Certainly, in May, 1864, both Mr.
Cardwell, the Colonial Secretary, and Mr. Layard, the Undersecretary
for Foreign Affairs, were puzzled to know what was meant by the
'Bonding Acts.'
"Particulars of these Acts are given in a note below. [Endnote 2]
"We must now briefly sketch the history of the discussions and events
which more immediately preceded the notice of the 17th March, 1865,
given by the United States Government and Senate, to put an end to the
treaty. Subsequent to the treaty (1854) Great Britain (1859) founded
the Colonies of British Columbia and Vancouver's Island on the North
Pacific. For this we are indebted to the then colonial minister, Sir E.
Bulwer Lytton. The first gave a new gold field; the second contains all
the bituminous coal to be found on the west side of the great North
American Continent. These new countries were not embraced in the
operation of the treaty; nor does it seem that after Sir E. Bulwer
Lytton left office, any effort was made to enlarge the operations of
the treaty. But of course American commerce was anxious to extend
itself, and Californian and American cruisers in the Pacific wanted the
coal of Vancouver. Hence a party in the States was formed for an
extension of the area of the treaty. Then Canada, having established
her railway system by the aid of British capital, and having expended
large sums to promote public works generally, got into debt and had to
raise her taxation; and as import duties are, and must always be, most
easy of collection in a new country, and the most popular, or rather
the least unpopular, mode of taxation, she raised her import duties
generally to a scale as high on many articles, if not higher, than the
import duties of the United States.
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