The New York herald., 1869-01-13


Formerly was the busiest tread OF our workmen."
Already estimated by tonnage, the American vessels
than one naif between the years 1851 and 1867.
Few, perhaps adequately appreciate the value oI
our inland Shipping Nlmmo cniei OF tne toa1sge ,
the inland commerce OF the United States u about
seven times as great as the commerce between the
British possessions OF North America) In American
vessels and about three times as great as the ioregn
Of the United states IN 6o,n ae nve vs
years ending June 30 1885, only thirty per cent
OF the aggregate tonnage entered at ports OF tne
United states from foreign countries was III Amerl-
vessels, the remaining sixty-one per cent having
been in foreign vessel1l
British Canadian rivalry the inland shipping, the
last remaining object OF honorable pride to our navl-
gators, would soon be driven rom our inland seas @
ocean going vessels from 1861 10 1907 70 less tnan
onehali their former number and continue TO dimin-
only by adopting the principle Of exempting from
duty or allowing drawback upon al articies used
in the construction q snps can our sbd mayaI
also be extended to all our means Of Inland transt
BY this course transportation OF our great staple
products would be cheapened and our exports DC
enabled better to compete IN foreign markets. thus
aiding materially In turning the actual balance OF
trade in our favor. The whole modern scneme OF
British Canadian Internal improvements with their
ingen0usly cOntrved tariffs, originated IN perver.
sion OF the freedom conceded to the trade ana COM
merce between the two countries by the adoption OF
the Reciprocity treaty. Without such concessions
British capital never would have found investment
IN the immense public works OF Canada; nor could
those rival carrying systems to day md any impor-
tant support except upon the basis OF our bonded
SYSTEM the Warehousi1g act OF 1854 ana moo the most
ting the transit OF foreign and domestic goods,
first through our territory, then through Canads
in this country The privilege was accorded to Ca
madam railways to carry foreign or American mer-
snoae whe the ens Navigation act OF 1877 prohibited
the carriage OF the same property Dy foreign vessels
from one port to another In the United STATES. ~
should be remembered that the same facilities en-.
joyed by the Canadians over our citizens IN SNIP
building also enure quite as fully TO their advantage
roads and that competition between lines on the
different sides Of the national boundary Is not merely
question OF distance, about which no just do9Dt
aid In this direction the Canadian has hot only labor
comparatively untaXed, but also plentiful supply
forms.
Further investigation OF this branch Of the subject
Is omitted as the instructions from you, dated
March 2 1865 directing me to inquire INTO the work
ings Of the regulations OF the Treasury Department
so far as they relate to the northern frontier are
more fully considered in supplementary document,
showing the superior advantages thus enjoyed by
the Canadian railways in competition with our own.
ESTIMATE OF THE ST. LAWRENCE.
AS an explanation OF the partial character or the
treaty IN not providing for really reciprocal ex-
change OF the products OF labor 1t IS often urged
that the admission to the ST. Lawrence and its canals
compensated for the deficiency II, with the advan-
tages conferred upon our territory by nature, we
cannot on q footing Of Just equality maintain the
cumb. But an impartial examination discl0ses the
fact that while the navigation OF Lake Michigan,
granted to the Canadians by the treaty, has been OF
much benent to their shipping, which by Its cheap
drives our own heavily taxed vessels out OF the
feld those have been greatly mistaken who imagined
the West 10 the 0cecn.
COMPARISON WITH THE AMERICAN ROUTE.
As the navigation OF the st. Lawrence was one OF
the supposed equivalents granted to by the treaty
Its real value becomes an important subject or lnves
tigalon. Beyond this 1t cannot be alleged that Can
ada has any equivalent 10 give VI Tor the advan-
tages Of our markets. Hence comparison between
that route and the connecting lines between the
lakes and the ocean through our own country Is an
essential portion OF the answer to the inquiries sub
mitted
Nor can consideration OF the terms on which the
use Of the great American canal is enjoyed by the
public be properly omitted, as that work Is the
depend upon it for the maintenance OF commercial
supremacy In competition with Canada. No other
9, ea nv hcS t" csntn1eS
Louis XIV. known In history as the .Grand
Monarque'' the most magnificent sovereign who ever
occupied throne, connected the Mediterranean sea
with the Atlantic Ocean. The policy adopted by the
enlightened statesmen who projected both these
great works was alike That Of the State Of New
York was SO far TO improve the geographical advan
tages or position as to pass through our territory
the nen o. ~ ane wes aa
a3 would be necessary to meet the requirements OF
It's growth. [The distinguished commercial repre-
az the International Convention, at Portland said
"The inland commerce Of o country Is vastly more
element OF prosperity in foreign commerce is domes-
tic commerce. The commerce which sails upon
your lakes Ontario, Enc, Superior and Michigan, and
which n0ats upon your canals ID in value four times
that OF the commerce which is borne In ships from
the seaports OF this country to the Old World.''l
Statesmen did not at first foresee the future I'm
portance OF their work, the OF international
communication across the Continent, but they rec
hla nd md rapinu I'm re-
lation to the tolls on public canals or national nigh
ways This formed noble precedent for the policy
adopted by those wise and venerated beneactors to
that State and the nation as TO our chief thorough
fares. The French monarch placed the tolls on his
enase CONDENSATION to peaue the engineer for keep
ing II in good navgable condition. Tnls policy was
adopted not 30 much with desire for the welfare OF
the French people as from the more selfish but en-
lightened motive OF raising the greatest amount OF
revenue. The King was justified by the results and
found that II considered solely as question OF
financial policy for his exchequer 1t was
better TO tax wealth only when IL nad ac-
cumulated, and not 70 arrest industry IN the
work OF production or IN the cheap and profitable
exchange OF commodities. In every Just.apporton-
ment OF taxation the increase OF taxable wealth de-
creases the burden upon the Individual aud the
masses All eminent writers on political economy
confirm the belief that whether the freedom OF In
tcrnal commerce and Industry be interrupted by I'M
passaple mountains and swamps or by oppressive
tolls restrictions the effect Is equally perniclous
When sne entered the Union the State OF New
York relinquished that part OF her revenue which
was derived from taxes on foreign commerce. In
the same spirit OF union the national character
OF the canal fully recognized from the beginning,
and the STATE declining 70 tax inland commerce,
never used The tolls leyled upon transit except 10
repay the cost Of making the canals and OF main.
tanning them thus granting facilities to the transit
OF Western productions ut time when she pos
sessed monopoly OF the inland trade and prac-
tcay recognizing the right OF free way through her
territory right Of nature which Could not JUST
be withheld from the states Of the interior. The
leaders OF public opinion In that state without dis
tnc1on OF political party, now adhere TO the view
thus early adopted. They seek by the development
or mutual and material interests to strengthen the
bond Of union between the states.
Much OF the value attributed to the navigation OF
the st. Lawrence has arisen nom the tradit!0nary
estimates placed upon 1t when no other line OF COM
nunication BY wafer connected the great lakes with
the ocean. The Hudson penetrated far toward the
inland seas and thus dictated the site of the COM
mercIa metropolis Of the Union But beyond the
navgaDle portion OF that river transit was dlncult
and its great to be prohibltory. In this
condition Of AFFAIRS the minds Of the early settlers
In the then "far Westr naturally turned " the ex It
afforded by the magnificent river fed from the great
lakes II at that time the banks OF the lower st. Law
49,