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Board of Trade on the 9th June, 1846, by whom it was again referred to the Commissioners of Customs, for report. The Commissioners reported on the subject in August and September 1846. They objected to the concession on two grounds: 1. That such a course of traffic would afford great facilities for smuggling, and would thereby cndan- ger the revenue; 2. That the grant of such a boon to the Americans would be irreconcilable with the general policy of the Government as to the navi. gation of the St. Lawrence by foreign vessels.
In answer to this report, the Board of Trade submitted to the Commissioners, whether the ex- clusion of American vessels from the waters alluded to was not a point of practice only, no legal provi- sion to that effect being to be found in the Navigation Laws, or in the British Possessions Act.
The Commissioners replied in a long report, wherein they showed that the former policy of this country, in regard to trade between foreign coun- trics and British possessions, was wholly restrictive, but had been modified in later times, by certain special concessions on particular points; whence they inferred, that the general rule of law was against such a trade as that under consideration, which could only be legalized by its being made the subject of a special enactment.
The Board of Trade forwarded both reports to this office, and in the letter covering them, stated that their former opinion as to the lawfulness of the trade in question remained unchanged; and that with respect to the objection that it would encour- age smuggling, and thereby endanger the revenue, in the first place they thought such a result unlikely; and in the second, they were of opinion that this was rather the concern of the Canadian Legislature, than of the British Government.
On the 19th March, 1847, Lord Grey transmitted to Lord Elgin the letter from the Board of Trade, stating, at the same time, that while he fully con- curred in their opinion, he wished that it should be distinctly provided, that the permission to the United States to navigate the St. Lawrence within British territory, was not hereafter to be claimed as a right, but that the British Government would at any time be at liberty to withdraw the privilege.
Printed Papers, page 6. 4 September, 1846.
Ibid. page 4.
10 October, 1846.
Ibid. page 10.
14 November, 1846.
Ibid. page 3.
11 March, 1847.
Ibid. page 3.
19 March, 1847.
Printed Papers, page 14. 10/May, 1847.
Parliamentary Paper, No. 119, page 4.
27 July, 1846.
Ibid. page 9.
26 August, 1840 Ibid. page 14.
27 August, 1846.
Ibid. page 15.
16 September, 1846.
See Printed Papers, page 16. 24 March, 1847.
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Whereupon Lord Elgin, with the advice of his Executive Council, established certain regulations, under which the trade in question was permitted to be carried on during the pleasure of the Governor- General.
With respect to the general question of the Navi- gation Laws, it will be seen that numerous and urgent representations have been received from Canada.
In July 1846, Lord Cathcart forwarded to Mr. Gladstone a petition addressed to the Secretary of State from the Free Trade Association of Montreal, praying, amongst other things, that the Government would take into their serious consideration the ques- tion of the modification of the Navigation Laws, so far as respected Canada. The petitioners brought forward various instances showing the injurious manner in which these laws affected their com- merce, and prevented the colony from reaping all the advantages which the possession of so fine a natural outlet as the St. Lawrence was calculated to bestow. "Can we be surprised," they said, "that under this insane and suicidal policy, the commercial connection of Canada West with New York is extending year by year, and with our cities is proportionably diminishing?".
+
In August, Lord Cathcart transmitted a memo- rial, expressed in very similar terms, from the Mon- treal Board of Trade, and also stated to Lord Grey, that he was of opinion that an extensive change in the Navigation Laws was become necessary, under existing circumstances, to the financial prosperity of Canada.
In September, Lord Cathcart transmitted a me- morial to the Queen from the Toronto Board of Trade, in which the memorialists set forth the incon- venience and loss which they suffered, owing to the high rate of freights resulting from that absence of competition which was the effect of the Navigation Laws, and prayed for the immediate repeal of those laws.
In March 1847, Lord Elgin forwarded a memorial addressed to him by the Montreal Board of Trade, praying him to bring the subject of the British Navigation Laws and the restrictions maintained against foreign vessels navigating the St. Lawrence,
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