Connected with this important subject of the free navigation of the St. Lawrence west of Quebec, which the Americans were desirous of procuring, a corresponding desire prevailed on the part of the Canadian farmers to avail themselves of the American home market, whenever it offered superior prices to those derived from exportation to Europe. The price of wheat and flour in the Eastern States, required for home consumption, was often much higher than the price in Canada for exportation, and when this happened, it would obviously have been greatly to the advantage of the Canadian agriculturist if he could have exported his produce to the United States. This he was prevented from doing by a protective duty of a quarter of a dollar per bushel upon wheat. Efforts had been made in the United States to abolish this duty; but the advocates of its abolition were constantly defeated by the Protection cries of the American farmers, or by a difficulty as to the “most favoured” nation-clause in treaties with Foreign Powers, the more so, as a relaxation in favour of Canada was, naturally, capable of extension to any or all nations with whom the United States had such treaties subsisting. Here is a clear instance how commercial treaties, even of a liberal character, become as much “entangling alliances” as the political conventions of “amity and friendship” have so frequently been. Indeed, the “favoured” nation-clause, however well intended and beneficial in the highest degree in certain cases, has often been a source of dispute to those States who either have accepted or enforced it, and, even more so, to those countries which have been compelled to adopt it. The interests of great nations vary so much at different periods that inflexible rules in politics or commerce must frequently operate very prejudicially, and cannot be maintained with entire consistency for the true interests of the commonwealth.
Negotiations proposed.
It was thought that if the free navigation of the St. Lawrence were offered to the American Government in return for the abolition of the protecting duty, one measure to be co-existent with the other, Congress would be inclined to abolish the protective duty; while the abolition, being a matter of reciprocal arrangement, all difficulty arising from the commercial relations of the United States with foreign countries might thus be avoided.
Canadians urge the abolition of Protection.
The more advanced section of the Free-trade party of Canada pressed this proposal on the executive government, together with the abolition of all protection conferred by the Navigation Laws, which it was asserted was, after all, purely nominal, and only to secure other advantages. They pronounced the so-called Protection to be in its effects upon Canada practically mischievous, contending that, if the trade was nearer from Canadian waters to the canals and ports of the United States, British shipowners would have to compete with foreigners in the ports of that country; that, if they could do this successfully there, they could do so in the Canadian ports; but if not, under existing circumstances, the trade of Canada could not afford to maintain a mere legal monopoly: moreover, if the supposed Protection only led to the desertion of the cities and sea-ports of Canada, without subserving the interests of British shipowners, it was hoped that useless restrictions, irreconcilable with the withdrawal of protective duties in the United States in favour of Canadian produce, would be at once removed.
Views of Western Canada.
The Canadians could not indeed fail to perceive, when the question was raised in the mother-country, that a great portion of the exportable produce of Western Canada, probably by far the greater part, was at that very moment on its way to ports in the United States; that little was expected at Montreal; that the canals constructed on the St. Lawrence were almost idle; that importing ships coming to Montreal were without their usual full freight; that the principal importations into Western Canada were effected through the United States; and that the trade of the city of Montreal was in consequence rapidly decreasing. On the other hand, they observed the greatly-increasing consumption and importation into their country of articles formerly imported wholly through that port. Hence they inferred, that the opening of Canadian sea-ports to vessels of all nations, with permission to send colonial produce to England in any vessels, as well as the opening the River St. Lawrence above Quebec to Americans, would probably restore trade to its original channel, and increase the commerce and revenues of Canada beyond precedent.
Canadians really only for partial Free-trade.
Such were the hopes entertained by the Canadians of a modification in the restrictive system. But even the boldest of their Free-traders shrunk for a time from the notion of an unconditional surrender of the natural advantages the navigation of the St. Lawrence conferred upon Canada. Hence they proposed to themselves to reserve their full rights, and confined their advocacy to such changes in the law relating to navigating the St. Lawrence above Quebec as would enable them to make terms with the Americans. They had then no idea of throwing open to foreigners generally the use of their great rivers without an ample equivalent: they contented themselves with asking for powers from the Imperial Legislature to enable them to negotiate from time to time on the subject, and to make the navigation of the river a matter of treaty and regulation; preserving their own sovereignty, with power to resume the exclusive use of it at the conclusion of any agreement.
Improvements of their internal navigation.