approach at once the settlement of the question on a comprehensive basis.

"The American Commissioners said that with the view of avoiding the discussion of matters which subsequent negotiations might render it unnecessary to enter into, they thought it would be preferable to adopt the latter course, and inquired what, in that case, would be the basis which the British Commissioners desired to propose.

"The British Commissioners replied that they considered that the Reciprocity Treaty of June 5, 1854, should be restored in principle.

The American Commissioners declined to assent to a renewal of the former reciprocity treaty.

"The British Commissioners then suggested that, if any considerable modification were made in the tariff arrangements of that Treaty, the coasting trade of the United States and of Her Britannic Majesty's Possessions in North America should be reciprocally thrown open, and that the navigation of the River Saint Lawrence and of the Canadian Canals should be also thrown open to the citizens of the United States on terms of equality with British subjects.

"The American Commissioners declined this proposal, and objected to a negotiation on the basis of the Reciprocity Treaty. They said that that Treaty had proved unsatisfactory to the people of the United States, and consequently had been terminated by notice from the Government of the United States, in pursuance of its provisions. Its renewal was not in their interest, and would not be in accordance with the sentiments of their people. They further said that they were not at liberty to treat of the opening of the coasting trade of the United States to the subjects of Her Majesty residing in her Possessions in North America. It was agreed that the questions relating to the navigation of the River Saint Lawrence, and of the Canadian Canals, and to other commercial questions affecting Canada, should be treated by themselves.

eries.

"The subject of the Fisheries was further The Inshore Fish- discussed at the conferences on the 7th, 20th, 22d, and 25th of March. The American Commissioners stated that if the value of the inshore fisheries could be ascertained, the United States might prefer to purchase, for a sum of money, the right to enjoy, in perpetuity, the use of these inshore fisheries in common with British fishermen, and mentioned one million dollars as the sum they were prepared to offer. The British Commissioners replied that this offer was, they thought, wholly inadequate, and that no arrangement would be acceptable of which the admission into the United States free of duty of fish, the produce of the British fisheries, did not form a part, adding that any arrangement for the acquisition by purchase of the inshore fisheries in perpetuity was open to grave objection.

"The American Commissioners inquired whether it would be

necessary to refer any arrangement for purchase to the Colonial or Provincial Parliament.

"The British Commissioners explained that the Fisheries within the limits of maritime jurisdiction were the property of the several British Colonies, and that it would be necessary to refer any arrangement which might affect Colonial property or rights to the Colonial or Provincial Parliment; and that legislation would also be required on the part of the Imperial Parliament.

Reciprocity Pro

"During these discussions the British Commissioners contended that these inshore fishposals. eries were of great value, and that the most satisfactory arrangement for their use would be a reciprocal tariff arrangement, and reciprocity in the coasting trade; and the American Commissioners replied that their value was overestimated; that the United States desired to secure their enjoyment, not for their commercial or intrinsic value, but for the purpose of removing a source of irritation; and that they could hold out no hope that the Congress of the United States would give its assent to such a tariff arrangement as was proposed, or to any extended plan of reciprocal free admission of the products of the two countries; but, that, inasmuch as one branch of Congress had recently, more than once, expressed itself in favor of the abolition of duties on coal and salt, they would propose that coal, salt, and fish be reciprocally admitted free; and, that, inasmuch as Congress had removed the duty from a portion of the lumber heretofore subject to duty, and as the tendency of legislation in the United States was toward the reduction of taxation and of duties in proportion to the reduction of the public debt and expenses, they would further propose that lumber be admitted free from duty from and after the first of July, 1874, subject to the approval of Congress, which was necessary on all questions affecting import duties.

"The British Commissioners, at the conference on the 17th of April, stated that they had referred this offer to their Government, and were instructed to inform the American Commissioners that it was regarded as inadequate, and that Her Majesty's Government considered that free lumber should be granted at once, and that the proposed tariff concessions should be supplemented by a money payment.

The American Commissioners then stated Final Arrangement, that they withdrew the proposal which they had previously made of the reciprocal free admission of coal, salt, and fish, and of lumber after July 1, 1874; that that proposal had been made entirely in the interest of a peaceful settlement, and for the purpose of removing a source of irritation and of anxiety; that its value had been beyond the commercial or intrinsic value of the rights to have been acquired in return; and that they could not consent to an arrangement on the basis now proposed by the British Commissioners; and they renewed their proposal to pay a money

equivalent for the use of the inshore fisheries. They further proposed that, in case the two Governments should not be able to agree upon the sum to be paid as such an equivalent, the matter should be referred to an impartial Commission for determination.

"The British Commissioners replied that this proposal was one on which they had no instructions, and that it would not be possible for them to come to any arrangement except one for a term of years and involving the concession of free fish and fish-oil by the American Commissioners; but that if free fish and fish-oil were conceded, they would inquire of their Government whether they were prepared to assent to a reference to arbitration as to money payment.

"The American Commissioners replied that they were will ing, subject to the action of Congress, to concede free fish and fish oil as an equivalent for the use of the inshore fisheries, and to make the arrangement for a term of years; that they were of the opinion that free fish and fish-oil would be more than an equivalent for those fisheries, but that they were also willing to agree to a reference to determine that question and the amount of any money payment that might be found necessary to complete an equivalent, it being understood that legislation would be needed before any payment could be made. "The subject was further discussed in the Articles XXVIII.- conferences of April 18 and 19, and the British Commissioners having referred the last proposal to their Government and received instructions to accept it, the Treaty Articles XVIII. to XXV. were agreed to at the conference on the 22d of April.”

XXV., Treaty of
Washington.

The articles thus agreed to were embodied in the treaty which was signed at Washington on May 8, 1871.

Restoration of Fishing Liberties.

By Article XVIII. it was provided that, in addition to the liberty secured by the convention of 1818 of taking, drying, and curing fish on certain coasts of the British North American colonies, the inhabitants of the United States should have, in common with the subjects of Her Britannic Majesty, the liberty, for the term of years mentioned in Article XXXIII.' of the treaty, "to take fish of every kind, except shell fish, on the sea-coasts and shores, and in the bays, harbors and creeks, of the Provinces.

This article provided that Articles XVIII. to XXV., inclusive, and Article XXX. should go into operation as soon as the necessary laws should have been passed to give them effect, and remain in force for ten years thereafter, and further, until the expiration of two years after either party should have notified the other of its wish to terminate them, each party being at liberty to give such notice at the end of the period of ten years or at any time afterward.

of Quebec, Nova Scotia, and New Brunswick, and the colony of Prince Edward's Island, and of the several islands thereunto adjacent, without being restricted to any distance from the shore, with permission to land upon the said coasts and shores and islands, and also upon the Magdalen Islands, for the purpose of drying their nets and curing their fish; provided that, in so doing, they do not interfere with the rights of private property, or with British fishermen, in the peaceable use of any part of the said coasts in their occupancy for the same purpose." And it was provided that the liberty thus defined applied solely to the sea-fishery, and that the salmon and shad fisheries, and all other fisheries in rivers and the mouths of rivers, were reserved exclusively for British fishermen.

On the other hand, it was agreed by Article XIX. that British subjects should have, in common with the citizens of the United States, and subject to such terms, conditions, and limitations as were expressed in the preceding article, the liberty to take fish, and to land for the purpose of drying nets and curing fish, on the eastern seacoast and shores of the United States north of the thirty-ninth parallel of north latitude, and on the shores of the adjacent islands, and in the bays, harbors, and creeks of such seacoasts and islands.

Reservations.

By Article XX. it was provided that the places designated by the commissioners appointed under Article I. of the Reciprocity Treaty of June 5, 1854, upon the coasts of the two countries, as places reserved from the common right of fishing under that treaty, should in like manner be regarded as reserved from the common right of fishing under the present article; and that, in case any question should arise as to the common right of fishing in places not thus designated as reserved, a commission should be appointed to designate such places, in precisely the same manner as under the treaty of 1854.

Free Admission of

In addition to these stipulations, it was Fish and Fish Oil. agreed by Article XXI. that, for the term of years mentioned in Article XXXIII. of the treaty, "fish-oil and fish of all kinds, (except fish of the inland lakes, and of the rivers falling into them, and except fish preserved in oil.) being the produce of the fisheries of the United States, or of the Dominion of Canada, or of Prince Edward's Island," should "be admitted into each country, respectively, free of duty."

Arbitration as

pensation.

It being asserted by Great Britain, but not to admitted by the United States, that the priv Question of Com- ileges accorded to the citizens of the United States under Article XVIII. of the treaty were of greater value than those accorded to British subjects under Articles XIX. and XXI., it was provided by Article XXII. that commissioners should "be appointed to determine, having regard to the privileges accorded by the United States to the subjects of Her Britannic Majesty, as stated in Articles XIX. and XXI. of this Treaty, the amount of any compensation which, in their opinion, ought to be paid by the Government of the United States to the Government of Her Britannic Majesty in return for the privileges accorded to the citizens of the United States under Article XVIII. of this Treaty." It was agreed that any sum of money which the commissioners might so award should be paid by the United States in a gross sum, within twelve months after such award should have been given. For the purpose of carrying into effect the foregoing agreement to arbitrate, provision

Provisions for a

Mixed Commission. was made (Article XXIII.) for the appointment of three commissioners, one to be named by the President of the United States, one by Her Britannic Majesty, and a third by the President of the United States and Her Britannic Majesty, conjointly; or, in case they should not have named him within a period of three months after the article took effect, by the representative at London of His Majesty the Emperor of Austria and King of Hungary. The commissioners were to meet in Halifax, Nova Scotia, at the earliest convenient period after they should have been named, and, before proceeding to any business, to make and subscribe a solemn declaration that they would impartially and carefully examine and decide the matters referred to them to the best of their judgment, and according to justice and equity, such declaration to be entered on the record of their proceedings. Each government was authorized to name one person to attend the commission as its agent, to represent it generally in all matters connected with the commission; and the commission was authorized to employ a secretary and any other necessary officer or officers to assist it in the transaction of its business. Each of the high contracting parties was to pay its own commissioner and agent or counsel, and all other expenses were to be defrayed by the two governments in equal moieties.

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