The New York herald., 1869-01-13
TRADE WITH CANADA.
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Report Of Israel T. Hatch in Relation 10 Inc
Reciprocity Treaty and the Chan
nslS Of Commerce.
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Increased Revenues Received by the
United States Since the Abr0-
cation of the Treaty.
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The Aggressive Policy of
Canada.
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Proposed Improvement of the
Erie Canal.

Hon. HUGH MCCUIrOCH, Secretary OF the Treasury
SiR-Tne resolution Of inquiry passed by the
House Of Representatives July g. 1860, and received
by me called for
Frst--A statement OF the trade and commerce OF
the United states with the British North American
provinces and the revenue derived therefrom, since
the termination Of the Reciprocity treaty, and oil
changes in Canadian tarins since that date.
lSeco,,dl,l-A statement OF the comparative impor-
tance OF American and Canadian channels OF CON-
merce or transportation OF property from the West
70 the seaboard.
on the 9th May, 1897. my report in answer to these
Inquiries submitted to the House OF Representa-
uves. At that time 1t was impossible to reach con-
clusions several important points with satisfac
sorry degree OF certainty. Scarcely had one fiscal
year OF the United states then passed since the treaty
had ceased. large amount Of the articles on hand
and free under the treaty hurried forward from
the provinces, as the time for its termination
approached, to avoid the duties levied afterwards
A corresponding dlminution in the importations
immediately subsequent naturally ensued. Hence a
comparison OF the trade during the last year of the
treaty and that next afterwards would have yielded
no conclusive inferences With the termination OF
the treaty commercial intercourse with the
provinces is again open for investigation and legis-
lation or diplomatic action. Renewed attention has
been drawn 10 Il by the efforts OF the Canadian
thorites TO remove the dissatisfaction OF their people
and promote the prosperity and consolidation OF the
New Dominion by restoring the course OF trade un-
der the treaty, thus giving It's natural commercial
connections and market to each province.
now beg leave to submit further report en-
bodying more recent information, the result OF the
examination OF two fiscal years, in answer TO the
resolution OF inquiry by the House OF Representa-
tives ana in pursuance Of your instructions to me,
dated March 81, 1865.
TRADE BETWEEN THE UNITED STATES AND CANADA
BEFORE THE TREATY.
The principle OF freedom In our commercial ex-
changes with the North American British provinces
has ut all times received the appreciation OF the lead
ing statesmen OF this nation, without distinction OF
party. 1t has become universally popular and Is
decidedly in harmony with the national progress
and enlarged spirit OF the age. The territory OF the
provinces Is extended on q boundary indented with
own across the Continent. Climate, soil and the
cost OF labortne main elements Of value in cereal
proiuctions-aTe nearly alike in both countries.
These similitudes no doubt, suggested the idea Of
reciprocal trade and commerce.; the legislation and
diplomacy OF the two countries finally gave it prac
teal though partial application in the adoption OF
the so-callec Reciprocity treaty. The principle Of
the treaty itself was to permit the interchange OF
products OF each country free OF duty II was a
formal movement IN favor OF virtual If not literal
fccipTOcily-pfcsenliuR 10 TIE WOru the eAaupe Oh
two contiguous nations abandoning suspicion OF In
jury from each other and practising in their inter-
course the best principles possessed IN modern
civilization The omissions In the treaty and lis
limited character led ~ its termination.
brief statement Of our commerce with the British
provinces and the revenue derived from IL before the
adoption OF the treaty and during Its decade is
cessary TO complete proper history OF the sue
cesslve changes produced in our commercial rea-
ton by its adoption and termination.
KfFBcTs or THE TREATY on THE REVENUE OF THE
UNITED STATES.
a "A
upon The Northern frontier In 1854, the last year
unaffected by the treaty, the revenue upon articles
Included IN the free list during subsequent years,
anu imported from the provinces OF Canada alone
British provinces, now included In the Dominion.
was 81, ,5s4, 457 Assuming this as basis OF calcua
ton IN the ordinary mode OF computing an increase
Of revenue for the fiyc succeeding years the reve
SI,s5I,5ls annually. on furrhef examination 1t
would be found that the revenues woRld
have increased IN the same ratio during the
remaining years OF the treaty. Ofcial Cana
ian reports show that 1859 the amount Of duties
collected by Canada on imports, the products o.
was &l,s-5 1856; ia 1890. $1,I5p,92S, and In 1861,
$15S4 So. During these three years the whole value
of property Imported into this country from Canada
upon winch duty w&s levied was only In 1889,
&834 532; IN 1s00 1855 40 and in 1851. f2Z5s59 An
exarlina'lon Of subsequent years yields similar re-
suits. The average amount Of duty annually levied
and collected On CANADIAN imports In these three
years would not exceed SIS 900 towards defraying
the yearly expenses Of collection and guarding
n frontier of inland coast 900 miles in extent
On a closer examination II would be found that
large proportion VI tde duty-paylng art4cies i'm
ported from Canada consisted OF commOdftie not
produced IN that country.
IsG 1867. 1853 | issa