Diary in America, Series Two

Volume Three—Chapter Two

The next question to be considered is, whether, independent of their being important to us as an outpost to defend our transatlantic possessions, the Canadas are likely to be useful to us, as a colony, in a commercial point of view. This requires much consideration.

It must be admitted that, up to the present, we may consider the Canadas to have been a heavy burden to this country. From what I am now going to state, there are many, who agreeing with me in most other points, will be likely to dissent. That I cannot help; I may be in error, but, at all events, I shall not be in error from a too hasty decision.

That it is wise and proper for a mother country to assist and support her colonies in their infancy is undoubted. In so doing, the mother country taxes herself for the advantages to be hereafter derived from the colony; but it may occur that the tax imposed upon the people of the another country may be too onerous, at the same time that no advantages at all commensurate are derived from the colony. When such is the case, the tax is not fair; and the colony for whose benefit that tax has been imposed, is looked upon with ill-will. This is the precise situation of the Canadas, and this is the cause why there is so strong an outcry against our retaining possession of these provinces.

The bonus of forty-five shillings on a load of timber, which is given to the Canadas by our present duties, is much too great; and has pressed too heavily on the people of the mother country. It has, in fact, created a monopoly; and when it is considered how important and necessary an article timber is in this country,—how this enormous bonus on Canadian timber affects the shipping, house-building, and agricultural interests—it is no wonder that people wish to get rid of the Canadas and the tax at one and the same time. It is also injurious to us in our commercial relations with the northern countries, who refuse our manufactures because we have laid so heavy a duty upon their produce. This tax for the benefit of the Canadian produce was put on during the war, without any intention that it should remain permanent: and I think I shall be able satisfactorily to establish, that, not only is it unjust towards our own people, but that, instead of benefiting, it will be, now that the Canadas are fast increasing in population, an injury to the Canadas themselves.

Up to the present period, timber has been the only article of export from Canada: we certainly have had the advantage of a large carrying trade, and the employment of many thousand tons of shipping; but, with this exception, the timber trade has been injurious, not only to the mother country, but to the colony itself, as it has prevented her real prosperity, which must ever depend upon the culture of the land and the increase of population. The first point to which the attention of a colony should be directed, is its own support, the competence and supply of all the necessaries of life to its inhabitants; it is not until after this object has been obtained, that it must direct its attention to the gain which may accrue from any surplus produce. In what way has the timber trade benefited the Canadas? Has it thrown any wealth into the provinces? most certainly not; the timber has been cut down, either by those Canadians who would have been much better employed in tilling the land, for every acre cleared is real wealth; or by Americans who have come over to cut down the timber and have returned to their own country to spend the money. That the profits of the timber trade have been great is certain; but have these profits remained in the Canadas?—have the sums realised been expended there?—no; they have been realised in, or brought over to England, shared among a few persons of influence who have, to a certain degree, obtained a monopoly by the bonus granted, but the Canadas have benefited little or none, and the mother-country has received serious injury. That the parties connected with the Canada timber trade will deny this, and endeavour to ridicule my arguments, I am aware; and that they are an influential party I well know; but I trust before I have concluded, to prove to every disinterested person, that I am correct in my view of the case, and that the prosperity of the Canadas is a very different question from the prosperity of the Canadian timber merchants, or even the proprietors on the Ottawa.

When the protecting duty was first imposed, there was no idea of its being a permanent duty: it was intended as an encouragement for ships to go to Canada for timber, when it could not be got in the Baltic. It was, in fact, a war measure, which should have been removed upon the return to peace. The reason why it was not, is, the plea brought forward, that the taking off the protecting duty would be a serious loss to the emigrant settler, who would have no means of disposing of his timber after he had felled it, and that the emigrant looked to his timber as his first profits; moreover, that it gave employment to the emigrant in the long winters. That those who have never been in the country were led away by this assertion I can easily imagine, but I must say that a more barefaced falsehood was never uttered. There are varieties of emigrants, and those with capital speculate in timber as well as other articles; but let us examine into the proceedings of the emigrant settler, that is, the man who purchases an allotment and commences as a farmer—for this is the party to whom the supposed philanthropy was to extend. He builds his cottage and clears two or three acres, that is, he fells the trees; as soon as he has done this, if the weather permit, he burns them where they lie, the branches and smaller limbs being collected round the trunks as fuel to consume them. This he is compelled to do, for the land having been so long smothered by the want of air and sunshine, arising from the denseness of the forest, has a degree of acidity in it, which the alkali of the wood and ashes are required to correct, previous to his obtaining a crop. I do not believe that a settler ever sold a tree when he was clearing, although if water-carriage was convenient, he may afterwards, when he was in competent circumstances, have done so. Having raised his crop from the first year’s clearing, what is his employment during the winter,—cutting down timber on the Ottawa for the English market? no; cutting down timber on his own property as fast as he can, so as to have it ready for burning in the early spring, and having a crop off this, his second clearing. And so he continues, with full employment on his own farm, until he has cleared sufficient for the growing of his corn and the pasture for his cattle. When he has become independent and comfortable, and has a few thousand dollars to spare, then he will erect a saw-mill, and work up his own trees into lumber for sale, but by that time he must be considered as a rich man for a settler. The timber trade, therefore, is hurtful to the Canadas, in so much as it prevents them from clearing land and becoming independent people, who by other means would become so. The timber which is cut down for exportation, is chiefly from the forests on or near the Ottawa river, and the emigrant settler has neither interest or concern in it.

It may be argued that, as settlers do, as soon as they are in better circumstances, erect saw-mills, and work up their trees into lumber, that it would be unfair to deprive them of that advantage. I will grant that; but the fact is, that you will not do so; for of the quantity of timber and lumber exported from the Canadas, it is only one-half which is sent to the British market, the other half is divided between the West Indies, the United States, and their own consumption; and the demand of the United States will so rapidly increase, that, in a few years, the Canadians will care little for sending their timber to England, even if the present duty were kept on. I consider that this bounty upon cutting timber is very injurious to the American provinces, as it distracts their attention from the real source of wealth, which must consist in clearing the country; for, to show how great a difference this makes to them, it must be observed, that a farm which was only worth two dollars an acre when the settler first came to it, will, as soon as others have cleared around him, rise to twenty or thirty dollars per acre. Every man, therefore, who settles and clears land, not only benefits himself, but increases the value of the property of those all around him; while the feller of timber on the Ottawa only puts a few dollars into his own pocket, and does no good to the province, as the timber-dealers in England reap all the harvest.

It would appear very strange that the ship-owners should have joined the Canadian timber merchants in persuading the government to continue these duties, were it not from the fact that the ship owners appear, invariably, to oppose any measure advantageous to their own interests. That the carrying trade to the Canadas is of importance is certain; but of how much more importance to the ship owner is the reduction of expense in building his ship, which must ensue if the timber duties were reduced. The ship owner complains that he cannot sail his ship at as low a rate as foreigners; that he must be protected, or that he cannot compete with them in any way; and yet he opposes the very measure which would materially assist him in so doing. But the fact is, that, as I shall eventually show, the carrying trade with Canada would not be lost, though the cargo would not be the same; and there is every reason to suppose that the employment of the shipping would very soon amount to the same tonnage as at present.

The next consideration is, to what should the duty be reduced, so as not to affect our revenue? This is a question easily answered.

In the Report on Timber Duties, Appendix Number 10, we have. in round numbers, for the year 1833:—

Now it is certain that, wherever the timber may come from, the same quantity will be required; we have, therefore, to fix a duty upon timber coming from all parts of the world, by which the revenue will not suffer. A duty of 25 shillings per load will give, upon the whole importation, a revenue of 1,453,000 pounds, not only an increase of revenue upon the timber at present imported; but there is every reason to suppose that it would occasion a much greater consumption of timber, and of course a great increase of revenue. I do not consider that it would be advisable to make this reduction immediately. There is a large tonnage, employed in the Canada trade, which might as well wear out in it; and it would be but fair to allow those who have embarked their capital in the trade, to have time to withdraw it. As the Canadas are not yet prepared to send other produce to the market, we can, with great propriety, confer this boon upon the present timber trade. The reduction of the duty should be gradual, and extended over ten years, at which period the final reduction to 25 shillings per load should take place; by which time, if Canada be cherished, she will have other produce for the market.

The more I consider the question, the more I am convinced that this alteration would be a benefit to all parties. We then should be able to build ships at a moderate price; we should have a fall in house-rent; and, indeed, it would be of advantage to every class in this country; and, however interested people may argue, the removal of this protecting duty would be the greatest boon and kindness which we could confer on our transatlantic possessions.

Let us now inquire what are likely to be made the future prospects and produce of the Canadas as the population increases, and the resources of the country will be developed.

Lower Canada is a sterile country; not that the land is in itself bad, but from the severity and length of the winters. The climate of Lower Canada is precisely the same as that of Russia, and so might be its produce. The winters are tedious, but not unhealthy, as they are dry. The summers, like all the summers in the northern regions, although short, are excessively hot. It is owing to this excessive heat of the summer that the maize, or Indian corn, which will not ripen in this country, can be grown in Lower Canada, and it is the principal corn which is raised. The French Canadians who inhabit Lower Canada are but indifferent and careless farmers, yet still they contrive to live in apparent comfort: but the question is not whether the inhabitants of Lower Canada can support themselves, but whether they are likely to be able to produce any thing which might become an article of export to England. I should say yes: they may produce tar and hemp, two very important articles, and for which we are almost wholly dependent upon Russia. Tar they can most assuredly produce; and, with the same climate as Russia, why not hemp? Hemp will grow in any climate, and almost in any soil, except very stiff clay, and I consider the soil of Lower Canada admirably adapted to it. Up to the present time the French Canadians have merely vegetated, but as the country fills up, and they gradually amalgamate with the other settlers, there is no doubt that they will rapidly improve.

Upper Canada has been, and is still, but little known. At the close of the war, there was not a population of 40,000 upon the whole province: even now there is but 400,000 upon a territory capable of receiving and supporting many millions. It is, without exception, the most favoured spot in North America, having all the fertility of the southern and Western States, without being subject to the many and fatal diseases which are a drawback upon the latter. Although so far north, its climate is peculiarly mild, from its being so wholly surrounded with water, which has the effect of softening down both the cold of the winter and the heat of the summer. It abounds with the most splendid timber; is well watered; the land is of the richest quality; the produce is very great, and the crops are almost certain. I particularly notice this as I consider Upper Canada to be the finest corn country in the world.

At present the resources of the Canadas are unknown; the country has not been explored; it is without capital, and I may add without credit, but its prospects are very favourable. The timber trade to England will in a few years, even allowing the present bonus to be continued, be of little advantage to Upper Canada; they will find a much better market as the Western States fill up, as then there will be a great demand for lumber, which will be obtained cheaper from Canada than from any portion of the United States. Even now lumber is sent over from Upper Canada to those portions of the United States bordering on the lakes. I have pointed out the want of timber in the Western States, that is, of timber fit for building; they have some in the State of Wisconsin, which will soon be absorbed, and then the Canada timber and lumber will be in demand, and I have no doubt that there will be a very extensive exportation of it.

The next article of produce to which the Canadians should direct their attention is the fisheries on the lake, which may be carried on to any extent and with great profit. The trout and white fish, both very superior to the Newfoundland cod, are to be taken with the greatest ease, and in vast quantities. I have mentioned that the Americans have already commenced this fishery, and the demand is rapidly increasing. As the West fills up, the supply would hardly keep pace with the demand; besides that it would also be an article of exportation to this country.

There are millions and millions of acres to the north and about Lake Superior, fit for little else than the increase of the animals whose furs we obtain, and which will probably never be brought into cultivation; yet these lands are rich in one point, which is, that the maple-tree grows there, and any quantity of sugar may be collected from it, as soon as the population is thick enough to spare hands for its collection. A maple-tree, carefully tapped, will yield for forty years, and give six or seven pounds of sugar, fully equal to the best East-India produce, and refining well. A few tons are collected at present, but it may become a large article of export.

The United States appear to be rich in most metals, but particularly in lead and iron;32 the metal which they are most deficient in is copper. It is said that the copper mines in New Jersey are good; those in the West have not yet proved to be worth working. Canada, as I have before said, is as yet unexplored, but I have every reason to believe that it will be found rich in minerals, especially copper. I argue, first, from its analogy with Russia, which abounds in that metal; and secondly, because there is at this time, on the shores of Lake Superior, a mass of native copper weighing many tons, a specimen of which I have had in my hand. We must not forget to reckon, among the other products and expected resources of Canada, the furs obtained by the Hudson Bay Company. Of course, if the Canadas are wrested from us, we shall have to depend upon the Americans for our supply of this necessary article. The value in Canada of the furs exported to this country, by the company, amounts, as I have observed in my Diary, to about a million and a half of dollars.

I now come to what I consider will be the most important export from the Canadas. I have stated it to be my opinion that Upper Canada will be the first corn country in the world, and in a very few years we may expect that she will export largely into this country; already having had a surplus which has been sold to the Americans. It must be recollected that America, who used to supply the West-Indies and other parts of the world with her flour, has, for these last few years, in her mania for speculating, neglected her crops, and it is only during these last two years that she has redirected her attention to the tillage of her land. She will now no longer require assistance from Upper Canada, and the yearly increasing corn-produce of that province must find a market elsewhere. After supplying the wants of Nova Scotia and New Brunswick, this surplus will find its way into this country. As the population of Upper Canada increases, so will of course her growth of wheat be greater, and in a very few years, we have reason to expect that there will be not only a constant, but even a more than requisite, exportation of corn to this country. Now what will be the effect? Corn from Canada is admitted at a fixed duty of 5 shillings per quarter, therefore as soon as the supply from thence, is sufficient, the corn laws will be virtually repealed, that is to say, they will be exchanged for a permanent duty of 5 shillings per quarter.

I think that the remarks I have made will incline the reader to agree with me, that the reduction of the duties on timber will be a real boon to all parties: to the Canadians, because at the same time that the supplies of lumber to the West Indies and elsewhere will give a certain profit, they will no longer have the true interested of the colony sacrificed for the benefit of parties at home; to the mother country, because it will relieve the expenses of the builder, lessen house-rent and agricultural expenses, and at the same time increase the revenue;—to the ship-owner, as it will enable him to build much cheaper, and to compete more successfully with foreign vessels, with the prospect also of the carrying trade soon reviving, and the freight of the corn proving an indemnification to him for the loss of that on the timber. That a few interested individuals would complain is undoubted, but it is high time that a monopoly so injurious in every point, should be removed; and the profits of a few speculators are not to be for a moment considered, when opposed both to the interests of the colony and of the nation.

I may as well here remark that it would only be an act of justice to the provinces, and no less so to ourselves, to take off the prohibitions at present in force against the importation of goods from France and other countries. The boon itself would be small, but still it would be a stimulus to enterprise, and the time has gone by for England to impose such restrictions on her colonies. I say that we should lose nothing, because all these articles are imported by the Americans; and if the Canadians wish to procure them, they can obtain them immediately at Buffalo, and other American towns bordering on the lakes. At present, therefore, all the profits arising from these importations go into the pockets of the Americans, who are the only parties benefited by our restrictive laws. We should therefore remove them.

I shall now support the arguments in this chapter, touching the relative value of the corn and the timber trade to the Canadas, by some extracts from the evidence given in the Report of the Committee on the Timber Duties.

Q. “Have you ever formed an opinion of what rate per quarter wheat could be exported to this country, so as to yield a profit to the exporter?”—A. “I cannot call it to mind accurately, but I think the estimate I once made was between 40 shillings and 50 shillings.”

Q. “Would it not follow that, unless the price of wheat in this country were to rise to 40 shillings or 50 shillings per quarter, the population that your former answer would transfer front the timber trade to the agricultural would not be able advantageously to employ themselves?”—A. “No; I do not think it follows necessarily. If all our population were devoted to agriculture, our settlements would be more dense, and their roads more perfect; in fact, all the social offices more perfectly fulfilled; which would enable them to bring their wheat to market at a more moderate price, and thus they might obtain a larger profit even with a lower price. We should bear in mind, in relation to their agricultural produce, that the farmer of course first feeds his own family, and that price affects him so far as it relates to his surplus produce, and that price rather affects his luxuries than his means of subsistence. I am not aware that the present prices would prevent a farmer obtaining that return which would enable him to purchase at least all his necessaries.”

Q. “What do you suppose is the average expense of the conveyance of wheat from the remote parts of Canada to Montreal?”—A. “I believe the cost of bringing wheat from Niagara to Montreal was about 15 pence colonial currency, but I am not certain; it is not now lower. I once made a table showing the cost of taking produce of all kinds from three points on Lake Ontario and on Lake Erie, and sending up articles to the same places.”

Q. “What is the freight from Quebec to England?”—A. “The ordinary rate has been from 8 shillings to 8 shillings 6 pence a quarter for wheat.”

Q. “Do you know the price of wheat in this country?”—A. “I believe the last average was 40 shillings.”

Q. “If at 40 shillings you would probably allow 10 shillings a quarter, by your present statement, as a fair deduction for the expense of bringing it into this market?”—A. “I should think so.”

Q. “Do you think the price of 30 shillings would pay the agricultural producer in Canada for the production of wheat; would afford a return for the investment of capital in the production of wheat in Canada?”—A. “I should be loth to speak to a point on which I have not sufficient knowledge.”

Q. “Is it not indispensable to form an opinion upon that point to justify the opinion you have already given?”—A. “I think not. I have that feeling, that the consequence of their not having the timber trade would be, that they would produce other articles, and that their condition would not be deteriorated. I am led to that conclusion by seeing the present condition of the State of New York, which once depended on the timber trade; I look also to Vermont; and when every man tells me that he laments and has lamented that he ever meddled with the timber trade, I think that I am justified in my opinion, for no one will pretend to state that the land of Vermont, or even of New York, equals that of Canada. While speaking of the soil of Canada, I would observe that Jacobs has estimated the average return for wheat on the Continent at four to one, of Great Britain seven to one, and Gourlay has estimated the return of Upper Canada at twenty to one. Many state that Upper Canada is unrivalled in comparison with any other piece of land of equal extent.”