"The Bonding Act, Or Acts, Are Above Alluded To; And It Will Be Well
Here To State, That Under These Acts Of The Congress Of The United
States, Goods Liable To United States Duties May Be Sent In Bond
Through United States Territory Into And Through Canada Or New
Brunswick.
In fact, but for this privilege, Canada would be, under
present circumstances, shut out for the five months of her winter from
access to Europe.
That access could, of course, be given by the
construction of the remaining links of the 'Inter-colonial' Railway
(about 360 miles), connecting Halifax, Nova Scotia, with Quebec and the
Canadian railway system; but pending such construction, it is in the
power of the United States thus to isolate Canada. Being in their
power, we may ask, What is their intention? and we may ask, What have
the Government done to ascertain the one and prevent the other? Have
they ever thought of danger? Certainly, in May, 1864, both Mr.
Cardwell, the Colonial Secretary, and Mr. Layard, the Undersecretary
for Foreign Affairs, were puzzled to know what was meant by the
'Bonding Acts.'
"Particulars of these Acts are given in a note below. [Endnote 2]
"We must now briefly sketch the history of the discussions and events
which more immediately preceded the notice of the 17th March, 1865,
given by the United States Government and Senate, to put an end to the
treaty. Subsequent to the treaty (1854) Great Britain (1859) founded
the Colonies of British Columbia and Vancouver's Island on the North
Pacific. For this we are indebted to the then colonial minister, Sir E.
Bulwer Lytton. The first gave a new gold field; the second contains all
the bituminous coal to be found on the west side of the great North
American Continent. These new countries were not embraced in the
operation of the treaty; nor does it seem that after Sir E. Bulwer
Lytton left office, any effort was made to enlarge the operations of
the treaty. But of course American commerce was anxious to extend
itself, and Californian and American cruisers in the Pacific wanted the
coal of Vancouver. Hence a party in the States was formed for an
extension of the area of the treaty. Then Canada, having established
her railway system by the aid of British capital, and having expended
large sums to promote public works generally, got into debt and had to
raise her taxation; and as import duties are, and must always be, most
easy of collection in a new country, and the most popular, or rather
the least unpopular, mode of taxation, she raised her import duties
generally to a scale as high on many articles, if not higher, than the
import duties of the United States. This led to complaint; and hence a
party was formed in the United States for an extension of the 'free
list,' or list of articles to be admitted duty free into Canada. It is
but fair to bear in mind that the Canadian import duties on United
States goods were the same as those on British goods; so that
whatever ground of complaint might be set up, Great Britain had the
right to the largest share of it, because she had the ocean freights to
add to the duty, and pro tanto was at a disadvantage in
competing for Canadian custom with the manufacturers of the States.
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