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BRITISH NORTH AMERICA, comprising Canada, Nova Scotia, New Brunswick, Newfoundland, and Prince Edward Island. His Excellency Right Hon. Charles Stanley, Viscount Monck, Governor-General of British North America, and Captain-General and Governorin-chief in and over the Provinces of Canada, Nova Scotia, New Brunswick, and the Island of Prince Edward, and Vice-Admiral of the same, etc. Denis Godley, Governor-General's Secretary; Lieut.-Col. Hon. Richard Monck, Military Secretary; Capt. Pemberton, 60th Rifles, aidede-camp; Lieut.-Col. Irvine, Provincial aide-decamp; Lieut.-Col. Bernard and Lieut.-Col. F. Cumberland, Extra Provincial aides-de-camp.

The Canadian Cabinet.-Sir N. F. Belleau, Re

ceiver-General and Premier; Hon. A. J. Fergusson Blair, President of the Council; John A. Macdonald, Attorney-General for Upper Canada, and Minister of Militia; George E. Cartier, Attorney-General for Lower Canada; W. P. Howland, Acting Minister of Finance; William McDougall, Provincial Secretary; Thomas D'Arcy McGee, Minister of Agriculture and Immigration; A. Campbell, Commissioner of Crown Lands; W. P. Howland, Postmaster-General; J. C. Chapais, Minister of Public Works; James Cockburn, Solicitor-General for Upper Canada; Hector E. Langevin, Solicitor-General for Lower Canada. Nova Scotia.-His Excellency Lieutenant-General Sir William Frederick Williams, of Kars, Baronet, K. C. B., Lieutenant-Governor.

New Brunswick.-His Excellency Major-General Charles Hastings Doyle, Administrator. Newfoundland.-His Excellency George Dundas, Esq., Lieutenant-Governor.

Prince Edward Island.-His Excellency Anthony Musgrave, Esq., Lieutenant-Governor.

The Reciprocity Treaty between Canada and the United States.-This was the subject of a conference between a delegation from the Colonial Government of Canada and the Committee of Ways and Means of the United States House of Representatives, in January, 1866. The interviews took place at the Treasury Department, Washington, with the approval of Hon. Mr. McCulloch, Secretary of the Treasury. The Colonial delegates were the Hon. Messrs. Galt and Howland (Canada); Henry (Nova Scotia); and Smith (New Brunswick); and the Congressional committee, Messrs. Morrill, of Vermont; Hooper, of Massachusetts; Brooks, of New York; Garfield, of Ohio; Wentworth, of Illinois; Conkling, of New York; Moorhead, of Pennsylvania; Allison, of Iowa, and Hogan, of Missouri.

After a general discussion upon the subject of reciprocal trade, Mr. Morrill submitted, on behalf of the committee, the following list of articles which he thought should be admitted to the United States with no higher duty than the pressure of the United States internal revenue tax: Fish of all kinds; products of fish; hides, furs, skins, and tails, undressed; horns, manures; pitch, tar, turpentine; ashes; coal, firewood; plants, shrubs, and trees; fish-oil; rice, bark; gypsum, unground; burr and grind stones, unwrought; rags, except woollen, unwrought.

The articles mentioned below he thought should be made to bear a higher import duty

than the pressure of the United States internal revenue tax: Grain, flour, and breadstuffs of all kinds; animals of all kinds; fresh, salted, and smoked meats; cotton, wool, seeds, and vegetables; undried fruits, dried fruits; poultry, eggs; stone or marble, slate; butter, cheese, tallow, lard; timber and lumber of all kinds; pelts and wool; dyestuff's; flax, hemp, and tow; unmanufactured tobacco; woollen rags; burr and grind stones, wrought.

There were three other points embraced in the proposition from the House committee. First, the mutual use of the waters of Lake Michigan and the St. Lawrence. Second, the free transit of goods under bond between the two countries, and in that connection the abolition of the free ports existing in Canada. Third, the concession of the right of fishing in provincial waters.

The Hon. Mr. Galt, on behalf of the Colonial delegates, stated their objections to the proposition with frankness and ability. He thought that all the articles on the free list of the reciprocity treaty, and such others as might be agreed on, should be dealt with on the basis of imposing custom duties as heavy as the internal taxes of the United States. With reference to the fisheries and navigation, he took the ground the transit trade, he agreed that it would be that no new arrangements were required. Asto desirable that the regulations for passing goods under bonds should be reduced to the form of a law, and there seemed to be no reason why a uniform system should not be adopted. With reference to the assimilation of duties between the two countries, he said that it would be the desire of the Colonial delegates to unite with the committee in making the duties upon spirits, beer, tobacco, and cognate articles affected by the excise duties upon them, such as might be determined to be the best revenue standard. As to other articles, the Colonial Government was disposed to make mutual arrangements on a satisfactory footing. Mr. Galt expressed the hope that the time would come when the policy of the United States would not be as restrictive as now. With regard to the navigation of the internal waters, it would seem to be advantageous to both sides to have the trade free. He also expressed the willingness of the Canadian authorities to assimilate their patent laws to those of the United States.

On the 6th of February, all the questions involved having been discussed at numerous sittings, the Colonial delegates rejected the American proposition as a whole, and expressed a feeling of disappointment at the unsuccessful termination of the conference. Mr. Galt stated that the Canadian Government were prepared to let the present trading facilities continue without asking for any further security from the United States, or giving any assurances on the part of Canada. The question of the fisheries they would leave, as it would be left at the termination of the treaty, to be dealt with by the several Legislatures of the United States on the one

hand, and of the British Provinces on the other, as they might please. On the subject of fisheries, Mr. Henry (representing Nova Scotia) said that it was one upon which, above all others, the population of Nova Scotia were divided in opinion, as to whether they were not the losers under the present condition of things. He considered, at all events, that to yield the right of fishing within the prescribed limits is a very large bounty given for the opening of the United States market for the single article of mackerel. Before the treaty, the duty on mackerel was about $2 per barrel, and the United States now proposed that on condition of giving up the exclusive right of the fishing, mackerel should be admitted with no higher rate of duty than the pressure of the United States internal revenue tax; but this would amount to $1.50 in gold, or about $2 in currency. The question was, therefore, really on the same footing as before the treaty. Under that treaty also a good deal of cheese and butter were admitted into the United States, free; but under the proposed new tariff these would now be taxed. The people of Nova Scotia would therefore feel on all accounts that, in acceding to the proposal of the committee, they would be giving up a decided advantage without any equivalent whatever. Mr. Henry stated, as the opinion of himself and associates, that the object of the committee was apparently not merely to devise a plan for collecting revenue from the Canadian trade, but to put in force the principle of protection.

Mr. Morrill replied that the rates on the part

of the United States were fixed with a view to revenue only.

After a further general conversation, the conference broke up, and, on the next day, the following memorandum, embodying the views of the delegates, was presented by them to the committee:

WASHINGTON, February 6, 1866. Memorandum.-In reference to the memorandum received from the Committee of Ways and Means, the Provincial delegates regret to be obliged to state that the proposition therein contained, in regard to the commercial relations between the two countries, is not such as they can recommend for the adoption of their respective Legislatures. The imposts which it is proposed to lay upon the productions of the British Provinces on their entry into the markets of the United States, are such as, in their opinion, will be in some cases prohibitory, and will certainly seriously interfere with the natural course of trade. The imposts are so much beyond what the delegates conceive to be an equivalent for the internal taxation of the United States, that they are reluctantly brought to the conclusion that the committee no longer desire the trade between the two countries to be carried on upon the principle of reciprocity. With the concurrence of the British minister at Washington they are, therefore, obliged respectfully to decline to enter into the engagements suggested in the memorandum, but they trust the present views of the United States may soon be so far modified as to permit of the interchange of the productions of the two countries upon a more liberal basis.

The delegates also submitted the following report to the British ambassador at Washington:

WASHINGTON, February 7, 1866

To His Excellency Sir Frederick Bruce, K. V. B., etc. : lency that the renewal of our negotiations for recipSIR: We have the honor to inform your excel rocal trade with the United States have terminated unsuccessfully. You have been informed from time to time of our proceedings, but we propose briefly to recapitulate them.

On our arrival here, after consultation with your excellency, we addressed ourselves, with your sanetion, to the Secretary of the Treasury, and we were by him put in communication with the Committee of Ways and Means of the House of Representatives. After repeated interviews with them, and on ascer taining that no renewal or extension of the existing treaty would be made by the American authorities, but that whatever was done must be by legislation, wa submitted as the basis upon which we desired ar rangements to be made the enclosed paper (marked A).

In reply, we received the memorandum from the committee, of which a copy is enclosed (B). And finding, after discussion, that no important modifications in their views could be obtained, and that we were required to consider their proposition as a whole, we felt ourselves under the necessity of declining it, which was done by the memorandum also enclosed (C).

It is proper to explain the grounds of our final

action:

sions of the expiring treaty relating to the free inIt will be observed that the most important provi terchange of the products of the two countries were entirely set aside, and that the duties proposed to be levied were almost prohibitory in their character. The principal object for our entering into negotia tions was therefore unattainable, and we had only to consider whether the minor points were such as to make it desirable for us to enter into specific engagements.

These points are three in number.

of the waters of Lake Michigan and the St. Lawrence With regard to the first-the proposed mutual use

We believed,

-we considered that the present arrangements were sufficient, and that the common interests of both countries would prevent their disturbance. We were not prepared to yield the right of interference in the imposition of tolls upon our canals. moreover, that the privilege allowed the United States of navigating the waters of the St. Lawrence was very much more than an equivalent for our use of Lake Michigan.

Upon the second point-providing for the free transit of goods under bond between the two countries-we believe that in this respect, as in the former case, the interests of both countries would secure the maintenance of existing regulations. Connected with this point was the demand made for the abolition of the free ports existing in Canada, which we were not disposed to concede, especially in view of the extremely unsatisfactory position in which it was proposed to place the trade between the two

countries.

On both the above points we do not desire to be understood as stating that the existing agreements should not be extended and placed on a more per manent basis, but only that, taken apart from the more important interests involved, it did not appear to us at this time necessary to deal with them excep tionally.

With reference to the third and last point-the concession of the right of fishing in provincial waters -we considered the equivalent proposed for so very valuable a right to be utterly inadequate. The ad mission of a few unimportant articles free, with the establishment of a scale of high duties as proposed, would not, in our opinion, have justified us in yield ing this point.

While we regret this unfavorable termination of the negotiations, we are not without hope that, at no

distant day, they may be resumed with a better pros
pect of a satisfactory result.
We have the honor to be your excellency's most
obedient servants,

A. T. GALT, Minister of Finance, Canada.
W. P. HOWLAND, Postmaster-Gen'l, Canada.
W. A. HENRY, Attorney-Gen'l, Nova Scotia.
A. J. SMITH, Attorney-Gen'l, New Brunswick.
Canadian Trade with the West Indies, Bra-
zil, and Mexico.-When it became evident that
the reciprocity treaty between the United
States and Canada would be abrogated, a con-
federate council of trade was held in Quebec
September, 1865, at the suggestion of the Im-
perial authorities, and a committee appointed
to investigate the trade of the West Indies,
Brazil, and Mexico, with a view to obtain new
commercial advantages for Canada. This com-
mittee, which proceeded on its mission in De-
cember of that year, was composed as follows:
From Canada, Hon. William McDougall, M.
P. P., Provincial Secretary; Hon. Thomas Ryan,
M. L. C.; J. W. Dunscombe, Esq., Collector of
Customs for Quebec, and A. M. Delisle, Esq.,
Collector for Montreal; from Nova Scotia,.
Hon. James McDonald, M. P. P., Financial
Secretary, and Hon. Isaac Levisconte, M. P. P.;
from New Brunswick, William M. Smith, Esq.,
Collector of Customs at St. Johns; from Prince
Edward Island, Hon. Wm. H. Pope, M. P. P.,
Colonial Secretary. The party sailed for
St. Thomas, West Indies, and there divided
into two; Messrs. Dunscombe, Levisconte, and
Pope going to Brazil, and the others visiting
the West Indies. The services of a war-steamer
were placed at the disposal of the latter body
by the admiralty. The commissioners were
instructed to report "the nature and extent of
the productions of the respective countries they
visited," and particulars as to their "trade,
tariffs, and all other burdens imposed upon
commerce, the ordinary prices current," etc.,
and to offer suggestions tending to remove ob-
structions to the rapid increase of direct trade
between British America and tropical regions.
In the West Indies, the commissioners made
an agreement with the Governors of Demerara,
Trinidad, the Windward Islands, the Leeward
Islands, and Jamaica, that "customs, duties,
and port charges on the produce and shipping
of the respective colonies, should be levied
solely for revenue purposes, and for the main-
tenance of indispensable establishments; and
that the several governments will be prepared
to consider, in a liberal spirit, any complaint hav-
ing reference to imposts that may be preferred
by another government, on the ground that
such imposts are calculated to obstruct trade."
They also made a conditional agreement to aid
in the establishment of improved postal com-
munication. In Brazil the commissioners hast-
ened the throwing open of the coasting trade
of the empire, and other concessions were
promised, to follow, in due time, the close of
the war with Paraguay. On their return, the
commissioners submitted to the Provincial
Parliament a report containing the desired de-

tails of information, and offered the following suggestions:

1. To establish promptly a line of steamers suitable for the carriage of mails, passengers, and freight, between Halifax, Nova Scotia, and St. Thomas, in the West Indies, touching (until the completion of the Intercolonial Railway) at Portland, in the United States, so as to insure regular semi-monthly communication between the ports mentioned.

2. To make a convention or agreement with the postal authorities of the United States for the prompt transmission of letters, etc., from Canada and the which leaves the ports of Boston or New York for maritime Provinces, by every United States mail the West Indies, Brazil, Mexico, etc., and also for the transmission through United States mails of correspondence originating in those countries.

3. To establish a weekly line of steamers between Montreal and Halifax, and to complete as soon as possible the Intercolonial Railway.

4. To procure, by reciprocal treaties or otherwise, a reduction of the duties now levied on flour, fish,

lumber, pork, butter, and other staple productions of British North America, in the West Indies, and especially in Brazil and the colonies of Spain.

5. To obtain, if possible, from the Spanish and Brazilian authorities a remission of the heavy dues now chargeable on the transfer of vessels from the British to the Spanish and Brazilian flags. 6. To procure, by negotiation with the proper authorities, an assimilation of the tariffs of the British West India colonies in respect to flour, lumber, fish, and the other staple products of British North America, a measure which would greatly facilitate view of the assimilation about to be made in the commercial operations, and may well be urged in tariffs of Canada and the maritime Provinces.

7. To promote by prudent legislation, and a sound fiscal policy, the rapid development of the great natinces, and to preserve as far as it lies in their power, the advantage which they now possess, of being able to produce at a cheaper cost than any other country, most of the great staples which the inhabitants of the tropics must procure from Northern ports.

ural resources of the British North American Prov

Fenian Disturbances.-The colonies were much agitated at times during the year by raids, actually made or expected to be made, by Fenians upon their soil. A concerted and formidable attack from that mysterious organization was anticipated on St. Patrick's day. Fourteen thousand volunteers responded to the call of the Canadian Government within twentyfour hours. The towns and villages along the frontier were strongly garrisoned. The United States authorities acted promptly to prevent an invasion across the Maine boundary. The day, which was awaited with much anxiety on both sides of the line, passed off without any hostile demonstration. The volunteers were gradually sent home. On the 1st of June, however, an in'vasion of Fenians really took place. A band of between 1,000 and 1,500, under General O'Neil, crossed in canal-boats near Buffalo and took possession of Fort Erie. Volunteers from various portions of Canada were burried forward to meet them; and on the 2d of June the battle of Limestone Ridge was fought, in which nine Canadian volunteers were killed, and a large number wounded. The volunteers retreated, and the Fenians, after remaining a short time in possession of the field, fell back, and, receiving no reënforcements, for the most

part recrossed the river into the United States. A barge filled with Fenians was captured by the United States steamer Michigan, which had been stationed off Black Rock to intercept them, but they were soon afterward released. General Grant, U. S. Army, was at Buffalo at this time, on his way westward, and took steps to prevent any more Fenians crossing. MajorGeneral Meade, U. S. Army, proceeded to Ogdensburg, and exerted himself to prevent reënforcements or arms from entering Canada from that direction. On the 7th of June the Fenians, reported from 1,000 to 1,200 strong, under General Spear, crossed the line from Franklin, Vt., to St. Armand, and proceeded to plunder the surrounding country. They were driven out on the 9th by the Canadian volunteers, and fifteen of their number captured. In the mean time, President Johnson had issued a proclamation for the maintenance of neutrality; General Sweeney and staff had been arrested by the United States authorities at St. Albans, Vt., Roberts, the Fenian President, in New York, and three Fenian colonels in Buffalo, Two car-loads of Fenians, on their way North, were put off the train at Watertown by order of General Meade. No other Fenian invasion occurred during the year. The trial of a number of Fenian prisoners took place in Toronto, in October. About half of the prisoners had already been set free, the evidence as to identity being insufficient. Two of those tried-Lynch and McMahon-were sentenced to death, but afterward respited. Other trials were held in Sweetsburg, in December. Three were sentenced to death, and three to seven months' imprisonment. The prisoners reaped the advantage of the fact that the law applying to foreign invaders was only passed on the 8th of June, and nearly all the acts of a warlike nature occurred in the two previous days. After indictment, therefore, the Governor-General instructed the crown-officer to enter a nolle prosequi against those indicted for acts performed on the 6th and 7th. (See FENIANS.) The Canadian Parliament.-Early in the session acts were passed to facilitate the trial of the Fenians in Lower Canada, by extending an Upper Canada act respecting foreigners invading the country to the eastern Province, and also to facilitate arrests of any seditious persons by the suspension of the habeas corpus act. (The Parliament of New Brunswick also suspended that act on the first day of its session after the general election.) The indemnity asked by the Government for the unauthorized expenditures for the militia was readily voted. A proposition by the finance minister to assimilate the tariff in some respects to those of the Lower Provinces, and in other respects to that of Great Britain, was, in its principal recommendations, approved and adopted. A bill relating to education in Lower Canada, designed to secure to the Protestants of that Province necessary instruction apart from the Catholics, who were a majority in the local Legislature,

was defeated; and Mr. Galt, the finance minister, who had framed the bill, felt therefore bound to resign. With regard to the local constitutions, provision was made against altering the boundaries of counties returning English-speaking members without their own consent. The new civil code of Lower Canada was passed, and went into force on the 1st of August.

On the 15th of August, Parliament was prorogued. If the course of his address to the Governor-General on that occasion, the Speaker of the Legislative Assembly said:

Immediately upon the opening of the present ses sion, the attention of the Legislature was directed by your excellency to the outrages which had been committed upon the soil of Canada by a lawless band points from the neighboring States, and assailed the of marauders, who had crossed the frontier at various lives and property of our peaceable citizens. The formidable aspect of this invasion had compelled your excellency, by the advice of your ministers, to call out for active service a large portion of the volunteer militia force of the Province, and to incur considerable expense in defending the frontier from aggression. No sooner had we returned from your excellency's presence, than, with an alacrity and unanimity unprecedented in the history of Parlia ment, the bills were passed through all their stages, for dealing summarily with all those misguided per conferring upon your excellency the necessary powers sons who had been or might be hereafter concerned in the senseless movement which is known by the name of Fenianism, and empowering the Govern tenance of law and order throughout the land. ment to act with the utmost promptness in the main

In view of the approaching change in the political condition of British North America, our attention has been seriously directed to the formation of the local governments of Upper and Lower Canada to the maritime Provinces. Resolutions embodying be connected hereafter by a federative union with the opinions of the Legislature upon this momentous question have been matured, agreed upon, and transmitted to your excellency, to be forwarded for the gradual but decided change of public opinion in New consideration of the Imperial Government. The Brunswick and Nova Scotia on behalf of a closer alliance with Canada, the favor with which the scheme of confederation has been received by the most emi nent statesmen in the mother country, and the satis faction evinced throughout these Provinces at the ready so nearly connected with us by ties of interest prospect of political union with those who are aland friendly intercourse, agree in encouraging the hope that we are about to enter upon a new era, wherein the British colonies in North America will ing the closer to the parent state because of the freebecome a great, powerful, and wealthy nation, cleav dom we enjoy under the beneficent rule of our be loved queen.

alluded to several of the most important events Lord Monck, in his speech from the throne, of the half year, as follows:

It must be a source of satisfaction to you to feel that the credit of the Province will be strengthened, the changes which have been made in the duties on and her commercial operations will be extended by imports, and other financial alterations tending to reduce the cost of living in Canada.

We may confidently expect that the effect of the tariff which you adopted will be to provide for the public wants without opening new sources of taxation, and to increase the available resources of the country by enlarging the markets for the industry

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