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at present the large quantities of East India goods used in Canada, are supplied exclusively by the Americans. In the article of tea alone, it will be seen by a reference to the list, that the amount is near 20,0001. a year, which is a trifle even, compared to the sums annually paid for cotton goods.

By the 13th article of the treaty of commerce, 1794, "His Majesty consents "that the vessels belonging to the citizens "of the United States of America shall be "admitted and hospitably received in all "the sea-ports and harbours of the British "territories in the East Indies; and that "the citizens of the said United States


may freely carry on a trade between the "said territories, and the said United "States in all articles of which the importation or exportation respectively to 66 or from the said territories shall not be entirely prohibited."



In consequence of this permission, the Americans have gone largely into the East India trade; and, from a variety of advantages attached to a neutral flag, they have been able (particularly since the commencement of the French revolution) to

import India goods into America, and transport them into Canada, so much cheaper than can be done by the British merchants, that the latter are entirely cut out of the trade. Not only the East India company are sufferers by it, but also the British mercantile and shipping interests. Add to this, that the money carried out of Canada in payment of these goods, creates a scarcity of cash, which lowers the rate of exchange, and occasions thereby an increase of price on every article of produce exported from Canada; and this increase falls on the person for whose account the produce is exported. Canadian produce is increased in price to the European consumer; and, in the English market, is less able to compete with the same sort of produce brought from America and elsewhere; and all this arises in consequence of the article in the treaty before quoted, allowing the Americans to carry into Canada, East India articles, groceries, &c. duty free. I, therefore, humbly conceive, that if the advantage of the mercantile and shipping interests of Britain is consulted, the above article ought to be abolished, or rather so modified that the British merchant

might send his goods into market on the same terms that, the Americans do.

To strike effectually at the root of the evil, I believe the best way would be to prohibit the Americans from going to In

dia. If the goods are once in the United States, it will be next to impossible to prevent their being carried into Canada, their line of boundary being so extensive. I cannot pretend to say what advantages result to our East India possessions, from the Americans having liberty to go there; but, it strikes me, as being very much against the mercantile and shipping interests of Britain.

The Americans for some years past, have supplied, not only Canada, but likewise the West India islands, and the Spanish main, with a variety of Asiatic produce, brought from thence in American bottoms, which, it is presumed, must have been brought in British bottoms, had the trade not been "thrown open to America. I do not pretend, however, to be sufficiently informed on this matter, to embrace the question in all its different bearings.

I understand that a new treaty is now on the stocks between Britain and America. If the first ten articles of the treaty of 1794 are still declared permanent, particularly the third article, and this, after maturely considering its operation in Canada, and weighing the information which the merchants connected with Canada are ready and able to give, we may presume that something more is taken into consideration by our legislators than we are aware of, otherwise they would not do that which seems to every one who knows the Canada trade, to be contrary to the best interests of Britain.-I say of Britain, for I hold it to be a thing certain that the footing on which the trade at present stands, is the best that can be for Canada; for it assuredly is advantageous to Canada, to receive tea, groceries, and East India goods in great abundance, and at a cheaper rate than she can from England. But, it is disadvantageous to Britain both in a commercial and political point of view, that her colonies should draw their supplies from any other quarter than from Britain; · it would in time render them independent

of Britain, and more attached to the country from which they receive their supplies than to the mother country. This is likely to be the case with Canada (and perhaps the West Indies too), and well deserves the serious consideration of government. The more supplies received from America,-the more encouragement that is given to that trade, the less dependence will Canada have on Britain, and the less inclined they will be, to resist any attempts the Americans may make to get possession of the country. The interests of the colonies, and of the mother country, are sometimes at variance, as in the present instance, and when that is the case, I would without he sitation, sacrifice the former to the latter, and frame treaties accordingly.

I should think that it would be much better that all mercantile regulations in treaties, should have a limited duration; the situation and circumstances of nations undergo great change, and it seems proper that the mercantile regulations in their treaties should be capable of receiving such changes as circumstances may shew to be necessary.

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