CHAPTER IX

CANADA AND THE UNITED STATES

In a long letter which he wrote to Earl Grey in August, 1850, Lord

Elgin used these significant words: "To render annexation by violence

impossible, or by any other means improbable as may be, is, as I have

often ventured to repeat, the polar star of my policy." To understand

the full significance of this language it is only necessary to refer

to the history of the difficulties with which the governor-general had

to contend from the first hour he came to the province and began his

efforts to allay the feeling of disaffection then too prevalent

throughout the country--especially among the commercial classes--and

to give encouragement to that loyal sentiment which had been severely

shaken by the indifference or ignorance shown by British statesmen and

people with respect to the conditions and interests of the Canadas. He

was quite conscious that, if the province was to remain a contented

portion of the British empire, it could be best done by giving full

play to the principles of self-government among both nationalities who

had been so long struggling to obtain the application of the

parliamentary system of England in the fullest sense to the operation

of their own internal affairs, and by giving to the industrial and

commercial classes adequate compensation for the great losses which

they had sustained by the sudden abolition of the privileges which

England had so long extended to Canadian products--notably, flour,

wheat and lumber--in the British market.

Lord Elgin knew perfectly well that, while this discontent existed,

the party which favoured annexation would not fail to find sympathy

and encouragement in the neighbouring republic. He recalled the fact

that both Papineau and Mackenzie, after the outbreak of their abortive

rebellion, had many abettors across the border, as the infamous raids

into Canada clearly proved. Many people in the United States, no

doubt, saw some analogy between the grievances of Canadians and those

which had led to the American revolution. "The mass of the American

people," said Lord Durham, "had judged of the quarrel from a distance;

they had been obliged to form their judgment on the apparent grounds

of the controversy; and were thus deceived, as all those are apt to be

who judge under such circumstances, and on such grounds. The contest

bore some resemblance to that great struggle of their own forefathers,

which they regard with the highest pride. Like that, they believed it

to be the contest of a colony against the empire, whose misconduct

alienated their own country; they considered it to be a contest

undertaken by a people professing to seek independence of distant

control, and extension of popular privileges." More than that, the

striking contrast which was presented between Canada and the United

States "in respect to every sign of productive industry, increasing

wealth, and progressive civilization" was considered by the people of

the latter country to be among the results of the absence of a

political system which would give expansion to the energies of the

colonists and make them self-reliant in every sense. Lord Durham's

picture of the condition of things in 1838-9 was very painful to

Canadians, although it was truthful in every particular. "On the

British side of the line," he wrote, "with the exception of a few

favoured spots, where some approach to American prosperity is

apparent, all seems waste and desolate." But it was not only "in the

difference between the larger towns on the two sides" that we could

see "the best evidence of our own inferiority." That "painful and

undeniable truth was most manifest in the country districts through

which the line of national separation passes for one thousand miles."

Mrs. Jameson in her "Winter Studies and Summer Rambles," written only

a year or two before Lord Durham's report, gives an equally

unfavourable comparison between the Canadian and United States sides

of the western country. As she floated on the Detroit river in a

little canoe made of a hollow tree, and saw on one side "a city with

its towers, and spires, and animated population," and on the other "a

little straggling hamlet with all the symptoms of apathy, indolence,

mistrust, hopelessness," she could not help wondering at this

"incredible difference between the two shores," and hoping that some

of the colonial officials across the Atlantic would be soon sent "to

behold and solve the difficulty."

But while Lord Durham was bound to emphasize this unsatisfactory state

of things he had not lost his confidence in the loyalty of the mass of

the Canadian people, notwithstanding the severe strain to which they

had been subject on account of the supineness of the British

government to deal vigorously and promptly with grievances of which

they had so long complained as seriously affecting their connection

with the parent state and the development of their material resources.

It was only necessary, he felt, to remove the causes of discontent to

bring out to the fullest extent the latent affection which the mass of

French and English Canadians had been feeling for British connection

ever since the days when the former obtained guarantees for the

protection of their dearest institutions and the Loyalists of the

American Revolution crossed the frontier for the sake of Crown and

empire. "We must not take every rash expression of disappointment,"

wrote Lord Durham, "as an indication of a settled aversion to the

existing constitution; and my own observation convinces me that the

predominant feeling of all the British population of the North

American colonies is that of devoted attachment to the mother country.

I believe that neither the interests nor the feelings of the people

are incompatible with a colonial government, wisely and popularly

administered." His strong conviction then was that if connection with

Great Britain was to be continuous, if every cause of discontent was

to be removed, if every excuse for interference "by violence on the

part of the United States" was to be taken away, if Canadian

annexationists were no longer to look for sympathy and aid among their

republican neighbours, the Canadian people must be given the full

control of their own internal affairs, while the British government on

their part should cease that constant interference which only

irritated and offended the colony. "It is not by weakening," he said,

"but strengthening the influence of the people on the government; by

confining within much narrower bounds than those hitherto allotted to

it, and not by extending the interference of the imperial authorities

in the details of colonial affairs, that I believe that harmony is to

be restored, where dissension has so long prevailed; and a regularity

and vigour hitherto unknown, introduced into the administration of

these provinces." And he added that if the internal struggle for

complete self-government were renewed "the sympathy from without would

at some time or other re-assume its former strength."

Lord Elgin appeared on the scene at the very time when there was some

reason for a repetition of that very struggle, and a renewal of that

very "sympathy from without" which Lord Durham imagined. The political

irritation, which had been smouldering among the great mass of

Reformers since the days of Lord Metcalfe, was seriously aggravated by

the discontent created by commercial ruin and industrial paralysis

throughout Canada as a natural result of Great Britain's ruthless

fiscal policy. The annexation party once more came to the surface, and

contrasts were again made between Canada and the United States

seriously to the discredit of the imperial state. "The plea of

self-interest," wrote Lord Elgin in 1849, "the most powerful weapon,

perhaps, which the friends of British connection have wielded in times

past, has not only been wrested from my hands but transferred since

1846 to those of the adversary." He then proceeded to contrast the

condition of things on the two sides of the Niagara, only "spanned by

a narrow bridge, which it takes a foot passenger about three minutes

to cross." The inhabitants on the Canadian side were "for the most

part United Empire Loyalists" and differed little in habits or modes

of thought and expression from their neighbours. Wheat, their staple

product, grown on the Canadian side of the line, "fetched at that time

in the market from 9d. to 1s. less than the same article grown on the

other." These people had protested against the Montreal annexation

movement, but Lord Elgin was nevertheless confident that the large

majority firmly believed "that their annexation to the United States

would add one-fourth to the value of the produce of their farms." In

dealing with the causes of discontent Lord Elgin came to exactly the

same conclusion which, as I have just shown, was accepted by Lord

Durham after a close study of the political and material conditions of

the country. He completed the work of which his eminent predecessor

had been able only to formulate the plan. By giving adequate scope to

the practice of responsible government, he was able to remove all

causes for irritation against the British government, and prevent

annexationists from obtaining any sympathy from that body of American

people who were always looking for an excuse for a movement--such a

violent movement as suggested by Lord Elgin in the paragraph given

above--which would force Canada into the states of the union. Having

laid this foundation for a firm and popular government, he proceeded

to remove the commercial embarrassment by giving a stimulus to

Canadian trade by the repeal of the navigation laws, and the adoption

of reciprocity with the United States. The results of his efforts were

soon seen in the confidence which all nationalities and classes of the

Canadian people felt in the working of their system of government, in

the strengthening of the ties between the imperial state and the

dependency, and in the decided stimulus given to the shipping and

trade throughout the provinces of British North America.

I have already in the previous chapters of this book dwelt on the

methods which Lord Elgin so successfully adopted to establish

responsible government in accordance with the wishes of the Canadian

people, and it is now only necessary to refer to his strenuous efforts

during six years to obtain reciprocal trade between Canada and the

United States. It was impossible at the outset of his negotiations to

arouse any active interest among the politicians of the republic as

long as they were unable to see that the proposed treaty would be to

the advantage of their particular party or of the nation at large. No

party in congress was ready to take it up as a political question and

give it that impulse which could be best given by a strong partisan

organization. The Canadian and British governments could not get up a

"lobby" to press the matter in the ways peculiar to professional

politicians, party managers, and great commercial or financial

corporations. Mr. Hincks brought the powers of his persuasive tongue

and ingenious intellect to bear on the politicians at Washington, but

even he with all his commercial acuteness and financial knowledge was

unable to accomplish anything. It was not until Lord Elgin himself

went to the national capital and made use of his diplomatic tact and

amenity of demeanour that a successful result was reached. No

governor-general who ever visited the United States made so deep an

impression on its statesmen and people as was made by Lord Elgin

during this mission to Washington, and also in the course of the

visits he paid to Boston and Portland where he spoke with great effect

on several occasions. He won the confidence and esteem of statesmen

and politicians by his urbanity, dignity, and capacity for business.

He carried away his audiences by his exhibition of a high order of

eloquence, which evoked the admiration of those who had been

accustomed to hear Webster, Everett, Wendell, Philipps, Choate, and

other noted masters of oratory in America.

He spoke at Portland after his success in negotiating the treaty, and

was able to congratulate both Canada and the United States on the

settlement of many questions which had too long alienated peoples who

ought to be on the most friendly terms with each other. He was now

near the close of his Canadian administration and was able to sum up

the results of his labours. The discontent with which the people of

the United States so often sympathized had been brought to an end "by

granting to Canadians what they desired--the great principle of

self-government" "The inhabitants of Canada at this moment," he went

on to say, "exercise as much influence over their own destinies and

government as do the people of the United States. This is the only

cause of misunderstanding that ever existed; and this cannot arise

when the circumstances which made them at variance have ceased to

exist."

The treaty was signed on June 5th, 1854, by Lord Elgin on the part of

Great Britain, and by the Honourable W.L. Marcy, secretary of state,

on behalf of the United States, but it did not legally come into force

until it had been formally ratified by the parliament of Great

Britain, the congress of the United States, and the several

legislatures of the British provinces. It exempted from customs duties

on both sides of the line certain articles which were the growth and

produce of the British colonies and of the United States--the

principal being grain, flour, breadstuffs, animals, fresh, smoked, and

salted meats, fish, lumber of all kinds, poultry, cotton, wool, hides,

ores of metal, pitch, tar, ashes, flax, hemp, rice, and unmanufactured

tobacco. The people of the United States and of the British provinces

were given an equal right to navigate the St. Lawrence river, the

Canadian canals and Lake Michigan. No export duty could be levied on

lumber cut in Maine and passing down the St. John or other streams in

New Brunswick. The most important question temporarily settled by the

treaty was the fishery dispute which had been assuming a troublesome

aspect for some years previously. The government at Washington then

began to raise the issue that the three mile limit to which their

fishermen could be confined should follow the sinuosities of the

coasts, including bays; the object being to obtain access to the

valuable mackerel fisheries of the Bay of Chaleurs and other waters

claimed to be exclusively within the territorial jurisdiction of the

maritime provinces. The imperial government generally sustained the

contention of the provinces--a contention practically supported by the

American authorities in the case of Delaware, Chesapeake, and other

bays on the coasts of the United States--that the three mile limit

should be measured from a line drawn from headland to headland of all

bays, harbours, and creeks. In the case of the Bay of Fundy, however,

the imperial government allowed a departure from this general

principle when it was urged by the Washington government that one of

its headlands was in the territory of the United States, and that it

was an arm of the sea rather than a bay. The result was that foreign

fishing vessels were shut out only from the bays on the coasts of Nova

Scotia and New Brunswick within the Bay of Fundy. All these questions

were, however, placed in abeyance, for twelve years, by the Reciprocity

Treaty of 1854, which provided that the inhabitants of the United

States could take fish of any kind, except shell fish, on the sea

coasts, and shores, in the bays, harbours, and creeks of any British

province, without any restriction as to distance, and had also

permission to land on these coasts and shores for the purpose of

drying their nets and curing their fish. The same privileges

were extended to British citizens on the eastern sea coasts and

shores of the United States, north of the 36th parallel of north

latitude--privileges of no practical value to the people of British

North America compared with those they gave up in their own prolific

waters. The farmers of the agricultural west accepted with great

satisfaction a treaty which gave their products free access to

their natural market, but the fishermen and seamen of the maritime

provinces, especially of Nova Scotia, were for some time dissatisfied

with provisions which gave away their most valuable fisheries without

adequate compensation, and at the same time refused them the

privilege--a great advantage to a ship-building, ship-owning

province--of the coasting trade of the United States on the same terms

which were allowed to American and British vessels on the coasts of

British North America. On the whole, however, the treaty eventually

proved of benefit to all the provinces at a time when trade required

just such a stimulus as it gave in the markets of the United States.

The aggregate interchange of commodities between the two countries

rose from an annual average of $14,230,763 in the years previous to

1854 to $33,492,754 gold currency, in the first year of its existence;

to $42,944,754 gold currency, in the second year; to $50,339,770 gold

currency in the third year; and to no less a sum than $84,070,955 at

war prices, in the thirteenth year when it was terminated by the

United States in accordance with the provision, which allowed either

party to bring it to an end after a due notice of twelve months at the

expiration of ten years or of any longer time it might remain in

force. Not only was a large and remunerative trade secured between the

United States and the provinces, but the social and friendly

intercourse of the two countries necessarily increased with the

expansion of commercial relations and the creation of common interests

between them. Old antipathies and misunderstandings disappeared under

the influence of conditions which brought these communities together

and made each of them place a higher estimate on the other's good

qualities. In short, the treaty in all respects fully realized the

expectations of Lord Elgin in working so earnestly to bring it to a

successful conclusion.

However, it pleased the politicians of the United States, in a moment

of temper, to repeal a treaty which, during its existence, gave a

balance in favour of the commercial and industrial interests of the

republic, to the value of over $95,000,000 without taking into account

the value of the provincial fisheries from which the fishermen of New

England annually derived so large a profit. Temper, no doubt, had much

to do with the action of the United States government at a time when

it was irritated by the sympathy extended to the Confederate States by

many persons in the provinces as well as in Great Britain--notably by

Mr. Gladstone himself. No doubt it was thought that the repeal of the

treaty would be a sort of punishment to the people of British North

America. It was even felt--as much was actually said in congress--that

the result of the sudden repeal of the treaty would be the growth of

discontent among those classes in Canada who had begun to depend upon

its continuance, and that sooner or later there would arise a cry for

annexation with a country from which they could derive such large

commercial advantages. Canadians now know that the results have been

very different from those anticipated by statesmen and journalists on

the other side of the border. Instead of starving Canada and forcing

her into annexation, they have, by the repeal of the Reciprocity

Treaty, and by their commercial policy ever since, materially helped

to stimulate her self-reliance, increase her commerce with other

countries, and make her largely a self-sustaining, independent

country. Canadians depend on themselves--on a self-reliant,

enterprising policy of trade--not on the favour or caprice of any

particular nation. They are always quite prepared to have the most

liberal commercial relations with the United States, but at the same

time feel that a reciprocity treaty is no longer absolutely essential

to their prosperity, and cannot under any circumstances have any

particular effect on the political destiny of the Canadian

confederation whose strength and unity are at length so well assured.

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