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of the people. I am particularly gratified that you have enabled me to make provision for those who have suffered by the loss of relatives, or have been wounded during the late attack on the Province. This act is a just tribute, on your part, to the patriotism of the men upon whom devolves the defence of the Province, and will prove to the survivors that they do not serve an ungenerous or ungrateful coun

try.

ticulars.

The votes for purposes of public defence are on a scale which will enable the Government to improve the efficiency of the volunteers in armament, equipment, and drill, and no exertions shall be wanting to apply your grants with effect in each of these parI rejoice that you have completed your part for the union of the colonies of British North America, and I shall not fail to transmit to the Secretary of State for the Colonies, for presentation to her majesty, your address on this subject. In bringing to a close the last session likely to be held under the act for the union of the two Canadas, I congratulate the

erate Parliament. This was the only possible answer, but it was a severe disappointment, nevertheless, to the friends of confederation in Prince Edward Island. Mr. Howe, with Mr. Annand, had followed the Nova Scotian delegates to England, carrying with them a petition from the anti-confederates of that Province.

A London correspondent of La Minerve states that the leading men of both the great parties in England express approval of the project of confederation, and that it is understood the bill to give it effect would be taken up early in the next session of Parliament, so as to be put into operation in the Provinces in the spring.

Agitation for Annexation to the United States. A large meeting was held in Kingston, C. W., Parliament which that law called into existence on November 21st, at which a resolution was the retrospect afforded by the events of the last adopted calling upon the Canadian people to quarter of a century in this Province. You can mark agitate for annexation to the United States. during the period the firm consolidation of your institutions, both political and municipal, the extended On the 25th of November the Rev. J. Allen settlement of your country, and the development of preached in the Episcopal cathedral, to a large your internal resources and foreign trade, the im- audience, in favor of that measure. It is stated provement and simplification of your laws, and above that a strong annexation feeling exists among all the education which the adoption of the system the people in the Canadian peninsula between of responsible government has afforded your statesmen in the well-tried ways of the British constitution. Detroit and Niagara. At the Kingston meeting allusion was made to a bill presented by General Banks, in Congress, on the 2d of July, and on its second reading referred to the Committee on Foreign Affairs. The history of this bill has been thus stated:

Confederation.-After securing votes in favor of union and authority to go, from both Legislatures, the colonial delegates from New Brunswick and Nova Scotia left at midsummer for England to perfect the final arrangements for colonial union (Prince Edward Island and Newfoundland declining to send any), expecting the Canadian delegates to follow very shortly. But the session of Parliament was much longer than was anticipated, and during the autumn threats of renewed invasion were pretty constant. It was felt that at such a time the Governor-General and his chief advisers ought not to be absent from the country. There was, besides, a great deal of business to be transacted by the Executive Council which had fallen into arrears during the March and June panic and invasion, and there were the measures passed during the late session to be set in operation. These detained the Canadian ministers who were named delegates until November, and the Governor-General himself until December. Meanwhile the Eastern delegates were urgently calling for the presence of their Canadian colleagues, but busying themselves with doing every thing possible to forward the business of their embassy. Out of their conferences there-the premier of Prince Edward Island being also in London on other businessbe an offer of a subsidy to the island to enble it to change its land tenure by purchasing proprietary rights. This was sent to the CaCadian Government for its concurrence, but the ter replied that it could not concur without the consent of Parliament, which had already en. They would, however, if found desirble on further consultation, recommend it to the favorable consideration of the first Confed

* *

*

In the closing days of March there was introduced into the House a long resolution calling on the Secretary of the Treasury for a statement of the trade of the British Provinces in 1864 and 1865, respectively, be in his possession calculated to assist in correctly "together with such information as may estimating the trade resources of said Provinces and their relations to the trade and productions of the United States." The direct object of this inquiry treaty question; the indirect object was to give some was to bring out matter bearing upon the reciprocity official form to the vague and chaotic ideas afloat regarding the annexation of the Provinces.

The reply to this resolution was laid before the brief, but it encloses a document prepared, under his House a month ago. The Secretary's letter is very direction, by Mr. James W. Taylor, special agent of the Treasury Department of the Minnesota District. "The closing pages of this paper," says the Secretary, "contain some views upon the political relations of the United States and British America, upon which I am not prepared to express an opinion at this time, but to which I invite the attention of the House of Representatives."

Mr. Taylor, in concluding the first branch of his report, says: "Of the relations of the United States and British America, it is evident that both communities are equally interested in two great objects: 1. An ocean navigation from the Gulf of St. Lawrence to Lakes Superior and Michigan; and, 2. An international railroad from Halifax to the North Pacific coast, on a route central to the forests of formation of Lake Superior, the wheat-growing plains New Brunswick, Maine, and Canada, the mineral of Minnesota, and the Saskatchewan valley, and the gold districts of British Columbia." The present situation of these two great interests is then briefly considered. "The problem," he says, " of which every Northwestern State ardently seeks the solution, is such immediate construction of new or enlargement of existing canals as wil pass vessels of fifteen

hundred tons' burden, without breaking bulk, from the Gulf of St. Lawrence or the harbor of New York to Chicago or Superior. At present the Superior canal is alone sufficient, as the Welland can only pass a vessel of 400 tons, and the St. Lawrence canals can pass a vessel of only 300 tons. The New York canals are of less capacity.

In this connection the report brings forward numerous figures showing the trade between Chicago and the lake country on the one hand, and the East and Europe on the other; and finally adds that experience has proved that freight charges from Chicago often cover seven-eighths of the value of a bushel of corn, and more than half the value of wheat at Liverpool. It is believed that the enlargement of the Welland and St. Lawrence canals would reduce the cost of grain transportation between the two points fully one-half.

The International Railway project is also discussed, though but briefly. Mr. Taylor believes that a St. Lawrence and Pacific road, even if aided by liberal allotments of land along its line, will require at this time a Government subsidy of at least $100,000,000; and he does not anticipate that England would assume any material portion of such an obligation; while the Province, even if confederated on the plan somewhat agitated within the last two years, would be utterly unable to undertake such a work during this century.

This abstract brings the report down to the "political views," upon which the Secretary does not now express an opinion. They are summed up in a single sentence, as follows: "I cannot resist," says Mr. Taylor, "the conclusion that events have presented to the people and Government of the United States the opportunity-let me rather say, have devolved the duty-of interposing by an overture to the people of the English colonies on this continent, of course upon the fullest consultation with the Government of Great Britain, to unite their fortunes with the people and the Government of the United States."

This is followed by the draft of "An act for the admission of the States of Nova Scotia, New Bruns wick, Canada East, and Canada West, and for the organization of the Territories of Selkirk, Saskatchewan, and Columbia." This is, word for word, the annexation bill with which the name of Gen. Banks has become connected. The Secretary's report, embodying this act, was sent to the Committee on Foreign Affairs, of which Gen. Banks is chairHe was directed to report the bill and have it recommitted, simply to get it before the committee and the country. That action neither commits him nor his committee to the annexation project, nor to the scheme of this bill. What, now, is the scheme as developed in this bill?

man.

It proposes twelve articles, on the adoption of which the Provinces shall become members of the Federal Union. These define the limits of the new States and Territories, fix the Congressional representation of the States till the census of 1870, convey to the United States all public property of the Provinces, bind the Government to assume and discharge their funded debt and contingent liabilities to the amount of $85,700,000, guarantee $10,000,000 to the Hudson Bay Company in full discharge of all claims to territory or jurisdiction, require a survey of the public lands according to our system, etc. Of course its principal feature is the internal improvement project suggested in Mr. Taylor's letter. This lies in the three following articles:

ARTICLE VII. The United States, by the construction of

new canals, or the enlargement of existing canals, and by the improvement of shoals, will so aid the navigation of the St. Lawrence River and the great lakes that vessels of fifteen hundred tons' burden shall pass from the Gulf of St. Lawrence to Lakes Superior and Michigan: Provided, That the expenditure under this article shall not exceed $50,000,000. ARTICLE VIII. The United States will appropriate and pay to the European and North American Railway Company of Maine" the sum of $2,000,000 upon the construction

of a continuous line of railroad from Bangor, in Maine, to St. John, in New Brunswick: Provided, "The said European and North American Railway Company of Maine" shall release the Government of the United States from all claims held by it as assignee of the States of Maine and Massachusetts.

ARTICLE IX. To aid the construction of a railway from Truro, in Nova Scotia, to Rivière du Loup, in Canada East, and a railway from the city of Ottawa, by way of Sault St. Marie, Bayfield, and Superior, in Wisconsin, Pembina, and Fort Garry, on the Red River of the North, and the valley of the North Saskatchewan River, to some point on the Pacific Ocean north of latitude 49 degrees, the United States will grant lands along the lines of said roads to the amount of twenty sections, or 12,800 acres per mile, to be selected and sold in the manner prescribed in the act to aid the construction of the Northern Pacific Railroad, approved July 2, 1582, and acts amendatory thereof; and in addition to said grants of lands, the United States will further guarantee dividends of five per cent, upon the stock of the company or compa nies which may be authorized by Congress to undertake the construction of said railways: Provided, That such guaranty of stock shall not exceed the sum of $80,000 per mile, and Congress shall regulate the securities for advances on account thereof.

The Red River Settlement.-The Red River settlement now contains a population of about 10,000, distributed over a territory whose ra dius is about sixty miles. The centre of business is at the town of Winnipeg, which is the seat of government of the Hudson Bay Company, and their headquarters; Fort Garry is also there. The settlement was represented last summer to be in a prosperous condition, the farmers being much more independent and comfortable than in the newer settled portions of Canada. Many of them cultivate 300 or 400 acres, and have 80 to 100 head of cattle and horses. All the teaming and transport business is done with carts and cattle. Over 4,000 cartRed River country by way of St. Pauls (Minn.) loads of English merchandise came into the last summer, returning with furs as soon as loads could be obtained. Specimens of the agricultural and mineral resources of the country were sent to the Paris Exhibition. Much interest was felt throughout the settlement in the success of the confederation scheme, and a public meeting was held in Winnipeg in Decem ber, to memorialize the Imperial Government in behalf of that measure, and also to express a desire to act in unity and cooperation with the neighboring colonies of Vancouver and British Columbia to further British interests and confederation from the Atlantic to the Pacific.

The Copper-Mines of Canada.—“ Hunt's Merchants' Magazine" for October, 1866, contains an account of these mines. The Bruce mines, Lake Huron, owned by the Montreal Mining Company, have yielded, since their opening, in 1847, about 9,000 tons of 18 per cent. copper. In 1861, 472 tons of 17 per cent. were taken out. The deepest working is 50 fathoms from the surface, and the number of men employed 34. The Acton mine, lot 32, range 3, had yielded, up to 1861, about 6,000 four weeks work, in 1859, about 300 tons of ore, tons, averaging 17 per cent. During the first containing nearly 30 per cent., were quarried in open cuttings, and without making much impression on the quantity in sight. The ground has been worked on the general slope of the bed to the depth of about 10 fathons. The

Upton mine, Upton, lot 51, range 20, has yielded 14 per cent. copper. The quantity of rock excavated is not stated. Bissonet mine, Upton, lot 49, range 20, exhibits a bed of 3 feet thick, and the ore lies in disseminated masses of various sizes up to 20 inches long by 6 to 9 inches thick. It is estimated that the bed would yield from half to three-fourths of a ton of 10 per cent. ore to a fathom. In the Wickham mine, Wickham, lot 15, range 10, an experimental shaft has recently been sunk to a depth of about five fathoms, in which good bunches of ore have been met with. About 4,000 tons have been taken out, yielding 30 per cent. The Yales mine, Durham, lot 21, range 7, has been opened to a depth of from two to six fathoms, revealing good lumps of ore, mixed with calespar and wall rock. At St. Flavière, about five leagues above the Chaudière, and two leagues from the St. Lawrence, is the Black River mine. In one spot native copper occurs in small masses; and the whole band has a striking resemblance to the upper copperbearing series of Lake Superior. At Harvey's Hill mines, Leeds, lot 18, range 15, there occurs in a breadth of about 1,000 feet eight courses, composed chiefly of quartz, with various proportions of bitter spar, chlorite, and calespar, carrying in parts as much as two tons of 20 per cent. ore to a fathom. The rock of the country is a talcoid mica slate. An adit level is being driven through this slate, of the length, when completed, of 220 fathoms. The number of men employed is about 50; but the quantity of ore taken out is not given. At the St. Francis mine, Cleveland, lot 25, range 12, the bed has an average thickness of three feet, and has been traced a distance of 90 fathoms. The monthly yield of ore is about 55 tons of 10 per cent. The Huntington mines at Bolton yield about 10 tons of 10 per cent. ore per fathom. The ores of all these mines are the yellow, variegated, and vitreous sulphurets, mixed in some instances with copper pyrites.

Gold Mines of Canada.-In Canada, the gold-mining operations have been principally carried on in the Chaudière division, in alluvial diggings on the Gilbert River, in the Seigniory of Rigaud Vaudreuil (De Léry). About fifty men were working there at the date of the last report (June, 1866). One or two companies are about erecting mills for quartz-crushing. The gold hitherto extracted is estimated as follows:

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gold-bearing quartz veins have been discovered of sufficient richness to pay a handsome profit on the cost of crushing and separating.

Gold-Mines of Nova Scotia.-The productiveness of these mines appears to be permanent. They are worked under the direction of the Commissioner of Mines, and the Government reserves a royalty of three per cent. on the gross receipts. The following is the commissioner's report of the number of hands employed in the gold-mines, the tons of quartz raised and crushed, and the daily yield of gold per man employed, from 1862 to 1865 inclusive:

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$50,000

5,000

1865.

150,000

1864.

100,000

1863.

1862.

The probable falling off in 1866 is explained by the prevailing excitement with regard to quartz crushing, which caused an abandonment of alluvial operations. The largest Luggets found in the Chaudière valley have been worth $300, and most of the alluvial gold has been obtained in a limited area. In that district, and also in other parts of Canada East,

DAILY YIELD OF GOLD PER MAN.

It also appears from the commissioner's report that the aggregate amount of gold upon which royalty was paid in 1865 exceeded that of the preceding year by about 33 per cent., amounting to 24,687 ozs. for the former period, and 18,744 ozs. for the latter, showing an increase of 6,123 ozs. There is also an increase

of the average yield of gold to the ton of quartz of about five per cent., and a very considerable advance in the amount of the yield for each man engaged in mining. The value of gold produced in 1865 was $509,080 (paying $18,038 in rents and royalties); in 1864, $400,440; in 1863, $280,020, and in 1862, $145,500.

Immigration.-The total immigration into Canada, in 1865, at all points, with an approximate estimate of the distribution of the immigrants, is reported as follows: Landed at Quebec in 1865, 19,795 steerage passengers, of whom there remained in Canada

Arrived in Canada from the States, by Suspension Bridge and Detroit, as per return of Hamilton Agent, 25,748, of whom there remained in Canada..

By steamers on Lake Ontario, from Rochester and Oswego, as per return of Toronto Agent.....

4,577

11,276

68

By steamers from Oswego and Cape St. Vin-
Number who reached the Ottawa Agency, as
cent, as per return of Kingston Agent..... 1,445
per return of Mr. Wells......

By Lake Champlain to Montreal, as per return
of Mr. Daley...

By steamers from Portland, from 1st January
to 27th April.........
By steamers from Portland, from 23d Novem-
ber to 31st December...

The Coal-Fields of Nova Scotia.-The most important coal-fields of this province are in Cumberland County, lying in the immediate vicinity of the Bay of Mines; those upon the Gulf of St. Lawrence, of which Pictou is the centre; and those of the eastern part of Cape Breton, contiguous to the harbor of Sydney. The Cumberland coal-fields have been but slightly worked, the largest veins being some twelve miles' distance from navigable waters. At Pictou, the coal-fields lie immediately upon tide-water. One of the veins has a thickness of 36 feet, more than 26 feet of workable coal. The deposits near Sydney have been found to underlie 250 square miles, an area nearly equal to the entire workable area of the anthracite coal-fields of Pennsylvania. An excellent harbor is contiguous to them, with which the more important veins will soon be connected by railway. As soon as the necessary works can be completed, the supply from the above-mentioned mines can be made equal to any possible demand. It is estimated that 50,000,000 tons of coal can be raised from them without going below water-level. There are several other deposits in Cape Breton, which have been only slightly worked. The following statements, taken from Mr. Taylor's special report to the 1865.. United States Treasury Department (from which the facts above given have been gathered) show the amount of coal raised and sent to market from Nova Scotia for ten years, up to the end of 1865:

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Total remaining in Canada... Of which number about 16,000 appear to have settled in Upper Canada, and the remainder in Lower Canada.

193

624

610

164

18,958

Commercial.-The Montreal Gazette gives a comparative statement of the imports and exports from that port for the years 1865 and 1866, as follows:

1866.

YEARS.

Increase....

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The Montreal Gazette gives the following as the amount of produce shipped from Portland into various provincial ports since the abrogation of the reciprocity treaty up to December 31, 1866:

In reference to the subject of coal-mining the chief Commissioner of Mines, Mr. Hamilton, says: "There are now 30 collieries in operation in Nova Scotia. Some of these are only barely opened, but, with one or two exceptions, works are vigorously prosecuted in all of them, and with good prospects of great and early extension at an early day. In addition to the territory of the General Mining Association, there are now 31 square miles of territory under coal-mining leases. The extent of acres under license amounts to 1,920 square miles. The spirit and activity exhibited in carrying on explorations upon the greater number of these areas under license, and the success which, in many instances, attends such explorations, indicate an early and important increase in the number of collieries in Nova Scotia."

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IMPORTS INTO CANADA FOR THE FISCAL YEAR ENDING JUNE 80, 1866.

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EXPORTS FROM CANADA FOR THE FISCAL YEAR ENDING JUNE 30, 1866. TO BRITISH COLONIES.

ARTICLES.

Total Value. Great Britain.

North
America.

West Indies.

United States.

France.

Germany.

Other
Foreign Countries.

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ton

Total value of exports.

Fifty-eight vessels built at Quebec, during the fiscal year ending 30th June, 1866. Thirty-eight: 27,258 tons, at $40 per ton; and twenty: 13,857 tons, at $38 per

48,639,966

11,890,155

1,571,116

63,993

84,770,261

111,692

32,035

700,714

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