Imports into Canada by river St. Lawrence, giving only the principal articles and values, for the year 1851.

This includes the imports in transit for the United States, and those under bond for Upper Canada.

3

Exports from Canada to other countries, (principally Great Britain,) giving the principal articles and values, for the year 1851.

As nearly as can ascertained, the following statements exhibit the natural products, domestic manufactures, and foreign goods imported into the colonies from the United States for 1851.

Aggregate of colonial imports from Great Britain, United States, and other countries, for the year 1851.

Aggregate of colonial exports to Great Britain, United States, and other

*New Brunswick returns for 1851 show an increase in exports of about 15 per cent., and of 19 per cent. in the imports, greater than in any other colony.

Add for value of new ships built at Quebec, and sent to England for sale, $1,000,000; and a farther large sum for under-valuation of exports-making in the whole...

$40,000,000

8,632,545

NOVA SCOTIA.

$5,527,640
3,542,310

Although it appears by this statement, that, as in most new countries, the amount of imports greatly exceeds the estimated value of the exports, yet it must be taken into account that the apparent balance of trade against the colonies is fully overcome by the low price at which their exports are valued at the places of shipment, as compared with the prices obtained abroad; the value of new ships sold in England; the freights earned by these ships, while on their way to a market; and the large freights earned by colonial ships in transporting the bulky products of the colonies to foreign countries; all of which profits, sales, and earnings accrue to the colonial merchant, and render the trade of the colonies, at the present time, healthy and prosperous.

After presenting the preceding statements, the undersigned does not deem it necessary to discuss in an elaborate manner the many interesting questions which they will, on examination, unquestionably present to the statesmen of England and America; more especially as the question of reciprocal free trade between the United States and the British North American Colonies is now before Congress, and received especial attention in a previous report of the undersigned submitted to yourself, and printed as Executive Document No. 23, 31st Congress, 2d session.

From 1794 to 1830 the trade of the colonies was a subject of much negotiation between the two governments, and was always considered by John Quincy Adams as one of great consequence to the United States. This protracted and almost useless negotiation produced no other results than a contraction of the trade of the colonies and an estrangement between the people of both countries.

It is well known to the Department of the Treasury that Mr. McLane's arrangements with England in 1830, in relation to this trade, were most unsatisfactory to the commercial community, and called forth from that interest urgent remonstrances against their partial character. Time has, however, proved their beneficial operation upon the general interests of the American and colonial trade, thus furnishing another proof that profitable commerce can only exist in perfect freedom.

Although the convention of 1830, upon the whole, had a beneficial influence, yet it still left the trade of the United States with the colonies subject to many onerous and unnecessary restrictions, which have had a very injurious effect upon it. Until near the year 1840, that trade did not rapidly increase; but then it suddenly expanded. From that riod to the present time there has been a constant increase, but by no means to the extent which would have unquestionably taken place if the trade had been wholly unfettered, and allowed to flow freely in its natural course.

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It is somewhat singular that, notwithstanding the geographical position of these colonies with reference to the United States, and the national importance of the various relations with them, no change has taken place in the policy of this country toward them for nearly a quarter of a century (while so much that is wise and great has been accomplished during the same period for the benefit of commerce in this and other countries) except the drawback law of 1846, which has increased the export of foreign goods from $1,363,767 in 1846 to 2,954,536