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Sir:— The Report of the Agricultural Meeting in this Diitiict first appeared in your journal in November last, in which an entire change in our Commercial Policy was urged with a view of placing the Agricultural on an equal footing with any other existing interest in Canada, as well a« on an equal footing with the Agriculturist in the Western States. It also recommended the adoption of such measures as would attain the foUowing objects :— First — The free admission of all the Products of Canada into the Markets of Britain. Second-^The free admission of all the Products of Canada into the Markets of the United States Third— The equalization of our internal or direct Taxes, and Fourth—The removal of all duties on imports as soon as practicable. Each of these separate and distinct measures have been before the public for some months, they have been alluded to in general terms by different Editors, but not a single reason or argument has yet been advanced against either. The attainment of the objects advocated in that report are, in my judgment, essential to the preservation oi \his Province as a Colony m« Great Britain, as well as to the prosperity of its ini::^bitants. It is, therefore, r rl / IV. ^ •> ■' • ... • .';< ■ V i; ii; 1 1 : .■ ■ .'.• '■■.•.' ill > i. f: ' t>'-:ii;!;;. •»t. ; ■vv.\ iu< u.'ir ,i'>..' I .;'■* •• ■ V i;;,''? :,,'•'•■ .•>>i\, \j\ !.■■-,.;» ;/.;'{' V' :< I i T' ,..;■;.. . v' t ■• ■• '.:'..•; (u.-, , J | . j.-- ■'V V -?»• -t' <.:> .\\ i.:\ i.-iI'Mi'i; I, •:•;■: ■'■■;..; • >!; , .:J,,i((I ■;<{!(« ,,. ; • ri *■: j /;■;; ,( ^■' • - ^ ■ .; ♦^' ' ,(■>' ■ s )•■ ■ -■>,,, .' J .■ K. i" i A', -t >•■ ti' .■■■ >,::A\i\" <■'■- ■■' '«.-' I'? \iv'i\;-\-' J;!'i',' .. nge existii. me, I will which the Id first be ces paid by labitants of ' here than that the te Govern - I with jhsMl bew*^thatJ ! is placed \ than the I duties on RRITT. * •' 1 ' ; . I * i ,:!.,. , TO THE INHABITANTS OF THE DISTRICT OF NIA^GARA. Gentlemen: — A. K. BooM£R, Esquire, the Secretary of the Agricultural Society has kindly permitted me to publish the following documents. On the 21st October, 1846, W. G. Edmundson, Enquire, Secretary :€/ the Provincial Agricultural Society, addressed a Ci* ;a!ar to the difle- rent District Agricultural Societies, containing the follow;ng extract : — " As it is important, from the recent changes in the Commercial Poli- cy of Great Britain, to place the Agriculturist in Canada, in as advanta- geous a posirion as the Agriculturist in the United States, you will enquire and collect from official public documents, in the nearest County adjoining your vicinity, the amount of local and state direct Taxe?, as well as the amount paid by duties on imports or from any other source, and compare the same with the amount paid in your District, that they may be contras. ted, and our relative position fairly and fully understood.'"' i li G On tho 11th December, the following letter was addressed to Judge Hotchkiss, of Lewjalon : — "Sir : — Having received the within Circular (alluding to the above extract) from the Sec. and Tres. of the Prov. Ag. Soc, may I request you to furnish me with any public documents, published in your County, con* taining the information required. Yourob't Serv't, A. K. Boomeb. Sec. •w-the-WiavIWstKet-Ags-SeeietjFi" ' ^SiTiS^. Lo'tft. To which the following reply was received:— « Letciston, County of Niagara, State o/N, Y. "A. K. Boomer, Esq. Sir : — Yours of the 11th Inst, was received this day. In reply I enclose you the only Public Documents I can at present obtain. The first is the Comptroller's Report of the State of New York, for 1844, in which you will find in Table 9, the amount of Taxes collected in this County for the preceding year 1843, as follows : — Amount of State Tax, " County do. Town do. )) $4,926 88 15,729 78—20,656 66 8,888 15 Aggregate of State, Town, and County Tax, $29,544 18 The second contains the items of the expenditure, audited by the Supervisors of the County. The third, items of Town expenditure, examined by the Auditors^ i h e To w Ki, and expended by the Town Clerk, $529 00. The fourth, items of the amount expended by the Superintendent of Common Schools, in the payment of Teachers, and one-fifih on the estab* lishment of Town Libraries —in all $815 80. Exceeding the amount paid by the twelve Townships y/tUnak compos^^vw the County, which to make up the amount stated in the Comptroller's Re* a port or#W ) i i flia «4t* woula average $740 68 to make up the exact amount, the items from each separate Town should be produced, but this I appre- bend is sufficient to give a clear view of the total amount of the Taxes paid by this County. Your ob't Serv't, WILLIAM HOTCHKISS." *Il is unnecessary to give the items. of OKpondituroAf Towi > » which make up the aggregate of $8,883 15 ns mind e d to in Mr.Hotehkis B 'fl I e tt » > . to Judgo the above quest you inty, con- MBR, Sec. Lo'tft. itj^ i^^-bi^A,^Z^ S t i l e Ta« t» f- : y. In reply 1. The 1844, in 3d in this 66 15 18 >d by the uditors ^ endent of the estab- ; compos^ii^ ller'sRe. J' t amount, } I appre- e Taxes STATEMENT 01 iHO iioms 01 n^xpencmure tor vtiniy K t i i e ia« o i uji P ^ i/^ %L4^ <^(J\^ Mill to the Dollar upon $4,926,885. ^ y^, Q^£^ ^f. The amount of Assessment of real and personal property* of the County, ^ ^ . t* ; a (lA0a Claimant — Nature of claim — ArtCt claimed — AmH allowed. Names of Claimants, different services, for the support of the Poor, $8,362 00 For Patients in the Asylum and Insti- tute for the Blind, • - . 858 00—4,220 00 For expenses of Court House and Payment of the Officers of Courts of Justice, • 9,506 11 For support uf Schools and other Services, 1,051 46 For bounties for Wolves, Collectors' fees, and other Miscellaneous Items, • • - 952 21 — 15,729 78 Total amount of County Charges, $20,656 66 The foregoing is a correct list of the accounts audited, and allowed by the Board of Supervisors of the County of Niagara for the year 1843, together with the amount claimed by each individual, and the equalization of the assessment rolls by said Board. V. SPAULDING, Clerk, Board Supervisorty Nia» Co. Lockjtortj nth Dee.^ 1843." 3S. >> !tt9 which I !l ' The official yearly Returns of tlio amount of Taxes coUecled by the Inspector and the Clork of the Peace, will be found on the Journals, from which ""^ '"-- ''""~-" •" ' "* >w,.--^v the following comparative statement ^ di£d*XxuiL TABLE No. 1. . •, Amount op Local Taxes collected in 1843, In the County of Niagara, Slate of New York. In the District of Niagara, Province of Canada, State Tax, See Comptroller's Re- Provincial Tax, See public accounts port, j in Journal same year, Rcturnof County expen. : Merchant Shops, ses same year, $4926. Jnns and Taverns, 88, or - - £1231 14 5 Stills, Kxcess against the resi- iBeer Houses, dent m Canada, 1310 10 7 Pedlars' Licenses, £2542 5 County Tax $15,729 78 District Tax, or £3932 8 10| Town Tax 8888 15 or 2222 9 See return of Clerk of See return of Super- j the Peace in Journals £422 10 1702 10 172 10 . 104 15 140 £2542 5 £7305 13 3 iA^ -. 3 7 Dec. 5th, 1843. £7305 13 2| £7305 13 2 f J: In 1844. State Tax, - £1231 14 5 County & Town Tax, 6129 9 7 Bal. a'gainst Canada, 2505 13 OJ Provincial Tax, District do. £9866 17 OJ In 1845. State Tax, - £1364 3 9 County & Town Tax, 6287 15 5 7651 19 2 Bal. ogainst Canada, 1153 2 llj £8805 2 IJ Provincial Tax, District Tax, £1880 6 7977 11 Oi JS9866 17 01 £1685 10 9 7119 11 41 £8805 2 li 9 Heeled by ! Journals, igarct ia, ) c accounts >422 10 1702 10 172 10 104 16 140 2542 5 7305 13 2 7305 13 2 389 6 977 11 Oi 666 17 Oh 85 10 9 19 11 41 I In 184r>. State Tax, reduced, £738 15 County and Town in- creased, • . 7122 £7860 15 Prov. Tax, C No returns— the appen- •^ dix of the Journal for Dist. Tax, ( this year not received. Militia Tax on Quakers, Menonists and Tunkers. Marriage Licenses. The population in the County of The population in the District of Niagara, In 1840 was - • 31,114 1845 - . • 34,348 Asssessed value of Pro- perty in 1844, $4,026,. 885 or j61,231,721 5 Niagara, In 1840, - . . 32,584 1844, latest return, - 34,348 Assessed value of Pro- perty in 1844, £617,035 1 4 TABLE No 2. Comparative Amount of Import or Customs Duties paid by the Inhabitants of The Western States of America. ARTICLES. Free. Tea» • • . • Green Coffee, Ground do. - - " •Salt, manuft'd in Western N. Y. American Manufactures, >} And Canada. ARTICLES. Tea, Green Coffee, Ground do. Salt, Impl. duty. 1 5*cw 5« » 2«6d Prow. duty. 1 1 4 American Manufoct'rs, 7 6 Total du- ty, S'g. 2 1^(2 pr lb 4ip " 2s 6d bbl 12 pr cent •There is a duty of 20 per cent, or Foreign Salt imported into the United States, and no duty when imported by sea into Canada — the opera- tion of which is to relieve the people of Lower Canada and the Western States from this duty as the article is manufactured at Salina, although it subjects the U. C. Farmer to the amount above quoted. t 05 2 H B ^ 10 NUMBER 3. Statement of the Amount collected in Canada from Duties on Imports in 1845. Gross Amount of Collections, page 6 Public Acc'ts, £449,960 1 7i Amount from Sea, Quebec and Mon- — treal, Net, - - • •' £287,162 13 8 Lower Canada, Port of St. Johns, £40,015 3 9 Do. ).rom 16 other Ports, 7,725 6 6^—47,740 10 2 J Upper Canada, Hamilton, Toronto and . vt ■ ^ i. Kingston, - 61,481 Do. 39 other Ports, . 31,104 15 6 92,585 15 6 £427,488 18 lU - - • 8,487 11 2J 'i^uuiHjL u^ A. Various Redactions, « Net revenue, page 7 Public Acc'ts, / • • £419,001 7 8J NUMBER 4. • ' EXPENSES op MANAGEMENT. For particulars of Salaries and other Expenses of Col- lection see page 60 Pub. Ac'ts. - - £30,997 17 II Grant in building Custom House, Toronto, page 33, Grant £2500, expended £1161 Page 15 shews amount seizures, - 2649 " 63 paid Henderson & Kirby, - 67 18 7—3,877 18 7 £34,875 15 8; I" h 11 n Imporu • , . J.. . )0 1 71 32 13 8 10 ip 1 1 • 2} 35 15 6 B8 18 lU 37 11 2h 01 7 81 NUMBBR 5. KXPBNDlTVftE OP THE PKOVINCIAL OOVEllNMKNT. Having no official Return of the amount of the expenditure of the Provincial Government for 1845, I am compelled to fall back to the ex- penditure of 1844. Ist Interest of Public Debt, 2 Expenditure of the Civil Government, 3 Administration of Justice, 4 Provincial Penitentiary, *]" 5 Legislature, • ' 6 Education, • . • 7 Agricultural Societies, 8 Hospitals and Public Institutions, 9 Public Works and Surveys, 10 Militia, 11 Light Houses, . • ^ 12 Emigration, 13 Pensions, 14 *Mi6cellaneous, • > * Under this head will be found Census for Lower Canada, Registration, Assessment of Property, • Removal of Seat of Government, Printing, Other Items, £123,641 12 81 28,331 5 4 56,561 18 4 10,901 8 5 25,596 2 66.349 17 7 3,349 15 6 7,983 12 1 7,043 13 8 2,004 1 8 5,160 11 5,240 9 8 12,354 7 27,162 V £381,680 12 7i £4594 17 8 1679 18 9 968 14749 6 6 1987 10 8191 1 9 £27162 15 8 )7 17 II 77 18 7 75 15 8; i NUMBER 6. . i INTERNAL RIVENUK OP THE PROVINCE OP CANADA. Amount of the Prov. Tax, collected in the different Dis. tricts from Shop and Tavern Licences, and other Sources, see Pub. Ac't No. 4, Bank Tax on Amount of Issues, CrsuaI Revenues, Fines, ^c. £34,370 5 10,492 15 5,004 2 5 lU £49,957 3 4} .' «l ■iii, ii! \ i -. ! ! ; i > 1 \ \ 1 I f . i \ \ 12 NUMBER 7. AmouBt of the Expenditure, Deductions, und means of supplying the Defi' ciency of Revenue now received from Customs. The amount of the present Expenditure of the Provin- cial Government as shown from Table No. 5, Proposed reductions from the above amount, Civil Government, £8,331 5 Public Works and Surveys, - 7,048 13 Emigration, .... 5,240 9 Miscellaneous, .... 20,000 £382,181 \% 71 4 •■ .'M - 8 40,615 8 8 To be provided for out of the following £341)6166 3 lU jFtfn(2«.— Interest on Pub. Debt, £123,641 12 8i Maintenance of Light Houses, 5,160 11 To be transferred to Public Works £128,801 13 71 44,061 18 4 Admlnstration of Justice, X*o be transPd to tho fund to be created from Fees paid by litigants. Education, . - - . - To be transferred to a fund to be created from sales of Public Lands ♦Agricultural Societies, ♦Hospitals and Public Institutions, •To be provided for by the dif- ferent Town Corporations and Districts where situated or found. Balance to be provided for, Civil Government Administration of Justice, Provincial Penitentiary, Legislature, . . • Militia. . . . . Pensions, Mificellaneous, • . . 66,349 17 7 3,349 15 7,983 12 6 1^ -250,^46 17 li £91,019 6 10 £20,000 12,500 . 10,000 25,000 2,004 12,354 18,142 £100,000 £100,000 The above to be provided for from ou; internal CMOUfpei* ( i Ports, I Upper ! which I 13 ng the Defi' /• r I 181 n 71 The foregoing Tables have been carefully compiled from ofTicial public documents. NO. ONX. Proves, That the Provincial and District Taxes in Niagara, Canada, exceed the State, County and Town Taxes in Niagara in the United States. Those are the only official returns published in Canada from which a comparison can be made. ,615 8 8 566 3 IH NO. TWO. Proves, That the Customs on Import Duties on those Articles most in general use, are much higher in Canada than in the Western States of America. N6 17 li 019 6 10 NO. THREE. Shews the relative Amounts of Revenue collected from Sea and Inland Ports, the relative proportion paid therein by the inhabitants residing in Upper and Lower Canada, and the amounts collected at the different Porta, which with NO. FOUR. Proves, The amount and proportion of the costs of coUectinpr this Revenue' NO. FIVE. Shews, The aggregate Expenditure of the Provincial Government for 1844, as well as the different objects for which it is applied, and ! /I NO. SIX. Shews, The amount of the Provincial Tax collected from the different Districts) and the sources from whence received. MO. SEVEN. 000 Shews, The amount of reductions, on different branches, and the sources from which the amount of Revenue now received from Duies on Customs can be supplied. The amount of these resources are shown from Table No. 6 to be - - - - - £50,000 The Revenue from Crown Timber, - - - 50,000 £100,000 rii '' 'i| 14 These Tables and figures speak for themselves; they show the amount of Taxes now paid by the Inhabitants of Upper Canada, from what sources derived, and for what purposes expended. They are designed to prove, that the Revenue now received from the Taxes on Consumption can be wholly dispensed with, without increasing the internal or direct Taxes now paid, and without impairing the usefulness or efficiency of the Govern- tnent. They would require no further comment, if the Inhabitants, gene- rally, had access to the public accounts, and understood the resources at their command ; but as this information has been virtually withheld, it is necessary to enter into more full explanations, therefore a separate com- munication will be made on each subject. Your Ob't Serv't, Wm. HAMILTON MERRITT. i Th h Product 1 I the amount ^hat sources (d to prove, ion can be Taxes now he Govern- itants, gene- resources at thheld, it is >arate corn- 3^9 W31R ^(f^ ^2^ RITT. Gentlemen: — The first inquiries which would naturally arise, when any material change is meditated affecting the Fiscal Policy of a Government, are, whe- ther any necessity exists for that change, and in what manner the In< habitants would be more essentially benefitted. The object of these communi- cations, therefore, is to shew that the measures proposed in the Report of the Agriculturists of this District, in November last, are sounds just, prac- ticable, and absolutely necessary. The first measure proposed was to obtain the free admission of the Products of Canada into the markets of Great Britain. It is alleged in a paper called a Free Trade journal^ edited by certain Merchants in Montreal, that no necessity exists for this application, be- cause all duties on Canadian products in England are already removed. If this be true, it is a proof of great remissness, or extreme ignorance on the part of the late Provincial Legislature, which addressed the Imperial Government for their removal, as well as of that Government which re- fused the application — alsc^Sir Robert Peel, who, in the discussion which took place on the recent British Possessions Act, expressed his regret that Lord John Russell had not repealed all existing differential duties on Ca- nadian products. If this duty continued only on one article, it should be removed. A Colony cannot form an integral part of an Empire so long as duties exist on the exchange of articles in any portion of that Empire. This principle should be adhered to. If so, as it is sound, just and neces' sary, it will be carried into operation. The Second Measure was, the free admission of the Products of C(Z- nada into the markets of the United States. The only reason assigned against this measure was, ** it cannot succeed, therefore it is useless to urge it." A misapprehension also exists on this point. Although the policy of the American Government continues to bo protective, it is no Mason \cby it would objeotia the adaiision of Canadian products. Those products consist only of Grain and Lumber, and cannot interfere with any manufacturing or other existing interests. It aims at f ^ l 16 guarding against the admission of similar articles manufactured in Europe . or other countries beyond sea. We have no interest, nor desire 4k> ^ BhiuM lessen (he duties on those articles : our interests are coi. fined to the productive growth of Canada alone ; and it can bo shown clearly and sa- tisfactorily, that it would be conducive to the interests of the United States to admit them, inasmuch as it would give thai country a Revenue from Tolls, Profits on Transportation, Commissions, and all the additional advan- tages incident to a transit trade. But higher motives than mere temporary interests, I am convinced, wilt actuate its Counsels. An example has been set, and the Statesmen of the neighboring Republic cannot but feei, that, as an act of justice, it is their duty to recommend to the Government the adoption of that ex< ample. The Government of Great Britain has, with a degree of magnanimity heretofore unprecedented, removed the duties on those very articles with- out exacting reciprocity from other Nations. The Agriculturist in the United States reaps the full benefit of the markets of Great Britain, and 4 virtually of Canada. On this ground alone, therefore, I feel assured, the I example of Br'tain would be followed. If, however, every motive of inte- | rest, generosity, and justice fail, there yet remains a dernier resort. Great Britain has the power to compel that Country to remove those du- ties, or to impose similar ones on their productions. If this measure be neglected, the first unproductive harvest on this, or a productive one on the other side of the Atlantic, will cause higher prices in America than in Europe, which will originate a dissatisfaction here it is far from desirable ^ould have birth. J The Third Measure^ was the Equalization of Taxes. — The subject of Taxation in Canada is understood by few. In Lower Canada the inha- bitants are not subject to any direct Taxes, whereas in Upper Canada they -« are taxed higher than in the Western States of America, and the AgricuU turist bears the principal burden of them. In the United States Taxes are imposed on Capital by a percentage on the amount ; here on Lands, Cattle, Improvements, and other specific Articles, the percentage on which is about one and one-fifth ; there, six mills — less than one half — the effect of which bears unequally on certain articles j for instance, a cow is valued here at £3, which at 1 1-5 per cent, amounts to 8rf. ; there i per cent, would be less than 44. Taxes are required to protect property, and pro- • perty should be taxed in proportion to the amount thus protected, upon the same principle as by Insurance. If this property be invested in Stocks, Bonds, or any othSt description of capital, why should it not contribute to the payment of Taxes, in the same proportion as if invested in Lands, Horses, Oxen or Houses 1 This is the object contemplated in the Report, i Vt when understood^aJ* will sAm be fniinrl jiinli iwul mjuLiULum oUyCw 1. fined to the )arly and sa- Jnited States e venue from tional advan- n convinced, 18 Statesmen r justice, it is of that ex- magnanimity articles with- urist in the Britain, and assured, the olive of into- nier resort, ove those du- measure be ictivA one on erica than in om desirable -The subject ada the inha* Canada they the Agricul- 3tate8 Taxes re on Lands, iige on which f — the effect :ow is valued } per cent, rty, and pro- ted, upon the in Stocks, ot contribute ed in Lands, n the Report^ — The most to which it would bo folly to reply. As no argument or reason has boon assigned, the inference to be drawn, is that it is im^rncticable. AJ^ ^ — To determine in our own minds whether a necessity exists for the re- moval of all Duties on Imports^ it is iniporaiive that we should thoroughly understand the actual position of this Province ; its institutions, its geogra- phical situation, and its relative hp!i.ring to Groat Britain, the United States, and other Commercial Countries. So long ago as 1832, an Ad- |l dress to the Imperial Government, praying for the admission of Canadian products into their markets without duty, was passed by the Legislature of Upper Cpnada. Since then I have continued to advocate the principle of Free Trade between the Mother Country and this Colony, as well as a discriminating duty in favor of British manufactures here, because a simi- lar duty existed in England. I mention this in consequence of having been charged with inconsistency, for advocating measures now which 1 then opposed. A striking change in the Colonial Policy of Britain has since taken place. The Colonist now is pfeced on a footing with Foreigners. A simultaneous change has also taken place in the Commercial Policy of the United States. Under their Warehouse and Bonding Acts Canadian products can reach Britain through the United States. These Laws must produce corresponding changes here — not from any support they may re- ceive from the Press, the Government, the Board of Trade, or private indi- viduals, but by the natural operations of Trade. The first leads to a repeal of all discriminating duties in favor of British Manufactures here j the second to the repeal of the Navigation Laws, opening the St. Law- rence, and every existing restriction on the Trade of Canada. This is inevitable ; it admits of no argument — no alternative ; the Government will be compelled, either to remove those restrictions, or to abandon the I Trade altogether. The question for consideration, is not removing those * restrictions, but whether the removal will attain the end in view. In my judgment it will not: nothingshort of removing a// Customs Duties will ensure the Trade of Canada. Our position with the Mother Country should be similar to that of a State in the bordering Confederacy, where no Custom Houses, no delay, no restriction, in passing from one State to another exists. To this cause Sir H. Douglas and other Statesmen ascribe their prosperity. By ofRcial statistical returns of Custom duties, it appears that prior to the union in 1841, the Trade with England was increasing at a ratio of three to one over that of the United States — the increase from 1838 to 1840 being^former £14,519, latter JE4,561 ; that since 1841 the increase with the United States is in a greater proportion than that of Great Britain, it being an increase from 1841 to 1843 with the United States «§je94,020, and with Great Britain £76,362. In 1841, be it remembered, the Customs duties on British Manufactures were increased from 2 J to 5 per cent. That ii must continue to increase under the operation of the existing restrictions in a progressive ratio there can be no doubt. Prior to 1841, a fair Trade r O'UAj^ - -^ P^2^ m^ 18 with the UnitcJ Stales was transacted through Canada in the finer Fabrics, Cloths, Loaf Sugar, &c. &c. &c. This Trade has wholly disappeared, and the Establishments at Fort Erie, Windsor, and other points on the frontier are withdrawn. The Drawback or Warehousing Bill, passed in the Session of that year, has proved a total failure, not an article of British manufactures having passed through Canada for the supply of the Western States under its provisions. Goods of every description nre at this mo- ment as cheap in the Western States under their high Tariffs as in Ca- nada. These facts afford undeniable proof that the lUO per cent, increase of duties in 1841, on the manufactures of Britain, ' f » o iw t t i l e 6 pei atjalt amounted to a prohibition for the supply of any portion of America through Canada ; and if we aim at supplying a portion of the Western States with British manufactures, those Customs duties mitst be wholly removed. I ■ From our proximity to those States, the Inhabitants of Canada must not be placed in a worse position. By the removal of Import duties altogether the increase of Trade and value of property would leave us no- thing to envy. It would also be an ample equivalent for the expense in- curred by Great Britain in the Colony ; because in withdrawing all duties on British manufactures, you place them in a condition to compete with those of any other country, which is all they require. It would ensure the Western Trade, and the Revenue on our Public Works ; and from the ge- neral prosperity which would become visible, the continuance of our con- nexion with the Mother Country would be firmly established. If those reasons are 80und,^t is clear that a necessity exists for the removal of Im- port Duties, ^z^ ^ Uuiaac nrjHmu*^ il^u^u4^ The next Letter is designed to shew that their removal can be ef- fected without increasing Taxation or impairing Public Credit. Your obedient Servant, St, Catharines, 27/A ifpriZ, 1847. W. H. MERRITT. lor Fabrics, lisappeared, nts on the assed in the of British he Western at this mo- ) as in Ca« nt. increase 6 ' p e r eea b *ica through States with jved. lanada must iport duties leave us no- expense in- ng all duties ompete with d ensure the from the ge- I of our con- 1. If those novalof hn- can be ef- RITT. • l!: xisy^vssB ir*!!);. 113^ Gentlemen : — The object of this Letter is to examine whether Import Dutio.> can be removed without increasing direct taxation, or impairing public credit. The advocates for a continuance of this reven-ie draw the well understood distinction between the opinions advocated by Protectionists and Free Traders, which it is unnecessary to discuss. Admitting that even the celebrated Cobden, the originator of the Free Trade movement, entertains the opinion that Import Duties are necessary for the support of a Govern- ment, as well as the Free Trade merchants of Montreal, it does not estab- lish its ne<7essity for Hsi^^^mimtS Canada. If its advocate understood the marked distinction which exists between an Independent Government and a Colonial Dependency, he would ridicule the idea of continuing those Diities : he would look below the surface, and examine into the cause which rendered lb«» necessary in Independent Governments, and if that ^-/i^/ eatise had no existence in Canada, their contmuance would not be advo* ^ ^?y^ cated. The simple fact that no Import Duties are required for the main- ^^^ tainance of the Goverment of the State of New York is sufficient proof ^V that they are not required for that of Canada. But as it is desirable that the ^rountf^ on which the total and unconditional repeal of those Duties are based should ba well understood, it is necessary the relative obligations and duties, which should exist between an independent and a Colonial Go- vernment, should be examined. The Mother Country expends large sums annually in this Colony for the erection of Fortifications, and the maintainance of Troops. The equi- valent heretofore exacted from the Colony was the control of her Trade. Under the late British Possessions Act, this control is virtually abandoned, and the Provincial Legislature is recommended to " reduce or remove those duties to the lowest limit which the exigencies of the Government will admit." The Colony therefore is under an obligation to the Mother ! Country to increase that Trade, which fortunately it is her interest and in her power to do, by the removal of Customs Duties. I t I The increase of the consumption of British manufactures here* adds to the profits of the manufacturer and gives employment to a greater number of operatives there, all of whom contribule to the revenue in Britain. By I 'I 20 tills means tho consumer horc hoars his proportion in the support of the Army and Navy \ but us no part of this oxponso is paid out of the Provin- cial Treasury, this Colony does not require, the duty on Imports. Import duties are imposed by independent Governmenti for the pur- pose of maintaining an Army, Navy. Foreign embassies, (Sec. for the pur- pose of guarding their Commorco Ifs imposition here is an injustice to the Mother Country — inasmuch as it diminiishes her Trade and deprives us of the power of contributing our proportion of these expenditures in the only legitimate manner — the natural operation oi" Trade. Its imposition is also unnecessary, unjust and injurious to the Colony^ Unnecessary, because it has no expenditure to make from its Treasury for the same object. Unjust, because it deprives the inhabitants of the only advantage they possess, as an equivalent for their dependency, iiyuri- ouSf because it deprives us, as woll as the Mother Country, of the natural advantages we ought to possess — having opened the largest and best com- munication between Great Britain and the Western States, the greatest portion of that Trade will be diverted through this Channel on (he repeal of that duty. The objects for which Taxes are imposed, and the sources from whence obtained, should be defined. They cannot be more clearly explained than by poinMng out the system of specific funds for years adopted by the Go- vernment of New York. For instance taxes are imposed on Imports and expended /or the maintaiyiance of the Army and NavyfOa before mentioned. This tax is not applicable to cither a State or Colonial Government. A fund is created out of the proceeds arising from the sales of Land, and ex- pended for education. A tax is imposed on their internal resouces — viz : Salt manufactured and Auction Sales, and expended for support of the State Government. The Tolls from Canals and direct tax of^mill^on the dollar, is expended for the interest on State debt. A Fee Furiaia collected from litigants, with the exception of a small balance which is supplied from internal resources, for the administration of Justice. With the exception of the manufacture of salt, for which timber duties can be substituted, Cana- da J|pfc4b»'«M)fi» resources for ci'eating similar revenues. Various plans have been proposed to meet the change which has taken place in the altered circumstances of this Colony. One was to send Mem- bers to represent Canadian interests in the House of Commons. The pow- erless and insignificant position they would there occupy is a fatal objec- tion. The second was the formation of a Federal Government here, upon the same basis as that formed in the United States. This measure would cause the same necessity for the imposition of Customs duties here as there, for the purpose of sustaining tho expense of this extra Government, and would deprive us of the advantages we now possess of getting relieved from this duty. Third, The repeal of the union of Upper and Lower Cana- ada. This union was sought for principally on commercial grounds, the i i ort of the iho Provin- I. r the pur- for the pur- iistice to the prives ui of in the on]y the Colony^ reasury for of the only jr. Injuri- the natural id best com. he greatest 1 the repeal rom whence )lained than by the Go- m ports and > mentioned. rnment. A ind, and ex* juces — viz : port of the ^milVon the is collected pplied from e exception tuted, Cttna- has taken send Mem- The pow- fatal objec- here, upon sure would ire as there, overnment, ng relieved ower Cana- rounds, the 4 21 proportion of import duties received by Upper Canada, and (he obetfue-* tions in the navigation of the St. Lawrence, preventing free access to the Ocenn. By removing Import duties^ all restrictions on commerce, and w curing the Iree navigation to the Atlantic, now that the navigation is com- pleted, the union may be dissolved without injury to either Province. Lower Canada may support her Government out of he; internal resources. Upper Canada can do the same. If the double majority system recently mooted be adopted, the repeal of the union is inevitable. Would it not be wise to prepare for that event in time ? Ail impression has gonerally prevailed, not only throughout this Dig* it'icl but the Province in general, that the taxes paid in the different Coun<< ties in the Western States are much higher than in the various Districts in this Province. So late as February 1845 an accusation of unfairness was made against me for contrasting the receipts and expenditures of the Pro-' vincial Government of Canada with the State of New Ifork^ because the local taxes were not included, which, it was alledged, amounted to j£800, 000 in that State, whereas in Lower Canada ihore wos no direct tax, and in Upper Canada it did not probably exceed j&30,000j consequently if oat taxes equalled theirs, it would be increased to i2400,000, taking our popu- lation at one half. This assumes that the citizens of that State pay twelve fold higher taxes than the inhabitants of Canada. The late Colonial Se- cretary was under the same impression ^vhen he adduced as a reason why the Canadian farmer could successfully compete with the Western, that he paid le£i3 taxes. Impressions of this nature are injurious. If British and Canadian Statesmen have taken so little trouble to inform themselves of the amount of taxes paid, and of the practical operations of the institutions of a Government adjoining us, it cannot be expected from the inhabitants generally, who have no access to public documents. Hence a correct statement of the relative amount of taxes paid in this District and the ad- joining County, is timely and useful : the information it affords cannot fail to remove those erroneous impressions. It appears from the Jiret Table» that the amount of taxes paid in the District of Niagara in Canada exceed those of the County of Niagara opposite in 1843 .£2461 14«. 2(2., m 1844 £2505 135. Ohd.y in 1845 i:il53 2s. Whd. This Table also establishes an important point, viz : that no necessity can exist for creating additional direct taxes, in the event of Custom duties being removed^ because the direct taxes are not higher in a Government where duties of that nature do not exist. This fact should at least arrest public attention. To what cause ere we to attribute this immense disproportion ? On one side of a River of Boundary, we find three millions of people governed without any revenue or duties on the articles they consume, by a comparative light tax on capi- tal or property ; while on the other side for the government of less than half*million^a heavy duty is imposed on the articles consumed besides at least an equal tax on specific articles. A more striking proof of the want of a better financial system cannot be offered. The management of the CUol-^ !.'•' public funds in the Government of New York ii. economical and snlisfac* tory to all classes. The cause is apparent. There they have a law re- quiring the publication of the entire receipts and expenditure of all public monies, in January in each and every year, which iscirculntrd in pamphlet form, and every person has an opportunity of reading and knowing what amouixt of revenue is collected, from what source, and for what purpose expended. A similar Act has been introduced hero, but hns been steadily rejected ; consequently few have an opportunity of ascertaining the total amount of taxes paid. This waiit of information has produced apathy on ihe part of the public, and has led to a system of gross mismanagement, and extravagance unexampled in any other country. This is by no means the only extraordinary result arising from the investigation of the taxes paid by the inhabitnnts of the two couriiries. }t will be found by reference to Table No. 2, that we arc actually paying higher Customs duties for the support of our Provincial Gorornment than they pay for both their Federal and State Governments. This Table is laken from the Imperial, Provincial, and United States Customs Acts. The aggregate amount of revenue imposed by tho Ameri- can Taiiffof 1846 is greater than tho amount imposed under the Imperial and Provincial Acts : it ranges from 100 per cent, on spirits, wines, &c., down to five per cent. ; still a just and wise discrimination exists in the selection of the articles on which high duties are imposed. Notwithstanding those high duties, such is the counteracting influence of our restrictions that scarcely an article is brought into the United States through Canada, nt the same time we find that all articles of ordinary use are ns cheap in the Western States as here, and all indispensable articles, such as are daily used by the husbandman, lea, coffee, salt, &;c., being wholly exempted from duties are of course much cheaper. In addition to the amounts on duties named in the Table, one-tenth must be added on the ad valorem vol- ue under the Imperial duty ; also one-tenth and one-twelfth to bring Cana- da Sterling into Halifax Currency, being an addition of the 4«. 4d. on the 205. ; also one penny on five shillings, tho dollar of 5s having been in- creased to 5s. \d. Those several additions bring the duty on n barrel of American Salt to 3*. \ld. or five York shillings, and on American manu- factures generally to about 15 per cent. Many other items might bo added, such as the copy-right law, which imposes a most unjust and unne- cessary tax on literature without conferring the slightest benetit on any in- terest whatever ; but we have adduced quite enough to establish the fact that the Farmer in Canada fays jar higher duties even on Imports than the Farmer in the Western Stales. This leads to an examination of the extra expenses attending this system of taxation. It was estimated in the report ef November at £40,000 per annum. As this estimate has been disputed, ihe third and fourth Tables hare been compiled from official documents, and from these we glean the following most extraordin-^rv results. I Ii Sainto £53 ( £38,8 public which collect m T £1400 penditi Again tlie i're H sustain is oblig i £450,C consum Jays, ar Much r the imp out by I reasonii Tc ilton, ai wortliy Oflicora would ^ ted. I It not inci tionshoi adopt ? which [ ** An severely trader, c exempt not leav lands, st represen taxation 23 d salisfaC* 3 a law re- r all public 1 pamphlet vtng whnt mt purpose m steadily ig the total I apathy on inagement, g from tho uniries. It ally paying nment than nitod States ' tho Ameri- the Imperial wines, &c., exists in the withstanding j restrictions ugh Canada, ns cheap in such as are Hy exempted ( amounts on valorem val- biing Cana- Ad. on the ing been in- n n barrel of jricnn manu- is might bo jst and unne- fit on any in- blish the frvct oris than the of tho extra ) per annum, es have been the following I In five Ports^JCaston, O\von':j fcioiJiKJ, Tttit Credit, Hondeauand .^'oult Sainto Marie, the cost of collection exceeds the entire amount collected by JE53 Gs. 8J. In the other fifty inland Porta the net amount collected is je38,B30 Is. l\kd : the cost of colle'ction Jt;25,775. See Tablo No. 2, public accounts of 1S45. This docs nof include tho cost of management, which would bring tho expense to sovcnlylivo per cent, on the amount ^» <>, J2hj b /? ^ — ^ i collected. Tho expenses of management in 1845 exceed Ut««Mit-1844 by £14000, CSee Table 2, Provincial accounts.) Many other items of ex- penditure arising from litigation, vStc, are novrr brought before tho public. Again losses, by detention nnd various other rosU^jops which embarrass the free action of commerce, tu >n extent that cannot always be ^timated. However, taking the aggregate, (TnUe 4,) the estimate will bo fully sustained. Nor must we forget that in addition to the above the consumer is obliged to pay to the hafmtm, a large percentage, say from 10 to 15 ■yon ttinii on the ^ , OH i » mw advanced, m payment of these duties. On X450,000 this would amount to about'^iESOjOOO, and the real loss to tho consumer will be found, when wo consijjjjgi^the profits on advances, de- lays, and other contingencies, as^io falljar short of jClOO,000 per annum. Much might bo said with truth as to the injustice and injury arising from the imposition of penalties, imprisonment, and the temptation to crimen hold- out by the very law itself; but this would be entering upon a ground of reasoning foreign to the subject of these Letters. Take out Quebec, Montreal, St. Johns, Kingston, Toronto and Ham- ilton, and the net amount collected in all the other Ports in Canada is not worthy of notice. The labor and industry of the host of Custom House OiTicers and Tide Waiters, together with their assistants and informers, would \)e of far more value to the Province than the whole amount collec ted. This alone would be a good reason for repealing the duty. It has been clearly shewn that ttie removal of this indirect duty will not increase the direct taxes, fiut suppose a necessity for increased taxa- tionshould arise, which mode would it be for the interest of Canada to adopt ? Certainly that which entails the least expense in collection, and which bears equally and justly on all classes. An income tax is unjust in its operation, inasmuch as..it bears top severely upon the fruits of intellect and labor. If a professional man, a trader, or a common laborer, makes £25 or jClOOO a year, he should be exempt from taxes ; because his income passes away with him. He can* not leave it to his children ; but the moment he invests that income in lands, stocks, goods, or any description of property, which remains to his representatives, then it becomes capital and as such is justly subject to taxation. 24 taxation on capital, >a b a far a e t ilti ^ is the only just and equitable mode— all others should be abolished. Ry thnt mnnnM nlnnn «M4^the industry of the country 4Mir relieved and the system so modified that its burden would scarcely be felt by any individual in the Province. The machinery (or its collection by assessors and collectors is simple, economical, and well understood. Under our present system the taxes «b cost tea times more in collection than under that proposed. It presses with uiraue weight on active industry and labor, embarrasses and restricts commerce, in stead of being laid on imamflku^ capital o n which it wo uld ^ fall lightly. gTi^flH Tytnijm^^'UiU j i HiiyQi ymy i jitlmi}^^ ji jEjSfli - tf tnintinn hfl I'^T"^'^/"'!. *'?"'"^"'"'"g *^" ''""' prmnMnmniH it nil mil I !■ m l n o t r iniii n iiiiioiii D »li w^ /if- 111 I iiiaiwiifu mil null im\ iiniii 1 1111110111 imiiw^ . Your obedient Servant, WM. HAMILTON MERRITT. fif/. Catharines^ Zrd May^ 1847. "w*^'*-"- M / ; a^aiv^38i» "sm^ ht. ,/' Gentlemen ^r—^, c^i^UsU ■yv^^ ihfl ^ fe^^ai^ i'h » n e Kt inquiij i lu, wi ln^ILu'i ^the amount of revenue which will be withdrawn by the repeal of import duties,can be supplied from other sources. Table No, 5 has been prepared from the Union and Provincial Acts. This document has never appeared in any Public Account. The first will be seen in the appendix to the Journals of last Session, for the purpose of g iy i ii g the amount expended in each department. In 1844 ikm <«p— )diHMi^0. The me- I in operation , the revenue, t the expendi* rn Lands and )endix No. 1 nd cannot be appropriated 25 in a separate fund lor a specific purpose as lieietoforo shown, ^y which means the receipt and expenditure of oncli source and for eaqh distinct ob- ject is bi ought before the people and understood. The first item selected is the interest on the public debt, amounting to about jE 125,000. It is proposed to susiain this expenditure from tolls on public works. It may bie objected ihat they will not pay this interest ; and 4rin common with others who have supported these improvement3,^have been subjected to no small degree of censure for being instrumental in crea- ting so large a public debt. So far as our large ship canals (the Wei land and St. Lawrence) are concerned the charge is just ; but I deny having had any participation in squandering the Provincial funds for plank roads or any other local object, or in the delay and extraordinary neglect which has attended the completion of those works, thereby depriving the public of any income. Public attention is directed to two points connected with this branch of the revenue, for on those points the success of this measure will depend. The ^rs< is, perfecting the navigation to the ocean, so that any vessel «an pass from Montreal to Prescott independent of any individual agency. This measure was pressed upon the consideration of Government in 1846 by the Montreal Board of Trade, but from its importance not being under- stood, or from some cause yet unexplained, no action was taken upon it j and many thousand pounds have been lost to the Province from the freights in 1846, in consequence of this neglect ; and even now, three years after the time that this navigation should have been completed, the entire transit trade by the valley of the St. Lawrence, is likely to be subjected to the same monopoly. If any person heretofore doubted the wisdom of making this navigation perfect throughout, the notice published last winter inducing the public to believe that flour would be transported from Kingston to Montreal at 1*. 6(2. per bbl. on the opening of the navigation, and a recent notice thiiepwing, that douhl must he removed. The same system ^11 be continued, and the same means resorted to, so long as the control ^jwNUrt navigation rests in the hands of individuals. i^Zi^ The second point relates !o the Tolls. — An effort has been, and most probably will continue to be made, to reduce or remove the tolls on these works altogether, under the impression or pretence that it will cheapen transportation — a more erroneous or injurious measure could not be mooted. The question for the consideration of the country is this : As a revenue must be provided to pay the interest on the capital expended on the con- struction of those works, which is the most economical and equitable mode of collecting it — from Tolls or Customs Duties ? Tolls are collected with- out coercion in the most simple and certain manner, thus securing ocono- my. They are paid by the party who secures an equivalent in the reduc- D J '1 it <^ 26 '4 tbn on his freight — which is equitable. The public are accustomed to pay it, and do so willingly ; whereas the collection of Custom duti?s Is attended with strife and violence, requiring an army of dependants and informers to enforce payment, and falls on the consumer, reside where he may, although not benefitted by the expenditure — hence it is unjust Every article pass- ing through the 3t Lawrence down or up should be liable to toll. It may reduce the profits of the forwarder ; but would cheapen freight to the pub- lic and add to the revenue. Assuming the navigation to be complete and the tolls imposed — the two points contended for — the public debt must bZ" taken as we find it. Endeavour to profit in future by the misman- agement of the past Fortunately for the Province, the Welland and St. Lawrence canals when completed will not only pay the cost of con* slruction, but will in a few years sustain the entire public debt I If more money is required to complete them, obtain an additional credit from the British Government on the ground of the changes made by the Imperial Parliament in the commercial policy of the Colony, and pledge the tolls for repayment. This is the plan adopted by the State of New York. The security is unquestionable, and there can be no difficulty in obtaining the mi^ney without the Imperial credit. Whether the revenue from tolls alone will pay the interest and redeem the public debt rests upon one fact, viz : successful competition with the Erie Canal. From the magnitude and natural advantages, the communi- cations in Canada possess, few entertain a doubt of their ability to com- pete with any other communication. That point admitted, the next is to examine the country connected and the extent of its trade, a portion of which must be directed through this channel, leaving to the imagination the quantity of produce to be grown on a coast of 4000 miles above the Falls of Niagara. We will refer to facts and figures to show the quan- tity and amount already realized from the Erie Canal and the conse- quences resulting therefrom. From the Comptroller's report of 1847, it appears that the entire debt created for the construction of their public works exceeding $30,000,000 will be paid off in 1869. The immense revenue which those canals produce, demands the attention of Canadian statesmen. To what cause is it to be attributed ? Is not the absence of all restrictions on the trade between different States a prominent one. Is it not notorious that with the existing restrictions we do not receive any portion of the trade alluded to, except a small part passing by Oswego. Suppose a vessel of 400 tons could pass from Chicago lo and from Boston, as well as between Other intermediate ports, on payment of canal tolls only, without any other restriction or detention than at present exists between the same points via the Erie Canal — what would be the amount of Tolls collected on Ship Ca- nals in Canada, where no transshipment will be necessary ? Far greater, in my judgment, fhnn the entire amount of Customs Duties with all other revenues put together at this moment. I am» Gentlemen, your obedient servant, W. H. MERRITT. /§/. Catharines, Maif 1th, 1847. 4 med to pay Is attended iformers to y, although irticle pass- II. It may to the pub- )mplete and bt must b^ le misman* ^elland and ;ost of con- ! If more dit from the te Imperial Ige the tolls ^ork. The itaining the and redeem >n with thd 9 communi- ity to com- iO next ii to , portion of imagination )s above the the quan- the conse- ihe entird 3 exceeding which those To what tions on the torious that the trade a vessel of as between ut any other points via m Ship Ca- Far greater, th all other RITT. 3^aafi?aiB ST'©^ It. Gentlemen : — In my list, the transfer of the Public debt from custom duties to those on tolls, was argued and dwelt upon at some length — because under any circumstances credit must be sustained, and the creditor should be made to feel that his money is quite as safely invested in Provincial deben- tures, as in New. York Canal scrip. A point of no less importance to es- tablish is — whether the grant for common schools can be sustained from any other source. £50,000 per annum is now paid from custom duties for this object. We have borrowed that part of the American school Act — which imposes an equal amount on the difTerent districts — but discarded or overlooked the most essential part, viz — that which provides the funds — and at the same time lessens taxation. To explain. There, a fund has been created out of the sale of public lands, for common schools and town* ship libraries. The inhabitants are entitled to this money if they volun- tarily tax themselves to an equal amount, thus they receive a bonus of one dollar for every dollar they pay by this d If provision is not shortly made for this fundj the people will claim n s!mT lie is concerned, nothing can be stationary, which does not confer equal advantages on the entire population. It is notorious that a very stMiH proportion of the inhabitants, are or can ever bo benefitted by those literary institutions where the higher branches of education^re taught. They will look for a fund from the public, which will supply them with teachers and books; this done, they will rest satisfied — we still have the opportunity of providing it, and every clergyman, minister^ piofeesional gentleman and every man who values peace, should lend hiseffortstoaVert the applica- tion of the proceeds arising from public lands, to any other object. The true policy, is to make Canada a desirable country for the resi- dence of the emigrant ; give him the meansi to educate his children, remove your Custom duties, and.show him that it is his interest to reside here in preference to the United States, and you will find that population will in« creaso with the same rapidity here as there. The next important branch of the public expenditure is the adminis- tration of justice. It appears there is paid from the duties or customs out of the Provincial Revenue, £56,561, from the direct taxes in the diflfereni Districts in jpper Canada about ^30,000, it may in routid numbers h^/it stated at from £80,000 to 90,000. to .. maMl ain tho p«jaui.:fm i about one^ , and a quarter millions of people. 'Tinder the 9th Vic. chap. 2d, one third / of this amount was transferred from llie District to the Provincial Trea- ^t/^y^^ Bury, and an excise tax, of 2d per gallon on whiskey manufactured in ^^^^/ Canada, was imposed to supply the amount. It was a popular tax, because ^ it bore equally upon Lower Canada, who paid no part of the District/) direct taxes for the administration of justice, as in U. C, and because it was supposed to promote temperance by increasing the price of whiskey. Many Wardens in the different Districts congratulated the Councils on the occasion. A moment's reflection, however, will remove this delusion.^ Admitting that the inhabitants of Lower Canada are made to pay their proportion — does it relieve the inhabitants of upper Canada? No I It only inflicts a similar tax on Lower Canada. Again does it increase the price of whiskey? — No! that is impracticable — Mgi why 1 If we were residing on an island, or surrounded by a stor^ wall, through which a single gallon of whiskey could not enter, then according to the unerring rule of supply and demand, the price of whiskey would 30 1;i necessarily rise, and the consumer would pay this (ax because ihe import duty amounts to a prohibition. But we happen to be situated by the side of a Boundary of some hundreds of miles, where whiskey is made in great quantities — where no license, no tax is exacted — except a per- centage on the capital invested in the building.i^t^ond^stocks, or any other property, and whore every facility is aflforded to the nnanufacturer. This whiskey is smuggled in, and supplies the demand on the frontier. — The Canada distiller can make no cash sales-r-prices continue low ; and he can only afford to pay the farmer for grain tCi value, afl sr dcduini ii g the amount of this duty, license, loss of time and all other^est^ctions^un- der th4jflaw — thus" the full amount of tTiis tax HUMfciJiir^ustained by the grower. The aflhai^«i»'» hi «f i hm farmer is relieved from the payment of his quota of the direct tax for the admiuistration of justice — say 5s. to 10s. per annum, which ho has heretofore paid to his township Collector, ^ ^1^ he loses on every bu* i nA it l/T7^ I additional Tax to collect ipr. %i| such a sys- ^\ coststhecon sumer^4 .tem^coD^mue, nmnng nn it _ It is also highly satisfactory to find from Letters Nos. 4 and 5, that' the Province possesses abundant resources to create a revenue within itself < to supply the deficiency arising from the repeal of those duties. These changes are no experiment — no theory, and not intricate ; the most ordinary capacity can understand them ; ihey have been in practical operation for vears in a State, why will they not prove equally beneficial in a tfllH^ ^^^ reason can be assigned, no satisfactory answer can be given. fmVi^ u^ It may be argued that the inhabitants of Lower Canada have been ac* customed to thi^ payment of Customs duties ; that however expensive, so long as they are satisfied, why disturb it 1 The reply is this : no cause ^exists, and no reason can be assigned, to show that direct Taxation will 4 32 ^••^ 1.1 i< «r ■'Uma^ ::i be necessary in consequence of the ropcal of Customs duties. The internal resources of Canada are ample to meet the ordinary expenses of the Civil Government. As there is no army to maintain, and no expense to incur for those objects which are applicable only to independent Governments, there can be no necessity for Import duties. If the Inhab tants of Lower Ca- nada think proper to dispense with direct Taxation, for the improvement of their respective Parishes or Counties, it is no injury to other localities — ihey will see the effects produced in other parts, and soon learn their true interests. The saving in the expenditure of the Provincial Government, although not inconsiderable, is trifling when compared with the main object in view It is alluded to for the purpose of proving that this incubus can be removed without impairing the efficiency of the Goverment, the credit of the Pro- vince, or the general interest of the public, naLfur thyrBWWwdiMniiillh it vulIiAfiAali. The object in view is far more comprehensive ; it aims at the emancipation of commerce and placing Canada in a better position than any other portion of America. By continuing Import duties, her Trade will continue to be diverted through other channels, in another country, which will create a revenue from Tolls on our products. Eoch succeeding year those revenues will increase in amount, and enable them to lesson Tolls, thereby increasing their means of competition and diminishing ours in the same proportion ; whereas by adopting the contemplated change, Canada would become one entire free warehouse. The absence of uU du- ties', all restrictions, detention, doubts and appehension, when known, would caAMfk shipments from all foreign Countries — not for the supply of Canada alone ; but for the supply of a Country, the extent of which can be reali- xad only by those who have witnessed its increase of population and pro« (iuetions for a few years past. The value of this Trade, provided ihe St. Lawrence is left to benefit from its natural superiority, as compared to other channels, unrestricted by the folly of Legislative enactments, cannot be estimated. The amo ..nt of revenue it will create from Tolls, which will be willingly paid by for. eigners, will in a few years far exceed the present revenue from Custo^ns, and relieve the inhabitants of both Upper and Lower Canada from every other Ta.\. ,^1,^ gy /.».< .,,■ The statements on which these changes are based will be before the public a sufficient time to give any individual an opportunity to ascertain their correctness. They aro selected from public documents open to all. The ensuing session will give an oppoi tunity for public discussion. They will not be denied : they may be evaded and misrepresented by narrow minded and interested individuals ; but they will receive the support of every man who can realize the effects they will produce. They may be retarded for a time ; but I have every confidence in the ultimate, result. I have the honor to be, Gentlemen, Your obedient Servant, St. Catharines, loth May, 1847. Wm. iiajmilton merritt. Tlio internal I of the Civil B to incur for iineiits, there r Lower Ca- improvement r localities — irn their true Bnt, although uject in view. 1 be removed t of the Pro- laiiMrBnlth if it aims at the )Osition than I, her Trade her country, ;h succeeding em to lesson iinishing ours [ated change, jnceof all du- inown, would ly of Canada can be reali* Lion and pro- left to benefit unrestricted The amount paid by for- rom Custo.ns, a from every be before the f to ascertain 3 open to all. ssion. They 3d by narrow the support of They may be laU). result. lERRITT. mmmnmum J^