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Sir: I liavo the honor to acknowledge the receipt of a resohitlon aclopted by the Hou(»e of Representatives on the 2Sth day of March, 1S6G, in the following wordt* : "Resolved, That the Secretary of the Treasury be requested to coiumunicato to this house a statement of the trade of the provinces of British North America, and especially Canada, in 1854and 1865, respectively, the values beiu^ estimated ia gold, and specify inj; what proportion of such trad<64, in response to a resolution of the House of Representatives, calling upon the Treasury De- partment for statistical informati'ai of tin; practical operation of the treaty of Jun«^ 5, JS;')4, e, of the Executive Documents of the House of Representatives for 18G3-'64. Ou the 2.5th of June, 1664, also, my 2 COMMERCIAL RELATIONS WITH BRITISH AMERICA. predecessor, ^fr. Secretary Chase, communicated a large body of statistical and other information in relation to the trade of the United States and British America to the Senate, m a report upon the " Foreign and Domestic Commerce of the United States," which is printed as No. 55 of volume 1 of Senate Ex- ecutive Documents for 1863-'64. Desirous to respond as fully as possible to the resolution of ^VFarch 28, 186G, I have caused a general statement of the results of former investigations in thia department, brought down to the latest accessible returns, to be compiled, and have availed myself of the opportunity t-> present more distinctly than on former occasions the commercial relations of the western districts of British America (a region rapidly advancing in importance) to the United States. The enclosed paper by Mr. James W. Taylor, special agent of the Treai^ury Department for the district of Minnesota, has been accordingly prepared under my direction, and is respectfully forwarded for the consideration oi the House of Representa- tives. Its closing pages contain some views upon the politicil relations of the United States and British America, upon which I am not prepared to express an opinion at this time, but to which I invite the attention of the House of Representatives. I am, very truly, your obedient servant, II. M.CULLOCH. Hon. SctnvLER Colfax, ^jji-alier of the House of Rejiresentatii'es. , St. Pail, June 6, 1SG6. Sin: The subjects of inquiry presented by the resolution of the House of Representatives of March 28, 18GG, may be thus enumerated : 1. "Tlie trade of the provinces of British North Amerie:i, esjiecially Canada, in 1854 and 1SG5, respectively, the values being estimated in gold, and specify- ing what proportion of said trade was with the United States, aiid what articles, if any, were exclusivJy exported to the United States." 2. A summary of taritl" legislation in Canada since 1S54. 3. American commerce on the canals of Canada and by the route of the St. Lawrence river. 4. General information in regard to the commercial nlations between the United Slates and British America. TRADK WITH URITI!?!! AMKRK A. The records of the Treasin-y Department for the year endiii;:- June 30, 1865, show tliiit our trade with British America is !' 'lie United States for l.^G5 consisted ol .S;j;)'j,7G8,2i^() exports and 6234,4.'{4,IG7 iniixjrts — an aggregate of ^■57 4,202,3S7. This statement in detail is as follows : COMMERCIAL RELATIONS WITH BRITISH AMERICA. Statement in detail. Couutries. Eng^land, Ireland, anil Scotland. Hiiti.sli North America Spanish West Indies Hamburg Bremen France Mexico Brazil China All other countries Exports to. Imports from. Total. ^140,376,781 :{1,H4-2, l^^ili 2:?, H()9, 455 1), 5.M,940 1, 178, 9KJ 421,752 265, 069 144, "tic! 1)5,121 2, 089, 209 Total. 6,62(»,2.57 6,100,028 ; 12,780,885 Of the cK'iirancf's for Biiti;»h Aniericn, 1,750,548 tons were of American ve.s- st'l,-*, ;uid l,7b7,:201 tons were of (Jaoadi.m and other foreign vessels. Of the ( iitninces IVdUi British America, l,(3fS(),!S'i9 tons were xVmeiican, and 1,503,364 were Canadian and other ibnigii. Before proeiu'ding to a separate statement of Canadian tradi' for the years 1854 and iy64-'65, a general rt-view of the commerce of the United States with the British provinces of Ncu'th America from the 1st day of July, 1851, to the yOlh day of June, 1865, is presented. This period will represent the condition of the trade for thn^e yiiirs prior to the late reciprocity tn'aty, one 3'ear passed in e.xchanging the legislation retjuired by the treaty, (1855,) and ten years of its practical operation. The statement is prepared iu the llegister's otUcc of 4 COMMERCIAL RELATIONS WITH BRITISH AMERICA. tbe Treasury Department; and while the values of imports are returned in gold, no such practice exists in regard to statements of exports, and, in all probability, during the years 1863, 1864, and 1865 the currency values of most of the ex- changes, especially of articles admitted free of duty, have been adopted in the statistical returns. The annexed table until 1801 was a customary appendix of the finance report, and is now brought down to the close of the last fiscal year for the purpose of exhibiting the progress and volume of trade with the provinces. Statement exhibiting exports to and imftorts from Canada and other British possessions in Kortit America, from July I, 1851, to June 30, 1865. V Yonrenclingr EXPORTS. Imports. Total trade Juue 30. Foreign. Domestic. Total. 1852 $3,853,919 5,7:K5.555 9,362,716 11,999,378 6,314,652 4,326,369 4,012,768 6, 384, 547 4, 038, 899 3,861,898 2,061,432 2,651,920 2,419,926 1,809,862 §6,655,097 7,404,087 1,5,204,144 15,806,642 22,714,697 19,936,113 19,638,959 21,769,627 18,()67,429 18,883,715 18,652,012 28,629,110 26,-567,221 3t», 032, 283 §10,509,016 13,140.642 24, 566, 860 27, 80(5, 020 29, 029, 340 24,262,482 23, (551,727 28, 154, 174 22, 706, 328 22,745,613 20,713,444 31,281,030 28,987,147 31,842,145 §6,110,299 7,5.50,718 8, 927, 5(i0 15,136,734 21,310,421 22,124,296 15,806,519 19,727,551 23,851,381 23, 0(52, 933 19,299,995 24,021,264 38,922,015 37, 308, 468 §16,619,315 1853 1854 1855 18.56 1857 lf^58 1859 1860 18wl lSi2 1863 1864 1865 20,691,3(50 33,494,420 42,942,754 50,339,761 46, 386, 778 39,458,246 47,881,725 46, 557, 709 45, 808, .546 40,013,4.39 .55,302,294 (57,909,162 69,150,613 jVIost of this trade was with Canada and the miiritime provinces of Nova Scotia, New Brunswick, Prince Edward's Island, aiul Newfouiullaud. Recently, however, a considerable commerce has been developed bet'.»een Minnesota and the territory of the Hudson Bay Company, and between the Pacific States and the Kiiglish colonies of British Citlumljja and Vancouver's island. The trade witli the I'acifie, provinces during 1864-'65 ccmsistcd of .•;;; 1,3 19,463 exports and $1,131,491 imports, amounting to J:i::i,480,!)54, which the Minnesota trade with Central British America will increase to 83.000,000 ainnmlly. It will be .^afe to deduct this amount annnally since 1860 from the aggregates of th(! foregoing table, on account of the western provinces; wliile from 1S52 to 1860 the aver- age commerce with British America west did not probably exceed .>500,000 annually. THE CANADIAN TKAOK. As the House resolution calls for a separate statement of the trade of the L'nited States with Canada, the following talde has been prepared to express the aggregates of exports and imports from 1^52 to 1865. 1,'ntil 1^64 the Ca- nadian fiscal year was identical with tlie calendar year, while the accounts at the treasury of the United States close on 30th June/ f COMMERCIAL RELATIONS WITH BRITISH AMERICA. Statement exhibiting erports to and imports from Canada, from July 1, 1851, to June 30, 1865. (From American reports.) Yoar ending June 30. 1852 .. 185:{ .. 1854 .. 1H55 .. 1856 . 1857 .. 1858 .. 185!) .. 1800 .. 1861 .. 1862 .. 186:1 .. 1864 .. 1865 .. EXPORTS. Foreign. :«, 6, 5. 3, r., 3. 712, 823, 790, 769, 688, 550, 365, 50], 918, 740, 560, 468, 3U1, 905, 097 587 333 580 453 187 789 125 524 049 397 113 563 968 Domestic. $4, 004, 963 4,005,512 10,510,373 9,950,764 15,194,788 13,024,708 13,663,465 13,439,667 11,164,590 11,749,981 11,282,107 18,430,605 15, 356, 8(i6 18, 306, 499 Total. $6,717,060 7, 829, 099 17,300,706 18,720,344 20,883,241 16,574,895 17,029,254 18,940,792 14,083,114 15,490,030 12,842,504 19,898,718 16, 858, 429 19,212,467 Imports. $4,589,969 .^ 278, 116 6,721,539 12,182,314 17,488,197 18,291,834 11,,')81,.571 14,208,717 18,861,673 18,645,457 1.5,253,152 18,813,840 30,974,118 30,547,267 Total trade. §11,307,029 13,107,215' 24, 022, 245 30, 902, (>58 38,371,438 34, 866, 729 2s, 610, 825 33, 149, 509 32,944,787 34,i:{5,487 28, 095, 636 38,712,558 47,832,547 49, 759, 734 A statement compiled from Canadifin records, commencing with a half year of 1851, to make the period identical with that covered by the foregoing table, is also annexed. Statement s/wwiny the whole trade in imports and exports between Canada and the United States during fourteen years. Nova Yciirs. 1851, (half vcuv) 1852 .' 1853 1854 , 1855 1856 1"'57 1858 1859 , 1860 1861 1862 |-'63 |H(i4, (ii all' year) 1864-65 Imports from the United States into Canada. $4,162,882 8,477,ti93* 11,782,144 15,533,01M> 20, H28, 676 22,7(»4,508 20,224,648 15.635,565 17,592,916 17,273,029 21,069.388 25,173,157 23,109,362 10, 42ti, .572 19,589^.()rw- Exports from Can- ada to the United States. $2,035,775 6,284,520 8, 936, 380 8,649,0(10 16, 737, 276 17.979,752 13,206,436 11,930,094 13,922,314 18,427,968 14,386,427 15,063,730 20,050,432 7, 722, 397 22, 939, 691 Total trade. 86,218,6.-)4 14,762,213 2(1,71^,524 24, 182, 09(5 37, 565, 952 4(»,684,260 33,431,084 27, 565, 659 31,5I5.23(» 35,700,997 35,455, s 15 4(l,236,.''a7 43, 139,794 18, 14H,769 42, 528, 746 ! i 6 COMMERCIAL RELATIONS WITH BRITISH AMERICA. In addition to the annual statements of exports and imports, representing the trade between the United Stfites and Canada, the following table has been pre- pared from Canadian reports. It is a statement of American and Canadian ton- nage, inward and outN/ard, to and from Canadian ports, exclusive of ferriage, between United States and Canada. Statement of American and Canadian tonnage, outward and inward, to and from Canadian ports, exclusive of ferriage, between the United States and Canada. - • . AMERICAN. Years, lu. IBM , 1,284,523 1859 ! 2,409,1«8 1861. .-. ■ ],G2i>,JrK{ ]8H2 2,:5U(),8H3 ]8(i;j ], 857, 974 J8()4, (Imlf vofir) 780, J 99 ]8G4-'ti:>...- 2,119,125 Out. 1,240,051 2,27:{,22(1 l,468,0:i4 2,]«)I,;W l,7:«>,5(i9 75:?, lnS6 2, 070, 028 CANADIAN. m. 2,2'?9,529 1,222,454 1,412,07(5 l,79:5,:{o;j 1,680,727 795, 8:57 2,080,771 Out. i, 519,518 1,131,482 ],:J4;},2(?2 1,790,824 l,r)28,8()3 769,710 1,995,712 The years designated in the resolution, 1S54 and lS64-'65, are not favorable for a C(Mnparative statement of the Canadian trade. The year first named wit- nessed an unusual excitement of markets, which resulted from the application of a large amount of English capital to the construction of the Great Western and Grand Trunk railroads ; the total imports of Canada in 1854 reaching 840,528,324, M'hile the exports were only $23,019,188. The purchases of con- tractors we.e largely made in the United States, swelling our exports to Canada from S7,s:>9,099 in 1853 to $17,300,706 in 1854. These disbursements on ac- count of railway construction, and the speculative spirit excited by them, con- curred with the first operation of the reciprocity trenty, to increase our exports beyond the imports from Canada during 1855 and 1856 ; then followed the re- vulfiion of 1857, which bore heavily upon Canadian trade, while since 1860 and during the late war, our great domestic exigencies have not only prevented for- eign and manufactured goods from letaviiig the country, but have materially added to the America^ demand for Canadian products. The American reports show a movement from Canada to United States, since July 1, 1863, exceeding that from United States to Canada by nearly 825,000,000, a balance which has probably been invested in United Slates bonds, of which $50,000,000 are esti- mated to be held in Canada. It will thus be seen that the battle-year of 1864-'65, when all our energies and supplies, with whatever could be drawn from our neighbors, were absorbed by great military campaigns, is even more unfavora- ble thnn 1854 to represent a normal condition of conmierce. They were prob- ably indicated, because the earlier date marks a course of trade prior to the re- ciprocity treaty, and the fiscal year closing June 30, 1865, was the last annual statement of trade M'hich was accessible at the date of the resolution. AVith these explanations the following tables are presented : COMMERCIAL RELATIONS WITH BRITISH AMERICA. eiititig the been pre- adian ton- P ferriage, rd, to and 'tates and [AN. Out. 1,519,518 1,131,482 1,343,202 1,790,824 1,628,8(53 769,710 1,995,712 t favorable named wit- plication of 'cBtern and t reaching ises of con- to Canada ents on ac- them, eon- )ur exports kved the re- 1860 and vented for- niaterially 2an reports exceeding which lias )0 are esti- 18(i4-'G5, 11 from our luifavora- were prob- r to the re- last annual lou. AVith Coinparathe statement of exports, in values, from Cana :i to iJie United States, for the years ending December 31, 1854, and June !]0, 1SG5. (From Canadian records.) Articles. 1854. • 1804-'65. THE MINE. Copper > • • $1,511 81,746 Coppc^r ove ........... ... . ........ $87, 148 Iron o, (' 27, 222 Pig and scrap iron 159, 532 40,762 10, 052 7,356 Stone Mineral Cor eiirtli ) oil 31,480 Total nroiliicc of tlio mine . .. . 278,260 168,649 THE FISHERIES. Dried and smoked 146 72, 9?8 11,297 1,041 310 Pickled 53,027 28, 468 riosii Oil . ... Purs or skins, the uroduce cf fish or creatures livino' iu the sea.. 7, 452 Total produce ol the fisheries.... . . . ... 85, 472 89, 257 THE FOREST. Ashes : Pot 91,534 16,984 227,102 23, l(t5 Pearl Timber: Ash 3, 038 425 Uinh 149 282 Kim 3, 753 Maple 29 Oak 24,.ViO 96, 730 4,564 171,380 ^^'llite pine 225, 8(54 Ped l)iue ... .. . ....... . 1,048 'I'amanie . . ... ... .... 28, 470 AValiiut 9, 482 6,193 1,525 3,7()1 795 .5, 281 Passweod, hutttuiiut, and hickory 17,423 Standard staves ntlu'r staves ; 80, 544 K net's 13,0(50 Pitt tens Scantling 34, 448 6, 916 14, 825 499 ] l.als 1*1 al ends J'lank and hoards 1,579,820 20,517 100 3, 292, 451 Spars . .. . ........................ 1,910 Masts \ 140 Handspikes Lath and lathwood ..... ............. . . 13,8-^5 46,202 20,641 58, 489 1, 172 15 834 Firewood 364, 249 Sii ingles 44 010 Saw lops .. 147,721 Treeiniils Pailroad ties 18, 809 26,912 Chirs t)ther woods 26, 026 223, 100 Total produce of the forest.... 2, 083, 544 5, 008, 746 8 COMMERCIAL RELATIONS WITH BRITISH AMERICA. Comparative statement of exports, Sfc. — Continued. Articles. ANIMALS AND THEIR PRODUCE. Horses .*. Horned cattle. Swine Sheep . Poultry Produce of animals : Bacon and hams. Beef Beeswax Bones Butter Cheese Epgs Feathers Furs, dressed Furs, undressed.. Hides . Horns and hoofs . Honey Lard Pork Sheep's pelts Tallow Tongues Venison Wool Total animals and their products AGRICULTURAL PRODUCTS. Balsam Barley and rye Barley, pot and pearl. Beans Bran Flax Flax-seeds Flour Fruit, green Hay Hemp Hops Indian corn Malt Maple sugar Meal Oats Other set'df* Peas Tobacco Vegetables Wheat Total agricultural products MANUFACTURES. Books Biscuit ... Candles .. Carriages 1854. 820-2, 174, 7, 2(5, 4, 5, 117, 22, 4IH OIG 117 041 409 160 358 .') 2S5 040 .')()0 92.') 12 53, 464 21, 1, 909 r)68 1, 27, 835 752 861 30,243 097, 926 440 94, 185 5()9 5, 045 448 3, 370, 319 2,792 80 .33, 481 13, 496 75 468 4,568 16, ,506 54, 384 58, 604 3 232 1,670',632 5, 329, 324 450 l864-'65. $1 812,334 1,781,995 613,993 253, 044 17, 509 44, 433 13, 996 311 1,593 340, 899 .5,277 95,660 46 3,234 60,518 127, 483 2,550 21 20,999 426, 461 77, 574 657 801 1,351,722 7,053,079 8,836 2, 879, 870 63, 534 88, 089 37, 435 13,796 1,916,2.55 6,231 4,258 22, 625 59, 329 1,000 476 85, 467 1,561,088 37, 047 198,971 29,702 11,615 1,227,363 8,246,987 2,019 '3i,"i22 l864-'65. $1 812,334 1,781,995 (513,993 253, 044 17,509 44, 433 13,996 311 1,593 340,899 5,277 95,660 45 3,234 60,518 127,483 2,550 21 20,999 426, 461 77,574 657 80'l 1,351,722 7,053,079 2,836 2,879,870 ""63" 534 88, 089 37, 435 13,796 1,916,255 6,231 4,258 ""22^625 59, 329 1,000 476 85, 467 1,561,088 37, 047 198,971 29,702 11,615 1,227,363 8,246,987 ■ft- I COMMERCIAL RELATIONS WITH BRITISH AMERICA. Comparative statement of exports, ^. — Continued. s Articles. MANUFACTURES— Continued. Cottons Furs Glass Ground plaster and limo.. Hardware India-rubber Indian bark-work Leather Linen Machineiy Musical iiistrumeuts Oil cake Rags Soaj) Straw Sugar boxes Tobacco Wood Woollens Liquors: Ale, beer, cider. Whiskey Other si)irits ... Vinegar Total manufactures Coin and bullion , Otlier articles RECAPITULATION. Produce of the mine Produce of tlie fisheries ... Produce of the forest Animals and their products Agricultural products Mtiuufactures Coiu and bullion Other articles 1854. 1864-'65. $952 36 8,048 13,938 15,546 100 2,108 $1,770 100 608 2,806 115,079 530 9,772 12, 404 65,610 246 1,187 4,988 4,736 434 21 22, 603 2,918 31,501 4, 122 864 64,524 212 2,675 51, 422 66,957 37,645 8, 494 699 5,250 10, 473 18 141,145 469, 172 33, 331 1,599,341 304, 460 1854. 18f>4-'65. $278,260 85, 472 2,083,- 4 697,9... 5,329,3-.^- 141,145 33, 331 8168,649 89,257 5, 008. 746 7,053,079 8,246,987 469, 172 1,599,341 304, 460 8,649,000 I 22,939,691 2,019 'si ,122 10 COMMERCIAL RELATIONS WITH BRITISH AMERICA. Comparative statement of values of hading articles imported into Canada from the United States for the i/ears ending December 31, lS5i, and June 30, 1865. {Fro?n Canadian records.) Articles. Coffee Ci^itrs Tdhiicco ntid suuff. T.a Snjrar and t'onfootMiiieiy Spirits, wine, lUid coidials Rloiassi's Fruit, dried and preen. Fisli, t'rcsli and salted Lunilter or planks Clocks and watidies Cotton niiinuiaetMrcs Drnjj.s and nicdieines Fancy floods and niilliuery uiassware Hats and caps India-rublii r Iron and hardware Leather, nianntactured and other Musical instnnneuts Oil Fa ler Si: Straw floods Wood, nianutiictured M'oollens , .tiess pork* , Kice Coills , Conhijre • Ctitton yarn and warp Flax, lienip, and tow.. Hides Iron, (iiicludinir railro.id bars). Printinj;' presses, Ac Tallow Books liidiaii corn Salt Seeds Settlers' pocdH . . . Trees and slnuhs. Wheat f'!tl)inetware or i'uiniture Carrine;es Madiinery not ofherwise specilied. Small wares Horses 1854. $151,336 47,af^4 4^2. J 90 1,335,464 4H'J, 732 3J1,9I6 18>i,212 lao, j'io 74, 848 6-i, 812 Wi, 840 684,588 225, 630 116,368 103,504 212,.^)09 81,1)16 1,353,408 7in>,7!>8 J 31,208 185,764 87, 680 116,8!>2 82, '.too 379, ().V2 .579, 740 510, .504 46, 392 220, 3H0 76, 74H 72, ()3(> 104,940 2.53, (KiH 4HH, 344 m. 3H(( 341,636 34H,H>^4 710,910 172, 364 9H, 384 29H,.5(IO .53, 544 138,912 1864-'65. Horned callle Hark tor dyeinjr, Ac. JJrooni corn Hulter ClUH-HO Colti.:: wool Flour Ilarley and rye Oats .5.50, 35t) 71,944 57, 3.52 • 0,340 2, ;{72 15* 921 >,,'2'27 273, 335 4(;o, 077 202, 026 167 10,654 8U, 068 37,681 71,439 113,083 94, 319 14,049 452. 489 75,562 122, 319 32,909 9,259 13,085 115 006 87(), 068 6, 106 514,511 14,467 17,205 12(^,^07 535, 351 70,460 21,367 75, 381 210,7/2 781,288 105, r 08 1(»2, 10 507,650 (55,(115 2,870,(525 30, 3(58 4(5, 053 12^,062 100,405 1'5,334 77,H46 5H, 0(5(5 43, (500 47,512 3(h;,(5h 8H,786 (500, 124 70.017 107,738 Iff to $870,908 COMMERCIAL RELATIONS WITH BRITISH AMERICA. 11 Comparative statemevi of values of leadhtg articles, 8fc. — Continued. Articles. Lard Stoiu'8, unwTonprht Timber nuil Innibor, unnianufactureil. Tobiu'co, iiiuiiauuf'ai'tured Wool Otber articlt's Coin and bullion 1854. $35, 520 8, 428 2, 176 67, 108 1864-'65. 2,] 00, 688 $86, 408 40, 258 130,6.54 277,007 174, 070 1,. 500, 345 4,7(58,478 Total I 15, .533, 097 19, 589, 055 The Cunadian roturns have been cho.sen as the basis of the foregoiiij^ state- ments, siiic(! the officers of the Canadian customs .ire understood to estimate values exclusively in jifold. Of thetotal trade hi 1854, amounting to S69,30.1,3l2,a valuation of $ii4, 182,096, or 34 per cent., was with the United States. In lS64-'65 the aggregate was S86,H01,62(), of which $42,528,746, or 48 per cent., was with the United States. The articles exelusi.'cly exported from Canada to the United Suites were, in 1854, pig and scrap iron, fresh tish, scantlnig, railroad ties, horses, horned cat- tle, swine, sheep, poultry, hides, eggs, hops, malt, hay, haxseed, manufactures of India-ruliber, straw hats, and Indian bark-work; but in 1864-'65 the list was greatly reduced, consititing of pig and scrap iron, firewood, railroad ties, saw- logs, sh('e])-pelts, venison, balsam, malt, cotton manufactures, ground plaster, and sugar box»'s. The values of these articles will be found iu the first of the foregoing tables. In a review of the comparative statement of Canadian exports, we first notice that the products of the mine and sea wen^ nearly the same in 1S54 as in 1865, while the Imnher trad» has advanced from 82,083,544 to 85,008,746, a large increase, but not more than the constant and increasing demand of American markets would have vaused in any event. Since the abrogation of the recipro- city treaty. American ]»urcliasers are paying higher rates for Canadian tiinber, and in larger ([uantities, than in 1865. notwithstanding the necessity of paying a duty of 20 jter cent, on the frontier of the United States. Il is in the division of "animals and j'roduce" that the most remarkable contrast appears lietween the trade of ISti.'j and ten years ago. Then the valua- tion of this class u\' exports was only 8697,026 ; now it is $7,053,079. Tho supjdy of Canadian horses during the war was as follows : Nmiibcr. Val'io. 1861 8, 198 8o67,3l5 18(52 8,606 (564,795 j^<63 19,335 1,465,540 1S64. (half year) 6,418 503,687 l'^64'65 23, 106 1,812,334 The exportation of cattle and swiiM' was no less remarkahle — 15,704 cattle, valued at •>:;s4„-,!»9 in 1861, and 59,5(56. valued 81,781,965 in 18()4-'65, while of swine the export to the Tnited States in lN61 was 27,091, valued at 8161,279, and in lS{;4-'(i5, 4(i..'!05, valued at 8613,99.3. The movement of wool and sheep, having, jierhaps, less connexion with the commissary of nn army, is still worthy of ob.'^ervation IVoni the relation to maimfacturing industry, ''"lie exportation of ehiM'p to the United States waa as follows : ^T w COMMERCIAL RELATIONS WITH BRITISH AMERICA. Number. 1S61 54, 941 1862 88,141 1863 72,208 1864, (lialfyenr) 10,316 1864-'65 69,931 The exchanges of wool during the same period in value were : To Canadn. 1861 $197,895 1862 333, 570 1863 208,858 1864, (half yoar) 118, 320 lSG4-'65 174, 071 Total 1, 032, 714 Vnlue. $149,220 217,724 198, 651 48, 326 253, 044 To rmtod states. $424, 930 724,815 974, 153 392, 373 1,353,168 3, 869, 439 It appears from tlie Canadian trade returns that during the half year closing December 31, 1865, 15,000 horses, 103,810 horned cattle, (swine not stated in the newspajjcr report at hand,) and 158,000 sheep were exported to the United States ; the total value of this class of exports being $7,923,355. A Canadian newspaper, the Globe, of Toronto, adds that " the cattle are wanted not only for beef, but for the manufacture of butter and cheese, now fast becoming lead- ing articles of export to England." At the annual meeting of wool manufacturer: held at Philadelphia, September 6, 1865, Mr. J. L. Hayes, secretary of the association, remarked as follows of the trade in sheep and wool witli Canada : " Tl»e wool known in our markets as Canada wool consists wholly of fleeces from the long-wooled Leicester and Cotswold sheep, and crosses of tiiese breeds with the Southdown, recently introduced from England. Mr. Stone, of Guelph, Canada West, has taken the lead in the introduction of these sheep. 'Ihc flocks in CaJiada are small, averaging from twenty to fifty head. It has been estimated that C. 000, 000 pounds of long wot)l will be grown in 1865, with a consumption in the United States of 5,500,000 pounds. The success of the Lowell Manufacturing Company in fabricating alpaca goods from Canada lustre wools has demonstrated that the wocd does not deteriorate on this conti- nent. The Canada wo(d has been found eijual to tlu^ best English lustre wool, imported expressly for comparison. The free wool of Canada has been an in- estimable boon to oiir worsted manufactiirers. It does not compete with the production of our farmers, as we grow hardly mons than 200,000 pounds of long M'ool, while Canada consumes 300,000 pounds annually of our clothing wool. It is not ])ossible that our own production of long wool will keep up with the demand." The wool here described Is now subjcict to a duty of twelve cents per pound and ten ;'*'r cent ud ralorcm, \U value being seldom b(*l<)W thirty-two cents; and sheep, ni^ well as other animals, are charged with duty at the rate of twenty per cent, ad rnlurem. It is too soon to dettu-miue how this taxation will afiect the course of trade. Proceeding to the consideration of "agricultural products" exported from Canada to \\w United State-*, we first notice " barley and rye," of whicii a valuation of $94,185 in 1H54 had become $2,870,870 in 18G1-'6.V This large sum was UKtstly paid for C'/inadian barley, which is described, in a recent memorial of brewers to Congress, as of a superior (|nalify, usually commanding twenty to thirty cents ner bushel more than barley grown in the United States. The Canadians cultivate the four-rowed variety, but their great advantage is tho A. VnliiP. $149,220 217,724 198,651 48, 326 253, 044 COMMEKOIAL RELATIONS WITH BRITISH AMERICA. 13 i To United StnteB. $424, 930 724,815 974, 153 392, 373 1, 353, 168 3, 869, 439 f year closing not stated in to the United A Canadian nted not only jecoming lead- lia, September [ as follows of oily of fleeces )f tlie?e breeds me, of Gueliih, (fheep. The It has been 1865, with a lUccess of the from Canada on this conti- ih lustre wool, liiw bet;! an in- ipt'te with the pounds of long clothing wool, p up with the •ntr« per pound [rty-two tents ; Irate of twenty [tiou will affect [exported from |.," of which a This large I'tent memorial [ling twenty to h States. The vantage is the perfect adaptation of soil and climate to the production of this cereal. At present, not more than one-third of the amount required by manufacturers of nuilt liquors is grown in the United States ; and the statement has been made that if the barley now grown in Canada was reduced ono-half, it would cripple the manu- facture of malt liquors to such an extent as to involve a loss to the United States treasury, auimally, of about $2,000,000. Barley was free of duty under the reciprocity treaty. The present duty is fifteen cents per bushel. In 1854 Canada exported flour to the Unittid States of the value of $3,370,316, reduced in 1S64-'G5 to Sl,916,255. This large exportation of flour before the reciprocity treaty indicates that Canadian white wheat will always be required for domestic consumption in New England and New York, notwithstanding the duty of twenty per cent. Another singular fact is, th.xt the value of wheat exported in 1S54 was $2,S70,r52, while in lS64-'65 it was only $1,227,363, an excess in the former year of $1,642,645. xVdd this sum to the amount in which the export of flour in 1854 exceeded that of lSG4-'65, and the aggregate more than balances the difierence of agricultural products which is recorded in favor of lsr,4-'65. The ob.*ervations suggested by the list of exports from the United States to Canada will occur in connexion with the next topic of inquiry, viz., " the nature and extent of the changes made in the Canadian taritf since 1854." THE CANADIAN TARIFF. })y the Canadian tariff of 1849, spirits, wine, tobacco, tea, coffee, sugar, mola nes, spices, &c., were charged with duties partly speciflc and ])artly ad Vd/orctn, which were gradually made exclusively specific. On the 26th March, ls.'i9, this was altogether ciianged, and ad ralorim duties, ranging from thirty to oi, substituting ad valorvm rates, the Cana- dian purchaser finds it for his interest to trade directly with l^unqieand countries producing the ai tides in (jucstinn. in regard to American niaiiut'actures, the Canadian tariff is not immoderate, and is of iinparlial applicalin:. There is no discrimination in favor of English iaiirics, wliile the vicinity ol lie American mauut'acturer affords liiin a positive ndvanta'jr, A large class n, uticles, consisting;' of iron, steel, metals, and arti- cles entei ,g into the consli alion of railways, houses, ships, and agricidtnral imph ine s, are adniilted at I') per cent, duty; but 20 per cent, is the prevalent rate U|ii niiniufactured artie'i s. Excluding the class of luxuries and stimu- lants lii ; ineiitioncd, the average taxation by Cainida in l8(i4-'()5 upon dutiable goods M ,is In. 7 per cinl.; while of the total importations, 4.'J per cent, were of articles free of duty. ( (f course this large percentiige was owing to the t)pera- tioiiof llie recinrocitv treatv, b\it it is likelv to contimie. 'I'he axerajjc percentage! on goods paying duty by Canadifin tarilfs was 13 jier cent, ill is.yj, |9 per cent, in 1859, and during the last fiscal year ending JniM' :i(l, isti.'i, it was 22.;: per cent. The rate of taxation iiy the .Vmerie.iu tariff upon duti.'ible goods has been ascertained by l)r. William Elder, statistician of the 'I'reasury Department, at the following averages for corresponding years; In 1854, 25.6 per cent. ; in 18.'»0, lit. 5 per cent.; and in Js65, 50.1 per cent. Tlic Canadian advance of rates is h'srttlian might have been antici|iated, when Attention is directed to the public debt of Canada, which was otlicially stated iu 1864 at the sum of •':?i7G,22:],()6l. Of thisamnimt the following expeiidituies by the Canadian government have beeu for the constructiou of canals and railways, 14 COMMERCIAL RELATIONS WITH BRITISH AMERICA. winch have been of grejit value to the western States as commtmications with the ocean and the Atlantic cities : 1. The St. Lawrence canals, by which vessels of 300 tons burden avoid the rapids between Kingston and Montreal $7, 406, 269 2. The Welland canal, passing vessels of 400 tons burden from Lake Erie to Lake Ontario 7, 309, 849 3. Chanibly canal and river Richelieu, enabling vessels to pass from the St. Lavvrenrc into Lake Champlaiu 433, 807 4. Lake St. I'etcr improvements, dredgir.g a channel for sea-going vessels drawing 20 feet of water to Montreal 1, 098, 225 o. Harbors and light-houses, mostly in aid of the navigation of ^he lakes and the St. Lawrence 2, 549, 617 6. Grand Trunk railway 15, 312, 894 7. Great AVestern railway, from Niagara to Detroit 2, 810, 500 8. Northern railway, connecting Lake Huron with Lake Ontario . 2, 311, 666 9. Interest on railway debentures, &c 9, 642, 025 Total 49, 254, 852 Fully fifty per cent, of the debt of Canada has been assumed for objects which are directly for the advantage of the American communities in the valley of the St. Lawrence — a consideration which should restrain any violence of remon- strance against the fiscal legislation of Canada.* The relations of that legislation to exports from the United States to Canada will appear from the followi:ig statement, compiled from Canadian trade returns, which gives our exports for 1854, the year before the reciprocity treaty; for 1859, or midway of the operation of the treaty and undt^r the advanced Canadian tan'lt'of that year, and from 1861 to 1865, or during the period ot the war, ex- hibiting separately the amounts of free and dutiable goods and the average rates imposed by Canadian tariffs on dutiable goods : Ycaid. DiUiiililo goods. Rute per cent. 1K">4 1 , $->,'>-H>Jtr,o J <>!» : ;^, :>.")(), .'> I,') 1 "T) I \M, T,',', 7.'..". ]"(;•,' I'.t, ( • 1 1 , :{74 H(i:i 1 n», i:m, !»()(•) JH)4, Oiiiii'vfiir) : H,-jj'.t,ri(;i» 1 HI i-i-'( ».')...'. ir),."»Hi», or.5 «>, :uir ;w() ]:i. 1 It, (i:tti :{7i 1H.9 K, :{-!(! (>:t:{ 19.0 <>, 1 •,'•', 7."^:i U>.4 :«, ItTI, :ti)(; U2. ") •> IT.f, •t;;i 21.4 ■i, Wl, 2-J(i 22. :i Of manufactures and foreign merchandise there was a larger importation to Canada from the United States in 1?S54 than in l8(J4-'()5, lor reasons already assigned. The leading articles taken by Canada in the latter year are C/al, mostly antliraeile, ^544,. ill ; meats, !sS7G,96!s ; Indian corn, largely for distil- lation, >''/Nl,2NS; wheat and Hour, ."is.'j, 55M, 749 ; cheese, .s.iOG.lils ; tobacco, un- manuliielured, ,'^277,()()7, and wool, 8171,070. Total in 1801 '05, .56,510,211. Total of same artichiS in 1854, r of finiiiicc, insists that the Ciinudian tnritf in not protiMiivc, in the usual sense of that term; but it is easy to see tLutMr. liuchanuu's views are nmkinfr way in Ciiuida. COMMERCIAL RELATIONS WITH BRITISH AMERICA. 15 vtions with !7, 406, 269 7, 309, 849 433,807 1, 098, 225 2.549,617 15,312,894 2, 810, r)00 2,311,666 9, 642, 025 49, 254, 852 l)j(C'tH wliicb valley of the ;e of reinon- is to Canada rade returns, y treaty ; for ;ed Canadian the war, ex- iverage rates lo Rate per cent. , :w() i:5.l ,:{7i 1H.9 ,{\X\ ID.O , T.si H».4 . \\'M\ «•,». 5 ,'.•:;) 21.4 ,ii-Jti ii'2. :j iportation to xdirt already I'iir are c 'al, ■ly for didtil- li»l)iUTO, uu- .50,510,211. lief nnalypis () the follow- viiiii't' ot duties 1, is till! ^troiiii- l^iiiiiu witii tiie oil!* upon trnilo imtiiiin taiitl' is cluumu's viowB ing divisions of British America: 1, New Brunswick; 2, Nova Scotia; 3, Triuce Edward Ishmd ; 4, Newfoundliind ; 5, Central British America or the territory of the Hudson Bay Company northwest of jMinuesota ; and 6, the Pacific colonies of British Columbia .lud Vancouver's island. NEW BRUNSWICK. The area of this province is 27,700 square miles, or 17,730,560 acres, of which 7,551,909 had been disposed of by sale or grant on January 1, 1864, and ! 885,108 acres are under cultivation, A large portion of this surface is covered with dense forests of pine, hackmatac, cedar, ^:c., which furnish immense quan- tities of timber, both for export and ship-building. Coal and iron ore are abun- dant — the former said to extend over 10,000 s(|uare miles, or about one-third of the area of the province. The fisheries of the Atlantic coast are inexhausti- ble and very profitiibie. The foHowing statistics of New Brunswick are compiled from the latest official reports. The revenue for the fiscal year ending October 31, 1864, was $1,060,815; for 1863, $844,894; increase, $215,921, and derived as follows : 18():{, J8()4. Railway impost $138, 300 $181, 944 Import duty 585, 069 743, 315 Export duty on lumber 61, 834 67, 640 Territorial and casual 23, 29.J 30, 738 Miscellaneous 36, 398 37, 128 Total 844,894 1,060,815 Importations for 1864, dutiable $;>, 692, 488 free 2,252,864 Total 8, 945, 342 Rate of impost on dutiable goods 13.57 i)er cent. Rate of impost on all goods 10.15 per cent. Iniportatidus from the United States $3, .31(5, 824 Exportation-! fo all coutitries 5. 003, 897 Kxportations lo the LInited States 1, 266, 148 The exports to fhe United States are largely of lumber, but otherwise the trade with this country is of the same nature as that of Nova Scotia, which will be givaine otlicer remarks that the only iu^.l^llee of coal uiining in Xew Brunswick is by an American ci)ni[)any. In regard !<» the ship-building interest, it is stated by the same autlmrity that the number of vessels built in New Ibuuswick during forty years has been 4,169, measuring l,5S4,;{!SG tons, and (he structures of 1804 were nuich above the average of ihosi; years. The fiindiil debt of New Brunswick, mostly incurred for railroads, was 15,702,991 in 1863. NOVA sroTlA. The pcnin^uln of Nova Scotia, including the ialand of Cape Breton, has an IT T»i 16 COMMERCIAL RELATIONS WITH BRITISH AMERICA. area of 18,746 square miles ; in acres, 11,996,440, and probably no equal sur- face of the world combines so many natural advantages. Among these are a fertile soil, a climate softened by insular position and the vicinity of the Gulf Stream, capacious harbors never closed in winter, immense coal-beds accessible by vessels, and a productive gold district, besides deposits of iron, copper, man- ganese, gyppum, and slate. Although agriculture is prosperous, yet seafaring pursuits so largclj' engross the people that large importations of breadstufifs and provisions are made from the United States. The following statements of the trade of Nova Scotia are oflScial for the year ending September 30, ' 865 : The amount of custom^ "lud excise duties collected in 1865 was $1,047,891 against 8990,169 in 1864 — an increase of $57,721. The amount in the hands of the receiver general at the close of the last fiscal year was $222,932 against $225,150 at the end of Septembei-, 1864. The income and outlay for the fiscal year 1865 were thus nearly balanced. The imports of the province have been rapidly increasing for the past four years. The official figures for those years are, 1862, $8,445,042 ; 1863, $10,201,392; 1864, $12,604,642 ; 1865, $14,381,662. Hero is an average increase of $2,000,000 a year for a province containing only about 350,000 people. The imports fur 180 4 and 1865 were divided be- tween the various countries with which the Nova Scotians trade as follows : Countries. Great Brifuin Uritiah North Auifriuuu colonies liiitish West Imlies I ruitfcd Stiites Other countries Total. 18G5 $r),;{i5,98H ],r)Ui,773 ()(>7, '^(M) 4, :wr>, H57 1,479,838 1804. $5, 407, 843 1,188,74(5 44(t,:()7 4, 303,0 1 H l,234,*i70 Increase. $908, 145 404,0!>7 2'2(5, 439 22, 841 21.'), 568 14,381,«j()'j 12,574,«34»' 1,807,020 The imports Irom the United States in 1865 ure classed thus: Subject to duty $1,180,160 Free under reciprocity 1,747,306 Free under tariti" 1,392,391 Thone artich'S free both under the tarilf and under reciprocity are put in the tonncr clafH, Nearly the whole of tlie imports which are classed as free of duty uinlcr the reciprocity treaty cont*isted of wheat Hour; no less than $1,529,819 of Hour having been imported. The imports — beef, ])ork, and hams — from the United States, (hiring the year, were valued at $170,282, and of butter and lard at ^23,051. The principal dutiable articles imported from the United States were : Cordage and cmvas $2 i , 966 ( iittons nnd woollens 102, 656 1 M'tigs and patent medicines 43, 990 Leather and h'atiier manufactures 137, 609 Hardware 243, 650 31<.lasses , 10, 443 Rook and coal oil and burning Ihiid 93, 477 I'aper inaimfuctures, vVc 22, 994 Spirits 46, 447 Sugar, raw and refined 17, 326 Tea, black 65, 805 Tobacco, mamifactured 82, 520 Woodware, manufactured 118, 804 k. COMMERCIAL KELATIONS WITH BRITISH AMERICA. 17 equal Bur- these are a af the Gulf is accessible opper, man- et seafaring adstuflfs and for the year $1,047,891 in the hands ,932 against for the fiscal he past four ,042; 1863, ie containing divided be- 3 follows : Increase. $908,145 404,027 2-2(;, 439 a-i, 841 2 1. ^ 5(58 1,807,020 $1,180,160 1,747,306 1,392,391 ,ro put in tlie free of duty h $1,529,819 ns — from the I' butter and the United 824,966 1G2, 6r)6 43, 990 137, 609 243. 650 10, 443 93, 477 22, 994 46, 447 17, 326 65, 805 82, 520 118,864 Tho principal articles free under the tariff were : Flour, other than wheat S102, 315 Fisli, all, and oil of 34, 793 Grain 23, 142 Hardware 17, 843 Hides and skins 20, 828 Printed books, &c 35, 821 Salt 2, 119 Stone, including liine 14, 754 Tobacco-leaf 53, 841 Vegetables 12, 274 Woodwarc, manufactured 10, 576 The total exports of the province for the last fiscal year were valued at $8,830,639. The loading articles were fish, coal, b'.mber and its manufactures. A portion of the exports, however, consisted of articles not produced in Nova Scotia, which had evi».' .'utly been imported and then sold into the other mari- time provinces. The table accompanying the imports of 1864 and 1865 is as follows : Articles. Animals Heft' iiiul jtork IJutloi and liird Coat (.;odfish llcrriiifjs aiul alewives Mackerel Salmon aiul trout, Scale fish Other iisli Fiuit (■iraiii (iypsiim Hides and skins , Oil — viz., tisii oil Stone, building Vejrctahles Wood ware, (uniiianufac tared) I'nenunierated Foreifiju productions Total Totttl increase. Value 1864. Value 18G5. $28;$, 344 $201,508 49,817 92,764 149,823 114,133 80G,3I4 1,253,650 1,278,582 1,411,377 218, 04() 452, 337 1,107,039 1,077,273 ()8, 829 ()2, 177 153,310 214,574 2S,734 64,528 35, 3-<0 30, 454 4(i,.525 50,909 43,750 45, 350 51,995 74,071 HiJ.7'.)2 194,505 32. 902 19,382 12 • 2a7 183, ';52 855. 840 702,585 240, 337 619,971 1,397,221 1,840,193 7,172,817 8, 830, 693 l,()57,87r) Deducting the foreign productions, it would appear that Nova Scotia exported about $7,0()(),000 of licr own productions last year. The exj)orts were divided thus : Great, Ikitain $764,742 Ihitish North American colonies 1,701,054 Ibitish West Indies 1,906.459 United States 3,619,797 Spanish West Indies 389,894 Other countries 397,747 8,830,693 II. Kx. Doc. 128- ■iOM-H:^ 18 COMMERCIAL RELATIONS WITH BRITISH AMERICA. Tlic piincipiil articles exported to tlie United States were — Coal $l,0S-..745 Fi^h of all kind;' 1,363,799 Fish (.11 117,862 Grain of all kind;^ SS,639 Gypsum, lime, and plaster 10,580 Hides and skins 23,592 Stone 1 5,503 Vegetables, ineludinp: ))Otatoes ] 48,734 Wood and lumber of all kinds 100,044 Coal and Imnlier are such necessities to New England, tliai the supply of those articles will not probably bo diminished by the abrogation of the re- ciprocity treaty. It is also alleged that the high-priced soft pine lumber of New Brunswick, hitherto furnished exclusively to American manufacturers, must continue to be exported hither, whatever the duty, as " it i.s required for fine work and iinishiiig purposes, and there is no substitute." The shipping of >iova Scotia is now registered at 3,898 vessels, worth $1:5,347,500, of which 491 ves.sels, valued at S2,923,058, were -registered during 1805. These earn freights in all directions, and are- sold abroad very frequently. They are built and held by joint stock associations, often in moderate shares, and constitute a lucrative and increasing branch of business. The tariff of Nova Scotia has always been low — an average of 10 per cent. ad ra/nrcm. Ikccently, however, since the abrogation of the reciprocity treaty, the parliament of the j.rovince have advanced the duties upon spirits, wine, and tobacco fully one-third, and imposed duties upon articles which were free under the reciprocity treaty, as follows : Bacon, per 100 pounds S2 00 Beef, per barrel 100 Bread, navy or pilot, per 1 00 pounds 20 Butter, p. r 100 j.ounds » 1 75 Cheese, per 100 pounds 1 00 Flour, (wheat.) per barrel 25 Hams, jier 100 pounds 2 00 J^ard, per 100 pounds 1 75 Onions, per 100 pnuuds 50 Pork, per barrel 1 00 Tobacco, (umianufactured, per pound 05 If the coiitederatiou of the British provinces is accomplished, removing all interm<'diatc duties, and con)munieations with Canada, are facilitated by railway and a St, j.awnnce line of steamers, a material diversion of trade from the Unitid States is likely to occur. The cotu'se of trade, as developed between New Kngland and the maritime provinc<'s during lh(! last ten years, has been well described by Hon. Joseph Howe, of .Nova Scotia: " The small vessels which bring to the United States plaster, coals, grindstones, cordwo()d, fish, and pntatoes from the maritime provinces, take back furniture, boots and shoes, India-rnbbeis, books, prints, hats, jiatcnt medicines, agricultunil implements, and bnndrrds of other eonNcnii'nci's, necessities, and Inxiiiies. * * Ameri- can maMufactnics arr adniitti'd Id cnlry at nu-re revenue duties of fnun ten to twelve and a I. /df per cent. Ibitish tnanui'aclin'crs jiay the same. The mill owner in i.uwell (■.•in [ilace iiis good.s in Halifax nuivket, paying the charges of tranfi>ortation i.f les< than live hundred miles, while the mill owner in Man- chester is eiiin|ielled to pay the same out at the surface, and probably 50,000,000 tons of coal can be raised from them without going below Avaterdevel. There are several other deposits in Cape Breton Avhich have only been slightly worked. In -"ference to the Cumberland coal-fields, Mr. Dawson, in his Acadian geology, einarks : " These; veins form reserves of coal, waiting their full development, till railways extend across them, or till do- mestic manufactures demand a supply of mineral coal in the provinces." The railway now in progress from the European and North American railway, in New Brunswick, to Truro, will pass over a portion of this coal-field. The following statements will show the amount raised and sent to market from these coal-fields for the past ten years : Vein's. Tons. 1S5G 291, 934 1S57 267, SOS 1S5S 286, 618 1S59 267, 49G 1860 304, 129 1861 334, 548 1862 393, 631 1863 424, 425 1S64 500, 000 1865 632, 854 With proper means of access to these mines, then; is no reason why within five years the amonnt of coal raise I and sent l'> market from the provinces should not exceed 2,()()0,0U() tons annually. The means of sending tlii-into market arc Qulimited, ;is llie oecui is tlii'ir liighway. In rcrcrciuM^ to tlie .•^ultject of coal mining in Nova Scotia, the chief commis- Bioner nf mines, ^Ir. Hamilton, in his rejiort, says: "There are now thirty C(d- lieries in operation in Xova Scotia. Some of tlicse are only hanly (i|)eiied ; but with o.ie or two exiH'plions, works are vig(»rously prosecuted in ;ill of ihem, and with good prospects of great .•ind e;nly extension at an <'arly day. The to'al quantity of round and ■'hiek c lal sold from tli" mine-* fir the ye ir i-niling 301 li Se|»tember, 18(55, was (>.VJ,851 tons. In addition ti» tlie territory of the general ininiiur fis-'deiati on, there are now thirty-one square miles of territory under coal-mining leases. The extent nf jicres under license amounts to 1,920 iqu.ire niile-j. 'I'he spirit .'uid activity e\liiliited in carrying i«n exphu'ation.* FT ^Wl 20 COMMERCIAL RELATIONS WITH BRITISH AMERICA. upon tlic greater mimbor of" these areas laider license, and the success which in many instances atteiifl such exploration, indicate an early and important in- crease in the number of collieries in Nova Scotia. I need scarcely observe that while the products of our mines are thus rapidly increasing, and promise to do so for a long time to come, the demand for these products in the market seems to increases in a much more rapid ratio."* The year 1865 has also demonstrated the permanent productiveness of the gold mines of Nova Scotia. These are under the direction of the commissioner of mines, and the government reserves a royalty of three per cent, of their gross receipts. It appears from the commissioner's rejjort that the aggregate amount of gold upon wliich royalty has been paid during the year exceeds that of the preceding twelve months by about 33 per cent. The quantities are : for the year ending 3('th September, 1S65, 24,867 ounces ; for the preceding year, 18,744 ounces ; increase, 6,123 ounces. There is also an increase in the average yield of gold per ton of (juartz of about five per cent., and a very considerable advance in the amount of the yield for each man engaged in mining. In 1863, the average yield per man was 95 cents a day ; in 1864, it was $1 30, and in 1865, $2 12. In these calculations the gold is rated at $18 50 per ounce, which is below its maiket value. The value of gold produced last year Mas $509,080, (paying $18,038 in rents and royahies;) in 1864, $400,440; in 1863, $280,020, and in 1862, SI 45,500. t * ^ee report of the joint stand inpr comniittce of tlio Massacliusotts legislature in favor o State aid to tbc Euroiican aud Moitli American laihvay between Boston and Halifax. t The following is the coniniissioticr's statement of the number of liands employed in these mines, the tons of quartz raised aud crushed, and the daily yield of gold per man employed for the jiast year : Number of bauds employed : Yearly aggregate. 1805 -212, litilj lHt)4 i>.')*i, 7ii(» I8(i:j -i?;}, mi IcW 156, ;{uo Total H!).-.,:ilO Daily average. 18(55 500 18()4 877 18(5:5 810 IHli-00 Mcau 156, 482 Quartz ciushed: Yearly aggregate. 1865 "48,84(5,(5110 1864 42,887,(586 18(53 :i4, 150,4((0 1862 i;{, 480, (00 Total I :ii), :«54, (58(5 Average yield gold per 100 lbs. Dwt. Grs. 0. 902 22. ;512 19.(547 0. 790 18(35 1 IH54 18(5;} .. 1862 1 Mean 22. 805 Daily yield of gold per man : 1865 1864 186:5 Dwt. . 2 . 1 1 Grs 8. :J71 14.0:50 0. 662 iy«ii 22.385 Val. in gold. $2 :5;i 1 58 1 02 94 COMMERCIAL RELATIONS WITH BRITISH AMERICA. 21 !ss which in nportant iii- abserve that, romise to do arket sceiiia ;nes8 of the ommissioner if their gross ount of gold he preceding year ending ,744 ounces ; yield of gold ivance in the , the average 1865, $2 12. I is below its ,080, (paying 0,020, and in iiture in favor o 1 Halifax, iiplojed in these ir man employetl The fisheries upon the coasts of tlie maritime provinces will always be a leading interest, and is especially bo to the people of Nova Scotia. Their im- portance was t'elicitoui^ly illustrated by Mr. Howe, in a speecii at the Detroit commercial convention of ,]uly, 1SG5. " You have behind and around you here," he; said, addressing an assembly of Americans, " bonndloss prairies, which an all-bountiful Creator annually covers with rich harvests of wheat and corn. The ocean is our jirairie, and it stretches away before and around us, and Almighty God, for the sustenance of man, annually replenishes it with fish in myriads that cannot be counted, having a commercial value that no man can estimate. The fecundity of the ocean may be estimated by the fact thit the roes of thirty codfish annually replace all tlie fish that are taken by the British and French and American fisliermen on the Banks of Newfoundland." Under the late reciprocity treaty the interests of New England connected with these noitl;east fisheries were materially advanced. The fishing industry of the Atlantic States, exclusive of the Avhale fishery, amounted in 1860 to $4,500,000, of which 83,000,000 was taken upon the coasts of the provinces. IMMNCK KDWARD ISLAND. Tlie area of Prince Edward Island is 2,100 s(|uaro miles — the least of the provinces, as Dtlaware with 2,120, and Rhode Island with 1,306 square miles, are the least of the American States. The population of Prince Edward Island, in 1864, Avas 85,91)2, or 40.95 to the square mile; income, §214,448, of which ■$162,733 was from customs at an average tariff rate of 12 per cent. ; im- ports, 81,638,946 ; exports, .S982,699. The trade with the United States was 24 per cent, of imports, and 50 per cent, of exports — the general character of tije trade beina; similar to that of Nova Scotia. Daily avenipe. .'iUO 877 810 082. 58:5 7I7.3U5 lily av. per man. ... '2:54,71)1 ... lG8,0r)0 ... 124,807 .... 8(),4I0 .... ] Tit), 482 Toia per 100 lbs, Dwt. Cirs. 1 0. 1)02 22. '.{12 iy.«)47 0.7'JO 22. 80.") Viil. in Rold. n $2 :w l«) 1 58 1)2 1 02 94 \F.WKOUNDLANO. The area of Newfoundland is 40,200 square miles; population in 1864, 137,000; revenue, $518,781, of which $504,037 was from customs at an average impost of 11 per cent. ; imports, 85,175,251 ; exports, $5,380,951. Trade Avith the United States is 33 per cent, of imports, but a smdl proportion, not more tiian 5 per cent., of exports. IUtITI.su AMERICAN COLONIES EAST. As a sequel to the foregoing details, which have been gi\'on with special reference t) the trade of each province with the United States, som:; additional statements representing the coml)ined resources of Canada and the maritime provinces have been compiled from the debates in the Canadian parliament upon colonial union. The united population of Canada, New Brunswick, XoA-a Scotia, Newfound- land and Prince Edward Island, in January, 1864, was 3,628,151. Their public reventxes for 1864 were $13,260,000 ; expenditures, $12,507,000. Im- ports in 1863, 870,600,963 ; exports, 866,846,604. Total trade, 8137,447,567. Of the public domain, 45,638,854 acres have passed from the governments of these colonies, of which oidy 13,128,288 are under cultivatiiiu, wliile the area not granted or sold is 214,282,817. According to the census of 1861, the agri- culiural product of tlui United Provinces Avas $150,000,000, and the assessed value of farms, $550,000,000 ; Avhile in 1862, the manufacture of lumber reached 772,000,000 feet, and the exjjorts of timber were of the value of $15,000,000. In 1863, 628 vessels, Avith a capacity of 230,312 tons, were built, the sales of ehipa in that year amounting to 89,000,000 ; Avhile the united tonnage of the {)rovinces is 8,530 vessels, or 932,246 tons. This fleet is distributed as fol ows : COMMEKCIAL IJKLATIONS WITII DRITlSIl AMERICA. Vessels. 18G4, Canailii owned 2, 311 1SG3, Nova Scofiii owned o, 539 1SG3, Now Brunswick owned 891 1SG3, rnnci< Edward Island owned 3G0 1863, Newfoundland nuned 1, 429 TotJil S, 530 Tons. :>87, 1S7 309, r);54 211, G80 34, 222 89, G03 932, 24G Till? exliiliii rank^< IJrilirli America Ji.s the iiiurlli niaritimo coiumunity of the world, yielding; piecedenee only to (Jroat Britain, United States and Franco. In 18G3 the forei,un ex])orty re])resenlinf^ i^hip-buildinj^ !ind iisjhing intcrost.s wore 81G, 69(),021. Proniinence in lhi.s connexion Mhonld also be given to 2,500 miles of railway, 4,000 niiles of electric toleg-rapli, and 100 niilcH of ship canals * The time pmi ho readily anticipated when the Canadian forests will l.e indis- pensable to the American people. They already supply many cities and districts, which are remote; Irom the ]\[aine and Michigan pineries; and th(> forests of "Wisconsin and Minnesota, however extensive, will prove inadequate to meet the wants of the ^Mississippi and ]\Iissouri valleys. Ileference has been made to the forests of Ne'W lirunswick. Those of Canada are — Sij. mill's. 1. The 8ao-uei);iy territory, or the valley of the Snguenay river, rich in white and red pine, spruce, birch and taniarac 27, 000 2. The St. Maurice region, northwest of the city of Quebec, contain- ing large quantities of white, red and yellow pine, .spruce, birch, maple, elm, ash, and tamarae 21, 000 3. The valley of the Ottawa, hitherto the principal seat of the lum- ber trade of Canada, \\hich has perhajts denuded 20,000 square miles from an aggregate of no less than 87, 7G1 Total 145,701 Hon. James Skead, of Ottawa, C'anada West, proceeds with the enumeration of lesser districts — 2,3.")0 square miles between the Ilideau canal, the St. Law- rence and the river Trent, and districts east of report, rebruary 7, 180.3. lA. COMMEKCIAL RELATIONS WITH BRITISH AMERICA. 23 Tons. 287, 187 son, -554 211, C80 ;{4, 222 S9, (30:i 9:J2, 21(J iiunity of tlu> rrunce. lu iiteroHt:^ were vcn to 2,r>00 ship cfiiiiilri "■ will be iiulis- ly cities ami •ies ; and tlio •e inadoquato :?ncc has been Hf\. milos. ;ii m ;aiii- irch, hira- uaro 27,000 21,000 87,701 140, 701 tnuinoratioii tlie St. Law- u\ west of the th of the St. t procluciii<; these timber !\Y lit of such a irces, will bi; n- discussion, s(3r,, 500, 000 8, 000, 000 7, 000, 000 ;j, 250, 000 1,941,425 S5, 091, 425 nada, lit the port- sion Hill I'ailiii- Itu'sentcil hy a. i\uni coufcdiTiv- This adjustincnt is etH-cted tipon the basis of 825 per capita of pojmlation. Tlie debt of Canada is 827 per capita; that of Nrvu Scotia and New Bruns- wick less; but lialiilitics in behalf of railn>ads have buen assumed by these provinces, which M'ill make the provision at the rate of .*>25 per capita con- venient and even necc.'^sury. Canada locali/cs the remainder of its d('l)t. URITISII AMKRICA WK.»T. These are results of French and ICiij^-lisli occupation of the American North- land durin<; three centuries. It will be next ui order to look beyond the sources of the St. Ivawrence, and consiiler the situation and prospects of British America west. Take the mcM-idiau of OO'' west of (irreenwicli, which is the Avestern boundary of Canada. If eastward we have found the area of live provinces equal to 419,315 s([nare miles, or 208,280,800 acres, it will not be diHicult to establish that west of the great lakes there are more extensive districts, which, by soil, climate, and mineral resources, are equally suitable for settlement, and which may be thus enumerated: 8ve secured general prosjjcrity with frequent instances of aWuence; while the nuiherous clnnches and schools sustain a high standard of morality and intelligence. A district on the ll(>d river from the international boundary at IVinbina to the mouth of the river in Lake Winnipeg, and upon the Assini- boin river for a distance of sixty miles west of its junction with the lied river at Fort Garry, has acquired a civil organization under appointments of legislative councillors and magistrates by tin; Hudson Bay Company, which is officially designated as "Tlni Colony of Assiniboia." (ioods are charged with ati impost of four per cent., whether brought from Kurope or the United States. Land can be purchased by any one at seven shillings sterling per acre, with liberal credits and at low interest. The American collector ;it Pembina, !Mr. J. Leinay, reports that during the year ending December iJl, 1SG4, the imports at Selkirk from Europe and Can- ada passing in bond through the United States were valued at $'i^)2,^5•2. lie also returns $45,457 iuij)orted irom Minnesota, but expresses the opinion that four times that amount ])assed into the settlement from tlu; United States. Probably $500,000 would be nn accurate statement of the imjiortation, two-thirds of which was goods of the Hudson Kay Company. Fort Garry, at Selkirk, is the headquarters of the Hi'^'son liay Company The posts of this company, more than fifty in number, occupy very commanding situaticms over the itunuMise area, 1 ounded by Hudson bay and Lake Superior on the east, the Rocky mountains on the west, and the Arctic ocean on the north. The fur trade of this territory concentrates i;s annual jtrixluct on the Red River of the North, at I'oit (Jarry, from which point by the annual voy- ages of brigades of bateaux, mercliand'se and su])plies are distributed to the most distant pust. Prior to lN5s the exp(n1s and imports of the Hudson IJay Company were principally transported by the difficult and dangerous route of Hudson bay and Nelson river, or over the numerous obstacles intervj'uing from Lake Superior to Re '. may be ascended by steamers to Fort Kdmonton, on tin,' north briincb,and to Chesterlield J louse or Old IJow Fort, on tho south branch, in close proximity to ii. i Kocky mountains. The rapids of the Saskatchewan, near the niou'.h of tin" river, can hardly be said to interrupt navigation. Open- loaded boats have been tracked (drawn witli a rope by men on shore) over the most violent portions of the ra|)ids, the respective distances biing one mile and a (juartcr of a mile, while, for descending boats, tliere is no difficulty. Loaded boats run the rapids with safety .it every stage of water. Tlie're is abundant testimony that the valley (»f tin; N(jrtli Saskatch"wan, in its entire length, is .jo superior for the purpose of agriculture to any other traverse of the western plains, that it has received and fully merits th>; designation of the "Fertile Ik'li." The regions adjacent to Fort I'elly, Oarlton House, Fort I'itt, and Fd- monton House — well-known points in a general nia'lhwestern direction from Fort Garry — are remarkably well adapted to the cultivation of grain and tin; sustenance of cattle. The scenery of the North Saskatdmwan is fully ecpial to that of the Mississippi between (Jalena and the Falls of the St. Anthony. The present agriculture of Selkirk confirms the evidence, from a variety of sources, tli.'U the districts west and northwest of the Red river valley are well adajited to settlement. l''nr the production of wheat, barley, rye, oats, peas, potatpoi' Saskatfliowaii. From this slicltcr hi thus Avritcs in gcnoral tiTins : "The cntin; rcji'ion in tlii' vicinitv of the (^astern oliain of tlie Rockv moun- tains, soi'ving as their base tor thirty or siixty miles, is exfreniely fertile, ahnnnd- injx in forests, plains, prairies, lakes, stream.?, and mineral s{)riiigs. The rivers and streams are ininuiierahle. and y widen, and their currents lose some- thin<;' 'n!H r. The limit of successfid agriculture in the noiiliein li mperate zone fihould be e.'irried considerably beyond the Sn^katcliewan valley. e. for f the Sas- iliout llireo n troo.<, ;\g inj:!^ t!io dc- ,• take tlioir .<> f!o many lUivo rapid, s lo^■(' ^■0Ine- 'lu' country avorablf for as well as 1 to ho con- li(>s(' pupcrb arriof, tlie^^o ' — ran it bo ly will r()nie . and cntcr- ii^t!^ will, ore ;;r.;/. • in the; valley.", and 1 adjoins the f L'h.nOO, to of tlie Mirf- )nal border, eldinjj; (>ven ccipitate " a " What U iw. altliou}j;b lof tlie Sas- ('-seekers in ic ?.leiuld lie r llie Kocky lliir i/indon Iv denressed Jiie ^iaeken- lonnlain:^ be- le Peace and windi*. and Mackenzie iimlain val- Dminj; an lalioii of the Jiciled. Dr. Ibii Ro:*^, M " ?nrgC'on and naturalist," was asked ■vvlint portion of the coMutry visiied by liim was valuable for the purpose of settlciueiU. Jn rejdy h(.' described "as a very fertili; valley a S(]uare ])iece of country'" bounded on the poufh by Cumberland House, and by the Athabasca lake on the north. lIi^^ own words are as fol- lous : " Tlie sources of the Atliabasca and the sources of the Saskatchewan in- clude an enormous area of country. It is, in fact, a vast piece of land sur- rounded by water. When I heard Dr. Livini>;ston's description of that country, which he found in llie interior of Africa within th(; equator, it appeared to me to be ]n'ecisely the kind of couiiuy whicli I am now describing. It is a rich soil, interspersed with well-wooded country, there beinj:; j^rowtli ol" every kind, and th(! whole ve,<;"etalile kinf^dom alive." When asked concn-niag mineral pro- ductions his rej)ly was: " I d(t not know of any other mineral except limestone ; limestone is apparent in .•ill directions. * * The birch, thi' beech, and the majdo are in abuudanci>, and there is every sort of fruit," V\'heii (juesti med further, as to the iirrowlh of trees, Dr. King replied by a comparison " with tin majruiiicent trees around Kensington ]'ark in JiOndon." Ue describcil a farm near (Jinnberland House uniler very successful cultivation — luxuriant wheat. j)otaloes, barley, pigs, cows, and hor>es. In 1S(J2 the tributaries of the Saskatchewan and I'eace rivers, on the east- ern ilaidv of the IJocky ]noun;aius, were discovered to be auriferous. A small emigration IVojn Selkirk has bi'iui attracted by the disco ly. but larger columns ol' innnigranls will probably move from the gold districts of Ibiiish Columbia on tint west, and of Moniana on the south. The placer mining on the north Saskatchewan has hiiherlo averau;ed 8") to .510 iter (lav. -lu iiiK> i>i' 'rm', coi.i'.MinA. I'litil very recently — until the discovery of the Jbg liend ami Kootonais gold-iieids in ISGG — I suppose no portion of the continent was so little known as till' district watered iiy the uppi r Coluudiia and its tributary, the ^Ic(iilli- vray or Flatbow river. David 'riioiapson, surveyor of the Hudson 15ay Com- pany, in 1S07, selected the source ol the Cidumiii.a river as a site for a trading post with the Kootonais or I'Matbow Indians, .-^ince that date these Indians !i tve made sensible progress to civilization under the inlluence .if the ( )regon mis- sions, as also have other more southern tribes on the western slopes of the Kocky mountains. Indeid, the "delations" of their missionary bishop. Father De Sniet, con-tilute a most glowing sketidi of the oval di.-trict between Flatbow river and the upjier Cojiiiaiiia, and wiiieli mu.-t have an eMent of :JU,()()0 si[uare Oiiles. 1 select s(one p.is.ages ol' dcscrintiiui by De Sinet, after jias.-iag north of tln^ boitudary in latitude forty-nine degrei's ; '• .Vdvaiaitig toward the teriitory nf i!io Kootonais, we were enchanted with the iMantiful and di\"r.-ilied sccmay. * '" An exten.-ive plain at the iiase "f ijir I'ortage mountain (probai-iy near the western extieiirty of the Kootonais I'ass) presents every advantage for the formation of a city. The inounlaios surroiiniliug this jigreeal»le site are majestic and pit tiuesijUi'. They I'oriilily Kcalleillo my memory the Mapocho mmintains iluit encimuiass the beautiful capital of Chili, (Santiago.) ''^ '" "<= The (|narries ami forests are ine.\haustilile, and. li.avmg reiuiuki'd large pieces of coal .along the river, 1 am convinci il that this fo-sil ci nid be abund.antly procured. Cre.at tjuanti- ties of lead are found on the surface if the earlli. .ami from the appearance of it« sM])erim' (|Ualily, we are led to bi lie\c that there may be some mixture of »*ilver. I* •'■ ,\f|(r a lew days' journey we .arrived at the I'rairie dii Tidiac, the n-u.al aliode of the Koofomiis. Their camp is ,;ituated in an im- mense ami delightlid \alh'y, boimded by two ( nnnences, which, from their gen- tle and regular d( eliviiy, appear to have originally boumh'd an exteiir-ive lake. ■•' '' * riienci 1 journeyed on towards the source-* of the Columbia ^^ 28 COMMERCIAL RELATIONS WITH BRITISH AMERICA. "W The country we traversed was liij:?lily picturesque, and agreeably diversified by beautiful prairies, smiling valleys and lakes, surrounded by heavy and solemn ])ines, gracefully waving their flexible branches. We also crossed dark alpine forests, where the >n productiveness to the mineral districts of Montana, which are unsurpassed iu C'llil'oniian or Australian experience. 'ilie population of Ibitish Columbia was I 1,10.) in iNtj,']. and may be 1."<,(JU0 in 1N<)0. I he estimated reveinn- for the itresent vear is SGOO.ODU — trom the iollownig sources; i u.-toms, ;it jmi a\'erage inip(Ut duty of l.^iper cent.. ^.'Jr^O, 000; ro.'ul tolls, S!>.'» 00(1; miners' ceililicates and mining receipts, s."),'), 000 ; spirit licenses, S:J0,000. The jiidilic deli* of the i(dony in iNG.'i was XiOO.OOO, at six per cent, interest. 'I'lie fiiwinces of Vancouver islaml are in no better comlition. The expenditure for a go\erument of the population of O.OOO exceeds .S-iOO.OOO M"f«ifie(l by nd solemn iirk alpine =i= On uees, shall source of dolighlful ; snppoai-s as )uUl be ve- ho year in 1 freslmess ■c generally of different igc^ nature • its geogra- 111(1 of civil- turcs of the b' razor rivei, [' the Pacific While Cari- ■ as Canada, locky moun- sland,) New luid delta of has the best Vee from ex- its to cramp; l»pen gardens luiary. fiar- ( ascni. The litiour* of cli- lidvaiitage to lition, is rich [• quite simi- ]; l((()() ; spirit i,()()(l, at six [■r condition. Is *:iUO,000 COMMERCIAL llELATIONS WITH BRITISH AMERICA. 29 per annum, which is collected mostly by direct taxation, no customs duties be- ing imposed. A union of the provinces will soon be effected, when it is hoped that these expenditures will be reduced. Witli this cursory review of the relations of the United States and British America, it is evident that both communities ar(> equally interested in two great objects : 1. An ocean navigation from the (Julf of St. Lawrence to Lakes Superior and Michigan; and, 2. An international railroad from Halifax to the North I'acilic coast, on a route central to the forests of New Brunswick, Maine, and Canada, the mineral formation of Lake Superior, the wheat-growing plains of Minnesota and the Saskatchewan valley, and the gold districts of British Columbia. The present situation of these two great interests will be briefly considered. .\AVIO.\TIO.\ OF THI-; ST. LA WIUIMI). The river St. Lawrence, as the outlet of the great lakes, drains an area of 000,000 square miles, of which 2o0,000 sipiare miles belong to tlu! United States. The navigation of the St. Lawrence is imjn-oved by seventy -two miles of ship canals — forty-three between the Atlantic and Lake Ontario, twenty- eight by the Welland canal, connecting Lakes ()ntarii> and Krie, and one mile at Sault St. ]Marie, reaching Lake Superior. The Superior ship canal, aided by the government of tlie United States, is llie only adecjuate structure of the kind. The size of its locks is 360 feet long, 70 feet between tlie quoins, and 1:2 feet in depth. The ])roblem, of Avhich every northwestern State ardently seeks the solution, is such immediate construction of new or eiilargc'inent of existing canals as will ])ass vessels of fifteen bundled tons burden, without breaking bulk, from the (Julf of St. Lawrence or the liariior of New York to Chicago or Superior. At present, tlr.; Superior canal is alone; siilHcieiit, as iho Welland can only pass a vessel nf 400 tons, and the St. Lawrence canals can pass a vessel of only oOO tons. The New York canals are of less cipacity. Tlie nioveineiit ihroiigh tin' Welland c:inal shows the prrqinrtions in which the United States finil Canada share the advantage of that important communication with the upper lakes. In ISG'.i there jiassed ;i,474 American vessels, tons 80S,rJ80; ;>,4;J.> Cmadian vessels, tons ri:il,S08, In 1S64-.'), this comparative movement was as follows : r.>,.>0() American ves- sels, fdiis '>[2,'.I[~>; u,S4l C'iinadian ve.-^sels, tons ;")9.'!,.')til. Till' necessity of liringing the' ocean vessels of ;ill iiiitious to the Northwest will hardly be disputed, when the progress of the lake States In the production ol' breadstidVs and ]irovi~ioiis is considered. In Ib.'jOthe lake States jiroilnceil forty millions nf busju'ls of wheat ; in ISOO, eighty-eight millions. In IS.'iO their jirodiiction of corn was oik! hundred and eighty-live millions ; in JNOO, three Imiulred jind iiinetei'ii milli(Mis. At the same rate of increase, the iie\l ten years will iiring tlu'in to thep rodnction of nearly lw<» liniidied millions of bushels of wheat and six Imndicd millions of bushels of corn. '1 he [.rovision market shows tin- same wcndi rliil results. 'I'lie luimher of hogs ^lauglltere(l at Chicago in iMiO was 400,0(10; in iNli)} the numlter had risen to 1,700,000; of cattle. 177,000 in iSiiO, mid iJi.i.OOv,^ '-i 180.!. In the year l8iV.> the expm-ts of pork in boxes, or " L-iit meats," were only !),()00,000 pminds. In round iiinnliers liny rose to twenty inilliniis in ISOO, to seventy millions in lNt)l, to one hnndcid and thirty millions in \Su2, and three hundred millions in U (IH, cliiiliy from tin- eirt!iwist. For tie- m ivemeiit to enstern and iMiropean markets, of the jni smt .-iiid prospective bulk of hreadstnffs ;uid pro- \ i,-ions, the means of tiaiisporlation must he greatly enlarged. From actual experience, derived from shipment of Indian corn at ('liicago for Liverp(»ol, it is show II that the iVeiglit charges ofiiii cover seven eighths of the valiii of a bushel ot corn at Liverpool. .M(ue than one-h ilf of the cost ot wheat is also covered by charges of transit. Tiie Chiciigti Board of Trade iiave expressed 30 COMMERCIAL RELATIONS WITH lUilTISlI AMERICA. tlie opinion that the cnlargomcnt of tho Wclland and St. LawriMice canals, as above indicated, wonM reduee the vofit of i>-raiii transportation from Chicago to Liverpool fully mie-half — to ten shilliufi'.-' per (piarter, or to thirty cents per bushel. It has been stated lliat (ireat liritain imported from the I'nited States during the years ISGl, 1HG2, and J sG.'j hroadstutls to the valiiv' of ClrJ.(M;j,() 18 sterling, and tliat the transit expenses Avere .l"S,S:2(),;j.'»l slerliiip-, tlie orijrinal cost realized at Chicago being only C:j,817,0Gii. The burden now imposed upm M'csteru producers, and th(; relief which would be experienced if the marine of the worhl couhl reach Chicago through the lakes, as readily as European ships reach Odessa, or Constantiiu>plo through the .Mediterranean, wa- most clearly and forcibly illustrated by .\lr Duncan Stewart, of Detroit, at the connnercial convention held July, l8Go, in Detroit. " Some years ago," he said, •' llu- farmers in cert lin portions of the west could not obtain over eight cents jut llu^ilel for their corn. Some professors ol" politi- cal economy say this was the result of a great crop, and nobody to eat it. This is a grave mistake. There Asere hungry mi n emaigh to eat u]) the whole of it. Nobody to e;it ! The a\ nit nf transportation facilities ale it all up. That year forwarders got, io mmiy instances, twenty ceiils per bushel from Chicago to Buflalo, and the canal rates rose as high as twenty-live cents from Buffalo to New York. In plain lOiiglish, the farmer of Illinois had to give the carrier the price of live and a hall bushels of his corn to get him to carry one bushel from ('liicago to New York, a distance of filteen hundnMl miles by water. TAventy- five cents, including canal tidls, would have laid the same corn down in Liver- jio(d had there been a chance to navir;ate the St. Lawrence with vessels of out.' thotisand tons or upwards, and the owner of the craft wotdd have been richly remunerated at that [nice; but on top of the forty-iive cents to New York from Chicago were the (diarges at that port, and another charge of twenty cents per bnsliel to cross the oce;ui. making the charge from Chicago to Liverpool not less than sixty-Si'ven cents per bushel, when it would never have exceeded thirty cents hail the right kind of vessids been able to pass down the St. Lawrence. This W()nl(i liaxc enabled the larmer to gel forty-live cents f 'r his corn instead of eight cents per Imshel. With sixty buslu'ls to the jicre, the amount secured in the one case was I'oiu' dollars and eighty cent-^ ; in the other if would have been twent}'-seven dollars. This is no fancy sketch ; it is a positive fact." ^Ir. Stewart on tin- same occasion .also observed: " With deep water down the St. Lawrence no inlerot will be m in eithei of these markets." Of the Canadian canals the Welland is of the most iinjiortance to American commerce, the traiiS|)ortation for IS()4-"o liaving hoen reiurned as follows: Tons. From Canadiiiu to Canadian ports 1 99, 4 1 .'>A From Canadian to American jiorts ] .')(>, 9G1 A From American to (Janadian ports 27 i, 941'| From American to American ports 2~)i, fy-Jl^ Total SS."i, 874 Of this aggregate (JS.^lo?^ tons was lioin the west to the e;ist, and o29,199 tons were from Anu-rican ports. The trade of the United States through llie St. Lawrence from [SGI to ISGo is thu^. stated in the Canadian trade returns : I"..:- t'liit^'it .St;iU'.-. I'l-om riiiti"! Sl:it^•^|. 1861 S5:i2, ol4 S3, 505, oil 18Gy 490, 1^98 5, 198, 9:20 18G3 rAC)rn'j :i, 997,818 1SG4 (half year) :2S2, GG7 507, 243 18G4-G5 .."..„ 289, GSa 1, 714, G29 The Anu'rican trade through the St. Lawrence was ahout G j)er cent, of the connnerce hy that cliannel. l\Ti;it\Aritt\AI, It.MF.WAV. » In the plan of provincial union jiropo-^ed at (^>nrhec, October 10, 18G4, it is stipulated that " the federal government shall secure, without delay, the com- pletion of the intercolonial I'ailway from Kiviere du Loan, through New I'runs- wiek, to 'I'ruro, in Xova Scotia."' Its estimated cost is 817,o00,000. From Iiixiere du Loup to Ottawa, the cajiital of Canada, there is conununication by railway. \Yiil Lngland aid hy imperial guarantee the immediate construction ef a rail- road tVom ('ttawa, by way of I'ort (xarry and the valley of the Saskatchewan r'wvr, to the I'acitic coast .' ( h- will the provinces, with or without the aid of FiUgland, undertake such a continental liigbway V The di^iiiiy of Ihitish America is involved in the extension of an ocean coast to the wesieni limits of the great lakes, and a railway from Halifax to ti;e cap- ital of the confederation, and theiu-e exdnsivi'ly on the soil of the confederation, to the North I'acific coa.-(. 'i'lie adiMpiate improvement of the St. Lawrence and AVelliud canals (without assuming thi> (Mtnwaaiul (ieorgian bay projeets) iu- volve^: an e\|,;'iiditure of ."^20, 000,000, and a St. J.,awreuci! and I'acilic railway, even if aided by liberal allol meats of find along its line, will rei[uire, at this time, a government .-nhsidy of .s 100,000,000. \N'ho anticipati'S that Lngland will as.-iuioe any material portion of mich obligations and the proposed federal go\('iiui)eiit of the provinces, will doubtless reg.ird the promised comniunicalion between li,dil,i\ and (^)ueliec as the nlmost j)ossilde limit of its railwjiy liability, at least tor thi< ciiluiy. The language of llie (.^Juebec conference, as to com- munications with llie northwest and the iinprovements re(|uired f)r the devel- opmenl el' the liade of the great west with the seaboard, is fir slun-t of a pledge ol' pnblii- action. True, a certain degree of interest is expressed in these objecls; they "are reganled by the coiifereiiK! as subjicts of the highest im- poitanee to th • federated provinces, and shall be prosecuted at the earliest pos- sible peiiod thai the stale of the linances will pirmit ;" and in another place 32 COMMERCIAL RELATIONS WITH BRITISH AMERICA. there is a provision that " the Northwest Territory, British Columbia, and Van- couver sliall bo aflmitted into the Union on such terms and conditions as the parliament of the federated provinces shall deem equitable, and as shall receive the assent ol' lier ]\Iajesty ; and, in the ciise of the province of British Columbia or Vancouver, as shall be agreed to by the legislature of such province." All of Avhich seems quite inadequate when such immense resources might bo brought into the circle of the world's activities if a policy was at once inaugurated ample to consummate the construction of a national highway from ocean to ocean be- tween the latitudes of 45^ on the Atlantic and .')r>° on the Pacific, through the teeming belt of settlements Avhich would follow upon its track. rMO\ OF THK U.XrTEl) STATKS AM) HlllTlSH AMERICA. I cannot resit*t the conclusion that events have presented to the people and government of the I'niied States the opportunity — let me rather say, have de- volved the duty — of interposing by an overture to the people of the English colonies on this continent, of course upon the fullest consultation with the gov- ernment of Great Britain, to unite their fortunes with the people and government of the United States. Such a j)n)position on the part of the United States might be in the foUowins: terms : AX ACT t'oi" till' lulnii.s.siiin dI" tlie States ot" Nova Scolia, New Uniiiswiek, Caiitida Ea.st, ami Canada Wi'st, iiiid tor tlif organization of tlic Toiritorifs of Solkirk, Saskatcliowan, and Coln}nl)ia, Sectio.x 1. lit' it vnatfcd h\j the Hcmilc and House of Rcj)i(scntatires of the VniU'd States of America in Coni^ress assemhlid. That the President of the United States is hereijy ;iutliorizeil and directed, whenever notice shall be dc- ])osited in tlie Department of Slate that the governments of (Jreat Britain and llie jirovinces (»f New Brunswick, Nova Scotia, Piinec Edward Island, New- foundland, Canada, Briti.->li Coltunl)ia, and Vancouver's island have accepted the proposition hereinafter made by \\w. I'liited States, to publish by proclamation that, from the date thereof, the States of Nova Scotia, New Brunswick, Canada East, and Canada Wer^t, and the 'J'erritories of Selkirk, Saskatchewan, and Cohnnbia, with limits and rights as by this act deiined, are constituted and ad- mitted as States and Territories of the I'nited States of America. SKf. 2. Be it further enaeted, iff.. That the following articles are hereby proposed, and from the date of the proclamation of the J'residcnt of the United Slates shall fake etfcct, as irrevocable conditions of the admission of the States of Nova Scotia, New IJrunswick, Canada East, and (!anada West, aiul the future States of Selkirk, Saskatchewan, and Colundjia, to wii ; AuTULl-; I. All public lands not sold or granted ; canals, ])ublic harbors, light- houses, and piers ; river ami lak(; iinprovements, railway stocks, mortgages, and other debts due by railway companies to the provinces ; custom-houses and post otlices shall vest in the liniled St.-ttts; but all other public works and pro])erty shall belong to the State govormneiits respectively, hereby constituted, together with all sums due from purchasers or lessees of lands, mines, or minerals at the time of the iniion. Au'iK LK II. In consideration of the ptiblie lands, works, and property vested as aforesaid in tin; United Statis. thi; United States will assume and discharge the funded debt and contingent liibilities of the late provinces, at rates of interest not exceeding five per centum, to the amount of 8S;3, 700,000, appor- tioned as follows ; To (Jaiiada West, 8;5G,.'')()0,000 ; to Canada East, 329,000,000; to Nova Scotia, ^s^i, 000,000; to N«'W Brunswick, .'sT.OOO.OOO; to Newfoundland, $3,ii00,000; and to Prince Edward Island, 55:^.000,000; and in further consider- ation of the transfer by said provinces to tin; United States of the power to levy iaiport and export duties, tlie United States will make an annual grant of COMMERCIAL RELATIONS WITH BRITISH AMERICA. 33 I, and Van- iona as the Imll receive li Columbia ce." All of be brought rated ample o ocean be- throngh the 3 people and ay, have de- the English nth the gov- , government States might imdiv East, and iivtchcwiin, and tafires of the sident of the f shall be de- t Britain and Island, New- accepted the proclamation ivick, Canada c'licwan, and Itiitcd and ad- iH are hereby )f the United lof the States |nd the future larbors, light- lortgiiges,and jiises and post land projjerty liled, together linerals at the Itperty veftod ]ind di:*charge at rati-s ol' 10,000, appor- |S29,000,000; Icwfoundland, Iher consider- Lower to levy lual grant of ■$] ,040,000 iu aid of local expenditures, to be .apportioned as follows : To Canada West, $700,000; to Canada East, 8550,000; to Nova Scotia, >sl65,000; to New Brunswick, $126,000; to Newfoundland, S65,000; to Prince Edward Island, $40,000. Akticle III. For all purposes of State organization and representation in the Congre!^.s of the L'nit^d States, Newfoundland shall be part of Canada East, and Prince Edward Island shall be part of Nova Scotia, except that each shall always be a si'piirate representative district, and entitled to elect at least one member of the House of Representatives, and except also that the municipal authorities of Newfoundland and Prince Edward I^iland shall receive the in- demnities agreed to be paid by the United States in Article II. AiiTK'LK iV. Territorial divisions are established as follows : (],) New Bruns- wick, with its present limits; (2,) Nova Scotia, with the addition of Prince Edward Island; (;>,) Canada East, with the addition of Newfoundland and all territory east of longitude S0\ and south of Hudson's stiait ; (4,) Canada West, with the addition of territory south of Hudson's bay, and between longitude 80° and 90^; (5,) Selkirk Territory, bounded east by longitude 90^, south by the late boundary of the United States, west by longitude 105^, and north by the Arctic circle; (G,) Saskatchewan Territory, bounded east by longitude 105", sDutli by latitude 40 ^ west by the Rocky mountains, and north by latitude 70°; (7,) Columbia Territory, inchuling Vancouver's island, and Q^^^^^i Charlotte's island, and bounded east and north by the Rocky mountains, south by latitude 49 ', and west In' the Pacific ocean and Russian America. But Congress re- serves the right of chfinging the limits and subdividing the areas of the western territories at discretion. Artk'LI:; \'. Until the next decennial revision, representation in the House of IJepreseiitatives shall be as follows : Canada West, 12 members ; Canada East, including Newfoundland, I members ; New Brunswick, 2 members ; Nova Scetia, including Prince Edward Island, 4 members. Aktk I.K VI. The Congress of the United States shall enact, in favor of the pro])os('(l Territories of Selkirk, Sasliatcliewan, and Columbia, all the provisions of the act organizing the Territory of Montana, so far as they can be made ap- plicable. Aktu Lb; \TI. The United States, by the construction of now canals, or the enlargement of existing canals, and by the improvement of shoals, will so aid the navigation of the St. Lawrence river and the great lakes that vessels of fif- teen hundred tons burden shall pass from the Gulf of St. Lawrence to Lakes Supirinr and Michigan : ProriilaJ, That the expenditure under this article shall not exceed -^oO, 000,000. Aim (LI'. VI 11. The United States will appropriate and pay to "The Euro- l)eaM and North American Railway Company of Maine" the sum of 82,000,000 ujion the constiuction of a continuous line of railroad from Bangor, in Maine, to St. .Jiihu's, in New ]>runswick: ProridcJ, Said " T'.ie European and North American Railu.iv ('(im[)any nf Elaine" shall release the government of the United States from ,ill claims held hy it as assignee of the States of Maine and .Massachusetts. Akticmo IX. Til a'd the ennstruction of a railway from Truro, in Nova Scotia, to Riviere dn Loup, in C'anada East, aiul a railway from the city of Ot- tawa. Iiy way of S:inlt St. l\larie. Bay fnld, and Snpciior, in Wisconsin, Pembina and I'ort (iarry, on the lied River of the North, and the valley of the North Saskatchewan river to some |ioint on the Pacific ocean north of latitude 49^, the I'uited Statefi will grant lands along the lines of said roads to the amoant of twenly sectituis, or 12.800 acres, per mile, to he selected and sold in the manner prescribed in (he act f(» aid the construction of the Northern Pacific railroad, approved July 2. 1S()2, and acts amendat< ry thereof; and iu addition to said grants of lands, the United States will further guarantee dividends of H. Ex. Doc. 128 3 34 COMMERCIAL RELATIONS WITH URITISII AMERICA. five per cent, upon the stock of the company or companies wliicli may he tuithor- ized hy Con<;i^ret?s to undertake the construction of said railways : Provided, That such guarantee of stock sliall not exceed the sum of 830,000 per mile, and ( 'ongress shall regulate the securities for advances on account thereof. Article X. The puhlic lands in the late provinces, as far as practicahle, shall be surveyed according t> 10,000,000 to the Hudson Bay Company in full discharge of all claims to territory or jurisdiction in North America, whether founded on the charter of the company or any treaty, law, or usage. Articlk XII. It shall be devolved upon the legislatures of .New Brunswick, Nova Scotia, Canada Kast, and (.'anada West to conform the tenure of ofHce and the local institutions of said States to the Constitution and laws of the United States, snhjcct to revision by Congress. SEtrioN 3. Be if further enacted, &fc.. If Prince I^dward Island and Newfound- land, or eithv r of those ]irovinces, sliall decline union with the United States, and tht^ remaining j)rovinces. with tiie consent of (J real Britain, shall accept the proposition of the United States, the foregoing stipulations in favor of Prince Edward Island and Newfonridland, or either of them, will be omitted; but in all other respects the United States will give full eifect to the plan of union. If Prince Edward Island, Newfoundland, Nova Scotia, and New Brunswick shall decline the ])roposition, but Canada, Briti.-^h Cole.nibia, and A'ancouver island shall, with the consent of (Ireat Britain, accept the same, the construc- tion of a railv.ay from 'J'ruro to Riviere du Louj), with all stipulations relating to the maritime provinces, will form no part of the proposed plan of union, bnt the same will be consummated in all other respects. If Canada shall declin*' the ])roposition, then the .-tipulations in regard to tlie St. Lawrence canals and a railway from Ottawa to Sault St. j\Iarie, with the Canadian clause of debt and revenue indemnity, will be relin([ui.-he(l. If the plan of union fhiill only be accepted in regard to the northwestern territory and the Pacific provinces, the United Stat.'S will aid the construction, on the terms named, of a railway from the western extremity of Lake Superior, in the State of Minnesota, by way of Pembina, Port Garry, and the valley of the Saskatchewan, to the Pacific coast, north of latitude 41i\ besides s^ecniing all the rights .md privileges of an American territory to the proposed Territories of Selkirk, Saskatchewan, and Columbia. If *' e for«'going plan of union .>-hould be fully consummated, the United States would immediately assume an annual expend ituns as follows : 1. Interest at o j>er cintmn upon the consolidated provincial debt, xvith obligation to discharge the principal at a future period, sav A. D. 1900 '. :„s4,L^sr),000 2. Annual grants to nrw States in lieu of provincial power to levy import and export duties 1,G4(),000 y. Five per cent, upon sums ap])lied to railway construction be- tween Bangor, in Alaine, and St John's, in New Brunswick, and for purchase of tln^ chartered rights of Hudson Bay Company. . 000,000 Total G.-OaLOOU COMMERCIAL RELATIONS WITH BRITISH AMERICA, 35 )• be autlior- : Provided, lor mile, and if. practicable, ■al Laiul Of- 90^, or the six shall be 1 of the Ter- :ei of public cut of roads Iiidson Bay iou in North treaty, law, V Brunswick, Hire of office I laws of the ul iSewfound- d States, and II accept the vor of Prince litted ; but in i!an of union. w Bruns'wick d Yaiicouvor the construc- ions relatinf]:; of union, but i^hall decline |e canals and jlan^(! of debt on t'hall only ic provinces, of a railway llinnesota, by lewan, to the nd privileges iskatchcwan, , the United :>4,L^8o,000 1,G4(),000 GOO.OOO It is probable that the system of ship canal improveimMil,-, which is so promi- nent a portion of the plan, could not, with the utmost diligence, be consummated before 1875. It would, doubtless, include a ship caufj by the route of Lake Champlain, or by the route of Oneida lake and the ^FohaMk river, to tide-water in the Hudson, and the ample enlargement of the Welland and St. Lawrence canals. It might also be extended to the construction of the Niagara and (leorgian Buy ship canals; but for the Ottawa canal project the Ottawa and Sault St. Marie railway is intended, and Avould be accf'pted as a sub.stitute. The animal statement, after 1875, would therefore be — Expenditure annually as above $0,531,000 Five per cMit. upon cost of the St. Lawrence system of ship canals. 2,500,000 Total in ] S75 9,0.^51,000 6,531,000 Meansvhik' the contim^ntal railway would be in progress, and its two sections, eastern from Halifax to Quebec, and western from Ottawa to the Pacific coast, total 3,700 miles, might and sliould be finished and in sueec^sCul operation by the year ISSO. The full ani.nmt of the guarantee of stock in aid of its construc- tion would be a charge upon the treasury of •'$5,550,000 per annum. This addition to tlu" sum last stared wouhl make an ultimate annual liability of 815,081,000. The public revenues of tin; five eastern provinces, in iSGl, as we have seen, were 813,260,000. The credit side of the account would seem to obviate any objection on financial considerations. The i»ublic domain of tlie eastern provinces, to be transferriMl to the United States, would be 'il 1,282,817 acres. British America, west, within its habitable areas, contains 320,000, 000— a total of 531,282.817 acres; and yet I hesitate to claim this vast doniiiiii)n of land as a sourei' of revenue. Tlu; j)rogranime of union has already appro])iiated '17,3(J0,()()() acres to aid the construction of a continental railroad; th',' care of 100,000 Indians will be another charge upon tlie fund from land sales ; 50,000,000 acres in the western territories will be re- (juired for the endowment of schools; iurther grants lor internal improvements will be made ; five per cent, of sales of land is also ai>plied for the latter object ; and although mineral lands may reasonably be exj)ected to yied an income to government, still the homestead policy, from which there will be no backward step, must concur, Avith other causes, to reduce the proceeds of the public lands to the expenses of their survey, administration, and sale. If, by railway con- struction, cheap water transit, and systematic colonization, the population of the northern j)rovinees (hereafter States) shall reach 10,000,000, in 1875, the gov- ernment would possess a sure means of indemnity for the proposed enlargement of its obligations. The average revenue per head of population now collected in the j'.roviiu'es is 8.3 45, which, applied to ten millions of people, would be nearly 815,000,000. flaking every allowance for the due proportion of this sum applicable to the support of the national government, there would yet re- main an ample pro\ision for current inwrt'st and ultimate discharge of princij)al. 1 have conlidt nee, also, that the liberal hind endowment in aid of the conti- nenial railway, concurring with the jirogress of trafiic, Avouhl soon exonerate the government from its sto(d{ guarantee, reducing the annual expenditure one- third. In any ( vent, the financial burden would be mon; than justified by the advantages insej)arable from the proposed extension of our ])olitical, social, and industrial systems. I will not extend this paj)er by any jnrsentation of what I regard as the great preponderance of benefit to the peoj)le of llu^ provinces. 1 only reiterate that they have a right to demand of their j)resent rulers two great objects, a I^Iediterranean to Superior, anil a railway to tin- Pacific ocean, and these before 36 COMMERCIAL RELATIONS WITH BRITISH AMERICA. 1880; and I cannot bdievc these objects will be at^ijured to this generation by a provincial confederation, or by the intervention of England. The United States may interpose, with the rec^nisite guarantees ; and if so, why shall we not combine to exU'nd an American Union to the Arctic circle ? JAMKS W. TAYLOR. Hon. Hugh McCl lloc ii, Secretary f)f iJic Trcasurij. , ICA. generation by The United why shall we TAYLOR.