the Sandwich Islands, Sweden, Norway, Liberia, and Greece, all put together. The total export traffic of the United States to these twenty countries in home products, foreign goods, and goods in transitu being $56,663,359, while that to Canada was $56,857,194.

A continued analysis of the United States official returns shows that while Canada in 1871-72 thus swelled the export sales of the domestic and foreign goods of the United States, and the carrying trade of their ocean fleet and railways and canals to an equal extent with the above twenty countries, the United States took in that year from Canada in return but $40,061,432, of which $4,614,502 was gold and silver, $1,180,790 goods of United States production returned to the States from Canada, and $691,299 effects of immigrants passing through Canada into the United States. But, on the other hand, while the twenty countries above named took, as above stated, but $56,663,358 of the export tariff of the United States, their import traffic into the United States was no less than $108,377,613—of which only $7,218,620 was gold.

COMPARATIVE DUTIES IN THE UNITED STATES AND DOMINION.

Again of the entire purchases by Canada from the United States in 1871-"72 of home and foreign products (excluding the traffic in transitu from the comparison,) articles to the value of $20,710,582 were admitted free of duty, and only on $12,048,548 was any duty paid. The total amount of duty levied was $2,216,215, or an average per centage on Canada's entire importations from the States (free and dutiable) of that year of only 6 per cent. On the other hand, of the purchases by the United States from Canada in the same year, the articles admitted free of duty were to the value of but $9,329,881, and those subjected to duty $31,631,551. Indeed, as there were included among the free importations $4,619,502 of gold and silver coin and bullion, $1,180,790 of United States productious returned to the States, and $686,800 of effects of immigrants passing through Canada into the States, the free importations of merchandise from Canada by the United States were in reality but $2,842,789, against $31,631,555 on which customs duties were levied to somewhere about 25 per cent. on the entire importations of the year.

SAME FACTS DEMONSTRATED IN 1873.

And the same state of things is found in the year ending 30th June, 1873. The declared value of the entire export traffic of the United States with foreign countries was as follows:

Of this vast export traffic Great Britain and her colonies received from the United

Of the above great amount of traffic taken from the United States by Great Britain and her colonies, Canada took :

Germany's share was

France and her possessions took
Spain and her possessions took...

And all the rest of the world took.

68,724,421

36,083,260

29,257,020

100,134,468

Great Britain and her possessions, therefore, took 67 per cent. of the entire export traffic of the United States for 1872-'3, and all the rest of the world but 33 per cent. With the exception of Germany (whose traffic exceeded that of the Dominion by only $3,367,681), Canada in this year was the largest consumer of the United States outside the British Empire. She took $29,273,470 of the United States export traffic more than was taken by France and her possessions; more than double what was taken by Spain and her possessions; and more than the Russian Empire, Japan, Italy, Brazil, Mexico, Hayti, Peru, the Argentine Republic, Venezuela, Sweden, Norway, Denmark and her possessions, Chili, China, Uruguay, the Austrian Empire, the Turkish Empire, the Central American States, Portugal and her possessions, the Sandwich Islands, Liberia, and Greece, all put together. These twenty-two countries took in all $64,901,145 of the export traffic of the United States, of which $42,397,315 was gold, while Canada alone took $65,356,740, of which only $4,269,181 was gold.

On the other hand, the United States in the same year imported from Canada but $43,809,070, of which $6,159,538 was gold, $1,211,155 products of the United States returned from Canada to the United States, and $729,985 effects of immigrants passing through Canada into the United States. The actual importation of Canadian merchandise was therefore but $35,708,392, while the twenty-two countries above named, whose share of the United States export traffic of the year was but $64,901,145, including gold, or $52,593,830 excluding it, sent into the United States in the same year, no less than $131,101,423, of which but $2,104,393 was gold. The "balance of trade for years 1872-'73, therefore, was $52,593,360, of export traffic from the United States into these twenty-two countries, and $128,997,030 of imports into the United States from them-or $76,303,200 against the United States.

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And the constrast is even more marked when the United States customs duties on Canadian products are compared with those on the products of other countries whose commerce is of infinitely less moment than that of Canada. In the year 1872-'73, of the $35,708,392 of merchandise imported by the United States from Canada, only $4,334,285 was admitted free of duty, and on the remaining amount of $31,374,107 duties were levied to somewhere about 25 per cent. on the entire importations from Canada of that year. Canada, on the other hand, on her importations from the United States the same year, admitted merchandise to the value of $22,016,690 entirely free of duty, and levied duties only on $16,555,866, to the amount of but $2,923,795, or 8 per cent. on the entire importations of merchandise for the year. How different was it with the twenty-two countries above named. Of their importations into the United States, $102,501,338 were received free of duty, and only on $29,200,085 was any duty charged.

It is not for us to criticize in any way the manner in which the United States choose to impose their duties. We merely mention these things to remind you of the disadvantageous position Canada occupies in her transactions with the Republic in comparison with that of other countries whose transactions are not to be compared in extent or profit with those of the British Provinces.

When, with all these facts before them, Her Majesty's advisers invite the Government of the United States to reconsider the whole commercial relations of the Republic and the Dominion, with a view to placing them on a friendly and durable basis of reciprocal advantage, the question naturally presents itself, how it comes that having prospered so well since the repeal of the Reciprocity Treaty of 1854, Canada now seeks for its restoration. The answer is as natural as the question. The population of the United States is forty millions, and that of the Dominion is but four millions. The boundary between them is for the most part but a surveyor's line, often unknown even to those who live beside it; and it is of the utmost importance to Canada that common interests and mutual good will should exist between the countries. And what so conducive to this end as commercial intercourse generously carried on and mutually profitable? The people of Canada are not ignorant that a market near at hand is better than a distant one; and good as their present markets are, they would gladly have the old one in addition. They comprehend the barrier that custom-house restrictions throw in the way even of the existing traffic, and

they seek to have these withdrawn. They are proud of their own St. Lawrence route, and intend to unprove it to the uttermost for the benefit of the great West and their own; but would gladly use the ocean ports and other channels of commerce of the Republic, when freights and fares and friendly reciprocity draw them in that direction. And very great as have been the advantages always accruing to the United States from reciprocity, the Canadians can find only cause of hearty rejoicing at that, so long as they themselves continue to enjoy that moderate degree of prosperity with which Providence has blessed them. There is no mystery, no arriere pensee, in their desire that the commercial relations of the Republic and the Dominion should be placed on the most kindly and unfettered and mutually advantageous basis consistent with their respective existing obligations and with that connection with Great Britain which the Dominion so happily enjoys.

It was with these views, and in this spirit, that the Canadian Administration availed itself of the opportunity presented by the twenty-second Article of the Treaty of Washington to represent to Her Majesty's Government the advantage that would accrue to both countries by the substitution of a satisfactory Commercial Treaty in lieu of the money compensation to be paid (under arbitration) by the United States, for twelve years' enjoyment of the coast fisheries of the Dominion. It was felt that if the large value placed by the Canadian people on their fisheries were not reasonably com pensated by the results of the arbitration, a feeling of dissatisfaction might be engendered in the Provinces, not conducive to international harmony; and that if, on the other hand, an award were made equal to the confident anticipations of the Provinces, the good feeling restored in the United States by the Treaty of Washington might be sensibly impaired. To merge the matter in a general measure of mutual commercial concessions for the mutual advantage of both parties, and with injury or injustice to neither, seemed the fitting conclusion to be arrived at by the Government of two great nations.

Her Majesty's Ministers were pleased to adopt the suggestion of the Canadian Government, and the matter having been brought under the attention of the Secretary of State, and through you, Sir, to the notice of the President of the United States, a friendly response was at once received, and the necessary measures instituted for opening formal negotiations.

In the interview which we had the honour to be favoured with by you at the State Department on the 28th March, we stated to you that Her Majesty's Government was prepared to accept a renewal of the Reciprocity Treaty of 1854 as a substitute for the arbitration provision of the Washington Treaty, in reference to the Canadian Coast Fisheries.

You thereupon suggested an enlargement of the scope of the Treaty, and we asked in what manner you would propose to enlarge it.

You replied that you had no proposition to make, but that you suggested, as topics for discussion, the enlargement of the Canadian canals, so as to facilitate the transportation of the products of the great Western States to the Atlantic seaboard; and also the addition of certain classes of manufactures to the free list of the old Treaty.

We then stated that we were prepared to enter into an agreement for the enlargement of the Canadian canals.

In regard to the addition of certain classes of manufactures to the free list under the old Treaty, we reminded you that the revenue of the Canadian Dominion was largely obtained from a 15 per cent. ad valorem duty on manufactured goods, and that any articles made free in Canada under agreement with any foreign country must be made free to Great Britain. But we added that the Government of Canada was desirous to afford every facility for the encouragement of extended commercial relations be tween the Republic and the Dominion, in the belief that nothing could tend more to their mutual advantage, not only in a pecuniary sense, but as tending to foster and strengthen those friendly feelings that ought eminently to prevail between two peoples mainly derived from the same origin, speaking the same language, and occupying the geographic position towards each other of the United States and Canada. We convey to you the assurance of the Canadian Government that acting in this spirit, and in the confidence that we would be met in the same spirit by the Government of the Republic, the assent of Canada will be most heartily given to any measure calculated to promote the free and fair interchange of commodities, to reduce the cost of transportation, or conduce to the joint advantage of the two countries so that it be not seriously prejudicial to existing industrial interests of the Canadian people.

In the spirit of this assurance, we invited you to suggest for discussion the classes of manufactures that you would desire to have embraced in the new Treaty. This you declined to do; but you urged that we should indicate the enlargements of the old Treaty likely to be acceptable to both countries. Without acquiescing in the propriety of this course, we yielded to your wishes, and now proceed to fulfil our promise to do so.

SUGGESTIONS.

We propose that the new Treaty shall be for the term of twenty-one years, to inspire confidence among business men investing their capital in such extensive enterterprises as would naturally follow from the completion of a comprehensive Treaty.

We propose that the Treaty shall provide for the free admission into the United States, the Dominion of Canada, and the Island of Newfoundland, of the following articles, as under the Treaty of 1854 :

Firewood.

unmanufactured in whole or in part.

Pitch.

Manufactures of iron or steel.

Manufactures of iron or steel and wood
jointly.
Manufactures of wood.

Lumber of all kinds, round, hewed or sawed, Mineral and other oils.

Tar.

Plaster, raw or calcined.

Salt.
Straw.

Timber of all kinds, round, hewed or sawed, Stone, marble or granite, partly or wholly cut unmanufactured in whole or in part.

or wrought.

We propose that the enjoyment of the Canadian coast fisheries shall be conceded to the United States during the continuance of the new Treaty, in the manner and on the conditions provided under the Washington Treaty, except those in regard to the payment of money compensation for the privilege.

We propose that during the continuance of the Treaty the coasting trade of Canada

and the United States shall be thrown open to the vessels of both countries on a footing of complete reciprocal equality.

We propose that the Canadian canals, from Lake Erie to Montreal, be enlarged forthwith, at the expense of Canada, so as to admit the passage of vessels 260 feet in length, with 45 feet beam, with a depth equal to the capacity of the lake harbours.

We propose that, during the continuance of the Treaty, all the Canadian canals, and the Erie, Whitehall, Sault Ste. Marie, and Lake St. Clair canals, in the United States, shall be thrown open to the vessels, boats, and barges of both countries on the same terms and conditions to the citizens of both countries; and that full power be given to tranship cargo from ships or steamers into canal boats at any canal entrance, and also to tranship from boats into ships or steamers at any canal outlet.

The free navigation of the St. Lawrence River having been conceded for ever by Great Britain to the United States under the Washington Treaty, but the free navigation of Lake Michigan having been conceded for ten years only by the United States in Great Britain under the same Treaty, we propose that both concessions be placed on the same footing, free from restrictions as to reporting at any port in the United States other than the port of destination.

We propose that during the continuance of the Treaty vessels of all kinds, built in the United States or Canada, may be owned and sailed by the citizens of the other, and be entitled to registry in either country, and to all the benefits thereto pertaining.

We propose that a Joint Commission shall be formed and continued during the operation of the Treaty, for deepening and maintaining in thoroughly efficient condition the navigation of the Rivers St. Clair and Detroit, and Lake St. Clair, on whichever side of the river the best channel shall be found; the expense to be defrayed jointly by the contracting parties, by contributions corresponding to the commerce carried on in these waters by then respectively.

We propose that a Joint Commission shall be formed, at joint expense, and maintained during the operation of the new Treaty, for securing the erection and proper regulation of all light houses on the great lakes common to both countries, necessary to the security of the shipping thereon.

We propose that a Joint Commissson shall be formed at joint expense, and maintained during the continuance of the Treaty, to promote the propagation of fish in the inland waters common to both countries, and to enforce the laws enacted for the protection of the fish and fishing grounds,

We propose that citizens of either country shall be entitled, during the continuance of the Treaty, to take out Letters Patent for new discoveries in the other country on the same footing as if they had been citizens of that country.

We propose that the best method of discountenancing and punishing illicit trade between the countries shall be the subject of consideration and co-operation by the customs authorities of the two countries.

That in case a Treaty of Commercial Reciprocity should not have been concluded before the end of the present session of Congress, the right of adjudication of the claim of Canada to compensation for the fisheries under Articles XXII. to XXV. of the Treaty of Washington, would in no degree be waived, and that in that event the fulfilment of the stipulation contained in those Articles would be immediately proceeded with.

Washington, D.C., 27th April, 1874.

(Signed)
(Signed)

EDWARD THORNTON.
GEO. BROWN.

THE RECIPROCITY NEGOTIATIONS.

MR. BROWN'S SPEECH IN THE SENATE.

(From the Toronto Globe, March 8th, 1875.)

In the Canadian Senate, on Monday, February 22nd, 1875:

Hon. GEORGE BROWN rose and said,

Hon. gentlemen, in rising to make the motion of which I have given notice, I am sure you will all feel that it is right and fitting, and will be expected by the country,