Canada and the States

by Sir E. W. Watkin

"But the 'Alabama' correspondence was also going on, and a new Congress had to sit in 1865. Was it then surprising that on the 17th March, 1865, notice to put an end to the treaty was given?

"But in July, 1865, a convention, already alluded to (see Mr. Bright's letter), composed of delegates from New York, Philadelphia, Baltimore, Cincinnati, St. Louis, Boston, Portland, and in fact from almost every important town and district of the States north of Washington, assembled at Detroit to consider the expiry of the treaty and the question of its renewal. After long and earnest deliberations they unanimously approved the notice given, and as unanimously passed the following resolution for transmission to the Government of the United States:—

"'That the convention do respectfully request the President of the United States to enter into negociations with the Government of Great Britain, having in view the execution of a treaty between the two countries, for reciprocity and commercial intercourse between the United States and the several Provinces of British North America, including British Columbia, the Selkirk Settlement, and Vancouver's Island, upon principles which should be just and equitable to all parties, and which also shall include the free navigation of the St. Lawrence and other rivers of British North America, with such improvements of the rivers, and enlargement of the canals, as shall render them adequate for the requirements of the west communicating with the ocean.'

"At the time of passing this resolution a 'Revenue Commission' was sitting, and its members recommended the Secretary of the Treasury, Mr. McCulloch, to have a special report upon the treaty and its renewal. The task was, thereupon, committed to Mr. E. H. Derby, of Boston. The Commission also includes this subject in their report. Their report (dated January, 1866,) says:—

"'In accordance with the resolutions of Congress and the notification of the Executive, the commercial arrangement known as the "Reciprocity Treaty," under which the trade and commerce between the United States and the British Provinces of North America have been carried on since 1854, expires on the 17th day of March, 1866. The consideration of the effect which the termination of this important commercial arrangement is likely to have upon the revenue, as well as upon the trade and commerce of the United States, has legitimately formed a part of the duties devolving upon the Commission; and has also been especially commended to their attention by the Secretary of the Treasury. The Commission do not, however, propose to present in this connection any review of the history of the treaty, or of the circumstances which, in the opinion of Congress, have rendered its termination expedient. This work has already been performed, under the auspices of the Treasury Department, by E. H. Derby, Esq., of Boston, to whose able and exhaustive report the Commission would refer, without, however, endorsing its conclusions. There are, however, certain points connected with this subject to which the Commission would ask special attention.

"'The first of these is, that during the continuance of the Reciprocity Treaty the trade and commerce between the United States and the British North American Provinces has increased in ten years more than threefold, or from seventeen millions in 1862 to sixty-eight millions in 1864: so that at present, with the exception of Great Britain, the commercial relations between the United States and the British North American Provinces outrank in importance and aggregate annual value those existing between this country and any other foreign state. [Footnote: The value of the import and export trade of the United States with the following countries for the year ending June 30th, 1864, was, according to the Treasury Report, as follows (in round numbers):

Great Britain …………………. $317,000,000
British North America ………….. 68,000,000
Spanish West Indies ……………. 57,000,000
France ……………………….. 29,000,000
Hamburg and Bremen …………….. 29,000,000
Mexico ……………………….. 20,000,000
Brazil ……………………….. 19,000,000
China ………………………… 19,000,000
British West Indies ……………. 12,000,000]

"'It may also, they think, be fairly assumed that taking into consideration the growth of the two countries in population and wealth, (that of Canada for the last ten years having preserved a nearly equal ratio in this respect with that of the United States,) the trade as at present existing is really but in its infancy, and that the future may be expected to develop an increase equally as great as that of the past.

"'A change in the conditions under which a reciprocal commerce of such magnitude is carried on, and is now developing, ought not, therefore, to be made without the most serious consideration.

"'As regards the present treaty, the Commission, as the result of their investigations, have been led to the conclusion that its continuance, under existing circumstances, unless accompanied with certain important modifications, is not desirable on the part of the United States.