Canada and the States Part 25

The "Observer," referring to this speech, made the following remarks:--

"There is a great disadvantage in bringing any important question before the House of Commons at a late hour of the night, because in such a case it is impossible, arising from the exigencies of the morning papers, that full justice can be done by the parliamentary reporters to the speech of the speaker. An ill.u.s.tration, of this occurred on Friday evening. Mr. Watkin, in moving for papers respecting the Reciprocity Treaty between the United States and the British North American Provinces, entered at considerable length and with great ability into that important subject. His speech will be found in another part of our impression. It would not be easy to overrate the importance of the interests to this country involved in the question which Mr. Watkin so lucidly brought before the House. He showed that under the operation of the existing treaty British trading interests to the extent of 10,000,000_l_. per annum were involved. This is no inconsiderable sum. a.s.suredly it is much too large to be heedlessly sacrificed if means can be found consistent with the honour of the country to prevent it. And yet, notwithstanding the great and manifest importance of the subject, and though the United States have given notice of their intention to terminate the treaty in twelve months from the present time, it would appear that no steps have yet been taken on the part of the Imperial Government to avert the evils of which the termination of that treaty would be productive to the British North American Provinces, and through them to the Mother Country; for, apart from the stoppage that would ensue to the international trade now existing between the States and Canada and her sister provinces, the old vexed question as to the right of Americans to partic.i.p.ate in the fisheries in the Gulf of the St. Lawrence, along a sh.o.r.e upwards of 1,500 miles in length, is again raised. To call attention to these facts was the main object of Mr. Watkin's speech. He had no wish to embara.s.s the Government in any way, but was simply desirous of impressing on it the importance of early action in the matter, with the view to the preservation or modification of the Reciprocity Treaty. It is to be hoped, now the matter has been so fully and ably brought before the British Government, that steps will be immediately taken to enter into such negotiations with the United States as will secure this desirable result. If this were done, we cannot doubt that the Government of the United States will respond in a friendly spirit to the wishes of our own Government, and that not only the best results will follow as regards the treaty in question, but also as regards the general commercial relations between the United States, the British North American Provinces, and this country."

I felt so strongly that great opportunities had been lost owing to the negligence and incapacity of our rulers, that I drew up and widely circulated, various memoranda, intended to inform public opinion in England. I felt convinced that, if once this wise and fraternal treaty were allowed to expire, the future relations of the British Provinces and Canada must gravitate towards antagonism, or towards annexation. My forebodings are, at this moment, justified by the action of the United States Congress in the matter of the fisheries. Because Canada has enforced the provisions of the, still existing, and recognized, Treaty of 1818, the Congress of the United States has, in 1887, by statute, instructed the President to put in operation odious "reprisals"-- reprisals which throw the "Milan Decrees" of the first Napoleon into the shade of barbarism. The President, believed to be an enlightened man, threatens to put his powers into strict operation. If he goes to the full length of this unique enactment, he may practically close all industrial, and even social, intercourse between the British territory --a territory larger in area than that over which he rules--and the United States. Such legislation, so eagerly acted on, is simply sickening. Talk of fraternity and liberty for all mankind. Delusion --mockery.

A concise _resume_ of this question, written by me in 1865, here follows:--

"A treaty of amity and commerce between Great Britain and the United States of America, known as the 'Reciprocity Treaty,' [Endnote 1] has been allowed to expire with the expiry of the twelve months' notice, given on the 17th March, 1865, by the Government at Was.h.i.+ngton, under the authority of the Senate.

"No explanation has been given to Parliament; nor has a single paper of any kind been laid upon the table of the House by Her Majesty's Government. It is, therefore, thought to be time to ask for explanations, and thereby, so far as may now be possible, to prevent that gradual 'drifting' into serious complication which disfigured the transactions of the Whig Government in 1854 (Russian war), in 1861-2 (Poland), and in 1863-4 (Denmark). The Reciprocity Treaty provided not merely for free interchange of commodities between Her Majesty's North American Colonies and the United States, but it settled the fishery complications, on a coast line of 4,000 miles, and provided for the international navigation of the St. Lawrence (1,200 miles), and of the ca.n.a.ls and locks of that mighty river, and of Lake Michigan and its tributaries. It thus dealt with questions which, unsettled and in doubt, had led to antagonism and the recurring danger of war; and, in the twelve years of its existence, its operation has alike enlarged the commerce and the friends.h.i.+p of the neighbouring subjects of the two powers parties to the treaty. Perhaps no convention of modern times has more tended to produce material prosperity and peace and goodwill amongst those concerned. But it has been, it is repeated, allowed to expire, and, as will be shown, owing mainly to the culpable negligence and maladroit management of those who have had charge of British interests.

"On the 27th June, 1854, Lord Clarendon said in the House of Lords, in answer to a question put by Lord Fitzwilliam (see 'Hansard's Debates,'

27th June, 1854):--

"'It appeared to Her Majesty's Government that the return of Lord Elgin to Canada afforded an opportunity which ought not to be neglected, of endeavouring to settle those numerous questions which for years past have been embarra.s.sing the two Governments. One of those questions especially, that relating to the fisheries, has given rise to annually increasing causes of contention, and has sometimes threatened collisions, which, I believe, have only been averted for the last two years by the firmness and moderation of Sir George Seymour and of the British and American naval commanders, and by that spirit of friends.h.i.+p and forbearance which has always characterized the officers of both navies. But, my Lords, your Lords.h.i.+ps are aware that there are other questions which have given rise to embarra.s.sing discussion between the Governments of the two countries--questions which involve the commercial relations of our North American possessions with the United States, and that those questions, which involve very divergent interests, have become so complicated as to render their solution a matter of extreme difficulty.' And he added, 'I trust, therefore, that nothing will occur to mar the completion of this great work, which, I firmly believe, more than any other event of recent times, will contribute to remove all differences between two countries, whose similarity of language and affinity of race, whose enterprise and industry, ought to unite them in the bonds of cordial friends.h.i.+p, and to perpetuate feelings of mutual confidence and goodwill.'

"In the conversation which ensued all parties coincided as to the vast importance of the treaty, and Lord Derby, while doing so, took the opportunity of insisting that Her Majesty's Government should keep such treaty negociations affecting the whole Empire in their own hands, and not permit them to be dependent upon the will or consent of the local authorities. He said (see 'Hansard,' 1854):--

"'He was afraid that if we had to consult the Colonies, with respect to a treaty with a foreign country, the effect would be that in such questions the Colonies would be independent.'

"It is well specially here to note, that the Government of that day, speaking by Lord Clarendon, considered it as a condition, that the person highest in dignity, authority, and ability should be selected as the fittest negociator; and that Lord Derby gave a caution which all who regard the British Empire as 'one and indivisible,' must coincide in. It will be seen hereafter how, in the present case, the actual Government has departed from both the condition and the caution.

"An extract from a letter from Mr. John Bright, M.P., to Mr. Joseph Aspinall, of Detroit, Michigan, in response to an invitation to attend the Reciprocity Convention, held last year, will ill.u.s.trate the benevolent idea of the treaty, and exhibit the opinion of a distinguished admirer of the United States upon the renewal of the instrument. The letter, itself, is dated London, 10th June, 1865. 'The project of your convention gives me great pleasure. I hope it will lead to a renewal of commercial intercourse with the British North American Provinces, _for it will be a miserable thing_ if, because they are in connection with the British Crown, and you acknowledge as your Chief Magistrate your President at Was.h.i.+ngton, there should not be _a commercial intercourse between them and you, as free as if you were one people, living under one Government_.'

"To make 'one people,' though living under two separate Governments, was the great, and has been the successful, object of Lord Elgin and Mr. Marcy. But the 'miserable thing' has happened, and the treaty is at an end.

"On the 23rd May, 1864, I put a question on the subject of the renewal of this treaty. The question and the answer of the Under-Secretary for Foreign Affairs were as follows:--

[_From_ "HANSARD," _Monday, May 2nd, 1864_.]

"'Mr. Watkin said he wished to ask the Undersecretary of State for Foreign Affairs to state the present position of negociations with the Government of the United States in reference to the proposed termination or repeal by the United States of the "Reciprocity Treaty,"

and of the "Bonding Act," under which instruments facilities for mutual commercial interchange have been afforded, and a large and increasing trade has grown up with the colonies of British North America?

"'Mr. Layard, in reply, said there were no negociations pending with regard to the suspension or repeal of the Reciprocity Treaty, and the Government had received no official information upon the subject of the "Bonding Acts."'

"On the 17th February, 1865, I again called attention to the question becoming more and more urgent, by moving for 'Copies of all papers in the possession of Her Majesty's Government respecting the Reciprocity Treaty and the Bonding Acts, of dates subsequent to December, 1861.'

"In reply, the Under-Secretary for Foreign Affairs said (see 'Hansard,'

17th Feb. 1865):--

"'He had only to report what was stated by the n.o.ble 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 circ.u.mstances, 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 doc.u.ment, 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 Amba.s.sador 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 circ.u.mstances, 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 Lords.h.i.+p 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 circ.u.mstances 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.'

"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 Was.h.i.+ngton, a.s.sembled 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 pa.s.sed 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 ca.n.a.ls, as shall render them adequate for the requirements of the west communicating with the ocean.'

"At the time of pa.s.sing 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 circ.u.mstances 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 a.s.sumed 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 circ.u.mstances, unless accompanied with certain important modifications, is not desirable on the part of the United States.

"'They, however, are also unanimous in the opinion, that, in view of the close geographical connection of the United States with the British Provinces--rendering them in many respects but one country--and of the magnitude of the commercial relations existing between them, it would be impolitic and to the detriment of the interests of the United States to decline the consideration of all propositions looking to the re- establishment of some future and satisfactory international commercial arrangement. Such a course would be in entire opposition to the spirit of the age, the liberality of our people, and the policy of rapidly developing our resources as a means of diminis.h.i.+ng the burden of our public debt.

"'In view of such an arrangement, the question of whether either of the parties to the treaty has, or has not, conformed to the spirit of its stipulations, is of little importance. It is the future, not the past, that we are to consider; and if advantageous terms for the future are offered--terms which are calculated to promote the development of the trade and commerce of the United States, encourage good feeling and prevent difficulties with our neighbours, and at the same time protect the revenues of the country from serious and increasing frauds--it would be, in the opinion of the Commission, most impolitic to disregard them.

"'The offer on the part of the provincial authorities to re-negociate in respect to the commercial relations of the two countries, is in itself an expression of desire to make an arrangement that must be, in every respect, reciprocal; inasmuch as it is evident that no treaty can, for any length of time, continue that does not conduce to the benefit of both parties.

"'It is evident that the necessities of the United States will for many years require the imposition of high rates of taxation on many articles, and that with the production of such articles free, or a.s.sessed at low rates of duty, in the British Provinces, the enforcement of the excise laws on the borders will be a matter of no little difficulty, annoyance and expense; and under all ordinary conditions a large annual loss of the revenue must inevitably occur.

The experience of all the nations of Europe has shown that to attempt to wholly prevent smuggling, under the encouragement of high rates of duty, is an utter impossibility. If, however, such an arrangement can be made with the British Provinces as will ensure a nearly or quite complete equalization of duties--excise and customs--it must be apparent that all evasions of the revenue laws by smugglers would instantly come to an end; and that the attainment of the above result would be of immense advantage to the United States in a revenue point of view.