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[Printed for convpnipncc of rendinR, nnd not for circulation.] 
 
 3>t 
 
 Xatioxal Hotel, 
 
 Washw/jtoi)^ Januav^j Ul., 1851. 
 
 To tlie Hon. It. M. ^McLant^, 
 
 OJi.ainnan Com. of Commerce^ Iloum P.ej)G. 
 
 Sill : 1 avail myself of your kind joermission to state 
 tlie grounds on Avhicli tLe passage of the bill which has 
 Le(iu repeatedly brought under the consideration of Con- 
 p:ress for estal)lis]iing reciprocal free trade in certain arti- 
 cle.^, the natural jn'oducts of tlie Tiiited States and Can- 
 ada, is urg(id by the hitter. To bring the subject fairly 
 under consideration, I must advei't to the clianires which 
 liave taken place within the hist few years in the colonial 
 ])olicy of (ireat Britain. Tlie old policy of the mother 
 country wjis to compel the colonies by means of heavy 
 dilicrential duties, to purchase their supplies exclusively 
 fro!>i her. The trade was carried on in British bottoms, 
 and the [products of the colonies were admitted into the 
 markets of tlie mother coimtry on more advantageous 
 terms than those of foreign nations. While such was the 
 commercial policy of Great Britain, the political aifairs of 
 the colonies were materially influenced by the Imperial 
 Government, the local Parliament having no practical con- 
 trol over the administration of aftairs. About the same 
 l)eriod, when, owing to the change in the commercial ])oli- 
 cy of Great Britain, it became necessary to remove all re- 
 strictions on the colonial trade, a most important conces- 
 sion Avas made to the North American Pi'ovinces by the 
 introduction of a system of government under which the 
 local Parliaments obtained an effective control over their 
 Governments. The consecpience of the withdrawal of the 
 jn-otection formerly enjoyed by the colonies has been, that 
 they have been left to buy and sell in the markets of the 
 world, just as tlie United States, or any other foreign na- 
 tion. Under the colonial system, the differential duties 
 
 Tuvvers, printer. 
 
vm 
 
 were so onerous, that the trade between the United Stat(^ 
 and Canada M'ti-sof the most limited and unini]»ortaiit char- 
 acter. In 1846, the Canadian Legishitnre liaving T)een 
 authorized by an act of the Imperial Parliament to regu- 
 late their own tariff, and being anxious to cultivate a free 
 commercial intercourse with their powerful and enterpris- 
 ing neighbours, removed the existing differential duties, and 
 admitted American manufactures, and foreign goods pur- 
 chased in the American markets, on the same terms as those 
 from Great Britain. Had Canada at that time stipidated 
 with the United States, that in return for hci* admission of 
 Ameiican manufiictures the duties should be removed from 
 her products, it would obviously have been the interest of 
 the United States to have agreed to such an jirrangement. 
 No such proi)osition, however, wtis made; and the very 
 important concession in favor of the I aiited Sttites to which 
 I have advei'ted, seems scarcely to have attracted the at- 
 tention of your Federal Gov(;rnment, and so little was it 
 understood that when Gen. Dix urged it as an aigument 
 in favor of the reciprocity bill in the Senate, the fact was 
 disputed. Most important results, however, have followed 
 from the legislation of the Canadian Parliament. Since 
 1846, the manufactures of the United States, the teas, 
 sugars, fruits, and other foreign luxuries purchased by the 
 merchants on the Atlantic sea-board with the j>roduce of 
 American labor, and transported to that sea-board in Ame- 
 rican bottoms, have been poured into Canada. The duties 
 at the port of Toronto have increased Avithin a few years 
 fi'om about $30,000 to nearly $400,000, and Hamilton, 
 Kingston, and other ports contiguous to the United States 
 would show a similar result. This increase is to be attri- 
 buted mainly to the American trade M'hich litis sprung up 
 since the removal of the differential duties, and which I 
 need hardly say has been most profitable to the va- 
 rious American interests, to the manufacturers, the ship 
 owners, the railroads, and the canals. The consequence 
 
 » 
 
3 c ^^ 
 
 of tliis traclr', lio'.revei-, has been tliat the Canadians have 
 been le<l to export their raw i)ro(hicts to IIk; same markets 
 from wliicli tliey ]ia\e drawn tlieir supplies. Here they 
 are met l)y a lieavy American duty on their staple com- 
 modities, luinl)er and breadstufts. 
 
 As I havo frequently heard it asserted, that the reoi- 
 procity asked would l)e all on one side, and that the Ameri- 
 cans are not exporters to Canada of any of the articles 
 named in the bill, permit me to call your special attention 
 to the operation of the present tarift's on two leading arti- 
 cles. One of the great staples of the AVesteru States is 
 pork, which can be produced there at such rates as to defy 
 comjx-tition in Canada. This article is the principal food 
 of tlie (,-anadian lumberer, and lumber is the ^jrincipal Ca- 
 nadian staple. Canada charges a duty on pork, which 
 swells the price of the lumber which is sent to the mar- 
 kets of l^uffido, Albany, and New York. Tbe consequence 
 is, that the Eastern consumer of lumber actually pays the 
 Canadian duty on the pork furnished by the Western 
 States, from which the entire supply is obtained for the 
 lumbering districts. It has been urged, and with some 
 phuisi})ility, tliat Canadian products being similar to those 
 of tlie T'uitcd States, would meet the latter on e(pial terms 
 under the reciprocity bill, and that Western wheat growers 
 would be injured by the competition of Canadian wheat. 
 Assuming, ibr the sake of argument, in order to meet 
 objections of every kind, that there is no surplus of bread- 
 stnits in the United States, and that the manufacturinir 
 districts of your country and the Atlantic cities are likely 
 to be the consumers both of American and Canadian 
 wheat, I am yet prepared to deny the soundness of the 
 argument drawn from that fact against the admission of the 
 latter. I affirm that the Canadian trade has created, and 
 nmst continue to create an increased demand for breadstulfs 
 (iuite etjual to the suppb^. If it be a fact, that prior to the 
 removal of the differential duties against the United 
 
States, Canadii iiri])orte(l isor snijai-M fVofi! C(i])a and I'o'fo 
 liico tliToiio'li the St. Lawieiioe direcl or vi;! ilalilax, 
 her teas from Cliina direct or via London, aad tlia^ slie 
 consumed Enidish mannfactnres almost e.\clusive1v +liert 
 I ^vonld ask, wlietlier tlie clian,fro in tiie iv:]']i\ t)^\]^^J: 
 to Avliicli Canada is now largely supplied Avitli these com- 
 modities by Tnited States nnmntactnrers and tlie merchants 
 of tlifc Atlantic cities, mnst not have increased tlie demraid 
 for food in the United States. If an Oliio farmer Mere to 
 bring a tliousand bushels of wheat to Xew York to be ex- 
 changed for groceries and dcjmestic goods ibr hisconsimi]*- 
 tion, he would not suffer any injury from tlu> com])etitioi) 
 of a Canadian farmer who wanted to eifect a similar ex- 
 change ; on the contrary, in ])roportion to the numljer of 
 such exchanges would the profits of the merchants and f )J-- 
 warders be reduced, a large trade being conducted more 
 economically than a small one. I am i)ersuaded, therefore, 
 that the exchange of Canadian agricultural products for 
 domestic manufactures, sugar, tea, coifee, tobacco, fruits, 
 <fec., so far from being injurious to the interests of the Wes- 
 tern farmers of the Unitetl States is rather calculated to 
 benefit them ; and I am inoreover firmly jx^'smided, that 
 should the Canadian trade be forced into other channels, 
 as seems not im])]'obable, it will then l)e estimated at 
 its true value by the people of the United States. 
 Though I have deemed it advisable to discuss the ques- 
 tion as if the United States had no surplus of l)readstufls 
 to exq^ort, I think the more correct assumption would l)e, 
 that for many years, the Western wheat growers will have 
 to compete with Canada in the markets of the world on 
 equal, and possibly on disadvantageous terms. A refer- 
 ence to ofHcial documents will prove that the Provinces of 
 Nova Scotia, New Brunswick, Prince Edward Island, and 
 Newfoundland, have been anionfr the best customers of 
 the United States for breadstuff's. In those provinces there 
 are re\'enue duties on flour, var}'i.ng from 25 cents to 75 
 
3i. /- 
 
 cents ])(']' liarrel. AVillrin tlic last ycv'irniTnntromonts liavo 
 1)0011 ofVtrtod l)y Canada witli tlirco of tlioso provinces lor 
 a live inteivliaiii^e of tlioir Jiatural jtrodnctions ; jind tlie 
 oxpoi'ionoe of a sinjjjlo season inducos nio to l)olievo that 
 a very larp^ ti'ado will l^e diverted to those pvovinees 
 from the Cit y of Xe\v Yoi'k, nnless the present i-estrictions 
 l)e removed. At the very oiJening- of tlie navigation hist 
 year, a stejimcr v,as chartei-ed at Toronto to take a e;irgo 
 of flonr to Halifax, and to ])ring hack sngar, molasses, S:c. 
 The i)rotection in favor of Canada tionr, when sent l)y the 
 St, Lawrence to Halifax, St. John's, and other i)orts, mnst 
 divert the snpply of those provinces from New York, to 
 ^Montreal and Quebec; and the vessels whicli take the i]om\ 
 will I»i'in2: hack snij^ar, molasses, and and other foreii,ni com- 
 modities, which, dnrini^' the last few years, have l)een pur- 
 chased in the New York markets. Under the existing 
 commercial regulations, therefore, the United States Avheat- 
 growers v.ill have to coinpete \\ith the Canadians on terms 
 disadvantageous to the former in a market which is next 
 in im]x>rtance and neai'ly equal to Brazil. In tlie other 
 markets of tlie Avorld Ijotli will meet on an eipial footing. 
 C'anada Hour is at this time competing in the Xew York 
 market \A'ith that of the Western States to su[)i)ly the 
 foreign dem;ind which regulates the price of the article; 
 and it would ho uijurious to American interests to force 
 the trade whicli is now carried on with the Atlantic cities 
 into the channel of the St. Lawrence. 
 
 It is assumed, and as perliaps it may turn out unfortu- 
 nately assumed, hy the opponents of the reciprocity l)ill, 
 that, in the event of the l)ill 1 )eing rejected hy the Ameri- 
 can Congress, Canada will maintain her present commercial 
 policy and continue to foster the import trade from the 
 United States. 
 
 It is very desirable that you should he fully aware of the 
 state of public opinion in Canada on this question. Hav- 
 ing myself been a strong ad\'ocate for free commercial in- 
 
1(M'*'«)nrs(> witli iho United Statos, Miid linvinpc li<'i<l, in my 
 position as linance minister, to resist in Parliamerit, the ad- 
 vocates era restrictive policy, I am tlioronii'lily ac(iuaint('d 
 witli tlu^ views of* all ])arties. I have no hesitation in stat- 
 inp^ that the advocates of a retaliatory policy are i'aj)idly 
 irnininfT urround. Whether all or any of the ])lans snij'- 
 chested, will he carried ont, it is of conrse ini])ossil>le forme 
 to say, hnt it is certainly hia'hly desiralile that, in ai'riving 
 at a very impoi'tant <lecision, you should he fully aware of 
 the i)rol)al>le consequences. Th'^ re-imposition of the difl'e- 
 rential duties against the United States manufactures, lias 
 heen stromal v uri!'ed. Such a measui'e would he most ac- 
 ce])tal)le to the connuercial interests of ]\rontreal and 
 (,)nel)ec, whose trade was sei'iously injured hy their re])eal. 
 At the close of the last session of our Parliament, an influ- 
 ential member of the oppo.-ition, a gentleman who held 
 uii(h'r a former administration the office which I have now 
 the honor to fill, o-avo notice; of his intention to introduce 
 a l)ill during the next session, to re-impose t'^ese duties. 
 Leading organs of the opposition have strongly advocated 
 such a measui'e, and no doul)t can he entertained that it 
 will engage the consideration of our Parliament at an early 
 dav. Should it he ad()i)ted, the United States would have 
 no just cause of complaint. They never invited Canada 
 to repeal the difi'creiiti;d duties, and their rejection of the 
 reci])rocity bill vrould of course l)e looked upon as a de- 
 li])erate rejection of t'le Canada trade. In England the re- 
 imposition of differential duties l)y Canada would be viewed 
 most fiivorably, and there can be no doubt that the ef- 
 fect would, be to stimulate the efforts of those who are 
 seeking to obtain some modification of the present corn 
 laws. Another measure or retaliation which is begin- 
 ning to engage attention in Canada, is the closing up 
 of all the canals to American vessels. Should this policy 
 be adopted, a most seriems injury would be inflicte<l on 
 the trade of Chicago, Cleveland, and other lake ports, 
 
3C 2- 
 
 OsAvoffo, Oiv(l('nsl)nr£?li, and tlic Xo\r Kiif^liind Kailrniul iu- 
 tc'ivst, liiH-iiu.^tou, Whitehall, Jind tlie New York iiorthi-vu 
 canal. The Cuiiadiau revenue derived iVoni tolk would of 
 coiir!>e sutler, Init as that tbruis an insignilicant ])ortiou of 
 the resources of the provhice, the loss would cause no in- 
 convenience. It is contended l)y the advocates for this 
 policy, that the Western products which now find their way 
 l)v Oswego and Oirdensburdi, to New York and Boston, 
 and carried in American bottoms vrould he diverted to the 
 St. Lawrence, and that the entire inland tra<le would he 
 In British Iwttoms. It is aiiirnied that the tonnage of 
 Canada, with Avhat could he spared from Nova Scotia and 
 New Brunswick, would very soon be sutHcient for the in- 
 creased trade. I have stated the views Avhich are enter- 
 tained very extensively l)y influential i)arties in (Janada as 
 to her future commercial policy in the e\'ent of the rejec- 
 tion of the reciprocity l)ill l^y Congress. 
 
 I am, however, unauthorized to announce the views of 
 the Canadian Government; hideed its policy lias not yet 
 been determined on. Since the accession of the i)resent 
 Administration to office in 1S48, they have been watch- 
 ing with anxiety the proceedings in Congress regarding 
 the reciprocity bill ; and ray ol)j-ct in visiting Washing- 
 ton at this time was to ascertain, if possilde, the probable 
 fate of that measure, as the Government must be prepared 
 at the approaching session to meet Parliament with a de- 
 fined ])olicy regarding our commercial relations with the 
 United States. 
 
 Although I have probahly alread}' exhausted youi' pa- 
 tience, I nnist make a remark or two on the importance to 
 the United States of the free navigation of the St. Law- 
 rence. It has been affirmed by the opponents of the 
 Eeciprocity Bill, that inasmuch as a considerable quan- 
 tity rf Canada flour is sent by the Oswego and Og- 
 densl)urgli routes, the St. Lawrence route must be much 
 inferior. I believe on the other hand, that the increasing 
 
■s 
 
 ti'ai'.i! ;.r til;' \\\"l \,\\] :t\]'nV'\ hii.liic-;^ ("or all :!i'.' ;iiaiin<'is 
 
 \\\\\r] Miv, ]i!;,.]y (., I,(. opci;,.,! f<. it', aihl it <\[Vr\y >',uuli} 
 
 itr all iMiiM'ii-.;' a.ixaiila;: • hol'i i.> tli.- r.iiijiiiiav; and aiii'i- 
 '■iiliiira! ::it;'r(-'l-; tu'tlic W't-t lo In- a.'.l »\vc,l 1<. [.aiiicipatc 
 III riii'iii-liiii;.-; .supplies t(i rli- ;^'iT;'.t d'-poUoi" the lishJiiL;- 
 {■!■;!'■''. 'I"!i<' \■(•■■-•<■l.■^ (til ll;.' W'rstcrif lalu'< cii-a^cii in tlti; 
 (•(iiiiiiicrcc, and wliicji a'c now Id.lc dni-iiiLi- tii;- winter 
 niontlis would (.l.ta'ii a '>ha!.; of the AVe>t liiflia l!';ide lo, 
 vvliii h tliey a'.e well -;nilcd„ 
 
 I iii;;y ^i.-ite a l;;et (»!' two l)eai in-' on tin' inij dilanec ol'tlie 
 >'i. i.awreiK.: • n:iVi..:.!tio.i. !!, ^teaied aj;i'l:ial", »!;• |it\('!)<en 
 made to tJie Canadian (iovi iMiiiU'nt dui'Ini'; (he iast two 
 years i>y pai ti"s in iMiiialo, ( ie\cland, and Cliiea;;o, toi-per- 
 ini.-sion to ]»ass \-e>se!. throu_ii tlie St. Lawrence, w hieh it 
 Ine; heen con-trainedL iiinh r existiiiir >ire;ini>ianees to refusi'. 
 Speeial p'er!ni>r-ioii, liowcv.-i', was i^r.-fii ji; two e.-iM-, one to 
 a \-e--<l to ca.rry a eai'go of .-oppei' ort- iVuni Jiake Huron 
 t(. Swansea, in Wales; thcother to a ve-.-^el lioitnd to C'ali- 
 foi-nia wIlli <'niiL';v:ints. i>e>i(h'- tliei-eoasesthe (io\ ci-nineiit 
 oi' tlie I'liitedStat/s made a])pli(.ation for ]>ei ini.-sion to 
 send TWO war steainei's tliroiiuli the ('anadia.n eaaials and 
 St. Lawrence to the .\tjaiitir, wliieli w;is at once -'ranted, 
 
 IL'.vlmr now pre-ented yon \\''A]\ my \ie\\s on this im- 
 portant ({ue-tion, I have only in conclusion to express mv 
 warm aclviutwlediLiments to you for h;i\inL;' kiiidl\- permit- 
 ted me to do so, ami for the patient consideration whicli,as 
 Chairman of the Commiltee of Commerce in t!ie n<»rise of 
 ]we}>re.sentati\\'s, vai have pai<l to the subject. 
 
 I ha'.c i]\o hoiK.i- to I'emain, sir, 
 
 Yiniv jiiovt ohodient hum1)le servant. 
 
 F. IIIXCKS, 
 
 .Lh^2^ccfor (Itntral of t\nuuJa.