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 5 
 
 6 
 
c 
 
 Int 
 
1 ' 
 
 THE FEASIBILITY 
 
 H 
 
 OF A 
 
 Commercial Union 
 
 BETWEEN THE 
 
 UNITED STATES AND CANADA. 
 
 [ Interview with Erastus Wiman in the 
 
 r 
 
 '' Chicago Tribune/" October 3, 1889. ' 
 
 NEW YORK: 
 
 NOVEMBER, 4889. 
 
1. 1 
 
 
 i 
 
 
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 i> » *■ 1) 
 
 ) \ 
 
 > 
 
 J -' I 1,1 33 
 
 4 
 
 ACi'in '^: 
 
 (, ^.4 
 
 
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',-r 
 
 THE FEASIBILITY 
 
 •,,T,-- ?■ 
 
 ■rl:bi;0\ 
 
 OF / 
 
 
 COMMERCIAL UNION.: 
 
 ,'.-'! * 
 
 
 
 
 [J^/'^m f/ie Chicago Tribune, Oct. 5, 1889.] 
 
 um. 
 
 l>rEW York, Oct. 3. — [Special Correspondence. J — A re- 
 presentative of The Tribune recently traveling- trom 
 Chicago to New York with Mr. Erastns Wiman, and, 
 acting under instructions, secured irom him an exhaustive 
 interview on the subject of closer commercial relations 
 between the United States and Canada — a matter the 
 iia])ortance of which is daily becoming more ai)parent to 
 the thinkiiig people of both countries. i^ i .? 4^ 
 
 ; A Mr. Wiman has perhaps as much as any other man in 
 cither country contributed to the growing desire on both 
 sides of the border for closer commercial relations. Born 
 and reared in Canada, he has resided in New York for tlie 
 last quarter of a century, and, althougli he has occupied 
 in that city the position of a public spirited and thorough 
 business man, he has not only retained his British 
 nationality, but an ardent admiration for the greatness oi' 
 his native country and its marvelous i)ossibilities for the 
 benefit of the United States if the customs line between 
 the two countries were obliterated. 
 
 '• First let me know, Mr. Wiman," said the reporter, 
 " what opportunities have you had to become informed 
 as to the desire of the Canadian people for closer com- 
 mercial relations with the United States ? " 
 
 " Prior to my becoming a resident of the United States, 
 twenty -five years ago, I had an unusual opportunity to 
 
The Feasibility of a Commercial Union, 
 
 become acquainted with a great many people in (Canada. 
 Having been commercial reporter for tire leading paper, 
 the Toronto Globe, and subsequently Manager of the 
 Mercantile Agency, it was my duty to travel throughout 
 the Dominion, and I thus came in contact with all the 
 leading business and public men of the country. Some 
 indications of the extent of my acquaintance may be 
 judged from the fact that in forty counties west of Belle- 
 ville, in Ontario, when 1 left Toronto, I had no less than 
 2,000 registered correspondents, with all of whom I was 
 on Terms of more or less intimacy, llemoving then to 
 Montreal, I became acquainted with the merchants of 
 that city and Quebec, and subsequently, to some extent, 
 with those in the Maritijue l^rovinces. Since coming to 
 New York I have maintained a large correspondence 
 with many of these, while, as President of the most com- 
 prehensive telegraph system of the Dominion, in con- 
 nection with the Western Union, and interested in nu- 
 merous undertakings, I suppose I have to-day a larger 
 personal acquaintance with leading people of Ganada 
 than any other Canadian outside of the Dominion. In 
 the meantime it has been my good fortune to make the 
 acquaintance of a great many people of the United States. 
 In the promotion of many enterprises, and in connection 
 with my own legitimate business of the Mercantile 
 Agency, the necessary acquaintanceship has been very 
 large, and I think I can safely say that few^ commercial 
 men in the country have a wider range of business con- 
 nections and acquaintances than myself. So that both 
 from a Canadian and United States point rc view, I 
 may certainly claim a wide range of knowledge as to the 
 views of the people of both countries." y 
 
 '< Do you believe that the Canadian people, as a whole, 
 
S' ■ 
 
 Canada DeHircs Closer Connection. 
 
 t 
 
 ♦ 'S 
 
 are sincerely desirous of a closer commercial relation 
 with the United States ? '' 
 
 " I certainly do believe/' replied Mr. Wiman, " that of 
 all things which a great majority of the Canadians desire, 
 the most important is, that they should have an open 
 market in the United States for their i)roducts, and that 
 they shonld be enabled to buy here in the cheaper manu- 
 factures which the United States can furnish and which 
 Canada requires, she at the same time supplying free raw 
 material which the United States needs, and Canada can 
 furnish, such as hunber, coal, iron, wool, lish, copper, 
 l)otatoes, barley, oats, etc. 
 
 ^^ \Vliy do you reach the conclusion tliat there is such 
 an ardent desire for closer commercial relations ? " asked 
 the reporter." 
 
 '^ Well, the experience of the Eeciprocity Treaty, which 
 terminated in 1865, was a great object lesson to Cana- 
 dians. During the ten years of that treaty no country in 
 the world prospered more than did Canada. Everythiug 
 that she had to sell was disposed of at the best possible 
 prices then prevalent, and to a near-by market, which 
 absorbed with rapidity and profit all that Canada had to 
 spare. The consequence was^ that every farmer in the 
 country, every fisherman, lumberman and miuer, was 
 benefitted, and throughout Ontario, especially, evidence 
 of this prosperity was seen on every hand, by the erec- 
 tion of substantial farm dwellings, barns, improved roads, 
 and the general thrift and prosperity of the country. If 
 such were the effects in ten vears of a free market for the 
 
 hi 
 
 natural products of Canada, sent into a market with con- 
 sumers only half as numerous as they now are, and with 
 manufactures not nearly so developed as at present, it is 
 easy to foresee that the consequences of an open market 
 
6 
 
 The Feasibility of a Comricrdal Union, 
 
 now would be even more advantageous. Those v/iio 
 have thought at all upon the subject believe that no 
 event, in the whole category of events, could occur whhih 
 would benefit a country so large, with products so 
 numerous, as to have a market so near by, among a peo- 
 ple so extravagant, and with means and facilities so 
 ready of access to them. There is liardly an article which 
 the farmer of Canada produces for which there would not 
 be a demand. From the little currants and berries in 
 his garden to the biggest horses which he breeds, the 
 production of every article would be stimulated, and a 
 price realized which would be much more satisfactory 
 than at present." 
 
 <* Would not this free introduction of agricultural pro- 
 ducts from Oana<la be disadvantageous to the American 
 producer of the same article ? " was asked. 
 
 <^ No more than would the production of a new State 
 be disadvantageous to the home producer," was the reply. 
 " The admission of Minnesota into the Union was not 
 hurtful to the average American iiroducer. It opened up 
 a new market for manufacturers, the producers of which 
 in their turn consumed the products of Minnesota. Michi- 
 gan has contributed more to the wealth of the whole 
 Union than almost any other State. The same objection 
 to the admission of Michigan, its enormous development, 
 and the growth of its commerce, might have prevailed as 
 now prevails against the admission of the commerce of 
 Canada, mth possibilities of even greater development, 
 and a larger consumptive demand for manufactures. The 
 development of the south shore of Lake Superior has 
 contributed enormously to the wealth of this country. 
 The success of the Calumet and Hecla. Mines has made 
 many Bostonians rich. The growth of productions in 
 
a 
 
 Political Union IHjJiculU 
 
 T. 
 
 iron has enriched ('Icveland and contiguous cities almost 
 beyond estiniato. Tlio deveh)pnient of the nortli shore, 
 of Lake Superior, altliough in Canada, wouhl have an 
 equally good effect if its trade and production were in 
 the hands of Americans, as it might just as Avell be, so far 
 as mining, manufacturing, and production areconc^erned." 
 
 ^^ You think, then, Mr. AViman, that there is in Canada 
 a sincere and irdent desire for the l)reaking down of the 
 commercial barriers ])etween the two peoples. If it were 
 understood tliat this ccmhl only be done by breaking down 
 tlie political barriers, do you think that desire would be 
 any less forceful?" 
 
 "The difficulties in the way of a political union," said 
 Mr. Winian, ''betwetm Canada and the United States are 
 veiy great, so great that it will take a lifetime to remove 
 them. The best evidence of the lack of desire for a x>olitical 
 union is shown that, notwithstanding the repeal of the 
 Keciprocity Treaty in 1805, and in the face of the fact that 
 its repeal was €^.ffected with the avowed purpose of forcing- 
 Canada into the United States, there was until recently 
 not the slighest indication of a desire on the part of the 
 Canadian people in favor of annexation. On the contrary, 
 from 1865 to 1885, — twenty years, — although the losses 
 from the repeal of Reciprocity were simply enormous, there 
 was not a whimper of discontent. The Canadians, relying 
 upon their own resources, and working for a national 
 development of their own, have absolutely shown less in- 
 clination to any i)olitical change than they did in years 
 previous to the Treaty." 
 
 ^"Is there not, however, a very considerable party in 
 Canada that really desire annexation to the United 
 States ? " was asked. 
 
 "There is in some quarters of the country a latent desire 
 
 jiJi i .HW 
 
 mmmmmmm 
 
8 
 
 The Feasibility of a Commercial Union, 
 
 for some political cUaiiK*', i^i^l it ha.s l>eoii allowed that if 
 a secret vote were polled, there would be a great many 
 people who would vote for Annexation ; but that there is 
 any party existing, as such, who favor it, is not the case. 
 Kot a single member of Parliament could be elected 
 on that platform, and it would be i)olitical sui(ndo 
 to the persons coucc^rned, if any organized attempt were 
 made to force annexation. There is no country in the 
 world in which there is more real political content- 
 ment than there is in Canada; and except for the 
 recent agitation in relation to the Jesuit (piestion, and 
 the indulgence in the liope that perhaps annexation won • d 
 relieve the non-Catholic provinces from what they consider 
 the incubus of Catholicism, there is no re^il tendency t/O- . 
 wards annexation. My own opinion is that, if annexation 
 is ever brought about, it will be the result of the growth 
 of a mutuality of interest, based on commercial advan- 
 tages, which can only be done by breaking down the 
 customs barrier between the two countries. For a hun- 
 dred years Canada has stood out against the supposed 
 attractions of the American Republic. She has mean- 
 while learned to take advantage of all the institutions of 
 a free government, and to av(Jid many of the disadvan 
 tages which, in this country^ that system of government 
 has produced. Her people are as free to-day as the people 
 of the United States, and having a responsible govern- 
 ment, with a majority of the people immediately reflected 
 in Parliament, the will of the people is really more imme- 
 diately expressed than in the government of the United 
 States. There is no interference whatever on the part of 
 Great Britain. The tie which binds Canada to the mother 
 country is one of pure sentiment. The obly visible sign 
 of connection is, that a Governor-General is selected and 
 
 ■TT H iBIT- , -— ^— — ■ 
 
British Connection Sentimental 9 
 
 sent out by the British goveniinent, his saUiry, eiiual to 
 that of the President of the United States, beinjf i)aid 
 by the Oanadians. There is reserved by the Imperial 
 government the imwer to alk)W or disuUow aets of legis- 
 lation, but this has never been exercised since confedera- 
 tion, and is not likely to be, unless wh€'n inten^sts of Great 
 Biitain are seriously imperiled. The same rate of duty 
 prevads in C^anada on goods imported from England as on 
 those imported from the United States or else'vhere. Kot 
 a dollar of Canadijin revenue goes to the Imperial govern- 
 ment, and not a dollar of Imperial revenue is expended in 
 Canada, except for purjmses of defence, and these have 
 now reached very small proportions. The relation be- 
 tween Canada and England, so iar as government is (ion- 
 cerned, is of the slightest charactc^r, while the j)ersonal, 
 business, and social relation between Canada and the 
 United kStates is fivefold what it is between Canada and 
 England." y 
 
 '' How do you account for the ftict that the personal, 
 business, and social relationship is so intimate between 
 (Janada and the United States, as compare^ with Eng- 
 land 1 -' asked the reporter. 
 
 *' SJmply l)y this fact," replied Mr, Wiman, <' at fully 
 one-fifth of the adult population of Canada are at present 
 resident in the United States; that Canada has con- 
 tributed to the United States a larger quota in proportion 
 to the population remaining in that country than any 
 other country, and that the amount of money remitted 
 Irom the United States to Canada, through contributions 
 to those that are left behind, coupled with the amounts 
 paid to Canadian radroads for freight, by tourists, for 
 pleiisure, and by direct importation and exportation, 
 amounting to nearly one hundred millions of dollars, the 
 
 mmm 
 
wm 
 
 10 
 
 The Feasibility of a Commercial Union. 
 
 relation is really more intimate between the two countries 
 on this continent than between Great Britain and her 
 colony." 
 
 " Is there much American capital invested in Canada ? " 
 was asked. 
 
 f 7<^ The amount of American capital invested in Canada 
 is ill very small proportion to the amount of English 
 capital ; still, the American capital is constantly increas- 
 ing. Three-fourths of the lumber mc^nufacturers in Canada 
 are Americans, and the total amount realized for lum- 
 ber since the repeal of reciprocity by the American gov- 
 ernment (which perhaps would amount to twenty millions 
 of dollars) has been paid by Canadian Americans, into 
 the American treasury, for use by Americans, and has 
 been no more needed by that treesury than five wheels 
 to a coach. There are quite a number of American manu- 
 facturers in Canada, and several of her railroad systems 
 are owned or controlled by Americans ; but tl)e bulk of 
 the capital employed in (".anada belongs to Great Britain. 
 It is estimated that, including the public debt, the rail- 
 road exxienditure, the liiortgage indebtedness, the bank 
 capital, and the municipal and other bonds absorbed in 
 England, the amount of English cai)ital invested in 
 Canada foots up 650 millions of dollars. This, even at 
 four per cent., would show over 20 millions of dollars as 
 the yearly tribute which Canada is paying to Great 
 Britain, and which absolutely absorbs more than twice 
 the surplus of her wheat crop, which is sui>poise<l to be 
 her principal product. England levies this contribution 
 from her colony as she does (contributions from all the 
 rest of the world j and this continuous volume of interest 
 which she thus levies accounts for the vast accumulations 
 of capital in London, and for the necessity which exists 
 
 tmmjMMmut 
 
Reciprocity Impossible. 
 
 11 
 
 I 
 
 I 
 
 that it should be re-invested on this continent as the only 
 repository for its future safety, and its reproduction of 
 profit." ,i 
 
 *^ What evidence have you that Canada wants a closer 
 relation with the United States ! " was asked. 
 
 ^^ One evidence is the fact that even the Tory govern- 
 ment of Canada endeavored to fierce that connection by 
 a very obsolete interpretation of the Fisheries Treaty. 
 Evidently the object of that interpretation was, to offer as 
 a price for fishing privileges, the admission of free fish 
 into the United States, and also the free admission of 
 raw material, such as agricultural products, lumber, 
 ores, salt, and other articles. But the United States 
 Congress were not to be driven into such an arrangement. 
 The sentiment in The United States against a Eeciprocity 
 Treaty on the old line of an exchange of natural products 
 seems well nigh universal, and it is dilhcult to see how a 
 Reciprocity Treaty of this limited character can be justified. 
 Canada could not possibly absorb anytliing like the amount 
 of natural products from the United States timt the United 
 States would absorb from Canada. The treaty was with 
 difficulty justified, even up to 18()5, before the manufac- 
 tures of the United States had developed to anything like 
 their present state, and before the vast agricultural regions 
 of the West had been as fully developed as now. But 
 with a tremendous over-production in manufactures, and 
 an almost equally great growth in agr' ultural areas, 
 there could t)e now no justification for an interchange of 
 natural products only between the two countries. Canada, 
 it would seem, must pay the penalty of her geographical 
 position, situated as she is alongside of the United States, 
 in comparatively the same climate, and producing almost 
 identically the same articles. If she needs a market for 
 
 •mrmmmmmmmfttKnm 
 
 MMMMMaMMMIM 
 
l2 
 
 The Femibility of a Commercial Union 
 
 ii 
 
 her raw material and her natural products, she must 
 afford a market for the products of the industry which 
 this raw material and agricultural supplies create. Of 
 course Canada would like a re-enactment of the old lle- 
 ciproeity Treaty, and indeed the policy of the government 
 and of the manufacturers' party in Canada is to wait until 
 the force of public opinion in the United States causes the 
 repeal of the duty on raw material, and on such essential 
 articles as iron ore, salt, lumber, fish, barley, and such 
 other articles. That once granted, Canada would prosper, 
 but there would be no market created for American manu- 
 factures, as the quid pro quo for the free admission of 
 these articles. A favorable consideration of the com- 
 mercial arrangement is solely the condition that the men 
 who produce this raw material and these agricultural 
 products should become customers of the United States, 
 and that, so far as trade and commerce are concerned, the 
 people of Canada should be of as great advantage to the 
 manufacturers of the Eastern States as the farmers, 
 miners and producers of the Western States have 
 been." 
 
 " llow do you propose, Mr. Wiman, to accomplish this 
 plan of interchange of free raw material and agricultural 
 products from Canada on the one hand, and the absori)tion 
 of American manufactures by Canadians on the other, if 
 there is no political annexation?" 
 
 "Well, it is proposed to accomplish it very much the 
 same as in th case of the German ZoUverein. Here were 
 a group of S tes, around every one of which there was a 
 customs line. This they agreed to abolish, and instead of 
 having half a dozen customs lines athwart the country, 
 they simply lifted them up and put them right around the 
 country, and created what is known as a Commercial 
 
 : 
 
 fWW,K»»"P3SWW;;i 
 
Betv^een the United States anl Canada, 
 
 13 
 
 Union. There is no difference wiiate; er, so far as trade 
 and commerce are concermnl, between commercial nnion 
 and political nnion. If n Coiiimercial Union were creat-ed 
 between Canada and the Unite I States, trade wonld be 
 just as free and unrestrained between tli>: two countries as 
 it is now between Illinois and Minnesota, or between 
 Massachusetts and New York. So far as advantages are 
 concerned to the manufacturer in the United States, by 
 the creation of new markets, by supx)lies of raw material 
 and cheapened food, they would be just as great under 
 Commercial Union as under Political Union. The reso- 
 lution which was introduced by that able statesman from 
 Illinois, Hon. Mr. Hitt, and which was passed unanimously 
 by the House of Eepresentatives at the close of the last 
 session, opens the w^ay for an inquiry into the possibilities 
 of a Commercial Union. The resolution was in these 
 w^ords: 
 
 ^^ Resolved hif the Senate and Home of Eejyreaentatives of the United 
 Siatesy etc., That whenever it- shall be daly certifiod to the President 
 <»f thti« United States that the Government of the Dominion of Canada 
 has declared a desire to establish commercial nnion with the United 
 States, having a nniform rev^enne system, like internal taxes, to be 
 coIUicted, and like import duties to be imposed on articles brought 
 iuto either country from other nations, with no duties upon trade 
 betweeu the United States and Canada, ho shall appoiut three com- 
 uilssioners to meet those who may be likewise designated to represent 
 the Governmeut of Canada, to prepare a plan for the assimilation of 
 the import duties and interual revenue taxes of the two countries, 
 and an equitable division of leceipts, in a commercial union ; aa<i 
 said commissioners shall report to the President, who shall lay the 
 report before Congress." 
 
 "The resolution, though it passed the House unani- 
 mously, failed by one objection in the Senate. If it 
 should again, however, pass the House of Representa^. 
 
cy 
 
 14 
 
 Its Practical Operation 
 
 tives, and also be enacted by the Senate, it would open 
 the "vvay for an investigation as to whether or not this 
 plan of a Commercial Union could not be made effective." 
 
 '^ Briefly stat« your conception of the working opera- 
 tions of a Commercial Union f " was requested^ 
 
 ^' My idea of the operations of a Commercial Union," 
 said Mr. Wiman, '^is that by concurrent legislation, in 
 which diplomacy had nothing whatever to do, a uniform 
 tariff should be adopted both by the Congress of the 
 United States and the Dominion Parliament of Canada. 
 That Canada should agree to always have the same tariff 
 as the United States, and the same system of Internal 
 Revenue. That this tariff should be administered by a 
 joint commission, of which the majority should of course 
 rest with the United States. That the duties collected at 
 the ports of the United States and in Canada, as at Bos- 
 ton and at Montreal, should be jjrecisely the same. That 
 the total sum realized from import and internal revenue 
 duties should be pooled j that the (jost of their < ollection 
 should be apportioned according to the amounts collected j 
 and that the residue should be divided in proportion to 
 population. That there shoidd be no barrier whatever to 
 the trade between the twt countries, and no duties col 
 lected on the i)roducts o^ manufactures of each. That 
 the oidy customs line, so far as the continent of Kortli 
 America is concerned, should be right around the conti- 
 nent, and not across it ; and that the political barriers, 
 so far as affects trade and commence, shouhl l)e unknown. 
 This kind of commercial partnership would accomplish 
 precisely the same, so far as the manufacturer, trader, 
 merchant and banker is concerned, as would political 
 union. My deliberate judgment is that this partnershii) 
 can be a^^complished inside of five years, while the same 
 
 jiMaiiiiJil 
 
 -;! ■ !» il"^" 
 
Beticecn the United /States and Canada, 
 
 15 
 
 result for trade and eoinmerce could not be accomplislied 
 hy annexation in fifty years. 
 
 " What makes you tliink that the majority of the (Can- 
 adian people would consent to a Commercial Union of 
 this khid V asked the reporter. *^ Do y(m think, for in- 
 stance, that they would part with their right to regulate 
 the tariff, and that they would ever agree to admit Amer- 
 ican goods free, while they continue to charge a high 
 duty upon English goods, a duty the extent of which is 
 to be practically regulated by the American Congress f 
 
 " I adm. that it does look improbable," said Mr. Wiman, 
 ^^ that the Canadian people would agree to part with their 
 right to regulate the tariff; but the fact is, there would 
 be very little tariff left to regulate. Moreover, the prac- 
 tical result of Commercial Union, worked out to its 
 legitimate effect, would be that the Canadians would be 
 in a position no more inconsistent than that which they 
 now occui)y. For instance, the amount of duty which 
 the United States Treasury collects on Canadian pro- 
 ducts approaches millions of dollars annually. Nearly 
 all these products are of precisely the same nature as 
 American products, and enter into competition at the 
 price fixed by the American article. The consequence 
 is that tl^e Canadians pay this 6 millions of dollars ; they 
 pay it under a tariff regarding wlrich they have nothing 
 to say, and whicli they do nothing to regulate. More- 
 over, they pay it into a treasury foreign to themselves, and 
 out of which they get not an iota of benefit. Practically, 
 every man, woman and child in the Dominion is paying 
 $1.50 a year to the American government. Now, under 
 Commercial Union this duty would be entirely obliterated, 
 the United States would not charge anything on Cana- 
 dian products, the 6 millions which the Canadians pay 
 
 .ifiiiiifiili 
 
 "iiHTrrrTin- 
 
 iiimiTriri 
 
 muumaiilim 
 
16 
 
 The Feaaibilify of a Commercial Vnion. 
 
 v,^ 
 
 would disappear from tlie Treavsury receipts, and the 
 Canadians would be relieved from the payment of it. 
 Again, the duties which now exist, and are paid by Cana- 
 dians on all articles tbat are imported from the United 
 States, would also be obliterated. The tariff of duties on 
 these the Canadians now regulate; but if the duties 
 ^entirely disappeared, the necessity for rfegulating them 
 would also disappear. The amonnt of this duty is prob- 
 ably about 12 millions of dollars a year. This being- 
 obliterated by Commercial ITnion, the necessity for the 
 regulation of any tariff whatever on more than one-haif 
 the goods now imported by Canada would vanish. But 
 if there were no duties prevailing at all in Canada as 
 against the America ii goods, while \\\^ duties still pre- 
 vailed against English or foreign goods, there would be 
 an enormcms increase in the American output. At i)re- 
 sent the importations from England by Canada amount 
 to about 50 millions a year. It is safe to say that if 
 there were no duties on American goods this would l)e 
 cufc in two, and the English, French and other importa- 
 tions would be reduced to about 25 millions. It would 
 be on this amount, and this amount alone, so hir as Can- 
 ada is concerned, that she would have to exact any duties, 
 and it would be the regulation of the tariff on this paltry 
 sum of 25 millions that there could be anv fuss about. 
 This would be, say even at 30 per cent., about seven mil- 
 lions of dollars. This seven millions is an amount 
 almost equaled by the import duty now paid by the Can- 
 adians into the United States, the regulation of which 
 they have nothing to say about. The practical result 
 would therefore be, that so far as regulation of tariff is 
 concerned, she pays as much duty now into the United 
 States Treasury, without regulating that tariff*, as she would 
 
The Regulation of the Tariff, 
 
 17 
 
 tlieu piiy into the joint treasury, even jidmitting- tliat by the 
 
 minority of her popuhition she would have little or no intlu- 
 
 ende in the regulation of the aiuoimt. The ]),()sition of 
 
 (Jauada in tiiis respect would practically l>e very little 
 
 ditferent from what it is now. It might be said that if 
 
 she regulated her own tarift* under the Commercial Union, 
 
 each man, woman and child in the Dominion would have 
 
 to pay $1.25 or $1.75 per annum, as the case might be ; 
 
 while if it were fixed by the United States in the manner 
 
 proposed, each num, wcmian and child might have to pay 
 
 $1.50. It is just the dittereuce that each government might 
 
 exact, and would be about the same amount in any case. 
 
 It is simply the duty otregulating whiit that amount shall 
 
 be. . Certainly nothing would be done in the United 
 
 .States Congress adverse to Canadian interests if the tariff 
 
 were always to be uniform ; t()r what was advantageous to 
 
 JVlassachusetts and Maine would be advantagtMnis to the 
 
 Maritime Provinces. That which would help New York, 
 
 Pennsylvania and Ohio, would be good for Quel>ec and 
 
 Ontario. All tarift' legislation that AV^ould contribute to 
 
 the growth of Minnesota and Montana, would be equally 
 
 beneficial to Manitoba and the Northwest Territories ; 
 
 while that which would benefit the Pacific Coast could not 
 
 fail to heliJ British C'Olumbia, equally with California and 
 
 Oregon." 
 
 "You then think the Canadians would really agree to 
 the United 8tates regulating a tarilf which should be 
 cont iQntal in its ai) plication f was asked. 
 
 " Yes ; I think they would, because this is the penalty 
 of their geographical location,^' replied Mr. Wiman. 
 "They have either got to do without the United States 
 market, w^hich is a serious deprivation, and without 
 wbich tlnir country cannot be developed ; or they have 
 
 iiiriiiiSiiAi. 
 
 ^>j -i.t^i.i^JV'^""' ' 
 
•^ 
 
 18 
 
 The feasibility of a Commercial Union, 
 
 jtrot to part with tlieir political independence, which they 
 wonkl be reluctant to do. The only middle course is that 
 of Commercial Union, and I believe that at the next gen- 
 eral election, if the resolution of Mr. Hitt should pass 
 both branches of the Natiorial Legislature, and a readi- 
 ness thus shown for an intimate arrangement, as this reso- 
 lution calls for, that a Parliament would be elected which 
 would respond to that invitation in terms so pronounced 
 as to eventually result in a Commercial Union, and that 
 within a v€».ry short time." 
 /\ '^ What makes you think that a Parliament would be 
 elected that should have a Commercial Union com- 
 plexion ? " was asked. 
 
 "Well, in the first place, all the recent by-elections 
 have been carried by what is known as Unrestricted 
 Reciprocity candidates. Even in Tory constituencies the 
 revoluaon of feeling in this respect is very great. Beyond 
 all quv^stion, there is a steady tendency in the Canadian 
 mind towards a better relation with the United States. 
 At any rate the experiment might be tried with very 
 little cost to the American i^eople. It would be simply 
 the passage of this resolution of Mr. Hitt's, and an offer 
 to appoint commissioners to negotiate an arrangement 
 for the aj)i)rOval of Congress. Congress would certainly 
 approve a policy which could be shown to be so eminently 
 advantageous to the people of the United States, and 
 equally advantageous to the people of Canada. The 
 main reason why there is hope in Canada for Commercial 
 Union is that the vast majority of the voting power in 
 the Dominion is made up of farmers, their sons, farm 
 hands, and the men dependent on them, such as proprie- 
 tors of country stores and their clerks, wagon makers, 
 cabinet makers, saddlers, blacksmiths, etc., and the agri- 
 
 - :^ssssstr::mam 
 
 mam 
 
The Canadians Benefitted. 
 
 19 
 
 cultural populace and their dependents generally. These 
 would all be greatly benefitted ])y an open market in the 
 United States for the products, of the fariu. The cultiva- 
 tion of these products AVould be stimulated to double 
 their present extent, especially in the vicinity of manu- 
 facturing centres in the United States, in the minor pro- 
 ducts (rf the farm, such as poultry, fruits, lambs, oats, 
 potatoes, the smaU r grains, etc., in all of wl.ich there is 
 more profit now than in ban filing wheat, beef, and other 
 products exported three thousand miles away, at heavy 
 cost, to Great Britain, there to compete with almost every 
 country in the world. In addition to this large farmer 
 constituency who would be greatly benefitted by a free 
 admission to the ilmerican market, are the lumber 
 dealers, who, with their employees, are a solid phalanx 
 to beget a freedom to the (mly market that is available 
 to them. Add to these the fishermen, whose industry 
 would be greatly stimulated by the free admission offish ; 
 the shipping interests, which would be enormously ad- 
 vanced by the necessary amendment to the coasting 
 laws ; and, above all, the miners, who in iron ore, copi)er, 
 coal, and other products, under existing circumstances, 
 have a practical exclusion from the best market the world 
 affords. All these classes, massed together, would have 
 an enormous advantage by an open market with the 
 United States. To believe that they would for all time 
 deny themselves these advantages for the mere sake of 
 saying or regulating whether they shall be taxed $1.50 or 
 $1.75, is to consider fin improbability. The question of 
 the regulating of the taritf is a sentimental one. The 
 people themselves, who pay the taxes, have little or 
 nothing to say as to what the tarifl: shall be on the various 
 articles under existing conditions. Mr. Eedpath, the 
 
 ww wai i it ii . ii i ii» w « i 
 
20 
 
 The Feasibility of a Commercial Union 
 
 great sugar reflnor in Montreal, has done more to regu- 
 late the tariff on sugar wliich he manuta<5tures, than all 
 the farmers in Canada j)ut together. Tlie men who run 
 the eotton mills make tlie tariff on eottons, wluch the 
 farmers consume, and not the farmers themselves. The 
 farmers of Canada are beginning \o realize this fact, and 
 at the next general election, wMch takes place ivithin two 
 years, if the United States will simply invite the voters, 
 under the terms of the Hitt resolution, to a consideration 
 of tlie (luestion of Commercial Union, my firm belief is 
 they will respond by electing member.? to the next Parlia- 
 ment who will be willing to treat on that question. The 
 advantages are so enornnms, the sacrifices ate so small, 
 that it seems incredible tliat the farmers, heavily taxed 
 as they are, with a large mortgage indebtedness, with in- 
 creasing store bills and steadily declining values, with 
 their productions limited within narrow range, and their 
 future full of uncertainty, will hesitate, if the (piestion is 
 squarely put to them, whether they are willing to obtain 
 all the advantages of the best market the world affords 
 on the one hand, or, on the other, by <3enying themselves 
 of that privilege, ('ontiiuie to be governed by the local 
 manufacturer." for their own benefit." 
 
 ^' You have said nothing as to the sentiment which ex- 
 ists in Canada as to a discrimination against English 
 goods in favor of American wares, which would be the 
 case under a CommerciM U nion, wh«>reby American goods 
 were admitted free, and those from England taxed.^ 
 
 To this important query Mr. Wiman replied:' "It 
 would be a question for the Canadian farmer to decide, 
 whether he is willing to sacrifice himself for the benefit of 
 the English manufacturer. If the cost of getting admis- 
 sion into the American market for his products was the 
 
Dincrimination Against English Goods. 
 
 21 
 
 free admission of American iiianufactnres into the Cana- 
 dian market, and the c^xclnsion by duty of Englisli goods, 
 there is hardl.y any question but what the Oanndian fanner 
 would preft^r his own interest to that of the British manu- 
 faeturer. Even under existing eircnmstances, notwith- 
 standing tlie uniform duty which prevails as against 
 English and AnaTican goods, there are more vVmericun 
 goods imported than British, while the rate of duty <m)1 
 lectod is between two and three per cent, h^ss on Ameri- 
 can goods than on English goods. Thereascm for this is, 
 that a larger /luimber of goods on the free list are brongiit 
 from the United Htates tlian from England ; so that the 
 practical effect of the existing tariff, regulated as it is by 
 the Canadians, is a discrimination against English goods. 
 This, too, without any compensating advantage what- 
 ever to Canada, which would result from the free admis- 
 sion of American goods into ('anada, as the price for the 
 free admission of Canadian products into the United 
 States. There is a good deal of loyalty in Canada to 
 British institutions and to Her Majesty, but the loyalty 
 does not extend to the personal and individual interests 
 of English manufacturers, to the sacrifice of those of the 
 Canadian farmer. So far as a discrimination against 
 English goods is concerned, it is no reflection upon I'^ng- 
 lish institutions, or a loss of loyalty to them, that would 
 induce a Canadian farmer to prefer prints from Providence, 
 duty free, at half the price, to prints from Manchester, 
 against which a duty would be levied, and w hich would, 
 therefore, be at twice the price. The individual interests 
 of the various classes of British subjects is the question 
 at issue — not the question of loyalty or disloyalty. It 
 the question of loyaltj' animated the Canadian farmer to 
 the extent which opponents of Commercial Union allege. 
 
 u tm A m im 
 
 1 1 1 ir T «ir«i iiipifiiB.iini^i>iir iiii imi'V^ it t'lir' ""v -uTTgririiigiiaritiitfBiii 
 
22 
 
 The Feasibility of a Commercial Union. 
 
 ^ they woulil not buy a dollar's worth of American goods, 
 but would confluo themselves to eiitibg, drinking and 
 wearing the goods produced by liritish snbje-cts. As to 
 the qnestion of discrimination, it is true that it would look 
 somewhat anonialon» io see one part of the British em- 
 pire levying a tax upon goods from another part of tho 
 same cnipire, while admitting the goods of a foreign and 
 commercially hostile nation tree of duty. But the lioerty 
 which England has given to her colony in this respect 
 has already been availed of to the extent that, while the 
 colony exacts a duty on English goods under existing cir- 
 cumstances, she thereby encourages the production of 
 goods manufactured within her own borders, thus dis- 
 criminating against English goods in favor of her own 
 people. If, by an extension of this liberty, she admitted 
 American goods free, and created markets for her pro- 
 ducts, in Chicago,Providence, J^oston, and Cincinnati and 
 other places, she would be only exteiuling her home mar- 
 ket for the absorption of Canadian products, while avail- 
 ing herself of the advantages of cheap productive forces 
 and lessened cost of freight, by absorbing American goods 
 instead of English wares." ^ 
 
 ^' You, then, thinii that the question of the regulation 
 of the taritf by the Americans, the parties benefitted be- 
 ing so largely in the majority, and the question of dis- 
 crinnnation against English goods, Avould not prevent the 
 Canadian electorate from returning a Parliament in favor 
 of Commercial Union ? " was asked. 
 
 "After the most careful and deliberate examination of 
 the subject," replied Mr. Wiman, "its discussion with a 
 great many people in various walks of life, and an acquaint- 
 ance with the real public sentiment which prevails, not 
 in the newspapers, but among the people at large, my 
 
Great Britain's Coment, 
 
 23 
 
 conviction is, that if the (Tuited States Congress will but 
 pass the Hitt resolution, and the question is fairly presented 
 to the Canad^n publh^ at the next /general election, which 
 will occur within 18 months, a Parliament favoring Com- 
 mercial Union vill be elected; and that, by concurrent 
 legislation, rather than by a treaty with England, the 
 purposes sought by those who seek unrestrained relations 
 between the two cjountries, will be achieved." 
 
 *' Suppose your diagnosis i3 correct, and that a Com- 
 mercial Union Parliament were elected, and Commissioners 
 appointed to confer with the United States, could this 
 be done without the consent of Great Britain?" was 
 asked. 
 
 "Theoretically, no," was the reply of Mr. Wiman, " Up 
 to this time, as I have before stated, pjugland has not ex- 
 ercised lier power of disallowance on any Act of legislation 
 by the Canadian I'arliament. Even when the tariff of 1 878 
 was enacted, by which English goods, such as cotton and 
 sugar, were taxed almost out of sight, the English govern- 
 ment did not interfere. Sir John Macdonald, the leading 
 Tory loyalist of the country, when the question was asked 
 whether British connection would not bo imperilled by 
 this discrimination against English goods, and whether 
 Great Britain would not interfere, remarked that if the 
 connection was interfered with, ^ so much the worse for 
 British connection.' It is just possible, that inasmuch 
 as the measure enacting Commercial Union i)roposes that 
 English goods should be taxed and American goods ad- 
 mitted free, that the Governor- General would deem it 
 sufficiently important to withhold his consent, and send 
 the measure to the Imperial government for allowance or 
 disallowance. If the Imperial government, after a full 
 representation by a comuuttee from the Dominion Parlia- 
 
 tmm 
 
 mHim 
 
 ■KHPM 
 
 wmmm 
 
24 
 
 The Feasibility of a Commercial Zhiion, 
 
 \ 
 
 meiit, withheld its consent from a perfect freedom, of com- 
 merce between the llnited States and Canada, and if 
 therv'i was thus a disposition shown to sacrifice the interests 
 of the Canadian farmer, lumberman, fisherman and miner, 
 for the benefit of the English manufacturer, the case would 
 seem so hopeless to thinking Canadians, that there would 
 be an immediate and rapid growth in the Annexation 
 sentiment, and more would be done by that act of dis- 
 allowance to sever the tie which binds Canada to Great 
 Britain, than nlmost anything else that could occur. But 
 the general opinion is that Canada Avould be allowed to do 
 as she chose in a matter so peculiarly affecting her vital 
 interests, and that England would within a short time 
 consent to the concurrent legislation necessary to bring 
 abcmt a perfect Commercial TJaiion between the two coun- 
 tries. The great advani age of this jdan is, that to make 
 it effective requires no tr(»aty, nor dii)lomacy ; that England 
 is not brought at first into the matter at all; but that by a 
 simple act of Canada on the one hand, and the United 
 States on tlie other, such a commercial partnersliip is 
 created as will vastly benefit the interests of both countries. 
 At any rate, the exi)eriment might be tried by tlie United 
 States. The Hitt resolution, if passed, binds them to 
 nothing except the willingness to make an arrangement if 
 Canada provides the necessary facilities for it, and ex- 
 I)f esses an opinion favorable to it. Neither is Canada 
 bound until these Commissioners report and Congress 
 takes action. The Hitt resolution is simply a step in the 
 right directiou, but it is a ste}> full of the greatest signifi- 
 cance to both (H)untriea." 
 
 '* Suppose the British Government consented to the 
 arrangement by which American goods were admitted 
 free and English goods taxed, and a markelpfcreated for 
 
 ??. 
 
 ■— **« 
 
The roUlical Effect. 
 
 91 
 
 Canadian goods in the United States, what would be the 
 consequences to Canada f " 
 
 " The consequj^nces of a free admission into the United 
 States of Canadian goods woukl be to stimuhite enor- 
 mously the growth of Canada. She would grow with the 
 same rapidity as have the new States, became her de- 
 velopment would have the largest scope. In this, beyond 
 question, the American people would participate, and to 
 accomplish it they would be the practical instrumentality. 
 The result would be that in the course of live, ten or 
 fifteen years, a large influx would take place of an Ameri- 
 can element into Canada, and tliis would have su(5li an 
 influence upon legislation as to shape and mould the 
 future policy of the country. If at the end of ten or 
 twenty years, annexation Avas deemed advisable, it could 
 be efl'ected much more readily than under existing circum- 
 stances. The advantages of personal contact with the 
 Americans, the enlargement of commerce and trade be- 
 tween the two countries, a more thorough knowledge of 
 American institutions, a participation in their banking- 
 facilities, absorption of their capital, and the freest inter- 
 course in social relations, by intermarriage, etc., and, 
 above all, the beneficial results of American energy and 
 American enterprise, upon the latent resources of Canada, 
 would certainly enlarge the chances of a political union 
 if euch were then determined upon, so that a Couimercial 
 Union may be considered a direct contribution to political 
 union, if that was considered desirable." 
 
 '* But are there not those who think precisely the oppo- 
 site — that if Commercial Union were granted to Canada, 
 and all the advantages to her material interests of a union 
 with the United States conveyed thereby, she would not 
 
 '-'9mf9>vmHmmi 
 
26 
 
 The Feasihilitjf of ii Commercial Union. 
 
 seek political union; and that in granting Commercial 
 TJnioa political union is indefinitely postponed I" 
 
 '^ Yes, undoubtedly ; and I honestly believe that the 
 truest loyalist to British institutions in Canada to day is 
 the most ardent Commercial Unionist. There is no argu- 
 ment in (Canada of any weight whatever in favor of Com- 
 mercial Union, except the argument of material advantage 
 which would flow fi'om it. If that advantage can be got 
 while maintaining her political autonomy, and avoiding a 
 political complication with this country, there is no argu- 
 ment in favor of annexation. At the same time it might 
 be that the advantages to Canada in the future would 
 develope in such a way as to make it important to her 
 that a j)olitical union should be brought about ; but the 
 future should be left to take care of itself. Canada will 
 never be forced by the United States into a political 
 union. If she is absorbed and assimilated, it will be the 
 result of % gro^vth of mutual interest, not an indulgence 
 in a retaliatory i)olicy, not the result of conquest nor 
 forcing of any kind. Such an attempt would defeat itself; 
 and the United States do not want Canada bad enough 
 to attach to itself a Poland on the north, or any stretch 
 of territory the people in which are not in entire and 
 hearty sympathy with them." 
 
 " In your contact with the business men of the United 
 States, have you met many who are favorable to^ annex- 
 ation with Canada ? " 
 
 " Yes ; it is almost the universal sentiment that the 
 annexation of Canada is the right thing ; but a very 
 little explanation completely changes the sentiment. 
 When it is poinded out that all the advantages of trade, 
 all the profits therefrom, and all the increased demand 
 for manufactures are created by Commercial Union, with- 
 
 t 
 
 l«MMi 
 
The Undesir ability of Annexation, 
 
 27 
 
 out the disadvantage of a Political Union, the business 
 men of the United States, so far as I have met them, 
 take favorabjy to the former. There are difficulties that 
 would arise in a political union that the Canadian sees, 
 which a resident of the United States does not. For 
 instance, the development of the French Roman Catholic 
 Church in Quebec is a serious consideration for the 
 American people to contemplate, if Quebec is to be 
 admitted as a State. The growth of the influence of that 
 church in Massachusetts, and indeed throughout Kew 
 England, coupled with the foreign Irish vote, already 
 excites anxious attention. If under annexation Quebec 
 were to be admitted as a State, she would have the right 
 to establish a State church, and as her population is nine- 
 tenths French, and nine-tenths Catholic, she would have 
 an organized force within herself, from which might 
 emanate influences throughout the Union that would 
 create some api)rehension. At the period of the cession 
 of Low^er Quebec to Great Britain the French population 
 was 70,( KK). To-day they number in that Province 
 1,200,000, in the balance of the Dominion 300,000, while 
 in the United States they are estimated to reach 1,000,000, 
 so that there is a total French Roman Catholic population 
 on the Continent of 2,500,000, indicating a growth in the 
 last one hundred and twenty-five years of a most extra- 
 ordinary character. This growth equals twenty-five jjer 
 cent, per annum, which, at the same ratio of progression, 
 would in fifty years make a French Roman Catholic pop- 
 ulation in this country, if Quebec were admitted as a 
 State, of betweeu 15 and 18 million people. If the United 
 States desires to repeat the experiment of the Irish vote, 
 and be practically ruled by a foreign element ; and if a 
 union of this class and the French should be effected, 
 
28 The Feasibility of a Commercial Union. 
 
 the (lesceiidaiit of tlie native American niiftlit in titty 
 years become almost politically extiTUjt, so far as in- 
 fluence is coucerned. There are other antagonistic; ele- 
 ments in Canada, which it w oidd take a long time to 
 assimilate. There are a sntftcient number t)f problems 
 already lu'essin^" for solution with the Ameri(;an people, 
 without assuming an additional territory equal in extent 
 to their present area, and taking within their fold a 
 people wiiose. political affinities and education are some- 
 what different from those prevailing here. If all the 
 advantages of a commercial relation could be got without 
 assuming these political burdens, it wcmld seem the truest 
 wisdom to adopt that policy, at any rate as an alternative 
 or ex})erimental one." 
 
 "What advantage would come to the United States 
 from a Conmiercial Union with Canada?" 
 
 "In the lirst place there w^ould be a market among 
 live millions of people of precisely the same tastes, absorb- 
 ing the same kind of goods, as in this country. The 
 United States are making strong efforts to extend trade 
 with South and Spanish America. There is among all 
 these nationalities combined a population of 55 millions 
 of pe4^)ple, absorbing at present American goods to the 
 extent of GO millicnu; of dollars per annum. There is in 
 Canada a popidaiion of five millions, who are now con- 
 suming American goods to the extent of 50 millions of 
 dollars i)er annum — a people w ith the same Language, the 
 same laws, the same literature. If by a single act of Con- 
 gress the tariff of the United States coidd be made to ex- 
 tend right around the continent, so as to enormously in- 
 crease the area of her commerce, it would seem to be the 
 wisest jjolicy to adopt, Another great advantage to the 
 United States would be that she could procure in many 
 
 \ 
 
Duty Only Ten C^ts per Head. 
 
 29 
 
 articles an abiuidaiit Hui^ply of free raw material. This is 
 especially the case in iron, from Nova Bcetia, and indeed 
 from all parts of the Domiiuon; coal, coke, wool, lumber, 
 and all kinds of fish, and cheapened food, especially for 
 New England localities. The sacrifice so far as the 
 United States is concerned is very slight. To-day the 
 amount of duty collected hy the United States Treasury 
 on Canadian products, nearly altogether on ra-w material, 
 approfiches six millions of dollars per annum. This is at 
 the rate of less than ten cents a head for the population 
 of the United States. For this trivial, insignificant sum, 
 the manufacturers and traders of the United States are 
 shut out of an area of trade almost equal to their own, 
 wliile many of their manufactures languish because of in- 
 ability to compete, owing to the tax on raw material. By 
 Commercial Union a great number of important articles 
 could be got from a near-by source of sui)i)lyj while at 
 the same time the ,mtni wlio produce these articles could 
 be made consumers of American manufactures. A ('om- 
 mercial Union with the greater half of the continent 
 would sim])ly meaii an extension of trade as in a new 
 State or Territory, without political complications, with- 
 out any financial sacrifices worth naming, and with an 
 absolute advantage to all concerned." 
 
 ' Of course you noticed, Mr. Wiman, that at tlu^ re(5ent 
 session in Boston of Mr, Hoar's Committee on Canadian 
 Relations, there \\eve many opinions favorable to a re- 
 newal of Eeciprocity , while serious doubts were expressed 
 as to the feasibility of Commer(aaI Union. What have 
 you to say to this evidently growing demand for "Reci- 
 procity in preference to Commercial Union ? " 
 
 ^'If the reciprocity advocated before Mr Hoar's com- 
 mittee," replied Mr. Wiman, "is that which is to be eon- 
 
mm 
 
 30 
 
 The Feasibility of a Comniercial Union. 
 
 
 fined only to natural ])roducts of Canada and the TJnitod 
 States, on the lines of the old treaty, of course Canada 
 would jumj) at it. Tlie Tory i>arty, as well as others in 
 Canada, woidd most gladly ac(;ei>t this, because Canada 
 would thereby secure a boon of inestiniable value without 
 the slightest sacritu;e, or indeed the slightast return ex- 
 (jept as affording a free market for a small supply of corn, 
 coal and cotton. The i)ossibility of renewing that kind of 
 jug-handled reciprocity, as it is called, is exceedingly 
 remote, when one recalls the tremendous pre])onderance 
 of the Western agricultural States in Congress. Nor is 
 the kind of reciprocity advocated before Mr. Hoar's com- 
 mittee that which would confine itself to natural pro- 
 ducts, but rather that which would include manufactures 
 also. Now, it is all very well to proi^ose a reciprocity in 
 manufactures as well as in natural products, but if 
 the barriers are to be comi)letely broken down be- 
 tween Canada and the United States, how is Canada 
 to get a revenue with which to pay her heavy in- 
 terest charges and sustain her Government ? Cer- 
 tainly, if her markets are to be flooded with American 
 goods under reciprocity, and little or no goods are to be 
 brought in from England or other countries, the import 
 duties realized under her i)resent tariff* woidd yield a sum 
 altogether too small for the expensiveness with which our 
 Canadian friends are governing themselves. Besides 
 this, there would be nothing to prevent Canada from so 
 adjusting her tariff' as to admit partially manufactured 
 goods from England, finishing them in Montreal and To- 
 ronto, and sending them into this country as Canadian 
 manufactured goods. Certainly when the shrewd Ame- 
 rican tnanufticturers l)egin to understand that thr kind of 
 reciprocity advocated before Mr. Hoar's committee will 
 
 lifSNi- 
 
 :ii.- 
 
A Uniform Continental Tariff. 
 
 31 
 
 pt^riTiit 8ucli a possibili ty, it will have no chance whatever 
 of being offered. 
 
 " If Commercial LTnion Avere inaugurated, how would 
 Canada get her revenue, which you Beem to think imj)os- 
 sible to provide under a reciprocity of manufactures?" 
 was then asked. 
 
 '^ Under (vommercial Union there would be a uniform 
 tariff right round the continent instead of athwart it. 
 That tariff' the United States would practically fix. It 
 would dcmbtless be jointly administered under a com- 
 mission, in which, of course, the United States must neces- 
 sarily have a majority. The revenues of both countries 
 would be put into a common fund, or in other words, 
 pooled, and after the total expenses of collection were 
 paid, the sum would be divided in proportion to popula- 
 tion. The same plan w^ould have to be adopted in the 
 collection of the internal revenue. It is true that, accord- 
 ing to the existing figures, Canada, under this agreement, 
 would realize a less revenue than she does now. ^vA this 
 because no duties whatever would be paid on American 
 goods, that would then reach her consumers with- 
 out paying duty, while, in consequence of this 
 freedom from taxation, the consumption of American 
 goods would enormously increase, thus lessening 
 vastly the importations of English goods, now yield- 
 ing a revenue. But whatever would be the revenue 
 which Canada woidd realize under Commercial Union, 
 it would certainly always equal per capita that of the 
 United States, and if Canada cannot govern lierself 
 economically, and as reasonably as the United States, 
 there is something wrong in the administration of her 
 affairs that ought to be righted. When one recalls 
 the fact that under the existing plan of taxation the 
 
m» 
 
 t 
 t 
 
 ti 
 
 b 
 (I 
 ai 
 U 
 
 1 
 
 d 
 
 32 The Feasibility of a CommercM Union. 
 
 iintional dobt lins been rertnced and a siiqibts accu- 
 iiuilatfMl at wbioh all tlu. world wondorH, siuoly the prenenl 
 (Mmilii)riiua of taxation laaintniuod w(ndd yield to Oaiiadi. 
 eaoimh to govern herself, if she had per eapiia the saiiir 
 revenue ns the United States. If at first her r4.veuue,< 
 were insuihiient, imchT ( omniercial Union, to pay her m 
 terest or sustain her -over una-. it, a provision miftht br 
 made that, say ix)r live or ten years, theav^ra^c^ snnv ht^n- 
 tofore realized fron. imports and Internal rin^enue shonhl 
 benraintaiuedout of the genera! fund; or what is mueli 
 more independent and just, that she shonld levy u 
 direct tax upon her own people, in the shape of a stamj* 
 act, or some other mode to make np the deiicieney. li 
 the l>(aninion government lednced or entirely ceased tc. 
 pav her proviueial snl)si(lies, it wonld bridge the diflicnlt} 
 Th'e Amerieans could well at^brd to thus divide the joint 
 revenue according to popnlaticm with Canada, becaus- 
 wliat the Canadians lost in the shape of import duty, tin 
 American manufacturers wonld more than gain in the 
 shape of profit from the greatly increased (puintity oi 
 goods sent into that country free of duty. Commerciai 
 Union is not a bargain in whicli profit is made on onesid< 
 by loss on the other; it is a commercial partnership iH 
 which both partners make a profit, and a profit the magtii- 
 titde of which no man can tell." 
 
 1 
 
 ■ '-^^^^^^WtKBIBiHi 
 
s accu 
 i present 
 Oaiiaclii 
 he Haim 
 lu^veiuies 
 
 y her in 
 night be 
 nnv h (Te- 
 le shonld 
 - is niueh 
 I h'vy a 
 
 a stamp 
 ency. If 
 3eased t(t 
 liiflicnlty. :| 
 the joint 
 
 becaus(^ 
 duty, the 
 in in the 
 .antity ot 
 nnmereial 
 n one side 
 lership in 
 lie magni