Page:History of merchant shipping and ancient commerce (Volume 3).djvu/158

 preferred, and thus the Canadian canals would engross the carrying trade of the North-Western States of America. But if, on the other hand, the advantage of the perfect inland navigation was more than counterbalanced by the rates of freight from Quebec and Montreal to Europe, the people of Western Canada, having no protection in the English markets by using the Canadian lines of communication, would send the whole of their produce by way of New York, and import such articles of foreign consumption as they required by the same route.

So long as the colony enjoyed Protection in the British market no injury to its commerce could arise, because the extent of the protection was generally sufficient to prevent the owners from divesting the Canadian produce of its British character, and it could not become available for the home market of America, unless on the payment of a heavy duty. Even with regard to American produce, the provision in the old Corn Law giving to American wheat and flour the same protection as Canadian if exported through Canada, with the payment of 3s. per quarter duty in the province, was, at most times, a sufficient inducement for many Americans to make shipments to Montreal, as well as for the Canadians to make purchases in the United States. When, however, by the repeal of the Corn Laws all protection was removed, the question became one of mere cheapness of transport; and taking an average of the preceding four years, the difference in freight was no less than 3s. per barrel of flour in favour