Instantly come to an end; and that the attainment of the above result
would be of immense advantage to the United States in a revenue point
of view.
"'Again: it is also urged that under the existing system the products
of American industry subject to high rates of excise, are injuriously
brought into competition with similar products of provincial industry
which are subjected to little or no excise, and then admitted into the
United States free of duty. That such is the fact cannot be denied; and
is itself a reason why the abrogation or modification of the present
Reciprocity Treaty has become imperative. But if it were possible to
effect such an arrangement with the British Provinces as would allow
the imposition of duties equivalent to the American excise on all
articles of provincial production passing into the United States, it
seems clear that the afore-mentioned objection would be entirely
removed.
"'As the whole subject, however, is now before Congress for
consideration, the Commission do not consider it as within their
province to submit any specific recommendations; but would content
themselves with merely pointing out that, under certain circumstances,
conditions of great advantage to the United States, in a revenue point
of view, might be secured.'
"Mr. Derby's report contains much that is sensational, and many curious
admissions, but its general tenor is strongly in favour of a new
treaty, regard being had to the revenue necessities of the United
States; i.e., that articles admitted into the United States from
Canada should pay a duty equivalent to the internal revenue tax on the
same articles charged in the States.
