ately availing themselves of the power conferred upon them by the imperial government (by the act of the British Parliament called the "British possessions act") to regulate duties on the products both of foreign nations and of the mother country, the duties on American manufactures were lowered from 12 to 7 per cent., while those on British manufactures were raised from 5 to 7 per cent., thus placing the United States entirely upon a par with the mother country in this important particular.

That the feeling of disappointment to which I have alluded, and the impression that there is now no hope of placing their commercial relations with the United States on a more satisfactory and mutually advantageous footing, should have the effect of causing the Canadian legislature to retrace their steps in the liberal course which they evidently wish to pursue with regard to the commercial relations of the province with the United States, would assuredly be a subject of great regret to her Majesty's government. It could not, therefore, but be satisfactory for them to learn that the favorable consideration of the government of the United States will now be given to this subject, with a view to the negotiation of such a treaty as would secure the proposed objects, should that appear to be a course likely to insure their speedy attainment.

gov

I am the more desirous at the present moment of ascertaining the disposition of the United States government with regard to this matter, from having lately received an instruction from her Majesty's Government directing me, with the concurrence of the lieutenant ernor of New Brunswick, to negotiate with the government of the United States a convention, upon the principle of reciprocity, extending to that province also advantages similar to those proposed by the contemplated measure as regards Canada; and I am, consequently, already in communication with his Excellency Sir Edmund Head upon this subject.

It is, of course, on grounds of the interest of Canada and New Brunswick that her Majesty's government urge this measure. It is both the duty of her Majesty's government to look to those interests in the first place, and it would also be absurd to pretend that that consideration is not their governing motive. But there can be little doubt that the measure of relaxation desired by the British North American colonies on their own account would be almost, if not quite, equally advantageous to the United States, as establishing a free and unrestricted intercourse between them and the countries in question, and thereby affording a much more extended demand for United States produce than the Canadas or New Brunswick, in their present restricted power of mutual exchange, are enabled to sustain.

I am unwilling, on the present occasion, to enter into unnecessary detail; but I think that I can confidently appeal to the custom-house reports, both of the United States and Canada, to show that the exports from the United States to Canada already much exceed the imports from that province, leaving a heavy balance of trade against the latter a state of things which, if not remedied, must clearly tend to diminish, and not to increase, the profitable commercial transactions between the two countries. That a more extended use of the canals of the United States by the Canadian dealer in grain would take place on the removal of the present inconvenient custom-house formalities, cannot, I believe, be doubted. That the present state of the respective

tariffs is one which raises very vexatious and harassing impediments to the local trade in agricultural produce along a very extended frontier, and encourages the demoralizing practice of smuggling, is not to be denied; and that the removal of such restrictions would tend to promote a friendly feeling between the inhabitants of the respective frontiers and this is an object, it is not doubted, very desirable to both governments-cannot reasonably be questioned.

Without, therefore, adverting to other measures of great importance to the trade and navigation of both countries, which, should the present proposition meet with the concurrence of the United States government, it is confidently expected may be brought to bear, I venture to submit the above statement to the just and favorable consideration of the government of the United States.

I avail myself of this opportunity to renew to you, sir, the assurance of my highest consideration.

JOHN F. CRAMPTON.

Sir H. L. Bulwer to Mr. Webster.

BRITISH LEGATION,

June 24, 1851.

SIR: I have already expressed to you at different periods, and especially in my note of 22d March last, the disappointment which was experienced in Canada, when at the close of last session of Congress it was known that no progress whatever had been made in the bill which had been brought forward for three years successively for reciprocating to the measure which passed the Canadian legislature in 1847, and which granted to the natural produce of this country an entry free of duty into Canada whensoever the Federal Legislature of the United States should pass a measure similarly admitting into the United States the natural produce of the Canadas. This disappointment was the greater, inasmuch as the Canadian government has always adopted the most liberal commercial policy with respect to the United States, as well in regard to the transit through its canals, as in regard to the admission of manufactured goods coming from this country.

I have now the honor to enclose to you the copy of an official communication which I have received from the governor-general, Lord Elgin, by which you will perceive that unless I can hold out some hopes that a policy will be adopted in the United States similar to that which has been adopted in Canada, and which the Canadian authorities would be willing, if met in a corresponding spirit, to carry out still farther, the Canadian government and legislature are likely forthwith to take certain measures, which, both in themselves and their consequences, will effect a considerable change in the commercial intercourse between the Canadas and the United States.

I should see with great regret the adoption of such measures, and I am induced to hope, from the conversations I have recently had with you, that they will be unnecessary.

The wish of her Majesty's government indeed would be rather to improve than impair all relations of friendship and good neighborhood between her Majesty's American possessions and the United States; and I feel myself authorized to repeat to you now, what I

have at different times already stated to Mr. Clayton and yourself, viz. that her Majesty's government would see with pleasure any arrangement, either by treaty or by legislation, establishing a free interchange of all natural productions not only between Canada and the United States, but between the United States and all her Majesty's North American provinces; and furthermore, I am willing to say that in the event of such an arrangement, her Majesty's government would be ready to open to American shipping the waters of the river St. Lawrence with the canals adjoining, according to the terms of a letter which I addressed to Mr. Clayton on 27th March, 1850, for the information of the Committee on Commerce in the House of Representatives, and to which I take the liberty of referring you, whilst I may add that her Majesty's government would in this case be likewise willing to open to American fishermen the fisheries along the coast of Nova Scotia and New Brunswick, according to the conditions specified in the enclosed extract from instructions with which I am furnished.

The willingness to grant to American citizens on such reasonable conditions two important privileges so long enjoyed exclusively by the subjects of Great Britain, will testify clearly to the spirit by which the British government is on this occasion animated; and as affairs have now arrived at that crisis in which a frank explanation of the views of either party is necessary for the interests and right understanding of both, I take the liberty of begging you to inform me whether you are disposed, on the part of the United States, to enter into such a convention as will place the commercial relations between the United States and her Majesty's North American colonies on the footing which I have here proposed; or whether, in the event of there appearing to you any objection to proceed by convention in this matter, you can assure me that the United States government will take the earliest opportunity of urgently recommending Congress to carry out the object aforesaid by the means of legislation.

I avail myself of this opportunity to renew to you the assurance of my highest consideration.

Hon. DANIEL WEBSTER, &c., &c., &c.

[Inclosure.]

H. L. BULWER.

Lord Elgin and Kincardine to Sir H. L. Bulwer.

GOVERNMENT HOUSE,
Toronto, June 7, 1851.

SIR: I have the honor to transmit for your excellency's information the copy of a memorandum and accompanying documents, which has been submitted to me by the Honorable Mr. Hincks, inspector-general of public accounts in this province, on the subject of the closing of the Canadian canals to foreign vessels. You are, I believe, aware that a measure, such as that recommended by Mr. Hincks, has been for some time contemplated by the Canadian Government.

I have been most unwilling to have recourse to it, more particularly after the representations made by the gentlemen from Oswego, who visited this city some time ago.

The discussion which took place in the legislative assembly last evening, to which Mr. Hincks refers in his memorandum, indicates,

however, very clearly, the direction which public opinion is taking on these questions, and I cannot conceal from your excellency my belief that, unless you are enabled to give me some assurance that negotiations with the government of the United States are in progress, which are likely to result in placing the commercial relations between the provinces and the United States on a more satisfactory footing, it will not be in my power any longer to refrain from adopting the steps which the inspector-general suggests, and which may, I think, very probably be followed up by others calculated to check the trade between British North America and the United States.

Under these circumstances, I deem it my duty to invite your excellency's attention to the documents which I herewith enclose, and to request you will, at your earliest convenience, furnish me, for my guidance, with such information respecting the views of the government of the United States as it may be in your power to give.

I have, &c.,

ELGIN AND KINCARDINE. The Rt. Hon. Sir HENRY L. BULWER, G. C. B., &c., &c., &c.

[Annex 1 to foregoing.]

The papers alluded to in this despatch, are:

1st. Memorandum from Mr. Hincks to the Governor-General of Canada, recommending that the canals should be closed to foreign shipping, in regard to which no immediate steps were taken in consequence of the expected arrival of a deputation from Oswego, to confer with the Governor-General on this subject.

2dly. Memorandum subsequent to the arrival of said deputation, recommending that the canals should be closed, unless the British minister at Washington could give some assurance that the trade between Canada and the United States is likely to be placed on a more satisfactory footing.

3dly. Resolutions about to be proposed by the Hon. Mr. Robinson, to the effect that a duty of twenty per cent. should be levied on American goods, and that a system of differential duties should be returned to, encouraging importers to bring their goods into Canada, via St. Lawrence, instead of through the United States.

4thly. Resolutions about to be proposed by the Hon. Mr. Merritt, that her Majesty be prayed to recommend to her Imperial Parliament to enact that similar duties should be imposed on foreign produce (as enumerated in schedule A herewith appended) imported into Great Britain and her dependencies, as are levied on British produce in those foreign countries.

SCHEDULE A.

Grain, and breadstuffs of all kinds, vegetables, fruits, seeds, animals, hides, wool, cheese, tallow, horns, salted and fresh meats, ores of all kinds of metals, plaster of paris in stone or ground, ashes, timber, staves, wood, and lumber of all kinds.

[Annex 2 to foregoing.]
[Extract.]

"Her Majesty's government are prepared, on certain conditions and with certain reservations, to make the concession to which so much importance seems to have been attached by Mr. Clayton, namely: to throw open to the fishermen of the United States, the fisheries in the waters of the British North American colonies, with permission to those fishermen to land on the coast of those colonies for the purpose of drying their nets and curing their fish; provided, that in so doing, they do not interfere with the owners of private property, or with the operations of British fishermen. Her Majesty's government, however, would require as an indispensable condition, in return for this concession, that all fish, either cured or fresh, imported into the United States from the British North American possessions in vessels of any nation or description, should be admitted into the United States duty free, and upon terms, in all respects, of equality with fish imported by citizens of the United States."

N. B. As the concession above stated applies solely to the sea fishery, the fisheries in estuaries and in the mouths of rivers are not, of course, included.

Her Majesty's government do not propose that any part of this arrangement should apply to Newfoundland.

Extracts from the journal of the legislative assembly of Newfoundland, 1844.

Address to the Queen.

WEDNESDAY, APRIL 24, 1844.

To the QUEEN'S MOST EXCELLENT MAJESTY.

MAY IT PLEASE YOUR MAJESTY,

We, Your Majesty's most dutiful and loyal subjects, the General Assembly of Newfoundland, in Legislative Session convened, approach Your Majesty with sentiments of sincere and affectionate attachment to Your Majesty's person and Government, and humbly crave Your Most Gracious Majesty's attention to the condition of this ancient appendage to Your Majesty's crown.

The value of the Trade and Fisheries of Newfoundland has for centuries been acknowledged by the Government of England, as a nursery for seamen wherewith to man Your Majesty's navy; its extreme importance has ever been recognized in time of peace, and realized in time of war.

Its insular situation-the multitude of its safe and commodious harbours the healthfulness of its climate-and its proximity to Great Britain, whilst it is the key to the western world must ever make the maintenance and prosperity of this Colony a matter of national importance.

The inexhaustable mine of wealth in her seal and cod fisheries which a bountiful providence has opened to the enterprise and industry of her people, would enable Newfoundland to assume and preserve that rank in Your Majesty's Colonial possessions to which she is entitled had she been permitted to enjoy the full use and benefit