With our prosperous example of perfect exemption from all state tariff's fully before their eyes, it is not a little surprising that our neighbors of the British American Colonies should continue such a system. But some in this world either cannot see, or will not see; and so they have to suffer the consequences. With this brief account of the present condition of our commercial relations with the British American Colonies, we now proceed to consider II. The present character and amount of our trade with those colonies. The first report made to our government, on the subject of our trade with the British American Colonies, was ordered, we believe, by the Hon. Mr. Meredith; and the second by Mr. T. Corwin, from which we derive many of the facts and details which are contained in this paper. All of our information regarding trade is derived from custom-house returns; but as these returns are, at best, only approximations, and almost invariably far below the real truth, in respect to values, great allowance must be made in determining from those returns the actual amount of trade. It is stated in Mr. Corwin's report, that if 20 per cent. were added to the custom-house returns, in determining the amount of our trade with the British American Colonies, it would not be too great an addition. It is to be borne in mind that, in this paper, we confine ourselves to the trade of this country alone with the British American Colonies. The trade of this country, by sea, with those colonies, is carried on chiefly by British vessels, owing to our vessels, by the convention of 1830, being restricted only to a certain number of what are called free colonial ports, while British vessels may enter all ports both of the colonies and of this country. The total exports to the colonies, from the United States, in 1840, were $6,100,501, which, in 1850, had increased to $9,549,035, an increase of more than 50 per cent. in ten them only by British vessels, from the sea, or by American vessels from the lakes. The articles imported from the United States into Canada, are: tobacco, sugar, molasses, maize, pork, coal, salt, American manufactures of cotton sheetings and shirtings, warp yarn, wadding, batting, plain and printed calicoes, satinets, woolens, cassimeres, kerseys, leather manufactures, doeskins, machinery, paints, oils, edge tools, agricultural implements, India rubber manufactures; also, large quantities of tea, coffee, and other foreign products, under the drawback law, consisting chiefly of sugars, cigars, dried fruits, wines, hides, and hardware. The exports from Canada to the United States consist of lumber, wheat, flour, vegetables, seeds, ashes, wool, eggs, and coarse grains for distilling. Timber and lumber are, and ever have been, the great staple exports of Canada. The lumber trade of Canada, in 1846, amounted to $6,000,000. Canada now supplies one-third of all the lumber used in the Hudson River markets; and its lumber trade is rapidly increasing. The inland exports of Canada to the United States, in 1848, were about $3,000,000. These inland exports have been materially increased by the late changes in the commercial policy of England by those in the provincial and United States tariffs, and by the United States draw-back law. Of these $3,000,000 of exports, $250,000 worth went to New-York for re-shipment to Great Britain, under the drawback law. The returns of the trade of Canada with this country, for the year ending January 5, 1851, show that the trade is in a highly prosperous condition, and rapidly increasing. They are as follows: Imports from the United States,.. $7,404,800 5,813,500 This shows what certain short-sighted political economists call a "balance of trade" against Canada; but we have no complaints from the Canadians of an " alarming balance of trade," but, on the contrary, the most ample evidence of their rapidly increasing prosperity. It would be a sorry state of af fairs, indeed, if the outgoes were greater than the incomes; or if they only just balanced each other; for, in the former case, a decline of prosperity, a ruinous retrogradation, would be manifest; and in the latter, a miserable unprogressiveness in commercial affairs. The inland trade of Canada with this country has had to contend with the restrictive and unnatural policy of a host of prohi bition laws, passed by the British parliament; together with colonial and United States tariffs, which have, to a great extent, checked it, to the injury of both countries, New-Brunswick.-Next to Canada, our trade with New-Brunswick is the most important. Bordering on Maine, a species of inland traffic exists between Maine and NewBrunswick, on the Upper St. John, and on the St. Croix River, similar to that carried on between Canada and the Americans in the Niagara district. Since the settlement of the north-eastern boundary question, our trade with New-Brunswick has greatly increased. This trade is chiefly in lumber. The lumber trade of the St. John River, on the American territory, has been about $800,000 during the last five years. The staple exports of NewBrunswick are timber, lumber, the produce of its fisheries, coal, asphaltum, gypsum, grindstones, and manganese. Ship-building is also carried on extensively. Large numbers of vessels, of all sizes, are annually built for foreign markets. Ship-building is the staple manufacture of New-Brunswick. It is said that vessels of the same quality, in every respect, as our best, can be built there for two-thirds of the cost in the United States. The entire trade of New-Brunswick with the United States may be stated as follows, for 1850: Imports from the United States,.. $2,000,000 Exports to the United States,. 200,000 Nova Scotia and Cape Breton.-The exports of these colonies are the same as those of New-Brunswick, with the addition of agricultural products. The amount of their trade with this country annually is nearly as follows: Imports from the United States,. $1,800,000 900,000 Ship-building is also extensively carried on in these colonies. In 1849, they manufactured 221 vessels. They have 34 free ports. Newfoundland.-The staple products of this island are furnished by its fisheries, to which may be added its furs and skins from Labrador, and its seal fisheries. The gross amount of exports from this island, in 1849, to all parts of the world, was about $4,000,000. In 1827, our trade with the island was absolutely nothing. It is now nearly as follows: Imports from the United States,. $1,000,000 Exports to the United States, 78,000 Prince Edward's Island.-The products of this island are chiefly agricultural; its chief exports being grains, flour, vegetables, beef, pork, and animals. But little fish is exported. Our trade with this island is very small: Imports from the United States,. Exports to the United States,.. but it is now found, that either from the superior diligence and skill of the Americans, or because the fish bite better at that distance from the shore, the Americans catch more fish than the English. The latter complain bitterly, and annoy the Americans when they can. As the treaty of 1818 does not specify the points from which the three marine miles shall be measured, the English, wishing to push the Americans as far out to sea as possible, contend that the prescribed distance of three miles should be measured from the head-lands, many of which project a long distance into the ocean. This subject has been several times made a matter of negotiation, and is not yet decided. As late as 1845, it was a subject of inquiry on the part of our minister at St. James, Mr. Stevenson, but nothing was done. The legislatures of Nova Scotia, Newfoundland, and Prince Edward's Island, have petitioned the British parliament on the subject, but without relief. Nova Scotia furnishes the largest amount of fish to the United States. In 1849 the quantity sent from Halifax alone to the United States was, of pickled fish. 100.800 barrels, In 1847, Halifax exported hither 124,565 barrels of mackerel, besides large quantities of salmon, herring, and codfish. We will now proceed to consider III. How our trade with the British American Colonies can be improved. The great impediment to our commerce with the British American Colonies is that presented by the present foolish and impolitic commercial enactments and treaties both of England and of this country, to which we should also add the colonial tariffs. If these were all swept away, as they should be, the present trade would be immediately greatly increased, and greatly to the profit, of course, of both countries. The true object of all commercial legislation should be to facilitate commerce; but unfortunately for the world, the progress of trade has always been checked, if not alto. gether stopped, by the ignorant and intermeddling of governments and legislatures. We say ignorant, because a correct underand the laws of trade woutd teach legislators standing of the principles of political economy that all attempts "to regulate trade" tend which they hope to acquire by their legisla only to diminish those very advantages tion. They proceed on the false principle that trade is a thing to be regulated, which is the same thing as saying that there are no The shores of Newfoundland, Prince Ed- natural principles which govern trade, and ward's Island, Cape Breton, and Nova that, therefore, they must be supplied by leScotia, swarm with fishermen, but Ameri- gislation. Ignorance of political economy, and cans are not allowed to fish within three the selfishness and cupidity of nations, have marine miles of the land. Such is the stipu-done more to retard commerce and civilizalation agreed upon, to exist forever, in our tion than all other causes combined. The treaty of 1818 with England. This arrange- laws of trade are just as fixed and unalterment, it was thought by John Bull, would able as those that preside over the motions of effectually guard him against any intrusions; the planetary masses, or that regulate chemi $100,000 6,000 cal affinities; and it is just as absurd to attempt to modify or regulate the former by legislation as the latter. And yet there are legislators in all countries who believe, that Nature's laws, governing trade, are defective and need patching. To such a belief must we ascribe all the present tariff laws and commercial restrictions that exist, for the regulation of the trade between Great Britain and this country; and the entire past history of the commerce of the two nations clearly shows, that if these were all swept away, their commerce would soon attain a degree of prosperity which it never can attain under the present system. Every removal of restrictions on trade has invariably and speedily led to increasing commercial prosperity; whence, we may reasonably infer, that a removal of all restrictions would make our commercial prosperity complete. It was thought a very wise remark of the great Mr. Canning, when he observed, in 1826, that "to allow foreign ships to enter colonial ports is a boon." A boon, indeed! and quite as great a boon to England as to America, although Mr. Canning could not see how. Great as he was, he never learnt the truth, that a perfectly free trade between two countries could not benefit one without equally benefiting the other. It is not less a truth in trade than in physics, that action and re-action are equal. Of the truth of this, the history of commerce furnishes a thousand striking demonstrations. The foolish restrictions imposed upon commerce-and we can call them nothing else but foolish-deprive nations of a thousand mutual advantages, and check and distort the developments of humanity and the progress of civilization. The truth of this remark is illustrated by the character of our present commercial relations with Britain and its colonies. Here, neighboring to us, in the British American Colonies, is a population of 3,000,000 of people, industrious, intelligent, enterprising, and occupying a country of more than 500,000 square miles, with a healthy, invigorating climate, and of the most valuable and superabundant agricultural, mineral, and manufacturing resources. Its facilities for river and lake navigation are unparalleled. It is watered throughout by streams affording an unlimited amount of water-power; its fisheries are the most valuable in the world; its sea-coast is indented with numerous admirable harbors. And to these unsurpassed physical capabilities we mny add a truly vast and imposing system of internal improvements, projected and completed for the purpose of overcoming the natural impediments of the St. Lawrence River and the Falls of Niagara, and thus connecting the ocean with the great western lakes. These vast improvements, by which a vessel of 300 tons burthen, and capable of carrying 3,000 barrels of flour, and of a draft of nine feet water, can now, but for certain enactments of wise legislators, pass from the harbor of Chicago to the ocean, and thence to any part of the globe, reflect the highest credit on the intelligence, industry, and enterprise of the Canadian people, shackled as they are by the policy and nature of a ruling monarchical government 3,000 miles off. The difference between Canada and this country is striking; and we can only ascribe it to the difference in the form of government, for we have abundant evidence that the energies of the Canadians would have made them a very different people, but for their government. To gratify her fondness for "regulating trade" and imposing tariffs, England has ever kept the St. Lawrence, the great outlet of Canadian commerce, closed to all but her own vessels. By thus doing, she has inflicted immense evil upon the Canadas and herself, while she has stimulated the energies of our people to devise means of overcoming the bar to a more free intercourse, interposed by the closing of that river. The trade of the Canadas is a prize for which our people-we do not say our government-have long contended. They have succeeded at last. The Mississippi valley is not the sole abdomen of plenty that the energies and enterprise of our people have subjected to a commercial paracentesis. The operation of "tapping" the Canadas, as well as the Mississippi valley, has engaged the attention of our people for years; and they have at last succeeded in opening no less than six broad channels, through which the wealth of the Canadas is now flowing, namely, -the Erie Canal, the Champlain Canal, the Ogdensburg and Boston, and the Buffalo and Boston rail-roads and the Erie and New-York Rail-road, and the Montreal and Portland rail-roads. These outlets to Canadian and Western trade now render the free navigation of the St. Lawrence, below Montreal, a matter of less moment; and the more so, because the St. Lawrence, even though its navigation were free, is closed by ice for several mouths in the year. There is but one course now left by which our trade with the British American Colonies can be improved, and that is by reciprocal free trade. The Canadian government has generously taken the first step in this important matter, by proposing to our government to establish reciprocal free trade in certain articles, the products of both countries. This is a liberal offer, and we do not see how our government can refuse to accept it. It recommends itself strongly to our best interests, and we cannot reject the offer without withholding from ourselves the highest commercial advantages. Although the subject of reciprocal free trade with Canada has long been agitated, we do not know of a single valid objection that can be raised against it, once the measure has been sanctioned by the United States House of Representatives. It is admitted by all, that the perfectly unrestrained commerce existing between the several states of this Union, has been a very prominent cause of our national prosperity; and from this it is quite natural to infer, that by extending this unrestrained commerce to the British American Colonies, another powerful element of prosperity would be gained. Canada is now willing to withdraw her part of the restrictions; and it now remains for us to say, whether we will deny ourselves the immense advantages that would result to us from a free intercourse with our colonial neighbors. Such an arrangement would make our trade with the British American Colonies only a portion of our home internal trade; and it is admitted, by all political economists, that the home trade of a country is vastly more important than its foreign. This is true, at least of our own country; for our internal trade averages $92 for each individual of our population, while our foreign trade is only $7 for each individual. Even under the present unnatural restrictive system, the latest returns show that we export more of our domestic manufactures to Canada alone than to any other country. Our exports to Canada alone, in 1850, were equal to the whole amount exported to Sweden, Prussia, Holland, Portugal and Mexico. Such are the advantages which our great Atlantic cities would afford to the colonial merchants for trade, if the existing tariff restrictions were removed, that the system, heretofore pursued by them, of importing direct from foreign ports, would be abandoned, and they would make all their purchases in our cities. Under our present tariff, however, of 20 per cent., they cannot do this, since the high duties prevent them from exchanging, in our markets, their products for ours. If they buy now in our Atlantic cities. it is only by bank drafts, specie, or their equivalents; but this causes such a drain upon their banks, that their trade with us is very much embarrassed and limited. If we would have the 3,000,000 of our British colonial neighbors trade with us, we must allow them to bring their products into our markets, without paying a duty of 20 per cent., which duty at present amounts to a prohibition. It also leads to a vast deal of smuggling along our entire and extensive northern frontier. It is highly probable, that the amount of goods annually smuggled from both countries across the line, is nearly, if not quite equal to the amount which pays duty; for the frontier is so extensive, and the population so dense, on both sides, that it would require an army of custom-house officers and a fleet of revenue cutters to prevent it. Smuggling is called "a demorali zing traffic;" but as the right of trade is a natural right, and as smuggling is only the natural means of asserting this natural right, it may well be questioned, whether it is not rather the tariff which is "demoralizing," than the business of smuggling. Be this as it may, it is certain that high duties operate as a bounty for smugglers. Mr. J. D. Andrews, the United States Consul at Saint John, NewBrunswick, in his very able report to our government, on the trade, commerce, and resources of the British North American Colonies, from which we take many of the facts contained in this paper, very significantly observes, in speaking of "the necessity of a thorough remodeling of our lakeport custom-houses," as follows: "To one fact I deem it my duty specially to call your attention, viz.: the practice, in several inland ports, for each collector, on retiring from office, to carry away with him the books and accounts, on the plen, that having paid for the stationery from his private funds, they are private property, the govern ment not making any allowance for this item of public expenditure." Undoubtedly these "books and accounts," if suffered to see the light, would tell a tale! They would illustrate, in a most striking manner, the "demoralizing effects" of tariff's upon custom-house officers and others. The entire line of our northern frontier, including Lake Champlain, open for smuggling and bribery of custom-house officers, is nearly 5,000 miles in length. The system of reciprocal free trade, proposed by the Canadians, is not subject to the objections made to a transatlantic free trade by the friends of protective tariffs. The American protective policy is defended mainly on the ground that we should be protected against the advantages which the European manufacturer has over us, in the abundance and cheapness of his capital and labor; and that we should be relieved from the fluctuations of foreign trade. But none of these reasons will justify a tariff to protect us against colonial producers or manufacturers; for they have not the advantage over us of more abundant and cheaper capital and labor. The prices of labor in the British American Colonies are nearly if not quite as high as in this country. What we want most is a free outlet for our surplus products. It would be easy to refute the many frivolous objects which the advocates of protec tive tariffs make to reciprocal free trade with Canada, and the other British colonies. We will only say, that, in considering large commercial questions, it is quite unworthy of a great nation to enter into petty calculations of the advantages it gives and takes in trade. The enlightened and liberal views of Mr. Pitt, in 1782, who contended for an "equal and honest reciprocity" in trade between the two countries, are the only ones worthy of a great nation like ours. In return for this reciprocity of trade with us, Canada proposes to open the navigation and easily take the shortest route. This of the St. Lawrence. This would certainly route, too, would have an advantage over all be a valuable acquisition to us, as is proved others, derived from climate and latitude. by the numerous petitions of our citizens in The pork, bacon, lard, and flour, of the Mis Michigan, Wisconsin, Indiana, Ohio, and sissippi valley, would escape the injurious New-York, (who certainly are the best heat of other routes, by taking that of the St. judges,) presented to Congress, praying for Lawrence. the adoption of measures to have that river opened to the shipping of the lakes. If there was no advantage in having that river opened, such petitions would not appear in Congress. Although the artificial outlets to the upper lakes and Canadian commerce are numerous, yet the St. Lawrence has some important advantages over these. If the navigation of that river was free, all our shipping on all the lakes, from Chicago to Oswego, could pass down to the ocean with full cargoes. The St. Lawrence is to the North and West, what the Mississippi is to the South and West. The St. Lawrence has a course of 1800 miles, and drains a basin of 1,000,000 of square miles. It is the natural outlet of Michigan, a portion of Wisconsin, Illinois and Indiana, of northern Ohio, northern Pennsylvania, northern and western New-York, and of western Vermont-a vast district of country, comprising the principal portion of the wheat-growing region of the United States. According to Mr. Buel's able report on the free navigation of the St. Lawrence, the trade in wheat in this vast region, in 1841, amounted to 2,780,000 bushels. In 1847 it had risen to 10,688,514, an increase of 17 per cent. per annum. If this same rate of increase were to continue till 1857, the value of the wheat, then, in the valley of the St. Lawrence, at the present prices, would be over $170,000,000. As commerce always seeks the shortest routes, it may be interesting to consider the advantages which the free navigation of the St. Lawrence would afford in this respect. A glance at the map will show that the shortest route to Europe, from the heart of North America, is by this river. The shortest route from New-Orleans to Liverpool is up the Mississippi and Ohio to Pittsburgh, and thence to Lake Erie, and down the St. Lawrence. The route to Europe, from all the lake-ports, by way of the St. Lawrence, is several hundred miles nearer than by any other route. This is one important advantage to our north-western trade, which, added to there being no unloading of cargoes in the whole route, renders the free navigation of the St. Lawrence a matter highly desirable to the North-west. If the St. Lawrence was open to our vessels, it is highly probable that vast quantities of the products of the Mississippi valley would find their way to Europe by that route; for when once on shipboard at Chicago, or at other lake ports, it would naturally Another important advantage to be derived from the opening of the St. Lawrence would be, that the vast amount of shipping that is kept idle during the long winters in the lakes, by the ice, could pass down to the ocean, on the approach of winter, and be profitably employed on the ocean. It is to be hoped that the present session of Congress will take some action on this important subject: for it is one not only of vital importance in a commercial point of view, but also one nearly connected with the maintenance of our present friendly relations with Great Britain. It would be a digression, not contemplated when we commenced this paper, to view our subject in respect to our relation of amity with Great Britain, and we shall, therefore, make but this short allusion to it. In less than a quarter of a century, the population of the great North-west will count millions, where it now counts tens of thousands; and then they will feel more than ever the importance to them of the St. Lawrence, as their natural outlet to the ocean; and they will then begin to regard the free navigation of that river as a "natural right," which, if not peaceably granted, might be forcibly taken. We will conclude this paper by a brief observation on the present indications of public sentiment in Canada, regarding the opening of the St. Lawrence. From certain movements in Montreal and Quebec, it would appear, that the refusal of our government to reciprocate the liberal policy of the Canadian government, would lead to the immediate adoption, by the latter, of measures of retali ation. The tardy movements of our government have already aroused the merchants of Montreal and Quebec, who advocate, in common with the manufacturers of England, the imposition of differential duties against American manufactures. This would probably be the first retaliatory act; and the second would be the closing of all the Canadian canals, now so extensively and profitably used by our lake commerce. It must be admitted, that the offer of the Canadians to establish a system of free trade with us, and to open the St. Lawrence, is highly liberal; and when it is considered that the average Canadian duties on our products is only 12 per cent., while ours on their products is 23 per cent., it would seem that our government could not, with any show of liberality and grace, refuse reciprocation, in view, too, of the many advantages our trade would derive from it, and the loud call for it from so many of our citizens. |