IMAGE EVALUATION TEST TARGET (MT-S) {/ A z 1.0 I.I !f IM IIIIM 1^ IIIIIIO I. ^ 1.8 1.25 1.4 1.6 ■^ 6" — ► V] <^ /2 /a ^ c? i> / W Scmces Corporation 33 WEST MAIN STREET WEBSTER, NY. 14580 (716) 873-4503 k'^^"^^ \ k :\ V \ #» "^^ 9) o^ <«*i;* <» ri^ f/. fe^ .6> CIHM/ICMH Microfiche Series. CIHM/ICMH Collection de microfiches. Canadian Institute for Historical Microreproductions / Institut Canadian de microreproductions historiques Technical and Bibliographic Notes/Notes techniques et bibliographiques The Institute has attempted to obtain the best original copy available for filming. Features of this copy which may be bibliographically unique, which may alter any of the images in the reproduction, or which may significantly change the usual method of filming, are checked below. D D D D D n Coloured covers/ Couverture de couleur I I Covers damaged/ Couverture endommag6e Covers restored and/or laminated/ Couverture restaur6e et/ou pelliculde □ Cover title missing/ Le titre de couverture manque □ Coloured maps/ Cartes g^ographiques en couleur nf„° Coloured ink (i.e. other than blue or black)/ ere de couleur (i.e. autre que bleue ou noire) I I Coloured plates and/or illustrations/ Planches et/ou illustrations en couleur Bound with other material/ Reli6 avec d'autres dociments Tight binding may cause shadows or distortion along interior margin/ Lareliure serr^e peut causer de I'ombre ou de la distortion le long de la marge intdrieure Blank leaves added during restoration may appear within the text. Whenever possible, these have been omitted from filming/ 11 se peut que certaines pages blanches ajout^es lors d'une restauration apparaissent dans le texte, mais, lorsque cela dtait possible, ces pages n'ont pas 6t6 filmdes. 1 Additional comments:/ Commentaires suppldmentaires; L'lnstitut a microfilm^ le meilleur exemplaire qu'il lui a 6t6 possible de se procurer. Les details de cet exemplaire qui sont peut-dtre uniques du point de vue bibliographique, qui peuvent modifier une image reproduite, ou qui peuvent exiger une modification dans la mdthode normale de filmage sont indiquds ci-dessous. □ Coloured pages/ Pages de couleur n Pages damaged/ Pages endommagdes □ Pages restored and/or laminated/ Pages restaur^es et/ou pellicul^es Pages discoloured, stained or foxed/ Pages ddcolordes, tachet^es ou piqu6es □ Pages detached/ Pages ddtachdes i<: n This item is filmed at the reduction ratio checked below/ Ce document est filrn^ au taux de reduction indiqu6 ci-dessous. Showthrough/ Transparence I I Quality of print varies/ Qualitd indgaie de I'impression Includes supplementary material/ Comprend du materiel suppldmentaire Only edition available/ Seule Edition disponible Pages wholly or partially obscured by errata slips, tissues, etc., have been refilmed to ensure the best possible image/ Les pages tote dement ou partiellement obscurcies par un feuillet d'errata, une pelure, etc., ont 6t6 film^es d nouveau de fa^on d obtenir la meilleure image possible. 10X 14X 18X 22X 26X 30X 7 12X 16X 20X 24X 28X 32X ilaire IS details ques du nt modifier signifie "A SUIVRE", le symbole V signifie "FIN". aire Maps, plates, charts, etc., may be filmed at different reduction ratios. Those 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 frams-.; as required. The following diagrams illustrate the method: Les cartes, planches, tableaux, etc., peuvent dtre filmds i des taux de reduction diffdrents. Lorsque le document est trop grand pour dtre reproduit en un seul clich6, il est filmi d partir de Tangle sup6rieur gauche, de gauche d droite, et de haut en bas, en prenant le nombre d'images ndcessaire. Les diagrammes suivants Ulustrent la m^thode. by errata ned to ent une pelure, fapon d ,1 • * L. .« ^ 32X : 1 a i t 4 5 6 \^ k' \y V % MEMORANDUM ON THE 'Commercial Relations, iiast and present, of the British North American Provinces vnth the United States of America. n The undersigned, Joint Plenipotentiaries of Her Britannic Majesty, with full powers for the negotiation and conclu- sion of a Treaty with the United States relative to Fisheries, Commerce and Navigation, deem it fitting that, at the out- set of the negotiations with which they have been charged, they should submit for the consideration of the Secretary of State some suggestions in regard to the commercial relations between the United States and the Canadian Dominion, which may not be unworthy of attention. All the figures used in this memorandum are taken i'rom the ofTicial documents of the United States rrovernuiont, except when otherwise stated. When the Briti.sh North American Provinces or Canada are spoken of, all the Provinces now composing the Do- minion, and also the Island of Newfoundland, are included therein. An impartial examin{ition of the commercial relations that have existed between tlie United States and the British North American Provinces for the last fifty years, cannot fail to establish, we venture to think, beyond all doubt, that the traffic l)etween them has lieen exceedingly valu- able to both countries, but tliat the Ignited States have. HF^ ^5 2 A 2 TS 2 from first to last, reaped greatly the largest advantage from it. In the twelve years from 1821 to 1S32 (botli years inclu- sive) the United States ofiicial records show that the ex- ports of the United States to the Ihitish North American Provinces were of the aggregate vfdue : In home products of $30,097,417 In foreign products, of 403,909 Total United States exports 831,401,320 And that the entire imports of the United States in the same period from the Pi-ovinces were but 7,084,559 Leaving a balance of trade in favor of the United States of no less than 823,710,707 In the thirteen years following the above period, (1833 to 1845,j the same state of things is found, with a steady increase of the aggregate traffic. The exports of tlie Ee- public to the British North American Provinces were : Of domestic products 854,082,537 Of foreign products 4,040,332 Total United States exports (1833 to 1845)- $58,722 809 And imports of the Eepublic from the Provhices were but 23,350,275' Leaving a balance in favor of the United States of $35,300,594 TRANSrOKTATION IN BOND. In 1840 we enter upon a period when the United States Government, after very many years of earnest effort, suc- ceeded in obtaining from Great ]3ritain a relaxation of the old restrictive navigation laws in reganl to the British Colonies. With it came the international drawback system lor the encouragement of overland transportation to and from the' Atlantic Ocean without payment of duties. Although this. »- im 3 uicasure only extended to tlie tnin:r;port of merchandise, it is instructive to observe the innuediate and remarkable effect it had on the direct transactions between the lu?piib- lic and the Colonies. The a,c;'<4Tet;'ate imports and exports between the countries immediately rose I'roni 88,074,291 in tlie year ]84.'>, to the lollowinL;,' ti;j,iires : 18-i(). ' Aifgrei^atti import and exjiort trade SO,. "5-1:4,150 1847. " " 10,;',20,470 1848. " " 12,029,122 1849. " " lo,9:U,147 1850. " " 15,19:5,497 1851. " " 18,708 M5 1852. " " 1(;,G19,:315 185.1 " " 20,()91,:3G0 Total 811:^,840,100 Thus, while from 1821 to 18:52 the aj^^gregate annual traffic between the countries averaged $:3, 257,15:5, and from 18:5:5 to 1845, 80,3 1:3, 78() per annum — .under the influ- ence of a more liberal policy the traffic rose, from 1840 to 1853. to no less an average than 814,230,7'):) }>er annum. ■ And the balance of trade still preponderated enormously to the advantage of the United States. In these ei^lit years the Ilepul)lic exported to the Provinces — Of home products 855,072,200 Of foreign products 22,020,254 Total United States exports (1840 to 185:3).... 77,092,514 While the imports of the Iiepublic from the Provinces were but 30,753,592 Leaving in favor of the United States, on eidit years' transactions, the past balance of 840,338,822 But, in addition to this direct interchange; of merchan- dise, with its great })reponderance in favor of the Pepublic, a large amount of the import and export traffic between Great Britain and the Provinces now began to be carried in bond over the canals and railways of the United States :'H to Atlantic or inland ports, and thence dispatched to their ultimate destination in American ships and steamers — vastly to the gain of tlie Republic, and without any cor- responding advantage to the Provinces. TIIF. RECiniOCITY TREATY. Tlio great success that thus attended this first partial, experiment of reciprocal liberality in commercial inter- course between the two countries, led directly and easily to proposals for the much more decided measure of an in- terchange of the natural products of the two countries free of customs-duty. For a nund)er of years the sul)ject was keenly debated in all its bearings ; and it is instructive to look back on the record of those discussions, and observe the long list of distinguished American statesmen who were warm advocates of the measure. The Reciprocity Treaty of 1854 was signed on 5th June of that year, by Mr. Marcy, on behalf of the United States, and by the late Lord Elgin, as representative of Great Britain. Its happy effects were felt instantaneously ; and it is only necessary to refer to the speeches and papers of the able men of all parties in both countries who promoted the measure, and to analyze the official returns of its operjition while in force, to arrive irresistibly at the conclusion that its results greatly surpassed the most sanguine anticipa- tions of its originators and advocates. The Treaty may be said to have been thirteen years in operation ; for though nominally it began late in 1854 and ended early in 1866, the traffic was pushed with such en- ergy during the months of its operation in these two years, as tc placo them on an equality with the other years. To obtain a just appreciation of the value of the traftic between the liepublic and the Provinces during the thir- teen years' operation of the Treaty, it is necessary to keep in mind that the Civil War in the States in the last four years of the Treaty's existence enhanced the value of com- modities, and so deranged the industrial interests of the Republic as to give the Provinces a temporary advantage >• 9\ ' 5 in tlie tralHc, forbidding any fair deduction I'^-om it as to the ordinary course of trade in times of peace. In one year (ISGo-'GG) at the end of tlie war the exports (jf Ihitish North America to the United States rose, according to the United States Oflicial Kecords, to 8r)4,7l4,:»8:J. However profitable this casual advantage may ]iave l)een to the Provinces, it can hardly be regarded as an objection to the Treaty that in time of war, when the American hus- bandman was debarred from tilling his fields, the necessi- ties of life was largely supplied under it without the addi- tion of onerous customs-duties and custom-house restric- tions. Assuredly, liad the Treaty not then been in exist- ence, every ton of these supplies, under the pressing urgency of the case, would have found its way across the lines, probably with little reduction of profit to the pro- ducer, but great increase of cost to the consumer. The grand fact remains that, under the operation of the reciprocity treaty of 1854, the aggregate interchange of commodities between the Eepublic and the Provinces — to promote which the Treaty was concluded — rose from an an- nual average of $14,230,703 in the previous eight years, to $33,492,754, gold currency, in the first year of its exist- ence ; to $42,942,754, gold currency, in the second year of its existence ; to $50,339,770, gold, in its third year ; and to^ no less a sum than $84,070,955 at war prices, in its, thirteenth year. And notwithstanding the anomalous character of the cir- cumstances arising fiom the existence of civil war during; so considerable a portion of the Treaty's existence, by which the imports from the Provinces were greatly increased in volume and value, and the exports to the Provinces as. naturally reduced hi (piantity, the l)alance of trade, during the existence of the treaty, was largely in favor of the United SluIgs. In the tliirteeu years of its operation, the Provinces purchased from the Eepublic commodities, according to the United States returns, to the value of $34(3,180,204, and the Pepublic purchased from the I'ro^'inces $325,720,520, leaving a gross cash l)alance in favor of tlie United States 6 of S20,454,24r). IJut tlio l)alaiK'e was in Tact much largi^r than Uiis. During the first ten years dC the Treaty, the transactions l>etween llie countries sliowed a clear hahince in favor ol' tlie United States of 6'n2,01:\r)4r). Tliat halance appeals, from llie United States lieturns, to have heen re- duced, hy tlie o])crations ol' tlie i«)lh)\vin<;- tliree years, to tlie amount of .S20,4o4,24r» ; Init tliis aros(s no doubt, from the inilatcil values at which tlie iui[)ortations into the United States from tin; I'lovin* es were made under the Treaty, durin^i;' the ^^^^•— Ihci'c^ l)ein,'4- no customs-(hity to necessitate accuracy and eveiy temptation to over-valua- tion on the ])avt of tlu; inqiortei'. According to the ofFicial returns of tlie several liritisli Trovinces, (wliich are accu- rately kept), the I'rovinces purchased iVoiii the Iie])ul)iic, during the thirteen years in (piestion, commodities to the aggregate value of 8v'G;'>, 188,088, gold valuation, and the Ifepuldic purchased from the Provinces .S2('.7,G12,l;)l, in same valuation, leaving, as the sum tottd of the results of the Treaty of 1854, an aggregate international trallic of $030,800,210, and a gold halance in favor of the licpuhlic of J?9;3,o 75,057. TRAFFIC AVITH CANADA IN CO.MPAUISOX WITH OTHER STATES. The importance of the Canadian trallic nnder the re- ciprocity Treaty can he most clearly seen, perhaj^s, hy a comparison of it with the transactions which the liepuldic had -with other foreign coiuitries during the same years. The total exports of the United States from 1854 to 1806 (both years inclusive) amounted to upwards of four th(ni- sand millions of dollars. Of this vast export traffic — England and her possessions took 82,700,974,538 France and her possessions took 453,003,000 Spain and her possessions took 205,803,221 Germany took 207,308,047 83,007,170,402 And all the rest o!' the world took the balance. Of the above exports, Canada's share, as we have already -. ^r I* \r seen, ^va.s $346,180,204 — an aniuimt cf^ual to the agj^regate GX])orts takoii from the United States in the same years by Ohiiin. T'razil, Italy, Ilayti, Iiussia and her possessions, Venezuela, Austria, the Ar!j;entine Ifepuhlic, Denmark and her possessions, Turkey, I'oitugal and her possessions, the Sandwich Islands, the Central American States and Japan, all put together. In marked conti-ast to this, however, the United States imported from these countries, in the same years, to the amount of $538,523,380, luaviug a cash balance to be paid to them by the liepublic of $11)2,100,010, while Canada paid over to the States a cash balance of S!.t5,575,- 057, in gold. CHARACTER OF TliAFFKJ I'XDEI! Till' TUEATV. The character of the commodities purchased i'rom the Eepublic by the Provinces during the existence ol' the Ee- ciprocity Treaty is also worthy of si)ecial note. In the thir- teen years of its operati(jn the total purchases Ijy the Prov- inces of United ►^rates home productions and of foreign articles imported by United States merchants, were as ibllows : Animals and their products $35,433,213 Breadstuffs 112,058,473 Other farm products 3,242,082 Timber 8,511,488 JVIanufacturers 88,040,855 Miscellaneous 24,044,077 Total home productions. $271,040,088 Foreign commodities bought from the mer- chants of the United States and imported into Canada 02,370,718 Total purchases $334,320,700 From this it will be seen that not less than $151,020,573 of manufactured goods were purchased from the United States by the Provinces under the operation of the Eecipro- .city Treaty. TRANSrOIlTATION TKAFriC UNDER TIIK TRKATY. Did iiotliiiiif iMoiv, tliei'C'lbro tlifin the volumo of traflic betwoeii the countries and the comparative cfrntributions oC ciich country to it, enter into the ([uestion of the relative a(lvant;i^es derived from tlie Treaty hy each, no doidit eould exist as to tlie United States havin},^ reaped murh greater profit from tiie Treaty (jf 1854 than the Trovinces. But there is anotlier very important lirancli of the ace(mnt. The transportation tralUe yent to and hrouglit i'rom foreign l)V tlie r d, til countries oy tne rrovince^ canals, and in the ocean ships and steamers trading from United States jiorts, rose under the operation of the Treaty to an importance secondary only to the traffic in domestic productions. Previous to the negotiation of the Treaty this traffic had assumed considerable dimensions ; but the vast increase that occurred under its operation must have drawn very large gains into the coffers of the KepuLlic, and indi- rect advantages (juite as valuable as the direct ones. No official returns of the goods thus passed over the United States seems to have been preserved until the fiscal year 18G7-'G8 ; but from the Eeturns since published we can form some idea of the great profit that must have accrued to the Republic while the Treaty was in force. These Returns thus state the values of the foreign exports that passed over the United States in transitu during the past six years : 1868. Total United States transit traflic 821,515,604 1869. " " 21,095,984 1870. " " 23,191,860 1871. " " 25,375,037 1872. " " 31,385,320 1873. " " 40,099,185 Total transit traffic $162,662,990 Of this vast traffic, $115,241,704 consisted of merchandise imported by the Provinces from other countries and car- ried over United States railways and canals into Canada;, ■ > >> u and $4S,5;"r>,5")7 of it consistcMl of ])ro(lucc' cxportod abroad from the Pi'ovincL'S vid llic I'liitiMi States. The I'aet that these t\V(i amounts a]'i»C';ir to make unitedly more tliati tlu; whole H'^'ifre^ute of the I'nitcd States transit tradt', arises from shipments made IVom one part oC Canada to iuiother, and consecpiently appcarin-:;' in tin; list of ^^oods goin,i,' into the United States, as \veU as in that of i^ootls seiit out from the United States. Nearly the whole of the trallic la Ininsitu of the Iicpuhlic in these six years, was either sent from or sent to the British rrovinees. Ami iVom its volume in these recent years, we niiiy I'orm some idea of its great extent muler the operation of the treaty, when colonial facilities for ti-ansportation were so different from what they now are. The value of so vast a carrying trade is not easy to arrive at. Dr. Young, the able chief of the United States Bureau of Statistics, recently stated that inward ocean freights on goods "vary from 100 per cent, on [the value of] salt and some other bulky articles, to two or three per cent, on dress goods," and that the "average on merchan- dise alone is not much less than eight per cent." Now, if the ocean freight on ordinary merchandise is eight per cent, how greatly more must be the percentage of overland freights ; and how infinitely greater must be the percentage on the value of farm produce than on ordinary merchandise ? If it is further considered that on the transit traffic to and from Canada, inland and ocean carriage have both to be paid for, and that a large proportion of the commodities are heavy and bulky, it will at once be seen what a fertil- izing stream is poured by the merchants of the Dominion over the railways, canals, steamships, commission agents, and port cities of the Bepublic, even from the limited share of their traffic now sent via the United States, under a policy of severe restriction. SPECIAL rUIVILEGES UNDER THE TREATY. Nor was it merely from the vast interchange of commod- ties and the great carrying trade in bond that the United 10 States reaped their L,'ol(len annual harvest from the Treaty of 1854. It must not he forgotten that, by virtue of that Treaty, the Canadian canals and the navigation of the St. Lawrence ^\\m\ tlirown open to the ships and commerce of the United Stiites, on precisely tlie same footing as to those of the Canadian peojile, wlio had spent vast sums in their construction. ILow largely tlie Ivcpuhlic profited hy this concession, the enormous amount of Ameiican nu^rchan- dise passed through tlie Canadian canals in American bot- toms, at tolls so hjw as to d(j little more than defray tlie cost of attendance and maintenan the puhlic records of botli countries amply estahlisli. The sole return maele to the rnjviuces for tliis concession was the i)ermission to navigate Lake ]\[icliigan, and the promise of tiic United States riovernment to urge upon tlie State Authorities of the llepuhlic to extend to tlie Provinces the same free use of the Am(;ric.in canals as tliey liad extended to tlie Republic. This promise never bore any fruit. TIIK ST. LVVrilKXCE COAST F rSlTERIRS TREE UNDER THE TUE.VTY. But the crowning concession eiijoyed by the United. States, under the ^.onditions of the Jleciprocity Treaty of 1854, was the free use of the priceless coast fisheries of British North America. I'or this concession the able statesmen wlio iv^presented the tliirteen States in the peace settlement at the close of the Ivevolutionary War, struggled long and earnestly. To secure this much valued posses- sion, all the shill of American diplomatists, persistently employed Ibr three-iniarters of a c^iiUiry, was exerted in vain. Under the treaty of 1818, the riglit to the sea-fish- ■eries of the Gulj)h of St. Lawrence was resigned to the United States; but not until 1854, and then only as part of the lleciprocity Treaty, and terminable with it, did they obtain access to the most valuable portion of the iisheries, namely, those within three miles from the coast, bays and creeks of the Provinces. What the value was to the United Stales of this concession it wouhl not become us to discuss while an arbitration to determine the compensation to be 11 paia Camida for twelvii yoars' i'ui'Lher eiijoynicnt of it is pending, uiidei' ihe provisions of tlio Treaty of Wasliiiig- ton. I>ut, as illustrativo of tlie enormous pre])onderancc of advantages reaped liy llu' T'nite. Aivlri'irs Report, pciijr. 3,"). " I'liii^lainl jiosscssi's no imr^cry I'ur scaincii at all i'i|u.il to licr Xortli Amci'ii an cdlonial traiU'." Ui'nL "The ;iv('ia!^f(; iiunihci' of Fi'dich si'Mnicii cir^'ai^'cil in the roil iislicry [of the C.ulf (;f St. Lawivnccl from 184] to l>.'.()wis 11,;'00, and the averai,'e Itounty paiil aiHUi; liy «as :3,!)()0,0(i() fiancs, (8780, oOd.) equivalent to .'i?o7i';;o for eaeli soaniaii. j'"ranee trains \\\) in this manner ahle and hardy .seamen for her navv, who v.unld eost the nation niiieli more if they were trained on .shi[is of war.'" JIu.l. "The United States tonnaL';e en.icaffcd in ]>v'.2 in the cod fishery was 122,- 8G3 tons ; in the niaekeivl hshery, 80,r.l>t) tons : aL,'',!.,n'en tish to the amount of .S l.niD.O;);). * * * Nearly one-fourth of our lishinj,' lleet, with a tonmii^e of -lO.OOD to ;iO,000 tons, worth ?r»,000,000 to -S7,000,00l) annually, lish near the three-mile line of the Trovinees." Had., p. 44. i!F.rr..\L OF Tin-: xnK.vrv. Sucli was the Treaty of IS.'il-, whii'li the I'niLed States terminated in 180(1, on the grouinl that the advantages from it were ;dl on the side of the Provinees, and against the liepublic. Well might the ('omniissioner oi' the United States Treasury, (Mr. Derby,) writing regretfully of the rc])cal, use these v.'ords : " It (piintupleil our ti'ade with the Provinc^es, gave an impulse to public imjirovcment, and utilized the new canals, railways, and otlu>r avt>inies of commerce." And he might as truly have added: "Had the Provinces retaliated in the same spirit, it would have lost us the enjoyment of the shore lisheries of the maritime proviuces, the use of the Canadian canals, and the iiaviga • 12 tion of the St. Lawrence river, all of wliich we enjoyed witliont couii^ideratioii." Fortunately the Provinces did not act in the same spirit. They thoronf^jhly helieved in tlie practical good sense of the United States peoi)k' — especially with such a balance sheet tu look hack upon as the results of the Treaty of 1854 present. Tliey assumed that there were matters existing in 18Gy-'G6 to trouhle the spirit of American statesmen lor the moment, and they waited ])atiently for that sober second thought which was sure ere long to put all things right. Immediately on the repeal of the Treaty, customs duties were imposed by the United States on nearly all the articles imported under it from the Provinces. The Canadian tariff was very little changed, and, as will be presently shown, a large preponderance of the exports from the United States into the Dominion are still admitted free of duty. The use of the Canadian canals was continued to American shipping and commerce on precisely the same terms as to those of Canada. The free navigation of the river St. Lawrence was still left open to American craft, and the shore fisheries of the St. Lawrence w^ere thrown open from year to year to American fishermen, on payment of a small license fee. -* EFFECT IN CANADA OF THE ABROGATION OF THE TREATY. The industry of Cantida had been largely directed to the supply of the American market with commodities for home consumption, as well as for foreign exportation, and the repeal in 18GG of the Peciprocity Treaty, under which so vast a trade had grown up, rendered imperatively necessary prompt measures to open new markets ibr the sale of Can- adian produce. These measures were at once taken. Under the influence of the formal notice given by the United States in 18G5, of their intention to ternuiuite the Treaty, federa- tion of the Provinces, then under discussion, was hurried on, and Ijeciime a fait accompli within fifteen months after its repeal. The Intercolonial railway was at once under- 13 ■1* 1 taken, at a cost of over $20,000,000, at the national expense, to secure direct connection to ami from tlie Atlantic ocean, at Halifax and St. Jolm, on Canadian soil ; and the last sec- tion of that road will shortly Ix^ open for trallic. Com- missioners were despatched to the Ihitish and otlier West India islands, and to South American States, to promote the extension of direct trade between them and the Domin- ion, The enlargement of the canals, the im])rnvement of the navigation of the lakes and river St. Lawrence, the con- struction of the Bay Verte canal, to connect the waters of the Bay of Fundy and the St. Lawrence, the subsidizing ol' ocean and river steamship lines, and the promotion of the great ship-building and fisliery interests, all received a new and vigorous impetus. These measures were attended with remarkable success. Only seven fiscal years have passed since the repeal of the Treaty, but already the loss inllicted by it has been more than made up, and excellent outlets in now directions opened for Canadian commerce ; with an increasing annual proportion of the vast carrying trade formerly done for the Provinces by the railways, canals, and steamshij)s of tlie Republic, transferred to Canadian hands. The trafllc l)e- tween the United States and the Provinces at once fell, from an average during the three years before the repeal, (according to Amei^n olFicial statistics,) of nearly §75,- 000,000 2)cr annum, t^an average of §57, 000, 000 per annum during the first three years following repeal ; — the act of confederation, too, removed from the category of Forein-u Commerce to that of Home Consumption, the large inter- changes of commodities between tlie several sections of the Dominion ; and the aggregate foreign commerce of the Provinces consequently I'ell in the first year after the re- peal of the Treaty to $l.;'.9,202,6ir) from Sli;0,401.),45r> in the previous year. As will be seen from the following state- ment, however, th(3 trade of tlie Dominion s|)eedily ntcov- ored from {\u\ blow, and the volume of its Foreign com- merce gradually increased until, in the seventh year from the repeal of the Treaty, it reached the great sum (for a 14 people of four millions) of 8235,301, 203, — being seventy- five millions higher than it had ever reached in any year of the treaty's existence : 18G7. Total exports and iniprn-ts of Canada and Newfoundland Si:'>0,202,G15 18G8. " " 130,505,015 18G0. " " 142,240,897 1870. " '• 101,275,538 1871. " " 184,852,000 1872. " " 205,330,043 1873. " " 235,301,203 Total Foreign Conunerce in seven vears... S], 207,807, 817 INJURIOUS EFFECT OF IJKrEAL OX UNn'F.I) MATK.S TRADE. The trallic between the Tnited States and the Dominion still retained large proportions, notwithstanding the har- riers now raised again-t it. The aggregate imports and exports which imniediatcdy l)eibre the repeal had been (according to the Ignited States returns) 807,909,102 in 1804, 871,374,810 in 1805, and 884,070,955 hi 1800, fell immediately after the repeal to 857,927,347 in 18G7, $50,024,493 in 1808, and 850,287,540 in 180!). Ibit there the falling off stopped. The volume of traffic then began steadily to reascend, and reached i!!(||r,939,125 in 1870 871,927,077 in 1871, 873,720,512 in 1872, and 882,381,020 in 187'"», — or within two millions of dollars of the highest point reached during the Treaty's operation. The aggre- gate trahic between the countries in the seven fiscal years since repeal ^vas 8400,807,720. r>ut large as this volume of trade is, it is instructive to observe how small a proportion of the foreign commerce of Canada this now forms, in comparison with the share of it enjoyed by the United States while the treaty was in operation. During its thirteen years' existence the aggre- gate exchange of conunodities between the countries aver- aged 40 per cent, of the entire Foreign Commerce of the Provinces ; and in its last year the average luid reached 4 ^ 1 y not less than 52^ per cent, of their entire commerce.. But since the repeal tlie case is totally altered. The propor- tion of the foreign commerce of Canada transacted with tlie United States from n2\ per cent, in IHGC), fell, in 18G7, to 42 per cent.; in 18!)S, to 41 per cent.; in 18G1>, to 40 per cent., in 1870, to 42 ]n>r cent.; in 1871, to 40 per cent.; in 1872, to :M\ per cent.; and in 187^5, to 35 per cent. The average pioportion of the connuerce of tlio l*rovinces has ])een since the Yv\K'a\ hut :]^^ per cent, against nearly 50 ]K'r cent, in the last live ye;irs of the Treaty. Had tlie Treaty not heun ahrogated in 18GG, and the percentage of Canadian trnllic with the States risen no higher than it did under the Treaty, tlie interchange of commodities between tlie countries in tlie last seven years woultl have aggregated six hundred millions of dollars. ClIANCiED CIIAKACTKIt 01' Till': TItAI'FIC Sl.\(JK IJKT'JIAL. J>ut it is not only in the diminution of conmierce that the United States have suffered by the abi'ogation of the Treaty. The changed character of the traffic now carried on between the c(juntries, in comparison Avith that formerly done, is also worthy of attentive observation. For ex am])le, the consumption of Lumber throughout the Re- public increases enormously every yuar, and indeed all over the worl'i. The home sui)ply of it in the United States is last disappearing ; prices go up steadily ; and here is the result, since the repeal of the Treaty, on the United States purchases from Canada, of that one article : 186G-'7. 1867-8. 18(;8-'9. 1869-70. 1870-M. 1871-2. 1872-3. Lumber exports to the Ignited States « .S6,4.,i7,8C0 . 6.727,006 . 7,208,446 . 8,670^702 . 8,264,837 . 8,410,917 .11,134,956 IG And the prices of liiiirhcr go iiji in promp' syni])atliy ■with tho iucreasinc; demand, for the benefit of th-^ lumber operators, who are in no need of sympathy in Canada, wliateve^ tliey may be in the United States, but to tlio in- jury of numerous branches of industry in wliich wood forms an important element, and to the serious embur- rassment of agricultural operations on prarie aiul other lands. And so it is with fish, l)arley, peas, wool, hides, sheep horses, and other articles of Canadian production, which cannot easily be got elsewhere. The demand from the United States is good and constant, notwithstanding tlic custom-house barriers, and the prices i'Ceep steadily up. TRAFFIC DRIVEN FROM UNITED STATES CHANNELS. But in regard to wheat, flour, provisions, and other arti- €les of which tlie United States have a surplus as well as Canada, the effect of the duties upon them has been to send tlirougli Canadian channels, direct to tlie maritime Provinces, the West India Islands and Great Britain, a vast amount of products that were formerly sold to New York and Boston houses, and shipped to these same markets through American channels. Wliere two countries alouir- o o side of each other liave each a large annual surplus of the same article, and that article is in world-wide demand, heavy duties against each otlier can hardly be efiective. The stuff will find its way to market by some route or otlier. CANADIANS NOW LARGE EXPORTERS OF WESTERN PRODUCTS. The change in tlie other side of the account is equally instructive. The imports of domestic productions of the United States (as distinguished from foreign productions) into Canada, in the four years previous to the abrogation of the Treaty averaged $28,i;')l,802 annually, but on its abrogation they immediately fell to 820,548,704 in 18G7 ; and though they have since gradually recovered, so that the Imports of the last seven years jiave averaged S25,G49,340 I syinj)athy 'j'" lumber t Canada, til 3 in- icli wood ■^ emb^r- lul otlior -■5, slieep 1, wbich rom the ling tlie ler arti- well as been to laritime , a vast v York markets alon^r- of the nnand, ective. ite or [Ually f the iions) ation II its 867; t the ),349 n per annum, this wa.s due, not to a demand for home con- sumption, l)ut to the increasing carrying trade of tlie Do- minion with foreign countries. The necessity of direct intercourse \\'itli foreign markets for Canadian products, forced on Canadian merchants l)y tlie repeal of the Treaty, led on to a considerable traftu.; with tliose markets in Ame- rican domestic products ; hence we iind in the imports of Canada from the United States in the last four years, such items as the following : lS71-'72. 1872-73. Meats— fresh, salted and smoked, 81,047,272 J?l,227,870 Swine Gl2,50(i 1,205,813 Flour and meal, 2,004,044 2,505,581 Indian corn... 3,778,250 4,300,854 Wheat 4,450,404 0,894,247 812,493,082 810,254,305 Large portions of these articles wert' purchased for for- eign exportation, eitlier in the raw state or after being manufactured in Canada. The general progress of this trade, tliough not consisting solely of American products, is pretty well indicated by the following ofllicial returns : 1808. Exports of foreign goods 84,190,821 1809. " " " 3,855,801 1870. " " " 0,527,022 1871. " " " 9,853,033 1872. " " " 12,744,125 1873. " " " 9,405,910 Total in six years 840,583,31 2 The home consumption of American domestic products in the Canada market has therefore largely decreased since the repeal of the Eeciprocity Treaty. BALANCE OF TRADE NOW LARGELY AO.MNST THE RErUMLIC. But the most remarkable effect of the abrogation of tlie Keciprocity Treaty was the immediate change it produced i\ 18 ill the ])alancG of trade "between the countries. From the year 1820 up to 18GG, a term of 4G years, there were only (according to tlie United States lieturns) live years in which the annual transactions between the Republic ond the Provinces did not show a largx; cash bahmce against the I*rovinces. But four of these five exceptions were merely the result of "War prices and the over-valuation usual in Free-entrie.j. The entire interch.ango of trallic from 1820 to 18GG sliowed a cash balance in I'avuui* of the United States of 8194,908,140. But this state of things came to a sudden end with the expiration of the Treaty ; and the balances in favor of the Dominion have since been as follows : In 18GG--(;7 S9,281,0G9 18G7-'G8 4,0:)!),949 18C8-'G9 7,89:],082 18G9-70 14,240,477 1870-71.. 2,921,025 1871-72 8,202,:^52 1872-7;^ 5,2:u;,514 Total balance against U. S. in seven years... $51,875,008 DIVERSION OF TRAFFIC FIIOM UNITED STATES OCEAN POUTS. There is still another feature of the changed relations between the countries well worthy of s})ecial note. The time was when the merchants of New York and Boston controlled a large proportion of the import and export traftic of the British Provinces; but that time passed away with the Ileciprocity Treaty. Customs-duties, custom-house restrictions and examinations, consuls' certificates, and bonding entries and charges, with all their annoyances and delays, have acted jeverely against the traffic of these Ports in Canadian products, and the railways and canals leading from them, and forced the business into more northern channels. Mr. E. H. Derby, Special Commissioner of the Treasury, in his official report to Mr. McCulloch of 1st January, 1866, Vom the Bre were years in blic ond ainst the erely the usual in nn 1820 ; United ^s came aty ; and been as ),281,0G9 l:,0',)0,949 ',80:3,082 t,2-10,477 !,921,G25 !,2()2,:-^o2 .,2:50,514 ,875,008 TOUTS. elations te. The Boston export id away ni-house 3S, and ces and se Ports loading lorthern reasury, V, 1866, 1 1 9 (page 81,) makes this statement: "The commerce of I'oston affected by tlie rieciimicity Treaty exceeds 327,000,000 an- nually, uamely : Im])orts i'rom atid exports to the Maritime rrnvitires, 1?0, 000,000 ; outfils and rct\uiis in (U!e])-.sc'a lisli- eries, ^?1 1,000,000 ; iuiports of wdd], L;niin, and animals across the frontier of C'anada, and entered tliere, \vitli re- turns at least 810,000,(1(10." We hav(! no per^omd knowl- edge as to the accuracy of this estimate, but no ln-tter autlierity on tlu! jniint (h:in Mr. Dei'by could be desired. ])ut if tliis was the annu;d interest of one United States Port affected by the Treaty in USOC), wlw.u tb.e entire annual foreign commerce of the Province ^vas bttle more tiian a hundi'cd millions of dollar-, how shall the gain of (ive or six niillioi to h(; I'. S, [r"asury, levied on such neces- saries of lifi' as beef, flour, co;d, luinlier, &c., com])ensate the loss of driving away from the great m;irts of the Re- public the lion's share of a traffic already amounting to two hundred and tiiirty-tive millions per annum. COMPAli.VTIVi: I.M^ORTAXCK OK CANADIAN' TUVFFIC IN SI'ITE OF EKSTI!I(.;T1()NS. But with (dl these barriers and drawbacks in the May of natural and easy tratlic, it is in the highest degree instruc- tive to observe how important the commercial transactions between the liepublic and Canada remain, even now, in comparison M'ith those between the United States and countries more remote. Permit us to analyze the export traflic of the United States for the fiscal year ending 30th June, 1 872, in order to show this. In that year the entire export traffic of the liepublic with foreign countries, in- cluding the trade in transitu, was as follows : Of home products 8549,219,718 Of foreign products 22,700,742 Of foreign products ia transitu over the rail- ways, &c., of the United States to foreign countries 31,385,320 Total U. S. export traffic, 1871-72 $603,374,787 20 Of this vast traffic, Groat Britain and lier Colonics (omitting Canada and Newfound- land) took from the United States — Of home products 8329,224,701 Of foreign products 8,(S44,872 Of goods in tramitu ^^42(),'-532 ;U 1,489,005 Ecmaining export traffic 82(11,884,882 Of this remaining traffic, the l>ritish North American Provinces took — Of home products 827,774,001 Of foreign products 4,084,980 Of goods in transitu 24,008,114 Total, B. N. A. Provinces 856,857,194 Germany took 43,483,003 France and her possessions 34,704,730 Spain and her possessions 27,577,792 8162,622,719 And all the rest of tlie world $99,262,163 From these figures it will be seen that, in the year 1871-2, Great Britain and her colonies (including Canada) took over 06 per cent, of the entire export traffic of the United States, and all the rest of the world but 34 per cent. It will also be seen that, in that year, the Canadian Do- minion and Newfoundland took 813,874,191 more of the export traffic of the United States than did any country in the world outside the British Empire ; that she took $22,152,464 more of it than France and all her possessions^ and more than double the amount taken by Spain ami all her possessions. A further analysis of the foreign commerce of the United States shows that, in the same year, the export traffic from the United States to the Dominion exceeded the entire exports of the United States to tlie Chinese Empire, the Eussian Empire, Brazil, IMexico, Italy, Japan, Hayti, Yen- 21 !41,48i),005 101,884,882 )2,622,719 •9,262.163 the year Canada) ic of the 34 per Han Do- le of the luntry in le took sessions and all United lie from entire Ire, the i, Ven- ezuela, Ponniark and licr possessions, Chili, rortu^^al and her ])ossessions, tlie Central American States, tlie Austiian Eiiijiiro, tlie Argentine Kcpuhlic, tlie Turkish Empire, the Sandwich Islfmds, Swcdiii, Norway, Lilteria and (Ireece, all ]iut too'cther. The tutal export tralTic of the United States to these twenty countries, in home products, foreign goods and goods in frari.situ, being 850,063,35!), while that to Canada was ,«?56,857,194. A continued analysis of the Unitoil States ollicial Picturns shows that, while Canada in 1871-'2 thus swelled the ex- port sales of the domestic and foreign goods of the United States, and the carrying trade of their ocean fleet and rail- ways and canals, to an equal extent with the above twenty countries, the United States took that year from Canada, in return but 840,001,432, of which 84,614,502 was gold and silver, 81,180,790 goods of United States production returned to the States from Canada, and 8691,299 efi'ects of immigrants passing through Canada into the United States. But, on the other hand, while the twenty countries above named took, as above stated, but 856,003,359 of the export traffic of the United States, tjieir import trafhc into the United States was no less than 8108,377,613— of which only 87,218,620 was gold. COMPARATIVE DUTIES IX THE UNITED STATES AND DOMINION. Again: of the entire purchases by Canada from the United States in 1871-72 of home and foreign products, (excluding the trallic in transitu from the comparison,) arti- cles to the value of 820,710,532 were admitted free of dutij, and only on 812,048,548 was any duty paid. The total amount of tluty levied was 82,216,215, or an average per centage on Canada's entire importations from the States (free and dutiable) of that year, of only 6^ per cent. On the other hand, of the ])urchases by the United States from Canada in tlie same year, the articles admitted free of duty were to the value of but 80,329,881, and those subjected to duty 831,631,551. Indeed, as there \vere included among the free importations 84,619,502 of gold and silver coin apd 22 bullion, $1,180,71)0 of IJiiiled SUitcs productions roLuniod to tho States, ami Sli8G,800 of elfccts of iinmigr.ints passing tlirou_. year ending SOtli ,Iune, 1873. The declared valu(! of tlie entire export traflic ol' the United Slates witli foreign countries was as follows : Of home products 8019,132,533 Of foreign products 28,140,511 Of foreign ])r()ducts passing in {ransiin over the railways and canals of the States to foreign countries 40,000,1 85 Total United States export traHlc 1872-73, 8700,040,250 Of til is vast export traffic Great Ihitiau and 1.! r co^Miics received from t!io United States : Of home products 8420,030,283 Of foreign products 1 8,030,1 71 Of foreign goods brouglit over the railways and canals of the States. .^ 33,071,520 472,040,083 Balance to tlie rest of the worhl 8234,200,276 Of tlie above great amount of tralllc taken I'rom the United States by Great Britiiin and her colonies Canada took : Of home products 834,308,811 23 roiuniod i passing xtions of wore ill lid I cus- ler coiit. Total export tralfio of the United States to r ending e export ) was as 1:32,533 ,149,511 ,009,185 ,940,259 640,083 200,276 oni tlic Canada 368,811 203,745 784,184 Canadi I. Fr S,, All rmany s sliare was... and lier possess! 11(1 her i)Ossessi( S565, )i) 6,740 an 68,724,421 3.6,083,266 20,257,121 00,234.468 r.n'nl r>ritain and ho.v possessions, tlunvfore, took 67 ]H'r cent, of Uio entire e.\])ort trallic ol' tlic United Stales for 1872-'3., and all the rest of the world but 33 per cent. Willi the e.\ce))tion of Gerniany, (wliose tr.iHie exeeeded thiit of tlio Dominion by only 83.,3,(J7,(;81,) Canada in this year was the h irucst eu^lonier ol" tlie United States ontsidt the liritish l-hnpiiv. Slu; tot)k 820,273,470 of United •States e.xj)ort tr.iHio nioii' than was tal^en by I'rance and her possessions ; nmni than doulile what was taken by Spain and Iut jiossessions ; and more thiin the llussian Enipii'e, Jai)an, Italy, Ih'ftzil, jMexico, Ifayli, Peru, the Argentine IJepublie, Venezuela, Sweden, Norway, Den- mark, and her pijssessions, Chili, China, Uruguay, the Aus- trian Empire, the Tiu'kisli Empire, the Central American States, Portugal and her possessions, tlie Sandwich Islands' Liberia and Greece, all put together. These twenty-two countries took in all $64,001,145 of the export tralfic of the United States, of which $12,307,315 was gohl, while Canada alone took 865,356,740, of which only 84,260,181 was gold. On tlie other hand, the United States in the same year irnporte;l from Canili but 843,800,070, oi' which 86,150,- 538 was gold, 81,211,155 products of the United States returned from Canada to the States, and 8720,085 effects of immigrants passing through Canada into the United States. The actual importation of Canadian merchandise was therefore but 835,708,302, while the twenty-two coun- tries above named, whose share of the Uniteil States ex- port tralfic of the year was but 864,001,145, including gold, or 852,503,830, excluding it, sent into the United States in the same year no less than 8131,101,423, of which but 24 $2,104,393 was gold. TJie " balance of trade" for the years 1872-'3, therefore, was Sr>2,593,830 of export traffic from the United States into these twenty-two countries, and $128,907,030 of imports into the United States from them,— or 870,303,200 against the United States. And tlie contrast is even more marked when the United States customs-duties on Canadian products are compared with those on the products ot other countries wliose com- merce is of infinitely less moment than that of Canada. In the year 1872-73, of the $35,708,392 of merchandise im- ported hy the United States from Canada, only S-1,334,285 was admitted free of duty, and on the remaining amount of $31,374,107 duties were levied to somewhere about 25 per cent, on the entire importations from Canada of that year. Canada, on the other hand, on her importations from the United States the same year, admittted mciclian- dise to the value of $22,010,690 entirely free of duty, and levied duties on only 810,555,860, to the amount of but $2,923,795, or Sh per cent, on the entire importations of merchandise for the year. IIow different was it with the twenty-two countries above named. Of their importationt into the United States, $102,501,338 were received free of duty, antl only on $29,200,085 was any duty charged. It is not for us to criticise in any Avay the manner in whicli the United States choose to impose their duties. We merely mention tliese things to remind you of the disad- vantageous position Canada occupies in her transactions with the liepublic, in comparison with that of other coun- tries whose transactions are not to l)e c()m])ared in extent or profit witli tliosc of'tlu' Ih'itisli Provinces. Wlicn, witli all thes'i facts before tlicm, Her Majesty's Advisers invite the Government of tlie United States to reconsider the whole commerciid relations of the Republic and the Dominion, with a view to placing them on a friendly and durable basis of reciprocal advantage, tluj (j^uestion 2.0 naturally presents itself, how it conies that, having pros- pered so well since the repeal of the Reciprocity Treaty of 1854, Canada now sechs for its restoration. The answer is as natural as the ([uestiou. The population of the United States is forty millions, and lh;it of the dominion is bnt four i.'llions. The [houndary hetween thcni is for the most part hut a surveyor's line, often indvuown even to those who live beside it; and it is of the utmost iniportance to Canada that connuon'interests and mutual 'j;ood will should exihb hetween the countries. And what so conducive to this (!nd as commercial intercourse, generously carried on and mutually ])rofitalile ? The people of Canada are not ignorant that a market near at hand is better than a dis- tant one ; and good as their present markets are, they would gladly have the old one in addition. They com- prehend the barrier' that custom-house restrictions throw in the way even^of the existing tratlic ; and they seek to have these withdrawn. They are proud of their own St. Lawrence route, and intend to improve it to the uttermost for the benefit of the''ureat West and their own ; but would gladly use the Ocean Ports and other channels of commerce of the Eepulilic, when freights and fares and friendly reci- procity draw them in that direction. And very great as have been the advantages always accruing to the United States from reciprocity, the Canadians .can iind only cause of hearty rejoicing at that, so long as they themselves con- tinue to enjoy that moderate degree of i)rosperity with which rrovidence has blessed them. There is no mystery, no arricrc pcnscc, in their desire that the commercial rela- tions of the Republic and the Dominion sliould be ]ilaced on the most kindly and unfettered and mutually advantage- ous basis consistent with their res])eetive existing oliliga- tions, and with tliat connection with Crcal Diitain which the Dominion so ha])pily enjoys. It was with these views, and in this spirit that the Can- adian Administration availed itself , not only in a pecuniary sense, but as tending to footer and strengthen those friendly feelings th;it ought eminently to prevail between two peophis mainly derived i'rom the same, origin, speaking the same language, and occujtying the geographic position towards each othei of the United States and Canada. We conveyed to you the assurance of the Canadian (Government, that acting in this spirit, and in the confidence that we would be met in tlie same spirit by the Goverinnent of the Iicpublic, the assc^nt of Canada will be heartily given to any measure calcidatetl to ])ro- niote the free and fair interchange of commodities, to re- duce the cost of transportation, or conduce to the joint ad- vantage of the two countries, so that it be not seriously prejudicial to existing industrial interests of the Ciinadian people. In the spirit of this assuranet', we invited you to suggest for discussion the classes of manufacturers tliat you would desire to have embraced in the new treaty. This you de- clined to do ; but you urged that we should indicate the enlargements of the old Treaty likely to be accej'table to both countries. Without acquiescing in tin; propriety of this course, we yiehled to your wishes, and now j)roceed to fulfil our promise to do so. ')«; SUGGESTIONS, We propose tliat tlie new Treaty sliall be for the term of twenty-one years,— to inspire confidence among business men investing their capital in such extensive enterprises as would naturally follow from the completion of a compre- hensive Treaty. We propose tliat the Treaty shall provide for the free admission into tlie United States, the Dominion of Canada and the island of Newfoundland, of the following articles, as under the treatv of 1854 : Animals and their ^^rroducts. Animals of all kinds. Butter. Cheese. Eggs. Furs, undressed. Hides, undressed. Horns. Lard. Meats, fresh, smoked or salted. Telts. Poultry. Skins, undressed. Tails, undressed. Tallow. Wool. Products of the farm. BreadstufPs of all kinds. Broom -^orn. Cotton-wool. Flax, unmanufactured. Flour of all kinds. Fruits, dried and undi'ied. drain of all kinds. Hemp, unmanufactured. riants. Rice. Seeds. Shrubs. 29 Tobacco, unmanufactured. Tow, unmanufactured. Trees. Vegetables. ProdurAs of the forest. Asbes. Bark. Firewood. Lumber of all kinds, round, liewed or sawed, unmanu- factured in wbole or in part. Pitch. Tar. Timber of all kinds, round, hewed or sawed, unmanu- factured in whole or in part. Turpentine. Products of the mine. Burr or grindstones, hewn, wrought or unwrourrht. Coal. ° Gypsum, ground or unground. Marble in its crude or unwrought state. Ores of all kinds of metals. Slate. Stone in its crude or unwrought state. Products of the uiater. Fish of all kinds. Fish, products of, and of all other creatures \Wu\^ in the water. " Fish oil. Sund ries. Dye-stuffs. Manures. Kags. We propose the following additions to the above list of free articles : Agricultural ini])lements— to be defined. Bark, extracts of, for tanning purpose. 30 Bath bricks. Bricks for building purposes. Kiirtli oolire-;, fn-ouud or unnround. Hay. LiuiG. Malt. Mamilactiuvs of iron or stetd. ]\raiiufactures of iron or steel and wood jointly. ]\ranufaci.ures of wood. Mineral and other oils. Plaster, raw or calcined. Salt. Straw. Stone, itKirble or granite, partly or wholly cut or wrought. We propose tiiat the enjoyment of the Canadian coast fisheries shall be conceded to the United States during the continuance of the new Treaty, in the manner and on the conditions provided under the Washington Treaty, ex- cept those in regard to the payment of money compensa- tion for the privilege. We propose that durijig the conti.iuance of the Treaty the coasting trade of Canada and the TJnited States shall be thrown open to the vessels of both countries on a foot- ing of complete reciprocal eqnality. We propose that the Caiiadian canals, from Lake Erie to JMontreal, be enlarged forthwith at the expense of Can- ada, so as to admit of the passage of vessels 2G0 feet in. length, with 45 feet beam, with a depth ecpud to the capacity of tlie lake harbors. We ])ropose that, during the continuance of the Treaty, all the Canadian canals and the Erie, Whitehall, Sault Ste. Marie, and Lake St. Clair canals, in the United States, shall be thrown open to the vessels, boats, and barges of both countries on tlie same terms and conditions to the citizens of both countries ; and that full power be given to tranship cargo from ships or steamers into canal-boats at any canal entrance, and also to tranship boats into ships or steamers. at any canal outlet. ;n The frc(3 naviiratioii of the St. Lawrence river having been conceded forever l»y Great Britain to tiie United Stores under the Washington Treaty, but the free naviga- tion of Lake Micliigan having been conceded for ten years only by th(^ United States to Great Britain nnder the same Treaty, we propose that both concessions be ])hiced on the sanij footing, free fi'oni restrictions as to re])orting at any port in the United Staliis other than the port ul' destination. We ])ropose tliat during the continuance of the Treaty, vessels of all kinds, built in the United States or Canada may be owned and saik'd by llie citizens of the otluM", and be entitled to registry in cither country, and to all the benefits thereto pertaining. Wi) pntpose that a Joint Coniniission sliall be formed, and continued during the operation of the Treaty, ibr deepen- ing and maintaining in thoroughly ellicii/nt condition the navigation of the rivers St. Clair and Detroit, and Lake St. Clair, on whichever side of the river tlu; best channel shall be found; the expense to be defrayal jointly by the con- tracting parties, by contributions corresponding to the commerce carried on in these waters by them respectively. We propose that a Joint Commission ^hall be formed, at joint expense, and maintained during tlie operation of the new Treaty, for securing the erection and proper regulation of all Light-houses on the great lakes commoii to both countries, necessary to the security of the sliipping tli veon. We propose that a Joint Commission shall be formed at joint expense, and maintained during the continuance of the Treaty, to promote the propagation of fish in the inland waters common to both countries, and to eulbrce the laws enacted for the protection of the fish and iishing grounds. We propose that citizens of either country siiall be en- titled, during the continuance of the Treaty, to take out Letters Patent for new discoveries in the other country, on the same footing as if they had been citizens of that coun- try. We propose that the best metliod of discountenancing and punishing illicit trade between the countries shall be 32 the sul)ject oi consideration and co-operation by the Cus- toms Authorities of tlie two countries. That in case a Treaty of Connnercial Heciprocity should not have been concluded Ijefore the end of the present ses- sion of Congress, the right of adjudication of the claim of Canada to compensation for the fisheries, under articles XXTI to XXV of the Treaty of Washington, would m no degree he waived, and that in that event the fulfilment of the stipulation contained in those articles ^vould he imme- diately proceeded with. AYasiiingtox, D. C, 27 Aiml 1874. (Signed) EDWAIID THORNTON, '" GEO. BROWN. us- uld scs- L of cles no b of mc- if'uXjL text OK TUK OLD RECrPJIOCITY TREATY OF 1854 ^, Her MaJGstv, the Queen of Great Brllain, being equally cle3irous with tlio Government of the Uriiicd Slates to avoid further misunaer.stamling between their respective Su])jects and Citizens, in regard to the extent of the right of Fishin- on the coasts of Ihi'wh North America, secured to each bj Article I of a Convention between the Cniled Slates and Great nrilaiu, signed at Lrmlon on the twentieth day of October, 1818 , and being also desirous to regulate the Commerce and Navigation between their respective Terri- tories and People, and more especially between Her Majes- ty's Posssessions in North America and the United States m such manner as to render the same reciprocally benefi- cial and satisfactory, have respectively named Plenipoten- tiaries to confer and agree thereupon, that is to sav • Her Mi^'esty, the Queen of the United Kingdom of Great Britain and Ireland, James, Earl of Elgin and Kincardine, Lord Bruce and Elgin, a Peer of the United Kingdom, Knight of the Most Ancient and Most Noble Order of the Thistle and Governor General in and over all Her Britanni • Majesty's Provinces on the Continent of North America, and in and over the Island of Prince Edward; and the President of the United States of America, WilUam L. Mercy, Secretary of State of the United States, who, after having communi- cated to each other their respective full Powers, found in good and due form, have agreed upon the followiu- Arti- cles : — ° 3-i ARTICLE I. It is agreed by the High Contracting Parties, that iu addition to the Hberty secured to the United States fisher- men by the above mentioned Convention of October 20, 1818, of taking, curing, and drying fish on certain coasts of the British North yhncrican Colonies therein defined, the Inhabitants of the United Stcdes shall have, in common with the Subjects of Her Britannic Majesty, the liberty to take fish of every kind, except shell-fish, on the sea-coasts and shores, and in the bays, harbours, and creeks of Canada, Neio BrnnsiuicJx, Nova. Scotic, Prince Edward's Island and of the several Islands thereunto adjacent, -without being restricted to any distance from the shore ; Avith permission to land upon the coasts and shores of those Colonies and the Islands thereof, and also upon the Ma(jd(den Islands, for the purpose of drying their nets, and curing their fish ; provided that in so doing, they do not interfere with the rights of private property or British fishermen in the peaceable use of any part of the said coast in their occu- pancy for the same purpose. It is understood that the above mentioned liberty ap- plies solely to the sea fishery, and the salmon and shad fishe^-^es, and all fisheries in rivers, and the mouths of rivers, are hereby reserved exclusively for British fishermen. ^Ind it is further agreed, that in order to preventer settle any disjDutes as to the places to which the reservation of exclusive right to British fishermen contained in this Article, and that of fishermen of the United States contained in the next succeeding Article, apply, each of the High Contract- ing Parties, on the application of either to the other, shall, within six months thereafter, appoint a Commissioner. The said Commissioners before proceeding to any business, shall make and subscribe a solemn declaration that thev will impartially and carefully examine and decide to the best of their judgment, and according to justice and equity, without fear, favor or affection to their own country, upon all such places as are intended to be reserved and excluded from the common liberty of fishing under this and the next ., ■ 35 fc!» sncceoclinp,' Article ; and sncli docbration shall bo ontored on tho record of their proceedings. The Commissioners shall name some third person to act as an Arbitrator or Umpire in any case or cases, on which th(3y may them- selves diller in opinion. If they should not be able to agree upon tho name of such third person, they shall each name a person, and it shall bo determined by lot which of the two persons so named sludl be the Avl)itrator or Umpire in cases of dit Terence or disagreement between the Com- missioners. Tlio person so to be chosen to be Arbitrator or Umpire shall, before proceeding to act as such in any case, make and subscril)e a solemn declaration in a form similar to that wliicli shall already have been made and sub- scril)ed by the Commissioners, wliich shall bo entered on the record of their proceedings. In the event of the death, absence, or incapacity of either of the Commissioners or of tho Arbitrator or Umpire, or of their or his omitting, de- clining or ceasing to act as such Commissioner, Arbitrator, or Umpire, another and different person shall be appointed or named as aforesaid, to act as such Commissioner, Arbi- trator, or umpire, in the place and stead of the person so originally appointed or named as aforesaid, and shall make and subscribe such declaration as aforesaid. Such Commissioners shall proceed to examine the coasts of the North Aiuerlcan Provinces and of the United States embracing within the provisions of the first and second Articles of this Treaty, and shall designate the places re- served by the said Articles from the commom right oi fish- ing therein. The decision of the Commissioners and of the Arbitrator or Umpire shall be given in writing in each case, and shall be signed by them respectively. The High Contracting Parties hereby solemnly engage to consider the decision of the Commissioners conjointly, or of the Arbitrator or Umpire, as the case may be, as ab- solutely final and conclusive in each case decided upon by them or him, respectively. I. 36 ARTICLE II. It is agreed by the High Contracting Parties that Jh-Hish Subjects shall have, in common witli the Citizens of the United Siafcf^, the liberty to take fish of every kind, except shell-fish, on the Eastern sea coasts and sliorcs of the United Stales, North of the oGth parallel of North Latitude, and on the shores of the several Islands thereunto adja- cent, and in the bays, harbours, and creeks of the said sea coasts and shores of the United States and of the said Islands, without buing restricted to any distance from the shore, with permission to land upon the said coasts of the United States and of the Islands aforesaid for the ])urposc of drying their nets and curing their fish ; provided that in so doing, they do not interfere with the rights of p?'ivate property, or with the fishermen of the United States in the ]-)eaceable use of any part of the said coasts in their occupancy for the same purpose. It is understood that the above mentioned liberty ap- plies solely to the sea fishery, and that salmon and shad fisheries, and all fisheries in rivers and mouths of rivers are hereby reserved exclusively for fishermen of the Uuitcd States. ' I » ARTICLE III. It is agreed, that the Articles enumerated in the Sched- ule hereunto annexed, being the growth and produce of the aforesaid British Colonies or of th ■ ^hited States, shall be admitted into each Country respectively free of duty : < >• SCHEDULE. Grain, flour and breadstutrs of all kind.s. Animals of all kinda. i'resli, smoked, and salted meats. Cotton-wuol, seeds and vegetables. Undried fruits, dried fruits. Fish of all kinds. Products of fish and of all other creatures living in the water. Poultry, eggs. 37 I >•• ni(l(!s, furs, skins or tnils, undressed. Stone ur niarblu in its criulu or unwrou'dit state Slate. TJf.ttcr, clieese, tullow. Liird, iiorns, manures. Ores of metals of all kiiids Coal. I'iteii, tar, tui})entine, ashes. Timber and lumlier of all kinds, round, hewed, sawed, un- mannfaetured, in whole or in })art. Firewood. Plants, shrubs and trees. Pelts, wool. Fish-oil. Piee, ])r()onieoMi, and bark. Gypsum, _L,nound or unnround. Hewn or wrou-ht or unwrought burr or grindstones Dye-stuffs. Flax, luMiip, and tow, unmanufaetured. Uiimanufactured tol)aeeo. itags. APtTICLEIV. It is apjreed that the Citizens and Inliabitants of the United States sliall liavo the right to navigate the l\i\ev St. Lawrence and the Canals in Cnmula, used as the means o'f communicating between the Great Lakes and the Atlantic Ocean, with their vessels, boats and crafts, as fully and freely as the Subjects of Her Baitannic Majesty, subject only to the same tolls and other assessments as now are or may hereafter be exacted of Her Majesty's Subjects, it being understood liowever, that the British Government retains the riglit of suspending this privilege on giving due notice thereof to the Government of the Uaitcd Slates. It is further agreed that if at any time the British Government should exercise the said reserved right, the Government of the United States shall have the right of sus- pending, if it think fit, the operation of Article III. of the present Treaty in so far as the Province of Canada is affected thereby, for so long as the suspension of the free navigation of the Iliver St. Laivrence or the Canals may continue. 38 It is further agreed tliat British Subjects shall have the right freely to navigate Lake MicJugan with their vessels, boats and crafts, so long as the privilege of navigating the Kiver St. Lawrence secured to American Citizens by the above clause of the present Article shall continue, and the Government of the United States further engages to urge upon the State Governments to secure to the Subjects of Her Britannic Majesty, the use of the several State Canals on terms of equality with the Inhabitants of the United States. And it is further agreed, that no Export duty or other duty shall be levied on lumber or timber of any kind cut on that portion of the American territory in the State of Maine, watered by the Piiver St. John and its tributaries, and floated down that river to the sea, when the same is shipped to the United States from the Province of New Brunswick. If ARTICLE V. The present treaty shall take effect as soon as the Laws required to carry it into operation shall have been passed by the Imperial Parliament of Great Britain, and by the Provincial Pitrliaments of those of the British North Ameri- can Colonies which are effected by this Treaty on the one hand, and by the Congress of the United States on the other. Such assent having been given, the Treaty shall remain in force for ten years from the date at which it may come into operation, and further, until the expiration of twelve months after either of the High Contracting Parties shall give notice to the other of its wish to termi- nate the same ; each of the High Contracting Parties being at liberty to give such notice to the other at the end of the said term of ten years, or at any time afterwards. It is clearly understood, however, that this stipulation m not intended to affect the reservation made by Article IV of the present Treaty with regard to the right of tempo- rarily suspending the operation of Articles III and IV thereof. >• 39 ARTICLE VI. And it is liereby further agreed tliao the provisious and stipulations of the foregoing Articles shall extend to the Island of Ncwfoun• IPTJILi^Il. TEXT OF THE PROrOSED RECIPROCITY TREATY. Her Majesty tlie Queen of Great Britain, and the United States of America, being desirous of improving the com- merce and navigation between their respective territories and people, and more especially between her Majesty's possessions in North America and the United States, in such manner as to render the same reciprocally beneficial, have respectfully named plenipotentiaries to confer and agree thereupon, that is to say :***** A treaty for the reciprocal regu- lations of tlie commerce and trade between the United States and Canada, with provisions for the enlargement of the Canadian canals, and for their use by United States vessels on terms of equality witli British vessels. ARTICLE 1. It is agreed, by the higli contracting parties, tliat, in addi- tion to the liberty secured to the United States fidiermen by the convention between Great Ih'itain and the United States, signed at London on the 2()th d;iy of October, IS 18, of taking, curing and drying fisli on certain coasts of the British North American Colonies therein defined, tlie inhabitants of the United States shall have, in common with the subjects of her Britannic Alajesty, the liberty for the term of years mentioned in Article XIII of this Treaty to take iish of every kind, except shell- (ish, on the sea coasts and shores, and in tlie bays, harbours and creeks of the Provinces of Quebec, Nova Scotia, New Bruns- wick, and Frince Edward Island, and of the several islands k 41 •I .w k thereunto adjacent, without being restricted to any distance from the shore, with permission to land upon the said coasts, and shores, and islands, and also upon tlie Magdalen Islands, for the purpose of drying tlieir nets and curing their fish ; provided, that, in so doing they do not interfere with the rights of private property or with Ih'itish iishermen in the peaceable use of any part of said coasts in their occupancy for the same purpose. It is understood that the above-men- tioned liberty applies solely to the sea fishery, and that the salmon and shad fisheries, and all other fisheries in rivers and mouths of rivers, are Iiereby reserved exclusively for British fishermen. ARTICLE II. It is agreed by the high contracting parties tliat British subjects shall luive, in common with the citizens of the United States, the liberty for the term of years mentioned in Article XIII of this treaty, to tahe fisli of every kind except sliell fisli on the eastern sea coasts and shores of the United States north of the tliiity-ninth parallel of north latitude, and on the shores of the several islands thereunto adjacent, and in the bays, harbours, and creeks of the said sea coasts and shores of the United States, and of the said inlands, ■without being restricted to any distance from the shore, with permission to land upv)n tlie said coasts of the United States and of the islands aforesaid, for the purpose of drying their nets and curing their fisli; ])rovided that in so doing they do not interfere with the rights of privato propi.:i'ty, or with the fishermen of the Unite^l Stati's in the. peaceable use of any part of the said coasts in their occupancy for the same pur- pose. It is understood that the above-mentioned liberty a))- plies solely to the sea fishery and that salmon and shad fisheries, and all other fisheries in rivers and mouths of rivers, are liereby reserved exclusively for fishermen of the United States. AUTICLK III. It is agreed that the places designated by the Commis- sioners ai)pointed under the first article of the treaty between li 42 Great Britain and tlie United States, concluded at Washinc- ton on the otli of June, 1854, upon tlie coasts of the United States and Her Baitannic Majesty's Dominions, as places re- served from tlie common right of fishing under that treaty, sliall he regarded as in like manner reserved from the common right of lisldng under the preceding articles. In case any question sliould arise between tlie Governments of Her Bri- tannic Majesty and of the United States as to the common right of fishing in places not thus designated as reserved, it is agreed tliat a Commission shall be appointed to designate such places, and shall be constituted in tlie same manner, and have the same powers, duties, and authority, as the Commis- sion appointed under the said first article of the Treaty of the 5th of June, 1854. ARTICLE IV. It is agreed that the Articles enumerated in Schedules A, B and C, hereunto annexed, being the grovv'tli, produce, or manufacture of the Dominion of Canada, or of the United States, shall, on their importation from the one country into the other, from the fii-st day of July, 1875, to the 30th day of June, 1870, (Ijoth included) pay only two-thirds of the duties payable at the date of this Treaty on the importation into sucli country of sucli articles respectively ; and from the 1st day of July, 1876, to the 30th day of June, 1877, (both included), shall pay only one-tliird of such duties ; and on and after t^ o first day of July, 1877, for the period oi years mentioned in Article XIII of this Treaty, shall be ad- mitted free of duty into each country respectively. For tlie term mentioned in Article XIII no other or higher duty shall be imposed in the United States upon other arti- cles not enumerated in raid Schedules, the growth, produce, or manufacture of Canada, or in Canada, upon such other articles the growth, produce, or manufacture of the United States, than are respectively imposed upon like articles the growth, produce, or inaniifacture of Great Britain or any other countrv. I 43 4 SCHEDULE "A." Consi«tiiig of tlie Ibllowino' Xatural prod a els : Animals of all kinds. Ashes — I'ot, Tcaii and Soda. Bark. Bark, Extract for Tannine^ i)urposes. Bath Bricks. l^readstuiis of all kinds. Bricks for building and fire I tricks. P>room-corn. Burr or Grindstones, hewn, wrought, or unwiou^hi. Butter. Cheese. Coal and Coke. Cotton-wool. Ct»tton-waste. Dye-stulfs. Earths, Clays, Ochres, and Sand, gi'ound (»r unground. Eggs. Fish of all kinds. Fisii, jH-odiicts of, and of all other creatures living in the water, except fish preserved in oil. Firewood. Flax, unmanufactured. Flour and Meals of all kinds. Fruits, green or dried. Furs, undressed. Grain of all kinds. Gypsum, ground, ungTound, or calcined. Hay. Hemp, unmanufactured. Hides. Horns. Lard. Lime, ^falt. Manures. Marble, Stone, Slate, or Granite, wTought or unwr ought, bleats, fresh, smoked, or salted. Ores of all kinds of metals. Peas, whole or split. Belts. Petroleum Oil, crude or relined, or Benz< )le. Pitch. Plants. 44 Poultry of all kinds. Rags of all kinds. Rice. Salt. Seeds. Shrubs. Skins. Straw. Tails. Tallow. Tar. Timber and Lumber of all kinds, round, hewn and sawn, unmanufactured, in whole or in part. Tobacco, unmanufactured. Tow, unmanufactured. Trees. Turpentine. Vegetables. Wool. II SCHEI)U^3 "B." Consisting of the following Agricultural Implements Axes. Bag-liolders. Eee-hives. Bone-crushers, and parts thereoi'. Cultivator^., or parts thereof. Chall'-cutters, or parts thereof. Corn-huskers, or parts thereof Cheese vats. Cheese- factory heaters. Cheese presses, or parts thereof. Churns, or parts thereof. Cattle-feed boilers and steamers, or parts thereof. Ditchers, or parts thereof. Field rollers, or parts tliereof. Fanning mills, or parts thereof. Feed-choppers, or parts tliereof. Forks for hay and manure, hand or horse. Orain-drills, or parts thereof. Grain broail-cast sowers, or parts thereof. Grain-crushers, or parts thereof. Harrows, Hoes, hand or horse. Horse-rakes. .1 41 - «► wn, Horse-power machines, or parts thereof. Hay-tedders, or parts thereof. Liquid-manure Carts, or parts thereof. Manure-sowers, or parts thereof. Mowers, or parts thereof Oil, and Oil-cake Crushers, or parts tliereof. Ploughs, or parts thereof. Koot and Seed Planters, or parts thereof Eoot Cutters, Pulpers, and Washers, or part^ thereof. Eakcs. Peapers, or parts thereof. Pea])ers and Mowers combined, or parts tliereof. Spades. Shovels. Scythes. Snaiths. Threshing Machines, or parts thereof ' ^ SCHEDULE "C." Consisting of the fallowing manufactures : Axles, of all kinds. Boots and Shoes, of leather. Boot and Shocniaking machines. Bufliilo robes, dressed and trimmed. Cotton Grain-bags. Cotton ])eninis. Cotton Jeans, unl)leached. Cotton Drillings, unbleached. Cotton Plaids. Cotton Tickings. Cottonad(!s, unbleached. Cal)inet ware and Furniture, or parts thereof. Carriages, Carts, Waggons, and other w heeled vehicles and Sleighs, or parts thereof. Eire-engines, or parts thereof Eelt covering for P>oilers. (iutta Percha Belting and Tubin-r. Iron— Jiar, Hoop, Pig, Puddled, lUnl, Sliei^t, or Soraj). Iron Nails, Spikes, Bolts, Tacks, Brads, or Sprin-s. Trf>Ti r".,.f ;..,.., ' '"^ Iron Castings. India J Rubber Belt ing and Tubing. Loc(.)motives for Jiailways, or ]>arts tbcreo! Lead — Sheet or Pig. Leather — Solo or Ujiper. Leather— Harness and Saddlery. 46 ^ Mill or Factory or Steamboat fixed Engines anil Machines, or parts tliereoi'. ]Vranuiacturos of Marble, Stone, Slate, or Granite. Manufactnres of Wood solely, or of wood nailed, bound, binned, or locked with metal materials. ]\ran,L,des, Washin_L( Machines, Wringing ]Maehines, and Drying Machines, or parts thereof. Printing paper for newspapers. i'aper-niakin'!:;' Macliines, or jiarts thereof. Printing Ty])e, I'resses, and Fnlders, Paper Cutters, Fading Macliines, Fage-nundiering Machines, and Stereotyping and Klectroty])ing Appanitus, or parts thereof. J Refrigerators, or parts thereof. Railroad Cars, Carriages, and Trucks, or parts thereof. Satinets of wool and cotton. Steam Engines, or ])arts tliereof. Steel, wrought or cast, and Steel Plates and Pails. Tin Tuljcs and Piping. Tweeds, of wool solely. Water-whtnd ^Machines and Apparatus, or parts thereof. ARTICLE Y. It is aL-reed that the Canadian Canals on tlie main route from Lake Erie to Montreal shall be enlar'^ed forthwith, at the expense of the Dominion of Canada, so as to admit the passage of vessels drawing twelve feet of water ; and tlie locks on the said canals shall be made of not less than 270 feet in length, 45 feet width, and not less tlian twelve feet depth on the mitre-sills ; and that the channel of the St. Lawrence Piver shall be deepened in the several reaches be- tween the canals wherever the same may be necessary, so as to allow tlie free passage of vessels drawing tweP/e feet of water. And the work engaged to l;)e done in this Article shall be completed by the first day of January, 1880. APTICLE YL It is agreed that the Government of Canada shall con- struct, on or before the first day of January, 1880, a canal to connect the St. Lawrence River at some convenient point at or near Caughnawaga with Lake Champlain. The dimen- sions of said canal shall be such as to admit the passage of .t. 47 > vesselb drawing twelve feet of water, and the locks shall be of not less dimensions tlian tli<>.>e named in the precedin-j; Ai'ticle And the United State;i engage to urge upon the Govern- ment of the State of Neu York to cause the existing canal from Wliitehall, on Lake Champlain.to All)any to be enlarged, and if necessary, extended, or aiinllu'r canal or canals to be constructed of e(|ual ca[)acity with t!ie jtropo^ed C.iughna- waga Canal as hereinbefore specified, and the navigation of the Hudson Kiver to ])e improved so as to admit of tin; pas- sage from Lake Cliam[»lain to tlie lower waters of th<,' Hudson liiver, of vessels drawing twelve feet of vrater. le lO eet :/ AlITICLE Yir. Citizens of the United States may, during the term of years mentioned in Article XIII of this Treaty, carry in their ves- sels cargo and passengers fnuu oul' Canadian port to anotlier on tlie great lakes or liiver St. Liiv.rence. Reciprocally, in- halntants of Canada, subjects of her lUitannic Majesty, may, during the like period, carry in their vessels c;trgo and ]>as- sengers from one port of the LTnited States on the great lakes or liiver St. Lawrence to another on the said lakes or river. Citizens of tlie United States, in their vessels, and inhabitants of Canada, sidjjects of Her ]>ritannic Majesty, in their vessels, may, during the like term, carry cargo and passengers from any port of the United States, or of Canada, on ue Red River, or the waters connecting therewith, to any other port on the said river or waters connectin*!; therewith. on- to at iU- of ARTICLE YIII. It is agreed that for the term of years mentioned in Article XIII of this Treaty the citizens of the LTnited States shall enjoy the use of the Welland, the St. Lawrence, and other canals in the Dominion of Canada (including the proposed Caughnawaga Canal), on terms of equality with the inhal)i- tants of the Dominion of Canada, and that without interfering with the right of the Government of Canada to impose sucli tolls on the aforesaid Canadian canals respectively as it may 48 think lit. Tlie tolls sliall be levied in relation to the iiunibcr of the locks in each canal withont any tirawback or discrimina- tion, whatever the destination of the vessel, or whether one or more canal or canals, or part of a canal be passed. And it is also ajrreed tliat for the like term of years the i'lhabitants of Canada shall enjoy the use of the St. Clair Flats Canal on terms of equality witi. tlie inhabitants of the United States, and that the navigation ol' Lake Champlain and of Lake Michitran shall be free and open for the purposes of commerce to the inluibitants of Canada., su])ject to any laws and rei^ula- tions of the United States, or of the States bordering thereon, respectively, nut inconsistent with such privileges of free nav- igation. And tlie United States further engage to urge upon the (governments of the States of New York and of Michigan, to secure to tlie inhabitants of ('anada tlie use of the Erie, the Whitehall, the Sault St. Marie canals, and of any enlarged, or extended, or new canal, or other im])rovement, connecting Lake Champlain with the lower waters of the Hudson Eiver, which may l5e made as contem])lated in Article Vj, on terms of eqia'ity with the inhabitants of the United States. And it is mutually agreed that full power shall be given and allowed to tranship cargo from vessels into canal boats, and from canal boiit«i into vessel:;, at either terminus of every canal. And furthiT, that if the use of the Erie, Whitehall, or other canal connecting Lake Champlain with the lower waters of the Hudson liiver, and of the Sault St. Marie Canal, be not granted to the inhabitants of Canada on terms of ecpiality M'ith the citizens of the United States, as contemplated in this Article, then the use of the proposed Caughnawaga Canal by citizens of the United States, as above contemplated, shall be suspended and cease until the use of the said canals in the United States shall be secured to the inhabitants of Canada as above contemplated. ARTICLE IX. For the term of years mentioned in Article XIII of this Treaty, vessels of all kind.s built in the United States may 49 1^^^ jHirdiased by inhahitm.ts of Canada, subjects of Great rJritaiii. lui.l renistorcl in Ciu.a.l;. a> Cai.a.lian vessels • and rvr-,i.ro,-ally, v,.ss.ds of all ki,„ls built in Canada n av bj pur- cbased by eih.ens of tli. Cnited States, and re^isteri^d in the united States as [^nit(>(I States vessels. > a AKTICLK X. A Joint Commission shall be established and maintained at joint expense diirin-- the operation of tliis Treaty, for ad- visino- the erection and j.ruprr n-ulation ..f all LiuhthoJses on the great lakes common to l)oth countries, necessary to the security of the shippino' thereon. ARTICLE XI. A Joint Commission shall also be established at joint ex- pense, and maintained during the continuance of the Treaty, to promote the proi)agation of lish in the inland waters com- mon to both c.untries, an.l to enforce the laws enacted for tlie protection of the tish and fishing grounds. AIITICLE XII. rt is further agreed, that the provisions and stipulati.ni,^, of this Treaty shall (>xt