IMAGE EVALUATION TEST TARGET (MT-3) 1.0 Ifi^llM I.I ^ 140 2.0 1.8 11-25 11111.4 IIIIII.6 I y? /A /a % > '>, '/ /A *% 'S^T^.V.'^ w ''<^"" CIHM/JCMH Microfiche Series. CIHM/ICMH Collection de microfiches. Canadian Institute for Historical Microreproductions Institut Canadian de microreproductions historiques 1980 Technical Notes / Notes techniques The Institute has attempted to obtain the best original copy available for filming. Physical features of this copy which may alter any of the images in the reproduction are checked below. □ n Coloured covers/ Couvertures de couleur Coloured maps/ Cartes gSographiques en couleur Pages discoloured, stained or foxed/ Pages d^colordes, tachet^es ou piqudes Tight binding (may cause shadows or distortion along interior margin)/ Reliure serr6 (peut causer de I'ombre ou de la distortion le long de la marge intdrieure) L'*nstitut a microfilm^ le meilleur exemplaire qu'il lui a 6t6 possible de se procurer. 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Les images suivantes ont ^t6 reproduites avec le plus grand soin, compte tenu de la condition et de la nettetd de I'exemplaire film6, et en conformity avec les conditions du contrat de filmage. The last recorded frame on each microfiche shall contain the symbol —^(meaning CONTINUED"), or the symbol y (meaning "END"), whichever applies. Un des symboles suivants appa'aTtra sur la der- nidre image de chaque microfiche, seion le cas: le symbols — ^ signifie "A SUIVRE", le symbole V signifie "FIN". The original copy was borrowed from, and filmed with, the kind consent of the following institution: Library of the Public Archives of Canada Maps or plates too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: L'exemplaire film6 fut reproduit grdce d la gdrdrositd de I'dtablissement prdteur suivant : La bibliothdque des Archives publiques du Canada Les cartes ou les planches trop grandes pour dtre reproduites en un seul clichd sont filmdes i partir de Tangle sup6rieure gauche, de gauche d droite et de haut en bas, en prenant le nombre d'images ndcessaire. Le diagramme suivant illustre la m^thode : 1 2 3 1 2 3 4 5 6 UBfiES ; ■<^''' COMMERCIAL ONIOI BETWEEN THE ^ y\ MITED: STATES AND QA^M)A. TWO TI^EKS FT^dM- MwhtD ATK:^ "IS'^y. EBO., Oh nOHTfyi '::/^'"KEiSPONSl!: TO nESOfjlfTIO^ QJf 'IRE .\BW. lOI'Ji m ooiiu2:3m::sx^c:;x.aji-.., T.Ti«rxoi>T x:>ootJ'J?*iriT^-rT isi-o. v. -♦••♦r^- E It /^ ST as W,lMiS^3i4 MKO A. W^' COMMERCIAL UNION BETWEEN THE VWm) STATES AND CANADA. TWO LETTERS FliOM EDWARD ATKIXSOX, ESQ., OF BOSTOy, IN liESPONSE TO RESOLUTIONS OF TEE NEW YORK CHAMBER OF COMMERCE. -»♦♦- NEW YORK: EKASTUS WIMAN, 314 BROADWAY. / COMMERCIAL UNION BETWEEN THE UNITED STATES AND CANADA. ■»-♦- At the rcfjular monthly meetiug of tlie Xew York Chamber of Commerce, held in November, the following Preamble and Kesolutions were unanimously adoi)te(l : "Whereas, Tno Right Honorable Joseph Chamberlain, the representative of the government of Great Britain on the Fishery Commission, in a speech delivered before he left England, is reported to have said as follows : ^^ The arrange- '^ ment between the colonies and Great Britain is essentially a. '^ temporary one. It cannot remain as it is .... Already you ^^ have in Canada— the greatest of all the colonies — an agitation '' for what is called Commercial Union with the United States, '^ Commercial Union with the United States means free trade ''between America and the Dominion, and a protective tariff " against the mother country. If Canada desires that, Canada '• can have it;" and, Whereas, On a subsequent occasion, the right honorable gentleman further said, that '' Commercial Union with the " United States meant that Canada was to give preference to '• every article of manufacture from the United States over the '-' manufactures fiom Great Britain. If the people of Canada '' desired an arrangement of that kind, ho did not doubt that '' they would be able to secure it. He did not think anybody '' in England would prevent such an arrangement by force ; but '' he remarked that in that case all the advantages of the " slender tie that bound. Canada to England would disappear, " so far as England was concerned j and it w^as not likely that roMMEJiCiAL uyiox WITH Canada. *^ the people of Great Britain would ooutiiino much lonj^ci to " sustain tlie obligations and reBpojisibililies <»t' a relalioLsiMj), ''all the reciprocal benefits of Mliicli bad been wiUidrawii ;" juid, Whcrcaftj The foregoing expression of opinion by an eniineut public man, in a high official position, is an important con- tribution to the knowledge of the members of this Chamber, aiul as it is supplemented with information from Canatla, that a strong movement i« iii progress there favoring the closest possible comm(;rcial relations with the United rftates, it nould seem to be the duty of this ('liamber, without any regard whatever to i)r)]itical or territorial considerations, to ,_^ni yesti- gate the possibility of a greatly enlarged extension of the commerce of this city and country into tlie nu'therii half of this Continent ; and, Whereas, It is most desirable that the Canadian Fishery question, which for over a hunritain and this country, should be settled on the broad aud enduring basis of a mutual interest, resuJting from an eidarged connnercial relation b(^tween C.uiada and the United States ; therefore, be it Resolved, That a committee of live members of this Chamber be appointed by tlie jnesident to investigate the possibility of a material expansion of our commerce in this direction, by inviting arguments for and against Commercial Union with Canada, and documentary evidence as to the extent and pros- pects of the trade between the two countries; and to report to this chamber such recomnu^.ndations for its action as will enable it to contribute its inlluence, not onlj" to the early adjustment of the Fishery question, but to aid in procuring such legislation as will promote the interests of the commerce of this country, should such action be deemed desirable. The committee api)ointed by the President were as follows : Messrs. Francis B. Thuiber, Chairman; Jackson y. ShuJtz, Jacob Wendell, (lustave Schwab, and James P. Wallace. In response to circulars sent out by th<^ committee, the following, among other letters, have been received : to .)? COMMERCIAL UNION WITH CANADA. TWO LETTERS JTiOM EJ)WARD ATKINSOX, OF BOSTON. l^osTOX, NovEMnKU 10, 1887. 1 have rocoivod yonr letter of Nov. 7, asking an expression of loy views npon tlio oxpedicncy of a Commercial Union between the United States and Canada. It might snfTico in ansAver to put the question in another form: — What j}ossthle ohjection can there he to a commercial union between the United Stales anil Canada? Ik not one country the complement of the other? Does not Canada x>ro^1nep numy articles whicli woiihl be ex^ohanged in very largo quantities for otlier articles proilucod in the United States, if tliere Avero no artificial obstructions to the traffic ? Wouhl not this excliange profit the people of both countries I Is any commerce permanent, \uiloss both parties gain by the exchange of product for x>roduct. Or, the ([uostion might l)o put in tliis way: — Let it bo assumed that in tho treaty of peace, after the Kevolution, tho Trovinces of Nova Scotia, New Brunswick, Cape Breton, and L'rince Edward Island, had been ceded to or taken by the United States as a part of their territory. Snl)sequontly, when the confederation of the L^nited States failed because of the obstruc- tions to commerce among the Confederated States, and whei) the present Constitution was adopted, would there have been any reason to maintain these obstructions between the Provinces named and the rest of the States, which would not have applied to the other sectional divisions? Has not tho prosperity of the United States been greatly promoted by the provision of the Constitution that tho Commercial Union of the United States should bo absolutely free from obstruction ? We can readily imagine what would have been the conditions of the territory which now constitutes the United States had the Hudson River been the border line between one nationality and another; had the Potomac separated the Middle States from the Southern Atlantic Stares ; had Florida remained a Spanish colony; had not tho fjouisiana jjurchase been completed, and had the vast territory beyond the Mississipi remained under the domin- ion of another power. Should we not have been cursed with obstructions to the mutual service or commercial union of these sections each to the other? Might we not have been divided up as Germany was formerly, into little petty kingdoms each armed against the other, until by way of the Zollverein treaty of commercial union the way was made clear for consolidation, as the German Empire has been consolidated ? Might we not have been subject to the curse of standing armies like those which now eat out the very heart of the Continent of Eiirope? Might we not have COMMFRCIAL UNIOX WITH CANADA. been in the position of tlio Statos of Western Europe (aside from Ru88ia and Austria), iu Avliich staniling urrniea and navies costing $400,000,000 to $500,000,000 a. year are nocossary to maintain tlio harriers at^aiust niutuol tratlic, at which harriois a tax of $:>00,UOO,000 to $100,000,000 is annually collected, to b« vasted upon the armit'S "which, except for such barriers, ■would not be needed ? Suppose for an instant that all these countries of Western Europe had, long since adopted such a Zollverein treaty or conunercial union as ii now proposed betwfen tlio Empires of Gennauy and Austriii, and tlie Kingdom of Italy ; could the Franco-Prussijin war liave occuried t What need, then, for the money tax at the border lines? What need except to collect this money tax for the worse than money tax — the hlood tax of the army itself? for the withdrawal of al; tho young men from time to tlmo, and from year to year, at the most productive portions of their lives, to waste y^ars iu preparation for war, more costly than actual war itself, while the women sweep the streets and do the scavenger work of the cities, or mix tho mortar for the masons avIio lay the walls iu the city buildings, — or toil most arduously iu the fields, sometimes even yoked with catth) to draw the plough ? What would have been the present condition of this country had the Southern Confederacy succeeded in their effort to secede, and had the Potomac become the Ehinc upon whose borders two standing armies would have been required to watch each other, lest tho people of the two sections ahould exchange services, or should enjoy the benefits of mutual commerce f Have not/ the Southern people themselves so fully realized the benefits of their present condition and of the Union, of the States, that it would to-day take a larger armj- to force them out of the Union, or to put back upon them the burden of slavery, than it did to maintain the Union and to establish liberty? In what consists this benefit? Is it not in the diversity of Southern occupations to which liberty was necessary, and iu the commercial union of the whole Nation ? * Or again. Let us consider present facts. The last time I met the late Governor Andrew was at a dinner party, shortly after his return from an extended tour in these maritime provinces cf Canada, on, business connected with certain matters pertaining to the Maine Central Railroad, to which corporation the State of Massachusetts had given certain claims. Being asked by one of the guests to give his general impressions of Nova Scotia, 'New Bruuswicl- ud Cape Breton he re pled : "You may take into consid- eration the two States of New York and Pennsylvania ; compute their potential or productive power in agriculture and mineral development; add to these resources of the coast-line fisheries, and you will then have a reasonable comprehension of what these Provinces may become." Suppose the present little petty contention regarding the fisheries should culminate in a war in which we should conquer these Provinces — take them and hold thom — would it then he judicious to unite them on even terms in commerce with the other States? But it is not suitable even to imagine COMMERCIAL UNION WITH C J 2^ ADA. snch wickedness and stupidity as war growing out of a petty qiiestion like that iff the fisheries. Take another ultoruativo. Tlio j^opulation of these Provinces is some- thing less than a aiillion. The debt of Ciinada, including these ProvinccB, Ib something less than fifty dollars per head. The people of those Proviuoes have received little benefit from the great railway projects iu the far-distant West, on which this money has been chietly expended; but they must share Ihe hurden, although they are united with the rest of Canada only by a political j-ailway constructed through a wilden^ess, which will not pay the cost of its own operation, fiuppose ihe United Stairs should buy them at a sum equal to their share of the debt of the Dominion of Canada, say forty to fifty mil- lion dollars. Would it be a good bargain for us y It would cost only five mor ths' surplus revenue. Would it not be a good bargain for the Provinces ? Would it not be a good bargain for the people of the Dominion of Canada, to enable the Dominion to complete the remainder of its railway system, without incurring any further dangor of loss of credit f Suppose this pur- chase we^.-e accomplished; would it not then be judicious to remove all obstruc- tionp to trade between the peojdo of the Provinces and the people of the rest of the United States, in which Nation they would first become Territories and then States? Why not now, remove these obstacles by commercial union or reciprocity T Let US look at this matter historically. From 1854 to 1868 the people of the United States were united with those of Canada in commercial union under a treaty of reciprocity. I', that iaterval the United States were en- gaged in a civil war. Canada was on our flank. Every effort was made by the Southern Confc'-^^acy to break up the friendly relations existing between the two conn* i Yet not one single soldier was called for to guard our Canadian frouvici'. Not one single ship was required to protect our harbors from Canadian Alabamas. Where traflfio is free, armies become useless. What use of a navy to guard harbors against friendly and mutually profitable commerce? That treaty terminated. What has occurred since T Loss; antagonism; obstructiou ; and now each party has begun to arm its ships against the other. Lase, wicked, and almost insuflerable as war would be, yet the first stops which might lead to war have already been taken. For what irposel In order to maintain artificial barriers forbidding mu ual service between the people of Canada and of the United States. What is this service ? Last year the imports of fish into the United States were valued at two and a quarter million dollars. We taxed the fish five hundred thousand dollars. Who pays it? Mainly the working people of New England, who nf.ed the fish most, and who have the least wherewith to pay for it! In the same j)eriod we irai)orted about the same value of hens' eggs. We did not tax them. Why not? Are not the domestic hens entiijled to protection against the pauper hens of Canada? If it is necessary to tiix fish and potatoes, why not tax eggs ? True, the working people of New England would pay the tax. If each person in iho Lfi:ited States enjoys as good a supply of hen's I ll ' « COMMERCIAL INIOy WITH CANADA. I ■ eg^fl as the o])eratives(lwellii)g in the factory Ijoarding-houses of Xew Eng- laml, the production of hen'.s eggs is one of the most important branches of onr domestic iudnstry. These factory operatives consume one iig<^ every other day. Suppose we call the present jiopulation of the United States, iiuniherlug over sixty million, eoes any one propose to protect the domestic hen by a duty on Canadian eggs? (Perhaps sonu^ geese may do so.) If not, then wliy tax Canadian fish and ])otatoes ? We imported last year abo^it six hutidred and fifty thousand dollars ($()50,000) worth of potatoes; we taxed thetn two hundred and ninety-two thousand dcdlars (.t2!)2,0(K)). A few yetus ago, when the crop of potatoes in New Enj^land was very bhorb, the pectple paid in that year a tax on Canadian and Irish poratoes of over twelve hundred and fifty thousand dollars ($1,250,000.) All these taxes on fish, potatoes, meats, and other provisions which Canada provides for tis, enter directly into the cost of tlio mannfii during and r ■ 'ihanical arts mi the United States, chietly of New England. Does any lanuer gain? Not one cent. I'his duty upon Canadian food si uply extends the area of railway carxiages. It is Avasted on hauling meats and potatoes longer distances by railway. Lot us return to the fisheries. Tlie late Professor Spencer F. Baird once told me that the (luantity of fish take from the ocean for the supply of human wants was literally uo more tL in equal to a drop in a bucket of water, compared to the multitude of fish which the multitudiuous seas stand ready to give up for our use. Could these fish be diverted in the water, from the shores of Canada to the harbors of New Englaml, should we erect a barrier at the mouth of every harbor to i)revent them from entering in full measure ? If not, why do we erect a barrier to prevent their being brought in UPON the water t Who objects? Is it the man who says that the American fisherman should do that work, and not the inhabitant of Nova Scotia, New Brunswick or Cape Breton ? Then make it a penal ofl'ence for the owner of a fishing smack in Glouceister or in Portland to employ the fishermen of these Provinces in sailing their smt'. ,ks and catching their lish. More than one-half the fishermen who eprived of tbciu, Ave are 8ul)Jected to tbe loss, not only of tbo work "wbicli migbt bo famished in their conversion, but we are being subjected in New Englaud lo tbe loss of nearly all tbe heavy nuichine work in Mhich Ave formerly excelled. If any State should propose to tax for its local purposes the coal used in its furnaces, its factories ami its worksbops, Avbat Avould bo the rejnitation of tbe men Avbo should make tbe proijosition. If tbe people of the Pro- Aances, more beaA'ily burdened wrth debt than we are, subject to the dis- advantage of isolation, of lack of market, of want of occupation, can yet supply us Avitb coal aiul iron, Avhat would be the benefit of coui'nercial union or of reci]»rocity ? Would it no be the same as the benelifc of practi- cal annexation ? Would not eacb enjoy the benelit of the service of tlio other '? Would not all thrive alilce ? If tbe timber of Canada were within tbo limits of commercial union, and were free from taxation, migbt not our own fonssts, on Avbicb our riA'crs and our Avater supply now so much depend, be measurably spared? Might we not secure at less cost a better quality and more abundant siipply ot timber, without injury to ourseh'es? Will not commercial union, reciprocity, or annexation give us the necessary supply of timber which the great wilder- ness of the North offers us freely, only upon the condition that Ave Avill not ourselves obstruct its use by taxing it. It is bard to reason for reciprocity, commercial union, or annexation, because I have found no argument against citber which vs'i 11 stand the slightest investigation. If it be said that Great Britain would part wifcb a valuable province. OA'en if only ib^^se provinces of tbe Donii ionofCauada — i.e., Nova Scotia, New Brunswick anu Capo Breton, were sold to this country, thus forever settling the tisbery question, then I ask wbat i^ tbo present commercial value of the trade of tbese Provinces to Great Britain as they are, compared to the value of the traffic of the people of Nev/^ York and Pennsylvania, by which two States Gov. Andrew measured their ])os- sibilities? If in their present condition 800,000 or 5)00,000 people can buy but little, because they can bud no marketfor wbat they have to sell, wbat 10 COMMERCIAL UNIOX WITH CANADA. III! 1 would be the meaaure of tlieir i)urcha8ing power of British goodd when allied to this country, either by a treaty of reciprocity, or when joined by coiiimorcial or by actnal union, and then occupied by a dense, busy and prosperous population ? I am very glad to see that this question is being taken up by important commercial bodies and by the juoss, irrcspectivp of political parties. The late political contest in this State has been disgraced by niisp'.presoTjtationa of the policy of the Secretary of State, and by incitements to violent resist- ance to the claims of Canada made by hack politicians, even by some holding high places, whose malignity can only bo excused or palliated by imputing to them a want of capacity to grasp the economic problems upon which the people will soon be called to decide. Very respectfully and truly yours, EDWARD ATKINSON. Boston, November 19th, 1887. F. B. THUKBER, Esq., Chaiuman, Etc. : My Dear Sir : — There is great virtue in an IF. The object of my recent letter to you was to call attention to the mutual benefit which would accrue to the people of the whole Dominion of Canada and of the United States if arrangements could be made for freedom of traffic by Commercial Union through reciprocity of trade, or otherwise. In order to bring this main subject carefully and clearly before the mind of the reader, I suggested certain hypothetical conditions which might have happened, or which might now bo brought about. Among these assumed conditions, I suggested that if we could buy Nova Scotia, New Brunswick, Cape Breton, and Prince Edward Island, with the fisheries, wo should thereby settle the fishery question, and at the same time secure the most complete benefit of a commercial union with the peoi)le of these specific Provinces. This somewhat audacious proposal has attracted the attention of all who have read the letter, somewhat as it did when I first made the suggestion at a dinner party in Manchester, England, during a meeti.ig of the British Association for the Advancement of Science. It did not occur to me, when making it, that such a proposition could be seriously entertained ; biit it was taken up in so serious a manner by the gentlemen present at the dinn«»r party, as to make i( seem worth while to present this alternative for the chief purpose of at.' "acting the fullest attention to the main subject, but with the possibility that even this method of adjustment might, on its own merits, be entitled to consideration. In order that it may receive any cousiderfition, one must wholly discard all ideas respecting national pride, political jealousy, and other similar conceptions, by which a plain, simple business transaction among nations COMMI'IICIAL VyWN WITH CANADA. U is often or ahvays obscured. These obBtacles to bargain and sale, covering a part of a national domain, may be insuperaole. With this, for the moment, let us have nothing to do ; wo will ignore this siile of the fjuestion wlioliy. What would three plain, straightforward businesn men do if thin case were brought before them for a linn! conclusioi:. purely as a question of profit or loss? Would iliey not first end»Mvor to put !'.»v,'n on pinor all the points upon which they substantially agreed ? W^ha^ ■'^^ oiild these j^ioints be ? Are they not as follows ? : A : — Tlio different sections which iiayf constitute the Confederation known as the Dominion of Canada are nou H':> uniled by nature as to make the Maritime Provinces either u necessary par', or even a part which, under olhor circumstances, would Jiave liappened to belong to that Dominion. B: — It follows that the policy of the Government of other parts of the Dominion of Canada, although beneficial to such other portions, might merely be a burden upon the Maritime Provinces ; us for instance, excessive expenditures upon railways for the deveiopmejj of Manitoba. British Columbia, and the lilio, can be of no benefit to thti Maritime Provinces, but may involve a heavy debt, of which their share would bo a serious burden. C : — These Provinces are physically alliod by nature to New England. Were there no obstruction to trade between tliorn and the I'nitod States, tho traflRc per capita would be equal to tho t rathe per capita among tbo people of the Ignited .States. Uow much tlsar wouM be one can hardly measure from any existing data ; it mi^jbr/,. however, be from twenty to thirty times what it now is, so far as one c^ai judge from tho tonnage carried by tho railways of the United States, which is about eight tons to each person moved 112 miles nt a cost of tf8.7i. per y-xv. An increase of, at least, ten-fold in mutual traffic would be the juiuimum if these Provinces were annexed. , D: — It might, however, bo admitted tha^, inasmuch as tho Maritime Provinces had assented to the present oblifoptinus of (Janada, the people of these Provinces could not rightfully withdraw from tlie Confederation, without assuming their portion of that debt. Their gross debt is about fifty dollars a head; but there are sinking funds helonging to Caruida which materially reduce it. The not debt is, I helieve, something less than forty dollars per head. On the basis of about one million ])oiuilation, which is not tar from tho fact, the jiroportion of the debt of tho Maritime Provinces might be Ibrty million dfdlars. E : — On tho other hand, by joining tho United States they would become indebted for a portion of the United .States debt, now amounting to about twenty dollars per head, to which they would immediately begin to con- tribute in the way of taxes. F: — It might therefore be admitted that the United States shouhl pay either a ratable part of the whole of the proportion of th<^ Canadian debt belonging to the i>eople of the Maritime Provinces, subject to reduction for the value of the public buildings or other property turned over to serve tho 12 COMMEliCTAL UNION WITH CANADA. I ! 1 1 S 1 ' I il I purposes of tLo one or two States of the Union which would be constitutetl out ol' tho Mavitimo I'roviuceti, in caHe of such iuinexiition. G: — It mijiht be .'ulmittod' tbat in the prowut sfiaitencd condition of the (ledit of the Dominion of Canada, it would l)c better for them to recoiv^e in cash the entire proportion due from the peojile of tho Maritime Pro- YJnces, to bo applied by the Dominion to the complefion of its railway system, or to a sinkint^ fund for thi- oltiinato pnyment of a ]tart of its debt^ than to retain this iai distant, isolated, ami discuuteuted part of its present donialu. H: — Tt would doutless bo agreed that, in (;aso of sucli annexation of tho Maritime rrovincts to tho United States, tbevo would be no further migra- tion '/f the people from thesa Provinces, i>f any impurtuTice. On the contrary, the enltivatiou of the large ar«;a of fertile land, for the products Ol which no market v-an be found at present, and development of the mineral Iresources which would then ensue— would furnish oceup ition not only for the present i)opnlatiim, but for a lari^e increase. Activity and entei prise would rapidly take the place of stagnation and lack of employ- ment, with corn'S]tonding inerease of po[tulation. I:— It would