Page:History of merchant shipping and ancient commerce (Volume 3).djvu/159

 of New York over Montreal. Even, when the benefits enjoyed by Canada in her internal navigation, estimated at 1s. 6d. per barrel, were deducted, there would still remain in favour of New York, 1s. 6d. on each barrel of flour—an advantage quite sufficient to turn the whole export trade into that channel.

As the United States then admitted the transit of Canadian produce through their territory, the loss it encountered at New York arose from the necessity of complying with the Navigation Laws, which forbade its being imported into England in foreign ships (8 & 9 Vict., cap. 88, sect. 4). At the same time, it must, also, be noticed that, as freight in British ships from New York to England was no higher than the freight in American ships, this restriction, confessedly, had no appreciable influence on the question of transmission through Canada or the United States.

For some time, previously, the import trade of Western Canada, which, by means of protecting duties in favour of British ships and British goods, was forced to come by the St. Lawrence, had been changing its direction, and Montreal, which supplied the whole western country, was becoming deserted by the western merchants. The new Customs Law