The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1860-05-01


Canada went into operation, it was hailed with
satisfaction by both the parties to the compact.
Every one then believed that Upper Canada and
the States of the UNION bordering the Great
Lakes would he mutually benefited Six years
have since elapsed, and that belief, in some quar-
tiers at least has been rudey shaken. Complaint
is made at the East that, owing to the changes
which have taken place in the course of the car
rying trade the practical result of the treaty has
been to increase the material prosperity of Canada
at the expense of the UNITED STATES. 1t is more
OYER contended that whilst the exports from
Canada find ready sale with us the articles of do
nestle produce and manufacture which per-
mitted, under the treaty, TO send into that pro-
vince free of duty merely 60 there IN transitu for
another market ''Thus our producers have to
''contend not only with competition at home but
twth competition from Canada in selling their
''grain and lumber, while the Canadian routes
care diverting to themselves a large portion
'!of that carrying trade which the Ameri-
s.can routes formerly had. So far as the
cheapening of the price of lumber and bread
stuffs is concerned, the argument is susceptible
ola two-fold application. Canadian competition
may indeed work some injury to American far.
mers and lumbermen, but as it benefits to at least
an equal degree far larger class of the whole popu
lation of the UNITED STATEs-lhat of consumers
it is compensatory in its action, and, therefore,
affords no just plea for the abrogaton of the
treaty. Our Government has, nevertheless,
thought proper to appoint Mr.. ISRAEL HATCH, of
Buffalo, a special Commissioner to examine into
and report upon the operation of the treaty.
That report are informed, is now rapidly
approaching completion, and will be laid before
Congress at early day. 1t is somewhat re-
markabe, that those who are alleged to be the
greatest sufferers from the compact entered into
between Lord ELGIN and Mr.. MARCY, should ex
press the least dissatisfaction with its provisions.
The complaints which have arisen with regard TO
it, have their origin chiefly in western New York,
and to the Eastward. 1t is from those sections
of the UNION, and not from the North Western
States, that petitions asking the amendment, or
abrogation of the treaty. have been sent. The
grain-producing States are, for the most part,
quite willing to put up with any loss that they
may sustain by Canadian competition, in consid-
Grafton of the facilities afforded them for trading
directly TO Europe by means of the Canadian
Canals and the River st. Lawrence. For many
years New York has held almost the monopoly
of the transportation of produce from the Lakes
to foreign market, and having expended large
sums of money in constructing canals and rail-
ways, for the purpose Of maintaining this SUI
premacy, she has naturally become alarmed at
the new channels by which the exports from the
Northwest are now finding their way to the
p,t 1o
of the unrestricted navigation of Canadian waters
IS not the only cause for alarm on the part of New
York. Her anxiety has been greatly increased by
the energy with which the managers of the
Grand Trunk Railway through Canada have
pushed forward their road, and by the combna-
rTOrS Gney UItIvI dIIcauy rnruteu, ga
process of completing, with the Western and
Northwestern lines, which have their term0a
Mt the Lake ports For seven months of eacI
year the Canadian Canals are ice-bound; and
it is during portion of that period that the chic
movement Of breadstufs takes place. Were there
no other outlet open to the Ocean, the New Yorl
Railways would sill be able to command the lar
ger part of the carrying trade But here it is tina
the Grand Trunk Railway and its Western ant
North Western connections come into operation
a summer route by water the Canadian Railway
. and Canals have already entered into vigorou
competition with those of New York. Anothe
objection to the maintenance of the treaty in it
present shape arises from the fact that since it
ratification, the Legislature of Canada has increas
ed the tariff on certain articles which were former
ly exported into that Province at a low rate O
duty from New York and the ports to the East
ward. 1t is charged that although these article
the principal of which are sugar and molasses-
are not enumerated in the treaty of reciprocity
vet as the recent act of the Canadian Government
takes from the merchants of the UNITED STATES
privilege which they formerly enjoyed, it violate
the treaty in spirit if not in letter In the contrc
versy which has sprung up with regard to thi
matter the arguments on both sides are so NIGEL
balanced that it is difficult to determine what nc
ton Congress ought to take upon the subject
There arc points in the treaty with which neithe
of the parties that were to be benefited by it ar
wholly satisfied But those that most ohjec
tionable to the Eastern States are the ones whic
are in favor at the West, whilst the restriction
placed upon Colonial shipping in American waters
of which the Canadians complain, are regarded
by New York as essentially necessary to the pro
lection of its Canal and Railway interests. Thu
report of Mr.. HATCH, which will shortly be forth
coming, may possibly throw some new light upor
this Cerota quGstio, and until that appears it i
manifestly impossible to come to any correc
decision in relation to the matter to which
refers.