[20] Toronto Globe, January 25th, 1858.
CHAPTER XXII
THE RECIPROCITY TREATY OF 1874
Mr. Brown's position in regard to reciprocity has already been described. He set a high value upon the American market for Canadian products, and as early as 1863 he had urged the government of that day to prepare for the renewal of the treaty. He resigned from the coalition ministry, because, to use his own words, "I felt very strongly that though we in Canada derived great advantage from the treaty of 1854, the American people derived still greater advantage from it. I had no objection to that, and was quite ready to renew the old treaty, or even to extend it largely on fair terms of reciprocity. But I was not willing to ask for a renewal as a favour to Canada; I was not willing to offer special inducements for renewal without fair concessions in return; I was not willing that the canals and inland waters of Canada should be made the joint property of the United States and Canada and be maintained at their joint expense; I was not willing that the custom and excise duty of Canada should be assimilated to the prohibitory rates of the United States; and very especially was I unwilling that any such arrangement should be entered into with the United States, dependent on the frail tenure of reciprocal legislation, repealable at any moment at the caprice of either party." Unless a fair treaty for a definite term of years could be obtained, he thought it better that each country should take its own course and that Canada should seek new channels of trade.
The negotiations of 1866 failed, mainly because under the American offer, "the most important provisions of the expiring treaty, relating to the free interchange of the products of the two countries, were entirely set aside, and the duties proposed to be levied were almost prohibitory in their character." The free-list offered by the United States reads like a diplomatic joke: "burr-millstones, rags, fire-wood, grindstones, plaster and gypsum." The real bar in this and subsequent negotiations, was the unwillingness of the Americans to enter into any kind of arrangement for extended trade. They did not want to break in upon their system of protection, and they did not set a high value on access to the Canadian market. In most of the negotiations, the Americans are found trying to drive the best possible bargain in regard to the Canadian fisheries and canals, and fighting shy of reciprocity in trade. They considered that a free exchange of natural products would be far more beneficial to Canada than to the United States. As time went on, they began to perceive the advantages of the Canadian market for American manufactures. But when this was apparent, Canadian feeling, which had hitherto been unanimous for reciprocity, began to show a cleavage, which was sharply defined in the discussion preceding the election of 1891. Reciprocity in manufactures was opposed, because of the competition to which it would expose Canadian industries, and because it was difficult to arrange it without assimilating the duties of the two countries and discriminating against British imports into Canada.
In earlier years, however, even the inclusion of manufactures in the treaty of reciprocity was an inducement by which the Americans set little store. The rejected offer made by Canada in 1869, about the exact terms of which doubt exists, included a list of manufactures. In 1871 the American government declined to consider an offer to renew the treaty of 1854 in return for access to the deep sea fisheries of Canada. The Brown Treaty of 1874, which contained a list of manufactures, was rejected at Washington, while in Canada it was criticized as striking a blow at the infant manufactures of the country.
The Brown mission of 1874 was a direct result of the Treaty of Washington. Under that treaty there was to be an arbitration to determine the value of the American use of the Canadian inshore fisheries for twelve years, in excess of the value of the concessions made by the United States. Before the fall of the Macdonald government, Mr. Rothery, registrar of the High Court of Admiralty in England, arrived in Canada as the agent of the British government to prepare the Canadian case for arbitration. In passing through Toronto Mr. Rothery spoke to several public men with a view to acquiring information as to the value of the fisheries. Mr. Brown availed himself of that opportunity to suggest to him that a treaty of reciprocity in trade would be a far better compensation to Canada than a cash payment. Mr. Rothery carried this proposal to Washington, where it was received with some favour.
Meantime the Mackenzie government had been moving in the matter, and in February 1874, Mr. Brown was informed that there was a movement at Washington for the renewal of the old reciprocity treaty, and was asked to make an unofficial visit to that city and estimate the chances of success. On February 12th, he wrote: "We know as yet of but few men who are bitterly against us. I saw General Butler, at his request, on the subject, and I understand he will support us. Charles Sumner is heart and hand with us, and is most kind to me personally." On February 14th, he expressed his belief that if a bill for the renewal of the reciprocity treaty could be submitted to congress at once, it would be carried.