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Date: 1862-02-20
By: Legislative Council of New Brunswick
Citation: New Brunswick, Legislative Council, Journal of the Legislative Council of the Province of New Brunswick, 1862 at 21-36.
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JOURNAL

OF THE

LEGISLATIVE COUNCIL

OF THE

PROVINCE OF NEW BRUNSWICK

FROM

The twelfth February to the twenty third April 1862:

Being the First Session of the Nineteenth General Assembly.

FREDERICTON.

J. SIMPSON, PRINTER TO THE QUEEN’S MOST EXCELLENT MAJESTY.

1862.

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THURSDAY, 20th February, 1862.

PRESENT:

THE HON. Mr. Sanders sitting as President.

Mr. Botsford,
” Kinnear,
” Hazen,
” Davidson,
” Wark,
” Hamilton,
” Seely,
” Robinson,
” Mitchell.
” Chandler,
” Minchin,
” Harrison,
” Odell,
” Steeves,
” Gordon,
” Rice,
” Earle,

PRAYERS.

A Message from His Excellency the Lieutenant Governor was delivered by the Honorable Mr. Steeves, a Member of Her Majesty’s Executive Council.

The Honorable Mr. Saunders read the same and it was again read by the Clerk, as follows:—

New Brunswick —- Message to the Legislative Council.

ARTHUR H. GORDON.

His Excellency the Lieutenant Governor lays before the Legislative Council Copies of Correspondence relative to the arrival of Troops and the Defence of the Province, viz:—

1. Despatch from the Secretary of State to the Lieutenant Governor, dated 7th December, 1861:
2. Despatch from the Lieutenant Governor to the Secretary of State, dated 23rd December, 1861:
3. Despatch from the Lieutenant Governor to the Secretary of State, dated 31st December 1861, (with Enclosures):
4. Despatch from the Secretary of State to the Lieutenant Governor, dated 24th January 1862:
5. Despatch from the Lieutenant Governor to the Secretary of State, dated 4th January 1862:
6. Despatch from the Secretary of State to the Lieutenant Governor, dated 25th January 1862.

Also, Copies of a Correspondence relative to the adoption of a Decimal System of Coinage, viz:—

1. Despatch from the Lieutenant Governor to the Secretary of State, dated 10th December, 1859, (with Enclosure):
2. Despatch from the Lieutenant Governor to the Secretary of State, dated 25th June 1860, (with Enclosure):
3. Despatch from the Secretary of State to the Lieutenant Governor, dated 16th October, 1860:
4. Despatch from the Lieutenant Governor to the Secretary of State, dated 10th November, 1860, (with Enclosure):
5. Despatch from the Lieutenant Governor to the Secretary of State dated 19th January 1861, (with two Enclosures):
6. Despatch from the Secretary of State to the Lieutenant Gcvernor dated 13th February, 1861:
7. Despatch from the Secretary of State to the Lieutenant Governor, dated 28th December, 1861, (with Enclosure)

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Also, Copies of Correspendence relative to the promotion of Commercial Intercourse between the Provinces of British North America, viz:—

1. Despatch from the Lieutenant Governor to the Secretary of State, dated 3rd December, 1859, (with Enclosure):
2. Despatch from the Secretary of State to the Lieutenant Governor, dated 8th April 1860, (with Enclosure):
3. Despatch from the Lieutenant Governor to the Secretary of State, dated 27th September, 1861, (with Enclosure):
4. Despatch from the Secretary of State to the Lieutenant Governor, dated 5th November, 1861.

20th February, 1862.

A.H.G.

Correspondence relative to the Defence of the Province and the arrival
of Troops.

Downing Street, 7th December, 1861.

SIR,—You have already learned from other sources the events which place in jeopardy the friendly relations that have so long subsisted between this Country and the United States. Prompt measures have been taken to send reinforcements and large additional supplies of arms and military stores into British North America, in order to be prepared for all contingencies. My object in this Despatch is to assure you that Her Majesty’s Government will neglect no exertions to provide for the protection (should the need arise) of the loyal and important Province of New Brunswick, whilst on the other hand they rely with confidence on the well known patriotism and public spirit of the inhabitants to spare no effort on their part for the defence of their country.

2. I leave it to you, in concert with your constitutional advisers, to take every stop which is open to you in this emergency for assuring the safety of the Province, and lending an effective co-operation to the Commander of the Queen’s Forces in the measures adopted by him for that purpose.

I have, &c. (Signed) NEWCASTLE.

Lieut. Governor The Hon. Arthur H. Gordon, &c. &c. &c.

Fredericton, December 23, 1861.

MY LORD DUKE.—I have the honor to acknowledge the receipt of Your Grace’s Despatch of the 7th instant, which was delivered to me by special messenger.

2. The people of this Province will learn with the liveliest satisfaction that in case of need Her Majesty’s Government will neglect no exertions to provide for their protection and defence; and Your Grace may rely with confidence upon the loyal and gallant spirit which will nerve every arm in New Brunswick to repel hostile aggression.

3. It will be my duty, in concert with my advisers, to provide as, far as possible for the safety of the Province, and to lend effective co-operation to the Commander of Her Majesty’s Forces in New Brunswick, and I venture to assure Your Grace, that in the discharge of these duties I shall be encouraged by their zealous and hearty support, as well as by that of the whole population of the Province.

I have, &c. (Signed) A. H. GORDON.

To His Grace the Duke of Newcastle, K. G., &c. &c. &c.

Saint John, New Brunswick, Dec. 31st, 1861.

MY LORD DUKE,—I have the honor to enclose for Your Grace’s information, Copies of a letter addressed by me to the Mayor of this City, and of His Worship’s reply, transmitting to me a Resolution agreed upon by the City Council.

2. In transmitting these Documents to Your Grace, I am confident that it is needless for me to suggest to Your Grace the propriety of acknowledging in suitable terms the liberal and public-spirited conduct of the Corporation of Saint John upon the present occasion, as I am, certain that such acknowledgment will at, once be felt by Your Grace

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to be their due. It is therefore only necessary for me to assure Your Grace, that any expression of the approbation of the Home Government will be highly valued in this City.

I have the honor to be, my Lord Duke,

Your Grace’s most obedient, humble servant,

(Signed) A. H. GORDON.

His Grace the Duke of Newcastle, K.G., &c. &c.

Saint John, December 30, 1861.

SIR—I deem it my duty to inform your Worship that from two to three thousand Troops, including a Battalion of Her Majesty’s Guards, will be disembarked here in the course of the next few days, and I have to request that you will communicate this intelligence to the Gentlemen of the Municipal Council.

I have no doubt that the Magistracy and people of Saint John will fully appreciate the prompt and energetic action of the Home Government for the defence of the Province, and this great Commercial City, and that they will receive the troops sent for their protection in such a manner as may seem to them best calculatad to evince the sentiments they entertain.

I have the honor to be, Sir, your obedient servant,

A.H. GORDON, Lieut. Governor.

The Worshipful the Mayor of Saint John.

Mayor’s Office, Saint John, 30th December, 1861.

SIR,—I have the honor to acknowledge the receipt of Your Excelleney’s communication of this day’s date, informing me of the expected arrival in this City of a considerable body of Her Majesty’s Troops, which I took an early opportunity to lay before the Common Council, and I have much pleasure in transmitting to Your Excellency the accompanying Resolution of that body to provide accommodation for a part of the Force.

I have the honor to be Your Excellency’s humble servant

(Signed) THOMAS McAVITY, Mayor.

His Excellency The Lieutenant Governor.

At a Common Council holden at the Mayor’s Office on the 30th day of December, A.D. 1861,—

Read a Communication from His Excellency the Lieutenant Governor, informing the Common Council of the expected arrival of a large body of Troops in this City within a few days.

Whereupon, on motion of Alderman Foster, seconded by Alderman Rend, it was

Resolved, unanimously, That this Corporation, being desirous of testifying their grateful appreciation of the prompt and energetic action of Her Majesty’s Government in providing for the defence of this Province, will most cheerfully undertake to provide lodging, stoves, fuel, and straw, for five hundred men of Her Majesty’s Forces.

Extract from the Minutes.

(Signed) W. R. M. BURTIS, Common Clerk.

Downing Street, 24th January, 1862.

SIR,—I have had the honor to receive your Despatch, No. 19, of the 31st of December, accompanied by copies of the Correspondence which passed between you and the Mayor and City of Saint John, on the subject of the large number of Troops then about to disembark at that City.

The Mayor of Saint John transmitted to you a proceeding of the Common Council, conveying their Resolution to undertake, as a mark of their good will, to provide lodgings, stoves, fuel, and straw for 500 men of Her Majesty’s Forces.

Nothing can be more gratifying than the manner in which this determination has been announced to you, and I beg that you will convey to the Corporation of Saint John, the sense entertained by Her Majesty’s Government of their liberality and public spirit. Her

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Majesty’s Government are satisfied that their efforts to provide for the defence of the Provinces, could not be better supported than by such displays of the desire of important resident authorities to afford the benefit of their Corporation.

I have the honor to be, Sir, your obedient servant,

(Signed) NEWCASTLE.

The Hon. Arthur H. Gordon, &c. &c. &c.

Fredericton, January 4, 1862.

MY LORD DUKE,—I have the honor to enclose, for Your Grace’s information, a copy of resolutions passed at a Public Meeting held in this City on the 3rd instant, from which Your Grace will perceive that the same loyal and generous spirit which has induced the citizens of Saint John to accord so hearty a welcome to the Troops on their arrival, also animates the inhabitants of this City and district. I believe I may safely add that a similar sentiment exists in every County and Parish throughout the Province.

I have the honor to be, my Lord Duke,

Your Grace’s most obedient humble servant,

(Signed) ARTHUR H. GORDON.

His Grace the Duke of Newcastle, K.G., &c. &c. &c.

Downing Street, 25th January, 1862.

SIR,—I have received with much satisfaction your Despatch No. 4, of the 4th of January, accompanied by a copy of Resolutions passed at a Public Meeting held in the City of Fredericton on the previous day. It is a subject of congratulation to Her Majesty’s Governmment to peceive from the Resolutions of this meeting, which I doubt not may be taken as a sample of public opinion in other parts also of the Province, the loyalty and
patriotic sentiments which are entertained in New Brunswick, and the generous welcome which the inhabitants are prepared to offer to Her Majesty’s Troops who have been sent to unite with them in the defence of their Country.

I have the honor to be, Sir, your obedient servant

(Signed) NEWCASTLE.

Correspondence relative to the adoption of a Decimal System of Coinage.

Government House, Fredericton, Dec. 10, 1859.

My LORD DUKE,—My Council have had under their consideration the expediency of adopting in, this Province a decimal, system of computation,  which system has, as Your Grace is aware, been recently adopted both in Canada and in Nova Scotia, and I have the honor to forward to Your Grace a copy, herein enclosed, of the Memorandum on this subject which has been this day submitted to me.

2. I should state that it is not proposed to alter the value in current money of the round Sterling, which will continue to be a legal tender of £1 4 4 Currency.

3. But the Copper Coins recently struck for this Province, of the current value respectively of one Penny currency and one Halfpenny currency, would not, if their present value were retained, be available as component parts of a Provincial Decimal Coinage.

4. It has therefore been proposed to alter the value of the Provincial Penny piece from 1 2-3 cents (its present current value,) to two Cents, and that of the Provincial Halfpenny piece from a 5-6 Cents to one Cent, which alteration would bring both Coins into conformity with the Decimal system. I should add that by the Act (Vic. 15, c. 85,) which Act with the (Vic. 16 c. 33,) (vide Prov. Stat. Vol. II, pp. 119 to. 124,) regulate the Currency of this Province, it is provided that Copper Coins shall not be a legal tender to any amount of more than one Shilling currency, or 20 Cents, and I concur in the opinion that the proposed change in the current value of the Penny and Halfpenny coins would not cause any practical inconvenience.

5. As the Law now stands, the Silver Coin’s of England are the only Silver Coins (no Provincial Coin has as yet been struck) which can be legally tendered here in any payment, and the supply of these Coins has been generally sufficient for the wants of the

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Province so far as legal tenders are concerned. The Silver Coinage (especially the Quarter Dollar) of the United States, also circulates freely here for ordinary purposes; but, as I have before stated, these Coins are not a legal tender, and the adoption by the Provincial Legislature of a system of decimal computation, would therefore, in the opinion of my Council, (in which I concur) render it advisable that Provincial Silver Coins, in accordance with this system of computation, of the current value of 5, 10, and 20 Cents respectively (the intrinsic value of the Coins being left, of course, for the decision of Her Majesty’s Government) should be struck.

6. The practical adoption of the scheme thus brought under Your Grace’s notice, or of any part of it, is, of course, dependant on the sanction of the Legislature; but it is thought desirable that the new coins, if Her Majesty should see fit to direct them to be struck, should be ready for issue at the time when the system of decimal computation will (if adopted by the Legislature) come into operation; and Your Grace will observe that the end of the current fiscal year (viz. the 1st November 1860) is, the time appointed by my Council.

7. I have therefore, thought it right both with the view of preventing unnecessary delay in the event of Her Majesty approving of the proposed new coinage, and also of affording to Your Grace the earliest possible information with respect to the character of the proposed change, to forward to Your Grace a copy of the Memorandum submitted to me by my Council together with these explanatory observations.

8. I should, however, explain to Your Grace that, pending the consideration of the matter by the Legislature, my Council are not prepared to undertake the responsibility of advising me to incur any expense, whether preliminary or otherwise, for providing the new Provincial Coins, which would not be required if the decimal system of computation should not be adopted.

9. And in connection with this subject, I wish to state that in the course of last year (1858) a Bill was introduced into and passed the House of Assembly, having for its object the establishment, as a legal tender, of certain Foreign silver coins. This Bill, however, (of which a copy is enclosed) did not pass the Legislative Council, and was not therefore presented to me for my assent.

10. But it is not impossible that the proposals embodied in the Bill of 1858, or some parts at least of these proposals, may be mooted next year; and as I am led to believe from the Correspondence which has passed in former years between Her Majesty’s Government and the Governments of these Province, (I refer especially to Earl Grays Despatch Nos. 301-2, December 1851, to Sir Edmund Head,) that there may be grave objections to the recognition as a legal tender of some of, if not of all, the Foreign coins mentioned in the Bill, I think it right to submit this question also to Your Grace for such instructions as Your Grace may deem requisite.

I have, &c. (Signed) J.H.T. MANNERS-SUTTON.

To His Grace The Duke of Newcastle, K.G., &c. &c. &c.

To His Excellency the Honorable J.H.T. Manners-Sutton, Lieutenant Governor of the
Province of New Brunswick, &c. &c. &c.

The Legislatures of the neighbouring Provinces of Canada and Nova Scotia having passed Laws establishing a Decimal Currency, the Committee of Council advise the preparation of a Law establishing a like Currency in New Brunswick, in most respects similar to the Canadian Act, to be submitted to the Legislature at the approaching Session, and to come into force on the first day of November next, the close of the current fiscal year; the Committee also advise that a silver and copper coin should be struck for the use of this Province, to be put into circulation when the proposed Act comes into operation, and to correspond in value with the coin recently imported by the Canadian Government.

2. For the purpose of facilitating the necessary arrangements, they request that Your Excellency will take such steps as will secure the permission to strike such coin.

(Signed) CHARLES FISHER,
S.L. TILLEY,
CHARLES CONNELL,
JAMES BROWN,
W.H. STEEVES,
DAVID WARK,
PETER MITCHELL.

December 10, 1859.

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Fredericton, N.B., June 25 1860.

MY LORD DUKE,—With reference to the subject matter of my Despatch of the 23rd instant, I have the honor to inform Your Grace that my Council have recommended that certain Decimal Coins (both silver and bronze) should be struck and issued for the Province. I enclose a copy of the Memorandum submitted to me on the 23rd instant, by my Council on this subject, which has been approved by me.

2. I wish to be permitted to state that the last Section of the Act (23 Victoria, Cap. 48) passed last Session, which enacts that all Public Accounts shall be made up and rendered in dollars and cents, provides that that Act should come into operation on the first November next; and it is therefore desirable that the decimal coins should, if possible, be ready for circulation by that time. It is proposed to defray the cost of the coin through Messrs. Baring & Co. in London.

I have, &c. (Signed) J. H. T. MANNERS-SUTTON.

To His Grace the Duke of Newcastle, K.G., &c. &c. &c.

To His Excellency The Honorable John Henry Thomas Manners-Sutton, Lieutenant
Governor of the Province of New Brunswick, &c. &c. &c.

We advise Your Excellency to move Her Majesty’s Government to have the following Coins struck for the use, of this Province, viz:—

Ten thousand dollars in value, in cents, of bronze.
Thirty thousand dollars in value, in twenty cent pieces, of silver.
Fifteen, thousand dollars in value, in ten cent, pieces, of silver.
Five thousand dollars in value, in five cent pieces, of silver.

The whole to be of the same description as the Canadian Coins struck for the like denominations, only that the Motto impressed thereon shall be “New Brunswick,” instead of “Canada.”

(Signed) CHARLES FISHER,
W.H. STEEVES,
JAMES BROWN,
P. MITCHELL,
S.L. TILLEY.

Downing Street 18th October, 1860.

SIR,—I am directed by the Secretary of State to acknowledge your Despatches named in the margin,* on the subject of an Act passed by the Provincial Legislature of New Brunswick, and, entitled “An Act relating to the mode of Accounting and Currency,” which is submitted for Her Majesty’s pleasure, and of a requisition for certain decimal coins, silver and bronze, which your Government wish to be struck and issued for the Province, of a similar character to those already introduced into Canada. I hope to be able, very shortly, to convey to you Her Majesty’s decision on the Currency Act.

2. With regard to the proposed coinage, Her Majesty’s Government think it right to acquaint your Government, before the requisition for silver pieces of 20 cents and ten cents, which extends to a heavy amount, is actually executed, that they have reason to believe, from enquiries which have been made, (though this information is not as yet before them in an official shape,) that the silver pieces of 20 cents and 10 cents, coined a year or two since for Canada, have not proved acceptable to the public in that Province a large stock of them consequently being left on the lands of the Canadian Government. As your Despatches do not advert to any such circumstances as those just mentioned, of which possibly you may not have been informed, it appears best to postpone incurring the very considerable expense which the requisition of the Council contemplates, on account of the same description of coin as those which are stated to have been unsuccessful in Canada, until you have had an opportunity of communicating on the subject with the Governor General of Canada, who has been requested by this Department to forward to you the latest authentic information in regard to it. The Canadian Government if possessing, as is understood, a stock of coins which they are unable to circulate, would no doubt be glad to transfer any portion of them to New Brunswick, but Her Majesty’s Government leave you to judge whether this course would suit the views of your Government or the purposes of the Act which you submit.

3. The Secretary of State hopes that the delay caused by this reference may not prove inconvenient to your Government, but he thinks it on the whole safest to await your reply

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before any considerable expense is incurred for the coinage of the 20 cent and 10 cent pieces, in case your Government may think fit to countermand or modify the requisition for them. In the meantime, the Lords of the Treasury have been requested, subject to Her Majesty’s decision on the Currency Act, to prepare for the speedy execution of that requisition, in the event of its being adhered to, and to proceed with the coinage of the other pieces applied for.

I have, &c. (Signed) C. FORTESCUE.

Lieut. Gov. The Hon. J.H.T. Manners-Sutton, &c. &c. &c.

*10th December, 1859; 23rd June, 1860; 25th June, 1860.

Government House, Fredericton, November 10, 1860.

MY LORD DUKE,—I have the honor to acknowledge the receipt of the Despatch marked in the margin,* and to inform Your Grace that I lost no time in communicating the contents of that Despatch to my Council. The enclosed copy of a Memorandum which they have submitted to me will place Your Grace in possession of the grounds on which they adhere to the recommendation expressed in their Memorandum of the 23rd June, 1860.

2. I have also the honor to inform Your Grace, that the necessary instructions have been given to Messrs. Baring to defray the cost, and to provide for the transmission here of the Coins, silver and bronze, which may be struck for this Province; and to state that my Council have expressed to me their opinion that as the Act 23 Victoria, Chapter 48, (which enforces in all Public Offices the adoption of the Decimal system of computation,) is now in operation, inconvenience may be apprehended if any long period should lapse before an adequate amount of Decimal Coins available for circulation here.

I have, &c. (Signed) J.H.T. MANNERS-SUTTON.

To His Grace the Duke of Newcastle, K.G. &c. &c. &c.

*October 16, 1860.

To His Excellency the Honorable J.H.T. Manners-Sutton, Lieutenant Governor of the
Province of New Brunswick, &c. &c. &c.

The Council have had under consideration the Despatch of 16th October, 1860, No. 28, relative to the Order forwarded by Your Excellency for Silver and Bronze Coin for this Province.

2. We have had no reason for supposing that the Canadian Government have experienced any difficulty in putting the Silver Coin imported by them into circulation, and admitting the supposition stated in the Despatch referred to, to be correct, it cannot affect our position.

3. The whole quantity of Silver and Bronze Coin ordered for New Brunswick, amounts to only sixty thousand dollars, and, when received, will be put into, immediate circulation.

4. In the opinion of the Council, there are several reasons why the surplus Silver Coins of Canada cannot be advantageously used for New Brunswick; one of the most important is, that our Law does not make the Canadian Coin a legal tender in this Province.

(Signed) CHARLES FISHER,
S.L. TILLEY,
W.H. STEEVES,
JAMES BROWN,
JAMES STEADMAN.

10th November, 1860.

Government House, Fredericton, January 19, 1861.

MY LORD DUKE,—I have the honor to inform Your Grace, (with reference to the Correspondence marked in the margin,)* that I received a few days ago the Communication from the Administrator of the Government of Canada, of which a Copy is enclosed. This Communication was submitted by me to my Council for their information and consideration, and they have this day laid before me a Memorandum, of which also I have the honor to
transmit a Copy to Your Grace.

I have, &c. (Signed) J.H.T. MANNERS-SUTTON.

His Grace the Duke of Newcastle, K.G., &c. &c. &c.

* October 16, 1860, from Mr. Fortescue; November 10, 1860, to Duke of Newcastle; December 28, 1860, Inclosure No. 1; January 19, 1861, Inclosure No. 2.

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Montreal, December 28, 1860.

SIR,—I have the honor, by direction of the Secretary of State for the Colonies, to transmit for Your Excellency’s information the enclosed Copy of a Minute of the Executive Council of Canada, approved by myself relative to the circulation of the decimal Coinage in this Province.

I have, &c. (Signed) W.F. WILLIAMS,

Lieut. Gen. Administering the Government.

To His Excellency the Lieutenant Governor, &c. &c. New Brunswick.

Copy of a Report of a Committee of the Honorable the Executive Council, approved by His Excellency the Administrator of the Government in Council, on the ————

The Committee have given their consideration to a Report, dated 19th December, 1860, from the Honorable the Minister of Finance, upon a Despatch from the Under Secretary of State for the colonies, dated 16th October, 1860, requesting Your Excellency to give the Lieutenant Governor of New Brunswick the latest authentic information as to the circulation of the new coinage in Canada.

2. The Minister of Finance reports that the new coinage obtained for Canada, consisted of the following denominations:—

3. That of this amount there has been put in circulation $346,978 40, and there remains $90,759 65. the coinage on hand consisting principally of cent pieces.

4. That the total cost of the coin was $358,279 06, and its nominal value $437,641 93, showing an apparent profit of $79,362 87.

5. That the Silver coinage yielded no gain the profit arising out of the Bronze cent pieces.

6. That the coinage was received in the winter of 1858-9. Two years having therefore lapsed, and up to this time the whole amount obtained has not been placed in circulation.

7. That the Silver coinage consisted of pieces of 20, 10, and 5 cents. That it will be observed that the two former coins represented the shilling and six pence in Halifax currency, and it was no doubt supposed that they would, be found acceptable from this cause. But in the case of the 20 cent coin, sufficient regard was apparently not given to the circumstances that no coin representing a similar sub-division, either of the Halifax pound, (which is not itself represented by any coin) nor of the American dollar, had previously circulated either in Canada or in the adjoining States. That it was consequently not required in the ordinary retail transactions of the country, and very considerable difficulty has been experienced in placing it in circulation. That another objection raised to it has been its near approach in size and weight to the English shilling and American quarter dollar, requiring inspection of the coin. That this coin cannot be said to be in favour with the public, and it is not probable that the Government will attempt any further issue of this denomination.

8. That the same objections do not strictly apply to the 10 cent and 5 cent pieces, which correspond with similar coins in the United States, and that a limited issue will no doubt be acceptable to the public, and facilitate retail trade.

9. That no further demand has as yet been made for a supply of these denominations.

10. That the bronze coin of one cent may be considered merely as a “token,” possessing no real value at all approaching its denomination. That the sane remark, however, applies to all copper coins, though in less degree, and as the bronze is lighter, handsomer, and much less bulky, it might reasonably have been expected to make its way into early circulation. That this it has certainly not done, which may probably arise from the loss
which the holders of the former copper coin would necessarily sustain in being compelled

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(in withdrawing it from circulation.) to accept only the intrinsic value of what they now hold, having taken it at its nominal value.

11. That this cause could be removed by the Government authorizing the exchange of the bronze for the copper coins, each at their nominal value, by which no serious loss to the Exchequer, or the public would arise, as the old copper coinage is probably intrinsically worth as much as the bronze including the expense of coinage. That it has not, however, yet been decided, by the Canadian Government that this step should be taken.

12. That in reviewing the whole question, he, the Minister of Finance, is of opinion that the coinage of 20 cent pieces has not met the public necessities or convenience; and that it would be much more desirable to adopt a coin of 25 cents or a quarter dollar.

13. That as regards the lower denominations a question of preference arises between the American 12 1/2 cent, and the 10 cent. That for in my purposes the 12 1/2 cent, being one-half the quarter dollar, is to be preferred, but it is objectionable as containing fractions of a cent, and it is probably better in Canada, where the 10 cent coin has been introduced, to adhere to it, rather than to issue another coin so nearly equal in value. That, were the point entirely new, the public would, it is believed, rather have coins of 12 1/2 than of 10 cents.

14. That the coin of 5 cents is very useful as a substitute for the heavier and baser metals, and may be as usefully employed in New Brunswick as in Canada.

15. The Minister of Finance submits, that in view of the similarity of condition in the British American possessions of the Crown, it would be very desirable that a mutual understanding should exist among the several Provinces for the issue of an uniform coinage, and that in the case of Canada the circumstances connected with the recent issue need form no difficulty in the consideration of the denominations of the coins to be issued.

16. That should the Government of New Brunswick desire a supply of the Canadian bronze cent coins, he would recommend that one half of the quantity now on hand should be transferred at its cost.

17. The Committee concur in the views expressed by the Minister of Finance, and submit the same or Your Excellency’s approval.

Certified. (Signed) WM. H. LEE, C.E.C.

To His Excellency The Honorable J.H.T. Manners-Sutton, Lieutenant Governor of the
Province of New Brunswick, &c. &c. &c.

The Committee of Council have had under consideration the Despatch of His Excellency the Administrator of the Government of Canada, and the Inclosure relative to the circulation of the Decimal Coin in that Province, and they see no reason for changing the opinion expressed to Your Excellency by them in the Memorandum of 10th of November 1860, relative to the Silver and Bronze Coin ordered to be struck for circulation in this Province.

2. Should the bronze one cent pieces ordered in England not arrive before the opening of the communication with Canada via Portland, we would advise Your Excellency to obtain a portion of their surplus bronze Coins upon the terns named in the Report of the Minister of Finance.

(Signed) CHARLES FISHER,
S.L. TILLEY,
JAMES STEADMAN,
JAMES BROWN,
W.H. STEEVES.

January 19, 1861.

Downing Street, 13th February, 1861.

SIR,—I have the honor to acknowledge your Despatches No. 87, dated the 10th November 1860, and No. 2, dated the 19th January 1861; enclosing Copies of Memoranda submitted to you by your Executive Council, on the subject of a preparation of a new Coinage for New Brunswick. I have to inform you that Copies of these Despatches and Inclosures have been forwarded, as received, to the Lords Commissioners of Her Majesty’s Treasury, with a request that they will give effect to the wishes of the Colonial Government in every respect, and with as little delay as possible.

I have, &c. (Signed) NEWCASTLE.

The Hon. J.H.T. Manners-Sutton, Lieut. Governor, &c.

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Downing Street, 28th December, 1861.

SIR,—With reference to former Correspondence, I have the honor to transmit to you a copy of a Letter from the Master of the Mint on the subject of the new Coinage required for the Provinces of New Brunswick and Nova Scotia.

I have, &c. (Signed) NEWCASTLE.

The Hon. Arthur Gordon, &c. &c. &c.

Mr. Graham to Mr. Hamilton.

Royal Mint, 16th December, 1861.

SIR,—With reference to the new coinage for Nova Scotia and New Brunswick, referred to in your letter of the 13th instant, in which a copy of Mr. Elliot’s letter of 5th December is enclosed, and information required respecting the time when these coins will be ready, I am glad to be able to inform you, that the Copper coinage for both Provinces is now completed, and will immediately be delivered to Messrs. Baring, the Agents for the Colonies. The Copper coinages referred to were taken in hand as soon as the Mint was relieved from large Gold and Silver coinages required by the Bank and the public, which have occupied the coining department from this time last year till November last. The Bank have again imported Gold into the Mint to the amount of £2,000,000, which will occupy the department about two months, and precludes during that time any other coinage. It is expected that the Silver coinage for New Brunswick will immediately follow, and that the coin still required by the Provinces will be ready for delivery on March next.

I have, &c. (Signed) THOMAS GRAHAM.

George A. Hamilton, Esquire, &c. &c. &c.

Correspondence relative to the promotion of Commercial Intercourse between
the Provinces of British North America.

Government House, Fredericton, N.B. December 3, 1859.

MY LORD DUKE,—I have this day received from the Governor General of Canada a Despatch, a Copy of which (and its enclosure,) I have the honor to transmit to Your Grace.

2. So far as regards the proposed assimilation of the Tariff of this Province to those of Canada and the other British North American Provinces, (in conformity, of course, with the general principles which my instructions require me to observe in dealing with this subject,) there is no necessity for requesting any new instructions from Your Grace.

3. But it is clear that the adoption of a system of Free Trade with all or any of the other British North American Colonies, or of any new fiscal regulations which would confer upon the Trade of all or any of the other British North American Provinces (whether Export or Import,) with this Province, advantages not conferred upon the trade in similar articles of other Colonies or Countries, would be to effect an imposition of discriminating Duties against the Trade of those other Countries or Colonies.

4. The terms, therefore, of Lord J. Russell’s Circular Despatch of July 12, 1855, to which my attention was recently recalled by Your Grace, absolutely preclude me from taking any step whatever to carry into effect, either by Proclamation (under the provisions of the 7th Section of the Act 22 Vic. (1) or otherwise, the suggestion, so far as the adoption of Free Trade between the different North American Provinces is concerned, of the Canadian Government.

5. It is true, that in Your Grace’s Despatch of the 17th September, 1859, No. 12, a passage occurs which might lead to the inference that Her Majesty’s Government might, perhaps, be disposed to acquiesce in arrangements not consistent with the principles which regulate the general trade of the Empire, provided that the deviation from these principles were confined to the commercial relations between the several British North, American Colonies. But I cannot regard the inference which may be probably drawn from this passage of Your Grace’s Despatch, (which passage, moreover, refers only to cases in which

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a strict adherence to sound principles cannot be reconciled with the raising the necessary local Revenue.) as relieving me from the duty of observing the positive intructions of the Secretary of State, as conveyed to me in Lord J. Russell Circular Despatch of the 12th July 1855.

6. I have felt, therefore, that it was incumbent on me in the first instance and without delay, to submit to Your Grace the proposal of the Canadian Government and to request Your Grace’s instructions as to the course which I am to pursue respecting it.

7. Meanwhile I have simply acknowledged the receipt of the Governor General’s Despatch, the contents of which I shall communicate to my Council, informing them, however, at the same time, that I have transmitted copies of the documents to our Grace.

I have, &c. (Signed) J.H.T. MANNERS-SUTTON.

To His Grace the Duke Newcastle, K.G., &c. &c. &c.

Spence Wood, Quebec, 24th November, 1859.

SIR,—On the recommendation of my Executive Council, I have the honor to enclose for Your Excellency’s consideration a copy of a Report of a Committee of Council approved by myself.

I have, &c. (Signed) EDMUND HEAD.

His Excellency The Honorable J.H.T. Manners-Sutton, &c. &c. &c.

Copy of a Report of a Committee of the Executive Council, dated. 22nd November, 1859,
approved by His Excellency the Governor General.

On a Communication, dated 21st instant, of the Honorable the Minister of Finance, stating that it was desirable to extend the arrangements whereby certain productions of the several British North American Provinces are reciprocally admitted free, so as to include all articles either produced or manufactured within the said Provinces.

2. That it would also be important to ascertain how far it might be practicable to assimilate the Tariffs of the several Provinces, so as to permit entire Free Trade between them, and he recommends that Your Excellency be requested to communicate with the Lieutenant Governors of New Brunswick Nova Scotia, Newfoundland, and Prince Edward’s Island, for the purpose of ascertaining whether the Governments of those Provinces are prepared to unite with Canada in recommending Legislation for the purpose of establishing the reciprocal free interchange of all productions and manufactures of the respective Provinces, and further to enquire how far it might be practicable to assimilate the Tariffs of the several Provinces so as to permit entire Free Trade between them.

3. The Committee concur in the recommendation of the Minister of Finance, and submit the same for Your Excellency’s approval.

Certified. WM. H. LEE, C.E.C.

Downing Street, 8th April, 1860.

SIR,—I have to acknowledge the receipt of your Despatch of the 3rd of December last forwarding the Copy of a Despatch from the Governor General of Canada, with a Minute of a Committee of his Executive Council, recommending, firstly, the extension of existing arrangements by which certain productions of the British North American Provinces are reciprocally admitted duty free, so as to include all articles the produce or manufacture of such Provinces.

Secondly—The assimilation of their respective Tariffs so as to permit complete freedom of trade between them.

I have referred the subject of these proposals from the Executive Council of Canada for the consideration of the Lords of the Committee of Privy Council for Trade, and I transmit to you herewith a Copy of their Lordships’ Report upon them.

I have, &c. (Signed) NEWCASTLE.

His Excellency The Honorable J.H.T. Manners-Sutton, &c. &c. &c.

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Mr. Booth to the Under Secretary, Colonial Office.

Office of Committee of Privy Council for Trade,

Whitehall, 14th March, 1860.

SIR,—The Lords of the Committee of Privy Council for Trade, have had under their consideration your Letter of the 23rd December last, transmitting for their opinion, by direction of the Duke of Newcastle, a Copy of a Despatch from the Governor of Canada, enclosing a Report by Committee of the Executive Council of the Province, recommending, firstly—

The extension of existing arrangements by which certain productions of the British North American Provinces are reciprocally admitted duty free, so as to include all articles, the produce or manufacture of such Provinces.

Secondly—The assimilation of their respective Tariffs so as to permit complete freedom of trade between them.

I am now to request that you will submit to His Grace the following observations on the subject of these propositions.

My Lords have on several occasions expressed their objections to the policy of the arrangements which the first of these recommendations proposes to extend. They more especially desire to refer the Duke of Newcastle to their Letter to the Colonial Office, of the 26th June, 1855, which was communicated by Sir William Molesworth in a Circular Despatch of the 11th August of that year, to the Governors of the several West Indian Colonies.

To the opinions expressed in that letter, and in the Circular Despatch of Sir William Molesworth, My Lords still adhere.

The distinct and formal nature, however, of the proposal now under consideration, and the strong disposition which has been repeatedly evinced by several of the North American Provinces, and West India Islands, to enter upon a course of Legislation to which Her Majesty’s Government on that occasion thought it necessary to object, has led My Lords to consider whether it my be possible in any degree to meet the views of the Executive
Council of Canada, without seriously compromising the rules of Commercial policy, which, in their opinion, it is of the highest importance to maintain.

The fundamental principle of the policy of free trade is that no duty of Customs shall be imposed, except for the purpose of Revenue. To give effect to this principle it is necessary either to levy duties on those articles alone which, are not produced in the importing country, or to place our Excise or Internal duty equal in its amount to the Import duty, upon those articles which are produced both at home and abroad.

In accordance with these rules it will be found that nearly the whole Customs Revenue of the United Kingdom is derived from articles to which one or other of them is applicable.

In the year 1858, the net Revenue received from the Duties of Customs upon each of the following articles, was—

The total net Revenue derived from Customs in that year having been only about £23,830,000.

The changes in the Tariff of the United Kingdom at present under the consideration of Parliament, will, when completed, effect a large further reduction in the revenue derived from articles other than those enumerated above.

If similar conditions of production and financial requirement existed in all the portions of the British Empire, there would be nothing in the strictest principles of Economical law to prevent them from forming one vast commercial union with a common Tariff and complete freedom of trade between them.

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So far, however, from such similarity existing, the British Crown embraces in its rule countries exhibiting almost every conceivable variety of soil, climate, population, and wealth, rendering the conditions both of production and consumption so diverse, as to preclude the possibility of any common commercial system.

Any general assimilation of Tariff, therefore, or freedom of trade between all the different portions of the British Empire, is altogether impracticable so long as it is found necessary or expedient to make external trade a medium of taxation.

It remains to consider how far it is possible to admit this policy in the case of the particular portions of the possessions of Her Majesty, such as the group of the North American Provinces, the Australian Colonies, or the West Indian Islands.

It is easily conceivable that there may exist in two or more distinct possessions of the Crown, such an identity of character, both as regards their industrial and their financial conditions, as to render their commercial union compatible with the maintenance of the rules of Imperial policy which have been indicated above; and wherever such identity is found there appears to My Lords to be no reason so far as commercial principle is concerned, to deter Her Majesty’s Government from giving their assent to any such union, if it be desired by the several communities concerned.

The advantages of such an arrangement between Colonies so contiguous as the North American Provinces, divided as some of them are only by a land or river frontier, are sufficiently apparent.

The maintenance of different Tariffs and of Inland Custom Houses, is obviously both expensive and inconvenient, and must very seriously interfere with the natural operations of trade.

In the case of the Australian group of British Colonies, the expediency of their adopting a common Tariff has on former occasions been considered by Her Majesty’s Government, and although this measure has never been carried into effect, it is probable that if practicable, it might be attended with similar advantages.

The group of West Indian possessions do not possess altogether similar conditions nor do the motives of their commercial union appear so decided.

At the present time, however, it is only necessary to consider the case of the North American Provinces, but in sanctioning any measure of the nature of that under discussion, it must be recollected that a precedent will be established which will make it more difficult to resist future extensions of the principle which it would involve.

It cannot be denied that the commercial conditions of the five Provinces in question, present a great similarity in general characteristics.

In all of them, the principal industries are in connection with the field, the forest, or the sea.

Their Exports are with some varieties, principally Flour, Grain, Butter and Cheese, Potatoes, Timber and Lumber, Coal, Cattle, Fish, Furs and Skins. Their Imports chiefly manufactured Goods and Colonial produce, Sugar, Tea, Coffee, Tobacco, Spirits and Wine.

Their financial wants and resources must, of course, vary with circumstances, but there seems to be no essential obstacle of an insuperable kind to their commercial union.

In the abstract, therefore, it seems probable that such a measure as that under consideration might be adopted with regard to these Provinces, without in any way infringing the principles of taxation which Her Majesty’s Government desire to observe.

For such a purpose it would only be necessary for them to raise the whole of their Customs Revenues from articles which none of them produce,—such as Tea, Coffee, Tobacco, Sugar, Wine,—or from articles of their own produce upon which they could place corresponding Internal duties, such as Spirits.

In all of then, however, an important part of their Customs Duties are levied upon articles which they themselves produce, and upon which it would be very inexpedient to place such internal duties as should countervale the duties upon importations.

So long as this is the case, and by the experience afforded by the recent Canadian Tariff, there seems no immediate prospect of a change in this respect. My Lords are unable to perceive how an exclusive exemption from Import Duties applicable to their respective produce, can be sanctioned without giving a serious extension to the protective system in Her Majesty’s Colonial possessions to the partial adoption of which My Lords have on several occasions expressed their strong objection.

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They are, therefore, of opinion, that the assent of Her Majesty’s Government to the first proposition of the Executive Council of Canada, should not be given except under the following condition, viz:—

That any exemption from Import duty applied to the produce and manufactures of these Provinces respectively, shall be equally extended to all similar produce and manufactures of all countries.

This condition appears to My Lords to supply a selfacting rule, under the operation of which two or more British Possessions may at any time avail themselves of the advantages which must result from complete freedom of trade between then, whenever, and whenever only, they can do so consistently with their own well understood interests and with those of the Empire at large.

More than this, My Lords do not think such Colonies could themselves desire, except from a wish to afford protection to each other’s productions, an object which Her Majesty’s Government cannot be expected to promote.

The second proposition of the Committee of Executive Council, viz. the assimilation of the Tariff of all the North American Provinces, is probably considered by that Body as in a great measure dependent on the adoption of their first recommendation.

So far as this is the case, My Lords can, of course, only approve of it subject to the qualifications which they desire to enforce, with respect to that recommendation.

It is not, however, necessarily dependent upon the former arrangement, and regarding it as distinct proposal, My Lords can only say that on abstract grounds there can be no possible objection either or principle or policy to its adoption by the common consent of all the Legislatures concerned.

In practice, however, the effect of such an assimilation upon the commercial interests of the Empire in general, and the Colonies in question in particular, must depend entirely upon the mode in which it is carried into effect, and, it cannot be denied that the recent policy of Canada, as exhibited in the Tariff of 1859, presents a serious obstacle to the proximate realization of such a project.

The Tariffs of all the other North American Provinces are more favourable to the principal exports of the United Kingdom than that of Canada, which, if not protective in its intention, is certainly so in its effect.

Their common adoption, therefore, of the Canadian duties, or, of any nearer approximation to them than exists already, would in the opinion of this Board, be open to decided objection, unless it could be shewn that the financial condition of each of the Provinces in question afforded a justification for such a measure similar to that which was admitted in the case of Canada.

I have, &c. (Signed) JAMES BOOTH.

The Under Secretary of State, Colonial Office.

Government House, Fredericton, N.B., Sept. 27th, 1861.

MY LORD DUKE,—I have the honor to forward, and to request Your Grace’s favourable consideration of the enclosed copy of a Memorandum, wherein my Council have explained the grounds on which they have arrived at the conclusion that such an alteration of the Customs arrangements of Nova Scotia, Prince Edward Island, and this Province, as would sanction the admission, duty free, into each of these Provinces of articles, (with the exception of Spirituous Liquors,) the growth, produce, or manufacture of each of the other two Provinces, would conduce to the social and commercial interests of all.

This subject is not new to Your Grace. It is true that in one point of view, the manner recommended by my Council is not strictly in accordance with the general principles which regulate the Commerce of the Empire. But the contiguity of the three Provinces of Nova Scotia. Prince Edward Island, and New Brunswick, the social and commercial sympathy which exists among their inhabitants, and the fact that they are fellow-subjects of Her Majesty, renders, as it appears to me, the question now submitted to Your Grace, one of an exceptional character.

I have only further to state, that in my opinion Your Grace will be justified in regarding this proposal, for the establishment of more intimate commercial relations with Nova Scotia and Prince Edward Island as evidence that there is a strong and growing opinion here in favour of the Legislative union of the three Lower Provinces of British North America.

I have the honor to be, &c. (Signed) J.H.T. MANNERS-SUTTON.

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To His Excellency the Honorable J.H.T. Manners-Sutton, Lieutenant Governor of the
Province of New Brunswick.

Your Excellency is aware that, on former occasions, the expediency of still further promoting the commercial inter-communication and the interchange of article of trade between the several Provinces of British North America, and especially between the three Lower Provinces, by the admission, duty free, into each of these Provinces, of articles the growth, produce, and manufacture of the Province from which they might he exported, has formed a subject of consideration by the Government of New Brunswick and provision has been made by the Provincial Legislature for carrying into full effect this relaxation of our Fiscal Laws by Proclamation, and without further Legislation. But we were informed by Your Excellency, when you communicated to us the Despatch of the Secretary of State of the 17th September 1859, No. 12, that the instructions contained in that and other Despatches, precluded you from exercising the power thus vested in you without previous communication with the Secretary of State.

In the Despatch, however, specially referred to above. a distinction was drawn between the admission, duty free, into this or any other of the British North American Provinces, of articles the growth, produce, and manufacture of the West Indies, or of, the United States, and the admission, duty free, of articles the growth, produce, and manufacture of any of the British North American Provinces, into another British North American Province ; and in the last Session of the Provincial Legislature an Act was passed giving effect to this distinction, and revoking that part of the then existing Statute which enabled Your Excellency by Proclamation to admit, duty free, into New Brunswick, articles the growth, produce, and manufacture of the West Indies or United States; but the power of issuing a Proclamation for the admission, duty free, into this Province, of articles the growth, produce, and manufacture of the other British North American Provinces still remain vested in Your Excellency.

The close contiguity of the three Lower Provinces, viz. of Nova Scotia Prince Edward Island, and this Province, their identity of feeling and interests, the fact that their laws and political constitution are, if not identical, similar to each other, and that their social and commercial intercourse is rapidly extending to the benefit of all, render it, in our opinion, highly expedient that the remaining obstacles still presented by the Fiscal Laws of the three Provinces, to the full development of this commercial and social sympathy between them, should be removed.

It is possible that in effecting this alteration, each of the three Provinces might be called upon to relinquish some Revenue; but we are confident that, even if this should occur, it would be but temporary, and that it would be more than counterbalanced by the general, commercial and social advantages of the measure; and we have reason to believe that the Governments of Nova Scotia and Prince Edward Island view the matter in the same light.

To the admission, however, duty free, into our Province, of exciseable articles, the manufacture of another Province, special objections, the character of which is obvious, and which are we believe recognized by the other Provinces, present themselves; but we are prepared to recommend and be responsible for such steps as may be necessary to relieve from duty on import into this Province, all articles, with the sole exception of spirituous liquors, the growth, produce, or manufacture of Nova Scotia and Prince Edward’s Island, or either of them, upon receiving from them, or either of them, a similar abrogation of the import thither of articles the growth, produce, and manufacture of New Brunswick.

We request Your Excellency to bring these opinions before the Secretary of State, with the view of taking such steps, with the concurrence of Her Majesty’s Government, as may be necessary to carry them into effect.

(Signed) S. L. TILLEY,
W.H. STEEVES,
A.J. SMITH,
CHARLES WATTERS,
P. MITCHELL,
JAMES STEADMAN,
GEORGE L. HATHEWAY,
JOHN McMILLAN

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Downing Street, 5th November, 1861.

SIR,—I have the honor to acknowledge the receipt of your predecessor’s Despatch of the 27th September accompanied by a Report of the Executive Council on the promotion of commercial intercourse between New Brunswick, Nova Scotia, and Prince Edward Island, by the reciprocal admission, duty free, of articles (with the exception of spirituous liquors,) the growth, produce, or manufacture of each of these Provinces.

I have to inform you that Her Majesty’s Government will offer no opposition to any well advised measure which the several Governments may think proper to adopt for promoting a free commercial intercourse between the different Provinces.

I have, &c. (Signed) NEWCASTLE.

Lieut. Governor the Honorable Arthur H. Gordon, &c. &c. &c.

Adjourned until To-morrow at 11 o’clock.