IMAGE EVALUATION TEST TARGET (MT-3) // >.*^ 1.0 1.1 lU 2.0 IL25 1111.4 PhotDgr^hic Sciences Corporation '^.V^ 23 WIST MAIN STRUT WnSTIR.N.Y. USM (716) e79-4S03 '^ CIHM/ICMH Microfiche Series. CIHM/ICIVIH Collection de microfiches. Canadian Institute for Histo leal Microreproductions / Institut Canadian de microreproductions historiques ;V Tachnical and Bibliographic Notes/Notss techniques et bibtiographiques T t( The Institute has attempted to obtain the best original copy available for filming. Features of this copy which may be bibiiographically unique, which may alter any of the images in the reproduction, or which may significantly change the usual method of filming, are checked below. □ Coloured covers/ Couverture de couleur □ Covers damaged/ Couverture endommagie r— 1 c. 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Les diagrammes suivants illustrent la mithode. 1 2 3 1 2 3 4 5 8 ipi^PPiqpiMMpiiii. ;:;'v',if-^;'^"'W:*^- "^i- -' 7i ' ■■ ■>» ' : '• K r<3% ^e r,4 hi . •'r•.^,,,, , •, ) ■ 1 I. -;* '"' 1^ " iiiiMt«ip' Fish's leading, the\- enlarged this to include all those coarser grades of manufacture, which were found to exist even in a British colony practising Free Trade with the mother country, and in which the Canadians might be expected to hold their own against our comiKtition. The great object of such Reciprocity manifestly is to throw open to the Canadian farmer, our Ivi.stern markets for agricultural products and raw material. That market has been created through the development of manufactures in our Kastern and Middle States, beyond the capacity of their agriculture to supply food to the people thus employed. Canada has had no .share in the siicrifices made for the development of these manufactures. Sh' has followed the easier policy of buying in the cheapest and .selling in the dear- mm ■MM est of the markets she found open to her. She has done nothing to create other and more advantageous markets on her own soil by the diversification of her industry. It is true that she has just awakened to the necessity of doing something. Her perennial poverty has prompted the adoption of what is called a " National Policy" to that end. But the one year of that Policy, of course, has not effected any great change, and Canada is still an agricultural country, anxious for access to the better markets created in our country for her corn, her timber, and other raw materials. I think it is self-evident that such Reciprocity — and we have no other proposed — would be unjust, not so much to the manufactu- rers of the East, as to the farmers of our great West. In ordinary years four-fifths of the grain which crosses the Allegheny water- shed is consumed by the people of the Pastern States, and only one-fifth is exported. To deprive our Mississippi Valley of this great market for provisions, for the sake of Canada, at the very time when the settlement of Manitoba promises to make her a great wheat-producing country, and a leading competitor with us for the supply of wheat to Europe, would be neither wise nor patriotic. 2. The Reciprocity plan would still entail upon us the mainte- nance of the expensive custom-house system which now lines our common frontier, and which will grow more costly with every ex- pansion of the two populations, and the consequent increase of their points of contact. And, while always costly, that custom- house line must always be inefficient. P!very inequality in the duties imposed by either country upon European goods, every duty imposed by either upon the products of the other, presents temptations to bold and lawless spirits, to indulge in a little " Free Trade " at the less observed points of this long and purely conven- tional frontier. No fiscal system can be enforced by either country which does not obliterate that line, and retain the seaboard as the only customs-line for the American continent. But no measure of Reciprocity that has ever been proposed, — neither that of 1854 nor even that of 1873, — has ever looked to any such obliteration. A Customs Union such as I have suggested, would do so, while Reciprocity, by relaxing the official attention to imports from Canada, might result in giving us a Zona Libera on our Northern as well as our Southern frontier. 3. Reciprocity would leave Canada in her present position of 1 "HI commercial dependence upon England, and would encourage her to maintain that position by our removal of the disadvantages which would naturally accompany it. It would give her advan- tages to which she has no right, and would leave her free to follow a policy hostile to the interests of the continent at large, and European rather than American in its character. Her political re- lations to England are not our concern. So long as " the silken rein " of the Hritisl; connection pleases her, we all welcome her to wear it. Hut we surely have a right to expect, in entering upon closer commercial relations with her, a substantial guarantee that she feels herself a part of the great American continent, and is not ready to lend herself to such glittering Imperial schemes as recently found favor in the ministerial councils of the United King- dom. If we may jutige of her own attitude towards tlio-se schemes, as it is reflected in the six^ech made by Sir Alexander T. Gait, when setting out for London as Canada's official representative, .she was far from unwilling to entertain them. This official repre- sentative of the Dominion expressed his conviction that h^nglish Free Trade with the rest of the world having proved a failure, the people of England were awakening to the fact that they had within their Empire a larger market for their manufactures than the rest of tlie world can ever give them ; and also, since the opening of the Manitoba region, an abundant food supply on their own territories. And he pointed to an Imperial Customs Union, by which tlie colo- nial markets for manufactures should be guaranteed to England, and the I-lnglish markets for food and raw materials to her own colonies, by an Imperial Protective Tariff on both sorts of goods, as the goal toward which Englisii public opinion was tending. It is well known that these "great expectations" were inspired and fostered b\' Lord Heaconsfield. Happily, they have been laid at rest for the present by the results of the Englisli elections ; and the new Liberal Government, while less forward in proposals for closer association with the colonies, will be more ready to leave Canada free to control her own destiny. A Customs Union with the United States would be a final de- claration of her Continental sympathies, and her farewell to Im- perial aspirations. It would be a declaration of her readiness to unite with us in the great work of developing the resources of our vast inheritance, and the creation of free nationalities of the Ameri- can type in the New World. I 4. A Customs Union with Canada gives every i)rospcct of per* hianence. while Reciprocity can never do so. Upon tlie former we can all unite. Neither Protectionists nor Free Traders need have any quarrels with m\ arrangement which would make Canada, for business purposes, one with ourselves, A Reciprocity Treaty will always be a bone of contention between the two parties, and will be exposed to all the fluctuations of party feeling. That of 1854 was a partisan mea.su re, and its abolition in 1867 was equally a jxirty victory. In view of the fact that we look to our commercial readjust- ment with Canada for a settlement of the Fisheries Question, it is of the first importance that what is done shall be done to last forever. 5. It may by some be doubted whether Canada is either ready or competent to enter into such an arrangement. From a close observation of the drift of her opinion, I am satis- fied that she is ready. In the adoption of the Tariff of 1879, she declared to the world that she meant to make her own interests the foremost consideration in her policy. When told that the policy imperilled the Briti.sh connection, her reply was, " So much the wor.se for the connection." She is not thriving, and cannot thrive in her present isolated position, without access to the mar- kets of the Continent, as was shown by her readine-ss to embrace Lord Beaconsfield's gorgeous but misty visions. We are her last resort,and it only remains for us to put our proposal into a shape which will confer lasting benefits upon the people of the whole Continent, in.stead of making one-sided proposals, expensive in their results, and with no promise of permanence. As to her competence, T may quote the words of Sir Alexander T. Gait : " By the Confederation Act, the Imperial Parliament surrenders to us the complete control of our customs, cxci.se, and every other mode and description of taxation. By that Act Great Britain vol- untarily deprived herself of the power of negotiating for this coun- try with foreign countries. .She deprived herself of the right to say to Canada ' you shall,' or * you shall not' impose any particular class of duties. . . That Act has placed us quoad commercial ques- tions, in the same position as regards the Imperial Government as we stand in towards any foreign Government." In these C'rcumstances, would it not be timely to propose an In* ternational Commission with Canada, to negotiate a Treaty for the removal of the exciting restrictions on our mutual trade ? I am, sir, with great regard, Very truly yours, Wharton Barker. PrvMOf Edward Stern & Co., fhlUtlflphU. mm m In. Tthc !■ i IWMHHWWIiilllHllHilU"-