• While disastrous to the West Indies and most injurious to Great Britain, yet the troubles between Britain and the United. States were im mensely profitable, for the time being, to the British North American colonies. To ensure the carrying of the West Indian supplies in British ships, American produce was collected in ports of the Maritime provinces and in Can ada, where it might be taken by sea in either American or British vessels, by overland trans port or by inland navigation. This stimulated the trade and shipping of the Canadian and Maritime provinces and enriched the colonial produce dealers. The ultimate benefit, however, of these and later abnormal conditions was more than doubtful. After the Peace of 1815, Can ada suffered a severe reaction, emphasized by an unfortunate land and immigration policy.
The enormous preference in the British market on British North American timber, which had been built up during the Napoleonic wars, was retained and developed because it en riched British shipowners and timber merchants. By the new Corn Law of 1815 a preference was granted to Canadian grain, but it was very un certain in its operation, since the grain was not admitted at all until the price had risen toquite a high level, in the case of wheat to about $2.10 a bushel.
The international restrictions necessary to preserve a fair equality for British shipping, under the disadvantages of her colonial system, involved further trouble with the United States. Britain admitted a reciprocal shipping trade be tween the home country and the United States, and between her colonial possessions and the United States in the inland waters of North America, but denied corresponding reciprocity by sea between the United States and her Amer ican colonial possessions. In 1818 the United States retaliated, and direct trade with the West Indies was again suspended. Halifax in Nova Scotia and Saint John in New Brunswick were then made free ports for American vessels bringing certain lines of goods necessary for the supply of the West Indies. In 1823 Ameri can vessels were admitted to the colonial trade generally, for all direct dealings between the United States and the colonies. Once more the trade of the Saint Lawrence languished, and complaints poured in upon the home government.
In 1825 Mr. Huskisson, who had revived the policy of Pitt, sought to promote freer trade in America. But he found it impossible as yet to grant perfect reciprocity in shipping. Differen tial duties were imposed in favor of British shipping in the trade between the United States and the West Indies. The Americans applied the same differentials on their side, and there resulted another period of non-intercourse, from 1826 to 1831, with corresponding activity and prosperity for the Saint Lawrence route and the British North American ports. By
admitting to the colonies provisions from the northern nations of Europe in their own ships, Huskisson managed to prevent the Americans from forcing his hand. They came to terms in 1831 and normal trade was once more resumed. But by this time the Colonial System was badly shattered, and almost the only thing left of the Navigation Acts was the British monopoly of the domestic shipping of the empire. The way was being gradually prepared for the final stroke of colonial economic emancipation.
In 1825 Huskisson weakened the corn laws by greatly increasing the preference on Cana dian wheat. Regardless of the local price, Canadian wheat was to be admitted at a uni form duty of five shillings per quarter. For a time the exports of wheat were greatly stimu lated, but the benefit was not permanent, and the cry for additional preferences was soon resumed.
The prosperous period of 1826-31, aug mented by large expenditures on Canadian pub lic works and an increased emigration, con tinued for a couple of years after the resumption of normal relations with the United States. But trade depression and political troubles brought Canada to a very low ebb in 1837-38. In 1841 the two Canadianprovinces were united, and their political freedom was greatly enlarged and trade revived.
In 1843, after urgent petitions, which more or less coincided with the rising demand in Britain for free food, Canada obtained the ominously liberal concession of access to the British market, at the nominal rate of one shil ling per quarter, for all the flour she could grind from her own, or imported American wheat, while the corn laws still stood against the rest of the world. Bad harvests and higher prices in Britain tended to enrich the Canadian merchants and millers, but precipitated the re peal of the corn laws in 1846, and the adoption of a free trade policy generally.
Free trade carried with it important changes for Canadian commerce, tariffs and transporta tion. The preference on Canadian grain had gone, and the preference on British North American timber soon followed. In 1847 Britain renounced the right to regulate Canadian trade, and in 1849, by the final repeal of the Navigation Acts, she gave up her monopoly of the domestic carrying trade of the empire. The general result was that the colonies were left to face the world on much the same terms as other countries. Though lacking in the experience which breeds prudence, those interests which had not been specially pampered entered upon their new career with much zest and enterprise, tending sometimes to rashness.