Dr. James Hector, and all the explorers, agree in their descriptions of this region. It is difficult to reach; but is it so difficult to reach as the shores of America itself were, 300, or 200, or 100 years ago? We cannot conceive what a century has done in America, or at home. How little, then, can we conjecture what the next fifty years will effect in these distant lands! The map, which now is crowded with the names of cities where red men roamed in terra incognita so recently as the beginning of this century, should reprove any incredulity. The nations are like water. When a country is filled above its capacity, its surplus overflows. As soon as all the eligible districts of Canada are occupied, the streams of settlers will pour westwards; tracks and roads will be made; and, if the land be good, it will soon be filled with people. As to the great regions which lie to the west, and open on the Pacific, it can only be said that they are to us what California was to the United States on the first discovery of gold; and that after fifty years they may be less than California is now, if steps be not taken to bind them up with British interests, and to oppose the Americanisation with which they are threatened. Without reference to the Far West, or the Far North-West,—without regard to the Red River and Assiniboia or to British Columbia, there is before us the great fact, that out of the Canadas, and the British North American Provinces and dependencies, can be created a powerful Confederation attached to this country, and capable of the grandest development in spite of climatic influences. We have already given a slight sketch of the extent and capability of these provinces, and hinted at the difficulties that may arise in the working of the Confederation. Canada is now more than threatened with the loss of the advantages which were supposed to depend on the Reciprocity Treaty, and Great Britain is formally warned that she must prepare to meet Federal encroachments on the Lakes. Mr. Galt, in a very elaborate speech, exhaustive of the topics connected with the financial aspect of the future Confederation, lately laid before his hearers a series of calculations which deserve close attention, and which are, we believe, entitled to full confidence. The United States at the end of the year 1865 will either have effected the subjugation of the South by the destruction of all her armies in the field, or she will see an increase to her debt of at least forty millions sterling, or she will have arranged a compromise with the South of which one feature will be the assumption of the Southern debt. In the first case, the North must prepare for a long and costly military occupation. In no case as yet have the trade and commerce of any Southern port or city subjugated and held by Union troops, paid the Federal Government for the cost of holding it. In the second case, increase of taxation must fall with such a crushing weight on the poorer classes, especially in the agricultural States, as to force many of the people to take refuge in Canada, unless deterred by unforeseen obstacles. In the third case, the immediate result will be to throw on the Northern States for some considerable period, a greater amount of debt, and of consequent derangement, than they would have been subjected to by either of the preceding conditions. There can be no just comparison between the United States and the projected Confederation, except in the ratio of taxation per capita. And, if we take income, expenditure, and possible debt at the end of 1865, and contrast the financial position of the British Confederate with that of the American Federalist, we will find that the advantage is decidedly on the side of the latter.

According to the Hon. A. T. Galt, the following is a fair statement of the revenue and expenditure of the provinces, of the debts and liabilities, of the trade exports and imports, and of all the assets and demands by which the future Confederation would be influenced, excluding of course the cost of such undertakings as great intercolonial roads or enlargements of canals. Mr. Galt may not be a favourite with some theorists of the Colonial Office; he certainly is not popular at Washington, and he is not more honoured at home than most prophets, but he is an able, clear-headed, trustworthy man:—

THE FINANCIAL POSITION OF THE PROVINCES.
Debt, 1863.Income, 1863.Outlay, 1863.
Nova Scotia$4,858,547$1,185,629$1,072,274
New Brunswick5,702,991899,991884,613
Newfoundland (1862)946,000480,000479,420
Prince Edward Island240,673197,384171,718
———————————————
Maritime Provinces$11,748,211$2,763,004$2,608,025
Canada67,263,9949,760,31610,742,807
———————————————
Totals$79,012,205$12,523,320$13,350,832
INCREASED REVENUES IN 1864.
Canada, without the produce of the new taxes$1,500,000
New Brunswick100,000
Nova Scotia100,000
————
$1,700,000
Deficit of 1863$827,512
Surplus of 1864872,488
————
$1,700,000
Total Revenues of all the Colonies, 1864$14,223,320
Outlay13,350,832
————
Estimated Surplus$872,488
THE POSITION OF THE CONFEDERATION, ESTIMATED ON THE BASIS OF 1864.
Revenue now produced for General Government.Local Revenues which would not go into the general Chest.Subsidy to be paid to each Province.Difference, available for the purposes of the Genl. Government.
Canada$11,250,000$1,297,043$2,006,121
Nova Scotia1,300,000107,000264,000
New Brunswick1,000,00089,000264,000
Prince Edward Island200,00032,000153,728
Newfoundland480,0005,000369,000
—————————————
$14,230,000$1,530,043$3,056,849$9,643,108
Expenditure.Local Outlay.Difference payable by the Genl. Government.
Canada$9,800,000$2,260,149
Nova Scotia1,222,555667,000
New Brunswick834,518424,047
Prince Edward Island171,718124,016
Newfoundland479,000479,000
————————
$12,507,591$3,954,212$8,553,379
————
Surplus at the disposal of the General Government$1,089,729
AVERAGE OF THE PRESENT TARIFFS.
Canada20 per cent.Newfoundland11 per cent
Nova Scotia10 ”Prince Edward Island10 ”
New Brunswick15½ ”