254 



DOMINION OF CANADA. 



lates to the Bay of Fundy, was submitted to 

 arbitration in connection with the seizure of 

 the Washington, and was decided in favor of 

 this country. 



Angry contentions continued from 1824 to 

 1854, when the rival claims of New England 

 and the Colonists were amicably adjusted by the 

 Reciprocity Treaty. In 1866 that agreement 

 was abrogated, and American and Canadian in- 

 terests were again placed in conflict. Canada, 

 at the instance of the Imperial Government, 



adopted a license system, but soon tired of the 

 trouble and expense it entailed. Matters re- 

 mained in that condition until the Treaty of 

 "Washington, in 1871, when an attempt was 

 made to settle the dispute definitely. By that 

 instrument the fisheries of both countries were 

 thrown open reciprocally ; but, inasmuch as it 

 was asserted by England that the privileges she 

 accorded were of greater value than those given 

 in return, the subject was referred to a commis- 

 sion, to be composed of one commissioner from 



QUEBEC, PKOM POINT LEVI. 



the United States and one from Great Britain, 

 and a third to be nominated by the Emperor 

 of Austria. 



After a delay of nearly 6 years the Com- 

 mission was organized, the three arbitrators be- 

 ing Mr. De Forse, Sir A. T. Gait, and ex-Judge 

 Kellogg, of Massachusetts. Judge Foster, as- 

 sisted by E. H. Dana, Jr., and others, had charge 

 of the American case. The interests of Canada 

 were confided mainly to Mr. Doutre, an emi- 

 nent lawyer of Montreal. 



The British case was divided into two parts 

 one concerning Canada, the other Newfound- 

 land. It held, in effect, that the privilege of 

 fishing in American waters is worthless, and 

 claimed an award of $12,000,000 for the use by 

 Americans of the Canadian inshore fisheries 

 for 12 years the period of the treaty and of 

 $2,280,000 for the use of the Newfoundland 

 fisheries. The American case denied substan- 

 tially these claims. The Commission awarded 

 Great Britain the sum of $5,500,000, to be paid 

 within a year. 



The timber-trade of the year has been far 

 from satisfactory. "While the railways are mak- 

 ing better returns, the shipping interest has not 

 found the year quite so advantageous. Some 

 of the manufacturers are in an unsatisfactory 

 state, principally through the competition of 



surplus American stock. In others, notably the 

 boot and shoe trade, there are both activity and 

 progress. The coal-trade of Nova Scotia con- 

 tinues depressed. 



In 1875 there were 1,968 failures, with lia- 

 bilities $28,843,967. In 1876 there were 1,728 

 failures, liabilities $25,517,991. In 1877 the 

 failures numbered 1,890, liabilities $25,510,147. 

 There is an increase over 1876 in the amount of 

 liabilities in each province save Quebec and 

 Nova Scotia, although the increase in New 

 Brunswick is principally chargeable to the dis- 

 astrous fire in St. John. The average of lia- 

 bilities per failure in 1877 was $13,497, against 

 $14,767 in 1876. 



A satisfactory treaty was completed in Sep- 

 tember between the Dominion Government and 

 the Blackfeet Indians, by which the Indians 

 cede a large tract of valuable territory to the 

 Canadian Government. In return for the re- 

 linquishment of the Indian rights to the terri- 

 tory ceded, the Commissioners promised, on be- 

 half of the Canadian Government, to set aside 

 a certain reservation for each band of Indians, 

 giving to each family of five persons one square 

 mile of land ; and, in addition, each chief is to 

 receive a present of $25 in cash, a coat, and a 

 Queen's silver medal. Four head men of each 

 band are to receive each $15 in cash and a coat, 



