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wish to dispose of a bill, the more currency I get for it the better for me.

The Americans by taking cash out of the country, increase the value of what remains, and the exchange falls. It has sometimes fallen so low, that sterling has been given for currency, whereby drawers of bills suffered a loss of 11 per cent.

In New York and Boston, the exchange on Britain is in general high, that is to say, bills on London bear a premium, sometimes as much as eight per cent. For a 1007. bill, you get currency corresponding to 1087. Cash is more plentiful than bills. -In Canada it is quite the reverse; and when the exchange is, in consequence, low, it becomes extremely advantageous for the holders of cash, in Boston and New York, to send it to Canada for the purchasing of bills (which they get at a discount), rather than purchase bills at home, which are sold at a premium. Thus the cash carried out of Canada by one set of men, is brought back again by another set. In consequence of which, the exchange in Canada approaches par, and the circulating medium regains its level.

Government, as well as individuals, who have occasion to draw bills in Canada, suffer very heavy losses by the discount on bills. I cannot help thinking that it would be a very easy matter for government to prevent any great loss by exchange. All they have to do is to keep themselves advised of the state of exchange in NewYork, and draw at three or four per cent. more favourable for the holders of cash than the course at New-York offers. There can be no doubt that the cash would immediately come into Canada. Instead of government bills in Canada being at a discount of seven or eight per cent. they would rarely be below par; for in New-York bills in general bear a premium sufficiently high to induce the holders of cash to carry it to Canada for government bills, at par, or very little below it. The expence of bringing in cash from New-York, to Quebec or Montreal, is not above three to three and a half per cent. insurance included. The risks to be insured against are, thieves, and the danger of loss in crossing lakes and rivers*.

* Very large sums are brought in from the States. In summer the conveyance by land is in a carriage, and

In casting one's eye over the articles which Canada receives from America, it is evident that almost every one of them might be produced in Canada, or imported from Britain and her colonies, if the trade were under proper regulations.

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By the treaty of amity, navigation, and commerce, with the United States, in 1794, it is provided in the third article, "that all goods and merchandize, whose importa"tion into his said Majesty's territories in "America shall not be entirely prohibited, may freely, for the purposes of commerce, "be carried into the same, in the manner

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aforesaid, by the citizens of the United "States; and such goods and merchandize "shall be subject to no higher or other duties "than would be payable by his Majesty's

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subjects on the importation of the same

on the lake, and crossing the St. Lawrence a canoe is used. In winter, the land carriage is a sleigh, and the same conveyance is used on the lake, and on the river, as soon as the ice is strong enough. From 20 to 30,0001. have been brought in at one time by one man, openly enough to convince the people that it was money; yet I have never heard that any robbery has been committed; which is saying a great deal for the honesty of both the Americans and Canadians.

from Europe into the said territories: and "in like manner all goods and merchan"dize, whose importation into the United "States shall not be wholly prohibited,

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may freely, for the purposes of commerce, "be carried into the same, in the manner "aforesaid, by his Majesty's subjects; and "such goods and merchandize shall be

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subject to no higher or other duties than “would be payable by the citizens of the "United States on the importation of the 66 same in American vessels into the At"lantic ports of the said States."

This clause carries with it an appearance of reciprocal advantage to Great Britain and America; but there is in fact no reciprocity in it. Why adopt the duties laid on by us on goods imported by the river St. Lawrence, as the measure of reciprocal charge on the introduction of goods from America by the line of boundary? If the British government, or provincial legislature, think proper to allow their own merchants to import certain articles by the river St. Lawrence, free of duty, are the Americans to say, you must allow us to import the same articles on the same terms by way of Lake

Champlain ;-they certainly ought not to be allowed to say so, nor to do so. Cogent reasons may exist for the one, and not for the other.

The object to be attended to,-the justice of the case, is reciprocity of duties on the goods which pass from the one country to the other. It may suit the policy of Britain that no duties be charged on certain articles shipped by her merchants for Canada, and at the same time be very contrary to her interest or wishes, that the Americans also, should be allowed to send the same articles to Canada, free of duty. Whatever duties are charged on goods coming from one side of the line, may be charged on goods coming from the other, if thought adviseable: here the reciprocity would be perfect.

The Americans lay a duty of about 15 per cent. on almost every thing they get from Canada, while they annually send into Canada goods to near three times the amount, on which no duties are paid.

Formerly, Canada was supplied with teas, cotton goods, silk, and all other East India articles by the British merchant, but

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