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The following diagrams illustrate the method: Les cartes, planches, tableaux, etc., peuvent dtre filmds d des taux de reduction diffdrents. Lorsque le document est trop grand pour dtre reproduit en un seul clich6, il est filmd d partir de Tangle sup6rieur gauche, de gauche d droite, et de haut en bas, en prenant le nombre d'images n6cessaire. Les diagrammes suivants illustrent la mdthode. errata I to t 9 pelure, on d n 32X 1 2 3 1 2 3 4 5 6 THE REVENUE BILL ITS EFFECT UPQN THE RELATIONS OF THE UNITED STATES V/ITH CANADA. SPEECH OF HON. ANTHONY HIGOINS, OF DELAWARE, IN THE SENATE OF THE UNITED STATES, Thursday, June 14. 1894. « ♦ ■WASHINO-TON", 1894. wmmm SPEECH OF HON. ANTHONY HIGGINS. The Senate having under consideration the bill (H. R. 4884) to reduce tax- ation, to provide revenue for the Government, and for other purposes- Mr. HIGGINS said: Mr. President: This bill will put wool on the free list, and thereby add to the free list another product of Canadian pro- duction. To that extent it will increase to the relief given to the people of Canada by the reduction of the duty, either in part or in whole, upon their natural products. I do not propose at this time to add anything to what I have already taken occasion to say during this debate upon this meas- ure as one of merely domestic policy. Important as that is it does not constitute its entire, and 1 am not prepared to say that I think it constitutes its chief, importance. In more ways than one, and in no way more vital to the interests of the American people than in respect to its effect upon our relations with Can- ada, it is a measure of far-reaching foreign policy. We hear its reverberations already from beyond the waters of the Atlantic in its propositions to uproot the policy of recipro- cal trade with Germany and continental Europe as respects sugar and our agricultural products on the one hand, and with our sister republics of South America and the Island of Cuba upon the other. All that, Mr. President, which is of so much importance to the consumer and the pulDlic of the United States, which is of so much importance and has been of so much benefit to the farmers of the United States, is condemned ruthlessly to the block, and I do not know but what there is a feeling on the other side of this Chamber, there certainly is in some of the offices of the able editors in the land, that the time of the Sen- ate is wasted by a discussion before the great forum of the American people as to the effect of this proposed policy. This bill, as I have already taken occasion to discuss during the debate, as it was passed by the House of Representatives and reported to the Senate, abrogated the reciprocity treaty with Hawaii. I am glad to say that that has teen altered by amendment, an amendment in which I hope the House of Rep- resentatives will agree. But 1 wish at this time to ask the attention of the Senate to some observations which I feel moved to make with regard to . the effect of this bill upon our relations with our neighbors of Canada, and therein and thereby of the most far-reaching oon- Bequence to them and to us as common citizens of one continent. lam free tos^v, Mr. Pro.-ddcnt, that whea llio Soiiate cuusiu- ered the McKinley bill and jjassed it four years ago, it really took very little account of its effect upon Canada. We paaaed 1447 3 in that measure a schedule on agricultural and other n.-i tural productsof Canada of the utmost consequence to them. and. in a certain sense, of the utmost disastrous consequence to them, but in doing it wo really took very little thought of them. I doubt if more than a very few members of either House of Congress had their attention drawn to the groat and importint effect on our Canadian neighbors of the provisions of that bill. The farmers of the United States —toe Ropublicim farmers — wanted protection. They said if there was protection to be given to the manufacturer they wanted protection to the farmer, and out of regard for them, and out of regard for their circum- stances, and for the conaistency of the policy of protection, which should hold in equal esteem the products of the soil and the products of the loom and the anvil, we enacted the provision -s of that law, which also, as 1 have said, had their effect upon the natural products of Canada. We, in fact, were involved in a profound self-contemplation, and were lost to all thought of any- body outside of or nhunde ourselves. When the McKinley bill was passed, with its agricultural schedule and the duty on lumber and coal, the American market was secured to the American producer, and that, too, without any additional cost to the Americ m consumer. Prices did not rise within the wide limits of this broad land, because the con- sumer was left to the industry and capacity of the American farmer and lumberman and miner. Our splendid resources wore fully adequate to that task. We needed for that purpose no as- sistance from Canada — mm tali auxilio — and from that source no additional cost thereby has been put upon the American people. As shown, however, by the figures of the tables, which I will beg leave to submit to the Senate, the duties upon the products introduced into the United States from Canada all fell upon the Canadian producer, and we enforced that much of a right royal contribution to the American exchequer, and to that extent augmented our revenues from our neighbor. The McKinley legislation, Mr. President, if I may call it so, is an object lesson upon both sides of the line. It shows to the American farmer what an e^isy remedy he hiu> against foreign competition, and how he can secure for himself the plenitude of our domestic market for his product, a matter of concern the largest at times when we are met in the markets of the world by all the problems of Asiatic and South American and Aus- tralian and other foreign competition, and all the complexity of the problem of silver as a money metal. To the Canadian it was an object lesson at the same time. It showed to him the absolute uncertainty of the American market for him so long as he chooses to indulge in the luxury of being either foreign to the United States or a British dependency; that whatever crop he may plant, whatever particular manufacture or mining plant he may establish, it3 prosperity and welfare or its destruction are dependent upon the vicissitudes of American politics, and upon the action taken in this Legislature over which he has no control. The bill now before the Senate, for the first time in American hieiory, piopoaes to give and h ind over to the Canadians almost a free market in their natural products, absolutely without any compensation in return. The history of our reciprocal relations with Canada is important and interesting in this connection. 1447 Our statistics available are only to be found from 1821 to the present time. In 1846 the British Government took the great and impressive step for themselves of free trade, and in the same act cut up by the roots the theretofore diffierential advantages they had given to their colonies and dependencies in their trade witn the mother country; and Canada found herself cut off from an ailvantageous market for her natural products in Great Brit- ain. At the same time she found herself face to face with an ad- verse tariff in the United States. The Walker tarifi", of which we have heard such encomiums in this discussioni placed high duties upon agricultural products and the natural products of Canada. So it came about that there was at that time in Can- ada a condition of profound discontent, so great that the Brit- ish Government sent one of its first statesmen over there as governor-general. Lord Elgin; and, as we are told by an emi- nent publicist of England, Lord Elgin himself wondered that the Canadians had rested under the adverse conditions which affected them. As a remedy, he came to the city of Washington and proposed to the then Democratic Administration the reciprocity treaty, since known by his name, which was adopted by this country. It offered to the United States reciprocity in the natural prod- ucts of Canada by giving to the Unlt^jd States a free market for agricultural and the like products in Canada in return for free markets for such Canadian products in the United States. That convention and arrangement was what is known as '* jug- handled " — it was all on one side. There was no market for which we cared in Canada for the articles which by the treaty were made tree. It was everything to her to have a free market in the United States for her nat- ural products that we thus gave to her free, while she retained her 'sxisting duties upon manufactures, and thus excluded us to the extent of her duties from selling our manufactures in her markets, wherein and whereby alone we could get any advan- tage. I submit at this point some tables which have been prepared by the Bureau of Statistics of the Treasury Department in re- sponse to an inquiry by a resolution of the Senate, giving a re- capitulation of the trade of the United States with the British North American Provinces for the years running from 1821 up to 1893 inclusive, and also a table, which is a recapitulation of these annual reports by periods, showing in one set of figures the exports from the United States to Canada and in the other the exports from Canada to the United States. The periods are co- temporaneous with what may be called the tariff periods of the United States, and I do not think that such tablea have ever be- fore been prepared. The periods are as follows, giving the years inclusive: 1821 to 1882, 183.1 to 1845, 1846 to 18)5, 185tj to 18()6, being the period of the Elgin treaty; 1867 to 1873, that being the year when our tiiriff was first materially reduced; 1874 to 1883, when occurred the next reduction of our tariff: 1884 to 1890, the year of the enactment of the McKinley law, and 1891 to 1893, the last year for which we have at this time available figures. The tables are as follows: 1447 6 i| nt » «5 a a f f f 7 f mff fftff I \T\111 1111111111 ,.N^^^C^MLniftkA S S S i 22 S 2! S ^'s fe i S'2 ?f fe fc | S 2 g 55 r^'c 3-^x ifs - «raD m X eo o X- — SBC" > CO CO t* W iO (^ i 1-, p tp *0 T «ft 5XCJ ^o»n ■"■r fSS S H CQ a .■^O^iS©»o-^5iiftx ScsS; r CO lO G4 ^ ;-; CO CO GOOC ■ h'.' I.V uw . f iisi fNef ej«,-i»H»jM-H.-i C4e^ncO'<>n<««rf 60 1447 N 1 ! i S OaoocaoaoooooooSowcoaoixcocoaoaoa jSoE , 5S3SS3S!SSS «■■ CiCl^^aii^^^Q^Vi'^ ^ ,-5 ^ PH *-( FN I'M iM rl ^ fH »m 5JSJ5 s a S3 s ?(a a s s IS ^"55 s s a a ii 55 3 8 s s s'g'8 %¥«'§"? ^^ )kneoo5«m"« M?*-i<0^i-CiOtOff-IX^O(DX5'laf)rtCO'*COa>a'*'-'0»ftt30XOOiOO^-*02S'*lOION *-* I ff to' o p* ^" -^^ i^ "^ u^ I--' go irf o' ift OS (i;' Q* -t' »" — ' co' »' to ►■'S S Ji 2 2 d SSY'S S a¥Sf J: 53 8 o5 S S'8'S ^"« S S a S S tS ^ KxxooxxxxxxxooxMaoooooxJoxocooxooxSoxSSxoBoox 1417 c« c3 •6 -"»int-.p3 O H I. 0*^ i . I SS5.f8sgs- 3 ^SEe-^-gjife-g £ I I +T I T mmm i «5 V!c-r-r-rv„-..- T: Ui7 C^ CO O ri <3 "^ ^* 8 This table, when you come to rest your eye upon It, is most instructive. It discloses the fact that in the year preceding the adoption of the reciprocity treaty, both the exports and the imports between Canada and the United States were greatly augiuentod, and that that increase of trade has continued almost without intermission from that time until the present; but it shows also that there was a great advance of the free imports by reason of the Canadians taking advanUige of the trade in tho. e articles which came in free under the treiity; and a corre- sponding falling olf of the articles which were dutiable, thereby proving that, while the volume of the trade was not so greatly increased, the burden of the tarifT of the United States under the treaty was taken off of the Canadian exporters and the loss borne by us; while both before and after the treaty it was borne by the Canadians. For instance, the amount of free imports into the United States from Canada in 1854 amounted to only S'llto,!!!)"!, while in l>'r)5, and presumably in the three and one-half months between the Kith day of March, when the treaty took effect, and the ;iOth day of June, when the fiscal year ended, the free imports from Canada amounted to the enormously increased sum of $8,085,678, while the dutiable imports from Canada, which were in 1854 $8,288,41", fell in 1856, the first full year of the treaty, to $821,724. The last year of the treaty, 1866, when It was abrogated, the free imports had increased from the sum of $495,995 in 1854, to the enormous sum of $43,029,389; and the dutiable goods imported that year were $5,499,239, being a great increase over any pre- vious period of the treaty, thev ranging from as low as $491,732 in 1858, to $1 ,661,981 in 18(34. With but one other conclusion shall I burden the Senate from these tables, and that is in respect to the balance of trade. The balance of trade in our favor when we entered into this reci- procity convention was $15,288,996 in 1854; in 18r;5, during which we were only under the treaty for three months and a half, the balance in our favor was $12,623,519. It immediately fell off under the treaty and went as low as $47,976 against us in 1861. The balance against us in 1866, the last year of the treaty, was $23,699,748, while under the McKinley act the balance was, the first year, 1891, in our favor $9,220, and in the last year, 1893, $10,442,166. I shall leave these tables, however, to speak for themselves, and shall not trouble the Senate with drawing any further de- ductions from them. It will be remembered by some of the older members of the Senate that in 1874 Canada, through the British minister, ten- dered to the United States a renewal of the reciprocity treaty of 1864, with the addition theretoof alarge listof manufactured articles of the United States, which would be admitted into Can- ada free of duty. President Grant submitted that project to the Senate for its consideration and advice, and the Senate advised against it. That was the action of Congress in 1874 on the ques- tion of reciprocity. In 1892, under the pressure of Canadian politics and the effect of the McKinley act upon their trade, the government of Sir John A. Maodonald, who was at that time alive and the premier, through their representatives, members of the Canadian min- istry, and the British minister here, presented to Secretary Blame, under F'resident Harrison's Administration, a proposi- 1447 ; 10 tion for the renewal of reciprocity relations. They offered to Mr. Blaine to renew the treaty of IS'A, and that he respectfully declined. Mr. Blaine told them that he would only consider the project of reciprocity as it should include certain manufac- t'lred articles to be agreed upon, as well as natural products. Before any answer could be given, however, by the Canadian represent itives to that proposition, they put a further question to him as to whether the United States would require, in the event of the conclusion of sucn an arrangement, that whatever advantages should be given to the United States by the reduc- tion of the Canadian tariff on our manufactured goods, should be exclusive to the United States, or whether weshould be willing to have it granted to Great Britain and her other dependencies and colonies. Mr. Blaine'sanswer was that it must be exclusive to the United States; that we should not be willing to submit our tariff arrangements in that way to Great Britain, and should not bo willing that whatever advantages by this convention should be given to the United States should be given to Great BriUun and her dependencies.. Thereupon, so far as this branch of the conference was concerned, the representatives of Canada terminated it. So, Mr. President, was shown by this very adroit and states- manlike treatment of these negotiations by our great premier, the utterly illusory character of any proposition for reciprocity between the United States and Canada. What shall be our policy toward Canada, the policy of the McKinley law or the policy of this so called Wilson billV I sub- mit that our true policy toward Canada must bo governed, under present ocnditions, not so much by commercial as by po- litical considerations, and that it must be governed by the great fact of our geographical proximity and of her membership as a dependency of the British Empire. It is not the same, case as it would be if we were dealing with Australia, or the Cape Colonies, or India, or any other British dependency. Indeed it is not the same case at all, because all the reasons lead to the conclusion that they never would ask for any special arrangement with us of that' kind. Canada only asked for a special reciprocal treatment from us in our tariff be- cause of her geographical proximity, and indeed her geogr.iph- ical proximity is the great vital fact and consideration in this policy. I Hubmit, Mr. Pi'esiden', that the outstanding difference be- tween Canada and the United St ites, growing out of the fact that we are under two different governments, never has received a settleaient, and never will receive a settlement until we cease to be members of separate empires and become members of one. I beg the attention of the Senate to a hasty r6Bum6 of these outstanding differences, which can not bj left out of account in any adequate consideration which is given to this subject. The first in time, if not the first in importance, is the ancient and outstanding difference with regard to the fisheries. Under the treaty of 1818, negotiated on our part by Albert Gallatin and Richard Rush, the American fishermen could only land on Ca- nadian soil in order to obtain shelter and repair damages, for wood and water, and for no other purpose. It haa been contended by our Government that oircumstunoes have altered the original H47 11 coi^truction of that treaty, and that we have the right under it to enjoy all the ordinary rights of hospitality in Canadian porta. That has been steadily resisted by the Canadians, who have, in asserting the right they claim under the treaty, denied to American tishermen the privilege of landing in their ports for the obtainment of bait, seines, supplies, or outfit, or the transmission of their catch of fish to Unit3d States ports. Their reason for re- fusing to give to American fishermen the commonest rights of hospitality has been that they want to force the United States to give them a free market for the fish caught by Canailiaa fishermen; and on that we have had a long outstanding differ- ence. It was one of the matters brought into the treaty of Washington in 1871. By that treaty it was agreed that we should let Canadian fish be brought in free for ten years, if on the other hand these rights I have spoken of, hitherto denied, were given for a like period to American fishermen. But inasmuch as the Canadians con- tended that the rights they granted were more valuable than the rights they obtained by the treaty, we provided for ah arbitra- tion of such difference and tlie payment of the sum so awarded. We went into the arbitration and we were astonished to find as an ofi-set to the $15,000,000 awarded us under the treaty of Wash- ington for the Alabama claims, an award of $5,000,000 against ug to Canada for this alleged superiority of rights granted to u» over what was granted to them in their fisheries. Mr. FRYE. An award made by a packed court. Mr. HIGGINS. I accept the statement of the Senator from Maine. He knows more about it than J do. for I was not thea in public life. But on the abrogation or expiration of the treaty of 1871, no other arrangements having been entered into, the Canadians began a systematic harrying of our fishermen, seiz- ing their vessels and condemning them in their courts in order to compel the United States to admit their fish free. I call the attention of the Senate and the country to the fact that they never tried that with a Republican Administration, but they did it in Mr. Cleveland's former Administration, that Administration being full believers in the doctrine of free trade, which then would admitCanadian fish free, as it is now proposed to admit Canadian fish free under the pending bill. But they proposed atreaty: and a negotiation wasentered upon in the city of Washington that resulted in the draft of a treaty known as the Chamberlain treaty, negotiated on the part of Eng- land by Mr. Joseph Chamberlain, which admitted Canadian fish free upon their granting to the fishermen of the United States these rights in Canadiun ports. That treaty was rejected by the Senate of the United States, then under a Republican majority. Thereupon these commissioners, probably indebted to the good sense of Mr. Chamberlain, who was a practical man, tendered to the United States what is known as the modufi vivendi, under which American fishermen pay to the Canadians for the enjoy- ment of these rights of hospitality -to land on Canadian shoies to dry their fish, procure bait and seines and nets and outfits, and transship their catch of fish — $1.50 per ton per annum on the tonnage of their vessels. That modus vwetroit on the other, or any other route across that peninsula, for goods going from the East to the West or from the West to the East. Both the Michigan Central and the Canadian South- ern roads cross the peninsula of Ontario in this way, and they have been in large measure a convenience to American com- merce. I do not know, and I do not admit that they are neces- sary to-day. I see no reason why we should not require that all such traffic should go over the Lake Shore or Nickel-Plate road on the south of Lake Erie, quite as well as to go through Onta- rio on the north. But no objection ever would have been raised to that. This statute, to which I have called attention, was enacted in 1866, at a time when the Canadian Pacific Road was not projected, but in 1886 the Canadian Pacific Road was thrown open to traffic. Then arose an exercise of the power under the statute that was never contemplated when it was enacted. I have omitted to say that this statute is merely permissive. It permits goods to be carried in this way from American ports through Canadipin territory undar regulations to be adopted by the Secretary of the Treasury. So this whole traffic rests merely upon this permissive statute and certain i-egulationsof the Treas- ury Department, which at any time may be altered or revoked. The Canadian Pacific Road extends from ocean to ocean. It has one terminus through the Intercolonial at Halifax and another through a branch or terminal road it has through the State of Maine at a port, the name of which I have forgotten, just north of the boundary between Maine and Canada; and from there it extends to Vancouver on the Pacific Ocean. It has vari- ous connecting roads: the Soo railroad, so-called, from the Sault Ste. Marie through Wisconsin to St. Paul, and the Wabash 1447 14 i {i; system, which goes from Detroit; the Boston and Maine system on the east and the Vermont Central, the Ogdenaburgand New York. It has various roads, which operate as feeders, extending down into the heart of our country. On the Pacific coast there is a line of steamers (I do not know whether they are run under the American or the British flag) from San Francisco to Vancouver taking goods to be carried pver their road. They make rates from one end A this continent to the other for American goods carried through Canada, not merely goods whose transportation originally begins in the States of the northern border, but by means of these feeders on the coast, as well as inland, extending down into the heart of our country. For a reason I shall give in a moment they can afford to make always and every time a lower rate than any American road can afford to make, and they do make a rate low enough to secure the traffic. Thus, Mr. President, ashipperat San Francisco can send goods destined to New York up the coast to Vancouver, across the con- tinent by the Canadian Pacific, then down to New York by its eastern connection, at a lower rate than he can send by an American railway. How is it that theC madian Pacificcan com- mand this trade? It is because unless it had this traffic it could not exist as a business undertaking. It could not earn its own axle grease by Canadian traffic alone. After leaving Ontario it passes a long distance through unin- habited regions until it reaches Manitoba, where there is but a relatively small population, and after leaving there it goes through another waste equally long, and over the triple ranges of the Rocky and other mountains to British Columbia. But be- cause it earns nothing from Canadian freight it can afford to take American freight at any rate lower than the rate made by an AmericF«n railway, because whatever it gets is just that much more than nothing. This is the attack that is leveled by the Canadian corporation at the railway and transportation inter- ests of the United States. Now, if this was done by a merely commercial corporation it would be important enough and serious enough, but it is a very much more serious matter. The Canadian Pacific road was constructed primarily not for commercial purposes so much as for political, military, and imperial purposes. It was to make t> is railway and the Dominion of Canada the connecting link uetween Great Britain on the one side and her Asiatic and Pa- cific Ocean dependencies upon the other. It was intended to accomplish the same object for which the Dominion of Canada was created the consolidau'.on of the confederated Canadian Erovinces under one government in order to maintain their oraogoneity and their dependence upon and alleigriance to the British Crown. It was intended for the transport tion of troops and munitions of war from one part of Canada to another part of Canada, and to weld the whole together into one harmonious entity. These rates are made not merely from the coast; thoyare made from points inland. I can say that positively , because as a mem- ber of the Committee on Interstate Commerce of the Senate, in a recent hearing with reference to the amendment or repeal of the clause of the interstate-commerce act forbidding pooling, we had before us a very intelligent witness, havingafull knowledge 1447 i| 15 of our internal trade by railway, who testified to the fact that the Canadian Pacific road made rates to the East for their grain in the very heurtof Iowa, and thus from St. Paul, from Iowa, from Den- ver, from all points in the heart of the country, this marader u)^on our internal commerce and traffic levies its contributions upon our American labor. The fact that this was a political rather than a mere commer- cial scheme is shown in its innate character and policy; but there \a direct evidence in regard to it. Sir E. W. Watkin, member of the British Parliament, in a work upon " Canad' and the States.'" published in 1887, in his preface speaks abov this. Sir Edward Watkin made, I believe, some thirty visits across the Atlantic with regard to strengthening the British connec- tion. He says: Is this great work- It was the year after the railway was opened — the Canadian Pacific Railway, to be left as a monument, at cnco, of Can- ada's loyalty and fores «ht. and of Canada's bturayal; or is it to be made the new land-route to our Eastern and Australian Empire? If it is to be shunted, then the explorations of the last three hundred years have been In vain. The dreams of some of the greatest statesmen of past times are re- duced to dreams, and nothing more. The strength given by this glorious self-contained route, from the old country to all the new countries, is wasted. On the other hand, if those who now govern inherit the great traditions of the past; if they believe in empire; if they are statesmen— then, a line of military posts of strength and magnitude, beginning at Halifax on the At- lantic, and ending at the Paclflc. will give power to the Dominion, and wherever the red-coat appears coulidenca in the brave old country will be restored. Which lo it to be? Seme years ago. Sir John A. Macdonald said: " I hope to live to see the da/, and If J do not. th,nt my son may bo spared, to see Canada the right arm of England. To see Canada a powerful auxiliary of the Empire, not, as now, a source of anxiety and a source of danger." Later Sir John A. Macdonald, in an interview with a repre- sentative of the Pall Mall Gazette, said what I shall read from the testimony of Mr. .Joseph Nimmo, jr., before the Select Com- mittee on Relations with Canada, at page 894 of Senate Report 1530, part 2, Fifty-first Congress, first session: About three years ago Sir John A. Macdonald divulged to one of the edi- tors of the Pall Mall Gazette the politico-commercial idea upon which the whole Canadian Pacific Railway enterprise is based. He described it as a railroad extending from ocean to ocean, and superior to the American roads by virtue of that fact, and the fact that it enjoys a monopoly of the trans- continental traftli", of Canada. Then, in an outburst of enthusiasm, he an- nounced the fact that he was an imperial confederatlonlst, and a firm ad- herent of ' • Greater Britalnlsm. " Referring to the Canadian Paciilc Railway as a part of an enormous political scheme, he said ; " With England as a central power, with Australia and South Africa as auxiliaries, we (the Confederated Urltish Empire) must control the seas, and the control of the sea means the control of the world." The leaders of the political party in power in Canada to-day make no at- tempt to disguise their purpose. The Handbook of Canada recently pub- lished by the Dominion government, states that the Canadian Pacific was constructed ''in the Interests of the Empire at large, as well as those of Can- ada," and it adds that If these far-seeing plans had been taken up when first mooted, "Canada would have been at least two generations in atrvanee of her present position, while 'Greater Hritain' (i. «.. Urltish Imperial coufed eratlon) would have been in a much hlgherstate of development than it Is." This significant remark also follows: "It was a singular coincidence andperhaps a prophetic omen of the future imperial importance of this railway, that the first loaded train that passed over Us entire length from ocean to oeean was fi-eighted with naval stores belonging to the imperial war department, transferred from Quebec to Van- couver." In speaking of the negotiations for a British subsidy Id favor of the Caua- 1M7 mm 16 ^ dian Pacific ftteamer line to Cliina and Japan, the president of that railroad said in his annual report for 1887: '• The Imperial Interests Involved In this question are so important that there can be little doubt of a satisfactory result." If this matter were confined to railway transportation it could be thwarted; but the scheme is more far-re;iching, and in part it has been carried out. In connection with the C.inadian Paciflo road there has been established on the Pacific a line of fast steamers, heavily subsidized by the British and Canadian Gov- ernments, running from Vancouver, the Pacific terminus of the Canadian Pacific road, to Jap.in and China by one route, and to Australia by the other; while ships are now building under the assurance of a like subsidy and like speed, faster, or as fast a» any yet put upon the ocean, to run betwean Halifax and Liver- pool. This means British invasion of the Pacific market— the last refuge of the once almost triumphant American marine. Un- til this competition arose the Pacific Mail and other lines of American steamers commanded *he trade between San Francisco and our other ports on the Pacific coast and Japan, China, Hawaii, and Austnilia, and generally our American trade in what up to recent times has been a most remote region of the globe. The condition is now different. At the outbreak of the civil war we had the seoond gre itest marine of the world anl were fast chal- lenging British supremacy. The Alabama, the Shenandoah, and the Florida put an end to that. Sailing from British ports, our Southern friends were able to drive the knife home to our vitals. It remains to be seen whether by this bill they will succeed ia increasing the damage which was inflicted then. But this imperial extension does not stop with the I'ailways or the fast sailing vessels at the ocean termini of the railroads. There is now projected an ocean cable between Vancouver and Australia in opposition to a French cable which has been pro- jected to one of the Australian colonies, I believe, from some point on the coast of Asia. On the 2l8t of the present month there is to meet in Ottawa a conference of repressntatives from Great Britain, the Australian colonies, and the Dominion of Canada, to consider the joint and respective subsidizing of an ocean cable from Vancouver to Australia as a completion of this imperial scheme of commercial advantage and military aggres- sion and defense. I read at this point a short extract from a letter to the Lon| don Times of the 25th of May last from a correspondent who has been writing voluminously to the Times from Canada with re- gard to the matter. He says: And for what purpose was this mighty barrier of the Rockies and Selklrks, 600 miles wide, to be crossed? Not to tmitetwo Kreat communities striving for closer Intercourse, as was the case when the 40,000,000 people of the Eastean and Western States, al- ready advanced far beyond the Mississippi, made the first American line across a narrower range of mountains to get In touch with San Francisco, and the large population of the Pacific States, which was also pressing up to the Dase of the Ho'kles. In Eastern Canada there were only 4,000, OOJ peo- ple: in lirltish Columbia there were less than 50.000 white people— the pop- ulation of a small English manufacturing town— and few of these on the mainland, when the railroad was undertaken. It was to complete and round off a national conception; to pave the way for commercial and political advantages as yet far remote, and by many deemed imaiinary, that the work was faced. British Columbia. Insignifi- cant in population, was significant enough in position and in some of its resources. It fronted on the Pacific; it had splendid harbors and abundant coal; it supplied a new base of sea power and commercial iuQuence. U 3Ug- 1447 17 gested a new and short pathway to the Orient and Australasia. The states- men at Ottawa, who in 186" be^an to look over the Rockies to continents be- yond the Pacific, were not wanting: In Imagination: many claimed that their Imagluatlou outran their reason; but In the rapid course of events their dreams have already been more than Justified. They were, perhaps, building even better than they supposed. We now know, when Japanese and Australian mall and trade routes are already accomplished facts, and Pacific cable schemes are being dl8ous.sed. and the docks and fortifications of Esqulmalt are being completed jointly by Britain and Canada, that they were supplying the ml.-islng Joints and fastening the rivets of empire. While they were doing this they were also clving politi- cal consolidation to the older provinces of Canada. Common asplrathms and a great common task, with the stirring of enthuslam which followed on the sudden widening of the Canadian horizon, did more than anything else to draw those provinces out of their own narrow circles and to give them the sense of a larger citizenship. So, though British Columbia made no great addition to the population of Canada, its absorption Into the Dominion some yeais after confederation, and the pledge of a transcontinental railway which was the condition ot that absorption, marked a great turning point in Canadian lUstory. Vancouver is the meetlni? place of the Empire's extreme west and east and south, for of the two main lines of steamships which frequent the port, one has Its further terminus at Hongkong, the other at Sydney. Their pres- ence vindicates the policy which led Canada to make such sacrifices to se- cui'e a base upon the Pacific. Mr. President, it does not even stop there. I brought with me, but can not lay my hands upon it this moment, a clipping from the London Times which says that on April 25 It had in- telligence from Apia that the conference at Ottawa would con- sider the question ol the disposition of Samoa, and that colonial interests require the putting to an end of the tripartite arrange- ments now governing Samoa. So, Mr. President, we mark the interesting advent of a new feature in the dominion of the world. We have known in the past plenty ot things that have been done in support of British interests, but we now have the introduction of colonial interests. I trust that the day will be long distant when for any consider- able time, at least, there will be a disregard in this Chamber ot American interests. But this feature )f the question does not rest here. It began with the existence and presence on our Atlantic coast ot the fortifications at Halifax, Bermuda, and Kingston in Jamaica: not aimed at Fi-ance, not aimed at Europe, not aimed at Ger- many,, nor at Russia. They can be aimed at nobody but the United States of America and her colonial po->ts. Now, we are having added by the joint cimtributions of British and Canadian funds a like fortification aA Eaquimault, in the n ighborhood of Vancouver. It is idle to say that it is being built t^cause of the Russian fortress at Vladiovostock on the tar-olt' Pacific shore of the Rassian Po.-sessions. It is a menace and a thi'eat at Paget Sound, and Portland, and San Francisco, and San Diego. It can be no other. I do not find fault with this. Everybody has a right to take care ot his own, and Gieat Britain has a right to take care of her own. What I do find fault with is that these grave facts are being ignored by American statesmen, who thereby fail to take care of their own. But, Mr. President, not only these lines of shipping, but the Canadian Pacific road itself Was built by subsidies. It never 1447 8 18 m could have been built otherwise. The amount which waa given in va'"ious forms and ways for the construction of the lines of railroa<' aim been variously estimated at from two hundred and fifty to three hundred million dollars, in addition to the subsi- dies that are given to the line of steamships from Vancouver to the Orient and to Australia, and that are to be given on the line from Halifax to Liverpool, and upon the proposed oceanic cable from Vancouver to Australia. We hear enough of the doctrine of Cobden — laissez faire — let things go as they will. I do not propose to trench upon the ground treated of in such a masterful fashion by the junior Senator from Massachusetts [Mr. Lodge] in the earlier stages of this debate. No more striking illustration of this is furnished than by the present example to which I am alluding, that while Great Britain wisely relies upon free trade where it is to her advantage, she does'not hesitate to offer subsidies and bounties, and to apply the doctrine of protection wherever that will be to her advanfcige. So we have built around us by subsidies a cor- don of railway and steamer lines encroaching upon our domestic and foreign commerce, as well as a military and naval cordon that in any time of ditTerence would be precipitated upon our undefended cities and shores. Mr. President, in this dark picture there is one bright spot that gleams out on the skjr like the North star, shining with no borrowed light, drawing its luster from no sun, a lesson of cour- age and of statesmanship worthy to be learned by the men who, sitting in this Chamber, direct the destinies of the American Re])ublic. I refer to that noble band of Americans in Hawaii, the picket guard, the outpost of American interests, standing there by themselves, loyal to the country of their origin, loyal to the ideas which carried them there, not to be seduced and not to be driven even by the resistless power of that Ilepublie for whose interests they have stood and whose rulers with folly predestinate strove to overthrow them. Mr. President, there is one safe point for American interests in the Pacific Ocean. There is no merit in the American Gov- ernment; but a good deal is due the American people for the in- fluence they have exerted in this critical exigency iu their affairs. This country, with its vast resources, with its magnificent pos- sibilities, with a prosperity up to the time of the udven*^ of the Democratic Administration without parallel in the exj rience or history of the world, could well afford to contemplate with equanimity and relative indifference any pi-osperity which Can- ada might have by any means whatsoever. We mis formed by the chinook winds coming across the low passes the Rocky Mountains to the north make the land habital)l< and arable and profitable to oc- cupy away up on the Peace River of the North. To-day the Senate is going to vote to break down the barrier be- tween the American people and that land and turn the tide of emigration north. Mr. President, shall they go there under the American flag or go there under Her Majesty's flag? That is an issue of great moment to this continent and to all who live on it now or hereafter. So far our policy has kept our people within our own limits. Now, there is proposed one which will expatriate our people and send them as emigrants upon a foreign soil. 1 say to our South- ern brethren, who held the other day a convention at Augusta to advance immigratiou to the South, that their talk is idle . They 1447 22 can not compass it by the policy of this bill. Not South will this hungry people go to buy land or to compete with the negro. You are going to send them north tc build up a new empire under an alien flag. Mr. President, to the Senate, to the country, to the continent and its people there is presented the most momentous question of the day. Compared with it, your talk about parties and pros- perity and power, or wealth or taxation or welfare, is idle and relatively unimportant. It is the great question of peace or of war. We have had it before. This is not the first time this people have had that issue presented to them; and when they were confronted with it they gave no uncertain answer or sound. No one I'ecognizes more than I do the ine.xorable influence that drove the South into rebellion. But, Mr. President, if the South did not fight to preserve slavery, the North did not fijjfht to destroy it. If the South fought for the right of secession, the North was nerved to the expenditure of its last dollar and the last drop of its blood because it intended that there never should be on this continent, if it could help it, two governments. We should not adopt a policy that would create on the North the same conflict that we had made upon the South, and I said it in terms without any reflection whatever upon the causes that led to the late civil war. Now, Mr. President, because of the 5,000,000 people on the Noi'th we have the least possible concern. It is not a power that threatens us in the least. Coupled with the military and naval power of Great Britain, it becomes a matter of much more concern, and yet we take it easily. But it will be a matter of vital difference when Canada contains a population of 20,000, 000 or of 50,000,000. Then, Mr. President, we shall again have the ques- tion presented of peace or war. As I have already pointed out, the existing foreign military establishment of forts and naval armament is a threat and menace upon our coasts. When that comes, whatever the time or period may be, there will be a trial of strength. Mr. President, the matter would be very different if Canada were independent of Great Britain, but asadependency of Great Britain she becomes a part of the European system, a system the character of which is best designated by the term used as "the balance of power." She is subject to all the vicissitudes of war and peace to which Great Britain herself is subject, grow- ing out of European and Asiatic complications. We have no cause of war that is not distinctively American, but Canada ia involved in all causes of war which are European or Asiatic. The difterence between Russia and England in India may create war for Canada. The diiTerences between France and England in Africa may create war for Canada. She is liable to become involved at any time, and whenever she does the inter- ests of nations determine their course and their policy, just as in the war of 1812 or in the Napoleonic wars we were finally involved in conflict with Canada. So in the future we aro likely to be. To-day, growing out of Asiatic and European complica- tions, England is the silent partner of the Triple Alliance or the Dreibund made up of Germany, Austria, and Italy. Against them stands the tacit alliance of Russia and Prance. I can conceive that in the event of the conflagration of war 1117 23 breaking out upon the European continent we should find that our interests were identical or at least lay alongside of those of Russia and France. It would not be so if England were to withdraw from this continent. With that witlidmwal would end as far as it would be possible the schism of the English- spe. iking race which began more than a century ago. Then the foi'ces of a common language, a common law, a common litera- ture, and a common religion would draw us and England together with all their peculiar and ap()ropriate force. To-day we are divorced because she insists upon holding on to her possessioa upon this continent, invidious and essentially hostile towards us. For that we have great authority. The Articles of Confedera- tion included a clause that at any time Canada could become a member. Our army in the Revolutionary war was called the Continental Army, becaui^e we proposed to include the entire continent. When we came to the peace of llS',i it was Franklin who constantly insisted with the British negotiators that wo should have Canada, because thereby only could we have peace. Our experience in 1812 is a pregnant confirmation of his pres- cience and his wisdom and the truth of his declaration, although peace has prevailed from that time until now. Mr. President, the McKinley act, which places practically f)rohibitive duties upon the natural products of Canada, was a ong step in the true solution of this question. Even before it was enacted great restlessness was being manifested in Canada because of their need of access to our markets free f roni any tariff restraint. Whatever may be the course that is taken upon this bill, it need not be expected that the American people will permit its enactment to stand as a settlement. You may succeed in pass- ing the pending bill and strike this blow at the welfare and future peace of the English-speaking race upon the American continent, but that race is too strong, too sagacious, too sensi- ble to permit this temporary obstruction to stem the tide of its imperialdestiny. Thependingbillisbut the ephemeral expres- sion of fOrcesessentiallysecondary. The primary and everlasting forces will speedily reassert themselves. Four years hence will see a President and Congress here that will tear the bill to tatv^vs and re nact laws and policies that are for the lasting welfare of all the people of this continent. ua - O war