waters of Maine, while British armed vessels often visit our coasts and harbors. In conclusion, the undersigned would respectfully state, that, although the returns and statements herewith submitted furnish gratifying evidences of the commercial intercourse between the United States and the British North American colonies, and although those returns may be deemed perfectly correct, having been derived from official sources, yet it is proper for him to remark, that they do not represent the whole value of the trade. It is well known that in many instances colonial produce is entered at prices much below its real value; and on the northeastern and northwestern frontiers of the United States there is ever an active barter trade carried on with the neighboring colonies, of which no account can be taken by the public officers on either side. It is therefore perfectly within bounds to estimate the entire exports of the United States to the British North American colonies as now amounting to eighteen millions of dollars annually. It is universally admitted that it would be much better to place this border trade on a different basis, and under the influence of a higher principle. This would enable us to mature and perfect a complete system of mutual exchanges between the different sections of this vast continent; an achievement not only wise and advantageous, but worthy of our high civilization. It has been remarked by a learned writer, (Lord Lauderdale, on Public Wealth,) that "Those trades may be esteemed good which consume our products and manufactures, upon which the value of our land and the employment of our poor depend; that increase our seamen and navigation, upon which our strength depends; that supply us with such commodities as we absolutely want for carrying on our trade, or for our safety, or carry out more than they bring in, upon which our riches depend." The trade with the colonies fulfils all these considerations. It takes from us largely of those products and manufactures which enhance the value of our soil, and give profitable employment to the labor of our people. It greatly increases our ships and the numbers of our seamen, giving us the means of maintaining our navy, and adding materially to our strength as a nation. It supplies us cheaply with those commodities we absolutely require for conducting our foreign trade, and supplying the necessities of home consumption. And lastly, it carries out infinitely more than it brings in, and so adds vastly to our individual and national riches. The undersigned has the honor to be your obedient servant, Hon. THOMAS CORWIN, Secretary of the Treasury, Washington. PART I. THE DEEP-SEA FISHERIES IN The Bay of Fundy, along the coast of Nova Scotia, on the Grand Bank of Newfoundland, and within the Gulf of St. Lawrence. In connexion with the pending question of commercial reciprocity between our country and the British North American provinces, and as concerning the interests of a large and valuable class of citizens in the fishing towns of New England, the fisheries on the Atlantic coast of Nova Scotia, as also those within the Gulf of St. Lawrence, near the shores of Cape Breton, Prince Edward Island, New Brunswick, and that part of Ĉanada known as Gaspé, occupy a prominent position. It is sufficient at this moment to state that, except near certain portions of the coasts of Newfoundland and Labrador, and around the Magdalen islands, our citizens are not permitted to fish, save at the distance of three marine miles from the land. It has been contended by the provincial authorities, acting under the opinion of the law-officers of the Crown in England, that these three miles are to be measured from headland to headland, and not from the bays or indents of the coast. Under this construction of the convention of 1818, our vessels have been sometimes seized and confiscated; but the imperial government has inclined to the opinion that this construction of the convention was too strict, and that our vessels might enter bays, straits, or estuaries, the entrances to which were more than six miles wide. But even this modified construction of the convention bears hardly upon our industrious fishermen in a variety of ways, as I now proceed to show. The fishing grounds to which our vessels principally resort, are in the bay of Fundy; along the Atlantic coast of Nova Scotia; around Sable island; on the Grand Bank of Newfoundland; and everywhere within the Gulf of St. Lawrence, as far north as the entrance to Davis's Straits, beyond the straits of Belleisle. Our vessels principally fish for cod and mackerel, although they also take herrings at the Magdalen islands, or on the coast of Labrador. It is true that they have a concurrent right of fishing on the west coast of Newfoundland with the fishermen of England and France, and a joint right of fishing, with British subjects, on the coast of Labrador and at the Magdalen islands; as also the right of landing at such places on those coasts as are uninhabited, for the purpose of curing and drying their fish; but this privilege is seldom, if ever, exercised, because it is of no practical value to our fishermen. Those portions of the coasts of Nova Scotia, Cape Breton, Prince Edward Island, and New Brunswick, on which it would be advantageous for our fishermen to land for purposes connected with the fishery, are prohibited by reason of their settlement and actual occupation, while they are shut out from the best fishing grounds by reason of the convention of 1818, which excludes them from taking fish within three marine miles of the coast, within which distance the best fish are often found in greatest abundance. The limits claimed by the British authorities under that convention, it strictly enforced, would exclude our fishing vessels from the bay of Chaleur, the bay of Miramichi, the straits of Northumberland, and George's bay, within which the greatest quantities of the best mackerel are now taken annually. If an arrangement could be made by which our fishermen would have the right to fish within three miles of the land, wheresoever they pleased, on the shores of the provinces, and also the right to land on those shores anywhere-first agreeing with the owner or occupant of the soil for the use of the necessary ground for fishing stations-it would tend greatly to increase the quantity of fish taken, would furnish the market with a well-cured article, enhance the profits of fishing voyages, and lead to a considerable extension of the number of vessels and men now employed. The codfish caught in the Gulf of St. Lawrence, by our fishermen, are pickle-salted in bulk, on board the vessels, as they are caught, and are thus brought home to be afterwards dried and cured. A liberal supply of salt is used, in which the fish first caught lie four months, and the last caught, one month. The vitality, so to speak, of the meatits strength and flavor-is quite destroyed. When unladen from the vessel, the fish are found to be of a dead, ashy color, instead of the bright, wholesome hue which good fish should have; and so brittle as scarcely to bear handling—with hardly any smell or taste, except that imparted by salt. The home consumption of such an unpalatable article is gradually diminishing, while the inferiority of the cure deprives us of the advantages of foreign markets, for which these fish are wholly unsuited. The mackerel taken in the gulf by our fishermen are split, salted, and dressed while the vessel is under way; and it often happens that a full fare is made in four or five days, when these fish are plentiful. In such case the vessel, being full, must leave the fishing when at its best, and make a long voyage to her port of return, in the northern States, in order to discharge; and before she can again reach the ground the chances are that the fish have disappeared, or that the season is over. If our mackerel fishers could remain upon the fishing ground during the whole season-touching at some convenient station, occasionally, to land the fish on board, and thus keep their vessels in good sailing trim— five or six fares could be made in each season, instead of the two fares which they rarely exceed at present. The right of fishing within three marine miles of the land is very important, as regards the mackerel fishery; because the best and fattest fish are generally found in the largest schulls, in close proximity to the shores. To the cod-fisher, the right to dry and cure his fish on shore would also be important. The vessel could be kept in better trim, and fresh bait could be more readily procured; the fish would be more perfectly cured, and fitter for food, than under the present mode of salting and curing. A superior quality of this description of fish would open to us not only the market of Čalifornia, but also several foreign markets from which our fish are now excluded, by reason of their imperfect cure. Immediately after the disappearance of the ice in the Gulf of St. Lawrence, every spring, vast quantities of herrings draw near the shores, in order to deposite their spawn. Our fishermen cannot participate in this fishery, because they are unable to enter the gulf so early. The quantity of ice passing out by Cape Breton prevents their doing so until the season for this prolific fishery has passed. If our fishermen could land and set up fishing stations on the coasts within the Gulf of St. Lawrence, they might send home the season's catch, by freighting vessels, and winter their boats and part of their vessels there. In such case they would be ready to participate in the early herring fishery, the moment the ice left the shores; and having procured a sufficient quantity for curing, they would also be furnished with an ample supply of bait for the early cod-fishing, which is excellent. As the herrings approach the shores they are naturally followed by the cod, which feed upon them. In the early part of May the cod are found in great abundance within half a mile or a mile of the land, in very shoal water, of course, they may be taken with perfect ease, and therefore with much profit. Instead of returning to their port of ownership with the fares of herring and cod which might thus be taken before our vessels are now able to enter the gulf, these cod would be dried and cured in the best manner, by shore crews, and rendered fit for any market. The vessels and their fishing crews might at the same time be constantly and profitably occupied in pursuing closely the several fisheries, as they succeed each other, throughout the entire season, securing the best fish of every description, in the largest quantities. By leaving some of the boats and vessels on the coast, the fisheries, especially that for mackerel, might be prosecuted until some time after the period when our vessels are now obliged to leave the gulf on their homeward voyage, at which late period the finest fall mackerel are always taken. Permanent fishing stations within the gulf, with boats and vessels always there, would render the fishing seas considerably longer for our fishermen. They would then share in the early spring and late fall fisheries, from both which they are now excluded by the existing arrangements. It is only necessary to advert to the frightful loss of life and property which occurred in the Gulf of St. Lawrence last October, to show how advantageous it would be to our citizens, if, instead of remaining at sea through the heavy gales which frequently occur in the gulf, their fishing vessels had each some convenient fishing station, well sheltered, to |