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171

-i

THE

EECIPROCITY TREATY :

ITS ADVANTAGES

TO THE UNITED STATES AND CANADA.

% b 'i -J

THE

RECIPBOCITY TREATY :

Its advantages to the United States and to Canada.

FIRST PRIZE ESSAY.

By Arthob Harvey, Esq., Fellow of the Statistical Society of London, Eng., Slatistical Clerk,

Finance Department, Quebec.

FOR many years after the United States had estab-
lished their independence, tlieir trade witli the
Colonies which continued to own allegiance to the
ISritigh Crown was subject to most galling restric-
tions. Partial relief wa.s afforded by the convention
negotiated in 1830, by Mr. JlcLane, President Jack-
eon's Minister at the Court of at. James ; and a further
step towards freedom in commerce was taken in 184(),
when the American Government secured the enact-
ment of a drawback law. The beneficial results of
these measures led to the introduction into Congress,
in 1848, of a BUI for Reciprocal Free Trade with Can-
ada in certain articles. It failed to become law, but
attention having been thus directed to the subject, the
Senate, in 1851, requested the Secretary of the Trea.
eury to eomunioate to it all the information he could
gather relating to the commerce of the Provinces with
the States. Mr. Corwin selected Mr. Andrews to col-
lect and tabulate the statistics bearing on this Trade ;
and that gentleman's report, transmitted to the Senate
in August, 1852, had a most important influence on the
lubsequent action of the British and American Gov-
ernments and Legislatures.

Mr. Andrews reported :

" That the fhje navigation of the St. Lawrence was
greatly desired by all those Western States bordering
on the great Lakes, as their natural outlet to the Sea.

" That the fVeo navigation of the St. John would be
of great advantage to the extensive lumber interest in
the North Eastern portion of the Union, and that the
repeal of the New Brunswick export duty on Ameri-
pun lumber floated down that river would be but an act
of justice to the lumbermen of that quarter, upon
whom it presses severely.

"That without a free participation in the fisheries
near the shores of the Colonies, the American deep-
sea fisheries in that region would become valueless.

" Tliat it would be wise to place the border trade be-
tween the United States and tlio Colonies on a iliirc-
rent basis, and uiider the influence of a liighcr princi-
ple, so as to mature and perfect a comiilcio nystcni of
mutual exchanges between the dilforent sections of
this rast continent— an achievement not only wise and

advantageous, but .yorthy of the high civilization of
the country."

After much correspondence between the Govern-
ments interested, and many debates in the American
and Colonial Legislatures, in wliich some opposition
to freedom of Trade was shown by the Pennsylvania
manufacturers and the Maine lumber interest, and
much opposition to admit Americans to the coast fish-
eries was displayed by the Maritime I'rovincos, the
British Government gave the Earl of Elgin fidl powers
to negotiate a treaty in accordance with those views,
and Mr. W. L. Slarcy having been named plenipoten-
tiary by the President of tlic United States, the Reci-
procity Treaty was drawn up. (a) It was " done in

(a) The Reciprocity Treaty consists of seven articles:
Article I gives to the inhabitants of the United
States, In common with tlie subjects of Her Biitannio
3Iajef ty, the liberty to take fish, of every kind except
shell fifth, on the sea coasts and shores, and in the bays,
harbours and creeks of the British North American
Provinces.

Article /A gives similar privileges to British subjects
in American waters.

Article III stipuliites that the following articles,
being the growth and produce of tlie British Colonies
or the United States, shall be admitted into each coun-
try respectively, free of duty :

Grain, Flour and BreadstufTs of all kinds; Animals
of all kinds; Fish, smoked and salted meat^; <;otton
wool, seeds and vegetables ; Undrled fruits, dried fruits ;
Fish of all kinds ; Products offish, and all other crea-
tures llvinj; in the water; Poultry and eggs; Hides,
furs, sl'.ins or tails, undres.sod; Stone or marble in Ita
crude or unwrought state; Slate; Butter, cheese, tal-
low; Lard, horns, manures; Ores of metals of all
kinds; Coal; Pitch, tar, turpentine, a8h<f,t; Timber and
lumber of all kinds, round, newed, sawed, unmanufac-
tured in whole or in part; Firewood, plants, shrubs
and trees; Pelts, wool; Fish oil; Rico brooms, corn
and bark; Gypsum, ground or unground; Hewn, or
wrought or unwrought burr or grindstones; Dye
stufTs; Flax, hemp and tow, unmanufactured; IJnma-
nufactured tobacco; lings.

Article /Kcxt^Mids to llu' inhn1)itnnt.s ,if the United
Stiitcs tlio right to naviguto the Kiver St. I.a\vrciic(>
ami th(> caniils in <'aiia<la, used us tliu means of com-
niuiiicatins bi'twi'on th(> (iri'Ut l,uk(>s and the Atlantic
Ocean, witii their vessels, boats and crafts, as freely
as the subjecta of Her Majesty. It also gives to British

PRIZE ESSAY.

triplicate at Washington on the 5th of Juno, 1854." It
went into elToct in Canada on the 18th October, and
was put into full operation in the States by tlio I'resi-
dcnt's Troclamation of March ICth, 1^55.

For several years afferwiinls, iintliiiij; but satisfac-
tion was expressed at the working of the new arranffe-
mentM; but when the liscnl necessities of Caimdu ren-
dered an increase in its revenue necessary, and heavier
duties were levied on manufactured goods, the frontier
towns of Now York State, whose exports of such arti-
cles began to decline, complained that the si)iiit if not
the letter of the Treaty was being broken. Each suc-
cessive increase in the Canadian tarilf was made the
pretext for renewed complaints. 'I'lie American (Jov-
ernment began to act less liberally thar. they were
wont towards Canadian merchants. Heavy consular
foes began to be exacted on imports from Canada.
I'roof began to be demanded, that our exports of grain
were " the growth and produce of Canada," ami much
of the carrying trade wo liad begun to enjoy v.. is tlius
cut off. The Legislature of the State of New York re-
ported that the action of the Canadian (iovernmeut
was nnfair, and requested its representatives in Con-
gress to protect tho interests of the IJepublic from the
"unjust and unequal system" said to prevail. And
although this statement was ably answered by 3Ir.
Taylor and the Chamber of Commerce of St. I'aul,
Minnesota, (a) and refuted by Hon. Mr. (ialt, (h) then,
as now, Finance Minister of Canada, who pronounced

subjects the right freely to navigate ],ake Michigan.
Hy this article tho (Government of the United States
engages to urge upon the Stati- governments to secure
to the subjects of ller IJritannic Alajesty the use of the
spveral State canals, on terms of equality with tlie in-
iiabitants of the United States. It also s'tipulates that
no export dutie.^ shall be levied on lumber cut on Ame-
rican territ'..ry, float. ' down the St. John and ox-
ported from New Br'. . ■•ok.

Article V state* t',;.' ihe treaty is to continue in
force for ten yearr '■ ■■■ 'le time of 'its going into ell'ect,
after which it shal. ; , ninate on either party's giving
one year's notice.

Article VI provides for the extension of the Treaty
to Newfoundland ; and

Article I'// makes tho arrangements for its mutual
ratiiication.

(a) " Wo venture the further statement thct all par-
*' ties to this Treaty have hitherto observed its stipula-
" tions in good faith. The Americans possess and en-
" joy their enlarged rights in the Hritish fisheries of
" the North-Eastern coast, and tho free navigation of
"the St. Lawrence; neither (iovernment has inter-
" rupted the exchanges of tlie free list prescribed by
"the third Article; while upon a subject purposely
" excluded from the provisions of the I'reaty; viz.: the
" Tarilfs of the United States and the adjacent I'ro-
" vincesin respect to articles of manufacture and fo-
" reign productions there is no legitimate ground of
" complaint in any nnarter. Trior to ISUl, the duties
" by the Canadian Tarift' were considerably enlarged
" after 1854; but recently the American scale of duties
" has been advanced in a still greater proportion. Jn
" both ca.ses the changes have been enrorced I y tjian-
" clal necessity, and do not conflict with tlie Tieai-' of
" 1854."— Memorial of the Chamber of Commerce,'.-;!,
raul, Minn., January 17th, 1862.

(6) " To allege that the policy of this Government
" has been avowedly to damage our neighbours is an
" injurious imputation which was scarcely to be ex-
" pected from the repre.sentatives of a nation whose
" commercial policy is itself so exclusively national
" and restrict!' e. * * « If complaint can Justly be
" made of the infraction of the spirit, and, it may be
" added, letter of the Treaty, it rests with Canada to
' be the complainant. * * * It is a subject of deep
" regret to tho undersigned that the Committee on
" Commerce should have framed their reixirt and re-
" commendations in a sjjirit of aeonsation and eom-
" plaint, rather than upon a correct appreciation of
" mutual advantages in the past inducing further pro-
" gross in the same direction in the future."— Keport
• Jtfr. Uftlt, March 17tb, 1862.

it " unjustifiable," a resolution introduced into Co
gross, by Mr. Ward, in December, 1S63, was carried
and tho I'resident was authorized to suspend the ex-
isting Treaty, and ai)point Commissioners to negotiate
a new one. (a) Notice was accordingly given in Lon-
don on the 17th Starch, 1S05, and information thereof
reached the (iov(.rnor (ieneral at Quebec on the Ord
Ai>ril.

It is perhaps allowable here to take a rai]i<l survey of
the regions most interested in the Treaty, which are,
Jimfty, those beside the Lakes, their natural outlet by
the St. Lawrence and their artificial one by the Hud-
son ; and, svcondli/, tho North-Kastern States and I'ro-
vinces.

The basin of tho Lakes has, for the last two decades,
presented a spectacle of material progress unexampled
in the history of the world. Cities whoso very names
W(.re not marked on the maps from which, as school
boys, we learned geography, now count their popula-
tion by tons of thousands; and the Atlantic seaiiort, to
which their trade converges, already boasts of far
more than a million of souls, (h) Nor havo the rural
districts, admirably adapted by soil and climate for tho
support of a dense population, lagge<l behind. Thoy
have attracted an unprecedented tide of immigration,
and on looking at the census, (e) it would seem that a
region must have been in some way connected with
the Lakes to maintain its relative position amongst tho
States and I'rovinces of this Northern continent, (rf)

(a) J}e it liesolved by the Senate and House of repre-
sentatives, cfec:

"That the President of tho United States bo, and ho
" is hereby authorized, by and with tho advice and
" consent of the Senate, to appoint three Cimimlssion-
" ers, to confer with persons duly authorized bvtireat
" Uritain in that behalf, to negociate a new Treaty,
" based npon the true princiides of Keciproclty be-
" t'veen tlie two tiovernments and the people of both
" countries, with the view of enlarging the basis of tho
" present Treaty, and for the removal of existing difii-
" culties." — I'roceedings of House of IJepresentatives,
December 14th, 1863.

(h) The increase between the last two census-takings
of the chief cities on the Lakes and their outlets, is as

follows: POPULATION. KSTIMA'l).

1860. 1800. 1805.

Milwaukee 20,001 45,246 70,000

Chicago 29,003 10it,2f)0 180,000

Detroit 21,019 46,619 60,000

liullalo 42,201 81,1'29 100,000

Hochester 30,403 48,204 00,000

New York and Brooklyn 012,385 1,072,312 1,250,000

1852. 1801.

Hamilton 14,112 19,096 25,000

Toronto .. a0,775 44,821 50,000

Kingston 11,585 13,743 15,000

Montreal and suburbs . . 60,000 .'01,602 "'20,000
— From Census of United States and Canada. Esti-
mates, from Keportj of Boards of Trade, &c.

POPULATION. ESTIMATED.

1860. 1860. 1865.

W;rcoi:sin 305,391 775,881 1,000,000

Micnigan 397,ti54 7't9,113 900,000

Illinois 851,470 1,711,951 2,000,000

Indiana 988,410 1,350,428 1,500,000

Ohio 1,980,329 2,339,502 2,500,000

I'ennsvlvania 2,311,780 2,iK)6.115 3,000,000

New York 0,097,004 0,880,706 4,200,000

1852. 1861.

Canada 1,842,265 2,507,657 2,900,000

To these should, perhaps, be added :

Minnesota 6,077 172,023 250,000

Iowa 192,214 074,913 800,000

(<l) All the States did indeed increase absolutely be-
tween 1860 and 1800, but not In the same rehitive pro-
pin-tion. An Interesting table, i)ubllshed In 3Ir. Ken-
nedy's report on tho census, piig(* 120, shews thatNew
YorK, I'euusylvauia and Ohio, remained iu their proud

The valin
consin, S
nia. New
000 in 185
The Im
to 77,000
Increase,

Wheat g

Corn

Oats

The rai
every dir
magic.

position I
from the
Wisconsi
10th. 15
became
Massachi
svlvania,
\Ve=terii

(a) Vi
returns:

PRIZE ESSAY.

oducpd into Co
1863, was carripcl
Husipcnd the ox-
imcrs to iK'gdfiato
tly given 111 J.(in.
iiriiiutidii tliereof
lebec on I lie Oril

n rajiid survey of
reafy, wliicli are,
tinturul outlet by
one by the Hud-
11 States and I'ro.

Inst two decades,
ress unexamplod
lioso very names
wiiich. as school
nt their popiihi.
Iaiifics(>iiiiiirt, to
ly boasts of far
r have the rural
id climate for tho
d beliind. Thoy
of immigration,
)uld seem that a
connected with
ion amongst tho
rn continent, (rf)

House of repro-

!tates be, and lio
tho advice and
•ee C<mmiission-
tiorizedbyiireat
' a new Treaty,
Iteciprocitv be-
B people of both
K the basis of tho
of existing dilli-
Uepresentatives,

t) conans-takingR
pir outlets, is as
ION. kstima'd.

/.?.

800.

5,24G

.t,2f)0

5,619

1,129

?,204

1805.

70,000

180,000

60.000

100,000

(jO.OOO

!,312 1,250,000

25,000

50,000

15,000

■'20,(K)0

p:sti.

1,096
1,821
!,(43
,602

Canada.
), &c.

d of Canada is

ESTIMATED.
1865.
1,000,000
900,000
2,000,000
1,500,000
2,500,000
3,000,000
4,200,000

67 2,000,000

23 250,000
13 800,000

absolutely be.
relative pro-
I ill Jfr. Ken-
lews that New
iu their proud

The value of real estate and personal property in Wis-
consin, Michigan, Illinois, Indiana, Oliio, I'ennsylva-
nia, New York, and Canada, increas(>d from .«3,000,*XK),
000 in 1850, to nearly S7,000,000,(KX) in 18r/).(a)

Tho improved lands increased from 51,(K)0,fHXt acres
to 77,00O,fXKt, and the grain raised shows a similar
increase, viz.:

1850. 1800.

■\Vheat grown, bus.(&) 8.3,500,000 127,0<ii),(iOO

Corn " " 217,000,000 ;j'20,(XKl,000

(tot.s " " 104,000,000 1.72,000,0<X)

Tho railroads which now traverse these countries in
every direction lr.xve sjirung into existence as if by
magic. In 1850 there wore but .3500 miles completed;

jiosition at the head of the list: that Illinois advanced
frurn the lltli to the 4lli: liuliana from 7lh to tith;
Wisconsin from 24th to 15th; Michigan from 20th to
loth. lint even energetic (ieorgiu lost two places and
became eleventh ; Virginia declined from 4tli to 5tli;
Mas.sachusetts from Otli to 7tli, and Kentucky, I'eiiii-
svlvania, Ac, lost caste in comparison with their North-
Western sister States.

((/) Value of Ileal Instate as given iu the census
returns:

1850. 1800.

Wisconsin !e42,050„'')95 8273.071,0O.S

Michigan 59,787,255 2f')7,l(«,983

Illinois l.')0,205,(HMi 871,800.282

Indiana 202,tw0.2fVt 528,R'35,371

Ohio 504,720.120 1,193,898,422

I'ennsvlvania 722,480,120 l,4lO,.fK)l,K18

New Vork 1,080,309,210 1.843.338,517

Canada 300,000,000 550,000,000

»3,0C8,28O,570 80,935,270,001

(The census of Canada gives the value of farms only,
viz. :

1852 $203,510,192

1801 406,075,384

An addition has been made for city property and
personal estate.)

Tlie increase in lands improved was as follows :

1850. 1800.

■\V isconsin, acres 1,045,499 3,74t),030

Michigan 1,929,110 3,419,801

Illinois 5,039,545 13,251,473

Indiana 5,040,543 8,101,717

Ohio 9,8.'')1,493 12,005,587

IViinsylvania 8,023,019 10,403,300

New York 12,408,904 14,370,397

Canada 7,307,950 10,855,854

51,252,723 76,940,231

51,262,723

Increase in ten years, acres 25,087,508

Tlie increase in agricultural productions is shown by
the following table, of which the details are interest-
ing, since they prove that New Yol-k and I'ennsy-
Ivaiiia grow less wlieat than formerly, and dejieud
more on other regions for sustenance.

(6) Wheat ouowk— 1850. 1800.

Illinois, bus 9,414,575 24.1,59,500

Indiana, " 0,214,458 15,219,120

Michigan, " 4,925,889 8,313,185

New York, " 13,121,498 8,081, liX)

I'enn., " 15,307,691 1.3,(H5,231

Wisconsin, " 4,280,131 15,812,025

Ohio, " 14,487,351 14,532,570

Canada, " 15,75(5,493 27,274,779

83,574,080 127,038,110
Indian Corn raised—

Illinois, bus 57,040,984 115,290,779

Indiana, " 52,9»H 3(>1 09,041,591

Michigan, " 5,041,420 12,152,110

New York, " 17,858.4<"K) 2(),(Hil,048

I'enn., " 19,8aV214 28,190,821

Wisconsin, " 1,988,979 7,505,2iX>

Ohio, " 59,078,095 70,037,140

Canada, " 2,090,094 2,591,151

217,104,119 320,141,930

in 1800 there were 17,000, (a). Ihe tonnage of llio
lakes, which was but 215,787 tons in 1850, was 450,000
tons ill 18(2, {/>). As might naturally be exnectod
fniiii such an increase in the means of transportation,
the commerce of the Luke region has increased in pro-
portion. To give one item only. The movi ment of
grain Ka.-tward, which was about 20,000,000 bus. in
18.'>0, reached tin- enormous aiiiouiit of 137,772,441 bus.
in 1802, (c) and 1:58,798,074 bus. in 18(i3.

Oath {shown —

Illinois, bus 10,087,241 15,ay>,072

Indiana, '• 5,t'.iV),014 6,028,755

Michigan, " 2,80t),0.50 4,073,098

New York, " 20.'>)2,814 ,'55,176,13;j

I'enn., " 21.5;iS,l,-,ii 27,387,149

Wlscou.sin, " 3.414,r,72 1I,(j69,270

Ohio, •' 13,472,742 15,479,133

Canada " 20,309,247 3.8,772,170

103,9.55,942 152,310,780

Nor did the jiro^rress of the .States stop even when the
Iicliellioii began. Kiiriii IJlodget, in a remarkable
pamphlet on •• the Coniuieri'ial and Kiimncial .Strength
of the liilted .States," 18154, shows that tin? "quanti-
ties handled" in 18t53 were " more than thirty »<;rce«<.
over the (nuintities of 18tj0." and gives the udlowing
table of" Domestic Kxports of the Loyal States":

In 18;j9-00 S173,7,59,(5(i4

im)-m 201, (551, .5.54

^>il\\-^fZ 213,0(59,519

lS02-0;3 305,884,998

lie adds, " we have a right to claim tliat almost the
entire advance in value from 1800 to tlie close of June.
180.3, was a legitimate and reasonable increase, caused
by no intlation or deiireciation of the currency."

Compare ti.'" nddress of the Illinois delegates of 1803
to the (ioveriior (i^""ral of Canada: " With otic-tviitli
" of the arable surface ..:.'— cultivation, the iirodiict
" ef Wheat of the North- Western States in 1802 is
"estimated at 150,000,000 bus., and of Indian Corn at
" 5(X),000,000 bus."

(a) Itailroads in the Lake States and Canada :

1860. 1860.

New York, miles 1,403 2,702

I'ennsylvania, " 822 2,542

Ohio, " 575 2,999

Indiana, " 228 2,126

Michigan, " !W2 799

Illinois, " 110 2,808

Wisconsin, " 20 922

Canada, " 12 1,974

3,512 10,932

Cost of the same $132,220,000 $723,579,641

(h) Tonnage of 1S.',0, from Andrews' Keport, page
,52. That of 18(52 from Keport Chicago Hoard of
Trade, 18(53, p. 59. The nationality of the craft was :
American, iTons... 3(51,997 .... Value. . .!?ll,3&t,100
Canadian, " ... 88,896 .... " ... 2,607,500

450,893 §13,971,000

(f) The amount of grain sent Kastward depends
much on thi- abundance of the harvest. Wo have no
figures for the jieriod between 1850 and 18,50, but the
following table shows the <iuaiitity sent Kastward in
eadi year, excejiting those in that interval— {Flour con-
verted into (irain):

18,50, bushels 26,000,000

1850, " 57,707,709

ia57, " 44,111,'299

1858, " 58,872,566

1859, " 44,354,'225

1860, " 78,(539,420

18(51, " 120,741,861

1802, " 137,772,441

1803, " 138,798,074

1804, " 100,007,384

Tho above figures aro ft-om a jiapor read by
the author before the I..iterary and Historical
Society, t^uebec, supplemented as to i;5i53 and 1804 by
those in the renort of the Montreal Board of Trade,
18(54, from which we take the annexed table, showing
the manner in which thisgraiu reached the Eaateri)
Status and rroviucea in 1863 :

Tliig woudorful progrpss i» not to bo attributed to
any one cause; the I'xodus from Ireland, (jcrmany,
and Norway, tlio adoption of a Krp<' Trade policy by
England, the expenditure of about $1,000,000,0<JO on
railroads and canals- -all these have powerfully contri-
buted to make the lands around the lakes attractive to
capitalist and laborer, liut not the least among such
causes, and one which especially concerns commercial
men, has been the enactment of the Itcciprocity
Treaty and the freedom ot trade which these regions
have consequently eiyoyed.

The Lakes and their connecting rivers have a coa.st
line of upwards ;'4000 miles— half British, half Ame-
rican. At numerous points Canada and the States
actually indent each other. Hero Canadian, there
American railroads and canals offer to the joint com-
merce of the two countries the shortest transit, the
clieapost and most rapid means of conveyance from
East to West. Here Canadian, there American mar-
kets are the best or the most convenient for the people
of the neighbouring districts to buy or sell in. It has
been permissible since 1856 for the inhabitants of eilier
side of the frontier freely to use the facilities afforded
by the other, and a trade lias grown up whica, though
before Keciprocity it never exceeded »13,000,000
per annum, now averages about 840,000,000, surpass-
ing what the entire foreign commerce of the States
was for several years after the beginning of their
government, (a)

R(!Cci7c<l nt

FI<.ur,br!p

Whmt.bu

MalzOjlm.

Utinfr
niln.hu.

Western Ter. Bait.

and Ohio K. U...
Western Ter. I'enn.

Central K. It. . . .
Detroit

750000

850000
1060026
1126260

620230
2978089

775000
1500

1152! t2
242;5()

47541)5
1193286

1774726

6194130

86905

21240348

'85000

878.5425

206856

600299

5509142

838295

17050iH)

19103f)

20086952

267^67

8H)98

1057299

862544

450000

ISOOOOO
681523

Toledo

7it5!»;53

Dunkirk

11789

Buffalo

8,385945

Suspension Bridge,
(ienesee

1500000
25(KX)

Oswego

2364169

CajM! Vincent

Ogdensburgh

Montreal

15730

26000

1413958

Totals

9!«)9384

44482S31

26i)9927G

174651047

(a) Statement of the trade of the United States with
Canada :

Imports Exports

from Canada, to Canada.

1849 84,234,724

1850 $4,285,470 5,930.821

1851 4,956,471 7,929,140

1852 4,669,969 6,717,060

1853 C,278,116 7,829,099

1864 6,721,539 17,30O,7(H5

1865 12,182,314 18,720,344

1866 17,488,197 20,883,241

1857 18,291,834 16,574,895

1868 11,681,671 17,029,254

1869 14,208,717 18,940,792

1860 18,861,073 14,083,114

1861 18,646,457 14.361,858

1862 16,253,16^ 12,842,504

1863 18,816,999 19898,718

The above figures are from 5Ir. Cliaso's letter to tli ;
House of Representatives, January 28th, 1864.
It is remarkabli) how closely tliey agree with the
The last nine years sum up thus :

Canadian returns.

Import*! from Export* to
Canada. Canada.

9145,329,914 8153,334,720
Exports to Imports from
U. States U. States.

Our o^vn returns sum up to . $141,704,429 $183,611,249
Something should be added to the Exports both
from Canada and the States tor '• short returns," and
tlie figures would then correspond to a nicety which
almost proves their correctness, and is highly credita-
ble to the statiiitical ofiicera of both countriea.

If wo now turn to the F^^ifward wo shall see a>
entirely diffi'rent scene. 'I'he Noth-Eastern communi-
ties, living under a less genial sun, and possessing a
l(>ss fertile soil, look to the sea for a great portion of
their harvest. The value of the deep sea fisheries of
Massachusetts, in 1860, (a) was no less tlian »9,300,442,
of Maine and Connecticut over 81,000,000 each, and that
of the British Provinces $8,000,000, (/<). The tonnage
engaged in fishing, exclusive of whaling, is not stated
ill the American returns, but it i)rol)aI)ly equals that
of the Provinces, which is uliout 1(JO,(K)0, worth, at a
low estimate, ,'!?4,000,000.

The population of these coiiiitrie.-* has not increased
with great rapidity, but the trade of the States with
the British I'o.s,sessions lias increased, under tlie opera-
tion of the Keciprocity Treaty, from 88,000,000 to 816,-
000,000 per annum, (c)

(a) Kennedy's Preliminary Ueport on the Census,
page 188.

Value of fish caught by United States fishermen,
(United States census :) —

Mackerel and cod fishery J Maine .SI ,060,755

including, it appears, J Massachusetts.. . 2,774,204
hake, lierring, iic ) Connecticut 281,189

$4,106,148
The statistics of the fishing industry of the United
States, as given in the census, are very incomplete.
The total .'alue of fish taken is given at $12,924,092,
which iiiclud"s 87,621,588 value of products of the
wlialo fishery. The onlv other important figures
relate to the mackerel, cou and herring fishery, given
above.

(6) The following figures show the extent of the
fishing industry of the Lower Provinces: —

Value of fish caught, (from the census tables of
the several Provinces, 1860):

Newfoundland— .seals excluded $4,440,000

Nova Scotia— cod, mackerel, and herring.. . 2,602,000
New Brunswick— cod, mackerel, lierring,

alewives and hake 388,235

Prince Edward Island — cod, herring and

mackerel 272,532

Lower Canada— {estimate) 700,000

$8,862,767
(f ) Population of the North Eastern Atlantic States
and Province.^, 1850 and 1860:

States— 1850.

Maine 581,813

Miussachusetts 986,450

Connecticut 363,099

New Hampshire 317,466

2,247,818

Provinces-
Newfoundland 122,638

Nova Scotia 276,117

New Brunswick 193,800

Prince Edward Island 71,496

1800.

620,962

1,221,464

451,520

325,579

2,625,515

124,288

830,857

262,047

80,867

664,051

788,049

Trade of the United States witli the Maritime Pro-
vinces ;—

1849

1860

1861

1862

1853

1854

1855

1856

1857

1868

1859

18()0

1861

1862

1803, U-stlmated).

Imp. from them.

,$1,358,992

. 1,736,651

. 1,620,330

. 2,272,602

. 2,206,021

. 2,954,420

. 3,822,224

. 3,832,462

. 4,224,948

. 5,518,834

. 4,989,708

. 4,417,478

. 4,(>16,843

. 5,000,000

Exp'ts to them.

$3,869,543
3,618,214
4,085,783
3,791,966
6,311,643
7,266,154
9,085,676
8,146,108
7,6;i7,587
6,622,473
9,213,882
8,623,214
8,383,755
8,236,811

11,382,312

From the letter of ilia Secretary to the Treasury,
January 18(54.

1 wo iiliall goe ai
eastern communi-
and po!<i<t'!«8ing a
a Krvat portion of
t^p spa fishcrips of
18 than 8i9,3Cl0,442,
OOOeach, and that
''). The tonnage
iiip, is not stated
i;ihly e<iiml!* tliat
u.im, wortli, at a

us not increased

llie States with

under tlie opera-

58,000,000 to $16,-

t on tlie Censuf,
States (ishcrnion,

• ... iPl.OSO.TW
lettf... 2,774,204
ut 281,189

«4,106,148
ry of the United
■ery incomplete.
Ml at $12,024,092,
I)r()duct.s of tlie
iportant tipiires
iig flsliery, given

R extent of tlio

inces : —

lensus tables of

. . . $4,440,000
ill?.-. 2,6(J2,000
rring,

388,235

g and

272,632
700,000

$8,362,707
!i Atlantic States

18C0.

626,952

1,221,464

451,520

325,579

2,625,515

124,288
330,857
262,047

80,867

>1 788,049

Maritime Vto-

Exp'ts to them.
If3,8fi9,543

3,618,214

4,085,783

8,791,956

6,311,643

7,266,164

9,086,678
3,146,108
7,6;37,587
6,622.473
9,213,832
8,623,214
8,383,755
8,236,611
11,382,812

the Treasury,

Until tlio passage of tlio IJeciprocily Acts of 1864,
the Americans were excluded, in terms of tlie Con-
Tention of 1818, from the rifrlit to li:*li within thiTO
milts of the sea coastof New liruiisuick. Nova .Scotia,
I'riiicu Kdward Island, and (iinadu. Neither could
they legally resort to all jiarts of the Newfoundland
shore. Since, however, mackerel can only be caught
within that limit, (ai where also the best kinds of other
lisli are often to be found, the lishernieii from the
States were frei|iieiitly led both clandestinely to evade
and openly to defy the terms of the Iiileriiatioiial
agreement. When detected and caught, their ves.-els
were; often conliscated; and, just bel'ore the negocia-
tion of the Treaty, the Ini])eriul (jovernment (.ent out
a tleet of armed vessels, {/<) while the Colonies them-
selves fitted out six cruisers, fully armed and manned,
to prevent further aggressions. There was an addi-
tional cause of irritation in the misunderstanding
which existed as to the jirecise nieaning of the <'on-
Tention — the iirovinciiil authorities contuniling that
the line from which the marine league was to be
measured, was, not the coast-line, but one stretching
from headland to headland. The Keciprocity Treaty
happily brought these disputes to an end. American
fishermen coining northward ceased to be and to be
regarded as thieves; und were no longer liable to bo
chased from one secluded port to another. They now
ply their honest calling in an honourable way. Fleets

(a) "Our fishermen cannot go through another
summer without involving themselves in serious dilli-
cultios with the British I'roviiices. . . Not that war
will ensue, unless the fishermen arc <]Uieted, but I
believe there is danger of bloodslied. Tlniv nru no
mackerel left on the shores of the United Slates, and
that fishery cannot be succe.s'sfuUy jnosecuted without
going within three miles of the shore, so that unless we
nave this privilege, to enjoy the shore fishery without
annoyance, the mackerel fishery will bo broken up,
and that important nursery for American .seanion will
be destroyed."— .Speech of lion. Amos Tuck, of New
liumpshirc, i!i ll'seofUep's, 1851.

" Accounts dated the 17th instant, from I'ort Hood,
" mention that all the United States craft fishing
" along the Nova Scotian coast ' are detained by the
" • steamer Devastation, for alleged informality in their
" ' papers, and any vessel attempting to leave will be
" ' fired into.' "— Lxtract from tiuebec Mevcunj, Sept.
1852.

(h) " A circular letter has been sent to the governors
of the several colonies, announcing that Her .Majesty's
Government has resolved to send a small force of
armed vessels and steamers to North America to pro-
tect the fisheries against foreign agj're.ssion. The
Colonial Ciovernments have fitted out si.v cruisers,
fully manned anc". armed, which have sailed for the
best fishing grounds, and there is imminent danger of
a collision. The colonial cruizers threaten to make
prize of every vessel "fishing, or preparing to fish,"
within certain limits, which the colonial authorities
contend are within three marine miles beyond a line
drawn from headland to headhnid, and not three
miles from the shores of the coast, which our citizens
contend is the true reading of the convention." — An-
drew's Keport, page 30.

One of the most serious consequences of this ha-
bitual eva.sion of the terin< of the Convention of 1818
was, that the American fishing vessels were obliged
to place themselves in diflicuit ond dangerous posi-
tions to avoid detection. In 1851, over 100 ves.sels
were driven asliorc on I'rinco Kdward Island in a
gale, and over 300 lives lost. The fleet braved the
storm rather than run for port, and thus confess their
inltactiuu of British rights.

"The return of mackerel tliis year will fall short
" one-half of the ([uantity taken to this date last year.
" This is attributeil mainly to the vessels being
" obliged to keep further from the shore than here-
" tofore. Another cause is their being prohibited from
" fishing in the Hay of Chaleurs, where full fares could
" have been obtained."— From the Gloucester 2We-
graph, Sept., 1862.

<.f/

of fishing craft, owned in ^faiiic and Massachu.scttH,
now visit, unhindered, every Now Brunswick island,
every Nova.'^cotian bay ; while, preceding the advance
of spring, they jxnir in almost countless numbers
through '_■ gut of Canso, the side gate to the (iulf of
.St. Lawrence, and taki' homo full cargois from the
Bay of Chaleurs and Canadian waters. A return laid
before the Canadian ruiliainent last year gives some
important inl'orniation on this score. It shows that
the value id' fish taken in our waters by American
llshermen, which was but .f2S0,fjo0 per annum pre-
viously to XKy'i, rose at once to .'«t).','2.400 in that year,
and reached no less a figure than $1,205, 70<J in 1.S50.
:t then gradually declined to S41(i,f)f)0 in 18W. When
the rebellion commenced, the war navy of the .States
needed and obtained the .services of many fishing ves-
sels and their crews, und the value of the fish taken fell
to s'i'W.'MM) annually ; but there is little doubt that, now
theircountry no longer needs their services, tlie fisher-
men, if allowed, will again come north in the .same
numbers as beioie. {ii) It was at one time feared that
the inllu.x. of American fishing vessels would si'Hously
injure tlie fislieries, and dejirive the fishermen of the
Provinces of tlu.ir means of sujiport. This api>relien-
sion has not been realized to any great extent; and
any injury that may have rosulteil in this respect has
been more than counterbalanced by the increased
energy wliich the comiietition of the Americans has
taught their cousins to employ (b). As a proof it may
bo mentioned that the value of the fish taken by Nova
Scotians and Now Brunswickers, which was j?2,llO,750
in 1S50, reached no less a figure tlian iS2,9u0,2;l5 in
IStjO ((•).

Tlie fisheries of the lakes cannot coinpan. in value
with those of the ocean, although they are of the
annual value of about !i?7.')0,0<X). (</) The iSociprocity
Treaty does not, in terms, apply to these inland
waters, but, owing in great part to its existence,
Americans have not been molested while fishing in
Canadian waters, where the best fisheries are. It may,
therefore, be considered as one of the incidental
advantages of the Treaty to the Americans that they

{(I) Statement of the No. of American vessels engaged
in the fisheries of the Gulf of St. Lawrence, in Cana-
dian waters. &c., &c. :—

^"- "* InnnntTe ^''■'' " *" ValuO of

Ves.sels. tonnage. ^^^^^^^ Fish taken.

18.")B 2()0 18,200 3,4(K) S 204,(K)i)

1853 2-20 15.40(J 3,i)00 270,<K)0

1854 231 lti.3Si) 3,'220 280,8(K)

1855 3.34 23,.380 3,580 (32,400

185t) 476 3ii,:ja) (i.iiOO 1,26;',,700

1857 4.^2 31,iHii 0.240 l,or>},(H)0

18.58 4.'>;j 31.710 6,170 6;J4,50<)

law 3K0 ati.ooo 6,it;o 628,i)oo

1800 yro 25,01 K) 4,itS0 459,(KX)

1861 3.',6 24,0-20 4,840 410,400

1802 274 lit,^) 3.740 267,000

18tJ:J '235 10,450 3,2;i0 249,750

Ueturn compiled by Sir. Whitcher. Fisheries Branch
Crown Lauds Department, 27tli June, 1804.

(h) Vide speech of Hon. Charles Fisher, of New
Brunswick, delivered at Toronto, 1864.

(c) These figures relate to the cod, herring and
mackerel lisheries. The total value of all kinds offish
taken in N. Brunswick was 1f518,,')31 in 1860 as ..gainst
S!3'31,328 in 1850; and the census compilers state in
1861 that " a considerable proportion of the catch of
the past year has not been reported."

(d) The white fish taken in the lakes, 1860, by the
Americans, was given as $,587,479, of which $250,467
was the result ol the industry of Michigan.— Census,
p. 188.

The value of the fisheries to Canadians, vide census,
was about $150,000. This is probably an under-state-
meut, as it does uot tal)y with the export tables.

PRIZE ESSAY.

■\

havo been allowed frcoly tu (ako on our lake shores
tluli worth • Sout ?250,000, while tln> Cunttdianx havo
had tlic III ,■ >it ' t lh< market ol' llio Ktates for their
catch, uf which about 976,00U worth had been annually
exported acrosM the border.

It would not be difficult to occupy, in trcatin;; of
this branch of the Hubject, the few columns allowed
for the discussion ol the whole. Suffice it, however,
to remark fUrther, that a good supply of llsh— a
necessity of life to the members of at least one numer-
ous creed— is of no little conseiiuence to the health
and comfort of all classes. Without reference then to
the exjiort trade in ffsh, it follows that every measure
which enlarges the Held of the llsherman's calling
must be advantageous to the whole community.
Moreover, (without alluding to the recii)rocal trade
In ffsh and flour between the Stat( s and the Maritime
Provinces, of which hereafter,) it is evident that, since
the ffshcrman is a consumer, not n producer of vege-
table food, every measure which encourages the rtsli-
inft induhtry of the Kast benefits the funning commun-
ity of the We; t, as well as the forwaidiiig and
commercial interests of the middle States.

Wc need not, however, look to such indirect effects
to sec the enormous advantages of which the Treaty
has been productive to the agricultural interests of the
States and of Canada. Under the clause which per-
mits the free importation into either country of most
of the raw products of the other, the trade in these
articles betw -n Canada and the States, which was
only some •¥10,000,000 in the best years before the
Treaty, has expanded to an average of 823,000,000 per
annum,

I'cople do not buy and sell unless for mutual profit,
and when wo look at this enormous increase of trade,
wc must infer that the gains of those concerned in it
have been increased in proportion. It is indeed diffi-
cult to over-estimate the influence of this enormous
volume of commerce in building up the fortunes of
commission merchants, railway shareholders, steam-
boat and ship owners, and their dependents, as well
as of the farmers themselves.(a) Wo gain an insight into

(a) Free imports into United States from Canada,
under Reciprocity Treaty. l'"rom Secretary Chase's
returns :—

Half year to June, 1855 9 5,950,500

Year 1855-50 15,927,185

" 1860-57 16.450,788

" 1857-58 10,475,133

" 1858-69 11,444,330

" 1859-00 10,1210,128

" 1800-01 10,300,377

" 1801-62 14,293,922

" 1802-03 12,807,3li4

Estlm'e 1803-ti4 13,000,000

Do. iof'64 0,500,000

Total trade under the Reciprocity
Treaty for ten years »139,.3C5,727

Free Imports into Canada, nnder Reciprocity Treaty.
From Canadian T. St N. Tables:—

Year 1855 » 7,725,672

" 1856 8,082,820

" 1857 8,642,044

" 1858 5,5(54,015

" 1869 7,106,116

" 1860 7,009,098

" 1861 9,980,937

" 1862 14,430,()26

" 1863 12,339,307

" 1864, (I'istimate) 12,000,000

* 92,941,195
8139,365,727

Total trade both ways $232,300,922

Excess of imports into the States $40,124,632

the reciprocity of this beneflcial influence by observ-
ing the course in which it is conducted with respect
to the leading articles of e.xchangc.

In 18ti3, wo importeil from the .States 4.210,!KI0 bush,
of wheat, and exported thither 1,100,000. The imports
were chiefly at Kingston (3,175,055 bush.), and at
Sarnia (78,795 busli.) The exports were princi|)ally
across the Lakes. We al.-o imported 225, 4.39 bbls. of
flour anil exported 490,<X)l. Converting these into
their e(|Uivalents in bushels of wheat, we tind that our
imports of this cereal from the .States were 5,3;J8,095,
and exports thither, 3,8.jO,0<W. Now we did not
im|)ort the balance, 1,488,095 bush., because we needed
it for food, for we had a line surplus of our own, and
exported to Kurope and the Colonics 1,494, W4 bush,
of Wheat and 2,783,1"j0 bbls. of Fiour; together,
8,9t;9,30-J bush, of Wheat. IJut it helped to feed our
internal commerce, nnule up \'j per vent . of our foreign
exi)ort of this article, and increas/^d the business of
our millers— since the figures ':how that what wo im-
ported as wheat, we exported chiefly as flour. Re-
sides, sectional bcnelits resulted : for the price of
wheat was rendered uniform iu ail accessible parts of
the country. On the other hand, the price of flour
was somewhat reduced to the people of the Xorth-
eastern States, who received a portion of their sup-
plies by our cheap freight routes, while the American
merchants and forwarders enjoyed the beneflt of the
trade with the Maritime I'rovinces, which consume
annually about the same quantity of broadstufls which
we export to the States. In 1863, the Lower rrovinces
imported from the United States flour and wheat to
the extent of 3,615,232 bush. ; our exports to the
States being, as above given, 3,850,000. {l>)

From Secretary Chase's report, pages 10-18, it appears
that the total trade with the Maritime I'rovinces,
under the Treaty, for the flrst ten years of its con-
tinuance, was :—

Imports into

U. S.
« 35,500,000
Add the Trade with
Canada, as above. . 139,305,727

Imp^rt8 into
I'rovinces.

840,000,000

92,941,195

Total trade under
this Treaty $174,805,727 $132,941,196

The U. S. Tariff" on the principal articles mentioned
in the Schedule attached to the Reciprocity Treatv,
was on— Animals, 20 per cent.; Rutter, 20; I'ork, 20;
Fish, 20: Kggs, 20; I'elts, 20; Wheat, 20; Flour, 20;
Rarley, 20; Oata, 20; Rye and Corn, 20; Vegetables,
20; Fruits, 20; Lumber, Timber and Wood, 20; Wool,
30; Clover and Grain Seeds, 30; Coal, 30.

The present United States Tariff" is considerably
higher, although few of the above articles are speci-
fled in the Tarift". It only mentions— Coal, $l.2o per
ton; Seeds, Garden, 30 per cent; Sheep skins. 20;
Tobacco, unmanufactured, 35 cents per lb.; Wool,
unmanufactured, if less value than 12 cents per lb., 3
cents, 24 cents per lb., cents.

(6) Compare Hon. Mr. Ilowland's nmort to the
Executive Council on Intercolonial 'trade, 1801.
Also, speech of Hon. T. Ryan. (I'arlliiiucutary Re-
ports, 1865 )

The figures for 1803, arc the following :

Imports of wheat and flour from the United State**
into —

brls. bush.

Newfoundland, flour 216,595 = 1,082,975

New Urunswick, wheat 16,157

Flour 217,420 = 1,087,100

Nova Scotia, flour 286,000 — 1,430,000

Total, bushels 3,615,232

Exports of wheat and flour from Canada to United
States-
Wheat Bush. 1,400,000

Flour, brls 490,000 — " 2,450,000

Total, bushels, 3,860,000

Looking n
we exportei
while we ini
exports to
■112,097,688; t
other hand,
!*975,014, am
see that the
enabling tin
to u-ie their
f,ir which tl
Canadians
corn. 'l'he(
tiige of chei
had been ili
corn. >'
wort'i >2,3;i
Imt ue impel
only to thee
who grows
American,
The exchan
henefieial to
recent war,
and cattle n
rican peoph
farmers wel
their usual >
overlooked.
States abou
1863, the an
of theutnui
possesses vi
fleece of tlu
their manul
'fuming 1
mine, we fii
tages result
articles free
sold 5,000,0(
ciprocity Ti
thracite, ar
gave in the
15ut the biti
so far Wes

(a) Imports

1865

1850

18.'i7

18,58

1859

Animals fo

1855

1856

1857

1858

1859

Horses—

1865. . . .

1856. . . .

1867. . . .

1858. . . .

1859. . . .

Our exy
Mais are (

•' ih) Expoi

1860. . . .

1861....

1852. . .

1853...

1854...

1855...

1850...

•' (.)urt
" can wo
" worth
" ricau v

PRIZT ESSAY.

iiiflucnco by obson-
nilucfi'd nitli rcsptct

SliitL>.i4.210,!J(iO bu.-h.
1(H),<X)0. Thf iinjiurtH
,<)'jo buNh.), ami at
rt.i wcro priiicij)ally
if<-<l 2Z',,43'J bbls. of
ivii-tiiijr tliwo into
tut, woiiiid flint our
;iafcs wtTO 5,aj8,095,
Now wo did not
, bfcauKL' we iicodird
liiK of our own, and
)iiieM 1,494,;]«-1 bush.
)f Fiour; to^'fthcr,
Ii('li)id to feed our
r cent, of our foreign
i-"'d the business of
IV tliat wliat we ini-
liielly as Hour. Uc-
for the price of
II accesiiible parts of
th(! price of flour
?')l)le of tlio Xorth-
ortiou of their sup-
while tlio American
d the benefit of tlie
;es, wliich consume
of breadstullswhicli
he Lower I'rovinces
flour and wheat to
[)ur e.vports to the
,000. (b)

ces 16-18, it appears
laritime Provinces,
m years of its con-

Impftrts into
I'rovinces.

840,000,000

92,941,195

«132,941,195
1 articles mentioned
Ueciprocity Treaty,
utter, 20; I'ork,20;
loat, 20; Flour, 20;
rn, 20; Vegetables,
d Wood, 20; Wool,
oal, 30.

iff is considerably
articles are speci-
ns— Coal, $1.2o per
; Sheep skins. 20;
its per lb.; Wool,
1 12 cunts per lb., 3

id's report to the
nial Irade, 1801.
L'aHiiiuicutary Re-
iving:
the United Statox

'• bush.

|95 = 1,082,975
•• 15,157

20 = 1,087,100

00 = 1,430,000

3,615,232

Canada to United

Bush. 1,400,000
" 2,450,000

Looking now at the coarser grain: , we \-)orcrlve that
wo exported *2,2t)0,438 worth of Barley and Kyn,
while we imported r>nly S75,793 worth. Similarly the
exports to the United States of oats, amounted to
.?2,0!t7,688 ; the imports to but !gl7,637. Hut on the
other hand, we imiKirted Indian Corn to the value of
•*(>75,014, an<l exported only ?^;i!t,S07 worth. Thus we
see that the Treaty has had the lH>netieial effect of
enabling the farmers of Canada and the United .States
to (lie their lands in raising just that kind of produce
for which their soil and <'llinate are best a(la])ted ; the
Canadians growing oats un<l barley, the AnuTicans
corn. The consumer has consei|iiently had the advan-
tage of cheaper prices than if the farmers of Illinois
hud been driven to raise oats, anil those of Canada
corn, ."^o with animals. We exported live animals
wortli ^2,KI0,7!'0, imiiorting to the extiMif of i!«520,83.'.:
bnt we iini)i)rted meats worth ■*1,2;5S,!'2.'), andexported
only totheextentof*25<;,527.('f) 'f he Canadian fanner,
who grows oats, bre(>ds horses and cattle; and the
American, who grows corn, converts it info pork.
The exchange, pcrmitfed by the Treaty, and always
beneficial to both, was never more so than during the
recent war, when the command of the Canadian horse
and cattle market was of the utmost value to the Ame-
rican jieojile, and the hard times in Canada nuide our
farmers welcome the American buyers with more than
their usual cordiality. Nor nnist the article wool be
overlooked. ISefore the Treaty, we exiiorted to the
States about •'i?100,0<K) worth of wool jier annum; in
18<)3, the amount had risen to .«'J74,0()0. The money is
of the utmost value to our farmers, the wool, wliich
possesses valuable qualities not to bo found in the
fleece of the American sheep, is of the utmost value to
their manufacturers." (6)

Turning from the produce of the farm to that of the
mine, we find other illustrations of the mutual advan-
tages resulting from the Treaty. Coal is one of the
articles free from import duty, rennsylvania, which
sold 5,000,000 ton.s per annum at the ejioch rtf the Ke-
ciprocity Treaty, yielded in 1860 11,869,574 tons of an-
thracite, and 2,060,000 tons of bituminous coal. Ohio
gave in the latter year, 1,130,000 tons, all bituminous,
liut the bituminous coal of I'ennsylvania and (Jliio is
so far West, that Boston and other North Kastern

4 9S

(a) Imports of meats from the United Slates—

5W,9i)l
.500,991
.040,2ri9
,238,923

3,860,000

1855 81,019,714 1860.

18.56 1,417,771 1861

1857 903,264 1862

1858 544,366 ' 1863

1859 601,454 |

Exports of animals to U. States
Animals for food—

1856 9862,590 I 1860

1856 490,853 1861

1857 692,833 1862

1858 787,582 1863

1859 1,235,546

Horses —

1865 8491,493 1860

1856 323,!«4 1861

1857 467,321 1862

1858 417,154 1863 1

1869 778,657

Our exports of moats, and our imyiorts of live aui-
Mals are comparatively unimportan.

(h) Kxports of wool from Canada to Che U. States —

1850 566,860 ; 1867 !?27u,00O

1861 '79,136 1868 312.798

1852 74,000 : 1859 400,232

1863 165,000 11860 401,894

1854 30,333 11861 424,9.30

1855 275,375 1862 724.815

1856 313,0(!1 ! 1863 974,153

■' Our entire crop would scarcely suiipiv fin- Anieri-
" can worsted manufacturers. Our ' combing wool ' is
" worth twenty cents p(>r lb. more than the tine Anie-
" rican wools."— Newspaper paragraph, 1865.

,090,,3.34
729,679
597,492
,925,719

9,-)7.411
(iii7,315
664,083
,4(35,080

cities have to depend upon Nova Scotia for their sup-
plies, (a) That colony yielded only 100,000 tons per an.,
until of late, owing to the mining monopoly held by a
powerful corporation. Now, liowevrT, this monopoly
ha.s li«'en destroyed, and the report of the Nova Scotiu
Commissioner of minii* shews that 429,.']51 tons were
brought to surface in 184k!, and 40<i,G!K) tons in thi> first
lliree <iuarters of lS(Vi. Mll^t of Ibis was exported to
the States. Ohio is, Iiowcmt, within easy reach <if
Upjier Canada, and we have imjiorti'd an increasing
<iuantity of cor", thence; in lHi*5, 103,547 tons, worth
*548,S4li. (/)) Now, OS wood becomes annually scarcer,
c<ial ir becoming more and more indis|)ensable, and
since, from the |)osifion of the coal beils, the permission
to imi)orf it reciprocally freeoldiity materially reduces
its cost to the consumer in New Kngland on the one
band, and in I'pi'or Canada on the other; the with-
drawal of that |.erniis-ion would be not only injurious
to tin commercial and maniifiu'tiiring interests of both,
but one of the most cruel injuries to the whole popula-
tion of the two countries which could jiossibly be in-
flicted by the recklessness of their 'ulers.

■file trade in other minerals is only just beginning
to be developed, and as yet consists ihiefly in the ores
of cop))er and iron, many tons of which are ex))orted
to the United States, (c) where our cojjper ores are
much sought after, since they act as a flux in smelting
tlio.se obtained fn>m American mines.

The I'lnibcr trade is of e(iual importance to Canada
with the trade in grain; but, contrary to the usual im-
pression, t does not appt ^r to have been so beneficial-
ly effected by the UecijiroLi'v Treaty, (ireat Britain
remains the consumer of by fa. the greater portion of
our annual export, the States taking little from us
save I'lank and Boards, wbicli they bought in largo
quantities before th Treaty, and will continue to buy

(a) Tons shipiied to U. States from Nova Scotia—

TOXP. TIIXSJ.

1S49 92,000 11851 80,000

1800 98,000 I

Mines in o]K'ration —
1850 4 I 1864 20

In 18ii3, exports of coal to U. States— nearly—

Tons .3(10,000 | Valued at .«679,4.30

(')) Imports of Coal from flic U. .S. info Canada:—
Value of coal imjiorted in 1851 (from U. S.), ."JSS.CSa.

-Andrew's IJeport, p 4.31.

TONS. VAI.l-K.

18,55 80,000 .«326,512

1866 84,0()0 386,.3()1

18.57 94,816 400,'297

1858 70,097 242,760

1869 78,567 237,776

1860 79,886 364,(179

1«61 171,5(51 4.58,6()5 •

1862 105,905 437,391

18(!3 103,647 548,846

Compare speech of Mr. Towusend, of (»liio. Use. of
Reps., 1863: — "The coal imnorted from Nova Scotia
and New Rrunswick is highly bituminous. • » *
Some factories in the East are now lying idle because
they cannot, without paying a high duty, obtain a cer-
tain amount of I'icfou coal, which they find it beiiefl-
cial to use in connection with that from rennsylvania.
* * • * Now the question is: shall we, bv legisla-
tion preventing competition, conqiel the millions who
want coal, and must have if, to i)ay an extra and ex-
orbitant price in . rder that a few brokers, owning
coal stock, may re- :ize enormous jjrolils?"

TONS. v.\LrE.

1855-56 26.372 .*19.213

1866-57 3,231 42.824

1857-58 6,28i) 236,858

1858-59 2,7:« 2'26,086

1859-60 6.681 .360,714

lS(i(>-61 12,267 .'J92.314

1S61-62 4(l,7!)9 .'J7.3,(>58

1862-63 4,916 266,22;*

(This statement of tons is fcvidcutly incorrect. The
values are probably reliable).

'tl

li!

'IRIZE ESSAY.

if it should not bo ronowcd. Tho amount of our ox-
port of lumbor to tlio States has indeed increased con-
siderably, but not much faster tlian tlie trade with
England (a), or than the increa.so of the population of
tliese regions and the denudation of tho American
forests would lead us to expect. The truth is, tliat al-
though tlio Lake Cities may for a time be supplied by
Michigan lumber, tl:e Atlantic States must liave ours,
for which they must pay us what it costt- uc to
procure it, and a reasonable profit besides. If
they put a duty on it they but enhance tho price
of liouso building, and consequently of house rent in
every one of the Kastoru cities, of which public injury
a few lumber manufacturers in the well-nigh exhaus-
ted limits of Maine will alone reap the temporary
benefit, (h) The restricted intorprefation given by
the American Goveniment to the clause aflTecting lum-
ber has no doubt cliocltcd tho increase of trade. Tlie
words ure that lumber is to bo rociprocally admitted
free, if "unnuinufactured in whole or in part." Under
this phrase tlic United States have considered them-
selves entitled to charge duty on boards, if so much as
grooved and tongued; on shingles, if oO much as
dressed. It will behove tliose interested iu the lumber
trade, on both sides of tho lines, to see that, in the
event of the renewal of the Treaty, a more liberal policy
is adopted in fliis particular.

t)ur limits, now fast being filled, warn us to pass at
once to the consideration of tlic last important article
ofthe Treaty ,-tliat which .-iecuros to the United Stales
the right of using our canals, and enables Canadian
vessels to navigate Lake Michigan. This, the a tide
wliich i)C!liiips most deeply concerns the Western
Slates, ijiiiears to be tli:\t which ha> led to all t)ie agi-
tation luistile to tlie Treaty. Freedom to use our canals,
especially on the liberal terms fixed by the Canadi;cn
Govennnent, has naturuily interfered witli the mouo-
poly of transport enjoyed by those of New York State,
wllo^:e po'icy has always byen to raise as much revenue
from lulls as the Western producers could be made to
pay. lUilIUlo and New York conseijnently fir.st took
grunnd against the Treaty, and the Committee on Com-
merce (if tho New York Legislature, in re]iorting
against it, plainly shewed their animus in tho com-
plaint that we liavo " built canals and railroads in

{a) Exports of Lumber from Canada.

Til nil roimtri'ii

r„r,rri,t Uriiiiin.

To til.. V. S.

ISol..

!if5,085.fi28

.... !g3,873,0S0 . .

. . Sl,147,2()8

1852.

5.548,132

.... 3,918,('88 . .

.. 1,590,310

1.85'1. .

8,(!i;(), 11)11

.... ti,l»i2.")ii8 ..

.. 2,-,S3,184

18f- . .

9,275,781)

.... 7,24l),9(;S . .

. . 1,975,030

185^'...

. . 7 127 1114

.... 4,370,(]ii8 . .
.... 5,935,892 ..

. 2,ii94,23()
. . 2,897.548

m-.n. .

81894,948

1857...

li',;:",i)o<5

.... 7,212,132 ..

. . 3,121„550

1853..

. . . ^' "■)'t,755

.... 5,10ii,iJ9i> ..

. . 3.2(l7,9ii4

18;-.9. . .

.- . :i,u;JH,»'91

.... 5,204,218 ..

. . 3,.301,819

18(i0...

. .J'l.UOl.liT

.... ').130,77i! ..

.. 4„H4H,»)11

1861..

. .. , 'isiaH

.... f|..«l)H.7H9 .,

. . 2.005.870

lS<i3. . .

. . , 1'„'I51.147

.... 4,wri,.-,;!;5 . .

. 3,252,589

18(tf»

. . 12,204,178

.... 7,713,31ij ..

. . 4,165,290

(b) The value of I'lank and Hoards exported to the
U. S, since 1851 is given below, together with the price
per yi. feet; and tho sliglit ineieiise in this price, nut
gi"aier than ihat in the price of pine-lnrnlier shipped
to Kiig'and, afib'ds. it is believed, r. remarkable illu.s-
tration that tho consumer, nut the prcMlucer, of impor-
ted articles chiefly sufTers by (/. e, j'Uys) the duty 'hat
may be imposed upon it.

r.rports of Planks and Hoards to the U. S.
Value. I'rick. Vam'k. I'nicE.

Si7.ooperM:1858i«2.S9ii.3l9 7.75 p.M.

"" ■■ '18i-,9 2.tl7(;.4t-

1800

1851 !«774,lli
1S.V2 1,141,1192
1853 l,.MiO,712
1H54 1,579,821
1855 2,313,3.59
185tt 2,483,1)87
1857 2,667,206

9.00

9.75

10.50

10,75

11,60

ISO I

1S02

.'i.o27,7.'iO
l,507,54(i
2,279.,507

1803 2,903,420

8.00
9.75
9.50
9.75
10,00

Canada to compete with American interests," and
"engaged in fruitless but persistent efforts to divert
tho trade of the Western States from the natural chan-
nels it had already formed," Let the Legislature of
Now York bo answered by that of the State of Illinois,
Tho Commissioners from that State, appointed under
resolution ofthe 14th Feb., 1803, to confier on tho subject
of transportation with the Canadian authorities, said
in their memorial : " For several years past, a lament-
able waste of crops already harvested has occurred ir.
conscijuencfi of the inability of the railways and canaLj
leading to tho sea-board to take off tho excess. Tho
North-west seems already to have arrived at a point of
production beyond any possible capacity for transpor-
tation which can bo provided, except by tho groat
natural outlets. It has for two successivo years
crowded tho canals and railways with more than one
liundred millions of bushels of grain, besides immense
quantities of other provisions and vast numbers of
cattle and hogs. This increasing volume of business
cannot be maintained without recourse to the natural
outlet of the Lakes. * * * The St. Lawrence
furnishes for tho country bordering upon tho Lakes a
natural outlet to the sea." (a) Our canal system, then,
though it may compete with that of New York, does
not appear to tho representatives of Illiuoia to bo
" hostile to American interests." We have not yet
succeeded in afToi-fling so much relief as wo could wish
to tho bursting granaries of tho West. Owing to a
combination of causes we only transported in 1863,
13,300,000 bushels of wheat through tho Welland canal,
of wliich but 3,303,000 jiassed on down the St. Law-
rence; but even this must have been of great assistance
to Wc'stern producers and forwarders. Wo hope,
however, soon to do better than this. Wo have now
but one grain portage railway connecting Lake Erie
with Lake Ontario. We hope soon to have three. Wo
contemplate the enlargement of our existing canals,
and the construction of another to connect the Geor-
gian 15ay more directly with the St. Lawrence, and
shall thus endeavour to realize the ardeut hopes ofthe
Great West, " whoso future prosperity depends," say
the Illinois Commissioners, "upon cheap transporta-
tion to foreign markets." Here, however, it is per-
haps allowable to state, that we have not boon permit-
ted to realize tlio advantages contemplated by that
clause of the Tioaty under which the Government of
the United States engaged "to urge upon the State
Governments to secure to the subjects of Her Britannic
Majoffy the use ofthe several State canals on terms ot
erpiaiity with the inhabitants of tho United States."
Although 808.289 tons of American shipping passed
through I ho Welland canal in 1863, against 521,808 Ca-
nadian, (b) the figures for tho othorcanals also shewing

(a)\'\\o value to tlie Western States of oacli additional
facility for tniu>portution cuniiot bo over-rated. Each
cent per bushel taken off tho cost of carrying tlieir
produce to market increases tho value of their annual
(•ro]) by ii50,5(K),O(Ki; ihey having laised in 1802 660,000,-
<K}() bushels of wliuat and coin.

(b)No.qfvessets emjayed inour can-ying trade, that is
the A'o. that passed up and dow)i our Canals in 1863.

Atii'n. C'rtd'n.

Welland 3474 3425

St. Lawrence 258 10987

Chambly 808 2972

1$. Hay 92 1655

Am'n. CftH'n.

St. Ann*.... 100 4941
Ott. & Uldeau 66 6833

Tonnage of the alore.

\m'\\, <'()irti

Wcllinnl. . . .SIIS289 521808 ,St, Anns
St. I,nwr'c". ISMli 1(118103 Ott. Jc Kid'u
Chambly 52578 220110
U. Way. , . . 13398 227047

4798 30813

Am'n. rnd'n.
O79o 311475
4587 371674

903706 2670177

:.|i

can interests," and
nt ofTorts to divert
>m the natural Chan-
: the Lcgislatnro of
the State of Illinois.
0, appointed under
ionfcr on the subject
an authorities, said
ears past, a lament-
tod has occurred in
railways and canals
ir tho excess. Tho
irrivod at a point of
)acity for transpor-
iccpt by tho groat
> successive years
ith more than ono
n, besides immense
I vast numbers of
i'olumo of business
urso to the natural

The St. Lawrence
; upon the Lakes a
ianal system, then,
f New York, does

of Illinois to bo
Wo have not yet
fas wo could wish
''est. Owing to a
insported in 1863,
ho Welland canal,
lown the St. Law-
of great assistance
dcrs. AVe hope,
is. We have now
lecting Lake Erie
have three. Wo
r existing canals,
onuect tho Geor-
:. Lawrence, and
■dent hopes of the
ty depends," say
;Iieap transporta-
ownver, it is per-

not been permit-
mplatcd by that
e Government of
c upon the State

of llorlJritannlc
analsun terms of

United States."

shipping passed
;ainst 521,808 Ca-
nals also shewing

feac!; additional
)ver-rated. Kaoh
)f carrying their
■^ of tlieir annual
din 1802 650,000,-

ing trade, that ia
Canals in 1863.

Am'n. Cdrt'n.

• ... 100 4941
Icau 66

4798 30813

Am'n. rii<rri.
■• iu'J'n ;J11475
'u 4587 a71574

PRIZE ESSAY,

^9^-

a fair proportion of American craft to bo engaged in
■our trade, wc have not been allowed the slightest par-
ticipation in the business done on the American canals.
Not the least of the benefits tho Lake Shore Cities
have derived from the Treaty is, that they liave been
able to enter into a direct trade with Eiiro|ii'an coun-
tries, where, indeed, they have found a ready market,
not only for their cargoes but fven for their vessels.
The Now York Legislature assert in their report, that
" hope seldom told a more flattering tale than on this
subject." l$ut if tho expectations of the Americans
have not been realized, they must have been unreason-
able. It was not to be expected that this direct trade
should at once assume colossal proportions; wellnd,
howcTcr, that, in the years before the war, tho en-
trances and clearances from and for Euroiie amounted
to over 5,0*H1 tons per annum. During the war, many
vessels went from the Lakes to the Atlantic to aid in
the blockade of the Southern ports, and for other pur-
poses; and at least three regular lines are now estab-
lished to carry on direct commerce between the Lake
cities and various European countries. This trade is
at least of equal value to the Americans with the right
given under tlie Treaty to British subjects to navigate
Lake Michigan, and one can hardly imagine how
Cleveland, Detroit, Toledo, Milwaukee, nnd Chicago
can reconcile themselves to the idea of being degraded
to their old position of inland cities, to whose craft
the Atlantic must be a closed and unknown sea.

This list of the benetits tho Treaty has conferred up-
on the parties to it, is necessarily but i)artial; in a few
short columns one can only enumerate tho most

Entrances and clearmices at Lake Ports of the U. S.,
from and to Foreit/n Countries other than Canada,
throiiijh the Ht. Lawrence.

Entkkaxcks. No. Tons.

1857-58 3 .... '*a7

1858-59 7 .... 2401

1859-60 10 ... aJ75

1860-61 8 .... 28,36

1861-62 3 .... 1168

1862-63 1 .... 394

Clearances. No. Tons.

1856-57 1 .... .379

1857-58 13 .... 4:io4

1858-59 19 .... 6737

1859-60 5 .... 1436

1860-61 5 .... 1791

1861-t?2

1862-6.3 1 .... 394

—From Secretary Chase's Itcport, ])agc 35.

salient. Surely, however, cnougli has been said to
prove that a strenuous etfort should be made by the
enlightened commercial men on both sides of the
frontier to continue lhe.<e advantages, which are so
liglitly being risked by tho American Government.—
Doubtless there are Americans who think that the
balance of profit, undi-r the Treatv, has been with Ca-
nada; and they can be met by i .illy well-informed
Canadians who believe that bala..t.e to have been with
the I'nited States. Hut the question should not bo
ajjproached in that narrow-minded way. We should
not enciuire too closely and too jealously which party
has gained the most; but, seeing the e.xclianges to be
mutually profitable, we should devi.-o means to allow
of their continuance. Nay more, it would seem to be
the duty of those charged to watch over the interests
of commerce to see how still greater freedom of trade
can be secured. Let thorn decide what other orticles
can be placed on the free list of a new Keciprocity
Treaty; and, throwing a.side the exjjloded fallacy
that it is possible for a Government, by imposing vex-
atious duties on all articles of import, to benefit all
classes of its subjects, (at) show that tliey are imbued
with, and know how to support, t lie principles of a
more enlightened political economy. (Ii)

(a) The demand for other than the " incidental pro-
tection," which may be necessary to raise revenue and
satisfy the public creditor, implies conscious weakness
— a feeling of which, with our climate, our soil, our
geographical position, our wonderful resources, and
the acknowledged energy of our constantly increas-
ing population, we who dwell on this portion of tho
Western llemisi)here ought to be ashamed.

(/)) Compare Mr. Gait's pamphlet on the Treaty, p.
23: " Much greater scojw could bo given to the Treaty,
without compromising on the one hand tho Kevenuo
interests of the United States, or on the other tho just
clainis to an ecjuality in the Canadian market, which
belongs both of right and duty to Great Kritain. Tho
abolition of the Coasting Laws of both countries on
their inland waters, the iree purchase and sale of ves-
sels, and the removal of discrnnination on the score of
nationality, th(> extension of the privilege in both
countries of buying foreign goods in bond, or by re-
turn of drawback, the addition to the tree list of all
wooden wares, agricultural implements, machinery,
books, and many other articles peculiarly of American
manufacture, and tlieir assimilation of tho I'atent
Laws — all these, and many other topics, naturally
offer themselves for consideration."

To this sni'cinet enumeration we can only add metals
in |)igs, and crude ]ietroIeuin; but the Hoards of Traiie
of doth countries may be able to suggest other addi-
tions.

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