^^W^^Tj- IMAGE EVALUATION TEST TARGET (MT-3) // ^ >\ .^I-^^ 1.0 I.I tliKl 12.5 150 ^^~ H^H ^ US 12.0 III '•2^ II '-^ l'-6 Jill— c i|s= ^ 6" ► % '/a ^> Hiotographic Sciences Corporation 73 V/EST MAIN STREET WEBSTEii.N.Y. 14580 (716)873-4503 I/.. <^ :/. CIHM/ICMH Microfiche Series. CIHIVI/ICIVIH Collection de microfiches. Canadian Institute for Historical Microreproductions / Institut Canadian de microreproductions historiques Tachnicai and Bibliographic Notaa/Notaa tachniquas at bibliographiquaa Tha Inatituta haa attamptad to obtain tha baat original copy availabia for filming. Faaturaa of thi« copy which may ba bibliographically uniqua. which may altar any of tha imagaa in tha raproduction, or which may significantly changa tha uaual mathod of filming, ara chackad balow. D D D D n a n n Colourad covars/ Couvartura da coulaur Covara damagad/ Couvartura andommagAa Covara raatorad and/or laminatad/ Couvartura raataurto at/ou pallicul^ Covar titia miasing/ La titra da couvartura manqua Colourad mapa/ Cartaa giographiquaa an coulaur Colourad ink (i.a. othar than blua or black)/ Encra da coulaur (i.a. autra qua blaua ou noira) Colourad plataa and/or illuatrationa/ Pfanchaa at/ou illuatrationa tt coulaur Bound with othar matariai/ Rail* avac d'autraa documanta Tight binding may cauaa shadowa or diatortion along intarior margin/ La re liura sarrie paut eauaar da I'ombra ou da la diatoralon l« long da la marga intiriaura Blank laavaa addad during raatoration may appaar within tha taxt. Whanavar poaaibla. thaaa hava baan omittad from filming/ II aa paut qua cartainaa pagaa blanchaa ajoutias lors d'una raatauration apparaiaaam dana la taxta. maia. lorsqua cala itait poaaibla. caa pagaa n'ont paa Ati film^aa. L'Inatitut a microfilm* la maiilaur axampiaira qu'il lui a AtA poaaibla da sa procurar. Las dAtaila da cat axampiaira qui sont paut-Atra uniquaa du point da vua t ibiiographiqua. qui pauvant modifier una imaga raproduita. ou qui pauvant exiger une modification dans \> mAthoda normala de filmaga sont indiquAa d-dassous. nn Colourad pagaa/ n n n D D n Pagaa da coulaur Pagaa damaged/ Pagaa andommagAaa Pagaa raatorad and/or laminated/ Pagaa raataurAaa at/ou pelliculAes Pagaa diacoloured, stained or foxed/ Pages dAcolories, tachetAes ou piquAes Pagaa datachad/ Pagaa ditachias Showthrough/ Transparanca / Quality of print variea/ Qualit* in^gala de I'impression Includes aupplamentary material/ Comprand du material supplAmantaira Only edition available/ Saula Mition disponibie Pagaa wholly or partially obscured by errata slips, tissuas, etc.. have been refilmed to ensure the best possible image/ Lea pagaa totaiament ou partiellement obscurciaa par un feuillet d'srrata. une pelure, etc.. ont M film^s A nouveau da faqon A obtenir la meilleure image possibla. D Additional commanta:/ Commentairea supplAmantairas: Docket title page is bound in as last page in boolc but filmed as first page on f Iche. This itam is filmed at tha reduction ratio checked below/ Ca document est film* au taux de rMuction indiqu* ci-deaaoua. 10X 14X 18X 22X 26X 30X y 12X 16X 20X 24X 28X 32X Th« copy filmad h«r« has b—n reproductd thanks to tha ganarosity of: New Bruniwick Museum Seint John L'axamplaira filmA fut raproduit grica A la gAnAroaitA da: New Brunswick Museum Seint John Tha imagas appaaring hara ara tha baat quality posaibia conaidaring tha condition and lagibiiity of tha original copy and in kaaping with tha filming contract spaeificationa. Original copiaa in printad papar covara ara fllmad baginning with tha front covar and anding on tha iaat paga with a printad or illuatratad impraa- sion, or tha back covar whan appropriata. Ail othar original copiaa ara filmad baginning on tha first paga with a printad or illuatratad impraa- sion, and anding on tha Iaat paga with a printad or illuatratad impraaaion. Tha Iaat racordad frama on aach microfieha shall contain tha symbol —n^ (moaning "COIM- TINUED"). or tha symbol y (moaning "END"), whichavar appiiaa. Laa imagaa suivantas ont AtA reproduitas avac la plua grand soin. compta tanu da la condition at da la nattat* da I'axampiaira film*, at en conformity avac laa conditions du contrat da filmaga. Laa axamplairaa originaux dont la couvartura an papiar ast imprimte sont filmte 9n commandant par la pramiar plat at ^n tarminant soit par la darniira paga qui comporta una amprainta d'imprassion ou d'illustration, soit par la sacond plat, salon la caa. Tous las autras axamplairaa originaux aont fiimia an commandant par la pramlAra paga qui comporta una amprainta d'impraaaion ou d'illuatration at 9n tarminant par la darniAra paga qui comporta una taila amprainta. Un daa symboiaa suivants apparaitra sur la darniira imaga da chaqua microfieha. salon la caa: la symbols -^ signifia "A SUIVRE". la symbols ▼ signifia "FIN". Mapa, piataa, charta, ate may ba filmad at diffarant raduction ratioa. Thoaa too larga to ba antiraly includad in ona axpoaura ara filmad baginning in tha uppar laft hand cornar. laft to right and top to bottom, aa many framaa aa raquirad. Tha following diagrama illuatrata tha mathod: Laa cartaa. pianchaa. tablaaux. ate pauvant Atra filmAa A de9 taux da rMuction diff Grants. Loraqua la documant aat trop grand pour Atra raproduit mn un saul clichA, il ast filmA A partir da I'angla aupAriaur gaucha. da gaucha A droita. at da haut an baa. w} pranant la nombra d'imagaa nAcaaaaira. Laa diagrammas suivants illustrant la mAthoda. 32X 1 2 3 1 2 3 4 5 6 U'».*< 'mifmumii>'"m*' ^—^^ -■.■,«-■: ■-iiiiii MiJWWirmWMjt-i' TT 2 W o > o "^ S. a o 2 fe) £• w o o a o o C IK ^K i s « n « ,. It ix: ^ ^ ? S (§ 4>>. Cb O » S. s K-i » s- 00 " s -^1 (^ g n». il II 3 3^7 \Cru i mmm^mmii»''m''mi 337,'? it >rc^otgi NORTH AMERICA. No. 4 (1874). COEEESPONDENCE KELATIKQ TO THE NEGOTIATIONS FOR A RECIPEOCITY TREATY BETWEEN CANADA AND THE UNITED STATES. Presented to both Ilounes of Parliainent by Command of Her Majesty. 1874. [C._10aO.] Privc'iy. LONDON : I'KINTEU UY HARRISON AND SON£ ro^a. Cor LIST OF PAPERS. '/r No. 1. The Eirl of Dufferin to the Earl of Girnaryon One IneloKure. 2. The Earl of Carnarvon to the Earl of Dufferin 3. The Earl of Dufferin to the Earl of Carnarvon 4. The Earl of Derby to Sir E. Thornton . . 5. The Earl of Derby to Sir E. Thornton . . 6. The Earl of Derby to the Hon. G. Brown 7. The Earl of Dufferin to the Earl of Carnarvon One Inclosure. 8. Sir E, Thornton ■ i. ? 7,arl of Derby . . One Incloi.^i '. 9. The Earl of Derb^i lo Sir E. Thornton . . 10. Sir E. Thornton to the Earl of Derby . . One Incloiure. 11. The Earl of Derby to Sir E. Thornton . . 19. The Earl of Derby to Mr. Thornton 13. Sir E. Thornton to the Earl of Derby . . Page February 24, 1874 1 1 March 17, 2 February 27, 3 March 14, 3 March 21, 3 March 27, 4 April 28, <..w, n May 22, 19 June 17, 19 July 3, — 24 July 3, — . 24 June 20, 24 (Extr Coun slighl .scemi and t genet apprc Repo 23rd| pres{ betnl as rq ofU be rJ that! Myl CoJ /•f"-^'^^' (••■^-n-:??-,,,. \ "< ^'^ <;:... v^ ma ■' /f 0' a— n(« * a f~^ J V/ Correspondence relating to the Negotiatioiis for a Keciprocity Treaty between Canada and tlie United States. P«ge 74 1 1 2 3 3 3 4 - 19 — 19 — a4 — 24 — 24 '.;N No. 1. The Earl of Dufferin to the Earl of Carnarvon. (Extract.) Canada, February 24, 1874. I HAVE the lionour of sending herewith a full copy of the approved Order in Council of the 23rd of February, of which I liave alrendy coninuinicnted by telegram a slightly abbreviated transcript. My present advisers are very anxious to take adviintairc of the opportunity which seems about to present itself of re-establishing: a Recipiocity Treaty between Canada and the United States of America. 1 imagine that the course they contemplate will be generally approved throughout the country, and they assure me that it will meet with the approbation of Parliament. Inclosurein No. 1. Report of a Committee of the Honourable the Privy Council, approved by his Excellency the Govemor-Oeneral in Council, on the 23rd February, 1874. THE Committee of Council have had under consideration a Memorandum, dated 23rd February, 1H74. from the Honourable Mr. Mackciizii, rejioifing that he considers the present a most favourable opportunity for a renewal of lu'nntiiitionsfor a Reciprocity Treaty between Canada and the United States of America, by whi(;h the claim for compensation, as regards the fisheries, might be settled witiiout the reference provided for by Article XXII of the Treaty of Washington, and therefore recommendinic that the Imperial Government be requested to authorize the British Minister at Washington to enter into negotiations on that subject with the Government of the United States. The Committee concur in the opinion above expressed, and advise th»it a copy of this Minute be communicated by your Excellency to the Kight Honourable 'he Secretary of State for the Colonies, for the consideration of Her Majesty's (iovernmeni. Certified, (Signed) W. A. H IMS WORTH. No. 2. The Earl of Carnarvon to the Earl of Dufferin. My Lord, Downiny Street, March 5, 1874. WITH reference to your telegram of tie 24th February forwarding an Order in Council of the 23rd of that month, from which it appears that your Ministers are of opinion that the present is a most favourable occasion for a renewal of negotiations for a ReciprocltytTreaty, and in which they make a formal request that an attempt may be made to settle in this manner, and w'thout reference to a Commission, the claim for [492] B 2 compensation in regard to the fislicries, I luivc now flto honour to transmit to you a copy of a despatcii addressed by the Earl of DltIjv to Her iMnji-stys ^^iIlistc^ al \Vasliinf,'t<)n,* iriHtructing him to take iinnu'diatc steps for enterint;- into nct^oliatioim with tiie United States' Government, witli a view to the renewal of tlic lUviprotity 'i'aaly. 2. Upon learning tlic stroiijj dosire of your Ministds tliat a icncwiil of tiic Recipro- city Treaty sliould l)c sougiit for, Her Majesty's (loveiiunenl, tlu)ii:;ii tliey had hi.L'ii fully prepared to abide by, and were in no way appreiicnsivi' of tlie results of, the relerence contemplated by the provisions of that Treaty, did not hesitate to iieeedc to tiiat desire; and it will be seen, from the tenor of the instruetions addressed to Sii 1!. Thoiiiton, that full effect was at once given to what were understood to l)e tiie wishes of your Government. 3. As a simple and obvious course of procedure the llird Article of tlur lleeiprociiy Treaty was suggested as the basis of the negotiation, it being, of cour/se, open alike to Her Majesty's Uovernmcnt, on behalf of (.'anada, as to tiie (jovernnicnt of the United States, to propose any modifications of, or additions to, that Article, or to widen the licld of discussion by introducing (luestions, which were not disposed of by tlie Treaty of IH^)A. 4. Your Ministers may rest assured that Ilcr Majesty's Government arj desirous to meet, as far as it may be practicable to do so, their reasonable wishes upon this sul)jeet, and that they will be prepared to give careful consideration to any furtlur proposals which may be made by your Ministers during the course of tin; negotiations. 5. I may add that, with a view to save delay, you are at liberty to eonnnunicate unreservedly, though, of course, confidentially, with Sir H. Thornton as to the views of your Government, taking care, however, to transmit to me, at the earliest opportunity, copies of such correspondence. I have, &c. (Signed) CARNARVON. No. 3. The Earl of Duferln to I'lr EnrI of C'lininrvon. My Lord, Govi'rnmeul House, Ottaini. March 17, 1874. i HAVE the lionour to acknowledge the receipt of a telegram dated 14tli March from your Lordship, in v-fhich you have been ])!eased to signify your assent to the request of my Government thr.t a Canadian gentleman sliouid be associated with Sir lldward Thornton in the event of Her Majesty's Government authorizing the British Minister at Washington to enter upon a negotiation with tlie United States for the whole or f)artial renewal of the Reciprocity Treaty. 1 have been requested by Mr. Mackenzie and his colleagues in the Administration to convey to your Lordship their sense of the considciation which has been shown to their representations by Her Majesty's Government in this matter. I have further to inform your Lordship that it is perfectly understood by the Dominion Government that Her Majesty's Government, in consenting to authorize the substitution of a Reciprocity Treaty in lieu of the money payment secured to Canada in respect of her fishery claims under the Article of the Treaty of Washington, have done so at the express instance and solicitation of the Canadian Government. It is also understood that the Canadian Commissioner will act under Imperial instruc- tions, and that all propositions to be made to the United States' Government will be previously submitted to the Secretary of State. I have communicated a copy of this despatch to the Privy Courcil. I have, &c. (Signed) DUKI'ERIN. Sec No. 4, papre ■'). .,.,a.ai^ «&«._ 8 )|)y n,* ted li II)- lly ICl! ic; that our icitv to itcd iclil <\. Id irt, licli No. 4. Tfip End of Derby to 8\, E. Thornton. Sir, Foreiijn Ojfire, Fehrunrii'll, 1874. I TRANSMIT (o you licrinvitli a copy of a telegraphic despatch, received hy Her Majesty's Sccntary of State for the Colonial Depurtinciit from the (lovernor-Genend of ("anadii,* Iroin wiiidi it appears tliui tiie Council of tlie Dominion are of opinion that the present is a nidst favourahli' opportunity for a renewal of negotiations lor Reciprocity Treaty hetweeii (Ircat Uritain and the United States, hy which the eluim of Canada for componsalion on account of the admission of American fishermen to the Canadian fisiierii's mi^dit l)e settled without the reference to a Commission provided by the Treaty of Washiii;;ton ; and the Council accordingly recommend that Her Majesty's Government may he re(|uest((i to authorize you to enter into neiiotiations on the subject with the United States. Tlie (Jovcrnor-Uencral adds that he has no doubt that the Parliament of the Dominion will approve this policy. Her Majesty's (iovernment are ready to make, on behalf of Canada, the proposal which the Council desire, and they now authorize you to propose to the United States' (Jovernment to enter into a Treaty to renew the HIrd Article of the Reciprocity Treaty of I8,')4, with a provision for jjrcserving in force Articles XX H to XXV of the Treaty of Wushin^'ton, in ease the avranuenient now pro|)osed should fail to be carried out withm a limited tiis.o to he li.veil lor that purpose. It will, of course, he understood that, if the United States' Government suggest any modifications in the Article of the Reciprocity Treaty which you arc now to propose to renew, it will he equally o[)en to Her Majesty's Government to suggest on behalf of Canada any modifications or additions which, after communication with the Government of the Dominion, may appear expedient. I am, &c. (Signed; DERBY. No. 5. The Earl of Derby to Hir E, Thornton. Sir, Foreign Office, March 14, 1874. I HAVE to ae(iuaint you that the Canadian Government have recommended Senator Georije llrown lor the appointment of Conunissioner to be associated with you in negotiatiiii; the proposed Reciprocity Treaty, and that Her Majesty's Government have concurred in this recommendation. Mr. Brown's formal appointment will be sent out as soon as possible, and meanwhile you will inlorm the United States' Government that he has been selected for the office. I am, &c. (Signed) DERBY. No. f). The Earl of Derby to the Hon. G. Brown. Sir, Foreign Office, March 21, 1874. HER Majesty having been graciously pleased to appoint you to be joint Plenipoten- tiary with Her Majesty's Minister at Washington, for the purpose of negotiating and concluding a Treaty with the United State." relating to Fisheries, Commerce, and Navi- gation, I liavc to acquaint you that Her Majesty has granted to you and Sir E. Thornton, under the Great Seal, a full power for that purpose. I am, &c. (Signed) DERBY. • No. 1. No. 7. The Eiiii oj JDvfttrin to the Earl of Carnarvon. My Lord, Ottuwu, March 27, 1874. I HAVE tlie honour of tbrwnrdhiK u copy of an approved Hcport of n Committeo of tlic Privy C'omifil on tlie Hubjcct of establishing reciorocal trade nUations l)ctw<'oii the Uiiiti'd States and Canada. I have, &c. (Signed) OUFKERIN. [•iciosuro in No, 7. Report of a Commiltei' nf the Uonnuriihli' thr Privij Council, approved hy his E.rcellency the Gorernor-diiiiTiil In Council an the '26ent to VVashinj^ton, and this mission havin-j; been accepted by the Honourable George Brown, that gentleman procecdi'd to W'ashinsrtoii early in Feliruaiy, and speedily succeeded in asccrtainiiijj that a general wiUinauess existed on the part of leadiiu; Statesmeti of the United States to enter into a new Coiniuercial 1'rcaty embracing the settlement of the claims of Canada for such compensation. Upon receiving Mr. Brown's Report, aiiplication was made to the Imperial Govern- ment to authorize the British .Minister at Wa^^liington to open negotiations with the United .'states' Government for more e.vtendi'd trade relations between the two countries, and at the same time rciiuestiiig that a Canadian he appointed Commissioner to act with Sir Edwufd Thornton in such negotiations. These requests were ac(|uicsced in, and the Honourable George Brown was empowered to act as Impcri'd Commissioner on behalf of the Canadian (Jovernment. In carrying on the negotiations the Canadian Commissioner will keep clearly in view the eircuuKtaiices that the Government yf Canada is desirous, on general principles, to afford every facility for tiie encouragement of international trade as mutually beneficial to both countries, conl'eniii^ not alone pecuniary advantages, hut tending to foster and strengthen a feelin'j; of national fVicmlship so desiralile in the interest of peace and good neighbomliood to two countries occupying the geographical position towards each other of the United States and Canada, and that any measure which will tend to promote and maintain frieiidly intercourse and harmony between our neighbours and ourselves through the free intereiiange ol eommodities, so that it be not seriously prejudicial to our industrial interests, will receive the support of the Dominion (lovernment. Mr. Brown will communicate this view to Sir Ethvard Thornton, accompanied with the representation that the (jovernment of Canada do not propose any modification in matters of trade and commerce which would in any way injuriously affect Imperial interests. The Committee further advise that a copy of this Minute be sent to Mr. Brown, and that the Hoiioui'able .\. .J. Smith, Minister of Marino and Eisheries, be requested to pro- ceed to Wasliit)i;ton at an early day to confer with Mr. Brown more fully, and render such assistance as may be necessary to a perfect understanding of the whole question. * ' No. 8. Sir !<:. Thnrnfnii to thi- Earl of Ihrhij. — (Recrivcd Marj 11.) (Extrnct.) Washington, April 28, 1874. I II W'!'. tiie honour to inclose copy of a jiajjcr which Mr. lirown and I yesterday submitted to ,\ir. Eisli. m I he The ((reiUt'r part of thJH document ifi occupied with the hmlory of Iho lust rilty years of the triulc relHtions between Caiinda and the United Siiiten, iind shows the itdvantage which tho United States, oh well an Canada, w<»ulresent, of (he Hrltish North Ameriran Provinces with the Unifel().'j:)i,il7 [ii fort'i)!U priHiiirtfi. of .. ,. ., .. .. .. 'lll.'I.UO'.i Total United IStntos exports And that the ontire imp(iit< nf tfio United iStotca in the -aiiic iniiod fioiii the Province* wi'ir t)iit .. .. .. .. .. 7, US I. ;Jl,10t,ai>(l IiCHvin); ii Imlunee of trade in tiivmir of the t'liited StiiU'« of m than . •-';?," I(i,7il7 In the thirteen years following the above period {\s:\.\ to 1H]5), the same state of things is found, with a steady increase on the a^gregali- of traffic. The exports of the Republic to the British North American Provinces were Ol donii'Ntie pro5 n bulmico In favour of the United Slater of . . Dobi. ■>^^„-, ;7 l,ti-10,:t;i.' .58.7-J'J.H(;.) ■j.i,;!oii.j7"> ;i3,;t(Ui,.'.i)i Transportntioii in Bond. In 1P46 wc entered upon a period wiieii tiu' United Slates' (Jovernmeiit, alter vcrv many years of earnest cfibrt, succeeded in ol)taining from Great Britain a relaxation of the old restrictive navigation laws with regard to tlie Britisii Colonies. 'With ir eaiiio the international drawback system for tho encounigement. of overland Iranspoi'tatioii to and from the Atlantic Ocean without payment of duties. Althougii this ineasme only extended to the transport of merchandize, it is instructive to observe the inuncdiatc and remarkable 6 effect it had on the direct transactions between the Republic and tlio Coloniesi. The aggregate imports and exports between the countries immediately rose from 8,074,291 dollars, in the year lN4r), to the following figures: — 1846 1847 1848 184'),072,26() 22,()20,2.').l 77,()!l2,.il4 ;!6,7.'>;i,.i'.»2 10,.'i;i8,8'J2 But, in addition to this direct interchange of merchandize, with its great preponder- ance in favour of the Republic, 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 railwa^, s of the U. -ited States to Atlantic or inland ports, and thence dispatched to their idtimate destinations in American ships and steamers, vastly to the gain of the Republic, and without any corresponding advantage to the Provinces. The Reciprocitij Treaty, The great success thut thus attended this first partial experiment of reciprocal libeiality in commercial iniorcourse between the two countries, led directly and casilv to nro.josals for the much more decided measure of an interchange of the natural jjroducts of ihe two countries free of Customs-duty. For a nuud)er of years the subject was keenly debated in all its bearngs; and it is instructive to look back on the record of those di-^- ( Lissic'.f:, and observe the bng list of distinguished American statesmen who were warm a ivoc. les of trie jucasurc. The Reciprocity Treaty of 18.')4 was signed on the ')t!i .lime of that yenr, by h '. . i-^rcy, on behalf of the United Slati-s, and by the late Lord HIgin, as representative ■ "■ Great Britain. Its happy efi'ects were felt instantaneously ; and it is oi ly iiecessarv to iv'er to the speeches and papers of the able men of all parties in hoth countries who promoted the measure, and to analyze the official returns of its o|)eratioii while in force, to arrive irresistibly at the conclusion that its results greatly surpassed the most sangiiine anticipations of its originators and advocates. The Treaty may be said to have been thirteen years in opei'ation ; for though nominally it began In 1S54 and ended early in 18(50, the traffic was pnslied with such energy during the months of its operation in those two years, as to place them .m an cquility with the other years. To obtain a just appreciation of the value (jf the traffic bet. ""ii tlie llc])ubli(: and the J^rovir.res during the thirteen years' operation of the Treaty, it is necessary to keep in mind tliat the Civil War in the States in the last four years of the Treaty's existence enhanced the value of coiiiinoditics, and so deranged the industrial interests oi the Reimblic as to Rive the Provinces .■! temporary atlviinftigc in t'- traffic, Ibrbidding aiiv fair deduction ■m I The from it as to the ordinary course of trade in times of peace. In ont; year (1865-66) at the end of the war the exports of British North America to the United States rose, according to tiie United States' official records, to 't1,71 L.'l'^'J dollars. However profitahle this casual advantage may have been to llie jirovinces, it can hardly be regarded as ,in objection to the Treaty that in time of wnr, when the American husbandman was dc barred from tilling his fields, tiie necessities of life were largely sup- j>Iied under it without t!ic addition tA' onerous Customs duties and Custom-house restrictions. Assuredly, liad the Treaty not then been in existence, every ton of these- supplies, under tlie pressing urgency of the case, wouUl have found its way across the lines, probably with little reduction of profit to the producer, hut ir .\t increase of co.it to the consumer. The grand fiict remains that, under the operation of the Reciprocity Treaty of 1K54, the aggregate interchange of commodities between tiu; Republic an '. the Provinces, to pro- mote which the Treaty was concluded, rose from an annuid avei'ac.' of 1 ■l,'230,76.'i dollars in the previous eiglit years to .'53,l!)l'l,7;")4 dollars gold cmrency, in the first year of its existence; to 42.942,754 dollars, gold ciirreney. in the second year of its existence; to ;)O,3.39,770 doilai's, gold, in its third year ; and to no less a sum than S4.(»70,'J5r) dollars at war prices, in its tiiirteenth year. And notwitlistandin;,' >he anomalous character of the circumstances arising from the existence of civil war during so considerable a portion of the Treaty's exi.steiice, b, which the imports from the Provinces were greatly increased in V(;limie and value, and the exports to the Provinces as naturally reduced in c|nantity, the biiiiu.ce of trade, durmg the existence of the Treaty, was largely in favour of the United States. In the thirteen years of its operation, the Provinces purchnsed from the R('|)ui)lie coiiinuKiJties, according to the United States' returns; to (he value ol ."MOjlSO.^tJl dollars, and llic ixepuhlie purchiised from the Provinces .■'.■_*.'),720,o20 dollars, leaving a gross cash buhuiee in favour of the United States of 20,4.'i4,'_'4f) dollars. But the balance was, in fact, niucli larger tiian this. During the first ten years of tiie Treaty, the transnctinns between the eoininies showed a clear balance in favour of the United States of f)2,fM."),.";4"> dollars. That balance appears, from the United States' returns, to have been reduced, by the operations of the following three years, to the amount of 20,4.54, 24() dollars ; but this arose, no doubt, from the inflated values at which the importations into the United States t'lom tiie Provinces were made under the Treaty during the war, their being no Customs duty to ileccs^iratc accuracy and every temptation to over valuation on the part of the importer. According to the official returns of the several British Provinces, which arc accurately kept, the Provinces purchased troin the Uepublic, duriuL' the thirteen years in (juestion, coiiiniodities to the aggregate value of 8;'>9,()(i7,2')7 dollars gold valnariou, and tiie Ucpul)lic purchased from the Provinces I97,05(>,"J.5T liollars, in same valiiatioii. leaving, iss ilie sum total of the results of the Treaty of ]S;j4, an aggregate intei'nutional ti'atlic of (j'_'3,43T,.'J2.'') dollars, and a gold balance in favour oi the Reimblic of •)o,7!H),9S9 dollars. Traffic v'itli VniuuUi in Conipariynu ii-itk other Stale.-. The importance of the Canadian tratlic under tlii' I'cciproeity Trci'ly can be most clearly seen, perhaps, by a con.'parison of it with tlie traiisactiiuis wliieh tiie Kcpubiic had with other foreign countries duiiiig the sruii' year>. 'I'lie total cNjinrts of the Inilcd States from 1854 to I'sfjd, both yeais inelusive, amounted to 4,UU(),,100.M)(-) d>)ilars. Ul' this vast export traffic — Kndlaiui nml licr iiDssc'sidii.- Iiv.k .. ., .. .. 'J.T'i'.i.'.'VL.'i^lS Fnin'c iiiicl lur piis'cssioiis locil; .. .. .. ,. |V'.'i',i;;,;)V!> Spiiiii 1111(1 111 r j'(i-si's»i()iis ludk . . .. .. .. .. 'Ji.'i..s',i,!.'J21 (ii'inmny tui'k ,. ., .. .. .. .. Co;.:;0S.(J17 .. :i.H'.)7.170.-l(iJ And all the rest of the world tonlv the htilance. Of the above experts, Caiiatla's share, as wc have ahcady seen, was .'MG,1>^' ,■2(14 dollars, an aniouiil etpial to the a':gregate exports taken from tlie I'liiicd States lu the same vears by China, Brazil, ltal\, llayti. Pussia. and her possessions, N'enczuela, .Austria, the Argentine llepul)lie. UenniaiK and her possessions. Tui key. Portugal and !ier posses- sions, the Sandwich Islands, the Central Aiiui!. f'tates and .Japan, all put together. In marked contrast to this, however, the I'nited States imported from the>e countries, in the same vea-s, to the amount ot' ;"».")><, 52.'?.."iS:(i dollais, leaving a cash Imlance to be |Mid to '['1921 C ^■: them by the Ropublic of 192tlO!),filO dollars, while Canada paid over to the States a eaSh balance of 957i)6,989 dollan in gold. Character of Traffic under the Treaty. The character of the commodities purchased from tho Republic by the I'rovincfes during the cxistenec of the Reciprocity Treaty is also worthy of special note. In the thirteen years of its operation, the total purchases by the Provinces of United States home productions, and of foreign articles imported by the United States' mercliants, were as follows : — Dols. Animals and tlicir product'* .. .. .. ,. .. ;i.j.iyu,'2l;i Divadsluffs .. .. .. .. .. .. .. ll'J.()68,473 Otlicr farm iivoduct- . . . . . . . . . . . . 3,242.",)82 Timber .. .. .. .. .. .. .. «,511.t88 Manufactures . . . . . . . . . . . . . . 88,04!).H55 Miscellaneous . . . . . . . . . . . . '.'4,()44,()77 Total home product iouh.. .. .. .. .. 271,940,988 Forcij?n eommoditics bought hum the merchants of tiio United St^ilcs and impoi ted into Canada .. .. .. .. ' .. 1)2,370.718 Total purchase- . . . . . . . . . . .•i.'J4,;i20,706 From this it will be seen that not less than 151,029, .')73 dollars of manufactured goods were purchased from the United States by the Provinces under tlie operation of the Reciprocity Treaty. Transportat^ion Traffic under the Treiitii. Did nothing more, therefore, than the vohnnc of traffic between the countries and the comparative contributions of each country to it, enter into the question of relative advan- tages derived from the Treaty by eaeli, no doubt could exist as to the United States having reaped much greater, profit from the Treaty of 1834 than the Provinces. But there is another very important branch of the account. The transportation traffic sent to and brought from foreign countries by the Provinces, in bond, over the railways and canals, and in the ocean ships and steamers trading from United States ports, rose under the operation of the Treaty to an importance secondary oidy to the traffic in domestic productions. Previous to tiie 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 eoti'crs ot the Uopublic, and indirect advantages tjuite as valuable as the direct ones. .No otlicial retmns of the gotids thus (i.issed over by the United States seems to liave l)een pieserveii until the hscul year l^^G'-liB; but from the retiirnn since published, we can form some icUti of the great profit that must have accrued to the Uepul)lic 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 : — ' T(.tnl Uiiitcil Slates Transit Traffic. 1868 18B0 is 70 1S71 1872 187.". Dols. ■JI..)l.'),ii()4 2I.(H)5,!I81 ■-':■.. l!i I. S(iO ■J.j,.;7o,(i37 .•U.;!S.-,.320 40,1)'' 'isr) Total 111'.', OOJ,'.!'.!!! Of tliis vast traffic, 1115,241,704 dollars consisted of merchandize imported by the Provinces i'rom ollur countries and carried over United States' railways and canals into Canada ; and 4'^,.'j."i().;").')7 dollars ot it (loiisisted of prodiici; e\|K)rted abroad from the Provinces liii the United States. Tiie fact tiiat these two amounts appear to make unitedly more than the whole aggregate of the United States' tiiuisit trade, arises from shipments made from one pait of Canada to aiiollu ', and coiiseciuently appearim;- in the list of !i;(>o(!s going into tlie I'nited Stali'-^, as well as in lliat ol goods (^enl out troin the United S.ales. Neaiiy the uiiole oi liic tialiie i)i transitu of the Repul)lie i.i iiiese six years, was eiliicr sent lioin or sent to tne Ihitish Provinces. And from its volume in latcs a caih le I'rovincfes fc. Ill the ptates hom6 ks, were as 173 182 |88 35 anufactured ition of the rie8 and the itive ad vali- dates having But there is sent to and I canals, and le operation productions, dimensions, large gains IS tlie (lirect cfs seems to .' i)ul)li8hed, iil)lic while 'Nl'orts that ted by the canals into (Vom fhe to niuke iiises Irom rinu' in the t lioni the 1 iliese six volume in I 9 these recent yonrt;, we may form some idea of its great extent under the operation of the Treaty, when Colonial facilities for transportation were so diflerent from what they now are, Tiic value of so vast a carrying' tnule is not easy to arrive at. ])r. Young, the able chief of the United States' Bureau of Statistics, recently stated that inward ocean freijjiits on goods " vary Irom 11)0 per cent, on |tiic value of] salt and some other bulky aiticles, to '2 or i) per cent, on dress <,^oo(ls,", aiul lliat tlie "average on merchahdi/e alone is not much less than 8 |)er ct-nt.'" Now, if the ocean freight on ordinai'y merchandize is fS per cent., how greatly more must be the por-ccntajie of overland freights ; and how infinitely greater nuisf be the per-centage on the value of farm produce than on ordinary merchandize? If it is further considered thai on the transit traffic to and from Canada, inland and ocean carriage have both to he paid for. and that a large jjropoi tion of the commodities are heavy and bulky, it will at once be seen what a fertilizing stream is poured by the merchants of the Doniinion over the railways, canals, steam-ships, com- inission agents, and j)ort cities of the Republic, even from the limittid share of their trathe Oow sent via the United States, under » policy of severe restriction. Special Privilegen under the Treaty. Nor was it merely from the vast interchange of conmiodities and the great carrying trade in bond that the United States reaped their golden annual harvest from the Treaty of 1854. It must not be forgotten that, by virtue of that Treaty, the Canadian canals and the navigation of the St. Lawrence were thrown open to the ships and commerce of the United States, on precisely the same fooling as to those of the Canadian peo])le, who had spent vast sums in their construction. How largely the Republic jirotited by this con- cession, the enormous amount of American merchandize passed throuirh the Canadian canals in American bottoms, at tolls so lov,- as to do little more than defray the cost of attendance and maintenance, the j)ublic records of both countries amply establish. The sole return made to the Provinces for this concession was the j)e.-mission to navigate Lake Michigan, and the promise of the United States' Covernment to urge upon the State Authorities of the Republic to extend to the Provinces the s;nne free use of the American canals as they had extended to the Republic. This promise never bore any friut. T/ie Si. Lawrence Coant Fisheries Free under the Treatij. But the crowning eonces.sion enjoyed by the United States, under the conditions of the Reciprocity Treaty of 1854, was the free use of the priceless coast fisheries of British North America. For this concession the able statesmen who represented the thirteen States in the peace settlement at the close of the revolutionary war, struggled long and earnestly. To secure this much valued possessioii, all the skill of American diplomatists, persistently cmjiloyed for three-quarters of a century, was exerted in vain. Undar the Treaty of 181 s', th.e right to the .sea-tisheries of the (iulf of St. Lawrence was resigned to the United States; but not untd 1S.>4, and then oidy as part of the Reciprocity Treaty, and terminable with it, did they nbtain access to the most valuable portion of the fisheries, namely, those within three miles from the coast, bays, and creeks of the Provinces. What the value was to the Unitid Slates of tiiis concession it would not become us to discuss while an arbitration to detriinine tlie eoiii|)ensalion to be paid (-'anada tor twelve years' further enjoyment of it is pending, under liie juovisions of the Treaty of Washington. But, as illustrative of the enormous prepunderance of advantages reaped by the United States under the Treaty uf l6.')4, we may, perhaps, be pernnlted to (juote one or two extracts from the Reports ol two Cominissioners, specially appointed by the United States' Goverrnnent to imiuire and report on tlie subject of Reciprocity, as to the value of this one item in the balance of the international account : — " Without participation in the sea fisheiies near the shores of the Colonies, our deep sea fisheries in that region will become valueless." — .7. i). Aiidmi-s' Report, piuje ."$.'>. " iingiand possesses no nursery for '•eamen at all equal to her North American Colonial trade." — Ihiil. " The average nundier of Prench seamen engaged in the cod ti-ln'iy |of the (julf of St. Lawrence] from IH41 to IHoO was 11, ')()(), and the average bounty paid amuuill-, was 3,y00,001) francs, i.780,(Jl)() dollars), ei|uivalent to IJ7 liol. U't e. for each seaman. Fiance trains up in this manner able and hardy seamen for her navy, who would cost the nation much more if they were trained on ships of war." — Ibid. "The United States' tonnage engaged in ISGli in the cod fishery was l!22.8ti.'? tons: in the mackerel fishery. MI,.")9(J tons: agniegate 20.'}, t,")!) tons. The returns of li;-li and od from this tomiage for lh()2 considerably exceeded 14,(IO(),0(]0.'' — /i. //. Dn-hij, p. i'J. " Seamen (United States) in tisherics in \h6'2. 2'S,04>' The lisheries C 2 im f if 10 breik 'n at least 6,000 new seamen annually Six hundred sail have, in a single season, fished for mackerel in the Gulf of St, Jjawrenco and Hay of Chaleur, and taken tish to the amount of 4, ;500,0fM). . ... Nearly one-fourth of our fishing fleet, with a tonnage of 40,000 to 50,000 tons, worth .'),000,006 to 7,000,000 dollars annually, fish near the three-mile line of the I'mviiices.'' — Ibid. p. M. Kejieal of llie Treuly. Such was tli(> Treaty of 1854, which the United States terminated in 1866, on the ground that (he adviintaf^'es from it were nil on the side of the Provinces, and against the Kepuhlic. Well luii^lit the CommissioniM* of the United States' Treasury, (Mr. Derby), writing regictt'uiiy of llic re|)eal, use these words : — " It (juintupled our trade with the Provinces, gave an impidsi' to |)id)he improvement, and utilized the new canals, railways, and other avenues of conimerce." And he might as truly have added: — "Had the Provinces reialiuted in the same sjiirit, it would have lost us the enjoyment of the shore fisheries ol the maritime provinces, tlio use of the Canadian canals, and the navigation of the St. Lawrence River, all of which we enjoyed without consideration." Fortunately, the Provinces did not act in the same spirit. They thoroughly believed in the practical good sense of the United States' peopi — especially with such a balance sheet to look back upon as the results of the Treaty of 1854 present. They assunjed that there were matters existing in 1 865-66 to trouble the spirit of American statesmen for the moment, and they waited jtaticntly for that sober second thought which was sure ere long to put all things right. Immediateiy on tiie repeal of the Treaty, Customs duties were imposed by the United States on nearly all the articles imported under it from tlie Provinces. The Canadian Tariff was very little clian;;e(l, aiul, as will he presently shown, a large preponderance of the exports ivum the Unit^sl folates into tiie Dominion arc still admitted free of duty. The use of the Canadian canals was continued to American shipi)ins: and conuncrce on precisely the same terms as to those of (^anada. The free navigation of he River St. Lawrence was still left open to Amei ican crafr, and the shore fisheries of the St. Lawrence were thrown open from year to year to American fishermen, on payment of a small license fee. fifj'cci ill (.'(iiKida of the Abroijalion of thu Treatij. The industry of Canada 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 1866 ot the Reciprocity Treaty, under which so vast a trade had grown up, rendered im])eratively necessary jirompt measures to open new markets for the sale of Canadian produce. These measures were at once taken. Under the influence of the formal notice given by the United States in 1865. of their intt^ntion to terminate the Treaty, Federation of the Provinces, then uinler discussion, was liurrieil on, and became a fait accompli within fifteen months after its repeal. The Intercolonial railway was at once undertaken, at a cost of over 20,000,000 dollars, at the national expense, to secure direct connection to and from the Atlantic Ocean, at Halifax and St. .John, on C'anadian soil ; and the last section of that road will shortly be f)pened for trattic. Commissioners were dispatched to the Rritish and other West India Islands, and to South American States, to promote the extension of direct trade between them and the Dominion. The enlargement of the canals, the improvement of the navigation of the lakes and River St. Lawrence, the construction of the 15ay Vcrte Canal, to connect the waters of the Bay of Fundy and the St. Lawrence, the subsidizing of ocean and river steam-ship lines, and the promotion of the great ship-building and h^hery interests, all received a new and vigorous impetus. These measures weie attended with remarkable success. Only seven fiscal years have passed siiuie the repeal of the 'I'realy, but already the loss inflioted by it has been more than made up, iiiid excellent outli'ls in new directions o|)encd tor Canadian commerce; with an increasing annual proportion of the vast carrying- trade forir\erly done for the Provinces by th.e railways, canals, and steam-ships of the l\e|)uhlic, transferred to Canadian iiands. The trattic between the United States and the Piovinces at once fell, from an average during flu; three vears betbre the rejieal (according to .Vmerican official statistics), of nearly /-X.OOO.OOO dolla/s per annum to an average of 57,OOII,00() dollars per annum (luriuir the (ir^t thre(' years following repeal; --the act of eonfederation, too, removed from the category of foreign commerce to that of home consumption, the larire interchanges of comtndilities between the several sections of tlic Dominion : and the aggregate forei{ju (i)miiiei'ei' of the provinces conseijuenlly t'eli in the tirst year alter the repeal of the Treaty to l'JI).2":i.6ir) dollars from 160.409,455 dijllars in the previous year. As will be seen 11 lave, in ft Jileur, and liing fleet, lannually, from the following statement, however, the trade of the Dominion speedily recovered from the blow, and the volume of its foreign commerce gradually increased until, in the seventh year from the repeal of the Treaty, it reached the great sum (for a people of 4,000,000 of 235,301,203 dollars, being 75,()00,()00 hi^lier than it had ever reached in any year of the Tic-iitv's existence : |6, on the jainst the Derby), I with the railways, liad tJie the shore 18(i7 1 H()(! 18fi!t 1H7(I 1871 187;; Totiil Exports and Importfi of C'aim'lu iiiul Ncwt'oundland. Total Dols. l39.'J<)2,til;-, l;)!),5it5,61,) 142,240,897 11)1,275,538 184,852,000 205,3;i9,94;'. 235,i!01,2()3 1,207,807,817 ere long InjiiTious effect of Ri-penI on United States' Trade. The traffic between the United States and the Dominion still retained large pro- portions, notwithstanding the barriers now raised against it. The aggregate imports and exports which immediately before the repeal had been (according to the United States' returns) 07,909,162 dollars in 1864, 71,374,816 doUnrs in ]86.'j,and 84,070,955 dollars in IhC.ti, tell iminediatciv ai\er the repeal to 57,927,347 dollars in 1807, 50,624,493 dollars in 1808, and 50,287,540 dollars in 180,\ Hut thi-re the falling otf stopped. The volume of traflicthen began steadily to reascend, and reached 07,939,125 dollars in 1870, 71,927,077 dollars in 1871, 73,720^512 dollars; in 1872, and .s-4,3Si,626 dollars in 1873, or within 2,000.0000 dollars of the highest point reached during the Treaty's operation. The agtcri'gate trafiic betueeu the countries in the seven liscal years since the repeal was 4'00,807,720 dollars. lUit large as this volume of trade is, it is instructive to observe how small a pro- portion ot th(! foreign conmierce 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 t lie agj;;regate exchange ot commodities between the countries averaged 40 per cent, of the entire foreign conuiieicc of the Provinces; and in its last year the average had reached not less than 52^ per cent, of their entire commerce. But since the repeal the case is totally altered. 1 he j)roportion ».f the foreign commerce of Canada transacted with the United States from .J2A per cent, in 1860, fell, in 1807, to 42 per cent., ill 1808, to 41 percent.; in 1S(J!). to 40 per eent. ; in 1870, to 42 per cent. ; in 1871, to 40 per cent.; in 1872, to -Wi |)er eent.; and in !S7.3, to 35 jier eent. The aveiiiLie pioportimi of the commerce' of the Provinces has bemi since the repeal but 38;) per cent., against nearly 50 per cent, in the last five years of the Treaty. Had the Treaty not lieeii abrogated in I8(i0, and the per-eentagi; of Canadian trailic with the States risen no higher than it did under the Treaty, the interchange of commodities between the countries in the last seven years would have aggregated 600,000,000 dollars. Chnnyed Chiinirter of the Traffic since Repeal. liut it is not only in the diminution of commerce that the United States have suffered hv the abrogation of the Treaty. The changed character of the tralHc now carried on between the countries, in comparison with that tunnerly done is also worthy of attentive ohscrvalion. For example, the consumption of lumber throughout the Republic increases enormously every year, and indeed, all over the world. The home supply of it in the United States is liist di.>iappearing ; jjrices go up steadily; and here is the result, since the repeal of the Treaty, on ihe Uiiiled States' [iiirchases from Canada, of that one article : — UoLs. 1866-07 Lumber cxporiN to I iiiuid Siaio . . .. .. .. (>,-137,.'UiO 1867-(:8 .. .. .. ,. .. .. li,7'>7,OOG 1868.6!) .. .. .. .. .. .. 7.2itS.H(; 1869-70 .. .. .. .. .. .. «.(i70.7(12 1870-71 .. ,. .. .. .. s.2()l.s;i7 1871-72 „ .. .. .. .. .. S,410.yl7 lB72-'(.i .. ,. .. .. ., .. ll.l;!4.95lj m • ^1 12 .\\\d tliepricesi ut' lumber ^o up in piuuipl >>viii|mliiy with tlic iiicicuaini; (luinunrl, f'or t|je bepeiit of the lumber operators, who are in no need of sympathy in C'linadu, wimtever they may be in the United States, but to the injury ol munorous bninclu's of intlurttry in which wood fornis an important element, and U> the serious cnjburrassuieut of ajtricultural operations on prairie and other lands. And so it is with tish, barley, peas, wool, hides, ^liecp, horses, and other articles of Canadian production, which cannot easily he ;;ot elsewhere. The demand from the United States is good and constant, notwithstandinu,' liie rustoni-house l)airier.>, and llu; prices keep steadily up. Traffic driven from United i^lnlrs Chdniirls. But in regard to wheat, flour, provisions, and other articles of which the I'nited States have a surplus as well as Canada, the eft'ect of the duties upon them has been to send through Canadian channels, direct to the maritime Provinces, the West Indii' Islands and Great Britain, a vast anioui.t of products that were formerly sold to New York and Boston houses, and shipped to these same markets through American channels. Where two countries alongside of each other have each a large annual surplus of the same article, and that article is in world-w'de demand, heavy duties again'^t each other can hardly be effective. The stuff' will find its way to marKet by some route or other. Canadians now Inrr/e ETporters of Western Products. The change in the other side of the account is equally instructive. The imports of domestic productions of the United States (as distinguishcfl from foreign productions) into Canada, in the four years previous to thi; abrogation of the Treaty averaged 'J8, 1 3 1 ,802 dollars annually ; but on its abrogation they immediately i'cU to 'J0,'')4S,704 dollars in 1867; and though they have since gradually recovered, so that the imports of the last seven years have averaged 25,649,349 dollars per annum, this was due, not to a demand for home consumption, but to the increasing carrying trade of the Dominion with I'oreign countries. The necessity of direct intercourse with foreign markets for Canadian products, forced on Canadian merchants by the repeal of the Treaty, led on to a (;on- siderable traflic with those markets in American domestic products; hence we find in the imports of Canada from the United States in the last four years, such itenis as the following : — I Meats — fresh, suited, nm\ smoked .Swine Flour and meal ludiau corn Wieiit ., 1871-7J. is7-'-7;!. Dols. Dols. 1,()17..>7^ 1,2'27,870 fil'.'..5nfi 1.2fl.j.8i;5 2.no4.t).ii 2..iO-).;381 .'),778,2.i(> 4,300,80^ 1,1.)0,.104 0.«1)1.217 I'.'.'in.i.os'i ifi.2.34..?r)-i Large portions of these articles were purchased for foreign exportation, either in the raw state or after being m'^nui'actured in Canada. The ;j:iii(M"d progress of this trade, though not consisting solely of American products, is pretty well indiciiteii j)v the following official returns : — Dols. 1868 Exports of foroij^n goods .. .. .. .. .. l,l!)(i,8'Ji 1869 .. ,. .. .. .. .. :i,H.-|,5.801 1870 .. ., .. .. .. .. .. t).r,2",(i2'.> 1871 .. .. .. .. .. .. '.),,s.");).(i:!;i 1872 ., .. .. .. .. .. .. lii.7H. I ■-'■■. 1S7I! ., ,. .. .. .. .. .. '.i,i():.,',)l(l 'I'litnl in sir vears 'i(i,.08;t,;n2 The home consumption of American domestic products in Ihe (.'aiuula niavket has, therefore, largely decreased since the repeal of the Reciprocity 'I'rcatv. Bahinre of Trade now largely against the Repiddir. But the most remarkable effect of the abrorjation of the Reeiproeity Troatv was the immediate change it produced in the balance of trade between the countries. From the 13 muiirl, for wliiitevei' ulurttry ill triiultiirul irtic'lcs of lie United lie luicos rnikil iius hem '>t Jndii' to New Ainericaii surplus iiNt each route or its tiic ; year 1820 up to ISfid, a torm of forty-si v years, there wore only (according to the United States' leturns) five years iu wliieli tiie aiunial trausactious bctweetl the Repubiie and the l'r( vinces did nut show n large casli balauee against the Provinces. But fbiir of these five cxcepfinns were merely the result of war prices and the overvaluation usual in free entries. Tile tiitiii' inleiclianni' of traflie from iHiiO to l8fiG showed a cash balance in favour of the United 'stales of l!).j,2 10,272 dollars. But this state of things came to a sudden end with the expiration of tiif? Treaty, and tlu; balances in favour of the Dominion have since been as J(.>IIowj- : — Doli. lH'!,lt()8 Diversion of Traffic froiii United States' Ocean Ports. 'riiere is .still another feature of the chantjed relations between the countries well worthy of special note. 'J'iie time was when the merchants of New York and Boston con- trolled a large piojjortion of the ini|)ort and export trathe of the British provinces ; but that time pas-.('(l away with tlie Reciprocity Treaty. Customs duties, Custom-house restrictious and examinations, Consuls' certificates, and bondinu; entries and charges, with all their aiuioyances and delays, have acted severely 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. K. H. Derl)y. Special Commissioner of the Treasury, in his official re|)ort to .Mr. -McCulioch of 1st January, 18(j(! (pau;e 81), makes this statement: "The commerce of Hbston aH'eeted by the iUeinrocity Trcai ' exceeds 27,000,000 dollars annually, namely : Imports from and exports to the maritime provinces, (5,000,000 dollars; outfits and retuius in deep sea fisheries, 1 1,000,000 dollars ; imi)orts of wool, grain, and animals across the frontier of Canada, and entered there, with returns, at least 10,000,000 dollars.'" We have no j)eisoiial Unowled^jeas to the accuracy of this estimate, but no better authority on the point than Mr. Derby could be desired. But if this was (he annual interest of one United Slates" port aHected by the Treaty in 18(j6, when the entire annual foreign com- merce of the ])rovince was little more than 100,000,000 dollars, how shall the gain of o.OOO.OOO or fi,000,('00 dollars to the United States' Treasury, levied on such necessaries of life as beef, fiour, coal, lumber, &c., compensate the loss of driving away Irom the great malls of the Republic the lion's share of a traffic already amounting to 23j, 000,000 dollars per annum. (.'(mptiidllve liiiiinrtnnrc of (Jumtdinn Traffic in spite of Restrictions. But with all these barriers and drawbacks iu the way of natural and easy traftic, it is in the liiu'hest degree instructive to observe how important the commercial transactions between the Republic and Canada remain, even now, in comparison with those betweeu the rniled States and countrier, more remote. i'ermit us to analyze the export tratiic of the United Slates for the fiscal year ending 30th June, 1872, in order to show this. In that vear the entire export traffic of the Republic with foreign countries, including the trade in transitu, was as follows : — Of homo producls . . Of !iM. tun l)l•()llll(•t^^ ,. Of fir, iMi;ii iiriiiliicts /// Iniii.^i/ii nwr tin' railways, \t'.. of thn Uniti'tl States to fori'iitii cinintrii's Total riiiiod Siato« tAiuirt tratlir. 1H71.7J Of tlii-i va>t tiallic llnat lliitaia ami liir C'l'laiii's (omittiiiy Camilla and Nrwluuinllancl) tonk fioiii tlio I'uitcd S;aiL—- Of lioiin- pi'uliwts . . Of IViivi^n proilac'ts Of guoas ill tmiiailu, DoU. .Vl9,21i),7lM •J2,7(iS),7 19 ;ii.;m'),;i2o UOi),U7-l,7S7 32&,22l,701 H,811,872 3,120,332 DoU. iMl,18!i,U06 Total oxpoit traffic 201,881,882 mm f 14 Of tbi* remnining trnific, tlic UiitiKli Ndilh Aniericmi ProTinceH took — Of home prodiivtw . . . . . , , . , , Of foreign produetd , . . . , . . , Of good" in Iraimilu Total Uritinh North Anu 1 112.022,7 HI !)9.'262,1«!! From these fiirc. the Russian Kmpire, lirazil, Mexico, Italy, Japan, Hayti, Venezuela, Denmark and her jiossessions, Chili, I'ortuijMl, and her possessions, the Central American States. I he Austrian Empire, tfie Argentine Republic, the Turkish Empire, the Sandwich Islands. Sweden, Norway, Liberia, and Greece all put together. The total expovr traffic of the United States to these twenty countries, in home products, foreign goods, and goods in transitu, being ')(),(Ju3,3'i9 dollars, while that to Canada was 56,8r)7,194 dollars. A continued analysis of the United States' official Returns shows that, while Canada in 1871-72 thus swelled the export sales of the domestic and foreign goods in the United States, and the carrying trade of their ocean fleet and railways and canals, to an cijual extent with the above twentv countries, the I'nited States took that vear from Canada in return but 40,991,432 dollars, of .vhicli 4,0 14,.''>(il.' dollars was gold and silver, 1,180,790 dollars goods of United States' ])roduction returned to the States from Canada, and 691,299 dollars effects of immigrants passing through Canada into t'n.! United States. But, on the other hand, while the twenty countries al)ove-namefl took, as above stated, but 56,663,359 dollars of the export traffic ot the United States, their import traffic into the United States was no less than IOH,,S77,(il3 dollars — of which only 7,218,620 dollars was gold. Compiirativf Ditfirs in the I'niliil Stule.s and Damininn. Again: of the entire puxhases i)y Canada IVoni the I'nited Stales in 1871-72 of home and foreign products (excluding the traffic in Innisiin troin the comparison), articles to the value of 20,710,532 dollars were admitted free of duty, and only on 12,04N,548 dollars was any duty paid. The total amount of duty levied was 2,216,215 dollars, or an average per centage on Canada's entire impoi-tations iVoni the States (free and dutiable) of that year, of only 6| per cent. On the other hand, of the purchases by tin; United States from Canada in the same year, the articles admitted free of duty were to the value of but 9,329,881 dollars, and those subjected to duty .'ll.C'il,.').')] dollars. Indeed, as there were included amons the free importations 4,f)l!l..'')02 dollars of gold and silver coin and bullion, 1,180,790 dollars of United States' iirodiM'tioiis relurned to liie Slates, and H8(i,i-i00 dollars of effects of ininiigrants passing through Canada into the States, — the free imjiortations of merchandize from Canada by the United States were, in reality, but 2,842,7^!) dollars, against 3 1, 03 1, .'355 dollars, on which Customs duties were levied to soniewiieK! about 25 per cent, on the entire imjiortations of the year. Sntiii' Fails (lenionshatrd ill 1873. And the same state of things is found in the year ending 30tli June, 1873. The declared value of the entire export traffic of the United States with foreign countries was as follows : — 1 iiiifl her He of tlic toiMidland (lid any more of by Spain at, in the the entire I, Mexico, i!;iil, aiui Argentine Kiria, and sc twenty ')9 dollars, Canada he United ) an e(jual Canada in 1,180,790 riada, and 'A States, tatcd, hut c into the ollars was I of home les to the sllars was eragc per that year, ites from le of but here were 1 bullion, '0 dollars tations of !i dollars, 'It! about "3. The ti'ies was IS Doli. Of homo prodiirtN .. .. ,. .. .. .. 049,132,563 Of foii'iifn products .. .. .. .. .. .. 'JS. 1 49,5 11 Of foroijni pniiliiclM paNxinir in Iruiititu ovpi' tin' railwnjTH ftiul ennnU of thr> St.itrN to foreign loimtricH . . ,. .. " .. ., *0,090,18fi Tntiil United Stiitc's export traHic- 1 ST. -7.1 (Jf tliis 'ii^t export iratlii 'ircnt liritiiin and her ?tdonii'H received from the I'liiled Slates: — Of home products .. .. .. .. .. 42n.!».1i).2H:i Of I'oreinn pi'xli'cl'' •• •• •• •• IM.IiMil.lTl Of fuieimi nDuds brouclit over the mil way t mid rannin of the StiiteH .. .. .. " .. .. ;!3,()71,.):j!) 7i)(>,!M!t,'.'5!l I7'j.()l'.l,i)fl3 Hftlnneo to the rest of the world !:t4,2'.M».27fi Dol-. ;)i .;;(iK.Hii •1 .'JOI'.JI/. jii 7HI.1KI D.) .350,71(1 li-t .72 1,1'.' 1 ;iti .its;),'2(ii) •.'!! .•.'.)7,1J1 (>(( ,-.>;) 1.1 CH Of the above great amount of tr.'itfic tiikcii from tlio Unitei! State-; by CJiciit liritain and her Colonics Caniidii took — Of homo ])ro(hieti« Of loreiifii proiUiets (^({oodx imporled over the railways and canals of tho Uni . stale-, 'I'olal export trallie ol'tlii' I'liited States to (liinnda, . Oerniaiiy's share was I'ranee and her possessions took .. ,. ,, •Spain and her possessions toiik ., ,. .. ,, And all the n st of the wjrhl took Great Britain and her possessions took H? per cent, of the fitire export traffic of the United States for 1872-73, and all the rest of the world but 3.3 |)( r tent. With the exception of Cerumny (wlioge tiiitiic exceeded tliat of the Dominion by onlv 3,307,681 dollars) Ciuiadii in tliis year was the lar{,'e.st ciistouu r of the United States outside the British Empire. She took ;^I),'J73.'I70 ilollais of United States export traffic more than was taken by France and licr pf)ssessions ; mort^ tliaii double what was taken by Spain and her possessions; and moir titan the Kussiati Eiupirc. Japan, Italy, Hrazil, Mexico, Hayti, Peru, the Argentine Rejiublic, Venc/ucia, Swed^'U, Xorwtiy, Denmark and htr possessions, Cliili, China, Uruguay, the Austrian Einpiiv, the Turkish Empire, tht Ctntral American States, Portuj:al iind her possessions, tlie Sandwicii Islands, Liberia, and Greece all put together. These twenty-two countrie 'jok in all ()4,901,14.") dollars of the export traffic of the Unircd States, ol which 12,397,315 dollars was gold, while Canada alone took G5,3.'>G,740 dollars, of which only 4,2(39,181 dollars was gold. On the other hand, the United States in the same year imported from Canada but 43,«09,070 dollars, -.)f which (J,15'J,.")38 dollars was gold, i.21 1,1.')5 dollars products of the United States returned froin Canada to the States, and 72!(,98,'5 dollars, eifcets of immi- grants passing tiirougb Canada into the United States. The actual importation of Canadian merciiandize was, therefore, but 3.'^'. ?()>*, 392 dollars, while the twenty-two countries abovivnameci, whose sli^'re of the United States export trallie of the year was but ()4,90 1,145 dollt^fs, iucludit', gold, or .'j^.o'.to.SSO dollars exclmling it, sent into the United Slates in the same year no less than 131.lUl,4'J.3 doihus, of wliich but 2,104,393 dollars was gold. The 'balance ol" trade" tor the years 1872-73. tiierefbre. was fi2, 593,830 dollars of e\|i>)fl tinHic from the United States into these twenty-two countries, and 128.997,030 dollars of imports iittn the United States from them, or 70,30.3,200 djllars against the United States. And the contrast is even more marked wl'.en the United States eusioms duties on Canadian products ate coinpaied with those on the products of other countries whose c.immerce is of intiiiiteiy less moineni liiaii that of Canada. In the year 1S72-73, of the 35,708,392 dollars of meiehiindize imported by the United States from Canada, onlv 4,33-1,285 dollars was admitted free of duty, and on the remaiinti'.i amount of 31,374,107 dollars duties were levied to somewhere about 25 per cent, on the entire importations t'roin Canada of that year. Catiada, on the otiier hand, on her importations from the I'nited States the same yeai , admitted merchandi/.e to the value of 22,01 (),fi90 dollars entirelv free of duty, atid levied duties on only l(),555,80() dolliirs, to the amount of but 2,923,795 dollars, or 8.', per cetit. on the entire importatitms of merchandize for the year. How ditfereiitj was it with the twetity-countries above-named. Of their importations into the United States, 102, 501, .338 dollars were received free of duty, and only on 29,200,085 dollars wi;s any diitv charged. [492] D t T 16 It is not for us to criticise in nny way the nmn""r in which the United Statctt choose to iinjiosc tiii'ir (h\tic>*. We nienly nu iitioii tiiese (hiii^'H to riniiiul you ol the diwui- viintii^'CDUs |)o.-.iti()ii ( 'amuhk occMpics in her IraiiHHCtioiis witii ihe Kepuliiie, in eonipmison witli tiiiit of other eo'intiiet, \vho.«e transaetionH are not to be compared in extent or profit witli those ol' tile British provinces*. When, with ail the»c tiicts lict'orc them. Her Miiiesty's Advise. te the Oovernnient ot'tiie United States to reeonsidir tiie wliuK' eoiinniicial relations ol . He|iuh!ic a'ld the Dominion, with h view of plaeinL' tliem on a iViendiy and dun.hie bnsiH of reciprocal advantau^'. tlie (pieslion nutnrallv presents itsidl'. how it comes tiiat, liavina; prospered ho well since llie repeid of tlic iiicipniciiv 'i'ri'aty ol' 18.') I, t'anaila now sicks foi- its restora- tion. The answer is as niitmal as tiie t|Uesii.»n. The populalioii of the Ur'ited States is 40,UU().0()(), and that of the dominion is l)ut -4,()()l»,tin,n trafHc; and they seek to have these withdrawn. They are proud ot their own Si. Lawri'iice route, and intend to improve it to the uttermost i'ov the benefit of the preat West and their own; hut would filadly u-«e the ocean ports and (ilher channels of comnuM'ce of the He|)ublie, when freights and fares and t'lii ndly reciprocity dr.nv them in that direction. And very great as have been the advantages always aeeruini; to the Uiiit"d Scutes from reciprocity, the Canadians can tind only cauic of he.irty rejoieinf; at that, s,) loiii,' as they themselves continue to enjoy that moderate dcj;'rce of |iiosperity w'th which I'rosidenee has blest them. There is no mystery or iirnvn'-jtcnsi'r. in llieir desiie tiiat the (ommercial rel.itions of the Republic and ihe Duininion should be |ila<'i d on the mo>t Kindly and unteltered and mutually advantasicoiis basis consistent with their respective exi^till{^ ol)lii,'ations. and with that connection witii (ireat 15ritaiii which the Dominion so hiipi)ily enjoys. It was with the>e views and in this s|)irit that the Canadian Administration availed itself of the o|>|)ortnnity presented by the X.XIInd .Article ol' tia' Treaty of Washington to represent to Her Maje.-^ty's (jovermnent the advantage that would accrue to both countries by the substitution of a satisfactory Commercial Treaty in lieu of the money compensation to he pnid (under arhitiMtion) by the'L'nifed States (or twcl* c years' enjoyment of the coast fisheries of the Dominion. It was telt that if the huge value placid bv the Canadian people on their tislievies were not reasonably compensated by the results of the arbitration, a icelini; ol' (iissatisfiiction miglit be en'.:endered in the provinces, not conducive to inter- national harmony; and that if. on the other hand, an award were made ecjual to the eontident anticifiati 'ns of the piovinces, the j^ood feiling restored in the United States by the Treaty of Washington mighl he seusiiily impaired. To merge the matter in a general measure of mutual commercial concession, for the mutual advantage of both |)artie8, and with injury or injustice to niitiu'r, seemed tiie fitting conclusion to be arrived at by the (joverniuents (u'two great nations. ller ^hljesty's .Ministers were pleased to adoi^t the suggestion of the Canadian Government, and the matter havinu; been brought under the attention of the Secretary of Scale, and through you, Sir, to tin notice of the President of the United States, a friendly response was at once received, and tiie ncce>>ary measures instituted for opening formal negotiations. In the interview which wc liad the honour to be favoured with by you at the State Department on the i'Sth March, we stated to you that Her ^hljesty's Government was prepared to accept a renewed of the l'e(i[)rocity Treaty of 18.'34 as a substitute for the arbitration provision of the Washington 'J'reaty, in reference to the Canadian Coast Fisheries. You, thereupon, sugirc.eted an enlanremcn' of the scope of the Treaty, and wc asked in what niannei- you would pnipo-e to enlarge it. You replied that you had no proposition to make, hut that you suggested, as topics for discussion — the enlargement ol'tlie Canadian Canals, so as to facilitate the tran.sp(jrta- tion ol' the products of the great Western Stales lo the Allantic seabord ; and also the addition of certain classes of manufaelures to the free li.it of the old Treaty. W^e then stated tliat wc were jiiepaicd to enter into an agreement for the enlargement of the Canadian canals. em 17 lU'H choose the (liniul- |('()iii|)ai'i>oii |iil or prolil ■ovL'intncnt |>!ic and tlu' ici'i|)?'0('al '<>«|)irc'(l HO its icstora- I'l States is II llirrn is, l>i'>i(ie it ; III frond will coiiiniercittl iiniula are )(l as tlioir •oiii|mliend in;; tnitfic; •fiicc route, tliiir own; ' l^'publie, And veiy icc'ipmeity, flii'iiiselves I'lest them. ions of the t^^ttcMcd and aid with tion availed Hliington to til eounttics 'inponsation of the eoast Canadian iiihifnition, e to inter- lu.il to the ited States latter in a i>th parties, ived at by C'anadinn fciitary of , a friendly iiig formal In rejrard to the addition of eertain claises of mannfartures to the (Vee lint under the old' Treaty, we reminded you that the rcviMuu- of the ('Hnii(linii Dorni'iion was iarjfely ohtnined from a U'iper cent, ml iiildrrni duty on manufaeluieil y,trial interests of the Canadian people. in the spirit of this assunmee, we invited you to suu:',fcst lor di«eus«ion the classes of inniuifacturcs that you wduIcI desire to have einbiaccd in ilie new 'IVciitv. Thi* you declined to do ; but you urged that we should indicate the cnlaruoii'.ent of the old i'rcuty likely to be acciptable to both countries. Without ac(piicsjiiiir in the propriety of this course, we yielded to your wishes, and now proceed to fullil our promise lo do so. Sug(jfi)tion>i. We propose that the new Treaty shall he for the t( rm of twenty-one yeavs,- inspire eonfidcnco amon-r business men inv-^tint; their capital in ^.ucli extensive enterpri ns would naturally follow fro"\ the eomi)lcti()n of a eonipiciiensive 'I'reatv. to ises \\ c propose that the I'reaty siiall juovide fu.' the free ;Hlini>sion into the United 's. the Dominion of Canada, and tiie Island of Newfoundlaiui, of the lollowinu; articles, States as under the Treat v of 18.'j4 : Anim!il> ol' all kintls. Uuttpr, CllCO^O. Furs, undressed. HiileH, uiidre««0(l Hc^rnK. Lurd. Rrcndxtufl's of all kinds. liroDni-corn. Cotton- won). FIftx, uniiKinnfhPtiircd. Flonr 111' all kinds. Fruit.<, (irii'd and undricd. Oriiin ol' .ill kindf". Hrmp, unniiiQufacturcd. Aiiimiila anil >hrir Products. Alriits, I'rosli. rriidc or uiiwrouj;ht state. Ores of all kinds of inetiils. Slate. Stone in its erndo or uiiwrought state. D 2 IN I'luiliirh of Ihf Willti. V'\<-\\ kI'iiII kiiiiU. 1'ii.h, iiriiiliii'tH i.r, itml Ml iill oilnT cmilui'i'* livinu III ihf wfiitiT. Kixli oil, Siimlrirt. |l\i >liiiri>. Maiiui'cn. Itll^D. Wc |)io|i()S(' the lullowiii^' additiims to the above U»t of free urtieles : Ail ii'ulliiiHl im|ilriin iit'« — !•> Ill' ili'fim'il, II I'k, I \ti,it'l-> iil'i lor laiitiiiiK |)ur|>o-< - I'urtli (icliri "•, ;{iiiiincl or iiiigioiiiiil lla>. Lilllr Mult. Miiniirnelurt'!* i>l iidii oi nti > I, Maiiiit'actiiri'N ol' iron or'ntt'il anil wood jointly. MllMllfaCtllR'H (if wood. Miiii'ial and otiirr oIIh. riastir, raw m ralcini'd. Suit. Straw. .Sidiii'. niarbli' or granite, purtly ur wboUy cut or wrought. We propose tliat tlie iiijoymi'iit ol the ( iuuuliiiii eouht tisherien HJiall be conceded to the United States diirini,' the eontiiuiance of tiie new Treaty, in the manner and on the con- ditioiiH jirovided under the Wasliiiiirton Treaty, excejit those in regard to the payment of money conipensution for the privile};i!. \Ve propose that duiini; tlie continuance of the Treaty the coastini; trade of C^anudu und of tiic United States shall he thrown optii to the vessels of both <-ouiitiies on a footing of complete reciprocal cipiality. We i)ropose that the Cauadian cauid>. fioni Lake I'lrie to Montreal, be enlarged I'ortli witli at the expense of Canada, x) as to admit "f the |)assao;c of vessels 'JOO feet in length, with 4'» feet beam, with a depth etimil to the capacity of the lake harbours. We propose that, diirii;,'; the contimianci' of the Treaty, all the Canadian canals and the Erie, NVIiitchall. Sauit Sir. .Marie. ..nd Lake :-^t. Clair canals. In the United States, shall be tiiiowu opt'ii fn the vessel.-., boats, and barijtN of both countries on the same terms and coiulilioiis lo the eiti/eus of both couuiries; and that fidl [lower be given to tranship cargo from ships or stean)ers into canal-boats at any c.uud entrance, and also to tranship lioats into ships or stcami'is at any canal outlet. The I'lee naviiiatinn oltiu St. Lawrence Kivi'r having hi^en I'oiiceded tor ever byCreut Ihitain to the United Stalls under the \Vashinj;lon Triaty, but the free navigation of Lake Michigan having' been conceded lor ten years oidy by the L'nited States to (ireat Britain under the same Treaty, we propose that both conecssioiis be jilaced on the .same footing, flee from n stiictioiis as to reporting at any jiort in tlie United States other than the port of destination. We propose that during the continuance of tin' Treaty \essels of all kinds, built in tiie United Stide.^ di' Canada, may he owned and sailed l)\ the eiti/ens of the other, and be entitled to ivt;istry in ciilur coimtiy. and to .ill the l)inelits tlureto pertaining. We pripose that a .loint Commission shall be tormed. and contieued during the operation of the 'li'i aly, lor ilceju-ains;' and mainiainini; in thorougldy etheieiit condition he navig..tin, tlic i'iu;lit of iKliiiiliciitiiiii of tlic I'l.iim ul Ciiiiadii to ctiiiiiX'tiHatiiin lor tlir liMlicrics, ouHi'i' Articles Wll lo \\\ ni llie 'I'le.ity ol WaMliiiit{loti, would in no deufiee l)f waived, and that in that event the Inllilninit of I hi' Htipiilation'^ eoiitaini'd in tlio^c articles uould he iiiiiiiediattdy proceeded with. H'liihinifloii, /).r., April '27, Ih74. (SiKiied) KDWAKI) I IIOKNTOX. (iKO. MKOWN. oixl joiiitlv. wliiilly cut 'ded to the 1 the con- )ayinent of of (Xanadu n a footing ,;;ed forth ill length, eanals and tvd States, aiiie terms <) tran>hip " tranship >«• by (ireat '" of Lake 'at Uritain e looting, 1 tlie port ■*> l»uilt in •r, and he urinif the eoiidition er bide of ly hy the ill the.>se lid niaiii- d proper iry to the aintaiiicd •e inland I'll of the ^tinuiuii'e , 1)11 ilie '•it Irade I'V the No. •). Vir Km I i,J JJeihy lo Sir H. Tlinniloii. Sir, h'omijn Offiir, Mai/ '2.i, 1h7M, I HAVK received your despatch of the liHtli iiltitno iorwardiiiL, a copy of the Meinoraiiduin containing proposals lor a Keciproeity Tiealy, which has liein suhinitted hy yourself and Mr. Urowii to the l'nit<(l States' (Jovernincnt, and I have lo wtatc to you that Her Majesty H (iovernnient approve this paper, which ajipears to I) ' di.iwn np with care and ability. I am, iiv. (Signed) DEHDY. No. 10. Sir K. Thiiriilon hi Ihr Karl of Drrlii/. — (Hrrrircil Jinif .'tO.i (Kxtracl.) WtiHhinijlun, .hnir 17, 1^*71. I IIAVH the honoiii to iiiforin your Lonlslup that, after a great many confVrenees which Mr. IJrown and I have had during ihe last tew days with Mr. Fish, we have at length agreed upon a draft 'I'reaty lor the ii'L^ulatiun of the comniei( iai relations hetwecn the Lnitid States and Caniida. wliicli .\Ir. I''isli 1ms promised to send to the Sinatc to-morrow with a view to elieitiiiu' an opinion from that liody whether it will lie e.xpediiiil to sign a Treaty on the hasis of the stipulations j)roposed in the draft. I have the honour to inclose a copy ot this draft. Inelosure in No. 10. Draft of Rcciprucit;/ Trculy la hv snliinillrd In tlir Snidti'. IIEIl .\hijcsty the (iueen of (ireiit ISritain and the United States ot' America, heii.i;' desirous of improving the eoimneree and navigation lietween tlum- respeetive territories and peo|)le, and more especially bttueeii IJer Majesty's possessions in North .Vmeiiea and the United States, in such manner as to render the .-ame reei[iroeally heuetieial, have lespvc- tively named Plenipotentiaries to confer and agree thereupun, that is to say — « « k; * ■ « Who. alter having communicated to each other their respeetive lull powers, found in goad and due I'orni, have agreed upon the following .VrtieU's: — AUTKI.E I. It is agreed hy the High Contract lo the United States' lishermun jutraeting Parties that, in addition to the liherty secured .„ V ^ ^ by the Convention hetween (neat Uritain and the TTnited States, signed at l.undon on (he 20tli day of Octoli.r, I.SIS, of taking, curing, and dryiim- tish on certain coasts of the British North An.eriean Colonies thiiein di'liiud. tlu- inhahitants ol the United States shall have, in common with tlie siihjeets ni Her nritannic Majesty, the liherty, for the term ot yeais nu'iitioircl in Aitieic \\ of this Treaty, to take tii-h of eveiy Uind, except shi'll-ii-li, on llie sea-eoa^ls and siioie.s, and in the hays, harhours, and creeks of the Provinces of (^ueliee. Nova Seolia, and New IJrunswiek, and the Colony of Prineo Edward Island, and oi the several inlands thereuiii.) adjacent, without being restricted to any distance from the shore, with permission to 20 linid upoii flip snid coasls, iiiid sliorcs, mul islands, and also upon tlic MaRdalcu Islands, liii- llu' pur|)i)^i> ol' dry inn; tlu'ir nets and cnnng their tisii ; provided tiiat, in wo doinj?, tlii'v do noi iiilcrU'rc witli tin- ri^dds of private properlv, or witii IJritisli lishonnen, in llu peiiee;d)le use ol' anv |)arl, id liio said coasis in tlieir oeeupuney lor tlic same pni'|io>-i'. It is inuierstood tliat tlie above-nientinned lil)prly api)lies solely to the sea tisliery, and lliat llu; salmon and shad lisl.erios, and all other liNheries in rivers and tlu; months of rivers, are lierehv I'eserved cxi'lnsiveh lor Kiilish lishernien. Airi'lCM' II. It is au'reed !>y ihe I Hull ( 'oiilraeliii'; I'arties llial Hritisli s(d)jecfs HJia'! have, ill eoimiion wiih (lie eili/nis ol the I'nilcd States, the lilierty, lor the term ol' years iiii'iiiiniu-d ill Arliili' \^ III lliis 'I'realN. to take lisli nl' every kind, except shell-lish, on the eastern sea-eeasts and slinies ul liie I'liiled Stales iioitii nl' the thirly-ninth paialiil ol noilh latitude, and on (he shores ol' llu' several islaiiils lliereunto adjiKciil, aial in Ihe hays, haihinirs, and eiicks ol' I lie said sea-eoasls and shores ol' the United States and of the said inlands, wiilimil heiiii;- re-lrieled to anv distanee from the hlim-e, with pi rmissioii to land n|H)ii ihe snid coasts (il'iho I'niled States and ol the islands at'orosui''', lor tiie (Mirpii'-e (il'ilryiii.; tiieir nets and eiu-iivi; their tish : provided tliat. in so doina;, tliey do not inlerl'i're \vitli ihe li^'hlsol' private pr "rlv. ov with the lisiiermen of the United States, in the peacealile use ol' anv pail nf ilie >aid coasts in their occupancy for the same ])urp(isc. It is understoiiil that the aliove-iueutioiicd lihialy ai)|)lies solely to the sea lishery.and that salinoii and shad liNheries, and all ullier li>lieries in rivers and montlis of rivers are lieivhy reserved exclusively for lishermeii ot'the I'niled Slates. AUTlt'id'; 111. Il is auMced that the place.-. desii;ii.iieil 1)\ tlu; C'oinniissioiiers appointed under the Isl Artiile of the Treaty between (iieal Uiitaiii and the United States, concluded at \\'a.-liiii',;ton on the .ah ot .liiue. I>.'il, upon the coasts of Her Britannic Majesty's dominions and the I'luted States, at places reserved Ironi the connnon rijjht of fishing nndei- that Treaty, shall he regarded as in like manner reserved from the common right of ti>liin^- nutler thi- pieceilint; .Arti( hs. In c;.sc any (|uestion sliould iuise hetween the (loxfinment ol lies Iniiaimic Maiesly and of the United States as to the common rii;ht of ti-iiini; in places not thus dcsiaii.itcd as reserved, it is af!;reed that a Commission shall hj appointed to (iC-i_iiaio sueli placid, and .shall he constituted in the same manner, and have the same |)n\\ers duties, and authority as the Commission appointed under the said 1st Article ol the Trealv of the ."ilh of .lime, I.S,')4. r!* .AKTICLK IV. It is ajrrecd thai the .Articles cmmierated in Schedules A, H, and C, hereunto annexed, heinc; the jjrowtli. produce, or manufacture of the Dominion of Canada or of the I'irted Slates, shall, en their imjiortalion I'loin the one country into the other, from the 1st day of .lulv, ]x't'>, lo tile ■'it'ltli day of .lime, iS7(i (hoth iiuliideih, pay onlv two-Thirds id' the diitit's jiayahle at ihe date of this Treaty on the importation into sucli country of ■-ueli artick> respeclivi'l\ ; ami Innii tlie Isl of .luly, IsTti, to ihe .'50tli day of .hine, \X77 (hoth ineludein. shall pay only one-third of such duties ; and on and after the 1st dav of July. Is77. for the jieiiod of years mentioned in Article \lll of this T'vaty, shall be admit led free of' duty into each country re>|iectivel\. for the term meniioiicd in Arliele XIU, no other or hi^dier duty shall he imiiosed in the United States upon other Articles not enumerated in said Schedules, the {growth, oi'oduee, or inaiuil'aeture of Canada : or in Canada, ujion such other articles, the fffowth, produce, or nKimil'artiirc of the United Stati's. than are respectively imposed upon like article^, ihe uio\\tli. produce, or manufacture of (Jrcat, Britain, or of any other country. S( niuLi.L (A), consi.stin^' of Ihe lollowin;^ Natural Products: — .■\iiinKils 111 :i?l Kiiiil-, A-iies. put. ])i_'iirl, mul •^mlM. Rurk. .. ixlract. 1(11 t.iiiiiiii;, jiurpo^ ll.itli l.ni'Kv l!ii'ii(l^nill> 111' ;iU kiiiiK. Hiick^ I'oi' Imikling, laiil iiro-briuks, Hrooiii forn. Axl-s BmoI- B.ioi a' llUlllll'l C'linuu Coii.iu Coll. CllttOll Cotujii Colli Cottilli Cnliin Cai 1 1 ' V. 1. Vnr . V. 1 1 I (ill'M Iruii- Igdalcii l^lnnds, j(, in so (loinfi;, tlisli fislieniieii, ly tin' U)t> sarnc llir HL-a tisliery, |l the moutlis of shall liiwc, in term of years \(T|)I slicll-fisl), the lliiily-niiith to udjiKciii, and 'ii- UniU'd Slates tile slioi'o, with slaiids ut'oi'L'sai'''; I so doina;, thcsy I) of the Unilod u;y for thu same 'Jl BiHT or iifriudKtuiUh, liowii, wroiinht, m iinwiounhi. Bullpr. Chi'rit". Ciiul iiiiil cnko. Cnllciii-Wdol. , C'oitnnniiHto. Dypxlutls. Kartliu, cluyH, ochi'(». iiiiil siuiil.groiirnl or iin^i'iniiK VK»- i^li, iimiliiclH ( I lull ml rrof. CulliMlt.'rS, nl p.lll- tiillCuf. Cliuir-ciitUTH. I r |ialt> lliii'C' f Corn liii-kors, or part.s thereof. rhcese-MiiK. C'ueisr liU'iory lie :ii r». Clieese-iir' sc", or imrl- thereof. f'huru^. or pirl.s 111' ic f. Catil -feed boil. r> und -feamern, or piirti tbi'n of. Di'diers, or pirts tin reif. Fi' Id roUris. or puns 'hereol. F .nunm-miU-, or parls riiireof. I-V" il elic.ppers. or |i;a'l- lln leof. Foikn for i>a\ Hud inaiinii'. hand or borse. O.am-ilriUs, or jmn.'- iIm rcof. Orai'i lir"iuU'ast mjwiih. or parts iherrol Or,iiii-('ru', iiiiud iir horse. Ilorsi'-inke". liiM>.e-p llureof. M'lui rs, or p ris iheicif Oil iiiid oii-eake cru-ln rs, or parts thereof. I'|oli(rbs, nr parts tlll'I'i of l.'oiit aiid'^eed plant' r». or parls tliei-'of Roi't-iutters. piilpei'. and ua-.ni;rs. m- parts thereof. i Itak.'H. i U' II pern, or parln tliere. f. I ii' apir and iiio\M'r coiiibini'il, or jiai'N tlieri-of. S|,a.lis. Shovels. Seythes, Siiai'hs. 'riiresbint,' marhiiu's. or ])arts tliereof. nd C. heremito 'anada or of the other, from the only two -Thirds such erjimtry of y of ,limr, ls77 •r tJK- 1st (lay of Treaty, shall be I lie imposed in le.s, tile f^rowth, .•les, the ffrowth, losed upon like :her country. SciitnLLii (C), consistint,^ ol'tlK' loliowint; .Manufactures :- Axl' s, all k'udn. B'Mil- and sli'i(s of leather. B'lOl nnd shoe-niiik nj iiiiidiines. Ituriiilo robes, difs-ed and ininiLed. C'ot'ou nrain-b.i;.;s. Coit'iii deiiuns. Colloii jeai.s, uiibli aetled. Cotton driliin'js, unbleaehpil Cotloii ticKii ff*. (.'olioii phiiils. Cottonailes, unbleHeht'd. Cnbiiu t vine and furniliire. or parts Iherei f. C'airi.i^fe-. cans, \vai;ji"ii». and othrr \vhe> led vihieles, and >li'ifjhK, nr pirts thereof Fire e' ({inis, or pans llnrn'f. Fi It eoMrinj; lor b.iiliis. Outla-peri'lia hi Iniiy; ami liibi'ifj. Iron — liiir, lioo|i, |ii(f, meidiiij, r, d. slipet. or •■eiii|i. ,, nai H, -pikes, liiiltK, laeLs, briickj, or spnij-. e s ilii;s liiilia-riiblier belling .iinl Inhii g, I.oeotnolive." fur railways, or parts tlieteof. Lead, slieet or jpm. Leather, sole or upper. I.ialher. liann ss aiel sudd erv of .\liil, or laetiin. or stea'iibn.it, li.\ed eijgin'S and niaehiiie-, or ])arts ilii reol. MaiH'f leliiri K ol marble, -lone, si ite. or frra"ile, .M;iiiiilililures of wo'd -oleiy, or of woo'l la h'd, licand, hiiiued. or loeked. Hitu inet.il inate'i.os. M :im\i '•• wa-liiiiK inaeiiines, wrii fiint; luaeli.ni s, and dninii; n.aehinis, nr pails tliireof. I'riniiiiir paper, fur neHspapei-s. l'.i|iei-iiiakint; niacliiiiev, or parts thereof I'.iiitu';; '.''I"'' JircH'^es and fmlers, piipi r t'littir-, ridini; inai'liines, paje-iiii:iiln 1 iii;; n aeliines. ai.d St' r. 1 tV] thei' of Itel'r if' rator", or (arts tlni'eof II. ilr ad nir'*, eai ian s, ai tl tr i k-, or paits ihrrio!' Sa iiii'ii ol «i 111 M,d ('. tten Si ,,iii.en'.'ine-, or p:rts ;l eri of, !Sn' 1, WKiU'jiit or ('a»t, ana stn-l piaiisaiid rads. I 1,1 tul.i .s and p pini;. 'I \vi ei.s I 1 \\ U'l so I 1\ . W .'Her-whetd inaehine'- nil. I a]iparaUis, or pa;: thereal'. ■>t' r. 1 tviiiii"; and paje-ini:iiin 1 ill;; n aeliines. ai.d iliclrotvi il '^ nppar.tus, or part* 22 AE'riOLE V. It is agreed tliat, the Cnnadimi canals on the main route from Lake Erie to Montreal, slmll bu I'lilnrned Ibrtliwitli, iit tlie c'xjjcnst' of tiic Dominion of Canada, so as to admit tiio piissau-o of vessels dniwinu; twelve feet of water ; and' the locks on the said canals shall hi; made of not less than '-'70 feet in lennlli, 4.') leet width, and not less than 12 feet depth on tlij mitre sill : ai\d that the eliannel of the St. Lawrence River shall be deepened in tlie several roaches between the canals wherever the same may be necessary, so as to allow the I'ree passage of vessels drawing; twelve feet of water. And the work enirai;ed to be done in this Article, shall be e()ni])leted by the first day of Jannary, 1880. AirricLK VI. It is agreed that the (Joveiiunent of Canada shall construct, on or before the first day of .January, 1880, a canal to eonneet the St. Lawrence lliver, at some convenient point at or near Cauirhnawaua with Lake Champlain. The dimensions of said canal shall be such as to admit the passaire of vessels drawini^- twelve feet of water, and the locks shall be of not less diminsions tiian those naiued in the iHveeding Article. And the United States engage to uii;e upon the (iovernmeut of the State of New York, to cause the existing canal from Whitehall, on Lake Clianii)lain, to Albany, to be eiiiarmed, and if necessary, extended. i ' iiizL-ns of the Initeil Sfato may. duriui;' the term ol' years mentioned in Article of this 'rreuty, carry in their vessels caruo and passeny,ers I'rom one Canadiiui port to ler on the u'iciil l;ik('> or River Si. Lawrence, iieciprocally, iidiabitants of Canada, 'its ol Her liritannie .Majc-ty, may. duriim- iiir liki* period, carry in their vessels cargo passengers from one port ot' ihe Cniled States oa the great lakes or River St. eiiee to anotlur oil li.e said lakes or rivir. Citi/.ens of the Uinted States in their I-;, and inlialiitanfs ol Canada, sui)jects of Her Dritaniuc Majesty, in their vessels, during the like term, cany cargo and passengers t'rom any port of the United States Cmada on the Red Rive r or the waters connecting tlierewith, to any other port on itid river or waters coimectins therewith. 1 AiJTicfd': viir. It is agreed tiiat for the lerni of ycai> iiiviitiiMK- 'i in Aiticle XIII of this Treaty, the citizens of the United States siiall enjoy the use ol the W'eliand, the St. Lawrence, and other eanai> in the Donnnion of Canada (includinii- the jiroposed Caughnawaga Canal) on t'iiiis ( I' ('(piality with the inhabitants ot the Dominion of Canada. And that without intert'iiii!'.: with the ri^lii ol'ih" (iovernmeiit of Canada, to impose such toll> on the aiiiresaid Canadian canals ropeetively. as it may thiid< tit, the tolls shall be levied in relation to the mnnhcr of locks on t'aeh canal without any drawback or discrimination, whatever the destination of the ves^cU. or whether one or more canal or canals or part of' a canal hv passed. And it is also agreed, that for the like term of xiars, the inhabitants of Canada shall enjoy the use of the St. Clair Flats Canal, on terms of e(|uality with tin- inhabitants of the L'nited ."^tates, and that the navmatiou of Lake Champlain and of Lake Michii^an. shall be free and open (or the jiiwposes of commerce to the inhabitants of Canada, subject to any laws and regulations of the Unit( d States, or o\ the Slates bordering thereon respectively, not inconsistent with such privilege' of free navii^ation. .And the United States further engage to urire upon the (Jovernments of the States of New \nvk and of .Michiixan, to secure to the iidia'utants of' Canada the use of the f^i'ie, the Whitehall, the Saull Ste. Maiie Canals, and rif any enlarged, or extended, or new canal, or other iiiiproveinent eonneetinn Lake Cham|)lain with the lower waters of the Hudson River, which may he made as contemplated in ,\rticle VI, on terms of eiiuality with the inhabitants of the United States. And it is mutually agreed that full jiower shall be given and allowed to tranship cargo from vessels into canal boats and from canal bouts into vessels at either terminus of every canal. f?3 to Montreal, o as to admit le said canals not less than River shall be y be necessary, And the work nunrv, 1880. before the first ne convenient lid canal shall mid the locks -State of New Albany, to be constructed of rifled ; and the iS'c from Lakt- twelve feet of led in Artich- nadiaii port to ts ol Canada, r vess(!ls cargo or Kiver St. States ill their II their vessels. United States other i)ort on is Treaty, the ^awrencc, and iwaifa Canal) ida, to impose he tolls shall drawback or loic canal or Canada shall idiabitaiits of ke Michigan, iiiada, subject :'riiig thereon of the States e of the Kile, ixied, or new ivaters of the I-* of ('(|uality d to tranship ' terminus of And furtlier, tliat if the use of the Eric and Whitehall, or other canal connecting Lake Chaniplain with the lower waters of the lIml~oii Kiver and of the Sanit Ste. Marie Canal, be not granted to the inliabitaiits ol Canada, on tcnns of equality witli the citizens of the United States as contemplated in tiiis Arlide, then the use of the proposed Caughnawaga Canal by citizens of ihc United States, as above contemplated, sliall be suspended and cease until the nse of the said canals in the United States shall be secuied to the inhabitants of Canada as above contemplated. A]{TICLI<] IX. For the term of years mentionrd in Article I'vllI of this Treaty vessels of all kinds built in llic United States may be purelia'^ed by inluibitant-^ of Canada, subjects of Great Britain, and reui>teied in Canada as Canadian vessels ; and reciprocally, vessels of all kinds built in Camida may be purchased by citizens of the United States, and registered in the United States as United Stales" vissci--. AliTlCl.f: X. A joint Commission shall l)e establislK'd aiui niaintiaiicil iit joint ex[)ensc during the operation of this Treaty I'or advising the election and proper regulation of all lighthouses on the great lakt^s common to both countries, neecsjiary to the security of the shipping thereon. AUTICUE XI. A joint Commission shall also he establi-b((i at joint expense and maintained during the continuanct! of the Triaty, to ])i(oon a- the laws re.piired to carry it into operati passed by the Inijierial Parliament of (heat rritain and by the Parliami 1 of Canada on the one band, and b\ tb.e Congitss of tlie United States lOU lit lies on months Irom AlinCLK XIII. This Treaty siiall take eil'ecl as shall have been \ of the Uominion _. the other. If sueb legislative assent sbi'll not lane been given within the date hen^of, then this Treaty slmll l;c null and void. lUit sncli legislative assent haxina; luen given, this Tn-aty shall !emain in loice lor llic jieiiod of twenty-one years tVom the date at wbieii it shall come ii.lo epeiation, and luitber until the expiration of tinee years after either ol tlu' !l:;h (^)iitraeting Parti'-N -hall liave given notice to the otlar of its wi-li to teiininate tb:' >;;Mie ; cell i^t the '.lii^li ( 'oiitraetini;' Parties being at liberty to i:i\'e such notiee to the otiur ai the mo ol'tlic snid period ot' twenty-one years or at anv time afterward. Airrici, i\. When the ratitieations of this Treiity >hall have lieen e.\ehanged and tin- laws recpiired to carry it into operation shall liave luen pa'- Uniliil Slates, and the ratili( ini(!ns ^hull be exehangeil either at Washington or at LoiuUm within months (mni the date hereof, or earlier, il pos>iMe. [41i2j E ;!i 18" 24 f No. 11. The Karl of Dcrliij to Sir E. T/iornlou. Sir, Foreif/n Office, Juhj '