E ,\DL5 A Free Continental System— the best means of in- creasing our agricultural, manufacturing and commercial prosperity. REPLY HON. ELIJAH WARD, The Letter of the Horis. Samuel J. Randall, N. B. Judd, W. S. Holman, D. S. Bennett, W. E. Niblack, Samuel Hambleton, J. Lawrence GetZj Charles Haight. James B. Beck, and Charles A. Eldridgc, requesting his views as to the best meas- ures for ensuring the largest pos- sible extent of mutually bene- ficial intercourse with tlic adjacent countries. GEORGE F. NESBITT & CO., PRINTERS, COR. PEARL AND PINE STREETS. 1870, Class. Book- S^LTl. ■\AJ2 5 ^ Free Continental System-the best means of in- creasing our agricultural, manufacturing ana commercial prosperity. BEPLY / HON. ELIJAH WARD, The Letter of the Hons, Samuel J. Kandall, N. B. Judd, W. S. Holman, J). S. Bennett, W. E. Niblack, Samuel Hambleton, J. Lawrence Getz, Charles Haight, James B. Beck, and Charles A. Eldridge, requesting his views as to the best meas- ures for ensuring the largest pos sible extent of mutually bene- ficial intercourse with the adjacent countries. , GEORGE F. NESBITT & CO., PRTNTERR, COR. PEARL AND PINE STREETS. 1870. House of Representatives, ^ Washington, D. C, > May 18, 1870. ) Hon. ELIJAH WARD, New- York City : Dear Sir — One of the clearest indications of the present time is, that Great Britain, having already given up to the North American Colonies all those exclusive rights which made it her interest to retain possession of those Colonies, is now endeavoring by Confederation to lead them from the condition of tutelage into that of Communities governed by themselves. Through the tenure of power by the Liberal party of Great Britain, this movement has acquired increased momentum. In this state of affairs, it would be in conformity with the character of the United States, who are desirous of promoting self-government in all enlightened nations — and especially among the people of our own race on this Con- tinent — to consider such measures as will ensure the largest possible ex- tent of mutually beneficial intercourse with the adjacent countries. Remembering the attention you have for many years given to the subject, and the proposals made by you when in Congress, we respectfully request an expression of your opinions as to the Commercial System most wortliy of consideration by the people of the United States and Canada at this important crisis. Very respectfully, Your obedient Servants, SAM. J. K AND ALL, N. B. JUDD, W. S. HOLMAN, D. S. BENNETT, "W. E. NIBLACK, SAM. HAMBLETON, .1. LAWKEXCE GETZ, CHAS. HAIGHT, JAS. B. BECK, CHAS. A. ELDRIDGE. A Free Continental System-the best means of in- creasing our agncnltural, manufacturing and com- mercial prosperity. I^E FL^ Hon. ELIJAH WARD. Gentlemen :-I liave the lionor to acknowledge the receipt of ycur favor of the 18th ulthno, requestu.g my opinioa as to the commercial svstem most worthy of consideration by the people of the United States a'nd Canada at the present important crisis in Colonial history ; and as public opinion seems adverse to any mere treaty of partial reciprocity, I submit, to you the following Suggestions for an American Continental Policy. The return of peace and union places us in a favorable position for adjustino- oar commercial relations with the British North American Province's and Possessions on a permanent and satisfactory basis, and adopting an American commercial system, including other neighbor- ing nations. The subject demands consideration for the sake of its important bear- ino-s on every comprehensive plan for revenue reform. The change in the political condition of the Provinces facilitates negotiation with them. They are no longer, as heretofore, a mere set of disconnected embryo States but have become almost an unit, having free commercial inter- course' with each other and one general government, thus greatly m- creasino- their financial, military, and political power, and their substan- tial prosperity. Their inhabitants are already more numerous than those of the United States were after the Revolution had terminated : and their territorv is capable of supporting in comfort and affluence a population more tlian twice as large as exists at the present time in any European nation. Owing to tlieir geographical position, their interests, like their territory, are inextricably wedded to our own, and the natural advantages of neither country can be adequately deveh:)ped independ- ently of the mutual benefits and assistance which Avould result from a system of reciprocally free imports, exports, and right of transit. Public Opinion on Trade with Canada. From St. Paul through Cliicago, Detroit, Bufifivlo and Oswego to the northeastern boundaries of Maine and New Hampshire, there is no place where it is not perceived that the same causes which, by encouraging a free exchange of all products between the different parts of our Union are the chief origin of our own prosperity, would produce similarly bene- ficial results if permitted to have their proper influence between the United States and Canada. From one end of the frontier to the other, there is practically no difference of opinion as to the object to be gained, for the mutual benefit of Canada and ourselves — a reciprocity of com- merce, not only in name but in substance, giving neither party any un- natural vantage ground. Review of the Colonial History. A brief review of the history of the Colonies throws much light on our proper policy in regard to them. For the last half centurj' they have made steady and accelerated progress towards greater freedom and independence. The measures adopted by Great Britain appear to en- courage the movement. Soon after the first American colonists from Great Britain had sur- mounted the difficulties and hardships of the earliest settlements, in the regions which are now the United States, and had begun to accumulate wealth, the exclusive system was applied so far that few articles could be exported from the Colonies to any other country without being first laid upon the shores of Great Britain. Next, the colonists were com- pelled to buy solely from British merchants, and their importations could only be made in British ships, " it being the usage of other nations to keep the plantation trade exclusively to themselves." Even the ex- cellent Lord Chatham, distinguished as a friend of the Colonies, was so far imbued with the common heresies of his time as not to hesitate in declaring that "the British Colonies in North America had no right to manufacture even a nail for a horse-shoe ; " and Lord Sheffield only ex- pressed the general opinion of his day when he affirmed that "the only use of the Colonies and the West India Inlands is the monopoly of their consumption and the carriage of their products." On all these points increased enlightenment has effected a quiet revolution. The monopoly of the Colonial trade was found to he as unprofitable to the oppressor as to the oppressed, and confirmed progress has been made m those views of public policy which are inextricably blended with magnanimity and liberality. Canada now decides for Herself. A few years ago the Government of Canada, through its Financial Alinister, emohatically declared the right of the people of that country to decide for themselves, in all respects, the mode and extent to which taxation shall be imposed on them. The British Government was warned that serious evils and future complications would result from any opposition to the rights thus asserted; and the Canadian Government cono-ratulated itself that the British Ministry of that day " have been obli"o-ed to admit that we were in the right, and that any assumed inter- ference with our rights and privileges is not for one moment to be enter- tained " Thus the practices of self-government, only obtained by the United States through revolution, were quietly conceded. The most strikino- point in this illustration of the reversal of the ancient relations of Grelt Britain and h-r Colonies is not merely that so great a concession was made to the Colonies, but that the point in dispute was an order in Council disallowing a bill inflicting certain disabilities on the shipping of the United States. Experience and Policy of Great Britain. The people of Great Britain have discovered that their own capitalists and laborers were inj ured by forcing the trade of the Colonies in artificial directions and withdrawing it from the natural and really beneficial pur- suits in which it would have been employed. The Revolutionary war in the United States strengthened these i:npressions. It was found that the independence ot the United States and their consequent prosperity contributed materially to the well-being of Great Britain, whose tax- payers were relieved from the expense and trouble of governing distant and extensive regions, while the benefits of intercourse with them not only remained but were augmented. The belief has become more and more prevalent in the mother country, that the means by which she can most securely and profitably derive the elements of real prosperity from her Colonies, is by permitting them to direct their industry into those channels which their natural position and advantages indicate as the most remunerative. Colonial Relations Sharply Defined. On the one hand concessions were made to the Colonists by per- mitting them to resort to the markets of the world and tax British manufactures ; on the other, the British people were gradually emancipated from the oppressive taxation which gave the Colonies special privileges in Great Britain itself. The latter was especially conspicuous as to the indispensable articles of grain, flour and lumber. The militar_y and naval defense of the Colonies remains as the only substantial relic of the ancient policy. The consideration given for it is withdrawn. It remains as a tax on the people of Great Britain without aff(jrding them any adequate compensation, and the declarations of their leading statesmen of aU parties, the actions of their Government, and the tendencies of public oj)inion clearly indicate the early termina- tion of this anomalous and inconsistent condition. The time is approach- ing when, as the most zealous defenders of the old Colonial system have admitted would be the case, it will be found that " it is all of a piece and must either stand or fall together." So evidently correct are the frequent assertions of Canada that her Government, acting for her Legislature and people, must, whatever may be the deference they owe to the Imperial authorities, decide for them- selves as to all matters connected with the tariff; and so completely has the principle thus announced been carried oiit in legislation, that Great Britain, in reply, is throwing the naval and military defence of the Canadians upon themselves. A Canadian journal says that for the first time in more than a hundred years the Union Jack has ceased to wave from the bastions of Kingston, and it was authoritatively stated that within the present year, unless special emergencies intervened, not a British soldier will be left in the Dominion. The issue seems to be sharply and decisively taken on both sides. Lord Grey explicitly and with ample rsason asserts that if "cannot be too distinctly understood by the Colonies that the policy now adopted towards them by the Home Government and by Parliament, and of "which they complain, is very little likely to be altered, unless they on their part are ready to recognize the propriety of the exercise of a larger measure of authority over them hy the Imperial Government than they have of late been willing to submit to." Canadian Independence Approaching. The Canadians are no less resolute than the British authorities, and repel all thoughts of ever reversing^ the policy by which they have completely annulled the old considerations for Colonial union with Great Britain, or of inviting any further interference with their affairs. Thus the position of Canada in remaining nominally dependent upon Great Britain, but really governing herself, is becoming more and more obviously untenable. Lord Monck, lately Governor-General of Canada, substantially declared in the Imperial Parliament that if Canada asked for independence, the request would readily be granted.* Independence seems to be desired by a large and increasing number of her peojDle, but, separately from some understanding or guaranty from the United States, is regarded as difficult and dangerous. Opportunity for the United States. In the present condition of Canada much depends upon the sentiments of the people of the United States and the action of our Government towards her. A friendly and liberal policy will insure her independence ; churlish isolation and ill-will would drive her to seek a new and closer, but temporary connection with Great Britain, less advantageous to the Dominion, tlie mother country, and mankind, than such an arrangement as would fully secure the political liberty of Canada and establish free commercial relations with the vast confederation of Celto-Teutonic States of our Union. The relative geographical positions of the Dominion and the United States are such that reasons tending to a closer union with this country than with Great Britain, must continually make themselves manifest ; * The most recent anrl autlioritative evidence on this suliject is to be founcl in a debate in the House of Conmioiiaon the SUth April ol tills year, when the cxi)iessions of the leading si)eakers were in nnisoii with those of the Jiritish Pieniier. the Kight Hon. W. E. tjladstone, who uttered the following compieheusive and memorable words: " Looking bacli at the history of Trans-Atlantic possessions, «e see that it is iu the uat are of such possessions to grow, and, as they grow, to alter, in obedi- ence to laws more powerlul than the will of any government, the condition of the relations with the country which originally planteil them, till at lengtli they arrive at the stage of progress at which sepaiatiou talies p ace. In every instaTice that separation has been carried out by war and Oloodshed, which left behiud them feel- ings of pain ha red or slianie. [Uear, hear ] There is noihiug in the naiure of such a state of things to preclude the hope tliat sucli separation may be re.ilized as a peaceable and friendly transaction. It is most desiiable to pieserve sueli a policy that, if sepaiatiou -sliould ail ive, it may come iu a friendly and not a iiostile form. This is the principle of the jireseiit l)oli y of this coiiutry toward the Colonies. We hav^e had ample experience of the policy of restraint ai)plied iiy Kuropi-iiu States to their colonies, and we have had a most serious warning ourselves in the case of Canada ; aid theref>>re it is an honorable chapter in our own times that, without distinction of party, the statesmen of tliis conutry competfd with one amitlier in their zeal t'l woi k out tliis policy ior the sake of avoiding the perils and disgrace ■which attaches to separation effected by violence and bloodshed." but, tliere is no reason why we should postpone mutual benefits, and, discarding a policy of attraction, persevere in repelling the Canadians from us. In this aspect I believe the extension of our commercial relations with Canada is both opportune and imjjortant. Proposals of a Commercial Union. Minor experiments have been made and may bo repeated ; but, careful investigation has fully satisfied me that nothing less than the applica- tion of the principle of the German Zollverein or Customs' Union can meet the exigencies of the case and prove satisfactory to the people on both sides. It would remove the anticipated danger from independence by placing the relations of the United States and Canada on the broad basis of those common interests which it could not fail to make more manifest as time elapsed. Propo.sal in the Canadian Parliament. The following resolution, lately presented in the Parliament at Ottawa, has, in the main, the same tendencies as concurrent resolutions passed a few years ago by the Legislature of the State of New-York, and prasented by me in Congress. It, again, brings the subject of reci- procity prominently before the public in both countries. The motion was, " That an address be presented to His Excellency, the Governor- General, representing that the increasing productions of the Dominion demand a more extensive market, and a more unrestricted interchange of commodities with other countries ; that great advantage would result from ])lacing tlie Government of the Dominion in direct communication with all the British Possessions and foreign States, which might be willing to negotiate for commercial arrangements tending to this result ; that it is expedient to obtain from the Imperial Government all necessary powers to enable the Government of the Dominion to enter into direct communication for such purpose with the British Possessions and foreign States, and that in all cases such proposed commercial arrangements^ shall be subject to the approval of Her Majestj-." Opinions of Congress and. the Newr-York Legislature. There is a general impression that Congress has been proved by ita votes to be hostile to the principle of reciprocity fully and fairly carried out in our commercial relations with Canada and the other British North American Possessions. Those who are familiar with the history of the Congressional debates on this subject know that this is not the case The ordinary temper of Congress has been that of the concurrent reso- lutions of the Legislature of the State of New-York. Complaint was 9 „.ade in them as to the tariff enacted by Canada during the existence of the so-called treaty of Reciprocity ; but they maintained the prmc:ple hat "free commercial intercourse between the United States and the Bri ish North American Possessions, developing the natural geogra- pW and other advantages of each for the good of all, is conducive o the present interests of each, and is the only proper basis of our mter- « for all time to come;" and. in pursuance of the -.-- ^f t - State of New-York, that its Senators and Representatives m Congress !wd take such steps as would regulate the commerce and navigation t ween the two countries in such manner as to render the same recipro X beneficial and satisfactory, I moved in the House of Representa- Tves that the President.of the United States should be authorized and reTui red to give notice to the British Government that the treaty of ormerce then existing, as to the British North American Colonies, wouMbe terminated at the eariiest date legally permitted, being twelve months from the expiration of ten years after it went into operation but that the President should be authorized to appomt three commis Toners for the revision of said treaty, and to confer with other com^ Hiissioners duly authorized therefor, whenever it should appear to be the wish of the Government of Great Britain to negotiate a new treaty between the Governments and the people of both countries, based upon thl true principles of reciprocity, and for the removal of existing diffi- ''^The" preamble declared that inequality and injustice existed in our present intercourse with Canada, subversive of the true intent of he treatv, owing to the legislation of Canada after the treaty had b en adopted, and that it was desirable that friendly relations should be enter- tained between the United States and the British North A-encan Pro^ vinces, and that commercial intercourse should be t^^--^^- 77f/^ between them upon principles reciprocally beneficial and satisfactory to ""t m"!ln'to lay the preamble and resolution on the table was rejected by a vote of 76 to 73. Thus the House refused to terminate the Treaty unconditionally. The preamble which asserted, that commercial inter- course between the United States and the British North American Pro- vinces should be hereafter carried on between them "P- P""7J^^ Z;" ciprocally beneficial to both parties, was agreed to, and the re o^uti n would also have been carried if a few members who, '^^^^^^^^^^^^^^ constituents, were conspicuously in favor of, and especially ^-^^^^'^^^^^ the utmost possible freedom of exchanges between the two countr es, had not been induced to believe that they would obtain better terms by post^ Tonement to the next session of Congress. But the postponement was 10 only adopted by a majority of five, out of one hundred and fifty-nine votes. Just before the time for reconsideration arrived, the war feeling had attained increased intensity, and the exigencies and temper of the occa- sion threw all commercial considerations temporarily aside. Special Legislation Expedient. So universally acknowledged was the necessity of special legislation in regard to this subject, that the distinguished Member of Congress, Mr. Morrill, of Vermont, and others who had themselves opposed the reso- lution introduced by myself, supported at the next session of Congress a bill concerning the trade with the British North American Provinces, on the ground that it had become necessary in consequence of the ap- proaching termination of the Reciprocity Treaty. He advocated the free admission of coal from the Provinces. The supporters of the bill hoped to gain some substantial commercial advantages from the Prov- inces by substituting reciprocal legislation for a treaty, and provided for the mutually free navigation of Lake Michigan, the St. Lawrence River, and certain canals on both sides of the frontier, as well as for mutual rights of transit for travel and freight. It is obvious that mere legislation, revocable, at any time by the fiat of either party, could not afford a sufficiently reliable basis for the permanent investments of trade, and the industrial pursuits dependent on it. Nothing Less than a Zollverein SufScient. As objections seem to exist to the free admission of a few articles only from each country into the other, and the proposal of special enactments with a view to reciprocal legislation meets with little favor, it would appear that a system resembling that of the German Zollverein or Com- mercial Union would best fulfill the wishes expressed by the Legislature of the State of New- York, and the requirements of the people at large on both sides of the frontier. Canada producing large quantities of grain and lumber, and other raw materials for exportation, and finding demand for them among the people of the United States, while there is no little corresponding demand for these articles in Canada from this side of the frontier, although there is some for re-exportation — reciprocity in them is necessarily a one-sided system. To make it real and j ust, manufactures also should be admitted free of duty from each country into the other. But to place the two countries on a fair basis in this respect, it is neces- 11 sary that no liigber duty should be levied in one than in the other on iron, copper, wool, materials in part manufactured, &c. The problem is how this can be done in such a condition of our financial afllvirs as must prevail for many years to come. I found that the relative condition of the Canadian Provinces and the United States resembles that recently manifested in the German States towards each other. The Example of the German States, It had been the misfortune of Germany to be divided into a large number of independent States— most of them of petty dimensions and small population— every one having distinct custom-houses, tariflF and revenue laws, often differing very widely from those of the neighbors surrounding it. Sometimes one part of a State was separated from its other parts, and was as a commercial island encompassed by States having different laws. The condition was such as would have existed in New- York, or any other of our States, if each of the different counties had been 'commercially divided from the rest, and the inhabitants of one county could not, without paying heavy imposts, pass into another with a horse, ox, or load of grain, the product of their own farms, or take imported goods into any of the counties adjoining their own ; and the difficulty continually increased on passing through additional counties. Thus the inland trade of Germany was subjected to all the restrictions that are usually laid on the intercourse between distant and independent States. Results of the German Union. It is universally admitted that no single cause has contributed so much to the welfare and prosperity of all parts of our own country, as the per- fectly untrammeled intercourse which the States enjoy>ith each other ; and it is easy to see how different the present condition of the United States would be, if each were commercially independent-jealous of those around it, and perpetually contriving how to exalt itself at the expense of the rest— rather than by developing its own natural advantages to the utmost, and freely availing itself of the special resources of the others. Explanation of the ZoUverein. In a report made from the Committee on Commerce of the House of Representatives, on the 5th of February, 1863, I recommended the appli- cation of a system like that of the German Commercial Union to the 12 United States and the British North American Provinces. The principle of this Union is, that there shall be entire and unrestricted freedom of imports, exports and transit among the States which are its members. Practically there are a few exceptions to the operation of the rule, but they are unimportant, and arise from obsolete causes not existing in the United States or Canada. In other respects perfect freedom of the ex- change of all the products of human industry exists between the States thus allied. A treaty between the United States and Canada, to admit all articles reciprocally free of duty from each country into the other, might practi- cally abolish all duties on importations from any part of the world. Either country might throw open its ports to all comers, and thus compel the other to follow its example. But under the ZoUverein the same duties are collected on the outside frontier of the States thus united. Within that line all trade is as untrammeled as within our present Union. An equitable distribution of the revenue thus obtained, is made among all the States of the Confederation. Applicability to the United States and Canada. The ZoUverein is comprehensively defined to be the association of a number of States for the establishment of a common customs' law and customs' line with regard to foreign countries, and for the suppression of both in the intercourse of the States within the border line. Tnere would be no impediment by discriminating dutits on the importations for Toronto if made via. New- York or Boston. If the merchants of Chicago found it to their interest to purchase at Montreal they could do so ; and buyers from the new province of Manitoba might buy and sell at St. Paul, Du L.ith, St. Louis, or New Orleans as freely as at Halifax or any city in the Dominion. The St. Lawrence River and Canals would be open to us on the same terms as to the Canadians. Internal revenue laws could, so far as necessary, be made in conformity with the princi- ples of the Union. There could be fair and complete competition every- where within the Confederation, and full scope could be given to the development of natural advantages wherever they would bring profit to the merchant, save needless labor of the people, or yield remunerative employment to them. Progress of the German Commercial Union. In Germany the Zillverein bagan in 1818, little more than half a century ago. Its progress to the present time is a sufficient proof of the excellence of the principles it embodies and of the mode by which they 13 are carried into eifoct. The enlightened State of Prussia was the origin- ator and leader in the movement, by forming a commercial union witli a f3w minor States— the whole population thus included being at first only 19,000,000. The experience of the benefits thus created was so satisfac- tory that the best publicists of Europe believe that Prussia thus con- terred upon the German people advantages scarcely inferior to those she initiated by the diffusion of education and intelligence. In 1865 the benefits of the German Zollverein had become so well proved and appreciated, that instead of the three original States or Duchies it included fourteen, with a population of nearly 30,000,000. After the war of 186G, the German States to the south of the River Main, having preserved their independence, were not under any obligation to renew the Zollverein, but preferred to continue members of it. In 1867 a new Zollverein treaty was concluded between the States of the North Ger- man Confederation and the North German States, the scope of which extends to the whole of Germany, except Austria. Even with Austria a liberal and comprehensive treaty was effected in 1868, mutually reduc- ing duties on both sides, and abolishing all transit duties, and nearly all those on exports. " A traveler who has crossed the outer line is freed from the vexations of the douanier in every part of Germany, and may proceed without interruption from Belgium to the frontier of Russia, and from Tyrol to the Baltic, a distance of 700 or 800 miles, including a population of 70,000,000."* Tendencies of the Proposed Policy. It is evident that such a policy tends to lessen the hostility of dif- ferently-instituted Governments, while it does not interfere with the political institutions of any, and that a strong bias towards the most friendly relations on other points naturally arises upon the basis of mutual pecuniary interests and intimate social intercourse. Economy of the Plan. A very considerable saving is made on both sides by the abolition of custom houses between tlie States which become members of the Union. The laws adopted provide means for mutual investigation, so as to Insure accurate returns of the revenue from each place of collection, and to provide for the extension of the system to other States. * See Muriaj 's Hand Books of the European Continent. 14 Reasons for a Continental System. In connection witli the political independence, for which Canada appears to be ripe, and which, if desired by Canada, will not be opposed by Great Britain, the application of the Zollverein principle throughout this continent and the adjacent islands is worthy of more attention than it has yet received from tlie American people. If instituted between the United States and the Dominion, it would not ouly strengthen our power and prestige all over the Continent, but direct the public mind towards practical and easy, because mutually beneficial, methods of arranging our affairs with our neighbors both North and South. So far as it should be carried into effect, it could not fail to be profitable to all who would be- come parties to it. Instead of buying territory or paying people to enter into our political union, we might include Mexico, Cuba, and the Central American States, in one Zollverein. Our commercial relations with these countries have long been unsatisfactory. We should acquire the chief benefits of actual ownership without its disadvantages. Additional capital would be attracted to Mexico and Central America. Labor in those coun- tries would meet with more remunerative and regular employ- ment. Thus an antidote would be provided to restless insubordi- nation and want of steady industry. Personal intercourse among the inhabitants of the different portions of the Continent would be incal- culably promoted. The attrition would destroy mutual prejudices. Migration would take place to and fro between distant regions. As the industry of the inhal^itants of every part would be more amply remunerated, they woitld be enabled to buy more largely from each other. As the most advanced manufacturers on this Continent, the chief share of increase in the sale of manufactured articles would accrue to us ; but all would be benefitted. The cost of articles of tropical origin to the people of the United States and Canada Avould be diminished. Thus the cost of living and of production would be reduced ; industry tlirough- out the Continent would be encouraged by the extension of our markets, and would be enabled better to compete abroad with other coixntries. No other course, so readily adopted, would tend so much to diffuse the ideas and industrial habits of the northern and most advanced nations of the world. The inhabitants of Canada are nearly liomogeneous with those of the Northern States, and are accustomed to laws, traditions and institutions closely resembling our own; but Cuba, Mexico and Central America have populations unlike ours in race, language and education. Mexico has deplorably failed in attempts to copy our institutions, and the annexa- 15 tion of all tliese couutries with the admission of their people, without preliminary training, to equal influence with our own citizens in the management of our own affairs is at least of questionable policy. But re ciprocal trade with them stands upon a totally different basis and could not fail lo be beneficial to all the parties concerned. Proposals from Spain as to Cuba. It has been stated on official authority that in the projet of a treaty drawn up by the Sp .nish Minister at Washington, arrangements were suggested for a i extensive reciprocity of trade between Cuba and the United States as a satisfactory solution of the difficulties arising from the contiguity of that island to our own country. This affords reason for hoping that the new and revolutionized Government of Spain, per- ceiving that the proposed Zollverein would certainly promote the interests of the Cubans themselves, might not be unwilling to enter into such an arrangement. The relative positions of Cuba and the United States, and the diff>."reace in our respective productions, are such, that she is our easiest and naturally our cheapest source of supply for sugar, molasses and many other tropical commodities, while our markets, under a liberal system, would furnish for her the best and cheapest supplies of nearly all articles that she herself does not produce. Effects on United States' Manufactures. Such a treaty with Spain as would ensure free admission into Cuba for our flour, other provisions, and various articles of manufacture, would be worth more than the fee simple of the island itself to the farmers and manufacturers and merchants of the United States ; and the commerce created by a similar arrangement with Mexico would benefit the manu- facturers of New England and Pennsylvania far more than the conquest or purchase of half the Mexican territory. The Subject Demands Adjustment. The commercial relations of the diffdreut countries of this Continent, being founded not only on the present condition of their people, but on their" unalterable positions and variations of climate, unlike those topics which are temporarily brought forward for purposes of faction or excite- ment and are dropped forever when a vote has been taken on them, will constantly recur, in various shapes, as sources of debate, irrita- tion and, perhaps, of embroilment, until they are brought upon the natural level of perfect freedom. 18 The Methods of "Extending Commercial Union. I have endeavored to show that such arraugemeuts might be made as would afford us all the benefits of annexation without the disadvantages of admitting to influence in our own affairs those who are strangers to the genius of our institutions. The emancipation of industry and freedom in exchanging its products is sometimes extended, as in Great Britain, by the repeal of the Corn Laws, and as it would be here by the adoption of a Revenue Tariff; but it progresses, also, as in the case of the Zollverein and various recent European treaties, by local and recip- rocal extensions. The latter method has frequently the advantage of s(!curing the approval and support of those who, upon general princiides, are protectionists, while their opponents are better satisfied with it because it brings the question of liberal, commercial relations to a test by which both parties are enabled to judge more accurately as to the policy most conducive to the interests of their country. The time has come when every well considered scheme of revenue reform must in- clude due reference to a Continental or truly American system. From a Protectionist Point of View. Plausible reasons are frequently brought forward to prove that we ought to protect the labor of our citizens against competition with that of the ill-paid working men of the densely peopled portions of Europe. It is evident these arguments have no force in reference to the commerce between the United States and Canada. Both are new countries, and labor itself in the person of the emigrant already passes free of duty from one to the other. As regards wages, they are substantially on a basis of e