cliv INTRODUCTION. 



To foster the establishment of a direct European grain trade, and also to provide more enlarged 

 facilities for the transportation of the rapidly-increasing products of the west, a variety of measures are 

 being agitated by commercial associations all over the country, as well as by the legislatures of New 

 York and Canada. The following are some of the leading propositions : 



First. The construction of a ship canal from Georgian bay to Toronto, via Lake Simcoe, so as to 

 pass vessels of one thousand tons burden from Lake Huron to Lake Ontario. 



Second. The construction of a ship canal from Georgian bay to the Ottawa and French rivers, via 

 Lake Nipissingue, so as to pass vessels of one thousand tons burden from Lake Huron to the St. 

 Lawrence river. 



Third. The enlargement of the Welland canal, so as to pass vessels of the size mentioned above. 



Fourth. The construction of a ship canal around the Falls of Niagara, so as to pass large vessels 

 of deep draught from Lake Erie to Niagara river, and thence to Lake Ontario and the St Lawrence 

 river. 



Fifth. The enlargement of the New York canals. 



Sixth. The construction of a ship canal from Chicago, on Lake Michigan, to Lasalle, on the Illi 

 nois river, and the deepening and improvement of that river, so as to allow steamers and vessels of deep 

 draught to pass from the Mississippi river to Lake Michigan. 



Seventh. The improvement of Fox river, in Wisconsin, so as to connect the Upper Mississippi 

 with Lake Michigan, and allow the passage of vessels carrying large cargoes of grain and other pro 

 duce from Minnesota and northern Wisconsin. 



Eighth. The construction of a ship canal from the head of Lake Michigan to Lake Erie, so as to 

 avoid the long passage around the peninsula of Michigan, via the Straits of Mackinaw. 



Of the four projects connecting Lake Ontario with Lakes Erie and Huron, the three first are 

 Canadian propositions. The accomplishment of either of the two first the Georgian bay and Toronto 

 or the Ottawa ship canal would greatly shorten the distance from Lake Michigan to Montreal, and 

 also avoid the St. Clair flats, which would have to be deepened and improved so as to enable ocean 

 vessels of deep draught to pass. 



It is feared by many in New York, however, that the construction of a ship canal to the St. 

 Lawrence river would damage the canal interests of that State by diverting a large portion of the grain 

 trade of the lakes from the Erie canal; but when it is considered that the production of grain in the 

 northwestern States increased from 218,463,583 bushels in 1840 to 642,120,366 bushels in 1860, and 

 that of the eight food-producing States west of the lakes, embracing an area of 262,549,000 acres, only 

 about 52,000,000 acres were under cultivation in 1860, and that 26,000,000 acres of that have been 

 broken since 1850, no fears need be entertained that any of the outlets to the ocean will be unoccu 

 pied to the extent of their capacity. The only fear is, that we will not keep pace with the increased 

 production by the provision of increased facilities of transportation. 



THE RECIPROCITY TREATY AND THE GBAIN TRADE. 



By the operation of the reciprocity treaty there is a free interchange of the grain products of 

 Canada and the United States, and the free use of the St. Lawrence river for navigation is accorded 

 to the latter. Since this treaty came into effect the grain trade between the two countries has beer. 

 greatly increased. The following table shows the value of the agricultural products imported into the 

 United States from Canada, and into Canada from the United States, from 1850 to 1861, inclusive : 



