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32X

FIRST PRIZE ESSAY.

THE

RECIPROCITY TREATY:

ITS ADVANTAGES
TO THE UNITED STATES AND TO CANADA.

By ARTHUR HARVEY, Esq.,

FELLOW OP THE STATISTICAL SOCIETY OF LONDON, ENGLAND | STATISTICAL
CLERK, FINANCE DEPARTMENT, QUEBEC.

« ♦i.^''.*:?^^*^::;^-*,

^^'^^..

QUEBEC :
PRINTED BY HUNTER, ROSE & CO., ST. URSULEJ STREET.

18G5.

Montreal, Gth July, 1865.

GENTLEMEN,-We have examined the Essays---twelve in num-
boi-placcdin'our hands, as having been called forth by your
ottor of prizes fc" the two best Essays on '' Reciprocity-its
advantage's to the United States and Canada; ' -- ^^^^-^^d he
the first prize to the Author of the Essay marked Kb.b and the
second prize to the Author of the Essay bearing the motto, Let
Commerce flourish." . .

Several other Essays possess considerable merit, and are, lu our

opinion, worthy ot publication.

We are, vour very obedient servants,

L. H. IIOLTON,

kobert esdaile,
Peter Redpath.

Messrs. W. B. Cordier & Co.,

Proprietors Trade Rev lac.

Tn reference to the above we beg to state that the writer of
the Essay marked F.S.S. (first prize) is Arthur Harvey, Esq.,

^^'^''- W. B. Cordier & Co.

the

THE RECIPROCITY TREATY:

ITS ADVANTAGES
TO THE UNITED STATES AND TO CANADA,

in num-

by your
ity — its
L'ord the
and the

:o, <' Let

e, in our

ILE,

LTH.

writer oT
ey, Esq.,

&Co.

FOR nuiuy years after the United States had established their in-
dependence, their trade with the Colonies which continued to
own allegiance to the British Crown was subject to most galling re-
strictions. Partial relief was allbrdcd by the convention negotiated
in 1830, by Mr. McLane, President rlacksoa's Minister at the Court
of St. James J and a further step towards freedom in commerce
was taken in 1846, when the American Grovernmcnt secured the
enactment of a drawback law. The bcnclicial results of these
measures led to the introduction into Congress, in 1S4S, of a Kill
for Reciprocal Free Trade with Canada 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
Treasury to communicate to it all the information he could gather
relating to the commerce of the Provinces with the States. Mr.
Corwin selected Mr. Andrews to collect and tabulate the statistics
bearing on this Trade ; and that gentleman's report, transmitted to
the Senate in August, 1852, had a most ini[)ortant influence on
the subsequent action of the British and American Governments
and Jjcgislatures.

Mr. Andrews reported :

" That the free navigation of the St. liawrence was greatly de-
sired by all those Western States bordering on the great Lakes, as
their natural outlet to the Sea.

" That the free navigation of the St. John would 1:^ of great

THE RECIPROCITY TREATY. — PRIZE ESSaY.

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 American lumber floated down that river would be
but an act of justice to the lumbermen of that quarter, upon whom
it pressed 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.

" That it would bo wise to place the border trade between the
TTnited States and the Colonies on a different basis, and under the
influence of a higher principle, so as to mature and perfect a com-
plete system of mutual exchanges between the different sections of
this vast continent— an achievement not only wise and advantageous,
but worthy of the high civilization of the country."

After much correspondence between the Governments interested,
and many debates in the American and Colonial Legislatures, in
which some opposition to freedom of trade was shown by the Penn-
sylvania manufacturers and the Maine lumber interest, and much
c,">nosition to admit Americans to the coast fisheries was displayed
I • the Maritime Provinces, the British Government gave the
harl of Elgin full powers to negotiate a treaty in accordance with
these views, and Mr. W. L. Marcy having been named plenipoten-
tiary by the President of the United States, the Reciprocity Treaty
was drawn up. {a) It was ^' done in triplicate at Washington, on

(a) The Keoiprocity Treaty consists of seven articles :

Article I gives the inhabitants of the United States, in common with th«
subjects of Her Britannic Majesty, the liberty to take fish, of every kind
except shell fish, on the sea coasts and shores, and in the bays, harbours
and creeks of the British North American Provinces.

Jrticle II gives similar privileges to British subjec'' in An'^rioan waters.

.Article III stipulates that the following articles, being the growth and
produce of the British Colonies or the United States, shall be admitted into
each country respectively, free of duty_i

Grain, Flour and fJreadstuff^ of all kinds ; Animals of all kinds; Fi^h,
smoked and salted meats ,-OmtTJn, wool, seeds and vegetables , Undried
frtiits, dried fruits ; Fish of ail kinds; Products offish, and all other crea-
tures living in the water ; Poultry and eggs ; Hides, furs, skina or tails,
undressed ; Stone or marble in its crude or unwrought state ; Slate ; But-
tw, cheese, tallow ; Lard, horns, manures ; Ores of metals of all kinds ;
Cotil ; Pitch, tar, turpentine, ashes ; Timber and lumber of all l^iqds, round.

grind-
tVictur

Jrt
navig
uicaiij
with
jesty.
Michi
to ur
nic A
inhal
8hall
John

./)•
t!ie t
part")

Ar
and

E^astern
inswick
rould be
n whom

le shores
t region

reen the
nder the
3t a com-
ictions of
itageous,

iterested,
iturey, in
he Penn-
nd much
displayed
gave flic
mcG with
lenipotcn-
ity Treaty
ingtoD, on

jn with the
every kind
s, harbours

:(in waters,
growth and
mitted into

nds ; Fl'sh,
3 , Undried
other crea-
18 or tails,
Slate ; But-
all kinds ;
.r\d3, round.

THE RECIPROCITY TREATY.— PRIZE ESSAY. 5

the 5th of June, 1854." It went into effect in Canada on the
18th October, and was put into full operation in the States by the
President's Proclamation of March 16th, 1855.

For several years afterwards, nothing but satisfaction was ex-
pressed at the working of the new arrangements ; but when the
fiscal necessities of Canada rendered an increase in its revenue ne-
cessary, and heavier duties were levied on manufactured goods, the
frontier towns of New York State, whose .exports of such articles
began to decline, complained that the spirit if not the letter of the
Treaty was being broken. Each successive increase in the Cana-
dian tariff was made the pretext for renewed complaints. The
American Government began to act less liberally than they were
wont towards Canadian merchants. Heavy consular fees began to
be exacted on imports from Canada. Proof began to be demanded
that our exports of grain were " the growth and produce of Cana-
da," and much of the carrying trade we had begun to enjoy was
thus cut off. The Legislature of the State of New York reported
that the action of the Canadian Goveriiment was unfair, and re-
quested its representatives in Congress to picter-t the interests of
the Republic from the "unjust and unequal system'" said to prevail.
And although this statement was ably answered by Mr. Taylor and

hewed, sawed, unmanufactured in whole or in part; Firtwood, plants
shrubs and trees ; Pelts, wool; Fish oil ; Rice brooms, corn and bark;
Gypsum, ground or uuground ; Hewn, or wrought or unwrought burr or
grindstones ; Dye stuffs ; Flax, hemp and tow, unmanufactured ; Unmanu-
factured tobacco ; Rags.

.ir/u7c ir extends to the inhabitants ot tiie United States the right to
navigate the River St. Lawrence and the canals in Canada, used as the
means of communicating between the Great Lakes and the Atlantic Ocean,
with their vessels, boats and crafts, as freely as the subjects of Her Ma-
jesty. It also gives to British subjects the right freely to navigate Lake
Michigan. By tliis article the Government of the United States engages
to urge upon the State governments to secure to the subjects of Her Britan-
nic Majesty the use of the several State canals, on terms of equality with the
inhabitants of the United Stales. It also stipulates that no export duties
shall be levied on lumber cut on American territory, floated down the »St.
John and exported from New Brunswick.

. Irtirlc V states that the treaty 'S to continue in force for ten years from
the time of its going into ett'ect, after which it shall terminate on either
party's giving ore year's notice.

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

Article VII makes the arrang-ements for Its mutual ratification.

THE RECIPllOCITY TREATY. — PRIZE ESSAY.

the Chamber of Commerce of St. Paul, Miimesota, (a) aud rofated
by Hon. Mr. Gait, (/>) theu, as now, Finance Minister of Canada,
who pronounced it " unjustifiable," a resolution introduced into
Congress, in January 18G5, was carried and the J^rcsident was en-
joined to suspend the existing Treaty (r). Notice was according-
given in London on the 17th March, 1865, aud information thereof
reached the Governor General at Quebec on the ord April.

(tr) "We venture tilt' further statement that all i>;irlies to this Treaty
"have hitherto observed its stiiuilations in j:,'ood liiilh. The Americans
"possess and enjoy tiieir eularg-ed ri;:^lits in the Hriti-h fisheries of the
" North-Eastera coast, and the free navi-jation of the St. Lawrence; neither
"Government has iuterruptod tlic exchanges of the free list i)rescrihed l)y
" the third Article ; while upon a subject ;)ur[)oscl\- excluded from ihe pro-
" visions of the Treaty ; viz. : the Tariffs of the United States and the ad-
" jacent Provinces in respect to articles of ni uiuf.icture ami foieign pro-
eductions, there is no legitimate ground of complaint in any (luarter. Prior
" to 1861, the duties by the Canadian Tarilf were cDnsiderably eularged
''after 1854: but recently the American scale of duties luis l)oeu advanced
*' in astill greater proportion. In both cases the changes have been en-
" forced by financial necessity, and do not contiict with the Treaty of
"1854." — Memorial of the Chamber of Commerce, .St. Paul, Minn., .Ian.
l1th, 1862.

(h) " To allege that the i)olicy of this Government has been avowedly

"to damage our neighbors is an injurious imputation whi<li was scarcely

" to be expected from the rei)resentatives of a nation whose cominerciiil

" policy is itself so exclusively national and restrictive. ' " * Ifcom-

" plaint can justly be made of the infraction of the spirit, and, it nniy be

" added, letter of the Treaty, it rests with Canada to be the com])Iainant.

" • « • It is a subject of deep regret to the undersigned that thr t'oiu-

" mittee on Commerce should have framed their report and recommenda-

" tions in a spirit of accusation and com[)laint, rather tiuui upon a correct

'•appreciation of mutual advantages in tlie jiast inducing further progre.v-;

" in the same direction in the future." — Report of .Mr. Giilt, .Viarch ntli.lSGi.

'' Whereas it is provided in the Reciprocity Treaty concluded at Wasli-

"ington, the 5th of June, 1854, between the United State.?, of the one part,

'•and the United Kingdom of Great Britain and Ireland, of the other pari,

" that this treaty ' sliall remain in force for ten years from ihe date at

" which it may come into operation, aud further until the exjiiration of

'• twelve months after either of the higli contracting parties shall give no-

" tice to the other of its wish to terminate the samr,' and whereas it ap-

" pears by a proclamation of the President of the ruilcd Staler, bearing

"date sixteenth March, 1355, that the troaty came into operation on that

" day ; and whereas, further, it is no longt'r inr tiie interests of the United

•' States to continue the same in force : Tiierefore,

/f^so/i'ffZ by the Senate and House of IJepresentatives, &c. : — "Thatiio-
" lice be given of the termination of the Reciprocity Treaty, according lo
" the provisions therein contained for the termination of the same, and the
"President of the United States is hereby charged with the communica-
" lion of such notice to the Government of the United Kingdom of Great
"Britain and Ireland'" — Jpproi'ed, January 18th, 1865.

ro luted

Canada,

ccd into

was en-

■ording-

thereof

is Treaty
mericans
it'S of the
neither
cribed by
m ibe pro-
id the a<l-
^n piM-
i-ter. I'fior
cularged
ailvanced
c been en-
Treaty of
^liiiii., .!au.

iivo-iVCiUy
as scarcely
commerciitl
* Ifcom-
, it may be
)rji])Iaiiiaiit.
it thr <."oni-
comnienda-
»ii a currect
ler progress
inth,lSG2.

I at Wasli-
lie one part,
other pari,
:he date at
xpiration of
all give no-
ereas it aji-
,te:-, bearing
tioii on that
r the United

-" That 110-
u'cording to
inic, and the
comma nica-
)in of Great

THE RECIPROCITV TREATY. — PRIZE ESSAY. I

It is perhaps allowable hero to take a rapid .survey oi' the regions
most interested in the Treaty, which are, y/y.s//y, those beside the
Lakes, their natural outlet by the S* Lawrence and their artiiiciai
one by the Hudson ; and, secondly, the North-Kastern iStatea and
Provinces.

The basin of the Lakes has, for the la- f two decades, presented
a spectacle of matorial progress uuoxainpl d in the history of the
world. Cities whoso very names wori' not marked on the maps
from which, as school boys, wo learned geograpliy, now count their
population by tens of tliousands ; and the Atlantic seaport, to which
their trade converges, already boasts of far more than a million of
souls (rt). Nor have the rural districts, admirably adapted by soil
and climate for the support of a dense population, lagged behind.
They have attracted an unprecedented tide of immigration, and on
looking at tlie census (/>) it would seem that a region must have

(a) The increase Vtelween the last two censii,-! of the chief cities on the
Lakes and tlair outlets is as follows: —

I'Ol'l.r.ATIO.V. E3TI.MA.TE1>,

18J0. 1800. ISC5.

Milwaukee 20,001 45,24G 70,000

Chicago 29,90;'. 109,'_'0O 180,000

Detroit ::i,019 4.-j,Gl!> (!0,()00

Bniralo 4-V201 81,129 lU0,00o

Rochester :3G,40:i 48,204 00,000

New York and r.rooklyn 012,385 1,073,312 1,250,000

1852. 1801.

Hamilton 14,112 19,090 25,000

Toronto :10,775 44,821 50,000

Kingston ll,58r< 13,74.^ 15,00(>

Montreal and suburbs 00,000 101,002 120,000

— From Census of United States and Canada. Estimates, from Reports
of Boards of Trade, &c.

(6) The population of these State.s and ot Canada is thus given in the

official census reports : poi-ulation, k.stimatej,>.

1850. 1800, 1865.

WisQonsin 305,391 775,881 1,000,000

Michigan 397,054 749,113 900,000

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

Indiana ,, 988,410 l,;i50,428 1,500,000

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

Pennsylvania 2,311,780 2,900,115 3,000,000

New York 3,097,394 3,880,735 4,250,000

1852. 1801.

Canada 1,842,205 2,507,057 2,900,000

To these should, perhaps, be added :

Minnesota 0,077 172,023 250,000

Iowa 192,214 074,913 800,000

THE RECIPROCITY TREATY. — PRIZE ESSAY.

been iu some way connected witli the Lakes to maintain its rela-
tive position amongst the States and Provinces of this Northern
continent (a). The value of real estate and personal property in
Wisconsin, Michigan, Illinois, Indiana, Ohio, Pennsylvania, New
York and Canada, increased from $3,000,000,000 in 1850, to nearly
§7,000,000,000 in 18G0 (b).

(a) All the States did indeed increase absolutely between 1850 and 1830.
but not in the same relative proportion. An interesting table, published
in Mr. Kennedy's report on the census, pnge 120, ehews that New York,
Pennsylvaniff and Ohio remained in their proud position at the head of
the list ; that Illinois advanced from the 11th to the 4th ; Indiana from 7th
to 6th; "Wisconsin from 24th to 15tb ; Michigan from 20th to 16th. But
even energetic Georgia lost two places and became eleventh ; Virginia de-
clined from 4th to 5th ; Massachusetts from 6th to 7th, and Kentucky,
Pennsylvania, &c., lost caste in comparison with their North- Western sis-
ter States.

(6) Value of Real Kstate aa given iu the census returns : —

1850. 1860.

Wisconsin $42,056,595 $273,671, CG3

Michigan 59,787,255 257,163,983

Illinois 156,265,006 871,860,282

Indiana 202,650,264 528,835,371

Ohio 504,726,120 1,193,898,422

Pennsylvania 722,486,120 1,416,501,818

New York 1,080,309,216 1,843,338,517

Canada 300,000,000 550,000,000

$3,008,280,570 $6,935,270,061

(The census of Canada gives the value of farms only, viz,; —

1852 $263,516,192

1861 466,675,384

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

The increase in lands improved was as follows : —

1850. 1860.

Wisconsin, acres 1,045,499 3,746,036

Michigan 1,929,110 3,419,861

Illinois 5,039,545 13,251,473

Indiana 6,046,543 8,161,717

Ohio 9,851,493 12,665,587

Pennsylvania 8,623,619 10,463,306

New York 12,408,964 14,376,397

Canada 7,307,950 10,855,854

51,252,723 70,940,231

51,252,723

Increase in ten years, acres 25,687,508

The increase in agricultural productions is shown by the foUo-Vi^ing
table, of which the details are interesting, since they prove that New York
and Pennsylvania grow less wheat than formerly, and depund more on
other regions for sustenance.

No
Lorii
c'ial
hand
1860
State

■•1
-1

-1

THE RECIPROCITY TREATY. — PRIZE ESSAY.

its rela-

Northern

operty in

inia, New

to nearly

Oand 18C0.
published
ew York,
e head of

na from 7 th
6th. But
irginia de-
Kentucky,

iVestern sis-

860.

67\,CGi

163,983

,860,282

,835,371

,898,422

,501,818

,338,517

,000,000
,270,061

16,192
75,384
■state.)

1860.
1,746,036
5,419,861
$,251,473
1,161,717
J,665,587
>,463,306
i,376,397

),855,854

5,940,231
1,252,723

5,687,508
he folloA.'ing
lat New York
(and more on

The improved lands increa.sed from 51,000,000 acres to 77,000,-

000, and the grain raised shows a similar increase, viz :

1850. 18C0.

Wheat grown, bus. (a) 83,500,000 127,000,000

. Corn '' " 217,000,000 .^26,000,000

Oats " " 104,000,000 152,000,000

(rt) WnEAT (iUOWN— 1850. 18G0.

Illinois, bushels 9,414,575 24,159,500

Indiana, " 6,214,45S 15,219,120

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

New York, " 13,121,498 8,681,100

Pennsylvania " 15,367,691 13,045,231

Wisconsin, " 4,286,131 15,812,625

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

Canada, " 15,756,493 27,274.779

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

Illinois, bushels 57,646,984 115,296,779

Indiana, '• 52,964,363 69,041,591

Michigan, " 5,641,420 12,152,110

New York, " 17,858,400 20,061,048

Pennsylvania," 19,8.^5,214 28,190,821

Wisconsin, " 1,98,^,979 7,505,290

Ohio, « 59,078,o?5 70,637,140

Canada, " , 2,090,09^^ 2,591,151

21. ',104,149 320,141,930
Oats grown —

Illinois, bushels 10,087,241 15,336,072

Indiana, " 5,655,014 5,028,755

Michigan, " 2,866,056 4,073,098

New York, " 26,552,814 35,175,133

Pennsylvania," 21,538,156 27,387,149

Wisconsin, " 3,414,672 11,059,270

Ohio, " , 13,472,742 15,479,133

Canada " 20,369,247 38,772,170

103,955,042 152,310,780

Nor did the progress of the States stop even when the Rebellion began.
Lorin Blodget, in a remarkable pamphlet on " the Commercial and Finan-
cial Strength of the United States," 1864, shows that the "quantities
handled " in 1863 were " more than thirty per cent, over the quantities of
1860," and givos the following table of "Domestic Exports of the Lo\'al
States " :

In 1859-60 , $173,759,604

1860-61 201,651,554

1861-62 , 213,069,519

L862- 305,884,998

Ha adds, " we have a right to claim that alraoat the entire advance

THE RECIPROCITY TREATY. — PRIZE ESSAY.

The railroads which now traverse these countries in every direc-
tion have sprung- into existence as if by magic. In 1850 there
were but 3,500 miles completed ; in 1860 there were 17,000 (a).
The tonnage of the lakes, which was but 215,787 tons in 1850,
was 450,000 tons in 1862, (Z>). As might naturally be expected
from such an increase in the meabs of transportation, the commerce
of the Lake region has increased in proportion. To give one item
only. The movcixiect of grain eastward, which was about 26,000,-
000 bus. in 1850, reached the enormous amount of 137,772,441
bus. in 1862, (c) and 138,798,074 bus. in 1863.

in value from 1860 to the close of June, 1863, was a legitimate and
reasonable increase, caused by no inflation or depreciation of tlie currency.
Compare the address of the Illinois delegates of 1863 to the Governor
General of Canada : " With one-tenth of the arable surface under cultiva-
" tion, the product of Wheat of the North-western States in 1862 is esti-
" mated at 150,000,000 bus., and of Indian Corn at 500,000,000 bus."

(«) Railroads in the Lake States and Canada : —

New York, miles -

Pennsylvaniii, "

Ohio, "

Indiana, **

Michigan "

Illinois, "

Wisconsin, *'

Canada, "

1850.

1860.

1,403

2,702

822

2,542

575

2,999

228

2,126

342

799

110

2,868

922

1,974

3,512

16,932

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

(h) Tonnage of 1850, from Andrews' Report, page 52. That of 1862
from Report Chicago Board of Trade, 1863, p. 59. The nationality of the
craft was : —

American, tons 301,997

Canadian, *' 88,896

Value $ll,364,10r

" 2,607,500

450,803 $13,971,600

(<•) The amount of grain sent eastward depends much on ihe abundance
of the harvest. We have no ligures for the period between 1850 and 1856,
but the following table shows the quantity sent eastward in each year,
excepting those in that interval — (Flour converted into Grain included) : —

1850, bushels 26,000,000

1856,
1857,
1858,
1859,
1860,
1861,

57,707,769
44,111,299
58,872,560
44,354,225
, 78,639,426
,120,741,851

ry direc-
)0 there

000 (a),
in 1850,
expected
ommerce

one item
; 26,000,-
r,772,441

imate and
J currency,
e Governor
er cultiva-
862 is esti-
bus."

1860,
2,702
2,542
2,999
2,126

799
2,868

922

1,974

16,932
579,641

^hat of 1862
aality of the

,364,10r
,607,500

,971,000

le abundance
50 and 1856,
in each year,
included) : —

1,000,000
■.707,76'>
tilll,299
1,872,560
1,354,225
3,039,426
),741,851

THE RECIPROCITY TREATY. — PRIZE ESSAY. 11

This wonderful progress is not to be attributed to any one cause :
the exodus from Ireland, Germany, and Norway, the adoption of a
Free Trade policy by England, the expenditure of about $1,000,-
000,000 on railroads and canals — all these have powerfully con-
tributed to make the lands around the lakes attractive to capitalist
and laborer. But not the least among such causes, and one which
especially concerns commercial men, has been ih enactment of the
Reciprocity Treaty and the freedom of trade which these regions
have consequently enjoyed.

The Lakes and their connecting rivers have a coast line of up-
wards of 4000 miles — half British, half American. At numerous
points Canada and the States actually indent each other. Here
Canadian, there American railroads and canals offer to the joint
commerce of the two countries the shortest transit, the cheapest
and most rapid means of conveyance from East to West, Here

1862, " 137,772,441

1863, " 138,798,074

1864, " 100,607,384

The above figures are from a paper read by the author before the Literary
and Historical Society, Quebec, supplemented as to 1863 and 1864 by those
in the report of the Montreal Board of Trade, 1864, from which we ta^o
the annexed table, showing the manner in which this grain reached the
Eastern States and Provinces in 1863.

Received at

Flour, brls.

Western Ter. Baltimore
and Ohio R. R

Western Ter. Penn. Cen-
tral R. R

Detroit

Toledo

Dunkirk

Buffalo

Suspension Bridge

Genesee

Oswego

Cape Vincent

Ogdensburgh

Montreal

Total

Wheat, bu. Maize, bu.

750,000

850,000
1,060,026
1,126,260

620,230
2,9'( 8,089;

775,0(90
1,5001

115,292
24,236

475,465
1,193,286

1,774,726

6,U14,130

86,905

21,240,348

Other
Grain, bu.

338,295

1,705,096

191,035

20,086,952

85,000

8,785,4251^2,676,367
206,856|/ 81,698
* 1,057,299
862,544

600,299
5,509,M2

9,969,384 44,482,831

26,990,-76

450,000

1,800,000
681,523
795,933

11,789
8,385,945
1,50 0,00 1 ►

25,000
2,364,169

15,730

25,000
1,413,958

17,469,047

12 THE RECIPROCITY TREATY. — PRIZE ESSAY.

CanadiaD, there American markets are the best or the most con-
venient for the people of the neighbouring districts to buy or sell
in. It has been permissible since 1855 for the inhabitants of
either side of the frontier freely to use the facilities afforded by
the other, and a trade has grown up which, though before Recipro-
city it never exceeded $13,000,000 per annum, now averages
about $40,000,000, surpassing what the entire foreign commerce
of the States was for several years after the beginning of their
government. («)

If we now turn to the Eastward we shall see an entirely different
scene. The North-eastern communities, living under a less genial
sun, and possessing a less fertile soil, look to the sea for a great
portion of their harvest. The value of the deep-sea fisheries of

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

Imports Exports

from Canada, to Canada.

1849 1354,234,721

1850 $4,285,4T0 5,930,821

1851 4,956,471 7,929,140

1852 4,569,969 6,717,060

1853 5,278,116 7,829,099

1854 6,721,539 17,300,706

1855 12,182,314 18,720,S44

1856 17,488,197 20,883,241

1857..*. 18,291,834 16,574,895

1858 11,581,571 17,029,254

1859 14,208,717 18,940,792

1860 18,861,673 14,083,114

1861 18,645,457 14,361,8;)8

1862 15,253,152 12,842,504

1863 18,816,999 19,808,718

The above figures are from Mr. Chase's letter to the House of Represeu-
tatives, January 28th, 1864.

It is remarkable how closely they agree with the Canadian returns. The
last nine years sum up thus : —

Iraporta from Exports to

Canada. Canada.

$145,329,914 $153,334,720

Exports to Imports from

U. States. U. States.

Our own returns sum up to.... ...$141, 704,418 $183,611,249

Something should be added to the Exports both from Canada and the
States for " short returns," and the figurea would then correspond to a
nicety which almost proves their correctness, and is highly creditable to tho
Statistical oSicers of both countrjes '

THE RECIPKOCITY TREATY. — PRIZE ESSAY.

lost con-
ly or sell
litauts of
)rded by
Recipro-
averages
jommerce
of their

different

ess geaial

or a great

heries of

sports

Canada.

}34,'724

930,821

029,140

717,060

82&,099

300,706

,720,S44

,883,241

,574,895

,020,254

,940,792

,083,114

,361,858

,842,504

,808,718

of Reprcseu-

rcturns. The

lorts to

mada.

,334,720

)rts from

States.

5,611,249

nada and the
respond to a
cUtable to the

Massachusetts, in 1860, * (a) was no less than $9,300,412, of Maine
and Connecticut over $1,000,000 each, and that of the British
Provinces $8,000,000, (6). The tonnage engaged in fishing, ex-
clusive of whaling, is not stated in the American returns, but it
probably equals that of the Provinces, which is about 100,000,
worth, at low estimate, $4,000,000,

The population of these countries has not increased with great
rapidity, but the trade ot the States with the British Possessions
has increased, under the operation of the Reciprocity Treaty, from
$8,000,000 to $16,000,000 per annum (c).

[(. j Kennedy's Preliminary Report on the Census, page 188.
Value offish caught by United States fishermen : —

Mackerel and cod fishery, includ- ) Maine $1,050,75.5

ing, it appears, hake, her- > Massachusetts 2,774,204

ring, &c ) Connecticut.

281,189

$4,106,148
The statistics of the fishing industry of the United States, as given in
the census, arc very incomplete. The total value of fish is given at
$12,925,092, which includes $7,521,588 value ot products of the whale
fishery. The only other important figures relate to the mackerel, cod and
herring fishery, given above.

(6) The following figures show the extent of the fishiug 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, herring 2,562,000

New Brunswick — cod, mackerel, herring, alcwives

and hake 388,235

Prince Edward Island— cod, herring and mackerel. . . 272,532
Lower Canada — (estimated) 700,000

$8,362,767

{(■) Population of the North Eastern ^Vtlantic States and Provinces,
1850 and 18(j>) :—

States— 1850 I860.

Maine 58i,8i3 626,952

Massachusetts 986,450 1,221,464

Connecticut 363,099 451,520

New Hampshire 317,450

'2,247,818
Provinces —

Newfoundland 122,638

Nova Scotia 276,117

New l^runswick 193,800

Piinco Edward Island 71,496

325,579

2,625,515

124,288

330,857

352,047

80,857

664,051

788,049

14 THE RECIPROCITY TREATY. — PRIZE ESSAY.

Until the passage of the Reciprocity Acts of 1854, the Ameri-
cans were excluded, in terms of the Convention of I818, from the
right to fish within three miles of the sea-coast of New Brunswick,
Nova Scotia, Prince Edward Island, and Canada. Neither could
they legally resort to all parts of the Newfoundland shore. Since,
however, mackerel can only be caught within that limit, (a) where
also the best kinds of other fish are often to be found, the fishermen
from the States were frequently led both clandestinely to evade
and openly to defy the terms of the International agreement.
When detected and caught, their vessels were often confiscated .
and, just before the negotiation of the Treaty, the Imperial Gov-
ernment sent out a fleet of armed vessels, (h) while the Colonics

Trade of the United States with the Mairitime Provinces : —

Imp. from them, Exp'ts to them.

1849 13,869,543

1850, $1,358,992 3,618,214

1851 1, "736,651 4,085,'783

1'752 1,520,330 3,791,956

1853 ::, 272,602 5,311,543

1854 2,206,021 7,266,154

1855 2,934,420 9,085,676

1856 3,822,224 8,146,108

1857 3,832,462 7,637,587

1858 4,224,948 6,622,473

1859 5,518,834 9,213,831!

I860 4,989,708 8,623,214

1861 4,417,476' • 8,383,755

1862 4,046,843 8,236,611

1863, [estimated] 5,000,000 11,382.312

From the letter of the Secretary to the Treasury, January 1864.
(a) " Our fishermen cannot go through another summer Avithout involv-
ing themselves in serious difficulties with the British Provinces. . . Not
that war will ensue, unless the fishermen are quieted, but I believe there is
danger of bloodshed. T/icre arc ??o mackerel left on the shores of the United
States, and that fishery cannot be successfully prosecuted without going
within three miles of the shore, so that unless we have this privilege to
enjoy the shore fishery without annoyance, the mackerel fishery will' be
broken up, and that important nursery for American seamen will be de-
stroyed."— Speech of the Hon. Amos Tuck, of New Hampshire, in House
of Representatives, 1854

"Accounts dated the l7th instant, from Port Hood, mention that all the
" United States craft fishing along the Nova Scotian coast ' are detained
" ' by the Steamer Devasteition, for alleged informality in their papers, and
"'any vessel attempting to leave will be fired into.'"— Extract from
Quebec Mercury, September, 1852.

{h) "A circular letter Lag been sent to the Governors of the several
Colonies, announcing that Her Majesty's Government has resolved to send

THE RECIPROCITY TREATY. — PRIZE ESSAY.

he Ameri-
1, from the
Brunswick,
ither could
re. Since,
,, (a) where
,e fishermen
y to evade
agreement,
confiscated .
iperial Gov-
hc Colonics

'is to them.
3,869,543
3,618,214
4,085,'783
3,791,956
5,311,543
7,266,154
9,085,676
8,146,108
7,637,587
6,622,473
9,213,831!
8,623,214
8,383,755
8,236,611
11,382.312
1864.'

itbout involv-
ces. . . Not
selieve there ia
!s of the United
without going
9 privilege, to
ishery -will be
in will bo de-
liire, in House

ioQ that all the

' are detained

iiv papers, and

-Extract from

of the several
^solved to send

themselves fitted out six cruisers, fully armed and manned, to
prevent further aggiessions. There was an additional cause of
irritation in the misunderstanding which existed as to the precise
meaning of the Convention — the provincial authorities contending
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 Reciprocity Treaty happily brought these disputes
to an end. American fishermen coming northward ceased to be,
and to be regarded as thieves ; and were no longer liable to be
chased from one secluded port to another. They now ply their
honest calling in an honorable way. Fleets of fishing craft, owned
in Maine and Massachusetts, now visit, unhindered, every New
Brunswick island, every Nova Scotian bay ; while, preceding the
advance of spring, they pour in almost countless numbers through
the gut of Caaso, the side gate to the Gulf of St. Lawrence, and
take home full cargoes from the Bay of Chaleurs and Canadian
waters. A return laid before the Canadian Parliament last year
gives some important iaformation on this score. It shows that
the value of ti.sh taken in our waters by American fishermen,
which was but $280,000 per annum previously to 1855, rose at

a small force of armed vessels and steamers to North America to protect
the fisheries against foreign aggression. The Colonial Governments have
titted out six cruisers, fully manned and armed, which have sailed for the
best fishing grounds, and there is imminent danger of a collision. The
colonial cruisers threaten to make prize of every vessel " fishing or pre-
paring to fish," within certain limits, which the colonial authorities contend
are within three marine miles beyond a liue drawn from headland to
headland, and not three miles from the shores of the coast, which our
citizens contend is the true reading of the convention." — Andrew's Report,
page 36,

One of the most serioua consequences of this habitual invasion of the
terms of the Convention of 1818 was, that the American fishing vessels
were obliged to place themselves in difficult and dangerous positions to
avoid detection. In 1851 over 100 vessels were driven ashore on Prince
Edward Island in a gale, and over 300 lives lost. The fleet braved the
storm rather than run for port, and thus confess their infraction of British
rights.

"The return of mackerel this year will fall short one-half of the quantity
"taken to this date last year. This is attributed muinly to the vessels
*' being obliged to keep fnrthor from the shore than heretofore. Another
" cause is their being prohibited from fishing in the Bay of Chaleurs, where
" full fares could have been obtained"— Prom the Gloucester Telegraph,
September, 1852.

16 THE RECIPROCITY TREAT T — PRIZE ESSAY.

once to $632,400 in that year, and reached no less a figure than
$1,265,700 in 185G. It then gradually declined to $410,000 in
1860. When the rebellion commenced the war navy of the States
needed and obtained the services of many fishing vessels and
their crews, and the value of the fish taken fell to $250,000 annually ;
but there is little doubt that, now their country no longer needs
their services, the fishernion, if allowed, will again come north in
the same numbers as bofore(rt). It was at one time feared that
the influx of American fishing vessels would seriously injure the
fisheries, and deprive the fishermen of the Provinces of their
means of support. This apprehension has not been realized to
any great extent ; and any injury that may have resulted in th's
respect has been more than counterbalanced by the increased
energy which the competition of the Americans has taught their
cousins to employ (/>). As a proof it may be mentioned that the
value of the fish taken by Nova Scotians and New Brunswickers,
which was $2,110,750 in 1850, reached no less a figure than
$2,950,235 in 18G0 (c).

The fisheries of the lakes cannot compare in value with those of

(a) Statement of the number of American vessels engaged in the fisheries
of the Gulf of St. Lawrence, in Canadian waters, &c., &c.: —

No. of Vessels. Tonnage. JJ'^; ^^ v^fV'f

° Crew. Fish taken.

1852 2oO 18,200 3,400 $ 294,000

1853 220 15,400 3,000 27G,000

1854 234 10,380 3,220 280,800

1855 334 23,380 3,580 632,400

1856 47G 3G,320 6,600 1,265,700

1857 452 31J640 6,240 1,053,000

1858 453 31,710 G,170 634,500

1859 380 2G,G00 6,160 528,000

1860 370 25,900 4,980 459,000

1861 356 24,920 4,840 416,400

16G2 274 19,180 3,740 267,000

1863 235 16,450 3,230 249,750

Return compiled by Mr. Whitcher, Fisheries Branch, Crown Lands De-
partment, 27th June, 1864.

(b) Vide speech of Hon. Charles Fisher, of New Brunswick, dolivered at
Toronto, 1864.

(c) These figures relate to the cod, herring and mackerel li^lierieg. Tiie
total value of all kinds of fish taken in New Brunswick was $118,531 in
1860, as against $331,328 in 1850; and the census compilers state in 1861,
that ''a considerable portion of the catch of oi" the past year has not been
reported."

THE HECIPROCITY TREATY. — PRIZE ESSAY.

figure than

i41G,000 in

f the States

vessels and

[)0 annually ;

onger needs

me norHi in

feared that

y injure the

ces of thdir

realized to

ilted in th's

le increased

taught their

led that the

runswickers,

figure than

fvith those of
in the fisheries

Value of
'ish taken.
$ 294,000

27G,000

280,800

632,400
1,265,700
1,053,000

634,500

528,000

459,000

416,400

267,000

249,750
yn Lands De-

i, delivered at

fisheries. The

3 $318,531 in

state in 1861 ,

has not been

the ocean, although they are of the annual value of about $^50,000
(a). The Reciprocity Treaty does not, in terms, apply to these
inland waters, but, owing iu great part to its existence, Americans
have not been uiolested while fishing in Canadian waters, where
the best fisheries arc*. It may therefore be considered as one of
the incidental advantages of iiie Treaty to the Americans that they
ha^e been allowed freely to take on our lake shores fish worth
about ;$2r)0,000, while the Canadians have had tho benefit of the
market of the States for their catch, of which about $75,U00 worth
has been annually exported across the border.

It would not be difficult to occupy, in treating of this branch of
the subject, the few columns allowed for the discussion of the
whole. Suffice it, however, to remark further, that a good supply
offish — a necessity of life to the members of at least one numerous
creed — is of no little consequence to the health and comfort of all
classes. Without reference then to the export trade in fish, it follows
that every measure which enlarges the field of the fisherman's calling
must be advantageous to the whole community. Moreover, (without
alluding to the reciprocal trade in fish and flour between the States
and the Maritime Provinces, of which hereafter,) it is evident
that, since the fisherman is a consumer, not a producer of vegetable
food, every measure which encourages the fishing industry of the
East benefits the farming community of the West, as well as the
forwardin'j; and commercial interests of the middle States.

We need not, however, look to such indirect effects to see the
enormous advantages of which the Treaty has b?en productive to
the agricultural interests of the States and of Canada. Under the
clause which permits the iVee importation into either country of
most of the raw products of the other, the trade in these articles
between Canada and tho States, which was only same 810,000,000

(a) The white-fish taken in the lakes in 1860 by the Americans, was given
as $587,479, of which i?250,4G7 was the result of 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-statement, as it does not tally with the export,
tables.

I :.t

!• J

18 THE RECIPROCITY TREATY. — PRIZE ESSAY.

in the best years before the Treaty, has expanded to an average of"
$23,000,000 per annum.

People do not buy and sell unless for mutual profit, and when
we look at this enormous increase of trude, we must infer that the
gains of those concerned in it have been increased in proportion.
It is indeed difficult to over-estimate the influence of this enormous
volume of commerce in building up the fortunes of commission
merchants, railway sharoholders, steamboat and ship owners, and
their dependents, as well as of tlic farmers themselves (a). We

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

Half year to June, 1855 $ 5,350,500

Year 1855-56 15,927,185

" 1856-57 16,456,788

" 1857-58 10,475,133

" 1858-59 11,444,330

" 1859-60 16,210,128

" 1860-61 10,300,377

" 1861-62 14,293,922

♦' 1862-63 12,807,364

!' 1863-04 (Estimated) 13,0«0.000

" 2^ of '64 do 6,500,000

Total trade under the Reciprocity Treaty for ten years. .$139,305,727

Free imports into Canada under Reciprocity Treaty. From Canadian
Trade .nd Navigation Tables: —

Year 1855 $ 7,725,572

" 1856 8,082,820

'' 1857 8,642,044

" 1858 5,504,615

" 1859 7,106,116

" I860 7,069,098

" 1861 , 9,98(1,937

" 1S62 14,430,626

•' 1863 12,339,367

*' 1864 (Estimate) 12,000,000

$ 92,941,195
Add exports, from above „ 139,365,727

Total trade both ways $232,306,922

Excess of imports into the States $40,424,532

From Secretary Chase's report, pages 16-18, it appears that the total trade
with the Maritime Provinces, under the Treaty, tor the first ten years of
its continuance, was : —

THE KECIPIIOOITY TREATY. — PRIZE Ef^SAY.

average of

and when
r that the
)roportion.

enormous
omraissiou
i^ners, and

(a). We

Reciprocity

'J50,L>00
927,185
456,788
475,133
444,330
210,128
300,377
293,922
807,364
,060.000
,500,000

306,737

n Canadian

725,572
,082,820
642,044
,564,615
,106,116
,069,098
,980,937
,430,626
,339,367
,000,000

,941,195
,365,727

,306,922

,424.532

le total trade
ten years ot"

gain an insight into the reciprocity of this beneficial influence by
observing the course in which it is conducted with respect to the
leading articles of exchange.

In 1863 we imported irom the States 4,210,900 bushels of
wheat, and exported thither 1,400,000. The imports were chiefly
at Kingston (3,175,055 bushels), and at Sarnia (78,795 bushels).
The exports were principally across the lakes. We also imported
225,439 barrels of flour, and exported 490,000. Converting these
into their equivalents in bushels of wheat, we find that our imports
of this cereal from the States were 5,338,095, and exports thither,
3,850,000. Now we did not import the balance, 1,488,095 bush.,
because we needed it for food, for wc had a fine surplus of our own,
and exported to Europe and the Colouiv.. 1,494,384 bushels of
wheat, and 2,783,150 barrels of flour; together, 8,909,304 bushels
of wheat. But it helped to feed our internal commerce, made up
15 per cent, of our foreign export of this article, and increased the
business of our millers — since the fiirures show that what we im-
ported as wheat, we exported chiefly as flour. Besides, sectional
benefits resulted: for the price of wheat was rendered uniform in
all accessible parts of the country. On the other hand, the price
of flour was somewhat reduced to the people of the Northeastern
States, who received a portion of their supplies by our cheap
freight routes, while the American merchants and forwarders

Add the trade with
Canada, as above.

Imports into U, S.

$ 35,501,000

, .. 139,305,727

Imports into Provinces

$40,000,000

92,941,195

Total trade under the

Treaty §174,865,727 $132,91L1?5

The U. S. Tarifl' on the principal articles mentioned iti the Schedule at-
tached to the Reciprocity Treaty, was on An'mals, 20 per cent. ; Gutter,
20 ; Pork, 20 ; Fish, 20 ; llggs, ZQ ; Pelts, liO ; Wheat, 20 ; Flour, 20 ;
Barley, 20 ; Oats, 20 ; Rye and Corn, 20 ; Vegetables, 2o ; Fruits, 20 ;
Lumber, Timber and Wood, 20 ; Wool, 30 ; Clover and Grass Seeds, 30 ;
Coal, 30.

The present United States Tariff is considerably higher, although feAv
of the above articles are specified in the tarifl'. It only mentions — Coal,
$1,25 per ton; Seeds, Garden, 30 per cent; Sheepkins, 20; Tobacco, un-
manufactured, 35 cents per lb. ; Wool, unmanufactured, if less value tliau
12 cents per lb., 3 cents, 21 cents per lb., 6 cents.

THE RECIPROCITY TREATY. — PRIZE ESSAY.

enjoyed the beaefit of the trade with the Maritime Provinces,
which consume annually about the same quantity of breadstuflfs
which we export to the States. In 1863 the Lower Provinces im-
ported from the United States flour and wheat to the extent of
3,615,232 bushels ; our exports to the S' tes being, as above given,
3,850,000 (u).

Looking now at the coarser graiuvS, we perceive that we exported
^2,260,438 worth of barley and rye, while we imported only
S75,793 worth. Similarly, the exports to the United States of
oats amounted to $2,097,688 ; the imports to but 317,637. But,
on the other hand, we imported Indian corn to the value of $975,-
014, and exported only §39,807 worth. Thus we sec that the
Treaty has had the beneficial effect of enabling the farmers of
Canada and the United States to use their lands in raising just that
kind of produce for which their soil and climate are best adapted
— the Canadians growing oats and barley, the Amcricaos corn.
The consumer has consequently had the advantage of cheaper
prices than if the farmers of Illinois had been driven to raise oats
and those of Canada corn. So with animals. We exported live
animals worth $2,390,799^ importing to the extent of 8520,835;
but we imported meats worth 81,238,923, and exported only to

(a) Compare Hon. Mr. Ilowland's report to the Executive Councii on

Intercolonial Trade, 1861. Also, speech of Hon. T. Ryan. (Parlimentary
reports, 1865,)

The figures for 1863 arc the following :

Imports of wheat and Hour from the United States into —

Barrels. Bushels.

Newfoundland, flour 216,595 :^ 1,082, 9?5

New Brunswick, wheat 15,157

Flour 217,420 =^ 1,087,100

Nova Scotia, flour 286.000 =^ 1 ,430,000

Total bushels 3,6 1 5,232

Exports of wheat and flour from Canada to United States —

Wheat

Flour, barrels 490,000

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

(o)

Total, bushels 3,850,00

THE KECIPROCITY TREATY. — PRIZE ESSAY.

Provinces,
breadstuflFs

ovinces im-
extent of

ibove given,

we exported
ported only
ed States of
,637. But,
uc of $975,-
;ec that the
3 farmers of
ing just that
)est adapted
ricaos corn ,
of cheaper
to raise oats
xported live
f 8520,835;
irted only to

ire Council on
(Parlimentary

Bushels.

:l.

1,082,9(5

■■'i

15,157

1,087,100

*•

1,430,000

3,t315,'232

1,400,000
2,450,000

3,850,00

the extent of $256,527 (a). The Canadian farmer who grows oats
breeds horses and cattle, and the American who grows corn con-
verts it into pork. The exchange permitted 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 *he utmost value to the American people, and the hard
time.i in Canada made our farmers welcome the American buyers
with more than their usual cordiality. Nor must the article w^ool
be overlooked. Before the Treaty, we exported to the States
about $100,000 worth of wool per annum; in 1863 the amount
had risen to $974,000. The money is of the utmost value to our
farmers , the wool, which possesses valuable qualities not to be
found in the fleece of the American sheep, is of the utmost value
to their manufacturers " (A).

(«) Imports of meats from the United States-

1855 $1,019,714

1856 . 1,417,771

1857 903,264

1858., 544,366

1859.

601,454

1860 $56fi,991

1861 500,991

18(52 1,040,269

1863 1,238,923

Exports of animals to the United States.
Animals for food —

§862,590

490,853

692,833

787,582

1859 1,235,546

Horses —

1855 $491,493

1855.

•1856.

1857.

1858.

1856.
1857.
1838,
1859.

323,964
467,321
417,154
778,657

1860 $1,090,334

1801 729,679

1862 597,492

1863 1,925,719

1860 ?n57,411

1861 667,315

1862 664,083

18G3 1,465,080

Our exports of meats, and our imports of live animals are comparativelj
iniraportant.

(6) Exports of wool from Canada to the United States —

1850

1851.

1 852 .

1853.

1854.

1855,

1856.

$;5(),860
79,136
74,000

165,000
30,339

275,375

313.061

1857 $270,000

1858

1859

1860

1861

1862

1863

342,798
400,232
401,894
424,930

724,815
074,153

" Our entire crop would scarcely supply the American worsted manufac-
Uirers. Our 'combing wool' is worth twenty cents per lb, moro than the
5ne American wools." — ^cics\)apcr paragraph ^ 1865.

TJIE RECIPROCITY TREATY. — PRIZE E.-.<AY,

Turning from the produce of the farm to that of the mine, we
find other illustrations of the mutual advantages resulting from
the Treaty. Coal is one of the articles free from import duty.
Pennsylvania, which sold 5,000,000 tons per annum at the epoch
of the Reciprocity Treaty, yielded in 18G0, 11,869,574 tons of
anthracite, and 2,600,000 tons of hituminous coal. Ohio gave in
the latter year 1,130,000 tons, all bituminous, liut the bituminous
coal of Pennsylvania and Ohio is so far West that Boston and
other North-eastern cities have to depend upon Nova Scotia for
their supplies, (a) That colony yielded only 100,000 tons per
annum, until of lat?, owing to the mining monopoly held by a
powerful corporation. Now, however, this monopoly has been
destroyed, and the report of the Nova Srotia Commissioner of
Mines shews that 420,351 tons were brought to surHice in 1863,
and 406,699 tons in the first three (garters of 1864. Most of this
was exported to the States. Ohio is, however, within easy reach
of Upper Canada, and we have imported an increasing quantity of
coal thence; in 1863, 103,547 tons, worth $518,846. (/>) Now,

(a) Tons shipped to the United States from Nova Scotia —

TONS.

1849 92,000

1850 98,000

1851 80,000

Mines in operation —

1850 4

1864 20

In 1863, exports of coal to the United States — nearly —

Tons 300,000

Valued at §679,43(5

(h) Imports of coal from the United States into Canada —

Value of coal imported in 1851 (from United States) $38,652

— AhdrcK-'s Report^ p. 431.

TONS. VALUK.

"855 80,000 $326,512

'856 84,000 385,361

1857.
1858.
1859.
1860.
1861.
1862.
1863.

94,816 400,297

70,097 242,7(10

78,557 237,776

79,88(i 304,079

171,561 458,665

.105,905 437,391

103,547 548,846

TEIV, RECIPROCITY TREATY, — PRIZE ESSAY

as wood becomes annually scarcer, coal is becoming more and
more indispensable, and since, from the position of the coal beds,
the permission to import it reciprocally free of duty materially
reduces its cost to the consumer in New England on the one hand,
and in I'pper Canada on the other, the withdrawal of that per-
mission would not only be injurious to the commercial and manu-
facturing interests of both, but one of the mosf cruel injuries to
the whole population of the two countries wliich could possibly be
inflicted Ity the recklessness of their ruk'ih.

The trade in other minerals is only just beginning to be devel-
oped, and as yet consists chiefly in the ores of copper and iron,
many tons of which are exported to the United States (a), where
our copper ores are much sought after, since they act as a flux in
smelting those obtained from American mines.

The lumber trade is of equal importance to Canada with the
trade in grain ; but, contrary to the usual impression, it does not
appear to have been so beneUcially affected by the Reciprocity
Treaty. Great Britain remains the consumer of by far the greater
portion of our annual export, the States taking little from us save
plank and boards, which they bought in large (juantities before
the Treaty, and will continue to buy if it should not be renewed.

Compare speech of Mr. Townsend, of Ohio, Iloiise of Represeutatives,
1853: — "The coal imported from Nova Scotia and -New Bruaawick is
liig-hly bituminous. • ♦ * Some factories in the East are now lying
idle because they cannot, without paying a high duty, obtain a certain
amount of Pictou coal, which they lind it beneficial to use in connection
with that from Pennsylvania. « • ♦ Now the (juestion is : sliall we, by
legislation preventing competition, compel the millions who want coal,
and must have it, to pay an extra and exorbitant price in order that a few
brokers owning coal stocks may realize enormous profits ?"

(a) Ores of metals imported into the United States from Canada f.Sec.
Chase's return) —

TONS. VALUE.

1855-56 '2G,;{72 §19,2 IJ

1856-57 3,231 42,824

1857-58 6,289 236,858

1858-59 2,733 226,086

1859-60 6,681 360,714

1860-61 12,267 392,314

1861-62 40,799 373,658

1862-63 4,915 260,229

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

THE RECIPROCITY TREATY.-- PRIZE ESSAY.

The amount of our export of lumber to the States has indeed
increased considerably, but not much faster than the trade with
England(a), or than the increase of the population of these regions
and the denudation of the American forests would lead us to
expect. The truth is, that although the lake cities may I'or a time
be supplied by Michigan lumber, the Atlantic States must have
ours, for which they must pay us what it costs us to procure it,
and a reasonable profit besides. If they put a duty on it they but
enhance the price of house building, and consequently of house
rent, in every one of the E:istern citie.-^, of which public injury a
few lumber manufacturers in the well-nigh exhausted limits of
Maine will alone reap the temporary benefit(?>). The restricted
interpretation given by the American Government to the clause
affecting lumber has no doubt checked the increase of trade. The
words are that lumber is to be reciprocally admitted free, if
" unmanufactured in whole or in part." Under this phrase the

(a) Ei ports of lumber from Canadn —

To all Countries. To Great Britain. To the U. S.
1851 $r.,085,628 $3,873,080 $1,147,268

1852 6,548,132 3,918,088 1,590,31G

1853 8,666,1G0 0,1G2,5G8 2,383,184

1854 9,275,780 7,24G,9G8 1,975,030

1855 7,127,104 4,370,G68 2,694,23G

185G 8,894,948 5,935.892 2,897,548

1857 10,427,65G 7,212,132......... 3,121,55G

1P:)8 8,354,755 5,10G,G9G 3,207,9G4

1859 8,55G,891 5,204,248 3,301,819

18G0 10,061,147 6,130,776 4,84G,611

18G1 8,693.638 6,408,789 2,065,870

1862 10,051,147 4,896,533 3,252,589

1863 12,264,178 7,713,;jlG 4,175,290

(i) The value of Plank and Boards exported to the United States since
1S51 is given below, together with the price per M. feet ; and the slight
increase in this price, not greater than that in the price of pine-lumber
shipped to England, aHords, it is believed, a remarkable illustration that
the consumer, not the producer, of imported, articles chietly suffers by ('• <'•
pays) the duty th.at may be imposed upon it.

Exports of Planks and Boards to the United States—

VALUE. I'llICR.

1851 !$774,11G $7(i0perM,

1852.... 1,1 44,092 7 75

1853 1,866,712 9 00

1854 1,579,821 9 75

1855.... 2,313,359 10 50

1856.... 2,483,687 10 75

1857 2,557,206 11 GO

VALUR. PRICE.

1858... $2,890,319 $7 75 per M.

1859... 2,676,447 8 00 "

1860... 3,027,730 9 75 "

1861.... 1,507,540 9 50 <<

1862... 2,279,567 9 75 <'

1863.... 2,963,426 1 00 «

THE RECIPROCITY TREATY. — PRIZE ESSAY.

United States have considered themselves entitled to charge duty
on boards, if so much as grooved and tongued ; on shingles, if so
much as dressed. It will behove those interested in the lumber
trade, on both sides of the lines, to see that, ia the event of the
renewal of the Treaty, a more liberal policy is adopted in this
particular.

Our limits, now fast being filled, warn us to pass at once to the
consideration of the last important article of the Treaty — that which
secures to the United States the right of using our canals, and
enables Canadian vessels to navigate Lake Michigan. This, the
article which perhaps most deeply concerns the Western States,
appears to be that which has led to all the agitation hostile to the
Treaty. Freedom to use our canals, especially on the liberal terms
fixed by the Canadian Government, has naturally interfered with
the monopo'; of transport enjoyed by those of New York State,
whose policy has always been to raise as much revenue from tolls
as the Western producers could be made to pay. Buffalo and
New York consequently first took ground against the Treaty, and
the Committee on Commerce of the New York Lccrislature, in
reporting against it, plainly shewed their animus in the complaint
that we have " built canals and railroads in Canada to compete
with American interests," and " engaged in fruitless but persistent
efforts to divert the trade of the Western States from the natural
channels it had already formed," Let the Legislature of New
York be answered by that of the State of Illinois. The Com-
missioners from that State, appointed under resolution of the Ittli
February, 1863, to confer on the subject of transportation with
the Canadian authorities, said in their memorial : " For several
years past, a lamentable waste of crops already harvested has
occurred in consequence of the inability of the railways and canals
leading to the sea-board to take off the excess. The North-west
seems already to have arrived at a point of production beyond any
possible capacity for transportation which can be provided, except
by the great natural outlets. It lias for two successive years

crowded the canals and railways with more than one hundred
4

THE RECIPROCITY TREATY. — PRIZE ESSAY.

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 the country bordering upon the 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 the representatives of Illinois
to be " hostile to American interests." We have not yet succeeded
in affording so much relief as wc could wish to the bursting gran-
aries of the West. Owing to a combination of causes, we only
transported in 1863, 13,300,000 bushels of wheat through the
Welland canal, of which but 3,303,000 passed on down the St.
Lawrence; but even this must have been of great assistance to
Western producers and forwarders. Wc hope, however, soon to
do better than this. We have now but one grain portage railway
connecting Lake Eric with Lake Ontario. Vic hope soon to have
three. Wc contemplate the enlargement of our existing canal.<
and the construction of another to connect the Georgian Bay more
directly with the St. Lawrence, and shall thus endeavor to realize
the ardent hopes of the Great West, '^ whose future prosperity
depends," say the Illinois Commissioners, " upon cheap trans-
portation to foreign markets."' Here, however, it is perhaps
allowable to state that we have not been permitted to rc/ilize the
advantages contemplated by that clause of the Treaty under which
the Government of the United States engaged " to urge upon the
State Governments to secure to the subjects of Her Britinnic
Majesty the use of the several State canals on terms of equality
with the inhabitants of the United States." Although 808,289
tons of American shipping passed through the Welland canal in

(a) The value to the Western Stater, of each additiorml facility for
transportation lannot be over-rated. Each cgpt. per Imshol taken ott' the
cost of carrying their produce to market increases the value of tlieir annual
crop by $6,500,000— they having raised in 18G2, 650,000,000 bushels of
wlieat and corn.

18G
alst
our
the
ben
the
eon
oul

pa?

fit

THE RECIPROCITY TREATY. — PRIZE ESSAY.

other

iasiug

•

1863; agaiust 5-! 1,808 Canadian, (a) the figures for the other canals
also shewing a fair proportion of American craft to be engaged in
our trade, we have not been allowed the slightest participation in
the business done on the American canals. Not the least ol' the
benefits the lake shore cities have derived from the Treaty is, that
they have been able to enter into a direct trade with European
countries, where, indeed, thoy have found a ready market, not
only for their cargoes but oven lor their vent^els. The New York

(u) No. of vessels engaged iu our carrying tr.ide, that is tlie Xo. that
passed up and down oir (.-auals in ISii.'i —

Aniorif'an. Canadian.

Wellaud :!,4V4 ;!,42;->

St. Lawrence 258 10,987

Charably SOS 2,972

Burlington Bay 92 1,555

St. Anns 100 4,941

Ottawa and Rideau 6f> G,933

Tonnage of the above —

American.

Welland 808,289

St. Lawrence 18,140

Cliambly 52,578

Burlington Bay 13,.398

St. Anna G,798

Ottawa and Rideau 4,587

4,79S 30,813

Canadian.
521,808

1,018,163
220,110
227,047
311,475
371,574

903,790 2,070,177

Entrances and clearances at Lake Ports^of the United States from and to
Foreign Countries other than Canada* through the St. Lawrence—

KNTRANCER.

1858-58.
1858-59.
1859-60.
1800-61,
1861-02.
1 802-63,

ei.EAUANOKS.

1856-57
1857-58
1858-59
1859-60
1860-61
1861-62.
1862-63

From Six)

No.

Tons.

• > • • •

887

i • • «

... 2401

10 ...

. . . 3595

s ..,

... 2730

. > , , ,

... 1108

1 ...

3:)4

No.

Tons.

I ...

379

13 ...

... 4354

19 ...

... 0737

5 ...

... 1430

5 ...

... 1791

394

clari/ Chasers Report ^ pa^c 35.

THE RECIPROCITY TREATY. — PRIZE ESSAY,

Legislature assert in their report, that " hope seldom told 4i more
flattering tale than on this subject." But if the expectations of
the^ Americans have not been realized, they must have been
unreasonable. It was not to be expected that this direct trade
should at once assume colossal proportions ; we tind, however, that,
in the years before the war, the entrances and clearances from and
for Europe anmuntod to over 5,000 tons per annum. During the
war, many vt\ssoi.s went from the lakes to the Atlantic to aid in
the blockuije of the Southern ports, and for other purposes ; and
at least three regular lines are now established 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 the Treaty to British subjects to navigate Lake
Michigan, and one can hardly imagine how Cleveland, Detroit,
Toledo, Milwaukee, and Chicago can reconcile themselves to the
idea of being degraded to their old position of inland cities^ to
whos3 craft the Atlantic must be a closed and unknown sea.

This list of the benefits the Treaty has conferred upon the parties
to it, is necessarily but prrtial ; in a few short columns one can
only enumerate the most salient. Surely, however, enough has
been said to prove that a strenuous effort should be made by the
enlightened commercial men on both sides of the frontier to con-
tinue these advantages, which are so lightly being risked by the
American Government, Doubtless there are Americans who think
that the balance of profit, under the Treaty, has been with Canada ;
and they can be met by equally well-informed Canadians who be-
lieve that balance to have been with the United States. But the
question should not be approached in that narrow-minded way.
We should not enquire too closely and too jealously which party
has gained the most, but, seeing the exchanges to be mutually pro-
fitable, we should devise 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 them decide what other articles can be placed
on the free list of a new Reciprocity Treaty ; and, throwing aside

THE RECIPROCITY TREATY. — PRIZE ESSAY.

the exploded fallacy that it is possible for a Government, by im-
posing vexatious duties on all articles of import, to benefit all classes
of its subjects, (a) show that they are imbued witb, and know
how to support, the priociples of a more enlightened political
economy (6).

(a) The demand for other than the "incidental protection," which may
be necesaary to raise revenue and satisfy the public credilor, implies con-
scious weakness — a feeling of which, with our climate, our soil, our geo-
graphical position, our wonderful resources, and the ficknow' iged energy
of our constantly increasing population, we who dwell on this portion of
the Western Hemisphere ought to be ashamed.

(t) Compare Mr. Gait's pamphlet on the Treaty, j). 23 : "Much greater
scope could be given to the Treaty, without compromising ou the one hand
the Revenue interests of the United States, or on the other the just claims
to an equality in the Oanadiaa market, which belongs both of right and
duty to Great Britain. The abolition of the Coasting Laws of both coun-
tries on their inland waters, the free purchase and sale of vessels, and ihe
removal of discrimination on the score of nationality, the extension of the
privilege in both countries of buying foreigp, goodo in bond, or. by return
of drawback, the addition to the free list of all wooden wares, agricultural
implements, machineiy, books, and many other articles peculiarly of
American manufacture, and the assimilation of the Patent Laws — all
these, and many other topics, naturally ofier themselves for consideration.'

To this succinct enumeration we can only add metals in pigs, and crude
petroleum ; but the Boards of Trade of both countries may be able to sug-
geot other additions.