of the House of Commons. Although the policy hitherto had been not "to compromise the integrity of the revenue known by the name of the permanent revenue,"1 their report, while "strongly impressed with the advantages of rendering the Governor, the members of the Executive Council and the judges independent of the annual votes of the House of Assembly for their respective salaries," recommended the placing of the receipts and expenditure of the whole public revenue under the superintendence and control of the Assembly. In accordance with this recommendation, an Act was passed repealing to this extent the original provisions of the Canada Act. That these conciliatory measures had no effect whatever in Canada is strong to show the real character of the agitation.

1 Parl. Pap., 1828.

CHAPTER X

Fiscal IN tracing the history of Colonial policy, the years which Policy of Hus elapsed between the recognition of American independence kisson. and the attempt to develop colonization on systematic lines

must be dealt with somewhat summarily. It must be noted that both the American Secretary and the Board of Trade 22 G. III., had been swept away in 1782 by Burke's Act. In that Act, c. 82. however, provision was made for Colonial business to be

carried on by a Committee of the Privy Council for Trade and Plantations. Such a Committee was formed in 1784, and placed on a definite footing two years later, when Colonial business, which had in the interval been transacted in the Plantations Branch of the Home Office, was transferred to this new Committee. In 1794 the new Secretary of State for War became also nominally Secretary for the Colonies; and in 1801 the departments were regularly united. From 1794 the Committee for Trade and Plantations, now known as the Board of Trade, gradually ceased to have any connection with Colonial affairs, until, as we shall see at a later date, its machinery was again put in motion at the instance of Lord Grey. In fact, so far as opinions were concerned, the period was one of extreme depression. The result of the American War had, in truth, to use a vulgar expression, knocked the bottom out of the much vaunted Mercantile system. Of course, this was not at the time recognised. Lord Sheffield's book1 doubtless reflected the popular opinions of the day, and when the far-seeing Pitt proposed, in the Bill of 1783, to put the American States on a footing of perfect equality with British possessions in trade matters, he was compelled to withdraw his measure. The economic circumstances of Canada were, however, such that the Mercantile system

1 Observations on Am. Commerce.

and 45.

only presented itself in the form of welcome bounties, and the chief sufferers by it were the West Indian Islands. To meet their case, however, modifications were made in the system. The West Indian sugar planters had been for many, years granted a monopoly in the English distilleries. Free intercourse was allowed between any countries in America 3 G. IV., and British Colonies in the ships of those countries, or in c. 43, 44, British ships so far as certain enumerated articles were concerned; while a direct trade was allowed from the Colonies in articles of their growth or production to the ports of foreign Europe, provided that the goods were carried in British ships.1 In 1825 Mr Huskisson opened the commerce of 6 G. IV., the Colonies to all friendly States, which, having Colonial c. 114. possessions, granted the same privileges to British ships. "All intercourse between the mother country and the Colonies (whether direct or circuitous), and all intercourse of the Colonies with each other," was "considered as a coasting trade, and reserved entirely and absolutely to Great Britain." 2 With the further view of encouraging 6 G. IV., the Colonial trade, the benefits and regulations of the c. 114. Imperial warehousing system were extended to certain ports in the Colonies. Goods from all parts of the world were 6 G. IV., allowed to be bonded and deposited in warehouses without c. 73. payment of duty till proper opportunities of exporting and selling them to advantage should occur. Another reform effected by Huskisson was the abolition of the large fees which were levied in almost all the Colonial ports. Salaries 6 G. IV., were assigned to all the officers in the Customs, who conc. 87. tinued to be paid out of the duties which they would have to collect. In addition to these general measures, an Act was 6 G. IV., passed allowing Canadian corn to be admitted to British c. 64. ports upon the payment of five shillings a quarter. The operation of this Bill was, however, limited to a period of two years. Full credit must be given to Huskisson for these excellent measures. At the same time, the whole Mercantile system was so complicated that it was impossible to fore

1 See Huskisson's Speeches, Vol. II. p. 314.

2 Huskisson's Speeches at p. 317, Vol. II.
R

Colonies.

see the effect of particular enactments. For instance, the provision which confined foreign shipping to goods of the growth or manufacture of the country owning the ships, in effect, caused the exclusion of the important Hanseatic trade, because the free cities were mere traders, and did not either grow or manufacture articles of commerce. Amidst the confusion, however, of particular enactments, we note a general tendency. For the theory of monopoly a new theory has been substituted, that of reciprocity, to be ever connected with the name of Huskisson. The shadow of the Mercantile system, it is true, long survived to amuse politicians, so that the final repeal of the Navigation Laws did not take place till the year 1849. Nevertheless, it may still be asserted that the real end of the Mercantile system began, with the recognition by England of American independence.

Feeling of But if there could be at the time little desire for Colonies on the time with grounds of trade, what other reasons were there to promote regard to colonial development? It could not have been expected that the men of that time should have deduced from recent events the various lessons which have been already discussed. They merely saw in what had taken place the inevitable outcome of colonial development. Sic vos non vobis appeared to them a fixed historical law. In this state of thought, a tone of depression was inevitable. So far as acts could insure it, English statesmen were resolved to maintain, as long as possible, the connection with Canada. But note the language of Huskisson in 1828. He does not doubt that our Colonies will be "one day or other themselves free nations, the communicators of freedom to other nations. . . . Whether Canada is to remain for ever dependent on England or to become an independent State . . . it is still the duty and interest of this country to imbue it with English feeling and benefit it with English laws and English institutions." We may note that these words were spoken not very long after Canning had uttered, amidst loud cheering, his memorable hyperbole, about calling a new world into 1 See Christie, Vol. III., p. 174. The report is fuller than in Hansard or in Speeches, Vol. III.

1

existence to redress the balance of the old. A generation, which despaired of the Empire, indulged in dreams strange enough to us about the future of the South American Republics.

2

In this connection observe the language held by Lord Castlereagh when explaining the provisions of the Treaty of Paris. Under the Treaty, England ceded to France all the West Indian Islands conquered by her with the exception of Tobago and St Lucia.1 Lord Castlereagh explained that "It was expedient freely to open to France the means of peaceful occupation and that it was not the interest of this country to make her a military and conquering, instead of a commercial and pacific nation." In the same spirit, Mauritius remained British, not because of its own positive importance as a colonial possession but because of its harbour, and of the mischief it had caused, when in the hands of France. With respect to the Newfoundland Fisheries, Lord Castlereagh explained that it would have been "invidious and would only have excited a feeling of jealousy to have tried to exclude France from the share in that fishery which had been secured to her by her two preceding Treaties with Great Britain."

4

Moreover, American experience not only killed enthusiasm; it also paralysed efficiency. The vivid picture drawn afterwards by Lord Durham applies to the whole period. "Instead of selecting a Governor with an entire confidence in his ability to use his local knowledge of the real state of affairs in the Colony in a manner which local observation and practical experience best prescribe to him, it has been the policy of the Colonial department, not only at the outset to instruct a Governor as to the general policy which he was to carry into effect, but to direct him by instructions, sometimes very precise, as to the course which he is to pursue in every important particular of his administration." Theoretically irresponsible, the Gover

1 Trinidad was also retained, but it had been a Spanish possession.