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I 1 I T •¥■ REPORT OF THE SELECT COMMITTEE or THB (l\mitx of dommene d t|e State of |itto-g0rk, ON TBI RECIPROCITY TREATY, AS TO TRADE BETWEEN THE BRITISH NORTH AMERICAN PROVINCES AND THE UNITED STATES OF AMERICA. The Board of Trade of the City of Montreal, in the early part of the present year, having expressed it3 wish to this Chamber that it would consider and report upon the existing Reciprocity Treaty, under the stipula- tions of which the present commercial intercourse be- tween the British North American Provinces and the United States has been conducted since 1854, the time when it came into operation, this Chamber proceeded, in conformity with such wish, to the consideration of the subject. A select committee was accordingly raised for that purpose, and has been engaged for several months in pursuing the preliminary inquiries necessary to enable it to present the present report. The materials accumulated in such quantities, as to make a proper digestion of them a work of no little diffi- i 4 culty ; but it is hoped it has arrived at such results, as to enable it to present an impartial as well as an intel- ligible view of the important relations which have grown up and expanded for the last ten years between this country and those American Provinces. The first step taken by the committee was to ascer- tain the opinions of the various Boards of Trade in the principal cities most directly interested in the ques- tion ; and accordingly letters of inquiry, prepared un- der the direction of this committee, were addressed by the Secretary of the Chamber to the following Boards : to that of Philadelphia, of Chicago, Detroit, Troy, Bal- timore, Cleveland, Buffalo, Oswego, Albany, Portland, Bath, in Maine, and other principal cities. From these, answers were, in part, duly received. The Board of Trade of Philadelphia replied, that it was unanimously in favor of abrogating the present treaty, believing that the term was " a misnomer," the advantages having hitherto been altogether in favor of Great Britain ; that its own Secretary was engaged by the Treasury Department in collating the statistics of the trade, with the design of furnishing data for the formation of a new treaty that may be just and equit- able to both nations, and that the ensuing session of Congress would be able to undertake a "more favor- able and calm discussion of the subject." This report has only appeared during the past month ; and it was essential for the committee to examine it, in order to arrive at positive conclusions on points mate- rial to the subject. The Board of Trade at Chicago replied, that all its members regarded the matter as one "of great import- I ance," but, as there were " conflicting views respecting the advantages and disadvantages of the treaty," it pro- posed to send a more distinct answer, which should " correctly reflect the views of the Board." The com- mittee having waited for some months for that com- munication, regrets to say that it has not received it ; since an expression of the opinion sought for, from the commercial representatives of one of our greatest and most flourishing lake cities, above all others intimately connected with the Canadian trade, would have had undoubted weight, and have been considered high au- thority. The Board of Trade of the City of Troy replied, by enclosing two resolutions in the following words : " Resolved^ That the Secretary of the Board of Trade of Troy be, and is hereby authorized to communicate with the New- York Chamber of Commerce, in answer to a communication received from such Chamber, in refer- ence to the reciprocity treaty between the United States and Canada. " Resolved furth&r^ That as inhabitants of the State of New- York, and business citizens of Troy, we are opposed to the abrogation of the treaty." This letter was accompanied by a report of a meet- ing of the same Board of Trade held to consider the subject, in consequence of the communication addressed to it by this committee, and an elaborate report of the conclusions to which the Board of Trade had ar- rived. This report contained valuable information, made use of in its proper place. The Board of Trade of Baltimore replied that, in their opinion, the general operations of the treaty have 6 been beneficial to both oountrieg, and they would much regret to see it abrogated. They expressed the opinion that, " some modifications and changes maybe needed, better to adapt it to the requirements of the trade be- tween the two countries, but it appeared to them" that a free exchange with each other of their chief pro- ducts is very desirable, and the mutual concessions granted in the treaty, of the free navigation of the St. Lawrence and Lake Michigan, the use jf canals, and the right of taking fish on the shores bordering on each country, appear to be very important and desirable ; and these privileges, enjoyed for so long a period, could not now be abolished without much inconve- nience, and, perhaps, ill feeling, particularly on the part of the border residents. This statement was ac- companied by the copy of a resolution in the following words : " Resolved^ That the Board of Trade of Baltimore recommends the continuance of the reciprocal treaty between the United States and the British North Amer- ican Provinces, with such modifications only as the present state of trade may seem to require, and having in view the object of increasing, rather than diminish- ing, the free commercial intercourse now existing under the treaty." The Board of Trade of Cleveland acknowledged, through their Secretary, the receipt of the circular ask- ing for its opinion on the subject of the treaty, and appointed a committee to meet and report thereon; but such report has not been yet received. The Board of the Merchants' Exchange in Bath replied, that, in their opinion, so far as the business in- > f terest of the city is concerned, the treaty, as it now stands, is satisfactory. They were not in favor of abro- gating the treaty ; they were not in favor of a new treaty, and were not aware of any disadvantage that the United States labor under in regard to it. No other replies have been received from the other Boards of Trade, to whom the circulars were trans- mitted. The consideration of this subject is not a novelty with this Chamber. As long ago as 1852, it memorial- ized Congress in favor of a Reciprocity Treaty, and after it had gone into operation, again did so, January 3d, 1856, in order to "remove all commercial restrictions on the commerce and navigation of the Canadas and the United States;" and this they proposed to eflfect by admitting into the respective countries the natural pro- ductions and manufactures of both, and to open to their vessels the coasting trade on the intervening waters of the two countries, with " all the advantages that now exist between adjoining States." The Chamber, through that committee, then expressed the opinion that the trade with Canada might be greatly extended, enlarg- ing the sphere of our manufactures and productions, " now chargeable with duty in Canada," and facilitating the navigation of the lakes, by extending to the ves- sels of both like advantages in the coasting trade on the intervening waters of the two countries. This re- port was signed by J. Phillips Ph(enix, Robert Kelly and Moses H. Grinnell. Again, in February, 1859, it memorialized Congress, in the same liberal spirit which had always character- ized its action. 8 It proposed to enlarge the operation8 of the existing Re'^iprocitj Treaty, by removing " all duties and re- strictions on the importations into the United States, of all articles the growth, produce or manufacture of the Canadas, and also to permit all ships and vessels built in Canada to participate on equal terms in the shipping and coasting trade on the interior lakes and waters intervening between the two countries, and for that purpose to open to the free and common use of both, all the water communications, coasts and ports on the aforesaid intervening waters," to take effect whenever the British Government reciprocated by a similar enactment. It was specially recommended that flour and shingles, both being manufactured articles, might be admitted from Canada into the United States free of duty. (This last recommendation had reference to a Treasury decision by Mr. Cobb, which declared shingles a manufactured article, and that American wheat, ground in a Canadian mill, must pay duty when re-imported as flour into the United States.) The report was signed by J. D. P. Ogden, Henry Chauncey, W. S. Griffith, J. H. Read and Royal Phelps. It will thus be seen that the Chamber of Commerce, always governed by the largest views of commercial subjects, and ever a watchful and faithful guardian of the commercial interests of the country at large, was an early, steady and intelligant advocate of the treaty, and even went further than the treaty itself, in propos- ing the opening of the coasting trade to the provin- cials. Your committee have reason to believe that this concession, as twice recommended by the Chamber, at the present time would be met by equally important concessions on the part of the Provinces. ■^ Before the change in the British policy of discrimina- tion with regard to the colonial ports, oflfected by Sir RoBEUT Peel, and the consummation of the Reciprocity Treaty, the direct trade with the Provinces, especially with the Canadas, was of moderate extent and value. That a friendly feeling and a desire for intimate com- mercial relations with that country were always che- rished by the people of this, is a well-known historical fact. When the thirteen colonies separated from the mother country, the Continental Congress invited the Canadians formally on two occasions to join the con- federation, and the articles retained for the Canadas the privilege of becoming members at a future day. When, during the Revolution, expeditions against the English posts on Lake Champlain and against Mon- treal were undertaken, the people of Canada were offi- cially notified that these were a necessity of the war, and no harm was intended to them. But, as the popu- lation was then largely of French origin, it is doubtful whether this friendly feeling was ever fully appreciated. And so, again, during the war of 1812-15, the inva- sions of Canada were a military necessity, not directed against the inhabitants themselves so much as against the power to whom they owed allegiance, and who, with a proprietary right, made their soil a base of offensive operations. This is the fate of all colonial dependencies, that, whether they have any interest in the quarrel or not, they are sure to be compelled to take part in the con- flict, and endure a large share of the devastation of war. And this was one of the commercial results of the American Revolution, that this country was relieved 10 from the political disorders of the old world ; the bat- tles of ambitious princes in Europe could no longer be fought as they had b'^en, on our soil, nor the sol- diers of the colonies be dragged to fight battles against the French, or any other European power, either in Acadia or the islands of the Caribbean Seas. And it may be here entirely in a kindly spirit intimated, that if the confederation, about to be established north of us, could obtain from the Imperial Government a guaranty that it might preserve a strict neutrality, on the breaking out of all future foreign wars, in which it has no interest, it might count on perpetual peace and tranquillity, and uninterrupted commercial relations with the United States. Nor would this measure be a novelty even in their own history. In 1686, with direct reference t"^ maintaining tranquillity between French and Eng. ih. colonies on this continent, a treaty was actually negotiated between James the 2d and Louis XIV., by which neutrality was established and secured for the colonies, notwithstanding any breach between the mother countries in Europe ; and this treaty remained in force until the accession of William III. The wonderful natural configuration of this part of the continent must have suggested, from the very time of its d'scovery, the idea of its becoming a scene of an immense trafiQc at no very distant day. And we know the early explorers were awe-struck by the magnitude and majesty of these great inland waters. According to the rates of European progress, a century or so is but a natural day ; but the Americans i » ' "« ■ 'I 11 reverse all this, and esteem one day as a hundred years •whenever they engage in any great project. These lakes and rivers were for centuries almost the exclu- sive domain of savages, faintly disputed by the appear- ance for the first time, in 1679, of a small sailing vessel, launched by the celebrated French traveller, La Salle ; more boldly contested in 1796, by one small American vessel above the Falls of Niagara, and three Canadian craft, of from 60 to 100 tons each, plying on Lake On- tario. "When they became the property, even in part, of the American people, their importance was soon recognised, and it was foreseen that their future value commercially was in direct proportion to their mag- nitude. But the British Government controlled their great outlet, and half of all their area, with the excep- tion of Lake Michigan, and showed for many long years no disposition toward reciprocity in the use of them, and the territories on both sides the lakes were yet without population, except that of an aboriginal character, and the navigation was confined to sloops and batteaux, en- gaged exclusively in the fur trade. Westward, beyond the Hudson River, the country was a forest, and Upper Canada, to a late period, was a wilderness, from the Ottawa to the Saint Clair. Not until the peace of 1783 were settlements undertaken with any confidence, or pushed with much success. Half a century, however, changed the whole face of the country bordering on the lakes. The great dis- covery of Fulton revolutionized navigation, and, in 1819, an American steamer, the " Walk in the Water," made a successful trip from Buffalo to Mackinaw. In 1826 and 1827, Lake Michigan was first navigated I -I ii ! i li 12 by steamers, and, in 1833, the first trip was made to Chicago. The conception and successful completion of the Erie Canal gave new life to the great North pnd West, and inaugurated the system of internal im- provements which, from that day to this, has never for a moment halted on its march. The railway system, its twin brother, next sserted its power and added its influence to the cause of pro- gress, while the now-appreciated agency of steam rushed forward with the strength of millions of stout arms, to help every useful project, of which the ele- ments were time and labor, to bring men together swiftly, exchange their productions with the least delay, and to make all transportation so certain, so easy and so rapid, as infinitely to increase the value and results of human industry. Previous to this great revolution in modern aJBfairs, and before its influences began to show themselves in the large emigration from Europe, the formation of new Territories and States in the West, the trade with the Canadas was on the smallest scale. But as it in- creased, it necessarily drew after it original views on the subject of commercial interests, and these have ever since sought expression in enactments and trea- ties for the security of their development, whether of protection or enlargement. The treaty of 1783 left England in possession of ex- tensive colonies on this continent, as well as in the West Indies, and their contiguity to our own shores made them objects of interest to our manufacturers and shippers. A brief sketch of the principal consecutive measures ' ■ t » 13 taken by both countries in regard to this trade with the English colonies, which the one country sought to retain for herself and the other desired much to partici- pate in, may not be uninteresting. In that same year, Mr. Pitt, then Chancellor of the Exchequer, intro- duced into the House of Commons a general bill to regulate the trade and intercourse between his coun- try and ours. His prophetic eye saw what was to happen. A new commercial power was about to arise in the West; just as, afterwards, Mr. Canning, in our time, foresaw where a new political power was to arise, and how the old world was to be redressed by the creation of a balance of power in the new. This bill proposed a liberal system of intercourse, and terms of equality between British and American ports, and the details, singularly enough, \vere almost identi- cal with those which were adopted in 1815, and under which our trade with Great Britain is now carried on. With regard to the Colonial trade, he pioposed that the ships and vessels of the citizens of the United States should be admitted into the islands, colonies and plantations of the British Empire, with any merchan- dise or goods of the growth, produce and manufac- tures of the United States, with the liberty to export from those British possessions to the territories of the United States any goods and merchandise whatever ; and they were to be subjected to no more duties or charges than if they were exported by British vessels, manned by British crews. And it further extended the system of drawbacks, exemptions and bounties on merchandise and goods exported from Great Britain to the United States, as *^ 14 were allowed in cases of exportation to the British colonies. Before this bill could be passed, the ministry which had prepared to carry it through was, by one of those political changes not uncommon in English history, compelled to resign, under the pressure of a vote of censure, and give place to the celebrated, but short- lived coalition of Lord North and Charles James Fox. These statesmen, who were no friends of America, ob- jected to the policy of the bill of Mr. Pitt, demolished it at a blow, and substituted therefor an act known as the 22d George L, chapter 1st, which placed the regu- lation of the trade with the United States under the control of the king, or, in other words, of the Privy Council, from whom afterwards emanated so many famous documents, known as Orders in Council. An order, July 2d, 1783, continued by annual acts of Par- liament and further orders in council, until February, 1788, permanently established a prohibitory system in regard to direct trade with the colonies, except in a very few cases. The act of George III., before alluded to, placed the commerce of the United States with the British possessions in Europe on the ordinary footing of com- merce with friendly nations ; but it provided that the trafl&c between the United States and the British col- onies should be exclusively carried on in British bot- toms. Under the act of 1788, the king was authorized to open and close the colonial ports at his pleasure. By one of the Orders in Council, ostensibly aimed at France, vessels laden with French colonial produce, or carrying supplies for any French colony, were declared 15 I % \\ subject to be captured. The neutral powers, among whom the United States were prominent, were of course seriously affected — none more go. Serious difl&culties followed ; and the people of this country, indignant at this order, proposed immediate retaliation, when Mr. Jay was sent to England to settle the alarming difficul- ties. This treaty waa concluded in London in Novem- ber, 1794, but was not ratified by us until August, 1795, as it became the subject of very violent discus- sion both in and out of Congress. The treaty contained one clause which was rejected, in relation to the In- dian tribes within our territory, whom it proposed to leave forever under the jurisdiction : the British Crown. If this had been assented to on our part, it would have made our future acquisition from the sav- ages, of the vast northwestern territory, now the sites of flourishing States, almost impossible. That part of the treaty which related to our colonial trade, restrict- ed it, and placed it under very inconvenient and un- friendly regulations. It was the best, however, that could be got. In 1797 and 1798 countervailing and dis- criminating duties were imposed by act of Parliament, all having the eflect of crippling our trade, followed by an export duty of four per cent, levied on neutral American vessels, as a compensation for the expenses of convoy. In 1801 came the peace of Amiens, and in two years afterwards the war abroad broke out afresh, and the treaty of Mr. Jay, in its commercial stipulations, had expired. In 1805, not only were we unable to retain what commerce we had of a hitherto undisputed char- acter, but still less to obtain further extension in the direction of the colonies, and our ships were every- I 16 where seized, tried and condemned, in direct violation of a principle laid down and acted on by the British Ministry in 1801. This was, " that the produce of an enemy's colony might be imported by a neutral into his own country, and thence re-exported to the mother country of such colony." The consequence was, that the great and sudden dam- age done our commerce again exasperated the people of the United States to the highest degree. All parties joined in demanding redress, and Con- gress, in a series of spirited resolutions, required the President to make the demand. Mr. Jefferson, then in the Executive chair, de- spatched Mr. PiNCKNEY to London, there to co-operate with Mr. Monroe, to settle the difficulties between the two nations ; but, while they were able to adjust the principal differences, they were totally unable to make any arrangement for the prosecution of the trade with the British colonies, and they abandoned the attempt. This treaty was summarily rejected by Mr. Jefferson, without consulting the United States Senate. From that time a war of diplomatic and legislative restrictions commenced, and was carried on with con- siderable severity. In 1807 the embargo was declared ; and this had the desired effect of producing an order from the British Government, authorizing the gover- nors, respectively, of the North American colonies to open their ports to American vessels, which had been excluded from them ever since 1783. The clamors against this measure caused its repeal in March, 1809 ; but, the same day, the non-inter- course bill was passed in its place, with power to the 17 President to revoke it, in case either England or France should revoke their orders in council and decrees in violation of the neutrality rights of the United States. In 1809, Mr. Erskine, the British Minister, appeared at Washington, bearing the olive branch, which Mr. Madison accepted, the former offering the repeal of the offensive orders in council, and the latter issuing a proclamation renewing our former commercial inter- course with England. The British Ministry disavowed the arrangement on their part, and non-intercourse was again proclaimed. Out of this eventually came the declaration of war, founded on the enormous extent of the captures of American vessels — nearly 1,000 in number. The war closed with the Convention of 1815, which, strange to say, was silent on the subject of the en- croachments on our commerce, and the impressment of American seamen — two of the principal causes of the war itself On the other hand, it retained for the British Government the exclusive right to the direct trade with her colonies, and all the advantages of the circuitous voyage, then the only colonial trade permit- ted, that is to say, of carrying goods from Great Britain to the colonies, thence to the United States, thence to Great Britain, a system of which we had unavailingly complained. Mr. Madison, therefore, in his message of 31st De- cember, 1816, called the attention of Congress to this subject, insisting upon the reasonableness of the rule of reciprocity. Congress responded by two acts, vir- tually for the protection of our trade with the British colonies. Nothing coming out of these, two others 2 • 18 were passed on the 18th of April, 1818, and the 15th of May, 1820. The Convention of 1818 related purely to a settle- ment of the Fishery question for the time, more com- pletely and satisfactorily arranged, however, by the Reciprocity Treaty. During the administration of Mr. J. Q. Adams, and the subsequent one of General Jackson, repeated efforts were made to open the colonial trade on grounds of reciprocity . Numerous acts of Parliament, orders in Council, Congressional acts and Presidential proclama- tions again occurred for many years successively, but with little result. To present these in chronological order would require more space than can be permitted in an ordinary report. They are altogether too volum- inous for our purpose, but may be traced in the reports of the Debates of Congress, where the negotiations at- tempted, and the measures adopted, were canvassed at great length. A list of the various treaties, conven- tions and arrangements, however, relating to the sub- ject, is added in an appendix to this report, embracing all necessary for its elucidation. Meantime the direct trade with Canada continued to be carried on under previous conventions, with an occasional relaxation as to certain ports on either side. But the great difficulty still remained unsettled until 1854. This arrangement, after all, was first practically proposed, after innumerable failures on our part to draw it forth, by the British Minister to our Govern- ment, in 1847-8, and at the instance of Canada, and from her desire to establish a free trade v/ith the United 19 States, in certain articles, the natural product of both countries. That province, just before and after the "Union," under the impetus given to the construction of railways n England, began herself to adopt the policy. Her first work was the consuructton of the St. John's Railway, connecting the River St. Lawrence witli Lake Champlain. This went into operation ir 18o7. Several other minor schemes were promoted, but came to little results. The St. Lawrence and At- lantic — its eastern terminus at Portland — was next at- tempted, and finally became a part of tLe Grand Trunk. Tlie first railway in Upper Canada, constructed to be worked by locomotives, was that between Toronto and Bradford, and since that time Canada has, under con- siderable difliculty and pecuniary embarrassment, but with commendable enterprise, constructed 2,100 miles of railway, among which the Great Western, Grand Trunk, Northern, and Buffalo and Lake Huron are the most important. There are in Canada sixteen distinct lines. The expenditure therefor has been one hundred millions of dollars, of which thirty millions were fur- nished by the Government and municipalities. It was soon perceived that, without a large share of American traffic, they could not more than pay their expenses, and it is not too much to say that, without the continuance of the Reciprocity Treaty, neither the railways nor canals of Canada can be considered as prosperous and remunerating works. It therefore be- came obvious to their projectors and friends, as well as to those persons engaged in commerce, that the inter- ests of those railways, as well as those of the province 20 at large, could only be properly secured by a free in- tercourse with the United States. They undoubtedly perceived that the teeming prairies of the West were worth their attention. So, too, with the Canadian canals. These, with the exception of the Rideau Canal, which is rather a mili- tary work than any other, were but the following of the example set in this State by the construction of the Erie and Champlain. The success of the St. Lawrence Canals and the Wel- land has depended chiefly on the northwestern trade and the navigation of the upper lakes. Reciprocity to them was, therefore, an object of high importance, as has been proved by the great and rapid growth of the City of Montreal, which had hitherto possessed a greater historical than commercial reputation. After six years' constant action and solicitation by the Canadians, as well as by the people of the United States on their borders, — after many failures and much diplomatic correspondence, — a reciprocity treaty was negotiated at Washington, a copy of which is to be found in the appendix, and thereupon a bill was passed through one branch of Congress, to carry out the pro- visions of the treaty ; but it would have failed, after all, in the other, but for the parliamentary tactics of Mr. Bayley, a member of Congress from Virginia, who suc- ceeded, by his thorough knowledge of the rules of the House, to get it taken up and passed late in the last day of the session. It was immediately sent to the Senate, and became a law. Among the distinguished men who were engaged in urging the policy of the treaty at various periods of doubt, were Mr. Everett, i li 21 1 Mr. Gushing, General Dix, Mr. Clayton, Mr. Douglas, Mr. Seward, Mr. Andrews, late Consul-Gen oral for Canada, Mr. Webster, Mr. Marcy, and numerous other functionaries. Indeed, the question had always been a prominent one with the Government from its foundation. Every administration in succession had taken it in hand. Every President, since the time of Washington, had referred to it. Congress after Congress had passed acts to countervail the baleful policy of the orders in coun- cil, and proclamations were of great frequency, in order to adapt our system of self-defence to that of exclujive- ness and aggression. When the internal improvements in Canada began to show their value, as well as their necessities, the Eng- lish capitalists interested in them, as well as the Cana- dian, were not slow to see that the restrictive and dis- criminating policy of former years would not do for them. Much anxiety for the formation of a treaty, during several years preceding the year of its consum- mation, was displayed on the part of the Canadians. Lord Elgin, when Governor-General, sent an agent to President Taylor, requesting him to establish a more liberal commercial intercourse with the provinces, with the hope that it would restore peace and prosperity on the northern frontiers, interrupted by the rebellion in Canada. Mr. Clayton, then Secretary of State, imme- diately responded, by appointing Mr. Andrews, a special agent, to visit each of the colonies, with in- structions, which were submitted to Mr. Crampton, the British Minister, in 1849, and which required the ex- amination of fifteen different points of importance to 22 the prosecution of the negotiations. Again, in 1851, the lion. Francis IIincks, the Canadian Minister of Finance, visited Washington with a similar purpose, seconded l)y the efforts of the then British Minister, Sir H. L. BuLWER, who, in a direct letter to Mr. Wedster, proposed to negotiate for the better establishment of commercial intercourse between Canada and the United States, on the distinct ground that the former had "generously, and without stipulations, conceded many commercial advantages" to the latter. Those conces- sions, it may be proper to state, were made in 1847, consisting of a legislative enactment, authorizing the introduction free of duty into Canada, of the natural productions of the United States, whenever the latter should reciprocate by similar enactment. The treaty was finally made and concluded by Lord Elgin and William L. Marcy, Secretary of State, bear- ing date 5th of June, 1854. The ratifications were exchanged on the 9th of September, the same year, by Mr. CuAMrTON, the tlien British Minister, and William L. Marcy, the Secretary of State. The act to carry out the treaty, which had " so difficult and dilatory " a passage, effected finally in August of the same year, provided that when satisfactory evidence was received by the President, that the Imperial Parliament and the Provincial Parliaments of Canada, New-Brunswick, Nova Scotia, Prince Edward's and Newfoundland Islands had passed laws to give effect to the treaty, he should proclaim the immediate operation of its provi- sions. Before the subject, however, came to a final action, it was proposed, on the part of one or more of the ■' 23 proviiiccs, that tlio treaty might go into immcdiato effect with a part, l)cforc tlie legislation of the whole had been perfected. This was declined, upon the strength of the legal opinion which Mr. Cusiiinq, then Attorney-General, gave to the Secretary of State. Finally, however, all the formalities were complied with, and from that time to this the trade between tho British North American provinces has been carried on and increased to its present large proportions. The next consideration which presents itself to the Committee is the practical working of tho treaty itself, and how it has affected the interests of parties who were so solicitous for its adoption. An analysis of the numerous tables at hand enables us to form a very safe opinion. In 1849, the whole value of the imports and ex- ports between Canada and the United States was but $0,000,000 aimually. It had grown very slowly to this figure. In that year the Canadian canals were opened. Up to 1847, the trade of Western Canada was forced down the St. Lawrence by a protective daty on all Canadian agricultural products, American wlieat was then extensively imported into Canada and ground into flour. In 1849, the bonding system was inaugur- ated in the United States, by which Canada could im- port and export in bond ; and the navigation laws of England were also repealed, by which a great advance in our forcii^n trade was obtained. When the Reciprocity Treaty took effect, the trade between Canada and the United States became still more extensive, and, notwithstanding the natural out- lot to the ocean by way of the lakes and the Canadian ^. 24 canals, in fact, the shortest ^oute to Europe by nearly 500 miles, taking the starting point at Chicago, by much the largest part of the exports of Canada West, as in the year 1860, were to the United States, and through the State of New York. Some of the most sagacious merchants of Montreal entertain the opinion, that to get even a fair share of this American business, the Welland and St. Lawrence Canals must be enlarged in lockage, and deepened, and a ship canal constructed to connect the St. Lawrence Eiver and Lake Cham- plain. Ihe following table, compiled directly from the offi- cial Canadian reports, gives the result of the commerce between the two countries, classed under the heads of dutiable and free, with their totals, since 1854. This estimate, carefully prepared for this report, gives larger aggregates than are given by the Secretary of the Treasury. It is proper to state, that the tabular statements recently published by the United States Treasury Department, have, for want of proper distinctions kept up in our custom-houses, been neces- sarily made up from these very Canadian reports. The tables are both for free-trade and goods paying a duty, for the years 1854 to 1863, both inclusive, and they show many interesting facts deserving the careful attention of our legislators. The total balance of trade in our favor, in all goods coming and going, is $46,307,275. On dutiable goods, &c., the balance of trade in our favor is the large sum of $88,884,647. But on free goods alone, the balance of trade is in favor of Canada, to the amount of $42,577,372. . t 26 IMPORTS INTO CANADA TROli THK tJNlTBD STATES. Tear Goods Duty Fret. Good, paying Duty. Total Importi. 1864, |S2,083,'75Y .. $13,449,341 .. $15,583,098 1855, 9,379,204 .. 11,449,472 .. 20,828.676 1856, 9,933,586 .. 12,770,923 .. 22,704,509 1857........ 10,258,221 .. 9,966,430 .. 20,224,651 1858, 7,161,958 .. 8,473,607 .. 15,635,565 1859, 8,556,545 .. 9,036,371 .. 17,59?.916 I860, 8,740,485 .. 8,532,544 .. 17,273,029 1861 12,722,756 .. 8,346,633 .. 21,069,388 1862, 19,044,374 .. 6,128,783 .. 25,173,157 1863, 19,134,966 .. 3,974,396 .. 23,109,362 Ten years,. . $107,015,851 $92,128,500 $199,144,351 EXPORTS FROM CANADA INTO THE UNITED STATES. Tear. Ooodt Duty Free. MannfMture*, Ac. Total Exportt. 1854, $8,387,015 .. $261,987 .. $8,649,002 1855, 16,508,113 .. 229,164 .. 16,737,277 1856, 17,781,542 .. 108,212 ,. 17,979,754 1857, 12,910,980 .. 295,456 .. 13,206,436 1858, 11,656,769 .. 273,325 .. 11,930,094 1859, 13,624,467 .. 297,847 .. 13,922,314 I860, 18,095,399 .. 332,569 .. 18,427,968 1861, 14,096,795 .. 289,632 .. 14,386,427 1862 14,565,846 .. 497,884 .. 15,063,730 1863, 21,966,297 .. 667,777 .. 22,534,07 4 Ten years,. $149,593,223 $3,243,853 $152,837,076 InfavorofU.S 88,884,647 46,307,276 Against U.S.. 42,577,372 .... According to the recent report of the Secretary of the Treasury, the total imports to the British provinces from the United States was, in 1827, . $445,118 and +he exports, . . • 2,830,G74 In 1854, the imports were , • 8,927,560 and the exports, . . • 24,556,860 In 1855, the next year after the treaty, the imports were . . • 15,136,734 26 $27,806,020 24,025,423 31,281,030 and the exports, In 1863, the imports were and the exports to the provinces had reached, The report alluded to by the Secretary of the Treas- ury, in reply to a resolution of the Senate of the United States, March 12, 18G3, gives the details of the com- merce with great minuteness, which it would be im- possible to incorporate into this report without swelling it to an inconvenient size. From it, however, we ex- tract this summary of the whole : That the average annual export trade to Canada for eight fiscal years following the enactment of the Reciprocity Treaty, was ..... $1G,82G,797 Of which, .... 13,493,730 was the value of domestic produce ; and 3,333,058 of the foreign goods. The average for the last four years is $12,933,000 of domestic produce, showing a decline. In the foreign goods export, the average for those eight years shows a decline also, from $6,790,333 in 1854, and $8,769,580 in 1855, to $1,560,397 in 1862, and $1,468,113 in 1863. This latter indicates that the supply of foreign goods for consumption in Canada no longer comes through the United States, as before the treaty, but that advantage of the bonding system is taken, and the report asserts that these bonded goods are chiefly passed through Portland. The imports from Canada are stated to be as follows : The average value for eight years past is $16,643,825 Of which the dutiable, paying an average duty to the United States, was but 467,238 ?m 27 On the contrary, tlie average value of the duty- paying goods entering Canada from the United States, for the eight years, was . . $8,401,481 On comparing the results, it would therefore appear that the average value of duty-poying goods, entering Canada, is . . • • $T,934,243 n-.ore than that of duty-paying goods entcrnig the United States from Canada. The respective values of articles made free by the Reciprocity Treaty, from 1856 to 1861, were twice as great from Canada, or of Canadian produce, as from the United States, or of United States products. In 1862 and 1863, the same report states, that in consequence of the enormous increase in the shipments of wheat, flour and grain to Canada, whether for consumption there or export thence, the values became nearly equal. The total value of the reciprocity or free imports into Canada, for the eight years, is given in the. Secretary's re- port, differing from our special table somewhat, at . • • $73,215,623 and of the imports from Canada into the United States, at . • 115,548,880 makinjx a ^rand total of, $188,764,503 The treaty has, therefore, released from duty $42,333,257 in value of Canadian produce more than of goods the produce of the United States. Of tliis sum about thirteen millions must be deducted as the value of articles imported into the United States free, under the general existing laws, sucli as produce re- turned to the United States, personal effects, coins, 28 trees and shrubs, ores, paintings, and produce of Amer- ican fisheries. It may be well to note in this place that the trade with the British North American provinces, other than Canada, was, in 1851, as follows : Our exports were . and our imports. In 1863, the exports had grown to and the imports. $4,085,783 1,736,651 10,998,505 5,207,424 fully sustaining the statement made in another part of this report, on provincial authority. ■ With regard to the value of imports into Canada passing through the United States under bond, it appears that, in 1855, it was $4,463,774 and in 1863 it was . . . 6,172,483 the highest figures at any time reached while by the River St. Lawrence ; it was, in 1855, .... and in 1863 it was the highest point reached, except in 1861 and 1862, when it was and ..... 12,738,373 16,439,930 16,726,541 17,601,019 The articles of American manufacture principally imported into Canada, and paying duty there, are stated to be chiefly as follows : Cotton manufactures ; hemp do. ; iron do., all other than pig ; leather boots and shoes ; manufactured to- bacco ; glass ware ; earthenware ; house furniture ; In- dia rubber goods ; carriages ; books, paper and station- ery ; jewelry ; hats ; tin manufactures ; marble and 29 stone do.; truni^s and umbrellas; clothing; wood manufactures ; paints and varnish ; copper and brass manufactures; musical instruments ; printing materials, and other unenumerated manufactures, spirits, and beer and ale. « The returns of the Welland Canal, as a means ot transit by American shippers from American ports, is also given. The tonnage passing eastward was as follows : In 1861, to Canadian ports, " United States do., '' 1862, " Canadian ports, » " " United States do., " 1863, " Canadian ports, " United States do., u (( (( 217,892 tons, 427,521 285,192 471,521 298,436 441,862 u The tonnage passing westward was as follows : In 1861, to Canadian ports, ' " United States do., 1862, " Canadian ports, ' " United States do., " 1863, " Canadian ports, " " United States do.. u (( 10,185 tons. 116,240 " 14,908 171,673 67,478 323,244 The business of the St. Lawrence Canals, up and down, between the American ports and Lower Canada, was : In 1861, " 1862, " 1863, 16,537 tons. 22,691 " 22,118 " 30 It will thus be seen that but a small part of the ton- nage which passes through the Welland Canal, finds its way through the St. Lawrence Canals. It is observed that there are two free ports in Cana- da, authorized in 1860 — one at Gaspe Basin, on the St. Lawrence, where goods may be entered for consump- tion or re-exportation, and intended principally for the benefit of the fishermen and lumbermen of that district ; the other is at the Sault Ste. ^Larie, intended for the benefit of the miners. The operations at both ports are very limited. It is proper here to observe, that the subject has also been agitated in Montreal, of mak- ing that city a free port also ; but as this would de- prive Canada of a large part of its revenue from com- merce, there is not much probability of the adop- tion of the suggestion, unless it might serve to divert western purchasers from Portland, Boston and New- York. AVe have thus far seen that the aggregate of this traffic is large, and the so-called balance of trade is in favor of the United States, and that that balance, thus far, maybe estimated at $46,000,000 and upwards. The next question which presents itself for our con- sidorution is this : AVliat, if any, arc the objections to a renewal of tliis treaty ? That there has been con- siderable opposition to its renewal, both in the Britiah provinces and the United States, is well known. The result of careful inquiries on this subject is as follows : Tl ! Upper Province, or Canada West, appears to be in f< '^v of its renewal, and Canada East, with the ex- coptioi. of Montreal, to be indifferent. The leading presses in the maritime provinces de- r 31 mand modifications, in respect to the coasting trade and the right of registry in the American ports. The legislature of Newfoundland, at a recent session, re- solved, that while the treaty had, in some respects, been beneficial to the island and attended with favorable re- sults, yet it would not pledge itself to its uncondi- tional adoption. It also resolved, that negotiations should be opened for the repeal of the bounties on home-cured fish, by the United States, and other modi- fications which would be fiivorable to Newfoundland. The opinion of the people of New-Brunswick, as ex- pressed in their leading journals, is, that the treaty is not as favorable to them as it should be; that the privilege of fishing along the American coast is no equivalent for the concession of that on the banks of Newfoundland, and that the surrender of their exten- sive coasting trade and the privilege of registry have no equivalent. A revision is asked for, accordingly, There are also those of our own citizens, and mem- bers of Congress, who believe that the advantages of the treaty are on the side oFthe British provinces, and that they obtain a large revenue from the importation of our dutiable articles, while we get but very little in that way in return. The reply to this last objection is: the duties which are levied and paid in the provinces are paid by the consumers there, and not by the American pro- ducers or exporters ; that the latter have, therefore, nothing to do with that question. They find a profit in exporting such articles, and if they did not, they would not export them. They are necessities to the people of the provinces, because they do not manufac- ■ 32 ture them for themselves ; and, again, if the treaty were abolished, the provinces might offer such privileges and concessions as would induce western shippers still fur- ther to use their lakes and canals, to the injury of our canals and railways. It is also considered by many, that if heavy duties were levied on all Canadian imports, and the bonding system was done away with, the Cana- dians of both provinces would be compelled to buy exclusively in Quebec and Montreal, by which Bos- ton, Portland and New-York would be materially af- fected. When, a few years ago, the treaty was subjected to a severe ordeal, by a commission appointed by the United States Government, to obtain information, Mr. Hatch, of Buffalo, one of them, reported in favor of its abrogation, and his colleague, Mr. Taylor, against it. At the same time, however, the Boards of Trade of Chicago, Milwaukie, Detroit and Oswego argued in favor of retaining it, with the expression of their opin- ion that it should be made even more liberal in its character. Another curious and very demonstrative fact was stated, that under the treaty, the imports and exports of Quebec had declined nearly one-third, and those of Toronto increased, showing that much of the trade carried on previously with the former city had been transferred to the Canadian lake ports. It is also stated, on very good authority, that the trade of Quebec, ex- clusive of that in lumber, is of little amount compared with that of Montreal and the upper ports. It has also been alleged, in opposition to the treaty, by parties in the State of Maine especially, that it has WWf t '. 33 greatly damaged the lumbering interests in that State. The speculations in lumber lands, which followed the adoption of the treaty, were undoubtedly very dam- aging to the people of that State, as well as those of the Province of New-Brunswick ; but since that time the business has adjusted itself to the present condition of things, while the use of the River St. John's, which heads in the United States, enables the lumber about its sources and tributaries, within our lines, to be car- ried free through the province, and is, so far, a great advantage to that branch of American industry. Be- sides, it is questionable whether what might be gained by shutting out the lumber trade of the provinces, might not more than be balanced by a loss of the present fisheries. On inquir}-, the Committee has learned that the lumber and bark trade of the State of Maine is again on the increase. It may be safely said, that much of the opposition to the treaty in the provinces, inconsiderable as it is, has been actuated by the desire for the construction of the international railway, whose Atlantic terminus is to be at Halifax ; and it is also known that the plan of the new confederation includes this policy. With regard to the duties levied in Canada on American manufactures, Mr. Galt, the present able Minister of Finance of Canada, explained to the Man- chester Board of Commerce, when he was last in Eng- land, that the colony was too poor to bear direct taxation for increasing the revenue, the public debt being sixty millions of dollars, of which twenty had been expended on canals, and as much more on railways; that the duties of 20 and 10 per cent, on manufactures of tex- 3 34 tile fabrics were moderate, and for revenue and not for protection ; and any further increase would be only to keep pace with the increase of the American tariff caused by the war. There have appeared in the Montreal papers, from time to time, very elaborate discussions on this subject. In one of them the following positions are taken : That by the American railway system and the bonded sys- tem, the Canadas obtained great advantages, having constant communication with the ocean during winter, by means of these railways ; and if these were closed, the only thing left would be to resort to the old method of importing and exporting by the St. Lawrence, closed, as it is, for many months in the year. This would be felt particularly by the upper provinces. The abroga- tion of the treaty would also affect the lower provinces. Thus, New-Brunswick, which, in 18G2, sold goods to the United States of the value of $830,000, purchased of actual necessaries $2,000,000, of which tea was a large item, paying the difference in cash, because ours was the cheapest country for her to buy in. Nova Scotia, which has sent already in the present year about 200,000 tons of coal to the United States — with- out which the price of illuminating gas would Lave been doubled in all our principal cities — her whole ex- ports thither being about $2,000,000, purchased, in 1862, goods to the value of $3,800,000, such, too, as she could not readily obtain from England, and ex- ported to the United States $1,800,000, the difference in cash. With regard, also, to the fishery question, it may be said that while, under the old treaty, the Americans 'f, 'I imnsv 35 had tlie general right of fishing on the Grand Banks of Newfoundland, the Gulf of St. Lawrence, and all other places where the fisheries were carried on, never- theless innumerable difficulties arose as to the distance from the coasts where the right could be exercised, and vessels of war were often called to the fishing sta- tions to prevent actual collisions arising out of conflict- ing claims. The convention of 1818, previously referred to, en- larged these privileges by distinctly naming the places where the American fishermen might pursue their avo- cations ; and they were allowed to dry their fish on the southern coast of Newfoundland, and to enter harbors and bays for shelter and supplies, but they were not allowed to cast their lines within three miles of the shore. Out of this last provision difficulties arose from the interpretation given to it by the Provincials, that the line of the right was one to be drawn from one head- land to another. ^.11 these disagreements were settled by the Treaty of lleciprocity, and vessels of war are no longer re- quired on the fishing stations to keep the peace. The abrogation of the treaty would most probably revive all the old misunderstandings, and the fisheries them- selves would be less productive and less convenient than they now are. This is a point to be considered, as bearing directly on the subject of its abrogation. Without the present arrangement our fishermen would be driven out of the Bay of Chaleur and other teeming inlets, which are within the formerly prescribed limits of three miles. ' < 86 This question is one of great importance, and has al- ways been considered such by our most distinguished public men. Mr. Adams said, in 1814, that he would continue the war with England forever rather than give up these sea fisheries ; and the system of bounty has been con- tinued against all opposition, under the conviction that the fisheries not only increased our wealth, but gave us defenders against any maritime foe — defenders whose bravery was invincible, and whose triumphs are the glory of their country. On the whole, then, the Committee has come to the conclusion that the large majority of the people of British North America, as well as of the States most interested in the subject, are in favor of a renewal and modification of the Reciprocity Treaty, in order to re- tain its benefits. But, let a broader view be taken of the subject ; let the precise and particular balance of trade be the one way or the other, there are considerations which this Committee may offer with peculiar propriety for pre- serving the present arrangement in some form or other. The interests, and the promotion of the interests of commerce, have been the constant study of the Chamber from its origin, and the distinguished men who have gone before us have, from first to last, faith- fully performed their duties as merchants and patriots. On all important questions like the present, they have always been heard with attention and respect, and their counsels have had a large and deserved influence at the seat of government in the halls of Congress. We may, at least, say this of our predecessors, if not of our- selves. 87 Commerce is one of the ends of national power, en- tering largely into its composition, being almost synony- mous with civilization, a study worthy of the pro- foundest statesman, and one always a necessity for the consideration and the wise action of legislators. To pro- mote commerce, seems then to be the duty of those who wish prosperity to the human family, and when it comes nearest to freedom of intercourse and equality in its regulations, it is nearest perfection. When the necessities of nations require the levying of duties to any extent, and such necessities are unfor- tunately found to exist every where, the government which imposes them lays the heaviest burthens on its own people. Yet, with every restriction rendered necessary for the support of governments, commerce goes on, ad- justing itself with patience, ingenuity and confidence to the obstacles in its way, and extending itself over all seas and all countries with untiring hope and cease- less energy. If this be so, is there any propriety in our seeking trade even to the very ends of the earth, and rejecting that which lies at our own doors ? We are trading with many foreign nations under old commercial conventions, not at all in the spirit of the age, but we submit to this state of things under many disadvantages, with heavy foreign tariffs on our natu- ral products, as well as those of the mill, the forge, the mine, the workshop ; yet, notwithstanding, we are still able to compete with every rival. Shall we break off our trade with Spain, or England, or France, because they impose heavy duties on our products, or because 1 38 uhey have at times shown an unfriendly spirit towards our free institutions ? If we do not design to discontinue our intercourse with them on either of these accounts, shall we refuse, on that account, to trade with these British provinces? To secure the stability of commerce, treaties, con- ventions and embassies are all employed, and war itself is, in some cases, a sad and indispensable agent ; but, when our purpose can be attained in the cheap and simple way of reciprocity, should we, as the friends of humanity, throw away the opportunity of a peaceful adjustment ? In order to retain the trade of Central America, we maintain diplomatic relations with no less than five small states, neither of whose commerce is as large or as valuable as that we enjoy with the Canadas ; and this last is, in these respects, absolutely inexpensive, and maintained without the necessity of any sach costly ar- rangements. With many European countries, where our commerce is but trifling, we are also in the practice of maintaining expensive legations. This opportunity now offers. Across, and far beyond a remarkable natural chain of lakes and rivers, which seems to be rather a bond than a barrier, there is a country to which we wish well, as our fathers did. Its institutions assimilate to ours, and, if not entirely so, it is its own business. In the largest degree, the popula- tion has with us a common ancestry, and such portions of it as have not, may find among us great numbers of their own language and creed, who have found here their preferred home. These coincidences favor our commercial relations. ■^!H 39 The language of our traffic and its regulations is iden- tical, and an immense advantage in itself. We are the nearest of all neighbors, our products much alike, with the further advantage on our part that we can furnish an immense variety of fabrics which they need, and cannot as yet produce for themselves. Our position on the Atlantic, with our ever-open ports, and our extensive connections with the whole world seaward, enable us to supply them, even in the depth of winter with every useful article, whether from the temperate or tropical climates. In return, we offer them their best and nearest markets — great cities on the lakes, greater cities on the ocean, where capital is always ready for the purchase of their products. In this they have an advantage which is not begrudged them. While Montreal, the greatest town in Canada, is but in itself a port of limited power, Boston and New-York could, at any time, absorb in a day, if necessary, all the surplus produce of the two provinces. Certainly, such customers are not ensily found ^elsewhere on this conti- nent. Looking at these lakes— the Mediterranean of the North — so ingeniously connected by the enterprise of man, that they have become almost one, and noticing how far into the interior their cheap and abundant na- vigation extends, it would seem like shutting our eyes to the gifts of Providence, bestowed in this magnificent and useful form, if, by any short-sighted or narrow policy, we should close them against further progress. It would seem the part of extreme folly, if, after con- structing so many iron paths to these reservoirs, which collect from every bay and inlet on their shores the 40 1? I materials for inland distribution or foreign consump- tion, we shall close them now. At some future day the population of the provinces will be large, that of Canada being at present not equal to that of the State of New- York. When the confed- eration is established, the total number will be large enough to make it respectable among the nations, and the lakes must, from the nature of things, by their posi- tion and capacity, be the seat of a great internal com- merce. It is clearly the interest, if it is not the destiny, of the people who are to inhabit their northern and southern, their eastern and western shores, to be on the best terms with each other. The idea of those peaceful waters ever again becoming the scene of naval combats, should not be entertained, and the surest way to prevent its realization, and to save the millions otherwise necessary for their defence, is to encourage reciprocity in trade, with the largest practicable range and scope compatible with the actual necessities of Government. We certainly may point to the advantages of free- trade am.ong ourselves. It is ascertained that commo- dities are annually exchanged between the East and the West, chiefly by the restricted transportation force of railways, to the extent of hundreds of millions of dol- lars. Duties on these articles, levied by each State on their transit, would render this interchange almost im- practicable. Considering the propinquity of the British provinces, it is evident that their nearness might do as much for them, under certain contingencies, as the United States have done for each other. The nearer they approach 41 to our own internal system of trade, the better it will be for them. The great western States of Wisconsin, Illinois, Michi- gan and Ohio are specially desirous of maintaining friend- ly relations with the Canadas. New-York, by its Erie and Champlain Canals, has done for Canada more, in some respects, than Canada has ever been able to do for her- self The lake ports have, in consequence, also become great cities. Chicago, at the head of lake navigation, in twenty-seven years, has grown from a city of 4,170 to 169,372, increasing hitherto at the rate of 264 per cent. The Board of Trade of that city's report for the present year, gives the numbers and tonnage of the vessels plying between it and the lake ports, as follows, viz. : Side-wheel steamers, Propellers, Barks, Brigs, Schooners, "^^^ Totals, "^ 223,827^ But even this large tonnage, which Chicago employs in i -, own particular trade, is not one half of the whole Aff^e- .can fleet upon the lakes. In 1862 it consisted of 66 side-wheel steamers ; 122 propellers; 132 tugs; 60 barks ; 75 brigs ; 908 schooners— -1,363 vessels in all, or 361,997 tons, valued at $11,334,100, while the Ca- Ton*. 5 3,315 68 37,535 92 52,193 49 15,190 400 115,82'7 I? 1 1 M^ I 42 nadian tonnage was 88,896 tons, in 367 vessels—the steamers and propellers being one-third only of the number of similar American craft. If we add, how- ever, the tonnage enrolled both in the lake and canal trade, as given, in the aggregate, in the recent report of the Secretary of the Treasury, without discrimina- tion as to the character of the craft, the whole amount for 1863 is 611,398 tons. Milwaukie is another of these lake cities, which, in 1850, had a population of 20 0"i, and now has more than 45,619, increasing at the r,„. of 127 per cent, in the decade. In 1862 the imports into Milwaukie from Canada were but $4,400, of which $3,000 was in horses, while the exports to Canada in that year were of the value of $2,500,000, $1,600,000 being carried in American bottoms. Detroit, which, in 1850, had a population of 21,019, in 1860 had increased to 45,619, at the rate of 117 per cent. Cleveland, in 1850, numbered 17,034; in 1860, 43,417 ; having increased at the rate of 154 per cent. Buffalo, in the first-named year, with the exclusive advantage of being at the head of canal navigation, contained 42,261 inhabitants, and in 1860, 81,129, the rate of increase having been 91 per cent., much less, it will be perceived, than that of the cities already mentioned. From Detroit, Milwaukie, Chicago and Cleveland ves- sels have repeatedly made foreign voyages ; and regu- larly every year, for some years past, a Norwegian bai'k m akes its appearanc at the wharves of Chicago, and 43 , emigrants arrive in it for a flourishing colony of Nor- wegians in its neighborhood. Nor is it occasional only, for, since 1856, 43 vessels cleared from Chicago, De- troit and Cleveland for England, Spain, Hamburg, Nor- way, Scotland and Ireland, of 15,100 tons ; aijd 31 re- turned, of the tonnage of 11,260 tons — the difference being in the amount sold in foreign ports. The phi- losophic observer, in all this, sees the wondrous differ- ence between men of the new world and the old in the disposition of their material forces, the rapidity of their movement, and the success of their application. Chi- cago, an unknown place only one generation since, is now a larger city than Marseilles, the third in size of France, and having, at the last published census, only 146,239 inhabitants, though it has had for centuries the trade of the Mediterranean at its command, and has been a commercial town for more than a thousand years. Genoa, the superb, as it is proudly styled by the Italians, situated on a part of the same great waters, and long famous for its port, has but 115,257 inhabi- tants; Trieste but 90,000; and Barcelona, a Spanish port on the Mediterranean, celebrated, even in the middle ages, for its commerce, and the most populous of all the cities on that sea, notwithstanding its great anti- quity, contains, according to some accounts, but 70,000 more inhabitants than Chicago, and, according to others, not so many, though the latter is yet in its infancy. It is a singular and cliaracteristic circumstance that, while a large body of scientific Europeans have recently turned their attention to the discovery and description of submerged and sunken towns and villages, in the lakes and on the coasts of Europe, finding the most in- 44 %'• I fi tense satisfaction in their researches after these relics of past barbarity and wretchedness, we in this country have our attention more agreeably directed to the great, prosperous and teeming cities rising up everywhere on the shores of our beautiful inland waters, full of life and happiness, with ships, and brigs, and steamers be- longing to them, and in the aggregate of more than hundreds of thousands of tons. And here the Committee cannot help contrasting American progress with the dull and halting pace of the old world. While Europe and Asia look back on their antiquity with great complacency, resting on that their principal claims to veneration, (with the exception of Russia, perhaps,) they Jiave no future. That is unquestiona- bly left for this country and this people almost ex- clusively to occupy. Their glory, their wealth, their power have culminated. Our zenith is not yet at- tained. It would seem as if the Great Ruler of events, in opening this continent for a new race of men, with new interests and larger scope for civilization, had offered to humanity and progress their last and greatest oppor- tunity ; and it is devoutly hoped that, notwithstanding the temporary interruption of these grand designs by a wicked and causeless rebellion, they will not be over- thrown. It appears, therefore, to the Committee, that any measures which should in the least jeopard the pro- gress of these lake cities, which have greatly advanced since 1854, should be regarded with extreme caution. But there is another view of this subject, and, per- haps, as important. An abrogation of the Reciprocity 45 Treaty may involve the loss of the use of the Welland and St. Lawrence Canals, or, at least, under some con- tingencies, make it costly, by the imposition of such discriminating tolls as to compel the American lake bottoms to seek the relief of colonial registry. If the reciprocity arrangement entirely falls, we may expect the whole advantage gained from the free navigation of the St. Lawrence will fall with it. In this case, the pro- ducers in the West, the great agricultural interests there, will be excluded from a natural and cheap out- let they now possess, and be driven entirely to rely on our canals, which, great and magnificent as they are, are declared to be choked up with business already, and require enlargement, at an enormous expense, to do the transportation pressed upon them. If the New- York canals are already worked up to their capacity, then it is obviously beneficial to us to retain any other channels of transit that may be within our reach ; and it is for the interest, as it is the right of the cereal and other crop producers in the West, to have, not only a domestic market, but a foreign one near their own boundaries, which costs nothing but an intelligent appre- ciation, and a proper commercial use of them. Summing up the whole of the facts and opinions briefly represented in this report, the results appear to be these : 1. That our trade with the British provinces, even after it was permitted, was formerly conducted under great disadvantages, owing to the restrictive system adopted by the English Government, to the discomfort and injury of the people of the United States, as well as of Canada. 46 I 2. That by just reprisals on our part, and also by the necessities which arose out of the construction of the internal improvements in the Canadas, the British Gov- ernment relaxed its system and opened its ports to our trade, which thereupon swelled to twenty and a half millions of dollars with the provinces. 3. That on the adoption of the reciprocity system, in 1854, it advanced with still more rapid strides, as the tables clearly demonstrate. 4. That the objections to the treaty are without any solid basis, or are, or may be, compensated for in va- rious ways. 5. That the additional duties laid on our manufac- tured imports into Canada are still moderate, and are for revenue purposes only; and that, with our own presen- high tariff, we are the last persons who have a right to complain of any similar procedure ; and that, notwith- standing the provincial duties, our manufacturers find a large outlet in that direction. 6. That the debenture system, as mainly effected, in 1847, by the untiring exertions of J. Phillips Phcenix in Congress, a most worthy and able member of this Chamber, has been of immense service to our interior lines of communication, canals and railways ; and is an essential aid to the other commerce of the country by sea, and should not be repealed. 7. Tliat while in some details the treaty may be improved, yet there is enough of advantage in it to have it preserved in its essential points, with but a few modifications. 8. That to throw away the existing commerce we possess under the treaty, which, in the aggregate since 47 1854, amounts to upwards of $300,000,000, is to ignore the existence of a great country on our borders, our commerce with which is more secure from maritime dangers than any other we possess ; and to retire from the full use of the great lakes and rivers emptying into the Gulf of St. Lawrence, their natural outlet, would be an act of very doubtful policy, if not positive injury. 9. That whatever smuggling now exists would be increased by a more restrictive system, which would require the maintenance of an expensive naval force. 10. That, as the people of the Canadian provinces have shown an anxiety to retain their commercial in- tercourse with this country, as evidenced by the acts of their agents, their merchants and the managers of their great lines of railways, deriving their largest support from American production, and as they are willing to make further concessions on their part, in return for concessions on ours, it is our policy, as well as our duty, to meet them in a corresponding spirit. The Committee cannot, therefore, but recommend the renewal of the Reciprocity Treaty, with such just and liberal modifications as may render it still more advantageous to the parties in interest. The Chamber has, on two former occasions, expressed itself in favor of enlarging its stipulations, so that the provinces may have the privilege of registry and the coasting trade, for which, perhaps, the extension of the free list to our manufactures might be returned as an equivalent. The Committee, therefore, conclude, that the policy hitherto recommended by this Chamber, in relation to 48 this question, should be maintained, being founded on sound commercial principles, and being conducive to the happiness and prosperity of the parties in interest. All which is respectfully submitted. S. De Witt Bloodgood, Richard P. Buck, Prosper M. Wetmore, Walter S. Griffith. Kew-York, December 21, 1864 m Extract from the Proceedings of the Chamber of Commerce, at a Meet- ing held January 5th, 1865. Mr. S. Dk Witt Bloot^oood, on bobalf of the Committee to con- sidcr the Reciprocity Treaty between the United States and Canada, submitted a written report, which was laid upon the table, and it was ordered that it be printed for the use of the members, and that it be considered at a special meeting of the Chamber, on Thursday, the 19th day of January, instant. Extract from the Proceedings of the Chamber of Commerce, at a Spe^ cial Meeting, held January 19th, 1865. Mr. S. Db Witt Bloodgood, Chairman of the Committee on the Reciprocity Treaty with Canada, stated that the report, which was voluminous, was still in the hands of the printer, but that he had hopes that it would be ready for the next regular meeting. The President stated that further consideration of the subject Avould therefore, be postponed. Attest, John Austin Stkvkns, Jr., Secretary. 49 3n to it. APPENDIX. RECirROCITY TREATY BETWEEN THE UNITED STATES AND GREAT BRITAIN. Hku Majesty, the Queen of Great Britain, being equally de- sirous with the Government of the United States to avoid fur- ther misunderstanding between their respective subjects and citizens, in recrard to the extent of the right of fishing on the coasts of British North America, secured to each by Article I. of a Convention be- tween the United States and Great Britain, signed at London on the 20th day of October, 1818, and being also desirous to regulate the commer'ce and navigation between their respective territories and people, and more especially between Her Majesty's possessions m North America and the United States, in such manner as to render the same reciprocally beneficial and satisfactory, have rcBpectively named Plenipotentiaries to confer and agree thereupon, that is to say : Her Majesty, the Queen of the United Kingdom of Great Britain and Ireland, James, Earl of Elgin and Kincardine, Lord Bruce and Elgin a Beer of the United Kingdom, Knight of the Most Ancient and Most Noble Order of the Thistle, and Governor-General in and over all Her Britannic Majesty's BroTinccs on the Contment of ^orth America, and in and over the Island of Prince Edward ; and the Presi- dent of the United States of America, William L. Makct, Sccre ary of State of the United States, who, after having communicated to each other their respective full powers, found in good and due form, have agreed upon the following Articles : ARTICLB I. It is agreed by the high contracting parties, that in addition to the liberty secured to the United States fishermen by the above men- tioned Convention of October 20, 1818, of taking, curing and drying fish on certain coasts of the British North American Colonies therein defined, the inhabitants of the United States shall have, in common A I 4 -}■ 50 ^vitli 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, harbors and creeks of Canada, New-Iininswick, Nova Scotia, Prince Edward's Island, and of the several islands thereunto adjacent, without being restricted to any distance from the shore; with per- mission to land upon the coasts and shores of those Colonics and the islands thereof, and also upon the ^fagdalen 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 occupancy for the same purpose. It is understood that the above mentioned liberty applies solely to the sea fishery, and that the salmon and &had fisheries, and all fish- eries in rivers, and the mouths of rivers, are hereby reserved ex- clusively for British fishermen. And it is further agreed, that in order to prevent or settle any dis- putes 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 contracting 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 they will impartially and carefully examine and decide, to the best of their judgtnont, and according to justice and equity, without fear, favor or affection to their own country, upon all such places as are intended to bo reserved and excluded from the common liberty of fishing under this and the next succeeding Article; and such declaration shall be entered on the 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 they may themselves differ in opinion. If they should not be able to agree upon the name of such third person, they shall each name a person, and it shall be determined by lot which of the two persons so named shall be the arbitrator or umpire in cases of differ- erence or disagreement between the Commissioners. The person so to be chosen to be arbitrator or umpire shall, before proceeding to act as such in any case, make and subscribe a solemn declaration, in a form similar to that which shall already have been made and subscribed by the Commissioners, which shall be entered on the record of their pro- i.ih of in tho Icotia, jioent, pcr- the rposo 61 cccdings. In tho event of the death, absence or incapacity of cither of the Commissioners, of the arbitrator or umpire, or of their or his omitting', declining or ceasing to act as such Commissioner, arbi- trator or umpire, anotlicr and ditForont person sliall be appointed or named as aforesaid to act as such Commissioner, arbitrator 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 tho coasts of tho North American Trovinces and of tho United States embraced within the provisions of the first and second Articles of this treaty, and shall designate the places reserved by tho said Articles from the common right of fishinc therein. The decision of the Commissioners and of the arbitrator or umpire shall bo 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 tho Cummissioiiors conjointly, or of the arbitrator or umpire, as the ease may be, as absolutely final and concl sivc in such case decided upon by them or him, respectively. ARTICLE II. It is agreed by the high contracting parties that British subjects shall have, in common with the citizens of the United States, tho lib- erty to take fish of every kind, except shell-fish, on tho eastern sea- coasts and shores of the United States, north of the 30th parallel of north latitude, and on the shores of the several islands thereunto adjacent, and in the bays, harbors and creeks of the said sea-coasts and shores of tho United States and of the said islands, without beinji restricted to any distance from the shore, with permission to land upon the said coasts of the United States and of the islands afore- said, for the purpose of drying their nets and curing their fish ; pro- vided, tiiat in so doing they do not interfere with the rights of private property, or with the fishermen of tho United States in tho peaceable use of any part of tho said coasts in their occupancy for the same purpose. It is understood that the above mentioned liberty applies solely to the sea fishery, and that salmon and shad fisheries, and all fisheries in rivers and mouths of rivers are hereby reserved exclusivel}' for fisher- men of the United States. : 1 i 1 ! f 9% i ;i ¥ 52 ABTICLS m. It is agreed that the Articles enumerated in the Schedule hereunto annexed, being the growth and produce of the aforesaid British Col- onies or of the ITnited States, shall be admitted into each country respectively free of duty : SCBEDULS. Grain, flour and breadstuffs of all kinds. Animals of all kinds. Fresh smoked and salted meats. Cotton-wool, seeds or vegetables. Undried fruits, dried fruits. Fish of all kinds. Products of fish and all olLer creatures living in the water. Poultry, eggs. Hides, furs, skins or tails undressed. Stone or marble, in its crude or unwrought state. Slate. Butter, cheese, tallow. Lard, horns, manures. Ores of metals of all kinds. Coal. Pitch, tar, turpentine, ashes. Timber and lumber of all kinds, round, hewed, sawed, unmauufat lured in whole or in part. Firewood. Plants, shrubs and trees. Pelts, wool. Fish-oil. Kice, broom com and bark. Gypsum, ground or unground. Hewn or wrought, or unwrought burr or grindstones. Dye-stuffs. Flax, hemp and tow, unmanufactured. Unmanufactured tobacco. Rags, ARTICLE IV. It is agreed that the citizens and inhabitants of the United States shall have the right to navigate the liiver St. Lawrence and the cuLals 53 eunto Col- untn- ured .tes als in Canada, used as the means of communicating between the great lakes and the Atlantic Ocean, with their vessels, boats an d crafts, as fully and freely as the subjects of Her Britannic Majesty, subject only to the same tolls and other assessments as now are or may hereafter be exacted of Her Majesty's said subjects ; it being understood, however, that the British Government retains the right of suspending this privi- lege on giving due notice thereof to the Government of the United States. 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 suspending, 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 naviga- tion of the River St. Lawrence or the canals may continue. It is further agreed, that British subjects shall have the right freely to navigate Lake Michigan with their vessels, boats and crafts, so long as the privilege of navigating the River 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 Her Britannic Ma- jesty 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 River 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. 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 Par- liament of Great Britain, and by the Provincial Parliame its of those of the British North American Colonies which are affected by this treaty on the one hand, and by the Congress of the United States on the other. Such assent havinfj 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 2^ per cent. Free. 63 *• 1863. 1884. Free 2^ per cent. Nitre, or Saltpetre, • ^^ _^ ^^^^^ g^,, ^^r lb. Nuts, of all kinds, ^^ ^^^ ^^^^^ j^ic. per lb. Nutmegs, • • • • p Yicc. Natural History, specimens of, o. . . . Free. IH P" cent. Oalcum, ,* " •* \i • Oil«, cocoa nut, pine and V^^^^-J^^' r.^e. crude, or rectified, or natural state, . 1 ce- ^ ^ ^^^ ^^^^^ Oil Cake, or Linseed Cake, ^^^^' ^^^^^ Ordnance Stores, ^^^^^' ^^^^^ Ores of all kinds of metals, .......... • ^^^^^ Osier,orWillow,forbasket-makers'use, Free. 1 1 30 per cent. 12^ per cent. Patent Medicines, ^^ ^^^ ^^^^^ ^gj- per cent. Pepper, ground, y ^^ ^^^ ^^^^_ ^l per cent. Phosphorus, 30 per cent. 12A- per cent. Pimento, ground, • . • • • ••••••■ ' ^^^ p^ee. Plaster of Paris, ground and calcined, 10 per ^^^^ ^^^ ^^^ ^^^^^ Porter, * ! " V,* v^op Free. Pig Iron, Pi. Lead, and F.g Copper,. . F™. ^^^^ Pitch and Tar, Philosophical Instruments and Appa- ^^^^^ ^^^^^ ratus Globes, ^,^^^* Yvoq. Plants, Shrubs and Trees, ^^ _ ^^^^^ o| per cent. Prussiate of Potash, • • - » ^^^^^ Printing Ink and Printing Presses,. . . 1 ree. Provisions for Army, or Navy, or In- ^^^^ ^^^^_ dian nations, ^^ _ ^^^^^ ^ per cent. Printing Paper, R. ... Free. Free. ^^S^,'--"' 10 per cent. 2^ per cent. Rail-Road Bars, ^^ ^^^^_ ^5^ p^, cent. Red Lead, dry, ^ ft 64 1863. 1854. Resin and Rosin, Free. Free. Rice, including Rico Flour, Free. Free. Rum, 100 per cent. 35c. per gal. S. ^- Sails, ready made 10 per cent. Sago Flour, Free. Sail Cloth, Nos. 1 to 6, Free. Sal Soda, Free. Sal Ammoniac, Free. Salt, Free. Seeds, for agricultural, horticultural, or manufacturing purposes only, Free, Ships' Blocks, Free. Ships' Water Casks, in use, Free. Shackles, Free. Sheaves, Free. Shellac, 20 per cent. Signal Lamps, Free. Silk Hat Felts, Free. Silk Twist, for hats, boots and shoes,.. 10 per cent. Slate from United States, Free. Snuff, 30 per cent. Soda Ash, Free. Soap, 30 per cent. Spelter, or Zinc, in sheets, 10 per cent. Spelter, in block or pig, Free. Specimens of Natural History, Mineral- ogy or Botany, . , Free. Spices, ground, 30 per cent. Spirits and Strong Waters, including Spirits of Wine and Alcohol, not being Whiskey, 100 per cent. Spirits of Turpentine, 10 per cent. Starch, 30 per cent. 2^ per cent. 12^ per cent. Free. 12^ per cent. 2^ per cent. Free. Free. 24- per cent. Free. 2^ per cent. 2^ per cent. 2^ per cent. 12^ per cent. 12^- per cent. 12|^ per cent. 2^ per cent. 7c. per lb. Free. ] 2^ per cent. 2^ per cent. 2-k per cent. Free. 5c. per lb. 50c. per gal. Free, 12^ per cent. ■^'i'Kd'M, ;•.;*•'».,»«» MMH ( 65 1863. Statues, Busts, and cast^ of vnnrblo, lirnnzc, alabaster, or plaster of Paris ; Paintings and Drawings, as works of art ; Specimons of Sculpture ; Cabi- net of Coins ; Medals, Gems, and all Collections of Antiquities, Fi'co. Steel, wrought or cast, 10 per cent. Stereotype Blocks, for printing pur- poses, • • • • 1' '**^°* Stone, unwrouglit, ^''cc Straw, Tuscan, Urass, and Fancy Plaits, 10 per cent. Sugar, refined, 3c. per lb., and 15 per cent. Ditto, raw, 2c. per lb., and 10 per cent. Sulphur, or Brimstone, I'rcc. Tallow, l'^''cc- Tcf; Ic. per lb., and 15 per cent. Tampico, Free. Teasels, Free. Tiles, drain, for agricultural purposes,. Free. Timber and Lumber of all kinds, round, hewed, sawed, unmanufac- tured, in whole or in part, Free. Tin, granulated or bar, 10 per cent. Tin and Zinc, or Spelter, in blocks or pigs, ^ *'^*^* Tinned Plates 10 per cent. Tobacco, manufactured, other than Cigars, 30 percent. Tobacco, unmanufiictured, - . . • • Free. Tow, undressed, Free. Travelling Trucks, Free. Trenails, ^'I'^c Tubes and Piping, of copper, brass or iron, when drawn, 10 per cent. Turpentine, spirits of, y 10 pcr cent. 1854. Free. 2.V per coi.'t. Free. Free. 1-J,V per cent. !S2.-10 p. fwt. §1.30 p. cwt. Free. Free. 3c. pcr lb. 12i- per cent. Free. 2.^ per cent. Free. 2^ per cent. 2 A- per cent. 12.V per cent. l|c. per lb. l|c. per lb. Free. 12|- per cent. Free. 12^ per cent. Free. 66 1863. Turpentine, other than spirits of tur- pentine, . , Free. Type Metal, in blocKS or pigs, Free. V. Varnish, bright and black, for ship- builders, other than copal, carriage, shellac, mastic or japan, Free. Vitriol 20 per cent. Vegetables, not elsewhere specified,. . Free. Vehicles of Travellers, except those of hawkers or pedlars, Free. Vinegar, 20 per cent. w. Walnuts, 20 per cent. Water Lime, unground, Free. Wearing Apparel and Clothing, made by hand and sewing-machine, 25 percent. Wine, of all kinds, in wood, 20 per cent. Ditto, in quarts, 20 per cent. Ditto, in pints, 20 per cent. Wine, Spirits, and fermented liquors of all kinds, imported for Ofiicers' Mess, and the packages containing the same, Free. Whiskey, proof, , . 25c. per gal. Wire, iron, 10 per cent. Wood for Hoops, wb^m not notched, . . Free. Woods, of all kinds, Free. Wool, Free. z. Zinc, in sheets, 10 per cent. 1854. Free. Free. Free. 2^ per cent. Free. Free. 6c. per gal. l§c. per lb. Free, 12^- per cent. 20c. per gal. $1.50 p. doz. 75c. per doz. Free. 8c. per gal. 2|- per cent. 12^ per cent. Free. Free. 2^ per cent. % 67 CANADIAN CUSTOMS' ACT. bt. nt. il. oz. )Z. t. An Act further to amend the Act respecting Duties of Customs and the Collection there-f, and to alter the Duties on certain goods. [Assented to 30/^ June, 1864.] In amendment of chapter seventeen of the Consolidated Statutes of Canada, entitled " An Act respecting Duties of Customs, and the Collection thereof," Iler Majesty, by and with the advice and consent of the Legislative Council and Assembly of Canada, enacts as follows : 1. In addition to the ad valorem duties of customs payable thereon, under any act now in force, there shall be imposed, levied and col- lected on gin, rum, cordials, spirits of wine and alcohol, not being whiskey or brandy, a specific duty of customs of fifteen cents for every gallon wine measure thereof, of the strength of proof by Sykes' hy- drometer, and so in proportion for any greater strength or any less quantity than a gallon. 2. In addition to *ho specific duty of customs payable thereon, under any act now in force, there shall be imposed, levied and col- lected on whiskey, a further specific duty of customs of fifteen cents for every gallon wine measure thereof, of the strength of proof by Syiics' hydrometer, and so in proportion for any greater strength or any less quantity than a gallon. 3. In addition to the ad valorem duty o" customs payable thereon, under any act now in force, there shall be imposed, levied and col- lected on brandy, a specific duty of customs of fifteen cents for every gallon wine measure thereof, of the strength of proof by Sykes' hy- drometer, and so in proportion for any greater strength or any less quantity than a gallon. 4. The duties imposed by the foregoing sections shall be held to have come into force on the 11th day of May, in the present year, one thousand eight hundred and sixty-four, and shall be, and shall be held to have been payable on all such goods as aforesaid im- ported into this province, or taken out of warehouse for consump- tion therein, upon or after the said day. 5. In addition to the ad valorem duty of customs payable thereon* under any act now in force, there shall be imposed, levied and col- i'l ' 68 lected on the several descriptions of manufactured tobacco Lereiuaf- ter mentioned, the specific duties of customs following, that is to say : $ cU- On cavendish, plug, twist and all descriptions of manufactured tobacco, sweetened or not sweetened, except those hereinaf- ter specially mentioned and otherwise charged with duty, for every pound, 10 On common cut smoking tobacco [iahac /rise) made from un- prcsscd tobacco, whether from the leaf and stems together or exclusively from stems ; and on shorts or other refuse sepa- rated from fine cut tobacco in the process of manufacture, for every pound, 05 On sinift" and snuff flour, manufactured from tobacco ground dry, for every pound, 10 C)n tobacco, fine cut, manufactured to be sold or delivered loose, in bulk or in packages, papers, wrappers or boxes, for every pound, 16 C»n Canadian twist, otherwise called Tabac blanc en torquette, being the unpressed leaf rolled and twisted, for every pound, 02 On every pound of snuff, damp, moist or pickled, COS On cigars, per 1,000, according to the value thereof, as here- under, viz. : Value not over $10 per 1,000, 2 00 " over SlO and not over $20, 3 00 " » $20, «* $40 4 00 " «' $40, 6 00 And the said duties shall be held to have come into force on the lirst day of June of the present year, one thousand eight hundred and sixty-four, and shall be, and shall be held to have been payable on all :^uch goods as aforesaid, imported into this province or taken out of warehouse for consumption therein, upon or after the said day. C. Every package or parcel of raw or manufactured tobacco of cigars or snuff, imported or brought into this province after the pass- ing of this act, whether entered at the Custom-IIouse for warehouse or for consumption, shall have attached thereto, by the proper oflicer of customs, such stamp as may be directed by regulation established by the Minister of Finance. T. The following articles, heretofore classed as cordials, and charge- I i: af- [0 69 able as such with the duties of customs imposed on cordials, that is to say : ginger wine, orange wine, lemon wine, gooseberry Avine^ strawberry wine, raspberry wine, elder wine and currant wine, shall, after the passing of this act, cease to be rated and chargeable with duty as cordials, and shall be rated and chargeable with an ad va- lorem duty of 20 per cent, as unenumerated articles. 8. In addition to the duties of customs now payable on the follow- ing articles, there shall be imposed, levied and collected thereon the following specific duties of customs, that is to say : On vinegar, 4 cents per gallon. On refined petroleum, 5 " " On naphtha, 5 " " 9. The present ad valorem duties of customs upon the following articles are hereby repealed, and the following specific duties of cus- toms shall be imposed, levied and collected thereon, that is to say : On benzoic, 15 cents per gallon. On crude petroleum, 3 " *' 10. Section eighteen of chapter thirty-one of the Consolidated Statutes of Canada, entitled "An Act respecting the Provincial Post- Ofiice," is hereby repealed. 11. This act shall be construed as one act with the act herein first above cited and hereby amended ; all the provisions whereof, and of the acts amending it now in force, shall apply to the duties imposed bv this act. I I ■ 70 IMPORTS AND EXPORTS. Statement of the Trade between the United States and specified distant Foreign Countries, contrasted with that between the United States and Canada^ in the year ending June 50th, 1861. ExporUfrom Imports into Total. Countries. United States. United States. Exchange. Holland, $3,719,373 .. |2,811,334 .. $6,530,707 Spain, 1,841,025 .. 3,259,361 .. 5,100,386 Portugal, 283,866 .. 176,163 .. 460,019 Austria 308,527 .. 488,677 .. '797,194 Turkey, 604,240 . . 799,800 . . 1,404,040 China, 6,917,427 .. 11,351,719 .. 18,269,146 Central America, 8V,461 .. 310,769 .. 398,230 New-Granada, 1,586,992 .. 4,455,234 ,. 6,042,226 Venezuela," 1,220,786 .. 2,999,949 .. 4,220,735 Brazil, 5,0£'3,217 .. 18,100,456 .. 23,125,673 Buenos Ayrcs, 1,166,625 .. 3,200,836 .. 4,367,461 Hamburg,... 4,536,203 .. 7,271,473 .. 11,807,076 Bremen, 8,055,454 .. 8,070,516 .. 16,125,970 Italy and Sicily, 2,088,471 .. 3,618,603.. 6,707,704 Russia, 841,848.. 1,293,064.. 2,135,512 Prussia, 15,112 .. 27,879 .. 42,991 Sweden and Norwaj', .. . 96,947 .. 645,241 .. 742,188 Denmark, 10,478 .. 6,441 .. 16,919 Total, $38,404,052 $68,888,106 $107,292,157 Canada, 14,361,858 .. 18,645,457 .. 33,007,315 OtherBritishPossessions) 3g^.5 ^^ 4,417,476 .. 12,801,231 in North America, J TotalBritishN. America, $22,745,613 ..$23,062,933 ..$45,808,546 Thus showing that with eighteen foreign countries we maintain expensive diplomatic relations and establishments, where the com- merce thus protected and maintained is actually decreasing, and is less than that of Canada and the other British North American Pos- sessions, where we have no such expense at all. I 71 PRINCIPAL TREATIES AND CONVENTIONS RELATING TO COLONIAL TRADE. 1782. By the Sd Article of the treaty of 1/82, to tate effect after the conclusion of a peace between Great Britain and France, the right is given to take fish unmolested of every kind in the Grand Gulf, on the banks of Newfoundland and in the Gulf of St. Lawrence, and all other places where the inhabitants used to take fish. The drying and securing of the same being permitted only in the unsettled places, and when these were settled, then these privileges were to bo enjoyed only by agreement with the inhabitants. 1794. This treaty of amity, commerce and navigation did not allude to the fisheries, but regulated the trade with the West Indies, limiting it to American vessels of seventy tons burthen, and authoriz- ing these to carry products of the United States to^the Islands, and bring back their products ; not permitting, however, their molasses, sugar, coffee, cocoa, to any part of the world except to the ports of the United States. The treaty was limited to a term of twenty years. The 3d article, however, had a proviso, permitting commercial in. tercourse between British subjects and citizens of the United States, to navigate all the lakes, rivers and waters of the respective territo- ries, either side of the boundary line, and freely to carry on trade and commerce with each other. It was declared that the article did not extend to the admission of vessels of the United States into the seaports, harbors, bays or creeks and rivers between the mouths thereof and the highest port of entry from the sea, except in small vessels, trading 6ona /c?f, between Quebec and Montreal, nor to the admission of British vessels into the rivers of the United States, above the highest ports of entry from the sea. 1915. The Convention of 1815, while it established reciprocal commerce between the British possessions in Europe and the United States, by the 2d article declared that the intercourse between the United States and the West Indies and tbe British American Colonies should not bo affected by any of the provisions of the treaty or convention. 72 t \ K^ ill n t 1818. The celebrated Convention negotiated this year by Messrs Gallatin and Rush, by tho first article defined the linaits of the fishing privilege, and while it still permitted to the citizens of the United States to dry and cure their fish on the unsettled shores in the neighborhood of the fishing grounds, contained a renunciation on the part of the United States "to take, dry or cure fish on or within three marine miles of any of the coasts." The interpretation of this paragraph afterwards led to a serious and unpleasant contro- versy. 1827. The Commercial Convention of this year renewed the treaty of 1815, indefinitely, with tho right of termination by twelve months' notice, from October 28. 1830. Convention opened the trade. Mr, Laxe's arrangement. 1842. The treaty of this year opened the navigation of the River St. John to the United States, and certain channels of the St. Law- rence, Detroit and St. Clair rivers to both parties. 1854. Reciprocity Treaty. \ a -. -I ^iW^ j Mii^WF^ " ■MKMWW*'-*'"^"- /