621,726 68 23,809,248 49 - - 4,600,658 65 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. 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). 95 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 benelitesition 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 - 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,000 00 225,000 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 ti .oc Geoss Revem £ ■ in Eitimttc fur lWi9. ell. Dolt. C/l. • 70 5,200,000 OO ) 22 200,000 00 i 76 .150,000 "0 1 15 150,000 00 > 68 400,000 00 } 1)8 15,000 00 ) 70 00 00 ) 21 46,000 00 ) 80 120,000 00 1 41 75.000 00 S 22 42,000 00 i &4 21,000 00 3 75 CO 00 i 24 35,000 00 ) S8 60,000 00 ) 40 8,000 00 1 77 10,000 00 40 9,000 00 13 .V),000 00 26 6.000 OO 39 200,000 00 27 liO,0OO 00 09 10,000 00 OS 25,000 on 00 12,000 00 01 00 00 - 70,000 00 40 170,000 00 33 7,734,000 00 'i^^' CUSTOMS DUTIES (CANADA). a? — 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. i ^^' "A iH ' . 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, 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 buiiii,-< not fnllow tlntt Uriti.-li ;;i>ii
  • 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|ictitiniiwii."' Tlie fart ii>, Mr. (ialt :n\iU, '• tiat certain ;^imhI> urr l)i'M;,'ht " in the Slieflield market, nnm 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 ^^"^ 3" PAPKUS RELATING TO !1 [up I m n »!! if 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. f. £. 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 producitv 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> , ^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.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 Uniteer 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.-, iinort 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 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. 'I •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 9 I. Value (in Currency) of the Principal Kinds of Corn and Flouk Exported from Canaofi|intrli from hi« Onirr the Diiki- of Ni'wcni>tlc <>r I'ltli Auffiirn 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 Minirerve(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 (M .«* 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; anavin); ^mk1« only. Ah rcfjicctH the cxclunioii of cum from thu calculation, it in i>talcd 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. I 13 March 1860. Bcspectfully submitted, (signed) A. T. Gait. iA\ >fk> ^i ^h ? ^ lif ^2 ' n o a n cr "^ O. o » « B s gj I 3 St 2 1 i- o i s s r a » S" i OS.r5 1 o o 1. g s- » g §• a 1 o o g> « •*l s R* J- f 1 i 09 d H 1-4 W CO ^^ O >