Canada and the States

by Sir E. W. Watkin

"'He had only to report what was stated by the noble lord the other night, that there were no papers on the subject of the Reciprocity Treaty; as the hon. gentleman was aware, no notice with respect to the treaty had been given to Her Majesty's Government. Resolutions on the subject had been submitted to Congress, but there had been no intimation given to Her Majesty's Government, consequently, there were really no papers to lay on the table.'

"Thus we have it on the direct declaration of the organ of the Government, that no negociations were undertaken having any reference to the retention or renewal of the treaty up to the 23rd May, 1864; and that there were no 'papers' even in the possession of the Government up to the 17th February, 1865, bearing upon so momentous an international question.

"The Bonding Act, or Acts, are above alluded to; and it will be well here to state, that under these Acts of the Congress of the United States, goods liable to United States duties may be sent in bond through United States territory into and through Canada or New Brunswick. In fact, but for this privilege, Canada would be, under present circumstances, shut out for the five months of her winter from access to Europe. That access could, of course, be given by the construction of the remaining links of the 'Inter-colonial' Railway (about 360 miles), connecting Halifax, Nova Scotia, with Quebec and the Canadian railway system; but pending such construction, it is in the power of the United States thus to isolate Canada. Being in their power, we may ask, What is their intention? and we may ask, What have the Government done to ascertain the one and prevent the other? Have they ever thought of danger? Certainly, in May, 1864, both Mr. Cardwell, the Colonial Secretary, and Mr. Layard, the Undersecretary for Foreign Affairs, were puzzled to know what was meant by the 'Bonding Acts.'

"Particulars of these Acts are given in a note below. [Endnote 2]

"We must now briefly sketch the history of the discussions and events which more immediately preceded the notice of the 17th March, 1865, given by the United States Government and Senate, to put an end to the treaty. Subsequent to the treaty (1854) Great Britain (1859) founded the Colonies of British Columbia and Vancouver's Island on the North Pacific. For this we are indebted to the then colonial minister, Sir E. Bulwer Lytton. The first gave a new gold field; the second contains all the bituminous coal to be found on the west side of the great North American Continent. These new countries were not embraced in the operation of the treaty; nor does it seem that after Sir E. Bulwer Lytton left office, any effort was made to enlarge the operations of the treaty. But of course American commerce was anxious to extend itself, and Californian and American cruisers in the Pacific wanted the coal of Vancouver. Hence a party in the States was formed for an extension of the area of the treaty. Then Canada, having established her railway system by the aid of British capital, and having expended large sums to promote public works generally, got into debt and had to raise her taxation; and as import duties are, and must always be, most easy of collection in a new country, and the most popular, or rather the least unpopular, mode of taxation, she raised her import duties generally to a scale as high on many articles, if not higher, than the import duties of the United States. This led to complaint; and hence a party was formed in the United States for an extension of the 'free list,' or list of articles to be admitted duty free into Canada. It is but fair to bear in mind that the Canadian import duties on United States goods were the same as those on British goods; so that whatever ground of complaint might be set up, Great Britain had the right to the largest share of it, because she had the ocean freights to add to the duty, and pro tanto was at a disadvantage in competing for Canadian custom with the manufacturers of the States.

"In 1861 the Chamber of Commerce of New York moved Congress on the whole subject. Their object was the extension of the area and purposes of the treaty: in no sense its termination. Congress, hereupon, referred the matter to the 'Committee on Commerce,' Mr. Ward being chairman. That committee reported in February, 1862, in a most able document, usually known as Mr. Ward's report. This report also recommended a more extended area, and more extended purposes; but in no sense the abrogation of the treaty.

In March, 1864, Mr. Ward proposed a resolution in Congress for the appointment of commissioners to negociate an extended and improved treaty with Great Britain. That resolution was laid over by Congress till December, 1864. In the summer and autumn of 1864 a correspondence sprang up between Earl Russell, Mr. Seward, Mr. Adams and others in reference to the dangers of the invasion of the territory of the United States by Confederate agents asylumed in Canada. Mr. Seward and Mr. Adams strongly urged that preventive measures should be taken by Great Britain, but Earl Russell could not see it—did nothing, and the burning of United States steamers engaged in peaceful commerce, and the robbery and murders at St. Albans and Vermont followed. Correspondence in reference to the 'St. Albans' raids' was laid before Parliament last year. The following is an extract, bearing, too, indirectly upon the Reciprocity Treaty, from one of the letters of Mr. Adams, United States Ambassador in London, to Earl Russell, echoing a despatch of Mr. Seward's and dated November 23rd, 1864:—

'In the use of the word exigency, the full sense of its effect is perfectly understood. The welfare and prosperity of the neighbouring British Provinces are as sincerely desired on our part as they can be by Great Britain. In a practical sense they are sources of wealth and influence for the one country only in a less degree than for the other, though the jurisdiction appertain only to the latter. That this is the sincere conviction of my Government has been proved by its consent to enter into relations of reciprocal free commerce with them almost as intimate as those which prevail between the several States of the Union themselves. Thus far the disposition has been to remain content with those relations under any and all circumstances, and that disposition will doubtless continue, provided always that the amity be reciprocated, and that the peace and harmony on the border, indispensable to its existence, be firmly secured. The fulfilment of that obligation must be, however, as your Lordship cannot fail to perceive at a glance, the essential and paramount condition of the preservation of the compact. Even were my Government to profess its satisfaction with less, it must be apparent that by the very force of circumstances peace could scarcely be expected to continue long in a region where no adequate security should be afforded to the inhabitants against mutual aggression and reprisal.

'Political agitation, terminating at times in civil strife, is shown by experience to be incident to the lot of mankind, however combined in society. Neither is an evil confined to any particular region or race. It has happened heretofore in Canada, and what is now a scourge afflicting the United States may be likely at some time or other to re- visit her. In view of these very obvious possibilities, I am instructed to submit to Her Majesty's Government the question whether it would not be the part of wisdom to establish such a system of repression now as might prove a rock of safety for the rapidly multiplying population of both countries for all future time.

"'I pray, &c.,
"'(Signed) CHARLES FRANCIS ADAMS.'